Rick's Cabaret International, Inc. Net Income for First Quarter 2008 Rises 405 Percent on Strong Revenue Increase, EPS Increases to 26 Cents

The company reported revenues for the quarter of $10,954,338, a 56 percent increase over the $7,030,129 reported in the first quarter of fiscal 2007, primarily attributable to increased sales of $3,034,106 at new clubs in Miami Gardens, Florida and Fort Worth, Texas, and increases of $907,292 at the New York City club and other locations.

Other highlights of the company's form 10 QSB filed with the SEC:

• Cash of $ 2,258,329 was provided by operating activities, compared with $711,820 in the same quarter a year ago, bringing cash at the end of the period to $5,033,300, compared with $1,462,535 a year ago.

• Total same club revenues increased to $7,541,210 for the three months ended December 31, 2007 from $6,670,991 for same period in 2006, a 13 percent rise.

• The cost of goods sold during the first quarter dropped to 12.25 percent of total revenues compared to 12.68 percent for the same quarter a year ago, due primarily to the decrease in cost of goods sold at our existing clubs.

• Apart from the benefit from the new clubs in Texas and Florida, income before income taxes, exclusive of corporate overhead, for same-location-same-period club operations increased to $2,164,923 from $1,172,574 for same period, or by 84.63 percent.

'The results of our first quarter demonstrate that our acquisition strategy is working exactly as planned, immediately adding both revenue and income,' said Eric Langan, President and CEO of Rick's Cabaret. 'In addition our organic growth is also strong and we plan to continue to pursue both the acquisition and organic growth strategies in the future.'



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