Trans World Entertainment Announces Holiday Sales Results

ALBANY, N.Y.–(BUSINESS WIRE)–Jan. 3, 2001–Trans World
Entertainment Corporation (Nasdaq National Market: TWMC) today
reported a comparable store sales decrease of 5% for the five-week
period ended December 30, 2000. For the nine-week period ended
December 30, 2000, comparable store sales decreased 4%. Total sales
for the nine-week period were $431 million compared to $428 million
during the same period last year.

Robert J. Higgins, Chairman and Chief Executive Officer,
commented, “Sales during the holiday season were impacted by new
releases performing less than expected, adverse weather conditions in
many of our markets and a general sluggish economy that reduced
customer traffic.”

For the eleven-month period ended December 30, 2000, comparable
store sales were flat. Total sales for the period were $1.29 billion
compared to $1.27 billion during the same period last year.

The Company also announced revised revenue and earnings estimates
for its fiscal 2000 fourth quarter. The Company now expects fourth
quarter sales to be approximately $550 million, about 6% lower than
previously projected. Diluted earnings per share are expected to be in
the range of $0.85 to $0.90, compared to $1.12 per share last year.

Trans World Entertainment is a leading specialty retailer of music
and video products. The Company operates retail stores in 46 states,
the District of Columbia, the U.S. Virgin Island, Puerto Rico and an
e-commerce site, www.twec.com. Mall locations include Camelot, Record
Town, The Wall, Disc Jockey, 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
Investor Relations
Michael Lendener, 212/704-9727