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April 13, 2005 03:00am
Rick's Not Affected by NYC Ruling
Source: Rick's Cabaret International, Inc.
by: Company Press Release

(HOUSTON, TX) -- Rick's Cabaret International, Inc. said today its soon-to-open gentlemen's club in New York City would not be affected by an appellate court zoning ordinance ruling that may allow the city to close down certain topless bars and adult video stores.

Luke C. Lirot, an attorney representing Rick's Cabaret, issued the following statement: "The new Rick's Cabaret-NYC night club at 50 West 33rd Street is covered under a 'grandfather' agreement dating back to 1995 under which New York City zoning regulations pertaining to the location of adult establishments do not apply to certain locations. The Rick's Cabaret-NYC club location has permits for 100 percent adult use and does not fall under the disputed ordinance that requires some establishments to limit adult content to just 40 percent. The company is proceeding with renovations to the building and expect them to be completed in time for the club to open this summer. The club, which is near Madison Square Garden and Penn Station (it formerly housed the Paradise Club) is fully compliant with all relevant city and state regulations."

On Tuesday, the New York State Appellate Division found the strict new zoning regulations in New York City against adult establishments is constitutional. The decision may permit the city to close more than 100 strip clubs video stores and other adult establishments that fall within the so-called 60-40 rule, which allowed some clubs and adult shops to remain open as long as only 40 percent of their premises were for adult use. The appellate decision overturned a ruling by state Supreme Court Justice Louis York that held that the New York City law was unconstitutional. On Wednesday, the state Supreme Court granted a two-week stay of the Appellate Division ruling so that lawyers for the adult businesses can seek permission to take the case to the state's highest court, the Court of Appeals.

About Rick's Cabaret Rick's Cabaret International, Inc. (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, CouplesTouch.com, and a network of nine online auction sites for adult products under the flagship URL 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, Ricks.com.

Contact for further information:
Allan Priaulx, 212-338-0050, IR@Ricks.com

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