Rick's Cabaret International, Inc. Issues New Guidance For 2008 And Outlook For 2009

HOUSTON-(October 31, 2007)-Rick's Cabaret International, Inc. [NASDAQ:RICK], operator of upscale gentlemen's clubs, today issued new guidance for its revenues and income for the 2008 fiscal year and its outlook for 2009.

For its 2008 fiscal year the company said it expects to have sales of approximately $52 million, with after tax net income of about $7 million on which it anticipates earning 95 cents per basic share. Calendar 2008 revenues should equal about $58 million, with net income of about $9 million and projected earnings of approximately $1.25 per share.

The company's outlook for fiscal 2009 anticipates revenues of approximately $75 million, net income of about $13 million and earnings of about $1.70 per basic share.

These projections are based on closing two previously disclosed acquisitions by December 31, 2007 for 51 percent interest in an adult night club in Philadelphia and 100 percent ownership of a major club in the Southeastern U.S., plus same store sales growth of six percent. The company has reached a definitive agreement for the Philadelphia transaction and has signed a letter of intent for the club in the Southeastern U.S.

In addition the projections anticipate issuance of 225,000 new shares of common stock for the Philadelphia transaction and up to 1.2 million shares, plus the assumption of $10 million in debt in connection with financing other acquisitions. These projections assume the acquisition of one additional club in 2008 and further assume completing two acquisitions in early 2009. The 2009 outlook assumes issuing an additional 400,000 shares of common stock in connection with acquisitions. Actual financing terms may differ from these assumptions and could affect the earnings per share projections.

Eric Langan, President and CEO of Rick's Cabaret, said factors that could impact these projections include the company's ability to reach satisfactory terms in the definitive document for the acquisition of the club in the Southeastern U.S., to complete its planned acquisitions and other new acquisitions in the time assumed, to obtain satisfactory financing on acceptable terms and conditions, and to continue to grow revenues at existing clubs as well as any unforeseen events that may impact the company's ability to complete the assumed acquisitions as anticipated.

These projections update the company's previous guidance issued on February 13, 2007. The company operates on a fiscal year ending September 30. Some projections have also been stated on a calendar year basis for ease in comparison with other companies.

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]