Q3 2008 Compared to Q3 2007
 *   Total Revenues increased 40% to $15.2 million
 *   Income from Operations of $3.8 million
 *   Net Income of $1.8 million, or $0.10 per fully diluted share
 *   EBITDA up 2% at $4.4 million
 *   Q3 2008 same store sales increased 9%

 First Nine Months 2008 Compared to First Nine Months 2007
 *   Total Revenues increased 61% to $43.2 million
 *   Income from Operations of $10.2 million
 *   Net Income of $4.6 million, or $0.25 per fully diluted share
 *   EBITDA up 31% to $11.4 million
 *   Year to date same store sales increased 10%

DENVER, Nov. 10, 2008 (GLOBE NEWSWIRE) -- VCG Holding Corp. (Nasdaq:VCGH), a growing and leading consolidator and operator of adult nightclubs, today announced financial results for the third quarter and nine months ended September 30, 2008 (see attached tables).

Troy Lowrie, Chairman and Chief Executive Officer, stated, "We are pleased with our results for the third quarter and first nine months of 2008. We experienced the third consecutive quarter of same store sales growth, and revenues for both the third quarter of 2008 and year to date were up 40% and 61%, respectively. We also saw increased operating cash flow for the first nine months of 2008, which attributes to our success with integrating high quality clubs we acquired since the third quarter of last year. Operating cash flow improved to $9.4 million for the nine months ended September 30, 2008, up $467,000 from the same period in 2007. Year to date free cash flow at September 30, 2008 was $5.7 million. Free cash flow for the quarter ended September 30, 2008 was $2.4 million."

Third Quarter 2008 Results

Net income and earnings per share for the third quarter of 2008 reflected an effective tax rate of 32.3% for the quarter and 32.9% for the year to date. The effective tax rate for the same three months in 2007 was 3.2%, due to the use of net operating loss carryforwards. EBITDA for the three months ended September 30, 2008 was $4.4 million, an increase of $77,000 or 2% from the same period in 2007.

Total revenue for the three months ended September 30, 2008 increased 40% to $15.2 million from $10.9 million for the same period in 2007. This is due primarily to the acquisitions of four new clubs after September 30, 2007. Same store sales in the third quarter of 2008 rose 3% over the second quarter in 2008 and 9% over the prior year.

Total operating expenses for the quarter ended September 30, 2008 increased to $11.4 million from $6.9 million for the same period in 2007. Those operating expenses primarily increased due to club acquisitions from the prior year. Salary and wages increased by $1.2 million or 58.4% because of more employees due to acquisition and an increase in the minimum wage for tipped employees, a majority of the Company's employee base. Legal and professional fees approximately increased by $753,000 over 2007 because of acquisitions costs, litigation charges and improvement of the financial infrastructure. Advertising and marketing increased for the quarter by $226,459 because of increased marketing of the new acquisitions in Texas and California. Other expenses included approximate increases of $125,000 in utilities due to increased energy costs, and $140,000 in repairs and maintenance to the clubs.

Income from operations for the three months ended September 30, 2008 was $3.8 million, and included expenses mentioned above, as compared to income from operations for the same period in 2007 of $4.0 million.

Net income for the three months ended September 30, 2008 (fully taxed at 32.3%) was $1.8 million, or $0.10 per fully diluted share, on approximately 18.4 million fully diluted shares outstanding, as compared to 2007 net income (taxed at 3.19%) of $3.1 million, or $0.19 per share, on approximately 17.0 million fully diluted shares outstanding for the same period in 2007. At a 32.3% effective tax rate, net income and earnings per share for the comparable period would have been $2.23 million and $0.13, respectively.

First Nine Months of 2008

Net income and earnings per share for the nine months of 2008 reflected an effective tax rate of 32.3% for the quarter and 32.9% for the year to date. The effective tax rate for the same period in 2007 was 3.2%, due to the use of net operating loss carryforwards. EBITDA for the nine months ended September 30, 2008 was $11.4 million, an increase of $2.7 million or 31% from the same period in 2007.

Total revenue for the nine months ended September 30, 2008 increased 61% to $43.2 million from $26.8 million for the same period in 2007. This is due primarily to the acquisitions of four new clubs after September 30, 2007. Same store sales for the first nine months of 2008 increased 10% over the same period 2007.

Year to date total operating expenses for the period ended September 30, 2008 increased to $33.0 million from $18.9 million for the same period in 2007. Those operating expenses increased due to club acquisitions from the prior year and included approximate increases of $413,000 in utilities due to increased energy costs, $331,000 in repairs and maintenance to the clubs and unique expenses of $496,000 previously reported in the second quarter. Legal and professional fees approximately increased by $671,000 or 45.4% over 2007 because of acquisitions costs, litigation charges and improvement of the financial infrastructure.

Income from operations for the nine months ended in 2008 was $10.2 million, and included expenses mentioned above, as compared to income from operations for the same period in 2007 of $7.9 million.

Net income for the nine months ended September 30, 2008 (fully taxed at 32.9%) was $4.6 million, or $0.25 per fully diluted share, on approximately 18.3 million fully diluted shares outstanding, as compared to 2007 net income (taxed at 7.0%) of $5.9 million, or $0.44 per share, on approximately 13.4 million fully diluted shares outstanding for the same period in 2007. At a 32.9% effective tax rate, net income and earnings per share for the comparable period would have been $4.3 million and $0.32, respectively.

Mr. Lowrie continued, "We remain optimistic about the future of our business and industry. While no company is immune from the current economic environment, we are pleased with the performance of our clubs so far in the fourth quarter. We believe that our tiered venue-operating model provides a substantial hedge against the impact of any potential decline in consumer spending. We are also continuing to explore potential accretive acquisitions in markets we currently operate and in new geographies, and the pipeline of such acquisitions is considerable. We have, however, assumed a prudent posture as it relates to our use of cash by weighing the benefits of acquisitions against other potential uses of capital, as market trends dictate."

SHARE REPURCHASE

As previously announced, the Company's Board of Directors has authorized the repurchase of up to $1 million of VCG Holding common stock, through dealers or agents in transactions on the Nasdaq Stock Market or in privately negotiated transactions. The plan commenced on October 1 and through October 23, 2008, VCG Holding bought back 225,045 shares of its common stock at an aggregate cost of $588,012.

CONFERENCE CALL

Management will host a web cast and conference call to discuss the 2008 third-quarter results today, Monday, November 10, 2008 at 11:00 a.m. ET / 9:00 am MT. Interested parties may participate in the conference call by dialing 877-675-4755 (domestic) or 719-325-4915 (international) ten minutes before the call is scheduled to begin and ask to be connected to the VCG Holding conference call. A replay will be available from 2:00 p.m. Eastern Time November 10, 2008 until midnight November 13, 2008. To hear the teleconference replay dial 888-203-1112 (domestic) or 719-457-0820 (international). The pass code for the replay is 4086794.

The conference call will be broadcast live over the internet. To listen to the live call, please go to the "Investor Relations" section of VCG's website at www.vcgh.com, click on "Events & Presentations," and follow the instructions at the webcast link. Please go to the website at least 15 minutes early to register, download and install any necessary audio software. If you are unable to participate in the live call, the conference call will be archived and can be accessed for approximately 90 days.

To view a copy of the Company's presentation that will be referenced during the call, please visit the Company's website at www.vcgh.com under the heading "Investor Relations" then "Events & Presentations."

ABOUT VCG HOLDING CORP.

VCG Holding Corp. is an owner, operator, and consolidator of adult nightclubs throughout the United States. The Company currently owns 20 adult nightclubs. The night clubs are located in Anaheim, Indianapolis, St. Louis, Denver, Colorado Springs, Ft. Worth, Dallas, Raleigh, Minneapolis, Louisville, Miami, and Portland, ME.

The VCG Holding Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5105

FORWARD LOOKING STATEMENT

Certain statements in this release are forward-looking statements within the meaning of the Securities Litigation Reform Act of 1995. Such statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors identified from time to time in the Company's reports with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2007. All forward-looking statements attributable to us or any persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. All guidance and forward-looking statements in this press release are made as of the date hereof and we do not undertake any obligation to update any forecast or forward-looking statements, except as may be required by law.



                           VCG Holding Corp.
                      Consolidated Balance Sheets
                              (Unaudited)

                                         September 30,   December 31,
                                             2008            2007
                                             ----            ----
                   Assets
 Current Assets
   Cash & cash equivalents               $  2,798,725    $  2,980,007
   Assets held for sale                            --         372,606
   Other receivables                          328,882         181,632
   Inventories                                931,363         964,595
   Prepaid expenses                           740,149         276,002
   Income taxes receivable                    286,782         272,244
                                         ------------    ------------
     Total current assets                   5,085,901       5,047,086

 Property, plant and equipment, net        27,878,705      24,517,181
 Deposits and prepaid expenses                844,351          82,766
 Loan fees, net                               424,043         389,604
 Deferred offering costs                       37,011          37,011
 Intangible assets                         77,123,028      64,123,908
                                         ------------    ------------
   Total                                 $111,393,039    $ 94,197,556
                                         ============    ============
     Liabilities and Stockholders' Equity
 Current Liabilities
   Accounts payable - trade              $    844,896    $    764,182
   Accrued expenses                         2,158,608       1,646,531
   Deferred revenue                           114,204         150,266
   Income taxes payable                       631,517              --
   Current portion of long-term debt
    and capitalized leases                  7,295,203       9,343,029
                                         ------------    ------------
     Total current liabilities             11,044,428      11,904,008
                                         ------------    ------------

 Deferred income tax                        1,960,123       1,060,777
 Long-term debt and capitalized lease      31,064,789      21,505,497
                                         ------------    ------------
     Total long-term liabilities           33,024,912      22,566,274
                                         ------------    ------------

   Total liabilities                       44,069,340      34,470,282
                                         ------------    ------------

 Minority interest liability                4,591,618       3,662,767
                                         ------------    ------------
 Stockholders' equity
   Common stock $.0001 par value;
    50,000,000 shares authorized;
    18,025,248 (2008) and 17,723,975
    (2007) shares issued and outstanding        1,802           1,772
   Paid-in-capital                         54,287,803      52,251,847
   Retained earnings                        8,442,476       3,810,888
                                         ------------    ------------
     Total stockholders' equity            62,732,081      56,064,507
                                         ------------    ------------
 Total liabilities and
  stockholders' equity                   $111,393,039    $ 94,197,556
                                         ============    ============


                           VCG Holding Corp.
                   Consolidated Statements of Income
                              (Unaudited)

                      Three Months Ended         Nine Months Ended
                      ------------------         -----------------
                         September 30,             September 30,
                      2008         2007         2008         2007
                      ----         ----         ----         ----

 Revenue
   Sales of
    alcoholic
    beverages      $ 6,713,551  $ 5,350,924  $19,837,895  $13,197,154
   Sales of food
    and merchandise    656,787      645,183    2,003,773    1,536,961
   Service revenue   7,052,312    4,251,364   18,694,480    9,402,356
   Management
    fees and
    other income       808,262      651,916    2,627,344    2,667,288
                   -----------  -----------  -----------  -----------
     Total revenue  15,230,912   10,899,387   43,163,492   26,803,759
                   -----------  -----------  -----------  -----------

 Operating expenses
   Cost of goods
    sold             1,779,038    1,438,290    5,329,431    3,612,060
   Salaries and
    wages            3,311,570    2,091,462    9,856,145    5,586,606
   Other
    general and
    administrative
     Taxes and
      permits          589,680      430,582    1,698,022    1,025,091
     Charge card
      and bank fees    223,337      146,461      633,635      308,162
     Rent            1,308,444    1,061,935    3,785,073    2,577,105
     Legal and
      professional     855,215      102,213    2,150,614    1,479,176
     Advertising
      and marketing    712,630      486,171    2,264,482    1,134,094
     Insurance         431,774      262,980    1,233,062      800,885
     Other           1,770,365      527,630    4,814,790    1,575,935
   Depreciation &
    amortization       458,488      339,889    1,233,244      845,653
                   -----------  -----------  -----------  -----------
       Total
        operating
        expenses    11,440,541    6,887,613   32,998,498   18,944,965
                   -----------  -----------  -----------  -----------
 Income from
  operations         3,790,371    4,011,774   10,164,994    7,858,794
                   -----------  -----------  -----------  -----------
 Other income
  (expenses)
   Interest expense (1,000,331)    (707,758)  (2,613,963)  (1,826,444)
   Interest income      15,416       30,311       19,952      320,529
   Unrealized gain
    on investments          --       (8,934)          --           --
   Gain (loss) on
    sale of assets       4,500           --     (133,426)     190,256
                   -----------  -----------  -----------  -----------
       Total other
        income
        (expenses)    (980,415)    (686,381)  (2,727,437)  (1,315,659)
                   -----------  -----------  -----------  -----------
 Income from
  continuing
  operations
  before income
  taxes              2,809,956    3,325,393    7,437,557    6,543,135
                   -----------  -----------  -----------  -----------

 Total income taxes    907,764      106,000    2,444,726      456,000
                   -----------  -----------  -----------  -----------
 Minority interest
  expense             (132,239)     (80,584)    (361,243)    (173,400)
                   -----------  -----------  -----------  -----------
 Income from
  continuing
  operations         1,769,953    3,138,809    4,631,588    5,913,735
                   -----------  -----------  -----------  -----------

 Loss from
  discontinued
  operations, net
  of zero income
  taxes                     --      (22,723)          --      (22,723)
                   -----------  -----------  -----------  -----------

 Net income        $ 1,769,953  $ 3,116,086  $ 4,631,588  $ 5,891,012
                   ===========  ===========  ===========  ===========

 Earnings per
  share:
 Basic income per
  common share     $      0.10  $      0.19  $      0.26  $      0.44

 Fully diluted
  income per
  common share     $      0.10  $      0.19  $      0.25  $      0.44

 Weighted
  average shares
  outstanding       18,025,248   16,970,404   17,948,802   13,357,204
 Fully diluted
  weighted
  average shares
  outstanding       18,350,627   16,976,747   18,336,055   13,359,318


                          VCG Holding Corp.
                Consolidated Statements of Cash Flows
                             (Unaudited)

                                            For the Nine Months Ended
                                                   September 30,
                                             ------------------------
                                                2008         2007
                                             -----------  -----------
 Operating Activities
 Net income                                  $ 4,631,588  $ 5,891,012
 Adjustments to reconcile net income to
  net cash provided by operating
  activities:
   Depreciation and amortization               1,233,244      845,653
   Amortization of loan fees                     226,056       28,896
   Stock-based compensation expense              665,249      200,808
   Deferred tax expense                          992,636      456,000
   Minority interest expense                     361,243      173,400
   (Gain) loss on disposition of assets          133,426     (179,189)
   Deferred revenue                              (36,062)     121,436
   Changes in current operating assets
    and liabilities                            1,242,511      335,133
                                             -----------  -----------
     Net cash provided by operating
      activities                               9,449,891    7,873,149
                                             -----------  -----------
 Investing Activities
   Investments                                        --      (49,182)
   Acquisitions of businesses, net of
    cash acquired                            (10,721,159) (37,870,673)
   Purchases of property and equipment        (1,268,549)    (571,055)
   Deposits                                     (163,885)    (526,226)
   Proceeds from disposition of assets           237,811      206,000
                                             -----------  -----------
     Net cash used by investing activities   (11,915,782) (38,811,136)
                                             -----------  -----------
 Financing Activities
   Loan fees paid                               (223,954)     (66,000)
   Stock offering costs paid                          --     (128,830)
   Payment on capitalized leases                  (6,906)    (978,119)
   Proceeds from mortgages and notes
    payable                                    6,044,815   12,200,676
   Payments on mortgages and notes payable    (3,611,240)          --
   Distributions to minority interests          (377,357)    (312,963)
   Purchase of treasury stock                         --     (257,732)
   Proceeds from stock issuances                 459,251   21,201,214
                                             -----------  -----------
     Net cash provided by financing
      activities                               2,284,609   31,658,246
                                             -----------  -----------
 Net increase (decrease) in cash                (181,282)     720,259
 Cash beginning of period                      2,980,007    2,011,178
                                             -----------  -----------
 Cash end of period                          $ 2,798,725  $ 2,731,437
                                             ===========  ===========

   Income taxes paid in cash                 $   822,307  $        --
   Interest paid in cash                     $ 2,267,597  $ 1,826,444
   Supplemental disclosure of non-cash
    investing and financing activities:
     Common stock issued for services        $ 1,330,015  $   527,286
     Issued notes payable for acquisitions   $ 5,793,027  $        --
     Purchased general partnership
      interests for common stock             $        --  $ 2,555,192
     Purchase common stock of wholly
      owned subsidiary for common stock      $        --  $ 4,392,000
     Preferred stock converted to common
      stock                                  $        --  $   325,000
     Cancelled common stock for payment
      of Epicurean                           $        --  $(2,370,000)


                           VCG Holding Corp.
                     Calculation of Free Cash Flow
                              (Unaudited)

                               Year to date      Quarter to date
                               ------------      ---------------
 EBITDA                         $11,398,238        $ 4,428,859
 Less:
   Interest expense              (2,613,963)        (1,000,331)
   Minority interest expense       (361,243)          (132,239)
   Cash income tax expense       (1,430,897)          (606,986)
   Maintenance Cap Ex            (1,268,549)          (261,359)
                                -----------        -----------
 Free cash flow                 $ 5,723,586        $ 2,427,944
                                ===========        ===========
VCG Holding Corp. 
Troy Lowrie, Chief Executive Officer
  
Courtney Cowgill, Chief Financial Officer
  
(303) 934-2424

The Equity Group Inc.
Devin Sullivan, Senior Vice President
  (212) 836-9608
  
Gerrard Lobo, Senior Account Executive
  (212) 836-9610