Trans World Entertainment Reports a 2% Comparable Store Sales Increase for the Holiday Season

ALBANY, N.Y., Jan. 5 /PRNewswire-FirstCall/ — Trans World Entertainment
Corporation (Nasdaq: TWMC), a leading retailer of entertainment products,
today reported a comparable store sales increase of 2% for the five-week
period ended January 1, 2005. For the nine-week period ended January 1, 2005,
comparable store sales increased 1%. The Company operated 851 stores this
year compared to 931 stores last year. Total sales for the five-week period
decreased 4% to $312 million compared to $326 million for the same period last
year. Total sales for the nine-week period were $426 million compared to $451
million for the same period last year, a decrease of 6%.

“Our sales results during the holiday season were in line with our
expectations,” commented Robert J. Higgins, Chairman and Chief Executive
Officer of Trans World Entertainment. “Based on our sales performance, we are
maintaining our 2004 earnings per share projections of $1.02 to $1.07 per
share.”

For the eleven-month period ended January 1, 2005, comparable store sales
increased 1%. Total sales for the period increased 3% to $1.277 billion
compared to $1.240 billion during the same period last year.

Trans World will host a teleconference call today, Wednesday, January 5,
2005, at 10:00 AM ET to discuss the holiday sales results. Interested parties
can listen to the simultaneous webcast on the Company’s corporate website,
http://www.twec.com.

Trans World Entertainment is a leading specialty retailer of music and
video products. The Company operates retail stores in 47 states, the District
of Columbia, the U.S. Virgin Islands, Puerto Rico and e-commerce sites,
http://www.fye.com, http://www.wherehouse.com, http://www.coconuts.com and
http://www.secondspin.com. In addition to its mall locations, operated
primarily under the FYE brand, the Company also operates freestanding
locations under the names Coconuts Music and Movies, Strawberries Music,
Wherehouse, CD World, Spec’s, Second Spin and Planet Music.

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
    -0-                             01/05/2005
    /CONTACT:  John J. Sullivan, EVP, Chief Financial Officer of Trans World
Entertainment, +1-518-452-1242 ext. 7400; or Rich Tauberman of MWW Group,
+1-201-507-9500,  for Trans World Entertainment/
    /Web site:  http://www.twec.com /
    (TWMC)

CO:  Trans World Entertainment Corporation
ST:  New York
IN:  REA CPR CSE
SU:  SLS

MP 
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3331 01/05/2005 07:01 EST http://www.prnewswire.com