Rick's Cabaret International, Inc. Agrees To Buy Adult Nightclub In The Southeastern United States

HOUSTON-(October 18, 2007)-Rick's Cabaret International, Inc. [NASDAQ:RICK] operator of upscale gentlemen's clubs, entered into a Letter of Intent to buy an existing adult nightclub in the Southeastern United States that it believes will add about $18 million in annual revenue and about $8 million in EBITDA (earnings before income taxes, depreciation and amortization). For the twelve months ended June 30, 2007, Rick's had revenues of approximately $29 million and EBITDA of approximately $4.4 million.

Under terms of the Letter of Intent, the club will be acquired for $25 million. The acquisition is subject to completion of due diligence, obtaining appropriate financing, the transfer of all necessary permits and other authorizations, and execution of definitive documents. The name of the fully licensed club and its location are being kept confidential until the execution of definitive documents. The company presently plans to finance this acquisition primarily through debt.

"This is an important acquisition for our company. It should add significantly to our earnings, it falls within our target price range of three to five times EBITDA and is consistent with our strategy of acquiring venues that will be immediately accretive," according to Eric Langan, President and CEO of Rick's Cabaret International, Inc.

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.

Contact for further information: Allan Priaulx, 212-338-0050, [email protected]