Rick's Cabaret International, Inc. Reports $7 Million Revenue For First Quarter With 7-Cent Earnings Per Share

HOUSTON -(February 13, 2007)- Rick's Cabaret International, Inc. [NASDAQ:RICK], national operator of gentlemen's clubs, said today it had consolidated revenues of $7 million in its first quarter ending Dec. 31, 2006, a 21.6 percent increase over the previous year total of $5.8 million.

Net income was lower than the prior year due to costs associated with re-launching clubs in Charlotte and Houston and opening two new nightclubs in San Antonio and Austin. Re-launching and pre-opening costs are estimated to have been in excess of $400,000.

The company earned 7 cents per basic share during the quarter, compared with 12 cents in the same quarter in the previous year, on net income of $352,954 compared with $525,396.

Eric Langan, President and CEO of Rick's Cabaret, said: "I am very pleased with the operations of our existing clubs. In our New York club, revenues increased 63 percent versus the same quarter in 2005, and operating profit increased 1,250 percent in the same period. We had extraordinary costs associated with the acquisition of controlling interest in a new club in Austin and continued start-up costs in San Antonio. In addition, we temporarily closed two clubs in Charlotte and Houston for several weeks in order to re-launch them in our Club Onyx format. We are now seeing the benefit of all of these moves."

The increase in total revenues was primarily generated by a 9.72 percent increase from existing clubs as well as revenues from our new clubs.

During the first quarter net cash provided by operating activities was $711,820, compared with $427,548 in the prior year.

Mr. Langan will discuss the first quarter results and the company’s outlook today in a conference call for investors at 4:30 p.m. ET that will be available through both the Rick’s Cabaret website, www.ricks.com, and through VCall at http://www.vcall.com/IC/CEPage.asp?ID=113571. Those wishing to call in by telephone from the U.S. should dial 877-407-8031; international callers should dial 201-689-8031. Telephone replay information is available at www.ricks.com. The replay of the webcast will be available until May 13, 2007.

RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

	FOR THE THREE MONTHS ENDED DECEMBER 31,
		2006		2005
	(UNAUDITED)	(UNAUDITED)
Revenues:
Sales of alcoholic beverages		$ 2,594,598		$ 2,169,995
Sales of food and merchandise		664,088		638,724
Service revenues		3,351,798		2,594,801
Internet revenues		187,978		209,157
Other		231,667		167,058
Total revenues		7,030,129		5,779,735
Operating expenses:
Cost of goods sold		891,168		709,237
Salaries and wages		2,071,137		1,669,711
Stock compensation		65,356		---
Other general and administrative:
Taxes and permits		872,946		695,316
Charge card fees		144,002		102,236
Rent		353,232		296,846
Legal and professional		238,858		150,657
Advertising and marketing		358,769		290,668
Insurance		128,453		66,576
Utilities		166,419		129,127
Depreciation and amortization		364,601		232,482
Other		788,298		652,769
Total operating expenses		6,443,239		4,995,625
Income from operations		586,890		784,110
Other income (expense):
Interest income		10,634		6,436
Interest expense		(325,563)		(263,052)
Minority interests		80,993		1,387
Other		---		(3,485)
Net income		$352,954		$525,396
Basic and diluted earnings per share:
Net income, basic		$ 0.07		$ 0.12
Net income, diluted		$ 0.07		$ 0.11
Weighted average number of common shares outstanding:
Basic		5,141,489		4,321,061
Diluted		5,433,024		4,599,779

Comprehensive income for the three months ended December 31, 2006 and 2005 was $337,382 and $525,396, respectively. This includes the changes in available-for-sale securities and net income.


About Rick's Cabaret
Rick's Cabaret International, Inc. (NASDAQ: RICK, www.ricks.com) 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, www.couplestouch.com, and a network of online adult auction sites under the flagship URL www.naughtybids.com. Rick's Cabaret common stock is traded on NASDAQ under the symbol RICK. For further information contact [email protected] or visit www.ricks.com.

Forward-Looking Statements:
This press release may contain 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 www.ricks.com.