Fullplay Files Suit Against Trans World Entertainment; Alleges Breach of Contract and Duty of Good Faith and Fair Dealing.

Business Editors

BELLEVUE, Wash.--(BUSINESS WIRE)--June 24, 2003

Fullplay Media Systems, Inc. announced today that it has filed suit against Trans World Entertainment Systems (Nasdaq:TWMC) as part of its Chapter 11 Bankruptcy filing in the United States Bankruptcy Court for the Western District of Washington at Seattle claiming breach of contract and the duty of good faith and fair dealing.

"Fullplay's action against Trans World alleges that Trans World has willfully and deliberately frustrated Fullplay's ability to sell its technology to other customers and raise investment capital," said Dennis Tevlin, CEO of Fullplay. "We believe Trans World used its size and market power to prevent other companies from benefiting from Fullplay's technology in the hopes of sustaining an unfair competitive advantage and drive Fullplay out of business."

In April of 2002 Fullplay entered into a non-exclusive agreement to sell Trans World listening and viewing stations (LVS) for its FYE stores. Other than providing a unique shape and color for the external shell of the LVS unit, there were no restrictions placed on Fullplay's ability to make, use, or sell the LVS technology. Since this agreement was executed, Trans World has received approximately 16,000 LVS devices from Fullplay.

In September of 2002 Fullplay entered into a non-exclusive agreement providing Trans World a license for 20,000 copies of Fullplay's digital media software customized for the LVS. In this agreement, Trans World acknowledged that Fullplay retained all copyright, patent, moral, trade secret, trademark, title and other proprietary and intellectual property rights in the software, documentation, and components thereof.

Since the installation of the LVS devices was completed in some 600 FYE stores, Trans World has touted the LVS system and disclosed impressive results in its quarterly earnings calls with the investment community. These results include increasing same store sales by 5%, exposing more than 20 million customers to the systems each month, doubling the average time a customer spends in stores, and increasing the amount of product purchased on average by 39%.

"It is now abundantly clear that, based on the overwhelming success of this system, Trans World seeks a retroactively exclusive deal, violating both the spirit and the contractual terms of our agreement with them," said CEO Tevlin. "Trans World's breach of contract and their tactic of intimidation have caused us significant damages. We plan to seek an injunction to prevent them from using our software, effectively disabling the system, and we will seek the maximum amount of damages at trial."

For more information contact Richard Barber at 425/653-5505 or email us at [e-mail]