Trans World Entertainment Upgrades to AT&T Broadband Services

Albany, New York, September 28, 2006

AT&T Inc. (NYSE: T) announced today a contract to upgrade the network of specialty music, video and video game retailer, Trans World Entertainment Corporation. AT&T will manage a suite of advanced broadband services designed to increase the company's operating efficiencies and allow for new, interactive experiences in more than 1,100 retail stores managed by Trans World Entertainment in the United States, Puerto Rico and the U.S. Virgin Islands. Specific details of the contract were not disclosed.

AT&T will carry the company's data on its powerful, Multiprotocol Label Switching (MPLS)-based network, connecting all of Trans World Entertainment's locations under a common IP-based architecture that offers flexibility, security and high-bandwidth communications. AT&T's Network-Based IP VPN Remote Access Services (ANIRA), will provide all employees with reliable access to applications on the company's corporate network, no matter where they are located. Additionally, the network will support more reliable and efficient polling of daily sales from all retail locations.

Trans World Entertainment's customers will also benefit from the technology upgrades. The increased bandwidth will allow the company's industry-leading, in-store Listening Viewing Stations to deliver richer content with improved functionality, including advanced search features and interaction with other stores. Customers will also enjoy an improved experience using the company's in-store CD Burn and Music Download stations, which Trans World Entertainment is currently testing in select locations.

"AT&T is helping us deliver highly integrated, interactive and inspiring experiences to our customers," said John Hinkle, vice president and chief informational officer for Trans World Entertainment. "We selected AT&T as our telecommunications provider because AT&T understands and appreciates entertainment-focused retail and has the network expertise to deliver it."

"We are committed to meeting the evolving telecommunications needs of fast-paced entertainment companies such as Trans World Entertainment," said Erik Friedel, vice president, AT&T. "AT&T broadband services will support three major needs for the company: the delivery of exceptional customer experiences, increased business efficiency and reduction of network costs."

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About AT&T
AT&T Inc. is one of the world's largest telecommunications holding companies and is the largest in the United States. Operating globally under the AT&T brand, AT&T companies are recognized as the leading worldwide providers of IP-based communications services to business and as leading U.S. providers of high speed DSL Internet, local and long distance voice, and directory publishing and advertising services. AT&T Inc. holds a 60 percent ownership interest in Cingular Wireless, which is the No. 1 U.S. wireless services provider with 57.3 million wireless customers. Additional information about AT&T Inc. and AT&T products and services is available at www.att.com.

About Trans World Entertainment
Trans World Entertainment is a leading specialty retailer of music, video and video game products. The Company operates over 1,100 retail stores in the United States, the District of Columbia, the U.S. Virgin Islands and Puerto Rico. The Company operates mall stores under the f.y.e., Sam Goody and Suncoast brands and freestanding locations under the names Coconuts Music and Movies, Strawberries Music, Wherehouse, Sam Goody, Spec's and Second Spin. The Company also operates on the web at www.fye.com, www.coconuts.com, www.wherehouse.com, www.secondspin.com, www.samgoody.com , and www.suncoast.com.

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