Rick's Cabaret International, Inc. Reports Net Income of $1,031,727 for Third Quarter, Up 62 Percent Over 2006

Rick's Cabaret International, Inc., operator of upscale gentlemen's clubs, today reported net income of $1,031,727 for its third quarter ending June 30, 2007, an increase of 62 percent over the $635,857 reported for the three months ended June 30, 2006. Net income per basic share was 17 cents, compared with 13 cents in the previous year.

Income before income taxes for same-location-same-period of nightclub operations increased 42 percent to $1,901,468 in the third quarter this year, from $1,338,462 for same period last year.

Rick's Cabaret had consolidated total revenues of $8,446,351 for the quarter, compared to consolidated total revenues of $6,251,181 for the three months ended June 30, 2006, an increase of 35 percent that was primarily attributable to $1,601,224 generated by new nightclubs in San Antonio, Austin, and Fort Worth, Texas and an increase of $599,399 from other locations. Total revenues for same-location-same-period of club operations increased just over 10 percent. The company reported a 2.77 percent decrease in internet revenues to $191,553.

'We are very pleased with the results for our third quarter,' said Eric Langan, President and CEO of the company. 'Revenues from the newly acquired locations are beginning to make the contributions we had anticipated and our existing nightclubs are also growing steadily.'

Interest expense for the period was $345,130 compared to $267,059 for the three months ended June 30, 2006, due primarily to new debt to finance the purchase and renovation of the new clubs. As of June 30, 2007, the balance of long-term debt including current maturities was $14,895,002 compared to $12,316,144 a year earlier.

Cash flows from operating activities during the first three quarters were $2,652,237, a 52 percent increase compared with the $1,747,107 generated during the period in 2006.

         RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES

                CONSOLIDATED STATEMENTS OF OPERATIONS



                         FOR THE THREE MONTHS    FOR THE NINE MONTHS

                            ENDED JUNE 30,         ENDED JUNE 30,



                               2007       2006        2007        2006

                              (UNAUDITED)            (UNAUDITED)

Revenues:

   Sales of alcoholic

    beverages            $3,254,244 $2,214,651 $ 8,661,248 $6 ,600,135

   Sales of food and

    merchandise             869,853    679,049   2,302,568   1,995,048

   Service revenues       3,864,108  2,931,801  10,753,923   8,367,721

   Internet revenues        191,553    196,948     557,033     609,857

   Other                    266,593    228,732     770,925     577,673

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

     Total revenues       8,446,351  6,251,181  23,045,697  18,150,434



Operating expenses:

   Cost of goods sold     1,077,984    715,949   2,931,620   2,170,481

   Salaries and wages     2,238,630  1,776,181   6,465,822   5,124,704

   Stock compensation        48,134         --     178,846          --

   Other general and

    administrative:

     Taxes and permits    1,088,917    763,337   2,943,189   2,238,103

     Charge card fees       157,932    140,115     439,440     346,425

     Rent                   388,702    261,863   1,137,974     855,440

     Legal and

      professional          279,339    256,938     766,615     592,885

     Advertising and

      marketing             297,494    285,171     981,290     891,721

     Insurance              192,225    104,726     501,490     273,100

     Utilities              189,562    157,574     560,063     437,281

     Depreciation and

      amortization          410,507    258,409   1,161,535     726,679

     Other                  765,146    635,868   2,352,315   1,850,914

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

     Total operating

      expenses            7,134,572  5,356,131  20,420,199  15,507,733

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

Income from operations    1,311,779    895,050   2,625,498   2,642,701



Other income (expense):

   Interest income           28,940      5,316      41,994      20,702

   Interest expense       (345,130)  (267,059)   (999,146)   (801,581)

   Minority interests       120,997      2,550     293,204       1,206

   Other                         --         --          --       4,354

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

     Income before income

      taxes               1,116,586    635,857   1,961,550   1,867,382

Deferred income taxes        84,859         --      84,859          --

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

     Net income          $1,031,727 $  635,857 $ 1,876,691 $ 1,867,382

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



Basic and diluted

 earnings per share:

 Net income, basic       $     0.17 $     0.13 $      0.34 $      0.41

 Net income, diluted     $     0.16 $     0.12 $      0.32 $      0.38

Weighted average number

 of common shares

 outstanding:

     Basic                6,112,678  4,835,502   5,539,923   4,521,600

     Diluted              6,789,647  5,752,084   6,044,398   5,211,700

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