Rick's Cabaret International, Inc. Reports Record Revenues And Income For Second Quarter, With EPS Of 32 Cents

HOUSTON - (May 8, 2008) - Rick's Cabaret International, Inc. [NASDAQ-GM:RICK] , the premier operator of upscale gentlemen's clubs, today reported record revenues of $15.46 million for its second quarter ended March 31, 2008 with net earnings of $2.60 million compared with $7.57 million and $492,344, respectively, for the same period last year. Earnings per diluted share for the quarter were 32 cents, compared with 9 cents the year before.

"This significant increase in our revenues and earnings demonstrates that our strategy of acquiring outstanding nightclubs in key markets is yielding the expected results in improving margins and cash flow," said Eric Langan, President and CEO of Rick's Cabaret. Mr. Langan will comment on the results in a conference call scheduled for today at 4:30 p.m. The call is being webcast by VCall (click here) and can be accessed at the Rick’s Cabaret website, www.ricks.com or www.InvestorCalendar.com. The toll free live participant dial-in number is 877-407-8031, and international callers are invited to dial 201-689-8031. The toll free replay number is 877-660-6853 (international callers dial 201-689-8031).

The revenue increase for the three months ended March 31, 2008 was driven primarily by new clubs in Miami and Ft. Worth, which together added nearly $7.29 million, while organic growth from existing clubs added $609,109, an 8.24 percent increase.

The increase in net income was primarily due to higher same-locations-same-period club sales and by revenues from the newly acquired clubs in Miami and Ft. Worth. Income before income taxes for same-location-same-period of club operations for the quarter increased to $1.72 million, a 30.5 percent increase over the same period in 2007.

Cash provided by operating activities for the six months ended March 31, 2008 was $6.4 million, compared with $1.3 million for the same period in 2007.

For the six months ended March 31, 2008, revenues for the company were $26.42 million, compared with $14.6 million for the first half of 2007. Net income was $4.39 million compared with $844,964, and earnings per diluted share for the first six months were 56 cents compared with 15 cents last year.

At the end of the second quarter the company showed $94.48 million in total assets on its balance sheet, compared with $ 47.07 million at the same point last year.

Mr. Langan noted that new clubs in Philadelphia and Dallas opening in the third quarter will add more new revenues but he cautioned that start up expenses to launch the new clubs would also be a factor in results for the period. He said the company would update guidance for 2008 during the conference call.

Rick's CABARET INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

	FOR THE THREE MONTHS ENDED MARCH 31,				FOR THE SIX MONTHS ENDED MARCH 31,
	2008		2007		2008		2007
	(UNAUDITED)				(UNAUDITED)
Revenues:
Sales of alcoholic beverages	$ 5,702,934		$ 2,812,406		$ 9,898,126		$ 5,407,004
Sales of food and merchandise	1,325,585		768,628		2,385,917		1,432,715
Service revenues	7,748,514		3,538,017		12,772,011		6,889,815
Internet revenues	172,712		177,502		343,501		365,481
Other	514,515		273,036		1,019,043		504,332
Total revenues	15,464,260		7,569,589		26,418,598		14,599,347
Operating expenses:
Cost of goods sold	1,633,224		962,469		2,975,055		1,853,636
Salaries and wages	3,297,158		2,156,054		5,883,634		4,227,192
Stock compensation	39,270		65,356		78,540		130,712
Other general and administrative:
Taxes and permits	2,018,865		981,327		3,254,658		1,854,272
Charge card fees	254,261		137,505		452,971		281,507
Rent	618,677		396,040		1,083,132		749,272
Legal and professional	349,862		248,418		643,235		487,276
Advertising and marketing	563,609		325,027		924,441		683,797
Insurance	166,933		180,812		368,329		309,265
Utilities	281,496		204,083		491,231		370,501
Depreciation and amortization	646,127		386,427		1,157,466		751,027
Other	1,231,064		798,908		2,170,295		1,587,170
Total operating expenses	11,100,546		6,842,426		19,482,987		13,285,627
Income from operations	4,363,714		727,163		6,935,611		1,313,720
Other income (expense):
Interest income	26,403		2,420		69,472		13,054
Interest expense	(676,673)		(328,454)		(1,138,556)		(654,017)
Minority interests	--		91,215		177,911		172,207
Income before income taxes	3,713,444		492,344		6,044,438		844,964
Income taxes	1,108,064		--		1,655,786		--
Net income	$ 2,605,380		$ 492,344		$ 4,388,652		$ 844,964
Basic and diluted earnings per share:
Net income, basic	$ 0.34		$ 0.09		$ 0.61		$ 0.16
Net income, diluted	$ 0.32		$ 0.09		$ 0.56		$ 0.15
Weighted average number of common shares outstanding:
Basic	7,561,163		5,365,602		7,183,699		5,253,546
Diluted	8,473,497		5,647,442		8,012,745		5,540,233

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]