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SAFE HARBOR

SAFE HARBOR.

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SAFE HARBOR

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  1. SAFE HARBOR Certain statements contained in this presentation regarding Rick's Cabaret future operating results or performance or business plans or prospects and any other statements not constituting historical fact are "forward-looking statements" subject to the safe harbor created by the Private Securities Litigation Reform Act of 1995.  Where possible, the words "believe," "expect," "anticipate," "intent," "would," "will," "planned," "estimated," "potential," "goal," "outlook," and similar expressions, as they relate to the company or its management have been used to identify such forward-looking statements.  All forward-looking statements reflect only current beliefs and assumptions with respect to future business plans, prospects, decisions and results, and are based on information currently available to the Company.   Accordingly, the statements are subject to significant risks, uncertainties and contingencies, which could cause the Company‘s actual operating results, performance or business plans or prospects to differ materially from those expressed in, or implied by, these statements.  Such risks, uncertainties and contingencies include, but are not limited to, risks and uncertainties associated with (i) operating and managing an adult business, (ii) the business climates in cities where the company operates, (iii) the success or lack thereof in launching and building the company’s businesses, (iv) the operational and financial results of the company's adult nightclubs, (v) conditions relevant to real estate transactions, (vi) the loss of key personnel, and (vii) laws governing the operation of adult entertainment businesses.  Additional factors that could cause the Company’s results to differ materially from those described in the forward-looking statements are described in forms filed with the SEC from time to time and available at www.ricksinvestor.com or on the SEC's internet website at www.sec.gov. Unless required by law, Rick's Cabaret does not undertake any obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

  2. Definition of Adjusted EBITDA During this Conference Call you may hear us refer to Adjusted EBITDA. We consider Adjusted EBITDA to be a key metric to measure our performance. It is a financial statement measure that was not derived in accordance with GAAP. In calculating Adjusted EBITDA the company excludes the largest recurring non-cash charge, depreciation, amortization and impairment charges. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for Federal, state and local taxes, which have considerable variation between domestic jurisdictions.  Also, the company excludes interest cost in the calculation of Adjusted EBITDA. The results are, therefore, without consideration of financing alternatives of capital employed. The company uses Adjusted EBITDA as one guideline to assess unleveraged performance return on investments. Adjusted EBITDA is also the target benchmark for acquisitions of nightclubs.

  3. CONFERENCE CALL OVERVIEWAugust 9, 2012 Summary of Q3 Chief Drivers of Revenue, Earnings, EBITDA & Cash Flow Discussion of Joint-Venture and Jaguars Deal Outlook for Remainder of 2012 Q & A

  4. SNAPSHOT: Q3 ‘12 vs ‘11 Q3 ‘12 Revenue Rose 15% to $23.9 million vs $20.8 million in Q3 ‘11 Q3 ’12 Same Store Sales Rose 5% over Q3 ‘11, to $21.3 million Q3 ’12 Income from Continuing Ops (Without Legal Settlement and Loss on Sale of Assets) $2.2 million vs. $2.5 million in Q3 ’11

  5. … SNAPSHOT (Cont.) Q3 ’12 Adjusted EBITDA* $5.7 million (Without Legal Settlement or Loss on Sale of Assets), vs. $6.0 million in Q3 ‘11 Q3 ’12 Expenses Include One-Time Cost of $200k to Settle a Lawsuit and Loss on Sale of Assets of $332k Exclusive of Legal Settlement and Asset Sale, Operating Margins Were 19.1% vs. 21.1% in Previous Quarter

  6. NINE MONTHS SNAPSHOT • Revenues Rose 15% for First Nine Months 2012 to $71.4 million vs. $62.0 million in 2011 • Cash Flow from Operations for First Nine Months was $14.1 million vs. $13.8 million in 2011 • EPS for First Nine Months 63 cents vs. 59 cents

  7. Current Update Strong Growth at Our Biggest Club, Tootsie’s Cabaret in Miami Rick’s Cabaret at DFW Airport Continues to Build Club Onyx in Philly and Charlotte are Resuming Growth

  8. Current Debt 6/30/12 at $43.5 million, of which $27.5 million is Real Estate We Reduced Debt by $3.6 million in Three Months ended 6/30/12 Jaguars Transaction Will Add $32 million to Total Debt, $10 million of which is for Real Estate, Covered by Added Cash Flow DEBT UPDATE

  9. IMPACT OF JAGUARS DEAL • Jaguars Transaction Will Add 11 Clubs to Existing 24 Clubs • Should Add $15 million in Revenue and $7 million in Adjusted EBITDA • Should Be Quickly Integrated As Most Are in Texas, Where We Have Management Strength and Experience

  10. EXPLORING NEW CONCEPTS • Looking Closely at Two New “Breastaurant” Nightclub Concepts • Would Be in Markets such as Dallas-Ft. Worth Where We Are Already Strong • Plan to Invest Up to $4 million in Next Two Years • Will Also Look for Acquisition Candidates in “Breastaurant” Niche

  11. Forward Growth Strategy Focus on Smooth Integration of Jaguars Continue Emphasis on Organic Growth & Cash Generation Continue to Explore Acquisitions that Are Accretive to Profit and Shareholder Value Los Angeles Will be Operated by Our Joint Venture Partner Continue to Look for Joint Venture Partners With Right Groups to Enter Markets We Currently Do Not Serve

  12. Outlook • We Are Focused on Generating Positive Cash Flow • Goal is 30% Growth Rate for Next 3 Years • Reviewing Best Uses of $60 million+ Real Estate Value Currently Owned to Maximize Income Potential • Remain Highly Confident in Our Management & Our Business Model

  13. THANK YOU! Visit Rick’s Cabaret NYC Tonight for Additional Due Diligence 5O W. 33rd St. For more information please visitwww.ricksinvestor.com

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