Trans World Entertainment Acquires 113 Disc Jockey Music Stores; Expected To Be Accretive to Net Income and Add Over $116 Million in Revenues

Business Wire, Sept 12, 2000

Business Editors

ALBANY, N.Y.--(BUSINESS WIRE)--Sept. 12, 2000

Trans World Entertainment Corporation (Nasdaq National Market: TWMC), a leading retailer of entertainment products, announced today that it has reached a definitive agreement to acquire substantially all of the assets of Disc Jockey Music Stores from Wax Works, Inc. of Owensboro, Kentucky. The highly recognized Disc Jockey chain of retail music and video stores currently has 113 locations in 34 states, primarily in the Midwest and Southern United States. In addition, four more locations are planned to open this year.

Under the terms of the agreement, Trans World will acquire primarily all of Disc Jockey's assets, including store inventory, furniture and fixtures, and leasehold improvements. The transaction is expected to close by the end of October.

Robert J. Higgins, Trans World's Chairman and Chief Executive Officer commented, "This is our second acquisition this quarter, demonstrating our continued commitment to Trans World's growth strategy. The 113 Disc Jockey stores, with fiscal 1999 revenues of over $116 million, represent an excellent fit both strategically and operationally with our mall based stores. We expect the transition to go smoothly and to begin realizing synergies from operations almost immediately."

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.