Final Results

Indian Restaurants Group PLC
28 March 2008


28 March 2008

                          Indian Restaurants Group Plc
                    ('Indian Restaurants' or 'the Company')

            Preliminary Results for the year ended 30 September 2007

Indian Restaurants Group Plc (AIM: IRGP), formerly India Outsourcing Services
plc, is pleased to present its preliminary results for the year ended 30
September 2007.

Highlights

•         During the period the Company pursued its strategy of evaluating
          business process outsourcing opportunities in India

•         The high valuations of potential targets prompted a change of strategy
          resulting in the acquisition, post the year end, of the Mela Group of 
          three Indian restaurants in London

•         The Company's strategy is to roll out the Mela Group's Mela and Chowki
          restaurant brands to create the UK's first national, branded provider 
          of Indian cuisine

•         Post-tax loss of £262,797 (2006: post-tax loss of £950,801) and loss
          per share of  2.8p (2006: 15.3p)

•         Strong balance sheet - cash at bank and in hand of £2.54 million


Haresh Kanabar, Indian Restaurants Group's Chairman, said:

'During the period, the Board decided to widen the search for potential
acquisitions, in terms of both geographic location and industry sector, as we
were not prepared to overpay for outsourcing assets in India. In February this
year we were delighted to announce the acquisition of the Mela Group of Indian
restaurants in London, which we believe provides an ideal basis from which to
generate shareholder value.

'The Mela Group's highly acclaimed restaurants offer an outstanding opportunity
to roll out the first UK chain of branded Indian restaurants under the Mela
Group's Mela and Chowki brands. Given the large but fragmented Indian restaurant
market in the UK we believe we are particularly well placed to replicate over
time the success seen in pizza, pasta and tapas chains.

'The spend per head at the Mela and Chowki brands is relatively modest offering
some insulation from current economic conditions, which in many respects provide
an ideal time during which to begin to build a significant restaurant chain. We
look forward to the future with confidence.'


For further information:

Indian Restaurants Group Plc                                  Tel: [phone]
Haresh Kanabar, Chairman
Amit Pau, Chief Executive

W.H. Ireland Limited                                          Tel: [phone]
Tim Cofman/Katy Birkin

Buchanan Communications                                       Tel: [phone]
Mark Court



EXTRACTS FROM THE CHAIRMAN'S STATEMENT AND THE REPORT OF THE DIRECTORS

This year has been a challenging year for our company, primarily due to the
rising valuations of Indian BPO companies. Valuations of BPO companies in India
are continuing at a level where the creation of value for our shareholders from
making an acquisition at these valuations was somewhat difficult to deliver.

As a result the Board, in consultation with its key shareholders, decided to
widen the search in terms of both geographic location and industry sectors for
potential acquisitions and investments as we were not prepared to overpay for
outsourcing assets in India.

During the year there has been very careful cost control at the Company, even
though there has been a significant level of activity as a result of our
decision to broaden the investment search geographically and also to include
sectors outside of the BPO market.

Despite the challenges and after a long period of negotiations we successfully
completed our first acquisition, with the purchase of the Mela Group which
comprises of three Indian restaurants and an outside catering business in
February 2008. Following the completion of the acquisition, the Company has
changed its name to Indian Restaurants Group Plc. In addition, we are delighted
to welcome Kuldeep Singh and Ashraf Rahman to the Board.

Background for the Acquisition

The total Consideration for the Acquisition was £1,998,999, satisfied by
£100,000 in cash and the issue of the Consideration Shares (valued at 26.37p per
share), of which £949,499 comprises Initial   Consideration Shares and £949,500
comprises Deferred Consideration Shares, the issue of which is conditional on
the achievement of certain targets.

The Initial Consideration Shares represented 27.53 per cent. of the company's
enlarged issued Share Capital and the Consideration Shares in total will
represent 43.17 per cent. of the further enlarged share capital assuming the
issue of the Deferred Consideration Shares.

The Directors intend to create a chain of restaurants providing authentic, home
style Indian food on a consistent basis across the Group. The Group will
initially target (i) the mid market (pricing at approximately £25 per head) and
(ii) the 'fast casual' dining market (pricing at approximately £15 per head).
Additionally, based on the facilities of the chain, the Directors intend to
extend the Group's brands into, sports catering, lunchtime takeaway menu and
event catering including weddings.

The Directors believe that the combination of the Mela Group's business and the
Company's existing cash resources and its access to the equity market, has the
potential for delivering positive returns to shareholders in both the short and
medium term. The Directors believe that this strategy will create shareholder
value and that the acquisition of the Mela Group satisfies the Company's
investment criteria as the Mela Group offers it an experienced management team
with a track record of building and managing businesses. This team will play an
integral part of the future growth and expansion, an ability to generate revenue
streams and an existing platform from which further growth can be developed. We
intend to build upon the numerous awards received by the Mela Group and
nominations including the Evening Standard London Tonight and Tio Pepe ITV
London Restaurant Awards.

The Directors believe that the key features of the Indian restaurant sector are
that, it is well established with market size in excess of £3 billion; it is an
extremely fragmented market with over 11,500 restaurants in the UK; and there is
no current UK national branded provider and therefore opportunity to consolidate
in this niche with the UK's first nationwide chain.

The Directors believe that the Indian restaurant sector offers the opportunity
for significant organic growth through the development of a branded chain of
restaurants offering authentic cuisine consistently cooked to a high standard.
The Mela Group, with its highly acclaimed restaurants, offers an outstanding
opportunity to roll out the first UK chain of branded Indian restaurants under
the Mela and Chowki brands.

In addition, the Directors believe that there are consolidation opportunities
within the fragmented Indian restaurant sector and envisage that the  Group may
be acquisitive in the future.

Financials

The Company has contained costs during the period and we are reporting a post
tax loss of £262,797 compared to a restated post tax loss of £950,801 in the
previous financial year. The main reason for the reduction in losses was the
substantial reduction in due diligence costs year on year. The loss per share
for the year is 2.8p compared to 15.3p for the year ending September 2006. As at
the end of the year the Company had £2.5 million in cash and net assets of £2.4
million. The movement in the balance sheet cash and net assets is as a result of
incurring a loss in the year.

Outlook

We are very excited about the strategy going forward and we look forward to the
future with confidence.

Results and dividends

The directors do not recommend the payment of a dividend for the year (2006:
£nil).

Principal activities, trading review and future developments

The principal activity of the company was to capitalise on acquisition and
investment opportunities within the Business Process Outsourcing sector
primarily in India. Post the year end following the acquisition of Indian
restaurants the principal activity is to operate a chain of Indian restaurants.

Haresh Kanabar
Chairman
28 March 2008



Indian Restaurants Group Plc
Profit and Loss Account for the year ended 30 September 2007

                                                    Notes         Year ended 30                    Year ended
                                                                 September 2007             30 September 2006
                                                                                                  As Restated
                                                                              £                             £

Administrative expenses                                               (406,585)                   (1,035,705)
                                                                   ____________                  ____________
Operating loss                                                        (406,585)                   (1,035,705)

Net interest receivable                                                 143,788                        84,904
                                                                   ____________                  ____________
Loss on ordinary activities before taxation                           (262,797)                     (950,801)

Tax on loss on ordinary activities                                            -                             -
                                                                   ____________                  ____________
Loss for the financial year                                           (262,797)                     (950,801)
                                                                   ____________                  ____________
Loss per share-basic and diluted                      2                  (2.8)p                       (15.3p)
                                                                   ____________                  ____________


All amounts relate to continuing activities.



Indian Restaurants Group Plc
Statement of total recognised gains and losses for the year ended 30 September 2007

                                                                    Year ended                    Year ended
                                                             30 September 2007             30 September 2006
                                                                                                    Restated
                                                                             £                             £

Loss for the financial year                                          (262,797)                     (950,801)
                                                                  ____________                  ____________
Total recognised gains and losses for the                            
financial year                                                       (262,797)                     (950,801)

Prior year adjustments- share based payments (as                      
explained in note 1)                                                  (75,246)                             -
                                                                  ____________
Total gains and losses recognised since last                         
financial statements                                                 (338,043)                             -



Indian Restaurants Group Plc
Balance sheet as at 30 September 2007

                                                                          2007                          2006
                                                                             £                             £

Fixed assets
Tangible assets                                                              -                         1,141
                                                                  ____________                  ____________
                                                                             -                         1,141

Current assets
Debtors                                                                 28,660                        24,404
Cash at bank and in hand                                             2,537,590                     2,800,000
                                                                  ____________                  ____________
                                                                     2,566,250                     2,824,404

Creditors:
amounts falling due within one year                                  (142,381)                     (186,777)
                                                                  ____________                  ____________
Net current assets                                                   2,423,869                     2,637,627
                                                                  ____________                  ____________
Net assets                                                           2,423,869                     2,638,768
                                                                  ____________                  ____________

Capital and reserves
Called up share capital                                                947,917                       947,917
Share premium account                                                2,990,775                     2,990,775
Profit and loss account                                            (1,514,823)                   (1,299,924)
                                                                  ____________                  ____________
Shareholders' funds                                                  2,423,869                     2,638,768
                                                                  ____________                  ____________

The financial statements were approved by the Board of Directors and authorised
for issue on 28 March 2008 and were signed on its behalf by:


HD Kanabar
Director




Indian Restaurants Group Plc
Cash Flow Statement for the year ended 30 September 2007

                                                                    Year ended                    Year ended
                                                             30 September 2007             30 September 2006
                                                                             £                             £

Net cash outflow from operating activities                           (369,053)                     (933,272)

Returns on investments and servicing of finance
Interest received                                                      143,788                        84,904
                                                                  ____________                  ____________
Net cash inflow from returns on investments and                        
servicing of finance                                                   143,788                        84,904
                                                                  ____________                  ____________
Net cash outflow before financing                                    (225,265)                     (848,368)

Financing
Issue of ordinary shares                                                     -                     3,500,000
Expenses paid in connection with share issues                                -                     (248,572)
                                                                  ____________                  ____________
Cash inflow from financing                                                   -                     3,251,428
                                                                  ____________                  ____________
(Decrease)/ increase in net cash                                     (225,265)                     2,403,060
                                                                  ____________                  ____________

Notes to the financial statements

1          Accounting policies
            
Basis of preparation

The results have been prepared using accounting policies consistent with those
used in the preparation of the statutory accounts.  The financial information is
derived from the financial statements for the Years ended 30 September 2006 and
2007, and does not constitute full accounts within the meaning of Section 240 of
the Companies Act 1985.  The financial statements on which the auditors have
given an unqualified report do not contain a statement under Section 237 (2) or
(3) of the Companies Act.  Statutory Accounts for 2006 have been delivered to
the Registrar of Companies and Accounts for 2007 will be delivered to the
Registrar of Companies in due course.

The financial statements have been prepared under the historical cost convention
and in accordance with the United Kingdom, Generally Accepted Accounting
Practice.  The following principal accounting policies have been applied:

Share-based payments

The cost of equity-settled transactions with suppliers of goods and services is
measured by reference to the fair value of the good or service received, unless
that fair value cannot be estimated reliably. The fair value of the good or
service received is recognised as an expense as the Group receives the good or
service. The cost of equity-settled transactions with employees, and
transactions with suppliers where fair value cannot be estimated reliably, is
measured by reference to the fair value of the equity instrument. The fair value
of equity-settled transactions with employees is recognised as an expense over
the vesting period. The fair value of the equity instrument is determined at the
date of grant, taking into account market based vesting conditions. The fair
value is determined using an option pricing  using Black Scholes model.

No expense is recognised for awards that do not ultimately vest, except for
awards where vesting is conditional upon a market condition, which are treated
as vesting irrespective of whether or not the market condition is satisfied,
provided that all other performance conditions are satisfied.

At each balance sheet date before vesting, the cumulative expense is calculated,
representing the extent to which the vesting period has expired and management's
best estimate of the achievement or otherwise of non-market conditions, the
number of equity instruments that will ultimately vest, or in the case of an
instrument subject to a market condition, be treated as vesting as described
above. The movement in cumulative expense since the previous balance sheet date
is recognised in the income statement, with a corresponding entry in equity.

Adoption of FRS 20 - Share- Based Payment

The Company has adopted Financial Reporting Standard (FRS) 20 'Share-based
Payment' during the year. The adoption of this standard constitutes a change in
accounting policy. Therefore, the impact has been reflected as a prior year
adjustment in accordance with FRS 3 'Reporting Financial Performance'.

The standard requires that where shares or rights to shares are granted to third
parties, including employees, a charge should be recognised in the profit and
loss account based on the fair value of the shares at the date the grant of
shares or right to shares is made.

The adoption of FRS 20 has resulted in a net increase in the loss for the year
of £47,898 and for the year ended 2006 the net increase in the loss was £75,246.

There is no impact on the net assets of the Company.

The share-based payments expense has been included in the administrative
expenses line of the profit and loss account.

2          Loss per share

The calculation of loss per share of 2.8 pence (2006: 15.3 pence as restated) is
based on the loss for the year of £262,797 (2006: £950,801 as restated) and on
the weighted average number of ordinary shares in issue during the year of
9,479,167 (2006: 6,197,116).

Due to the losses incurred during the year a diluted loss per share has not been
disclosed as this would serve to reduce the basic loss per share.

There are share options outstanding at the end of the year that could
potentially dilute basic earnings per share in the future.

3          Post Balance Sheet Events.

The Board announced on 29 January 2008 that the Company had conditionally agreed
to acquire the Mela Group. The consideration for the acquisition was £1,998,999,
to be satisfied by £100,000 in cash and the issue of ordinary shares ('
Consideration Shares') (valued at 26.37p per share) conditional, inter alia, on
readmission to AIM and, in the case of the Deferred Consideration Shares, also
conditional on the achievement of certain targets. The Mela Group, comprises a
group of three companies holding between them three Indian restaurants and an
outside catering business. In conjunction with the Acquisition, the Company
increased its share capital, changed its name to Indian Restaurants Group Plc
and increased its borrowing powers. The transaction took place on 26 February
2008.

The Initial Consideration Shares represents 27.53 per cent. of the company's
enlarged Share Capital and the Consideration Shares in total will represent
43.17 per cent. of the further enlarged share capital assuming the issue of the
Deferred Consideration Shares. In view of the size of the Mela Group relative to
the Company, the Acquisition constituted a reverse takeover of the Company under
the AIM Rules and therefore required the prior approval of Shareholders at a
General Meeting.

The Annual Report will be posted shortly to all shareholders. Additional copies
are available from 22 Soho Square, London W1D 4NS.



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