Rick's Cabaret International, Inc., Reports First Quarter Results; Income Up Significantly as Nightclub Revenues Rise



Houston -- (February 17, 2004)
-- Rick's Cabaret International, Inc. [NASDAQ: RICK], today reported net income $239,256 for its first quarter ended Dec. 31, 2003, compared to $94,674 for the same period a year earlier. The improvement in net income was driven by a strong upswing in its core adult nightclub business and also reflects cost control measures implemented throughout the corporation. Earnings per share were six cents in the quarter, compared with three cents a year earlier.

Rick's Cabaret, which operates upscale gentlemen's clubs and other adult-themed night clubs, reported consolidated total revenues of $3,852,033 compared to consolidated total revenues of $3,729,386 for the three months ended December 31, 2002, an increase of $122,647 or 3.29%.

"Our adult night club business appears to be returning to an upward growth pattern as business travel continues to pick up," said Eric Langan, CEO of Rick's Cabaret. "Margins are also better because of improved inventory management and food service efficiencies. We appear to be near the end of the continuing shakeout in our Internet business as part of our planned withdrawal from subscription-based activities that require expensive marketing programs. The Internet product line should improve as we place more focus on auction sites, which have low marketing costs and earn revenue on a per-transaction basis."

Same-location-same-period club revenues increased to $3,535,460 for the three months ended December 31, 2003 from $3,397,486 for same period a year earlier. Net income for same-location-same-period increased by 19.53% to $631,881 for the three months ended December 31, 2003 compared with $528,637 for same period a year earlier.

"We believe our club operations can continue to grow organically and through careful entry into markets and demographic segments with high growth potential," said Mr. Langan. "We continually research opportunities to open or acquire new clubs in locations receptive to our upscale club formula, or to form joint ventures or partnerships to reduce start-up and operating costs. We may also develop new club concepts consistent with our management and marketing skills.
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RICK'S CABARET INTERNATIONAL OPERATING RESULTS
Period Ending December 31, 2003
  3 Months Ended December 31, 2003
  2003 2002
Revenues $3,852,033 $3,729,386
Net Income 239,256 94,674
  ========= =========
Per Share .06 .03
Weighted average shares outstanding 3,700,148 3,758,515
  ========= =========


About Rick's Cabaret
Rick's Cabaret International, Inc. (www.ricks.com) owns and operates upscale adult nightclubs serving primarily businessmen and professionals that offer live adult entertainment, restaurant and bar operations. The company owns and operates seven adult nightclubs under the name "Rick's Cabaret" and "XTC" in Houston, Austin and San Antonio, Texas, and Minneapolis, Minnesota, licenses Rick's Cabaret in New Orleans, and owns an adult-themed club called "Encounters" that serves the couples or "swingers" market and a sports bar called the "Hummers," both in Houston. No sexual contact is permitted at any of these locations. Rick's Cabaret also owns two adult Internet membership Web sites at www.couplestouch.com and www.xxxpassword.com that contain content acquired from wholesalers, and a network of nine online auction sites a under the flagship site www.naughtybids.com. These highly automated sites provide a sales platform for adult products and services in an auction format and generate revenues through transactional service fees. Rick's Cabaret common stock is traded on the NASDAQ Small Cap market under the symbol RICK. For further information contact ir@ricks.com.


Forward-Looking Statements:

This press release may contain forward-looking information within the meaning of Section 21E of the Securities Exchange Act of 1934 that involves significant risks and uncertainties, and is subject to the safe harbors created by this section. Important factors that could cause actual results for Rick's Cabaret 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 and economic factors, dependence on key personnel and the ability to manage operations. Rick's Cabaret has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. Please refer you to the documents Rick's Cabaret files from time to time with the Securities and Exchange Commission, in particular the most recent quarterly reports on Form 10-QSB and annual report on Form 10-KSB.


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