Trans World Entertainment And Juno Sign Exclusive Music Retailer Agreement

Trans World To Market Music, Videos, And Electronic Games To Juno’s Millions of Members

NEW YORK/ALBANY, N.Y.–(BUSINESS WIRE)–Aug. 24, 1999–Trans
World Entertainment Corporation (Nasdaq: TWMC), a leading retailer of
entertainment products, and Juno Online Services, Inc. (Nasdaq: JWEB),
a leading provider of Internet-related services, today announced that
they have signed an agreement for Trans World Entertainment to market
entertainment products to Juno’s millions of members through its
e-commerce site, TWEC.COM. The alliance provides TWEC.COM with
exclusive rights to sell CDs and tapes over the Juno service, and
non-exclusive rights to sell videos, DVDs, electronic games, and
related accessories.

TWEC.COM will advertise its entertainment products to users of
Juno’s Internet services through a coordinated campaign of
interstitial, pop-up, and banner ads. Additional placements will
include sponsor and partner blocks on the home page of Juno’s portal
site (www.juno.com), sponsor blocks in the site’s entertainment
section, and links to TWEC.COM content at various other locations. To
fully capitalize on Juno’s subscriber base–more than 7.2 million
total Juno accounts have been created since 1996–TWEC.COM will
implement a survey of the Juno member base to establish consumer
preferences and target subscribers with specific offers and promotions
that match their listening choices.

Robert J. Higgins, chairman and chief executive officer of Trans
World Entertainment, said, ”We’re very excited about this relationship
and recognize that Juno’s position as a leading ISP will provide us
with broad exposure to our target audience with specific interests in
entertainment. This will offer us a significant new retail channel for
our music, video, games, and DVD product lines.”

”When choosing which entertainment retailer to partner with, one
of our priorities was to maximize the value we could offer our
subscribers,” said Jordan Birnbaum, Juno’s senior vice president of
business development. ”Trans World came out on top because of the
sheer size of their inventory, and because their customer support
system is one of the best in the business. We wanted Juno members who
had a question about the services offered by the partner to know they
could get answers as quickly as Juno answers its own members’
questions.”

In addition, Trans World Entertainment and Juno plan to develop
”members only” programs to enhance the affiliate relationship, such as
promotions at Trans World Entertainment retail stores, coupon
distribution, concert information, and special discounts.

About Trans World Entertainment

Trans World Entertainment is the leading music retailer in the
United States, operating 969 retail stores in 44 states, the District
of Columbia and Puerto Rico as well as an e-commerce site,
www.twec.com. Mall locations include Record Town, Camelot Music, The
Wall, Saturday Matinee and F.Y.E. Freestanding locations include
Coconuts Music and Movies, Strawberries Music, Spec’s and Planet
Music.

About The Web’s Entertainment Center (TWEC.COM)

TWEC.COM is the online hub for Trans World Entertainment’s retail
stores. With worldwide distribution spanning 16 countries in addition
to the United States, the site features all of the music CDs and
cassettes, video games, DVD and VHS (PAL and NTSC) home videos that
are available at its retail stores, and more. TWEC.COM is home to
Trans World’s ”On Stage” series, featuring live concerts, online
chats, in-store artist appearance schedules, in-studio performances
and entertainment media that is on-demand.

About Juno Online Services, Inc.

Juno Online Services, Inc. is a provider of Internet-related
services to millions of computer users throughout the United States.
The company offers several levels of service, ranging from basic
dial-up Internet e-mail–which is provided to the end user for
free–to full, competitively priced access to the World Wide Web.
Since the launch of Juno’s basic e-mail service in April 1996, more
than 7.2 million total Juno accounts have been created. Juno’s
revenues are derived primarily from the subscription fees charged for
certain billable services, from the sale of advertising, and from the
direct sale of products to Juno subscribers.

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 TWEC.COM can be found in filings of TWEC.COM with the
Securities and Exchange Commission.

This press release may be deemed to contain forward-looking
information. Any forward-looking statements are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements, including without limitation any
statements as to future events or future financial results of Juno,
may be significantly and materially impacted by risks and
uncertainties. In evaluating such statements, readers should
specifically consider various factors that could cause actual events
or results to differ materially from those indicated, including
without limitation factors described in Juno’s reports and documents
filed from time to time with the Securities and Exchange Commission.


Contact:

     Trans World Entertainment Corporation
     Jim Litwak, Executive Vice President of Merchandising
     518/452-1248 ext. 7240
        or
     The MWW Group
     Media Relations:
     Charlotte Ostor, 201/507-9500
     
     Investor Relations:
     Robert Ferris
     
        or
     Juno Online Services
     Becky Yeamans, 212/597 9005
     
         or
     Edelman PR Worldwide
     Kate Kennedy, 212/704 4520