Trans World Entertainment Announces the Asset Acquisition of CD World, Inc.

ALBANY, N.Y., Sep 18, 2003 /PRNewswire-FirstCall via COMTEX/ — Trans World Entertainment
Corporation (Nasdaq: TWMC), a leading retailer of entertainment products,
today announced that it has reached an agreement in principal to acquire
substantially all of the assets of CD World, Inc. CD World, currently
operating in Chapter 11 bankruptcy, is a specialty music retailer, which owns
and operates 13 freestanding stores located in New Jersey and Missouri. The
transaction, which is expected to close in early October 2003, represents
total consideration of $1.8 million and is subject to the approval of the U.S.
Bankruptcy Court for the District of New Jersey.

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,
www.fye.com. In addition to its mall locations, operated under the “FYE” (For
Your Entertainment) brand, the Company also operates freestanding locations
under the names Coconuts Music and Movies, Strawberries Music, Spec’s, Planet
Music and Second Spin.

SOURCE Trans World Entertainment Corporation

John Sullivan, Executive Vice President and Chief Financial
Officer of Trans World Entertainment Corporation, +1-518-452-1242, ext. 7400;
or Kimberly Storin, Investor Relations Counsel of The MWW Group,
+1-212-704-9727, , for Trans World Entertainment Corporation
http://www.fye.com