Rick's Cabaret International, Inc., Reports Increase in Net Income for Year Eended Sept. 30, 2003 Due to Club Operation Efficiencies and Sale of Subsidiary



Houston -- (December 30, 2003)
-- The Board of Directors of Rick's Cabaret International, Inc. [NASDAQ: RICK], operator of a chain of gentlemen's clubs and adult Internet sites, today reported net income before cumulative effect of accounting change for the year ended September 30, 2003 of $438,294 compared to $261,204 for the year ended September 30, 2002, with earnings of 12 cents per share compared with six cents per share in the previous year.

The company reported consolidated total revenues of $15,059,569, compared to consolidated total revenues of $15,557,302 for the year ended September 30, 2002. The results included an increase in revenue from existing and new nightclub operations of $561,902, which was offset by a reduction of $1,059,636 as part of the final stage of a planned restructuring of Rick's Cabaret Internet activities. Revenue from nightclub operations for same-location same-period increased by 2.30%, while revenue from Internet businesses for same-sites same-period decreased by 50.16%.

The increase in net income was primarily due to a gain of $342,381 from the sale of the company's Taurus Entertainment Companies, Inc. While net income for nightclub same-location-same-period rose nearly two percent year-over-year, net operating income for all nightclub operations, was $1,934,574 for the year ended September 30, 2003 compared with $2,121,642 for the year ended September 30, 2002. Net operating income for the company's Internet businesses was $36,421 for the year ended September 30, 2003 compared with $169,793 for the year ended September 30, 2002.

"Our results this year reflect our continued efforts to reduce costs in out club operations through improved inventory management, to improve margins from liquor and food sales and to improve food service efficiency," said Eric Langan, CEO of Rick's Cabaret. "We have completed the restructuring of our Internet operations and this part of our business should stabilize in the near term."

"We expanded our night club operations in 2003 by acquiring 51% control of a popular adult nightclub near Hobby Airport in Houston, which is now part of our popular XTC Cabaret group, and we opened an adjacent sports bar called Hummers. We continue to look for advantageous opportunities for further growth in the cabaret area, where our business model has proved to be extremely efficient," Mr. Langan said.

About Rick's Cabaret
Rick's Cabaret International, Inc. (www.ricks.com) is organized into two business lines:  1) Nightclubs and entertainment, comprising seven owned and operated adult nightclubs in Houston, Austin and San Antonio, Texas, and Minneapolis, Minnesota under the names "Rick's Cabaret" and "XTC Cabaret" that offer live adult entertainment, restaurant and bar operations; an adults only "couples" night club in Houston called "Encounters," which is a club for couples who enjoy the swingers' lifestyle; and a Houston sports bar "Hummers" and, 2) Internet Activities encompassing three premium adult entertainment sites such as www.xxxpassword.com, www.couplestouch.com and www.otherstouch.com, plus the www.naughtybids.com auction site, which earns revenue through Webmaster referral fees and by providing a marketplace for adult paraphernalia. Rick's Cabaret common stock is traded on the NASDAQ SmallCap market under the symbol RICK.


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 club activities and 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. Please refer to the company's 10KSB for a complete Forward Looking Statement, which is available online at the Company's Website, www.ricks.com.

Operating Results:
Rick's Cabaret International Inc. year ending Sept. 30, 2003:

 
9/30/2003
9/30/2002
Revenues
$ 15,059,569
$ 15,557,302

Net income before minority interest and
cumulative effect of
accounting change

438,294
261,204

Net Income per share
Basic and diluted

.12
.06

Weighted average shares outstanding:

3,729,167
4,241,483



Contacts: Allan Priaulx, 212-338-0050, ir@ricks.com