Rick's International Inc. Opens New Subsidiary RCI Debit Services Inc.

Business Editors/Entertainment Writers

HOUSTON--(BUSINESS WIRE)--Aug. 9, 2000

Rick's Cabaret International Inc. (Nasdaq:RICK) announced today that it has created a new subsidiary named RCI Debit Services Inc.

RCI Debit Services Inc. will bring a new revenue stream to Rick's with its prepaid Internet debit card. The debit card will allow consumers to anonymously purchase access to adult Web sites without the need to use a credit card or checking account.

With Rick's adult debit card no banking or personal information is required to purchase memberships to premier adult sites. RCI Debit Services will offer adult webmasters the opportunity to accept the debit card as a form of payment for memberships. This will increase the exposure for participating sites at the retail level. A consumer will purchase the debit card and then visit www.porndebit.com to see a list of participating sites that accept the card as a form of payment. The webmaster will be paid a percentage of the signup fee. Accepting the debit card as a form of payment will eliminate the ever-increasing problem of maintaining chargeback ratios for webmasters. Because the card is prepaid, the webmaster will be guaranteed payment in full without worrying about chargebacks.

RCI Debit Services plans to distribute the card through adult oriented retail outlets across the country. The retail outlets targeted include adult novelty stores, convenience stores, adult cabarets and adult video stores. The debit card is a point of sale activated product and can be recharged at participating retail outlets. Point of sale cards will be activated at the register by swiping the card through a terminal similar to credit card swipe terminals. In addition, vending machines will dispense pre-charged cards with a $20 value. Retailers and distributors will be paid a portion of the revenue generated by the sale of the cards.

RCI Debit Services has hired Mr. Dominik Hussl as the product manager for the adult debit card. For the past three years Mr. Hussl has been the vice president of operations for a prepaid phone card company. His experience in the prepaid phone card industry includes marketing, distributing and operations for 12,000 retail outlets nationwide.

Mr. Hussl stated, "This adult debit card is a new and innovative product that will give the consumer the option to remain anonymous and safe while purchasing adult entertainment on the Internet. This program is unique because it allows any webmaster to accept the card as a form of payment and will give the consumer an ever-growing selection of sites that accept the card."

Rick's Cabaret International Inc. opened its first "Rick's Cabaret" in Houston in 1983 and went public with its IPO in 1995, making Rick's the world's first publicly traded topless entertainment business. Rick's owns and operates premier adult entertainment Internet Web sites, such as www.DancerDorm.com and www.xxxpassword.com. Rick's also owns and/or operates four Rick's Cabaret locations, three of which are in Houston and one of which is in Minneapolis. Rick's also owns and operates two XTC Cabarets, which are located in San Antonio and Austin, through its 93% owned subsidiary, Taurus Entertainment Companies Inc. Rick's and its subsidiaries own all the real estate properties where their cabarets and Internet production studio are located except its south Houston location, which is leased.

Other companies in the adult entertainment industry include New Frontier Media Inc., Playboy Enterprises Inc. and Private Media Group

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.

For further information, contact Eric Langan, president of Rick's, at 281/820-1181, email [e-mail], or Larry Howell, The Howell Group, at 214/368-1592, email [e-mail]