Trans World Entertainment to Repurchase an Additional 5 Million Shares

ALBANY, N.Y.–(BUSINESS WIRE)–Jan. 9, 2001–Trans World
Entertainment Corporation (Nasdaq National Market:TWMC) today
announced that its Board of Directors has approved the extension of
its stock repurchase program authorizing the repurchase by the Company
of an additional five million shares of common stock.

The Company plans to repurchase shares in open market, negotiated,
or accelerated share repurchase transactions from time to time subject
to market conditions.

The extension of the program marks the third time in the last
twelve months that the Board of Directors has approved a stock
buyback. The Company has completed the purchase of ten million shares
of common stock under the previously announced programs.

“We continue to believe the stock of Trans World Entertainment is
undervalued and represents an excellent investment opportunity,” said
Robert J. Higgins, Chairman and Chief Executive Officer of Trans World
Entertainment. “Our strong financial position enables us to fund the
Company’s ongoing growth initiatives while deploying surplus cash to
maximize returns for our shareholders.”

Trans World Entertainment is a leading specialty retailer of music
and video products. The Company operates retail stores in 45 states,
the District of Columbia, the U.S. Virgin Islands, Puerto Rico and an
e-commerce site, www.twec.com. Mall locations include Camelot, Record
Town, The Wall, Disc Jockey, Saturday Matinee and F.Y.E. Freestanding
locations include Coconuts Music and Movies, Strawberries Music,
Spec’s and Planet Music.

Certain statements in this report 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.

CONTACT: Trans World Entertainment Corporation
John Sullivan, Chief Financial Officer
518/452-1242 ext. 7400
or
The MWW Group
Investor Relations
Michael Lendener, 212/704-9727