Rick's Cabaret International Reports Operating Results for its Third Quarter, Ending June 30, 2003



HOUSTON
-- (August 19, 2003) --
Rick's Cabaret International, Inc.,
which operates gentlemen's clubs and adult Internet sites, reported consolidated total revenues of $3,822,141 for the three months ended June 30, 2003 compared to consolidated total revenues of $3,952,069 for the similar period last year. The decrease of $129,928 was primarily due to a drop in Internet-related revenues. Net income for the three months was $276,201 compared to a net income of $223,206 for the same period last year, primarily due to the sale of a subsidiary. Earnings per share were $.07 versus $.06.

In its most recent 10QSB filing to the SEC, Rick's Cabaret management said it believes "we are seeing the bottoming out of Internet revenues due to the aging of the adult Internet marketing programs for adult sites." While revenue for the Company's content membership site has continued to decline, revenues from auction sites continues to increase, and the company started charging for membership to www.couplestouch.com in February 2003. The www.couplestouch.com site serves as a dating site for couples seeking others for sexual relationships/friendships.

Revenues at the company's nightclubs division increased quarter-on-quarter from $3.378 million to $3.572 million, or nearly six percent. The company executed sales agreement for its Taurus Entertainment Companies subsidiary, recording a $327,000 gain.


Operating Results: Rick's Cabaret International, Inc. Period Ending June 30, 2003
(In thousands, except for per share data)
 
3 months
ended
9 months
ended
 
June 30
June
 
2003
2002
2003
2002
Revenues $3,822 $3,952 $11,109 $11,917
Net income 276 223 342 756
Per share .07 .06 .09 .20
Weighted averageshares outstanding (000): 3,715 3,901 3,725 3,901

About Rick's Cabaret:
Rick's Cabaret International Inc. [NASDAQ: RICK] is organized into two business lines: 1) Nightclubs and entertainment comprising Rick's Cabaret gentlemen's clubs in Houston and Minneapolis, XTC Clubs in San Antonio and Austin, and 2) Internet activities, which encompass adult entertainment membership portals that provide access to third-party adult-oriented Websites such as www.xxxpassword.com, a subscription-based website for couples that enjoy the "swingers' lifestyle called
www.couplestouch.com, and auction sites such as www.naughtybids.com that operate on a single proprietary technology platform and earn revenue by providing a marketplace for adult paraphernalia and through Webmaster referral fees. For further information visit Ricks.com or email ir@ricks.com.

Forward Looking Statements:
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause Rick's actual results to differ materially from those indicated in this press release include the risks and uncertainties as to the future operational and financial results of our Web sites, the future operational performance of our partners, the laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel and the ability to manage operations. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Investor and Media Contact:
Allan Priaulx, 212-338-0050, ir@ricks.com