RCI Announces Acquisition of Heartbreakers Adult Nightclub

HOUSTON, October 27, 2022 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced closing on the acquisition of the Heartbreakers Gentlemen's Club, and its associated real estate.

Eric Langan, RCI President & CEO, said: “Established in 1986, Heartbreakers is the number one adult entertainment venue in the Galveston, Texas, area. It is our first club acquisition of Fiscal 2023 and the 53rd club in our portfolio.”

Dean Reardon, RCI Management Vice President of Operations, said: “Heartbreakers enjoys a loyal following among its guests and entertainers. It has a high-energy, exciting atmosphere; serves liquor and food; and fits well with our other brands in Texas.”

RCI subsidiaries acquired the 5-stage, 23,000 square-foot Heartbreakers club and property at 3200 Gulf Freeway, Dickinson, TX, for $4.0 million in cash and $5.0 million in a 15-year, 6% real estate seller financing note.

About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) www.rcihospitality.com

With more than 60 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas-Fort Worth, Houston, Miami, Minneapolis, Denver, St. Louis, Charlotte, Pittsburgh, Raleigh, Louisville, and other markets operate under brand names such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars Club, Tootsie's Cabaret, Scarlett's Cabaret, Diamond Cabaret, PT's Showclub, and Cheetah Gentlemen's Club. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar.

Forward-Looking Statements

This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) the impact of the COVID-19 pandemic, and (vii) numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2021, as well as its other filings with the U.S. Securities and Exchange Commission. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

Media & Investor Contacts

Gary Fishman and Steven Anreder at 212-532-3232 or gary.fishman@anreder.com and steven.anreder@anreder.com