RCI Announces Acquisition of Adult Nightclub in Odessa, TX

HOUSTON, July 22, 2022 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced closing on purchase agreements that will enable subsidiaries to open a third adult nightclub in Ector County, TX, right off busy State Highway Loop 338.

Dean Reardon, Vice President of Operations of RCI Management, said: “The new club will be branded as a PT's Showclub. It will offer quality adult entertainment with liquor service. We believe it will both complement and appeal to markets different from our other brands in the area—Rick's Cabaret Odessa and Jaguar's Club Odessa.”

Eric Langan, RCI President & CEO, said: “The new club will be the 14th location acquired this fiscal year and the 51st club in our portfolio, and should begin contributing to results by the end of September. Price paid was $1.8 million in cash and seller financing for the club's assets, including all necessary licenses, and for the 5,180 square foot building and one acre property located at 3306 NW Loop 338 in Odessa.”

RCI subsidiaries acquired the PT's brand when it purchased a group of 11 clubs in 6 states in October 2021. There are four other PT's clubs, two in Denver and one each in Indianapolis and Louisville.

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

With more than 50 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

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, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2021, as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts

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