(NASDAQ: RICK), the nation’s premier chain of upscale gentlemen’s
clubs, has converted $7.2 million in 10 percent convertible
debentures that were issued in August 2009.

The company sent a notice of redemption to all holders of the
debentures exercising its right to redeem the principal amount of the
debentures plus all accrued but unpaid interest.  Upon receipt of the
redemption notice all holders exercised their right to convert the
entire outstanding principal amount plus accrued but unpaid interest
of $176,000.

Accordingly Rick’s Cabaret today issued an aggregate of 842,972
shares of its common stock to the debenture holders. No cash payments
were made to the debenture holders in connection with the conversion.

“This conversion significantly reduces our long term debt,
strengthens our balance sheet and will save us over $700,000 a year
in interest expense,” said Eric Langan, President and CEO of Rick’s
Cabaret.