ALBANY, N.Y.–(BUSINESS WIRE)–Aug. 11, 2000–Trans World Entertainment Corporation (Nasdaq National Market: TWMC) today announced that its Board of Directors has adopted a shareholder rights plan, designed to protect Company shareholders from coercive or unfair takeover attempts. Terms of the plan provide for a dividend of one right to purchase a fraction of a share of a newly created class of preferred stock. This dividend was declared for each share of common stock outstanding at the close of business as of September 29, 2000. The rights, which expire on July 31, 2010, may be exercised only if certain conditions are met, such as the acquisition of, or announcement of a tender offer for, 20 percent or more of the Company’s common stock by a person or affiliated group. Issuance of the rights does not in any way affect the finances of the Company, interfere with the Company’s operations or business plans or affect earnings per share. The dividend is not taxable to the Company or its shareholders and does not change the way in which the Company’s shares are traded.
Robert J. Higgins, Trans World’s Chairman and Chief Executive Officer, said, “The Board of Directors believes that the Rights Plan serves the best interest of our shareholders. The Plan was adopted to safeguard the interests of the Company’s shareholders and is not in response to any known takeover proposal.”
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 John Sullivan, 518/452-1242 ext. 7400 Chief Financial Officer or THE MWW GROUP Michael Lendener, 212/704-9727 Investor Relations