Rick's Cabaret International Says Appellate Court Ruling On New York City Zoning Ordinance Does Not Apply To Its New Club
HOUSTON--(April 13, 2005)--Rick's Cabaret International
Inc., said today its soon-to-open gentlemen's club in New York
City would not be affected by an appellate court ruling that
may allow the city to close down certain topless bars and adult
video stores.
Luke
C. Lirot, an attorney representing Rick's Cabaret, issued the
following statement: "The new Rick's Cabaret-NYC night club
at 50 West 33rd Street is covered under a 'grandfather' agreement
dating back to 1995 under which New York City zoning regulations
pertaining to the location of adult establishments do not apply
to certain locations. The Rick's Cabaret-NYC club location has permits
for 100 percent adult use and does not fall under the disputed ordinance
that requires some establishments to limit adult content to just
40 percent. The company is proceeding with renovations to the building
and expect them to be completed in time for the club to open this
summer. The club, which is near Madison Square Garden and
Penn Station (it formerly housed the Paradise Club) is fully
compliant with all relevant city and state regulations."
On Tuesday, the New York State Appellate Division found the
strict new zoning regulations in New York City against adult establishments
is constitutional. The decision may permit the city to close more
than 100 strip clubs video stores and other adult establishments
that fall within the so-called 60-40 rule, which allowed some clubs
and adult shops to remain open as long as only 40 percent of their
premises were for adult use. The appellate decision overturned a
ruling by state Supreme Court Justice Louis York that held that
the New York City law was unconstitutional. On Wednesday, the state
Supreme Court granted a two-week stay of the Appellate Division
ruling so that lawyers for the adult businesses can seek permission
to take the case to the state's highest court, the Court of Appeals.
About
Rick's Cabaret
Rick's Cabaret International, Inc. (www.ricks.com)
owns and operates upscale adult nightclubs serving primarily businessmen
and professionals that offer live adult entertainment, restaurant
and bar operations. The company owns, operates or licenses adult
nightclubs in New York City, New Orleans, Houston, Minneapolis and
other cities under the names "Rick's Cabaret," "XTC," "Club Onyx"
and "Hummers." No sexual contact is permitted at any of these locations.
Rick's Cabaret also owns an adult Internet membership Web site,
www.couplestouch.com,
and a network of nine online auction sites for adult products under
the flagship URL www.naughtybids.com.
Rick's Cabaret common stock is traded on the NASDAQ SmallCap market
under the symbol RICK. For further information contact ir@ricks.com.
Forward-Looking Statements:
This press release may contain forward-looking information within
the meaning of Section 21E of the Securities Exchange Act of 1934
that involves significant risks and uncertainties, and is subject
to the safe harbors created by this section. Important factors that
could cause actual results for Rick's Cabaret to differ materially
from those indicated in this press release include the risks and
uncertainties as to the future operational and financial results
of our Web sites, conditions relevant to real estate transactions,
the future operational performance of our partners, the laws governing
the operation of adult entertainment businesses, competitive and
economic factors, dependence on key personnel and the ability to
manage operations. Rick's Cabaret has no obligation to update or
revise the forward-looking statements to reflect the occurrence
of future events or circumstances. Please refer to the documents
Rick's Cabaret files from time to time with the Securities and Exchange
Commission, in particular the most recent quarterly reports on Form
10-QSB and annual report on Form 10-KSB, which are available at
the Company's website, www.ricks.com.
Contact for further information: Allan Priaulx, 212-338-0050, ir@ricks.com