49 States Approve RCI's Bombshells Sports Bar Franchise

HOUSTON—March 7, 2016—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) announced approval has been received to offer Bombshells Restaurant & Bar franchises in 49 states, with only Connecticut pending.

RCI also announced that its BMB Franchising Services subsidiary has launched a promotional website (www.bombshellsfranchise.com) to begin marketing the concept.

“This completes the first two phases in the franchising process,” said Eric Langan, RCI President & CEO. “First we proved the concept. Then we successfully registered the franchise. Now we are initiating the marketing.”

Bombshells is the first military-themed chain in the sports bar/casual dining segment. It comes alive through its hangar-like design, attractive Bombshell Girls wearing their military inspired uniforms, full bar, scratch kitchen, big flat screen TVs, live music, huge patio and energetic atmosphere. Attracting singles, couples, and families, Bombshells does a strong lunch, dinner and late night business.

The first Bombshells opened in 2013 in Dallas, becoming one of the most popular destinations in the area. Four more followed in Houston and Austin. For RCI’s most recent fiscal year, the five units reported total revenues of more than $19 million. Based on Bombshells’ success, RCI formed BMB Franchising Services to develop the concept into a nationwide franchise.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)

With 43 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in gentlemen clubs and sports bars/restaurants. Adult clubs in New York City, Miami, Philadelphia, Charlotte, Dallas/Ft. Worth, Houston, Minneapolis, Indianapolis and other cities operate under brand names, such as “Rick's Cabaret,” “XTC,” “Club Onyx,” “Vivid Cabaret,” “Jaguars” and “Tootsie’s Cabaret.” Sports bars/restaurants operate under the brand name “Bombshells.” Please visit http://www.rcihospitality.com

Forward-Looking Statements

This press release may contain 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 press release, including the risks and uncertainties associated with operating and managing an adult business, the business climates in cities where it operates, the success or lack thereof in launching and building the company’s businesses, risks and uncertainties related to the operational and financial results of its 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. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Note

This press release is for general information only and is not intended as an offer to sell or the solicitation of an offer to buy a franchise. Certain jurisdictions regulate the offer and sale of franchises. If the offer or sale is regulated by any of these jurisdictions, we will not offer or sell you a franchise unless and until we have complied with all applicable requirements.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com