Trans World Entertainment to Repurchase Up to 5 Million Shares

ALBANY, N.Y.–(BUSINESS WIRE)–Oct. 24, 2000–Trans World
Entertainment Corporation (Nasdaq National Market: TWMC) today
announced that its Board of Directors has approved a stock repurchase
program authorizing the repurchase by the Company of five million
shares of common stock.

Pursuant to this program, the Company has repurchased one million
shares of common stock from a financial institution through an
accelerated share repurchase program.

The accelerated repurchase of one million shares immediately
reduces the number of shares outstanding and benefits shareholders
through improved earnings per share and return on equity. The Company
plans to repurchase additional shares in open market, negotiated, or
accelerated share repurchase transactions from time to time subject to
market conditions.

Trans World had over $106 million in cash and equivalents, and

  • 48.5 million shares outstanding as of July 29, 2000. In the first
    quarter of 2000, the Company completed a similar program to purchase
    five million shares of common stock.

“We 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, 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, 518/452-1242 ext. 7400
Chief Financial Officer
or
The MWW Group
Investor Relations
Michael Lendener, 212/704-9727