Rick's Cabaret Internet, Inc. Reports Net Income of $62,078 for Second Quarter; NYC Club Rennovation on Schedule

HOUSTON--(May 20, 2005)--Rick's Cabaret International, Inc. [RICK:NASDAQ] today reported net income of $62,078 or two cents per share for the second quarter ended March 31, on consolidated total revenues of $3,443,390. The results were impacted by the absence of about $170,000 in revenue attributed to last year's Super Bowl, when club business boomed because the Super Bowl was held in Houston in 2004. The company also announced that renovations to a newly acquired club in New York City are on schedule and the club is expected to open for business this summer.

The second quarter results compare to net income for the three months ended March 31, 2004 of $368,254, or 10 cents per share, on total revenues of $3,699,055. In addition to the impact of the one-time effect of the Super Bowl last year, income was lower due to increased operating expense to manage two new locations in New York and Charlotte, NC, and higher interest expense related to the acquisition of the New York club. The company also incurred a loss of $66,825 from discontinued operations from the sale of Rick's Cabaret South in Houston, which was more than offset by a gain of $291,987 on the sale.

Eric Langan, CEO of Rick's Cabaret, said: "The remodeling of our midtown New York City club is proceeding on schedule and we plan to open for business this summer. Additional interest and other related expense associated with the launch will impact our earnings until then, but our revenue and income should bounce back as soon as we have cash flow from New York. When we open, Rick's Cabaret-NYC will be the premier gentlemen's club in Manhattan and it should be quickly accretive to earnings."

RICK'S CABARET INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS          FOR THE SIX MONTHS
ENDED MARCH 31,2005               ENDED MARCH 31,2004
(UNAUDITED)                               (UNAUDITED)

Continuing Operations:

Revenues

Sales of alcoholic beverages
                   $1,192,768        $1,539,493          $2,403,044       $3,059,438

Sales of food and merchandise
                       413,996            395,605              791,098            759,324

Service revenues
                     1,586,890         1,437,044            3,092,841         2,719,850

Internet revenues
                        180,729           202,678               367,960           403,422

Other
                         69,007            124,235               120,657           183,806

Total revenues
                     3,443,390          3,699,055            6,775,600         7,125,840
                   -------------     -------------      -------------      -------------

Operating expenses

Cost of goods sold     448,165          441,026           845,935             874,784

Salaries and wages   1,203,595      1,227,837          2,411,544         2,384,172

Other general and administrative

Taxes & permits    477,037              523,556             921,627          978,604

Charge card fees   55,609                57,399              115,296          118,876

Rent                   105,875               84,431              177,823          158,802

Legal and professional
                         178,753               140,052             346,079          275,908
Advertising and marketing   
                         215,796              200,575              357,602          370,619

Depreciation and amortization     
                         140,453              130,493              267,242          247,352

Other                 618,081              479,884             1,177,199         999,687

Total operating expenses                
                       3,443,364           3,285,253           6,620,347        6,408,804
                    -------------     -------------      -------------     -------------

Income from continuing operations

                                    26            413,802           155,253           717,036

Other income (expense):

Interest income          11,556             9,060             20,745            14,815

Interest expense      (167,835)         (78,371)         (256,949)         (159,323)

Gain from sale of marketable securities     16,878     16,878
Minority interests       (6,877)             1,020            (6,414)              10,546

Other                           46              (5,171)             (734)              (2,523)

Net income (loss) from continuing operations     
                            (163,084)          357,218           (88,099)          597,429

Discontinued operations:

Income (loss) from discontinued operations
                            (66,825)            11,036            (148,294)         10,083

Gain on sale of discontinued operations      291,987      291,987

Net income              $62,078           $368,254          $55,594          $607,512
                           =========     =========     =========     =========

Basic and diluted earnings per share:

Income (loss) from continuing operations     $(0.04)      $0.10      $(0.02)      $0.16

Income from discontinued operations      0.06     0.00     0.04     0.00

Net income, basic        $0.02              $0.10             $0.02              $0.16
                           =========     =========     =========     =========

Net income, diluted      $0.02              $0.10             $0.01              $0.06
                           =========     =========     =========     =========

Weighted average number of common shares outstanding

Basic     3,782,481     3,700,148     3,741,315     3,700,148
Diluted     3,964,987     3,700,148     3,923,821     3,700,148

Comprehensive income for the six months ended March 31, 2005 and 2004 were ($22,265) and $644,970, respectively. This includes the changes in available-for-sale securities and net income.

About Rick's Cabaret
Rick's Cabaret International, Inc. (RICK:NASDAQ, 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, operates or licenses adult nightclubs in New York City, New Orleans, Houston, Minneapolis 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 an 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 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, conditions relevant to real estate transactions, 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 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, which are available at the Company's website, www.ricks.com.

Contact for further information: Allan Priaulx, 212-338-0050, ir@ricks.com