Trans World Entertainment Announces Holiday Sales Results Comparable Store Sales Increase 3% For December

ALBANY, N.Y., Jan. 8 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC) today reported a comparable store sales increase of
3% for the five-week period ended January 5, 2002. For the nine-week period
ended January 5, 2002, comparable store sales were flat with last year. Total
sales for the nine-week period were $424 million compared to $431 million during
the same period last year.

Robert J. Higgins, Chairman and Chief Executive Officer, commented, “Our sales
performance during the holiday season was in line with our expectations. We saw
continued improvement in customer traffic throughout the holiday season and our
new mall brand, FYE, continues to gain recognition.”

For the eleven-month period ended January 5, 2002, comparable store sales were
down 2%. Total sales for the period were $1.30 billion compared to $1.29 billion
during the same period 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 Islands, Puerto Rico and an e-commerce site,
http://www.fye.com. In addition to its mall locations, operated under the FYE
brand, the Company also operates freestanding locations under the names Coconuts
Music and Movies, Strawberries Music, Spec’s 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.

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SOURCE Trans World Entertainment

CONTACT:          John Sullivan Chief Financial Officer of Trans World
Entertainment Corporation, +1-518-452-1242 ext. 7400 Michael Lendener
Investor Relations Counsel of The MWW Group, +1-212-704-9727,

URL: http://www.TWEC.com