[GRAPHIC OMITTED]
RICK'S
CABARET
RICK'S CABARET EXPECTS NEW YORK CITY CLUB WILL ADD SIGNIFICANTLY TO THE
COMPANY'S REVENUE AND INCOME
NEW YORK CITY - (October 7, 2005) -- RICK'S CABARET INTERNATIONAL, INC. (NASDAQ:
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RICK) said last night the launch of its upscale adult gentlemen's club in New
York City has been successful and the new location could increase the company's
revenue by 50% in fiscal 2006.
Addressing a meeting of the FINANCIAL ANALYSTS AND MONEY MANAGERS, INC. (FAMMS)
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in New York City on Thursday evening (Oct. 6), Eric Langan, President and CEO of
Rick's Cabaret, said the new club in midtown Manhattan should generate about $8
million in revenue in fiscal 2006, which began Oct. 1, 2005. The company's
revenue in fiscal 2004 was $16 million; the 2005 fiscal year closed on September
30th and results are not yet available.
Mr. Langan said the New York City club should be immediately accretive to profit
and could bring total net income for the company to $2 million in fiscal 2006.
Rick's Cabaret reported net income of $ .8 million in 2004; the 2005 figures are
not yet available.
While Mr. Langan did not discuss results for the company's 2005 fiscal year he
did reiterate an earlier statement that fourth quarter fiscal 2005 earnings
would be negatively impacted by the costs associated with the launch of the New
York City club.
He said revenue projections are being met in the first weeks following the
launch of the luxurious new three-story Rick's Cabaret-NYC, located at 50 West
33rd Street between Madison Square Garden and the Empire State Building. More
than 500 patrons visited the club on the first night of a four-day grand opening
celebration September 21st. Reviews in the media and from patrons have been
positive.
Mr. Langan also told the FAMMS group that Rick's Cabaret intends to participate
in what he predicted will be the rapid consolidation of the adult nightclub
industry over the next few years. He noted that so far in 2005 the company has
acquired clubs in New York City and Charlotte, NC.
He said there are about 3,000 upscale gentlemen's clubs in the U.S., many of
them owned by individual "baby boomers" who he believes are entering a time in
their lives when they want to monetize their assets. Rick's Cabaret hopes to
acquire additional clubs through a combination of cash and issuance of its
common stock in a model similar to that of the casino industry during the past
decade.
ABOUT RICK'S CABARET
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Rick's Cabaret International, Inc. (NASDAQ: RICK, www.ricks.com) operates
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upscale adult nightclubs serving primarily businessmen and professionals that
offer live adult entertainment, restaurant and bar operations. The company owns,
operates or licenses adult nightclubs in New York City, New Orleans, Houston,
Minneapolis and other cities under the names "Rick's Cabaret," "XTC," "Club
Onyx" and "Hummers." No sexual contact is permitted at any of these locations.
Rick's Cabaret also owns the adult Internet membership Web site,
www.couplestouch.com, and a network of nine online auction sites for adult
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products under the flagship URL www.naughtybids.com. Rick's Cabaret common stock
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is traded on the NASDAQ SmallCap market under the symbol RICK. For further
information contact ir@ricks.com.
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FORWARD-LOOKING STATEMENTS:
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This press release may contain forward-looking information within the meaning of
Section 21E of the Securities Exchange Act of 1934 that involves significant
risks and uncertainties, and is subject to the safe harbors created by this
section. Important factors that could cause actual results for Rick's Cabaret to
differ materially from those indicated in this press release include the risks
and uncertainties as to the future operational and financial results of our Web
sites, conditions relevant to real estate transactions, the future operational
performance of our partners, the laws governing the operation of adult
entertainment businesses, competitive and economic factors, dependence on key
personnel and the ability to manage operations. Rick's Cabaret has no obligation
to update or revise the forward-looking statements to reflect the occurrence of
future events or circumstances. Please refer to the documents Rick's Cabaret
files from time to time with the Securities and Exchange Commission, in
particular the most recent quarterly reports on Form 10-QSB and annual report on
Form 10-KSB, which are available at the Company's website, www.ricks.com.
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CONTACT FOR FURTHER INFORMATION: ALLAN PRIAULX, 212-338-0050, IR@RICKS.COM
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