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Rick's
Cabaret
FOR IMMEDIATE RELEASE
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RICK'S CABARET SIGNS PURCHASE AGREEMENT FOR CONTROL OF NEW GENTLEMEN'S CLUB IN
AUSTIN, TEXAS
HOUSTON-(October 12, 2006)-RICK'S CABARET INTERNATIONAL, INC. (NASDAQ: RICK),
the national chain of adult entertainment nightclubs, said today it has entered
into a Purchase Agreement to acquire a 51 percent interest in a new
22,000-square-foot gentlemen's club in fast-growing Austin, Texas. As part of
the transaction, the Company will enter into a Management Agreement under which
it will manage the club as a Rick's Cabaret.
The transaction is expected to close upon issuance of final permits by the City
of Austin, subject to normal due diligence for transactions of this nature.
Rick's Cabaret will pay $500,000 in cash and will issue 125,000 shares of the
company's restricted common stock valued at $8 per share to the current owner of
PLAYMATES GENTLEMEN'S CLUB at 8110 Springdale Road. The club is located in the
northern part of Austin just east of the busy I-35 corridor. Constructed earlier
this year, the club is expected to open in late October or early November and
will become one of the company's flagship locations along with the company's
other upscale locations.
"We are delighted to have completed the negotiations for this outstanding venue,
which we predict will become one of the premier adult nightclubs in the
country," said ERIC LANGAN, CEO of Rick's Cabaret. "We will have the majority
ownership and will operate the club with our famous Rick's Cabaret model -
beautiful women, unequaled customer service and friendliness, plus a great
steakhouse in a luxurious setting."
The Playmates transaction is the fourth this year for Rick's Cabaret, bringing
the total number of clubs owned or operated by the company to 13. "This is the
latest in our active acquisition program, which is continuing as we study other
possibilities throughout the country," said Mr. Langan.
Austin, with a current population of 1.4 million, is one of the fastest growing
cities in the United States adding over 400,000 people during the 1990s and
increasing its population by nearly 50 percent, according to the Texas Office of
Economic Development and Tourism.
Earlier this year Rick's Cabaret acquired three clubs in South Houston and San
Antonio, Texas.
ABOUT RICK'S CABARET
Rick's Cabaret International, Inc. (NASDAQ: RICK) 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, www.couplestouch.com, and a
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network of online adult auction sites under the flagship URL
www.naughtybids.com. Rick's Cabaret common stock is traded on NASDAQ under the
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symbol RICK. For further information contact ir@ricks.com.
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FORWARD-LOOKING STATEMENTS:
This document contains 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 www.ricks.com.
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CONTACT FOR FURTHER INFORMATION: ALLAN PRIAULX, 212-338-0050, IR@RICKS.COM
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