Trans World Entertainment Obtains Court Approval for the Asset Acquisition Of Wherehouse Entertainment, Inc.

CD World Acquisition Also Approved by U.S. Bankruptcy Court

ALBANY, N.Y., Sept. 30 /PRNewswire/ — Trans World Entertainment
Corporation (Nasdaq: TWMC), a leading retailer of entertainment products,
today announced that the U.S. Bankruptcy Court for the District of Delaware
has approved the Company’s bid to acquire substantially all of the assets of
Wherehouse Entertainment, Inc. The transaction is scheduled to close on
October 2, 2003 and represents total consideration of $35.6 million in cash
and $5 million in assumed liabilities.

Wherehouse, currently operating in Chapter 11 bankruptcy, owns and
operates 145 specialty music retail stores located primarily in the western
United States. Trans World expects to retain 111 of Wherehouse’s best
performing stores and liquidate the remaining 34 stores through a joint
venture with Hilco Merchant Resources, LLC, Gordon Brothers Retail Partners,
LLC and The Ozer Group LLC.

In addition, the U.S. Bankruptcy Court for the District of New Jersey
approved Trans World’s previously announced agreement to acquire substantially
all of the assets of CD World, Inc. CD World owns and operates 13 freestanding
specialty music stores in New Jersey and Missouri. The transaction is
scheduled to close on October 6, 2003.

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 Corporation
09/30/2003

CONTACT: John Sullivan, Executive Vice President and Chief Financial
Officer of Trans World Entertainment Corporation
518-452-1242, ext. 7400
or
Kimberly Storin
Investor Relations Counsel of THE MWW GROUP
212-704-9727

For Trans World Entertainment Corporation
Web site: http://www.fye.com
(TWMC)