Trans World Entertainment Reports a 12% Decline in Comparable Store Sales for the 2007 Holiday Season

ALBANY, N.Y., Jan. 10 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC) today reported a comparable store sales decrease of
12% for the nine-week period ended January 5, 2008. For the five-week period
ended January 5, 2008, comparable store sales decreased 13%. Total sales for
the nine-week period were $378 million compared to $469 million for the same
period last year, a decrease of 19%. Total sales for the five-week period
decreased 24% to $264 million compared to $348 million for the same period
last year. The Company operated 14% fewer stores, on average, during the
nine-week period as compared to last year.

“Sales for the holiday season were well below our expectations,” commented
Robert J. Higgins, Chairman and Chief Executive Officer of Trans World
Entertainment. “As a result, we expect to report a net loss for fiscal 2007 in
a range of $15 to $20 million.”

For the eleven-month period ended January 5, 2008, comparable store sales
decreased 9%. Total sales for the period decreased 12% to $1.192 billion
compared to $1.353 billion during the same period last year.

Trans World will host a teleconference call today, Thursday, January 10,
2008, at 10:00 AM ET to discuss its holiday sales results. Interested parties
can listen to the simultaneous webcast on the Company’s corporate website,
www.twec.com.

Trans World Entertainment is a leading specialty retailer of entertainment
software, including music, video and video games and related products. The
Company operates over 900 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 management’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 Ext. 7400



Peter Gau of MWW Group for Trans

World Entertainment Corporation

+1-201-964-2377