SOURCE: Rick's Cabaret International, Inc.

February 07, 2007 09:00 ET

Rick's Cabaret Plans to Buy Upscale Gentlemen's Club in Dallas-Ft. Worth Metroplex

HOUSTON, TX -- (MARKET WIRE) -- February 7, 2007 -- Rick's Cabaret International, Inc. (NASDAQ: RICK), the publicly traded chain of gentlemen's clubs, has signed a letter of intent to purchase an adult nightclub in the Dallas-Ft. Worth Metroplex that the company believes will add in excess of $4 million in annual revenue and more than $1 million in EBITDA.

The name and location of the fully licensed venue and its seller are being kept confidential until closer to the scheduled closing of the transaction, which will take place on or before April 30, 2007, subject to execution of a definitive agreement and contingent upon normal due diligence and closing activities associated with purchases of this type, including financing. Rick's Cabaret will pay $4.9 million for the club.

Rick's Cabaret President and CEO Eric Langan said the purchase is part of the company's strategy to grow revenue and profit both organically and through acquisition of facilities that are already in operation and can be quickly accretive to income. The company acquired four venues in calendar 2006.

"The club we are acquiring is an excellent facility in a premier location in the fast-growing Dallas-Ft. Worth area and has excellent prospects for growth," Mr. Langan said. "It is exactly the kind of acquisition we have targeted in our strategic plan and we are continuing to examine other opportunities that are consistent with this program."

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,, and a network of online adult auction sites under the flagship URL Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact

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

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