Rick’s Cabaret Reports Earnings For Fiscal Second Quarter

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Source: Rick’s Cabaret International Inc.

By: Company Press Release

(HOUSTON, TX) — Rick’s Cabaret International Inc., the Houston-based adult Internet content provider and entertainment chain, announced today that net income for the most recent quarter was $158,000, or 4 cents per share basic, compared to a loss of $113,000, or 3 cents per share basic in the same quarter a year ago, increasing net earnings to 15 cents per share for the trailing 12 months. Revenues for the fiscal second quarter ended March 31, 2001, increased by 90% to $5.4 million from $2.8 million in the same quarter of the previous year.

The Company reported its fourth consecutive profitable quarter. Commented Eric Langan, president and CEO, “Since assuming control in March 1999, I have adopted a mission to create and build shareholder value. Management has implemented strategies to obtain consistent, sustainable and profitable growth in revenues and has generated positive cash flow by providing premium quality adult entertainment that creates value for the customers.”

“We have been consistent in implementing these strategies,” Mr. Langan said. “Results for the past four quarters have shown that our effort has been successful. In the past twelve months, the Company’s cash increased by $124,000 while long-term debt decreased by $828,000. Our long-term debt has been reduced by $1.24 million since March 1999, while our market capitalization increased by 140% reflecting management’s commitment to increasing shareholder value.”

Rick’s Cabaret International Inc. opened its first “Rick’s Cabaret” in Houston in 1983 and went public with its IPO in 1995, making Rick’s the world’s first publicly traded topless entertainment business. Rick’s owns and operates premier adult entertainment Internet Web sites, such as www.DancerDorm.com and www.xxxpassword.com. The Company’s Internet site for the auction of adult items, www.NaughtyBids.com, was launched subsequent to the end of last quarter. Rick’s also owns and/or operates four Rick’s Cabaret locations, three of which are in Houston and one of which is in Minneapolis. Rick’s also owns XTC Cabaret in San Antonio and XTC Cabaret in Austin, Texas, through its 93% owned subsidiary, Taurus Entertainment Companies Inc. Rick’s and its subsidiaries own all the real estate properties where their cabarets and Internet production studio are located except its south Houston location, which is leased.

Other companies in the adult entertainment industry include Playboy Enterprises Inc., New Frontier Media Inc. and Private Media Group Inc.

This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause Rick’s actual results to differ materially from those indicated in this press release include the risks and uncertainties related to the growth of Rick’s Internet operations, the future operational strength of Voice Media, whether the definitive documentation will ultimately be executed, the growth of Rick’s cabaret operations, the laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel and the ability to manage operations. Rick’s has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

(Statistics redacted)

Contact:

Rick’s Cabaret International Inc., Houston

Eric Langan, 281/820-1181

E-mail: eric@ricks.com

or

The Howell Group, Dallas

Larry Howell, 214/368-1592

E-mail: howgroup@ricks.com