PENTHOUSE LICENSING/Clubs & Venues (cont’d)

PENTHOUSE Clubs are the premier gentlemen’s clubs in North America and worldwide. Located in some of the most exciting cities — New York, Paris, San Francisco and Moscow — each club is unique, though unmistakably PENTHOUSE.  Clubs are expected to receive over 1 million visitors this year.

The Clubs have won many industry awards including Chain of the Year, International Club of the Year and GM of the Year 2015. Although the majority of the existing Penthouse Clubs are in the US and new clubs are opening this year in Pompano Beach and Chicago, there is extensive development outside the US. To the very successful Moscow location, we have added Paris, Kharkov, Auckland and Perth; and we have deals in place to open Penthouse Clubs in Nicosia, Cyprus, and Macau, China. As of today, we anticipate opening 3-5 more international venues in 2016.

While Penthouse Clubs are the best known opportunity, they are not the only Penthouse- branded hospitality venues. Following are brief descriptions of the venues: