"We own all the real estate that the company's clubs are locatedon, except the new location, which we leased," said Eric Langan,president and CEO. The deal for the new location had been completedonce all licenses and permits had been issued, although Rick'smanagement has been operating the club since May, pendingcompletion of the details.

The purchase price for the business calls for the issuance of160,000 restricted shares of Rick's common stock to WMF InvestmentsInc. and a 10-year lease agreement that grants Rick's an additional10-year option for the property and the building. Langan, presidentand CEO, said "we have been able to operate the new location at aprofit during the latest fiscal quarter and anticipate continuedearnings from this location. With the new location on Houston'ssouth side, we will have greater leverage of our advertisingdollars."

Langan told GlobeSt.com "we are currently looking to expand inseveral new cities and we always try to purchase the real estate orat least get an option to purchase it." Ft. Worth is the currenttarget. Rick's has entered into a three-year lease with an optionto purchase, provided all permits and licenses are issued. Ahearing on the permit is set for Dec. 4.