Trans World Entertainment’s FYE Brand To Deliver Industry Leading Personalization for Online Customers

Launch of FYE Tab on MSN Messenger and Windows Messenger Directs Music Lovers to www.fye.com to Sample and Purchase Music, DVD and Video Selections

ALBANY, N.Y.–(BUSINESS WIRE)–Dec. 3, 2001–
Trans World Entertainment Corporation (Nasdaq: TWMC) and its FYE
brand, the nation’s largest mall-based specialty music retailer, today
announced a Windows Messenger and MSN Messenger Tab that allows music
lovers to sample and purchase music and video selections.

Additionally, the Tab directs new consumers to FYE’s website and
allows users to browse genres, set preferences and receive
personalized alerts through the .NET Alerts service, providing users
with specific, targeted information they elect to receive. The FYE
Messenger Tab was developed by Microsoft Corp. and Trans World and is
the first non-Microsoft tab to be announced. Messenger tabs provide
customers with the ability to easily access additional information and
services through both the Windows and MSN Messenger clients. FYE’s
Messenger Tab offers an unparalleled music-shopping experience for FYE
customers, both in-store and online, providing access to FYE’s entire
catalog of more than 200,000 music titles, 10,000 DVDs and 5,000
console games. This launch is the latest initiative under a broad
business, technology and marketing alliance involving Microsoft and
Trans World Entertainment.

The FYE Tab for Windows Messenger and MSN Messenger will provide
FYE with superior personalization and customer relationship management
capabilities. An integral part of FYE’s next-generation “eWorks”
initiative, the Messenger Tab joins in-store Windows XP-powered
listening and viewing stations and kiosks, as well as FYE’s “Backstage
Pass” loyalty program, which is slated to roll out early next year.

FYE’s “eWorks” initiative will help drive sales in FYE’s 700
retail locations and significantly increase traffic on the newly
launched fye.com site as consumers can experience and preview their
purchases through digital sampling, music video previews, movie
trailers, as well as browse opportunities.

The FYE Tab offers FYE customers the ability to expand their
musical experience and knowledge with instant access to artist
information and releases directly from their PCs. Registered customers
will enjoy an enhanced personalized experience through genre
recommendations, customized messages, alerts on new releases, top
seller information and product offerings based on their personal
preferences and interests. Consumers will also be able to catalog
their music collections, share listings with friends, create wish
lists, listen to music samples, and view movie trailers. The use of
Windows Media for music samples and movie trailers ensures a great
audio and video experience for FYE’s customers. The FYE Tab provides
instant access to customer’s favorite music, updated news along with
the capability to preview and purchase top sellers in the music, video
and game categories through fye.com.

“Windows Messenger and MSN Messenger are helping FYE to write a
new chapter in the in-store and online experience for music lovers,”
said Bob Higgins, chairman and CEO of Trans World Entertainment. “With
the FYE Tab for Windows Messenger and MSN Messenger we will be able to
significantly increase our audience of potential customers and to make
the transition to a sale easier than ever before. Additionally, the
FYE Tab firmly positions FYE as the leader in the customer/music
interface, personalization and loyalty programs, all of which will
further drive sales.”

Trans World’s online destination, www.fye.com, which launched in
October, is also the premier online music and video retailer on MSN
Shopping. To download the Microsoft Messenger Tab, users can go to
http://messenger.microsoft.com.

Trans World Entertainment is a leading specialty retailer of music
and video products. The Company operates 970 retail stores, including
700 mall-based FYE locations in 46 states, the District of Columbia,
the U.S. Virgin Islands, Puerto Rico and an e-commerce site fye.com.
Freestanding locations include Coconuts, Strawberries, Specs and
Planet Music.

Other products of service names mentioned herein are the
trademarks of their respective owners.


Contact:

     Trans World Entertainment
     Mark Hogan
     518/452-1242 x7140
                 or
     The MWW Group
     Carol Beaugard
     201/964-2391