Trans World Entertainment Corporation Announces That Robert J. Higgins, Its CEO and Largest Shareholder, has Withdrawn His Preliminary Proposal to Acquire the Company

ALBANY, N.Y., May 6 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (“Trans World Entertainment” or “the Company”) (Nasdaq: TWMC)
announced today that Robert J. Higgins, its CEO and largest shareholder, has
withdrawn his preliminary proposal to acquire the Company, which proposal was
first announced in November 2007, and that there are no other pending
proposals by management and/or any third parties to acquire the Company at
this time. In withdrawing his preliminary proposal, Mr. Higgins indicated to
a special committee of the board of directors that continuing poor credit
market conditions have substantially increased the costs and burdens of the
debt financing that would be required to acquire the Company.

The Company is always considering different strategic options to maximize
shareholder value and otherwise pursue the best interests of its shareholders
and other constituencies and, toward this end, may become engaged in
confidential negotiations, including for a sale of the Company, without prior
notice in the future. The Company, led by a special committee of independent
directors and supported by the committee’s financial advisor, had been
exploring a sale of the Company since May 2007.

Trans World Entertainment is a leading specialty retailer of entertainment
software, including music, home video and video games and related products.
The Company operates 800 retail stores in the United States, the District of
Columbia, the U.S. Virgin Islands, and Puerto Rico, primarily under the names
f.y.e. for your entertainment and Suncoast and on the web at www.fye.com,
www.wherehouse.com, www.secondspin.com, www.samgoody.com and www.suncoast.com.

Certain statements in this release set forth the Company’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.

SOURCE Trans World Entertainment Corporation

CONTACT: Trans World Entertainment
John J. Sullivan, EVP, Chief
Financial Officer
+1-518-452-1242
or
MWW Group
Rich Tauberman
+1-201-964-2408

Web site: http://www.fye.com
http://www.wherehouse.com
http://www.secondspin.com
http://www.samgoody.com
http://www.suncoast.com