Trans World Entertainment Reports a 14% Decline in Comparable Store Sales for the 2008 Holiday Season

ALBANY, N.Y., Jan. 7 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC) today reported a comparable store sales decrease of
14% for the nine-week period ended January 3, 2009. For the five-week period
ended January 3, 2009, comparable store sales decreased 12%. Total sales for
the nine-week period were $287 million compared to $378 million for the same
period last year, a decrease of 24%. Total sales for the five-week period
decreased 22% to $206 million compared to $264 million for the same period
last year. During the nine-week period, the Company operated an average of 18%
fewer stores than 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. “With this season’s holiday sales being lower than our
expectations, we now anticipate EBITDA for the fourth quarter of $15 to $20
million with an annual EBITDA loss for fiscal 2008 in the range of $20 to $25
million, compared to our previously issued annual guidance of $10 to $15
million.”

For the eleven-month period ended January 3, 2009, comparable store sales
decreased 11%. Total sales for the period decreased 22% to $928 million
compared to $1.192 billion during the same period last year. During the eleven
month period, the Company operated an average of 18% fewer stores than last
year.

Trans World will host a teleconference call today, Wednesday, January 7,
2009, 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 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 of Trans World Entertainment
EVP, Chief
Financial Officer
+1-518-452-1242
or Marilynn Meek of Financial Relations
Board for Trans World Entertainment
+1-212-827-3773

Web Site: http://www.twec.com