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                    TRANS WORLD ENTERTAINMENT CORPORATION

                            **** NEWS RELEASE ****
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            MWW/Strategic Communications, Inc.
            Public Relations (201) 507-9500
            Media Contact:      Michael Kempner - mkempner@mww.com
                                Rob Swadosh - rswadosh@mww.com
            Investor Contact:   Robert Ferris - rferris@mww.com

    U.S. DISTRICT COURT APPROVES ACQUISITION OF STRAWBERRIES INC.
    BY TRANS WORLD ENTERTAINMENT CORPORATION

    ACQUISITION EXPECTED TO CLOSE BY MID-OCTOBER

    Albany, NY,  October  1,  1997  --  Trans  World Entertainment Corporation
    (Nasdaq National Market:  TWMC)  today  announced  it  has  received  U.S.
    District  Court  approval  to  acquire  substantially all of the assets of
    Strawberries Inc., a  privately-held  retailer  of  pre-recorded music and
    video.  The Company expects to close on the  acquisition  by  mid-October.
    Strawberries  Inc.  currently  operates  102 freestanding and strip center
    locations primarily  located  in  the  New  England  and  Washington, D.C.
    markets.

    Robert  J.  Higgins,  Chairman,  Chief  Executive  Officer  and
    President of Trans World commented, "We are  extremely  pleased  with  the
    Court's  decision  to  approve  our purchase offer to acquire Strawberries
    Inc. The acquisition adds an established  base of non-mall music stores to
    our  existing  core  of   freestanding   and   strip   center   locations.
    Additionally,  Strawberries'  concentration  within the New England states
    enhances our position as the  dominant music and video retailer throughout
    the northeast."  Trans World Entertainment operates 461 retail  stores  in
    malls,  freestanding  and  strip  center  locations  under  several names,
    including Coconuts Music  and  Movies,  Record  Town, Saturday Matinee and
    F.Y.E.

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.

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