Trans World Entertainment Reports a 4% Comparable Store Sales Increase for the Holiday Season

                  Holiday Sales Increase 10% to $325 million

ALBANY, N.Y., Jan. 7 /PRNewswire-FirstCall/- Trans World Entertainment
Corporation (Nasdaq: TWMC), a leading retailer of entertainment products,
today reported a comparable store sales increase of 4% for the five-week
period ended January 3, 2004. Total sales for the five-week period increased
10% to $325 million compared to $295 million for the same period last year.
For the nine-week period ended January 3, 2004, comparable store sales also
increased 4%. Total sales for the nine-week period were $451 million compared
to $406 million for the same period last year, an increase of 11%. The Company
operated 934 stores this year compared to 889 stores last year.

“Our solid sales performance during the holiday season was in line with
our expectations and showed steady improvement,” commented Robert J. Higgins,
Chairman and Chief Executive Officer of Trans World Entertainment. “Improving
trends in the music category, the continued growth of DVD, improved customer
service, and focus on branding the Company as a ‘total entertainment
destination,’ combined with our recent strategic acquisitions have Trans World
positioned for a second consecutive quarter of increased comparable store
sales.”

For the eleven-month period ended January 3, 2004, comparable store sales
increased 1%. Total sales for the period increased 3% to $1.240 billion
compared to $1.204 billion during the same period last year.

Mr. Higgins continued, “This year’s holiday sales came in at the high-end
of our expected range. Therefore, we are raising our earnings estimate for the
fourth quarter of 2003 to $0.75 to $0.80 per share from our previous guidance
of $0.73 to $0.76 per share.”

Trans World will host a teleconference call today, Wednesday, January 7,
2004, 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,
www.twec.com.

Trans World Entertainment is a leading specialty retailer of music and
video products. The Company operates over 900 retail stores in 47 states, the
District of Columbia, the U.S. Virgin Islands, Puerto Rico and e-commerce
sites, www.fye.com and www.wherehouse.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 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
01/07/2004
CONTACT: John Sullivan, Executive Vice President and Chief Financial
Officer of Trans World Entertainment Corporation, +1-518-452-1242, ext. 7400;
or Kimberly Storin, Investor Relations Counsel, The MWW Group,
+1-212-704-9727, , for Trans World Entertainment Corporation
Web site: http://www.twec.com
http://www.fye.com
http://www.wherehouse.com