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

Acquisition Expected to be Accretive to Fourth Quarter and Full Year Earnings

ALBANY, N.Y., Sept. 14 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC), a leading retailer of entertainment products,
today announced that it has reached agreement in principal to acquire
substantially all of the assets of Wherehouse Entertainment, Inc. Wherehouse,
currently operating in Chapter 11 bankruptcy, is a specialty music retailer,
which owns and operates 148 stores located primarily in the western United
States. Upon completion of the sale, Trans World expects to retain 113 of the
Wherehouse’s best performing stores. The remaining 35 stores will be
liquidated by a joint venture comprised of Hilco Merchant Resources, LLC,
Gordon Brothers Retail Partners, LLC and The Ozer Group LLC. The transaction
represents total consideration of $41 million in cash and assumed liabilities.
The transaction is subject to the approval of the U.S. Bankruptcy Court for
the District of Delaware and is expected to close in early October 2003.

“These stores represent an excellent fit both strategically and
operationally with our free standing format and provide us with a unique
opportunity to expand our presence on the west coast and gain significant
market share in Los Angeles,” commented Robert J. Higgins, Chairman and Chief
Executive Officer of Trans World Entertainment. “This acquisition further
validates our strategic plan of using our strong balance sheet to find
financially attractive opportunities as our industry continues to
consolidate.”

“The terms and timing of this deal are particularly attractive as we head
into the all-important holiday season. Most importantly, we expect this
acquisition to be immediately accretive, adding to our earnings in the fourth
quarter and for the year,” added Higgins.

Trans World Entertainment is a leading specialty retailer of music and
video products. The Company currently operates 831 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 209 freestanding locations
under the names Coconuts Music and Movies, Strawberries Music, Spec’s, Planet
Music and Second Spin, the Company also operates 622 mall locations, primarily
under the “FYE” (For Your Entertainment) brand.

SOURCE  Trans World Entertainment
    -0-                             09/14/2003
    /CONTACT:  John Sullivan, Executive Vice President and Chief Financial
Officer of Trans World Entertainment Corporation, +1-518-452-1242, ext. 7400;
or Kimberly Storin of the MWW Group, , Investor Relations
Counsel, +1-212-704-9727/
    /Web site:  http://www.fye.com /
    (TWMC)

CO:  Trans World Entertainment; Wherehouse Entertainment, Inc.
ST:  New York
IN:  ENT MUS REA
SU:  TNM

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5942 09/15/2003 09:18 EDT http://www.prnewswire.com