Trans World Entertainment Acquires Majority Interest in Mix & Burn

Investment Expands Digital Content Capabilities in Stores

ALBANY, N.Y., March 30 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC), a leading entertainment specialty retailer and
parent of f.y.e. (for your entertainment), announced today that it has
acquired a controlling interest in Mix & Burn, LLC the leading provider of
digital content services to retailers nationwide. Using Mix & Burn’s
technology, consumers can mix and burn music CDs and download digital songs on
demand, allowing the creation of customized playlists from an extensive
catalog of new and old content. Mix & Burn will soon expand its offerings to
include downloads onto a music player, cell phone and portable video player.

“The Mix & Burn acquisition will enable our retail locations to offer
customers a best-in-class in-store entertainment experience that will lead to
the sale of new content, new products and new services, including music
players, cell phones and cell phone service plans,” said Jim Litwak, President
and COO of Trans World Entertainment. “In the near future Mix & Burn will
become a feature of the ‘Download Zone’ section of our stores as we continue
to transform the store to be a source of digital as well as physical
entertainment content.”

“Mix & Burn is the leading provider delivering digital content via
customer entertainment kiosks at retail locations and is helping to change the
traditional music and video business,” said Bob French, President of Mix &
Burn. “The acquisition by Trans World will also allow us to further build our
business and optimize our innovative technology.”

Trans World Entertainment is a leading specialty retailer of music, video
and video game products. The Company operates over 1,100 retail stores in the
United States, the District of Columbia, the U.S. Virgin Islands, Puerto Rico
and e-commerce sites, http://www.fye.com, http://www.coconuts.com,
http://www.wherehouse.com, http://www.secondspin.com, http://www.samgoody.com
and http://www.suncoast.com. In addition to its mall locations, operated
under the f.y.e., Sam Goody and Suncoast brands, the Company also operates
freestanding locations under the names Coconuts Music and Movies, Strawberries
Music, Wherehouse, Sam Goody, On Cue, CD World, Spec’s, Second Spin and Planet
Music.

Certain statements in this release 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.

SOURCE Trans World Entertainment Corporation

CONTACT: John J. Sullivan, EVP,
Chief Financial Officer of Trans World
Entertainment, +1-518-452-1242; or
Rich Tauberman of MWW Group,

+1-201-507-9500,
,
for Trans World Entertainment
Corporation