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International Guild of Hospitality & Restaurant Managers

Rick's Cabaret International, Inc.

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505 North Belt, Suite 630
Houston , TX 77060

Phone: (281) 820-1181
Fax: (281) 820-1445

www.ricks.com  

Rick's Cabaret International, Inc. owns and operates adult nightclubs under the names Rick's Cabaret and XTC that offer live adult entertainment, restaurant and bar operations. The Company owns and operates six adult nightclubs in Houston , Austin and San Antonio , Texas , and Minneapolis , Minnesota . The Company also opened an all-adult "couples" nightclub in Houston called Encounters, which is a club for adult couples who enjoy the swingers' lifestyle. Rick's also owns and/or operates adult entertainment Internet Websites in two categories, online entertainment and online auctions of adult products and erotica.

The Company's online entertainment sites are www.dancerdorm.com, www.amateurdan.com, and www.xxxpassword.com. DancerDorm.com featured exclusive live adult entertainment. The exclusive live activities were discontinued in 2001, and currently all live content for this site is licensed from third parties. Amateurdan.com features exclusive adult photo entertainment. XXXpassword features adult content licensed through Voice Media Inc. The Company acquires most of its Internet content from third parties.

The Company's online adult auction Websites are www.naughtybids.com, www.pornauction.com, www.xxxauctionville.com, www.xxxbids.com, www.xxxgayauction.com and www.allgayauction.com. These Websites contain consumer-initiated auctions for items such as adult videos, apparel, photo sets, adult paraphernalia and other erotica. These Websites use the Company's proprietary auction system that provides a common technology platform. There are typically more than 10,000 active auctions at these sites at any given time. The Company charges the seller a fee for each successful auction.

The Company has three Rick's Cabaret locations in Houston , Texas and one Rick's Cabaret in Minneapolis , Minnesota . The Company also owns one nightclub in San Antonio , Texas , that operates under the name XTC. The Company's 93%-owned subsidiary, Taurus, owns a nightclub in Austin , Texas , also under the name XTC.

Rick's sold its New Orleans nightclub in March 1999, but it continues to use the Company's name under a licensing agreement. In July 2000, the Company sold a facility in south Houston . The Company is continually exploring expansion opportunities to open or acquire more nightclubs in strategically valuable locations in the United States .

In October 1999, the Company began adult Internet Website operations. Dancerdorm.com featured live Web cam feeds and interactive online "chat and look" experience for members to chat with dancers. Members pay a monthly fee to visit Dancerdorm.com. Amateurdan.com is also a pay site that features exclusive photos of provocative poses and activities. The www.xxxpassword.com Website features adult content licensed through Voice Media, Inc.

The Company's e-commerce program includes efforts to direct Internet traffic to its Websites. Internet traffic is generated through the purchase of traffic from third-party adult Websites or Internet domain owners and the purchase of banner advertisements or "key word" searches from Internet search engines.

During the fiscal year ended September 2001, the Company began acquiring and developing a network of Websites designed to meet a growing need by Internet users for auction sites where erotica and other adult materials could be purchased in a bid-ask method. The Company's Websites contain new and used adult-oriented consumer initiated auctions for items such as adult videos, apparel, photo sets and adult paraphernalia. The Company also developed software and other technology to create a single platform serving its six separate sites. NaughtyBids.com and related sites offer Webmasters an opportunity to create residual income from Web surfers through the NaughtyBids Affiliate Program, which pays other Webmasters a percentage of every closing auction sale in which the buyer originally came from the affiliate Webmaster's site. In April 2002, the Company acquired EroticBid.com, an online adult auction that will become part of the Company's NaughtyBids.com auction network.

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Disclaimer:
The data included within the Financial section is solely for information  and does not construe a recommendation and/or endorsement by IGHRM or its members to invest funds with any of the companies listed. You are strongly urged to obtain professional advice with qualified individuals or corporations for any investments of funds.