Trans World Entertainment/FYE and Interactive Objects Launch New In-Store Multimedia Station

BELLEVUE, Wash.–(BUSINESS WIRE)–Oct. 24, 2001–Interactive
Objects `iObjects’ (OTC), a leading designer of embedded software
and hardware solutions for digital media appliances, and Trans World
Entertainment Corporation (Nasdaq: TWMC), the nation’s largest
mall-based specialty music retailer, today announced the launch of
Trans World’s new Listening and Viewing Station (LVS) system at its
flagship FYE store in Rockefeller Center, New York City.

The LVS system connects multimedia preview stations within any
single store location to a Microsoft XP server that provides access to
all of the songs and videos from the store’s catalog of titles. Using
Windows Media 8 technology to store and stream content, songs and
videos can be accessed and previewed from any device at any time. The
system will roll out to 21 stores in 5 major markets across the U.S.
by the end of November and is part of an overall strategic initiative
to re-brand the Company’s 730 mall-based specialty stores and its web
site under a single, unified brand, FYE (for your entertainment). The
additional stores are scheduled for a phased rollout beginning in
2002.

The LVS device, which was designed by iObjects, is one of the
first to support Microsoft’s Windows Media 8 technology; incorporating
both WMA audio and MPEG level 4 video playback. The device contains a
UPC bar code scanner and content recognition software that matches bar
code data with the content’s metadata stored on a server. Shoppers
simply scan any CD or DVD in the store to access a particular song or
video. The LVS device also features a proximity-based recommendations
engine that helps guide customers to similar content in the area
surrounding the device.

“This system represents a major breakthrough in distributed media
systems design,” said Dennis Tevlin, president and CEO of iObjects.
“We have created a low cost, state of the art system that can
gracefully evolve to incorporate new features and services such as
Microsoft’s .NET-based technologies. The LVS system represents the
vanguard of a new type of multimedia experience in retail,
hospitality, exhibition and in-seat entertainment. Trans World is at
the forefront of this revolution.”

The re-branding initiative is the result of an 18-month in-depth
analysis of the changing entertainment marketplace, the technology
revolution and the emerging wired lifestyle, as well as extensive
customer research. It is designed to drive sales and build brand
equity by increasing the number and consistency of customer
touchpoints and increasing efficiency in advertising and marketing
functions. FYE will create a more relevant shopping experience for
consumers, expanding product selection across the entertainment
spectrum.

“Our objective is to leverage our expertise in music and
entertainment to build long-lasting relationships with our customers,
said Trans World vice president of marketing, Mark Hogan. ”Our
partnership with innovative technology companies such as iObjects
helps move us closer toward achieving our goal of broadening our
customer base while fully realizing the benefits of a multi-market,
multi-channel strategy.“

About Trans World/FYE

Trans World Entertainment is a leading specialty retailer of music
and video products. The company operates retail stores, including 700
mall-based FYE locations in 46 states, the District of Columbia, the
U.S. Virgin Islands, Puerto Rico and an e-commerce site, fye.com.
Freestanding locations include FYE, Coconuts Music and Movies,
Strawberries Music, Specs and Planet Music.

About Interactive Objects, Inc.

Interactive Objects is a leading designer of digital media
appliances for the converging Internet, digital media, entertainment
and consumer electronics markets. iObjects’ flexible platform design
allows it to develop a wide range of multimedia devices quickly and
cost effectively. These include portable digital audio players, home
jukebox systems, digital car stereos, Internet radios, home media
servers, set top boxes, in-seat entertainment systems, commercial
music systems, and media kiosk systems. iObjects provides consulting
and custom product design services, and licenses its Dadio(TM) digital
media operating system and Dharma(TM) digital media reference platform
to leading consumer electronics companies worldwide.

Interactive Objects is headquartered at 12600 SE 38th, Suite 150,
Bellevue, WA 98006, USA. Interactive Objects is listed on the OTC.BB
under the symbol “OBJX” and on the “Third Segment” of the Frankfurt
Stock Exchange under the symbol “IOX” and German securities code WKN:
913011. The Company can be reached on the web at
http://www.iobjects.com/.

Certain information included in this communication contains
statements that are forward-looking, such as statements relating to
the future anticipated direction of the high technology industry,
plans for future expansion, various business development activities,
planned capital expenditures, future funding sources, anticipated
sales growth and potential contracts. These forward statements are
subject to a number of known and unknown risks and uncertainties that
could cause actual operations or results to differ materially from
those anticipated. These risks include, among others, risks associated
with unproven sales of the Company’s products, risks associated with
the software development process and risks related to the transition
to a new management team. Certain of these risks and other risks are
described in the Company’s Registration Statement on Form SB-2 and
Form 10-KSB filed with the Securities and Exchange Commission (SEC).
The registration statement is available from the SEC’s Web site at
http://www.sec.gov/


Contact:

     iObjects                                 
       Gentry Lange, 425/653-5505 (Press)
       
               or
       Tony Dirksen, 425/653-5505 (Investor Relations)
       
     OR
     The MWW Group for Trans World/FYE
       Carol Beaugard, 201/507-9500