EXHIBIT 99.1
RICK'S CABARET COMPLETES ACQUISITION OF CENTERFOLDS GENTLEMAN'S CLUB IN SAN
ANTONIO, ITS THIRD NIGHTCLUB IN GROWING TEXAS MARKET
HOUSTON--(BUSINESS WIRE)--Aug. 24, 2006--Rick's Cabaret International, Inc.
(NASDAQ: RICK - News), the publicly traded chain of adult nightclubs, said today
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its subsidiary RCI Debit Services, Inc., has completed the acquisition of
Centerfolds Gentleman's Club in San Antonio, Texas (5418 Brewster Street).
Additionally, its subsidiary RCI Holdings, Inc. has completed the acquisition of
the real property where Centerfolds is located.
The former Centerfolds will become an upscale Rick's Cabaret, featuring
beautiful and personable entertainers in a luxurious setting, the model the
company uses at its existing Rick's Cabaret clubs in New York City, Houston,
Charlotte and Minneapolis.
Under terms of the transaction, the Rick's Cabaret subsidiaries are paying a
total of $2.9 million for the club, along with an 18,000 square foot building
and accompanying real estate. Of this amount, $600,000 was paid in cash at the
closing and the remaining amount is being financed through promissory notes that
are not convertible into Rick's Cabaret stock. Key former owners have entered
into non-compete agreements.
"This is an important acquisition for us and we are looking forward to
introducing the upscale Rick's Cabaret model into the very dynamic San Antonio
market," said Eric Langan, CEO of Rick's Cabaret.
With today's acquisition Rick's Cabaret now operates three clubs in the San
Antonio market. The company has operated an XTC Cabaret (2023 Sable Lane) for
several years. On July 11th, Rick's Cabaret acquired the former Club Exotica
(4102 Naco Perrin Street), which is now operating as an upscale Club Onyx,
catering to African-American gentlemen.
The newest club is conveniently located in North San Antonio directly off the
busy I-35 artery. San Antonio is one of the fastest growing cities in the United
States. The U.S. Census Bureau announced last month that among the 10 largest
cities San Antonio has replaced San Diego as the nation's seventh most populous
city. Along with population growth, San Antonio has also witnessed strong
economic and employment growth primarily attributed to its stable economic
sectors.
About Rick's Cabaret
Rick's Cabaret International, Inc. (NASDAQ: RICK - News, ricks.com - News)
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operates upscale adult nightclubs serving primarily businessmen and
professionals that offer live adult entertainment, restaurant and bar
operations. The company owns and operates or licenses adult nightclubs in New
York City, New Orleans, Charlotte, Houston, Minneapolis and other cities under
the names "Rick's Cabaret," "XTC" and "Club Onyx." No sexual contact is
permitted at any of these locations. Rick's Cabaret also owns the adult Internet
membership Web site, couplestouch.com, and a network of online adult auction
sites under the flagship URL naughtybids.com. Rick's Cabaret common stock is
traded on NASDAQ under the symbol RICK. For further information contact
ir@ricks.com or visit ricks.com.
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Forward-looking Statements:
This press release may contain forward-looking statements that involve a number
of risks and uncertainties that could cause the company's actual results to
differ materially from those indicated in this document, including the risks and
uncertainties associated with operating and managing an adult business, the
business climates in New York City and elsewhere, the success or lack thereof in
launching and building the company's businesses in New York City and elsewhere,
risks and uncertainties related to the operational and financial results of our
Web sites, conditions relevant to real estate transactions, and numerous other
factors such as laws governing the operation of adult entertainment businesses,
competition and dependence on key personnel. Rick's has no obligation to update
or revise the forward-looking statements to reflect the occurrence of future
events or circumstances. For further information go to ricks.com.
Contact:
Rick's Cabaret International, Inc.
Allan Priaulx, 212-338-0050
ir@ricks.com
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