Rick's Cabaret International, Inc. Reports Net Income Of $1,031,727 For Third Quarter, Up 62 Percent Over 2006; Earnings Are 17 Cents vs. 13 Cents

HOUSTON-(August 14, 2007)-Rick's Cabaret International, Inc. [NASDAQ:RICK] operator of upscale gentlemen's clubs, today reported net income of $1,031,727 for its third quarter ending June 30, 2007, an increase of 62 percent over the $635,857 reported for the three months ended June 30, 2006. Net income per basic share was 17 cents, compared with 13 cents in the previous year.

Income before income taxes for same-location-same-period of nightclub operations increased 42 percent to $1,901,468 in the third quarter this year, from $1,338,462 for same period last year.

Rick's Cabaret had consolidated total revenues of $8,446,351 for the quarter, compared to consolidated total revenues of $6,251,181 for the three months ended June 30, 2006, an increase of 35 percent that was primarily attributable to $1,601,224 generated by new nightclubs in San Antonio, Austin, and Fort Worth, Texas and an increase of $599,399 from other locations. Total revenues for same-location-same-period of club operations increased just over 10 percent. The company reported a 2.77 percent decrease in internet revenues to $191,553.

"We are very pleased with the results for our third quarter," said Eric Langan, President and CEO of the company. "Revenues from the newly acquired locations are beginning to make the contributions we had anticipated and our existing nightclubs are also growing steadily."

Interest expense for the period was $345,130 compared to $267,059 for the three months ended June 30, 2006, due primarily to new debt to finance the purchase and renovation of the new clubs. As of June 30, 2007, the balance of long-term debt including current maturities was $14,895,002 compared to $12,316,144 a year earlier.

Cash flows from operating activities during the first three quarters were $2,652,237, a 52 percent increase compared with the $1,747,107 generated during the period in 2006.

Mr. Langan and chief financial officer Phillip Marshall will discuss the third quarter results in a conference call today at 4:30 p.m. EDT. The call is being webcast and can be accessed through the Rick’s Cabaret website (www.ricks.com). The toll free live participant dial-in number for callers from the U.S. and Canada is 800-361-0912, while international callers can use 913-981-5559. The conference call will be available for replay for 14 days after the event at 888-203-1112 (U.S. and Canada) and 719-457-0820 (international). Replay passcode: 9453772.

RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

	FOR THE THREE MONTHS ENDED JUNE 30,				FOR THE NINE MONTHS ENDED JUNE 30,
	2007		2006		2007		2006
	(UNAUDITED)				(UNAUDITED)
Revenues:
Sales of alcoholic beverages	$ 3,254,244		$ 2,214,651		$ 8,661,248		$ 6 ,600,135
Sales of food and merchandise	869,853		679,049		2,302,568		1,995,048
Service revenues	3,864,108		2,931,801		10,753,923		8,367,721
Internet revenues	191,553		196,948		557,033		609,857
Other	266,593		228,732		770,925		577,673
Total revenues	8,446,351		6,251,181		23,045,697		18,150,434
Operating expenses:
Cost of goods sold	1,077,984		715,949		2,931,620		2,170,481
Salaries and wages	2,238,630		1,776,181		6,465,822		5,124,704
Stock compensation	48,134		--		178,846		--
Other general and administrative:
Taxes and permits	1,088,917		763,337		2,943,189		2,238,103
Charge card fees	157,932		140,115		439,440		346,425
Rent	388,702		261,863		1,137,974		855,440
Legal and professional	279,339		256,938		766,615		592,885
Advertising and marketing	297,494		285,171		981,290		891,721
Insurance	192,225		104,726		501,490		273,100
Utilities	189,562		157,574		560,063		437,281
Depreciation and amortization	410,507		258,409		1,161,535		726,679
Other	765,146		635,868		2,352,315		1,850,914
Total operating expenses	7,134,572		5,356,131		20,420,199		15,507,733
Income from operations	1,311,779		895,050		2,625,498		2,642,701
Other income (expense):
Interest income	28,940		5,316		41,994		20,702
Interest expense	(345,130)		(267,059)		(999,146)		(801,581)
Minority interests	120,997		2,550		293,204		1,206
Other	--		--		--		4,354
Income before income taxes	1,116,586		635,857		1,961,550		1,867,382
Deferred income taxes	84,859		--		84,859		--
Net income	$ 1,031,727		$ 635,857		$ 1,876,691		$ 1,867,382
Basic and diluted earnings per share:
Net income, basic	$ 0.17		$ 0.13		$ 0.34		$ 0.41
Net income, diluted	$ 0.16		$ 0.12		$ 0.32		$ 0.38
Weighted average number of common shares outstanding:
Basic	6,112,678		4,835,502		5,539,923		4,521,600
Diluted	6,789,647		5,752,084		6,044,398		5,211,700

Comprehensive income for the three months ended June 30, 2007 and 2006 were $1,031,727 and $613,612, and for the nine months were $1,874,466 and $1,867,382, respectively. This includes the changes in available-for-sale securities and net income.

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, 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 [email protected].

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; the Company's ability to identify and secure suitable locations for new nightclubs on acceptable terms, open the anticipated number of new nightclubs on time and within budget; achieve anticipated rates of same-store sales; hire and train additional nightclub personnel and integrate new nightclubs into its operations; unexpected increases in costs of sales or employee, pre-opening or other expenses; the economic conditions in the new markets into which the Company expands and possible uncertainties in the customer base in these areas; fluctuations in quarterly operating results; the impact of any negative publicity or public attitudes; competitive pressure from other national and regional nightclub chains; 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.