Trans World Entertainment Acquires 113 Disc Jockey Music Stores; Expected To Be Accretive to Net Income and Add Over $116 Million in Revenues

ALBANY, N.Y.–(BUSINESS WIRE)–Sept. 12, 2000–Trans World
Entertainment Corporation (Nasdaq National Market: TWMC), a leading
retailer of entertainment products, announced today that it has
reached a definitive agreement to acquire substantially all of the
assets of Disc Jockey Music Stores from Wax Works, Inc. of Owensboro,
Kentucky. The highly recognized Disc Jockey chain of retail music and
video stores currently has 113 locations in 34 states, primarily in
the Midwest and Southern United States. In addition, four more
locations are planned to open this year.

Under the terms of the agreement, Trans World will acquire
primarily all of Disc Jockey’s assets, including store inventory,
furniture and fixtures, and leasehold improvements. The transaction is
expected to close by the end of October.

Robert J. Higgins, Trans World’s Chairman and Chief Executive
Officer commented, “This is our second acquisition this quarter,
demonstrating our continued commitment to Trans World’s growth
strategy. The 113 Disc Jockey stores, with fiscal 1999 revenues of
over $116 million, represent an excellent fit both strategically and
operationally with our mall based stores. We expect the transition to
go smoothly and to begin realizing synergies from operations almost
immediately.”

Trans World Entertainment is a leading specialty retailer of
music and video products. The Company operates retail stores in 45
states, the District of Columbia, the U.S. Virgin Islands, Puerto Rico
and an e-commerce site, www.twec.com. Mall locations include Camelot,
Record Town, The Wall, Saturday Matinee and F.Y.E. Freestanding
locations include Coconuts Music and Movies, Strawberries Music,
Spec’s and Planet Music.

Certain statements in this report set forth management’s
intentions, plans, beliefs, expectations or predictions of the future
based on current facts and analyses. Actual results may differ
materially from those indicated in such statements. Additional
information on factors that may affect the business and financial
results of the Company can be found in filings of the Company with the
Securities and Exchange Commission.

CONTACT: Trans World Entertainment Corporation, Albany
John Sullivan, 518/452-1242 ext. 7400
Chief Financial Officer

or

The MWW Group, New York
Michael Lendener
212/827-3757

Investor Relations