Trans World Entertainment Corporation Reports Receipt of Proposal from Robert J. Higgins

ALBANY, N.Y., Nov. 9 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (“Trans World Entertainment” or “the Company”) (Nasdaq: TWMC)
announced today that it has received a nonbinding proposal from its largest
shareholder and Chairman and Chief Executive Officer, Robert J. Higgins, to
acquire outstanding shares of the Company that Mr. Higgins and his related
persons and entities do not already own. At this time, Mr. Higgins and his
related persons and entities hold approximately 40% of the issued and
outstanding shares of the Company.

Mr. Higgins’s preliminary proposal contemplates an offer to pay the
Company’s shareholders $5.00 per share in cash. The proposal states further
that Mr. Higgins has contacted another shareholder, Bryant Riley, to gauge his
interest in directly or indirectly participating in the transaction. The
proposal is subject to Mr. Higgins’ being able to arrange financing and the
Board of Directors’ consent to Mr. Higgins proceeding with further discussions
with Mr. Riley. Mr. Higgins has also made clear that this proposal and any
successor proposal will be subject to the approval of the Board of Directors
and the negotiation and execution of definitive documentation with the
Company.

This preliminary proposal was made to, and with the permission of, a
Special Committee of non-management members of the Board of Directors formed
in connection with the Company’s ongoing consideration of strategic
alternatives to enhance shareholder value. The Special Committee has not yet
reached a view on the advisability of this proposal.

The Special Committee will review and evaluate Mr. Higgins’s proposal and
his request that the Board of Directors consent to Mr. Riley’s participation
in the proposal. The Special Committee expects that, in consultation with its
advisors, it will be evaluating information relevant to this proposal and may
become engaged in negotiations and discussions with Mr. Higgins. Trans World
Entertainment does not intend to comment further on these matters until the
Special Committee and the Board of Directors have completed all negotiations
and discussions with Mr. Higgins relevant to this and any related or successor
proposals that Mr. Higgins may make. Against this background, shareholders
are urged to take into account that there is no assurance that an agreement
between Mr. Higgins and the Board of Directors will be achieved and there may
be additional disclosure forthcoming in the future that is relevant to these
matters.

The Special Committee has previously retained Goldman, Sachs & Co. as its
financial advisor and Cleary, Gottlieb, Steen & Hamilton LLP as its legal
counsel.

Trans World Entertainment is a leading specialty retailer of entertainment
software, including music, home video and video games and related products.
The Company operates over 950 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:
John J. Sullivan, EVP, Chief Financial Officer of Trans World
Entertainment,
+1-518-452-1242,
Peter Gau of MWW Group,
+1-201-964-2377,
, for Trans World Entertainment
Web site: http://www.twec.com