April 18, 2002 11:06am
Rick's Cabaret International Acquires Auction Site EroticBid.com
Source: Rick's Cabaret International
by: Company Press Release
(HOUSTON, TX) -- Rick's Cabaret International, Inc. [Nasdaq: Rick] said today it has completed its acquisition of site EroticBid.com, a leading online adult auction that will become part of the company's NaughtyBids.com auction network.
Eroticbid.com is the auction site of choice for porn stars who sell items of clothing they've used in their performances, props from their films and other personal items, according to Daniel Adams, co-founder of EroticBid.com. The site received widespread media attention for past auctions and was featured on television and radio programs including "The Howard Stern Show" and "Opie and Anthony." Items owned by the well-known performer Houston are offered frequently and sell at prices ranging into the thousands of dollars. NaughtyBids.com hopes to feature future exclusive items from Houston such as the infamous racing outfit she wore for her top-selling video, the Houston 500, and the gown she donned for the 2002 AVN Adult Video Awards. Other offerings on the site include an entire adult Website www.hot4sex.com, with bidding above $7,500.
Eric Langan, CEO of Rick's Cabaret, said "EroticBid is our seventh auction site and it should have an immediate positive impact on revenue and earnings in this part of our business. Auctions are attractive to us because they require very low overhead and generate high margin returns." Rick's Cabaret has completed over 500,000 auction transactions in the past year with a proprietary bid and ask system. The company does not inventory any goods but generates revenues through transaction fees for successfully completed, self-generated auctions. Sellers of goods fulfill all product sales.
About Rick's Cabaret: Rick's Cabaret is organized into two business lines: 1) Nightclubs and entertainment, comprising four Rick's Cabaret clubs in Houston and Minneapolis, two XTC Clubs in San Antonio and Austin, and the Encounters club in Houston catering to couples in the swingers' lifestyle and, 2) Internet activities, which encompass adult entertainment sites such as the www.xxxpassword.com membership portal that provides access to 127,000 adult oriented Websites, and the www.naughtybids.com network of adult auction sites earn revenue from commissions on auctions of adult paraphernalia and on Webmaster referral fees.
Forward-Looking Statements: 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 the future operational and financial results of our Web sites, the future operational performance of our partners, 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.
Contacts: Media: Sarah Perkins, 212-338-0050
Investors: Allan Priaulx, 212-338-0050, ir@ricks.com
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