July 11, 2001 08:03am
Rick's Cabaret International Inc. Acquires Largest Gay Adult Internet Auction Site
Source: Rick's Cabaret International Inc.
by: Company Press Release
(HOUSTON, TX) -- Rick's Cabaret International Inc. announces today that it has completed the acquisition of its third adult Internet auction site with the purchase of xxxbids.com. This transaction is part of Rick's growth strategy for its Naughtybids.com adult auction site.
The site, xxxbids, is the largest gay adult Internet auction site at this time and will more then double the number of registered members that Naughtybids currently has. The acquisition included eight other adult auction styled domains.
Eric Langan, president and CEO of Rick's, commented, ``Five months ago we launched Naughtybids.com with the goal of becoming the ebay (Nasdaq:EBAY - news) of adult-item Internet auction sites. This third acquisition, along with our initial base of participants, now elevates Naughtybids.com to No. 2 in this market segment. Rick's has achieved this position with total direct expenditures of less than $150,000. Naughtybids.com is now second only to ebay's adult-item auction, based on the best information we can obtain.''
Mr. Langan continued, ``We are considering several other acquisitions in this area and, through our Webmaster program, are continuing to recruit former participants in the now-abandoned adult-item auction activities of Yahoo! (Nasdaq:YHOO - news). We intend to expand our presence in this profitable market and will continue to aggressively pursue further growth with the same determination as has been reflected by our activities in the past five months. We believe it has been a good investment with the potential to make an important contribution to the Company's overall results.''
This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause Rick's actual results to differ materially from those indicated in this press release include the risks and uncertainties as to whether the definitive documentation will ultimately be executed, the future operational and financial results of the newly acquired Web site, the future operational strength of Voice Media, the laws governing the operation of adult entertainment businesses, competitive factors, dependence on key personnel, and the ability to manage operations. Rick's has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
Rick's Cabaret International Inc., Houston
Eric Langan, 281/820-1181
The Howell Group, Dallas
Larry Howell, 214/368-1592