Rick's Cabaret International Inc. Earns 16 Cents Per Share In Second Quarter Ended March 31, 2006


CEO Eric Langan Will Discuss Results in Conference Call Today at 4:30 p.m. EDT



HOUSTON-
(May 15, 2006)- Rick's Cabaret International, Inc. [NASDAQ:RICK], operator of upscale gentlemen's clubs,reported net income of $706,070 for its second quarter compared with $62,078 in the same period last year. Basic earnings per share were 16 cents for the quarter, compared with two cents in the year earlier.

"The significant increase in revenue and earnings was a result of the contribution of our new clubs in New York City and Charlotte, plus sales growth in our existing clubs and in internet revenues," said Eric Langan, President and CEO of Rick's Cabaret. He noted that the company also benefited from the NBA All Star Game in Houston in February, which increased sales at the company's four Houston nightclubs.

The company reported total revenues for the second quarter of $6,119,516, compared with $3,443,390 last year. Alcoholic beverage sales increased to $2,215,489 from $1,192,768 last year; service revenues were $2,841,119 compared with $1,586,890 last year while sales of food and merchandise were $677,275 compared with $413,996.

For the first half of the 2006 fiscal year ended March 31st the company reported total revenues of $11,899,253 compared with $6,775,600 last year. Net income for the first two quarters was $1,231,526, compared with $55,594 during the same period last year. Basic earnings per share for the first half were 28 cents, compared with two cents in the same period last year.

Mr. Langan will discuss the results in a conference call/webcast later today. The conference call is scheduled to begin at 4:30 p.m. EDT to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. The call is being webcast by Vcall (www.InvestorCalendar.com) and can also be accessed at the Rick’s Cabaret website (www.ricks.com). Toll free live participant dial in number in the U.S. is 877-407-8031; international callers should dial 201-689-8031. Mr. Langan is also hosting a "Due Diligence Ball" tonight for financial industry professionals at the company's New York City nightclub (50 West 33rd St.). Admission is free and all drinks are $7.

RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

                                                                                                                   FOR THE    THREE MONTHS                      FOR THE SIX MONTHS

                                                                                                                   ENDED MARCH 31,                                            ENDED MARCH 31,

                                                                                                                           2006                         2005                          2006                          2005

                                                                                                                                    (UNAUDITED)                                      (UNAUDITED)

Continuing Operations:

Revenues:

  Sales of alcoholic beverages                               $   2,215,489       $  1,192,768       $  4,385,484      $   2,403,044

  Sales of food and merchandise                                   677,275             413,996          1,315,999             791,098

  Service revenues                                                   2,841,119          1,586,890          5,435,920          3,092,841

  Internet revenues                                                     203,751             180,729             412,909             367,960

  Other                                                                    181,882               69,007            348,941             120,657

       Total revenues                                                 6,119,516          3,443,390         11,899,253          6,775,600

Operating expenses:

  Cost of goods sold                                                  745,295             448,165          1,454,533             845,935

  Salaries and wages                                                1,678,813          1,203,595          3,348,524          2,411,544

  Other general and administrative:

      Taxes and permits                                               779,450             477,037          1,474,765             921,627

      Charge card fees                                                  104,074               55,609             206,310             115,296

      Rent                                                                 296,732             105,875             593,578             177,823

      Legal and professional                                          185,288             178,753             335,946             346,079

      Advertising and marketing                                    315,882             215,796             606,550             357,602

      Depreciation and amortization                                235,788             140,453             468,269             267,242

      Other                                                                814,713             618,081          1,663,127          1,177,199

       Total operating expenses                                   5,156,035          3,443,364         10,151,602          6,620,347

                                                                            -------------           -------------           -------------           -------------

Income from continuing operations                               963,481                     26          1,747,651             155,253

 

Other income (expense):

  Interest income                                                           8,950               11,556               15,386               20,745

  Interest expense                                                     (271,469)           (167,835)           (534,521)           (256,949)

  Minority interests                                                     (2,731)              (6,877)              (1,344)              (6,414)

  Other                                                                       7,839                     46                4,354                 (734)

Net income (loss) from continuing

  operations                                                              706,070           (163,084)          1,231,526             (88,099)

 

Discontinued operations:

  Loss from discontinued operations                                     ---             (66,825)                     ---           (148,294)

  Gain on sale of subsidiary                                                 ---             291,987                     ---             291,987

      Net income                                                  $     706,070     $        62,078       $  1,231,526     $        55,594

                                                                       =========      =========      =========      =========

Basic and diluted earnings (loss) per share:

 Income (loss) from continuing operations              $           0.16     $         (0.04)     $           0.28     $         (0.02)

 Income from discontinued operations                                   ---                  0.06                     ---                  0.04

 Net income, basic                                             $           0.16     $           0.02     $           0.28     $           0.02 

                                                                       =========     =========    ==========      =========

 Net income, diluted                                          $           0.14     $           0.02     $           0.26     $           0.01

                                                                       =========      =========    ==========      =========

Weighted average number of common

  shares outstanding:

       Basic                                                                                                4,408,237                 3,782,481                 4,364,649                 3,741,315

                                                                                                               =========              =========              =========              =========

       Diluted                                                                                            5,347,386                 3,964,987                 4,973,583                 3,923,821

                                                                                                               =========              =========              =========              =========

Comprehensive income (loss) for the three months ended March 31, 2006 and 2005 were $728,315 and $28,710, and for the six months were $1,253,771 and ($22,265), respectively.  This includes the changes in available-for-sale securities and net income (loss).

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, operates or licenses adult nightclubs in New York City, New Orleans, Houston, Minneapolis, Charlotte and other cities under the names "Rick's Cabaret," "XTC," "Club Onyx" and "Hummers." 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 nine online auction sites for adult products under the flagship URL www.naughtybids.com. Rick's Cabaret common stock is traded on the NASDAQ SmallCap market under the symbol RICK. For further information contact ir@ricks.com.

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, 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, ir@ricks.com