Higgins withdraws bid for Trans World Entertainment

ALBANY, N.Y. Trans World Entertainment announced today that Robert Higgins, its ceo and largest shareholder, has withdrawn his preliminary proposal to acquire the company, which proposal was first announced in November 2007, and that there are no other pending proposals by management and/or any third parties to acquire the company at this time.

In withdrawing his preliminary proposal, Higgins indicated to a special committee of the board of directors that continuing poor credit market conditions have substantially increased the costs and burdens of the debt financing that would be required to acquire the company.