(HOUSTON, TX) -- Rick's Cabaret International Inc. (Nasdaq:RICK - news) today announced that it sold its first copy of DormChat, the custom-written chat software for www.dancerdorm.com.

The software was sold to www.citysoap.com. The purchase of the software allows CitySoap.com to use the chat software on its new Web site that will broadcast a live soap opera from an apartment in New York.

The purchase price of the software was $20,000. The purchase price included installation and the right to use the software in its current form for an indefinite period but granted no right to source code.

Eric Langan, president and CEO of Rick's, stated, ``The sale of DormChat will be an additional revenue stream for Rick's Internet operations this quarter. This sale proves that there is a definite business need for a chat package designed for Web sites with a ''one-to-many`` chat format. Currently all available chat packages are designed as ''many-to-many`` packages that lack the specific features needed to support the new business model of Web sites offering chat with specific persons. We intend to further refine and improve upon the chat software to increase its marketability.''

DormChat was written by Rick's programmers for its DancerDorm Web site. The lack of any commercial chat software designed for a ``one-to-many'' chat was the reason for its development. DormChat introduces unique features specific to a ``one-to-many'' format where it is expected that all the users in chat are primarily chatting with only one other person, a focus person. The focus person is usually a celebrity or expert that all others are primarily there to chat with.

Rick's Cabaret International Inc. opened its first ``Rick's Cabaret'' in Houston, Texas, 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.smutdog.com. Rick's also owns and operates three Rick's Cabaret locations, two 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.

Other companies in the adult entertainment industry include Playboy Enterprises Inc., New Frontier Media 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, the continued existence of acceptable forms of payment for e-commerce 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.