RCI Hospitality (RICK) 8-K Regulation FD Disclosure

Investor Presentation

September 07

1

Safe Harbor Statement

 This presentation may contain forward-looking statements that
are covered under the provisions of Section 27A of the Securities
Act of 1933 regarding Safe Harbor statements. Forward-looking
statements may involve revenue, income and other business
activities of Rick's Cabaret. Actual results could differ materially
from those projected in the forward-looking statements as a
result of many factors, including but not limited to the risks
associated with operating an adult business, our ability to
complete the acquisitions of new business units, business
climates in New York City and elsewhere, the success or lack
thereof in building the company's business in New York City and
elsewhere, and numerous other factors. Under provisions of the
Safe Harbor section, the company is under no obligation to
correct, update or amend oral statements. Definitive information
about the company is presented on the company's Website,
www.ricks.com, and in filings made to the SEC, which are also
available on the Website.

2

6/30/07

Company Profile

●Rick's Cabaret Intl. Inc. operates upscale adult
entertainment nightclubs offering live 
entertainment as well as food and drinks

●LTM revenue split

●Alcoholic beverages 37%

●Food & merchandise 10%

●Service revenues 47%

●Internet & other 6%

●Headquarters in Houston, TX

●Operates 14 clubs in TX, MN, NC, and NY,
licenses clubs in Louisiana and Argentina

●Operates adult web sites: naughtybids.com,
xxxpasssword.com and CouplesTouch.com

Overview

Sales Growth

(mm)

3

Company History

lRick's founded in 1983

        in Houston

l Listed on NASDAQ in
1995

l Eric Langan appointed
CEO in 1999

lCompany begins its
nation wide expansion
program

Development

Expansion

2004-2006

2007-

1983-2003

l Positioned for future
growth

l Building national
presence

l Moves up to NASDAQ
Global Market

l Industry consolidator,
similar to Casino model

lAcquiring up-and-

running clubs that

        are quickly accretive

l Implemented proprietary
cash management and
control systems

l Acquired and
successfully integrated
NYC and North Carolina
clubs

l Acquired 4 clubs in 2006

l Focused on transparency,
quality, and compliance

l Brand development

Repositioning

4

Investment Highlights

●Large, fragmented and rapidly growing industry

●$2Bn in 2006*, 10% y-o-y growth, stable demand and

    universal appeal

●Proven business model with focus on core competencies

●Large real estate portfolio

●Key business licenses in NYC and other cities

●Strong financial performance

●Strong cash flow generation

●Organic growth up to 10% in 2006

●Experienced management team with proven track record

* Source: AVN Media Network 2006

5

Management Team

•President, owner, and certified public accountant of Pringle Jenkins &
Associates, P.C.

Director

Steven L. Jenkins

•CFO of CDT Systems, Inc. [CDTN], Audit Partner, KPMG

•30+ years of experience in financial management and audit services

•IT executive, Director of Internet Division

Chief Financial Officer

VP/Director

Phillip K. Marshall

Travis Reese

Relevant experience

Title

Name

•Former Executive Vice President Thomson Financial/Banking

•Journalist and publisher; member of NIRI.

Investor & Media Relations

Alan Priaulx

•Noted First Amendment Attorney

•Former President First Amendment Lawyers Assn.

Director

Luke Lirot

•Founded Rick's in 1983; CEO until 1999

•Licensed solicitor in UK and member of the bar in New York State

•Chief Operating Officer, Eagle Securities

Founder/Director

Director

Robert L. Watters

Alan Bergstrom

•20 years business and industry experience

•Member of the Board of Directors of Adult Club Executives (ACE), the
major trade organization for this industry

•Successfully started and developed businesses prior to Rick's

President and CEO

Eric Langan

6

Favorable Trends

2006 Adult Industry Segments

Large & Growing Industry

●In 2006, $13Bn large, growing
non-cyclical industry

●Stable demand, universal appeal

●US consumer more accepting,
interested in adult entertainment

●$2Bn adult club revenues

●Clubs segment is fragmented with no
clear leader - yet

Stable Demand Going Forward

Source: AVN Media Network, 2006

Total $ 13Bn

7

Revenue Model

●Financial controls with our proprietary
cash management system

●Multiple revenue streams

●Growing brand awareness

●Maintaining quality control enhances
brand & corporate value

●Quality customer service builds loyalty,
assures repeat business

Rick's Revenue by Segment

LTM 6/30/07

Business Model

Total $ 29mm

8

Strategy

●Focus on core competency - become #1 club in each
market

●Increase operating efficiency & raise gross margins 

●Transparency, security, and rigorous cash control

●Build brand awareness/equity

●Maintain lean operating system

lMajor metro areas: high business traffic /
conventions / tourism / pro sports

lPurchase at 3-5 times earnings 

lImmediately accretive with no ramp up period 

lUse combination cash-debt-stock

lRobust pipeline of potential targets

Organic
Growth

Acquisition
Growth

9

Impact of Acquisition of NY Club

●On January '05, Rick's acquired
Paradise Club for $7.6 mm (3.2x Rev),
a prime Midtown Manhattan location
with grandfathered licence

●Financed with $2.5 mm cash and $5.1
mm seller notes convertible into
shares of restricted common at a
range of $4.00 and $7.50 per share

●Rebranded as Rick's Cabaret 

●Since the acquisition total sales grew at

       34.1% annually

●Immediate implementation of Rick's
proprietary cash controls, service
      quality controls, security &
      transparency measures

Transaction Overview

Financial Performance

Source: Company Filings and Capital IQ.

10

Income Growth

●Organic Growth avg 10%

●Acquisition growth avg 22%

●Beat 2Q and 3Q '07 estimates

●Strong cash flow generation

●Signed LOI with Philadelphia club

Financial Performance

Recent Factors

11

Strong Balance Sheet

●Solid positioning as an industry
consolidator

●Real property holdings provide
long-term protection

●Equity growth

Balance Sheet 

Comments

12

Concerns and Responses

●Legal environment raises questions

●Industry "stigma" limits access to capital 

●Liquidity

●Economies of scale difficult 

●Theft and losses

lStrict zoning and other regulations actually

      enhance our competitive position

lGrandfathered licenses

l"Stigma" no longer an issue in key capital markets

lNational & regional buying leverage, corporate
expenses decline as cost percentage 

lSupervision, control and transparency

Concerns

Responses

13

Investment Highlights

●Large, fragmented and rapidly growing industry

●$2Bn in 2006*, 10% y-o-y growth, stable demand and

    universal appeal

●Proven business model with focus on core competencies

●Large real estate portfolio

●Key business licenses in NYC and other cities

●Strong financial performance

●Strong cash flow generation

●Organic growth up to 10% in 2006

●Experienced management team with proven track record

* Source: AVN Media Network 2006

14