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Kayden Kross at Twistys

April 16, 2001 08:40am
Rick's Cabaret International Inc. to Expand Marketing Efforts of Adult Auction Site NaughtyBids.com
Source: Rick's Cabaret International Inc.
by: Company Press Release

(HOUSTON, TX) -- Rick's Cabaret International Inc. (Nasdaq:RICK - news) announced today that it will undertake aggressive new efforts to promote its adult auction site NaughtyBids.com due to the recent decision by Yahoo (Nasdaq:YHOO - news) to discontinue listings on Yahoo Auctions under the Adult & Erotica categories.

NaughtyBids.com was launched Feb. 8, 2001 to fill a void in the adult product online auction category. This void continues to grow as more users begin using the Internet and large auction sites such as eBay and Yahoo restrict or prohibit these items from their sites. NaughtyBids currently has thousands of items listed in over 40 adult categories.

Eric Langan, president and CEO of Rick's, stated, ``We intend to increase our marketing efforts in order to reach the users displaced by Yahoo's recent decision.'' Langan continued, ``Rick's is an adult entertainment company. We plan to continue to expand our adult Internet products and look forward to the increasing revenue from these operations. Revenues for the quarter ended Dec. 31, 2000 were approximately 40% of total revenues or a little over 2 million dollars.''

NaughtyBids offers Webmasters a unique opportunity to create residual income from Web surfers who leave the Webmasters site. The NaughtyBids affiliate program will pay other Webmasters a percentage of every closing auction price in which the buyer originally came from the affiliate Webmaster's site. Langan stated, ``This is a tremendous opportunity for other Webmasters. As long as they belong to our program they will continue to receive compensation for buyers they send to us.''

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.

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