EGM Approval

India Hospitality Corp.
18 July 2007


For immediate release                                               18 July 2007

India Hospitality Announces Approval of the Acquisitions of Mars Restaurants and
                              SkyGourmet Catering

New York, NY. - July 18, 2007 - India Hospitality Corp. (LSE: IHC, IHC or India
Hospitality), today announced that with regard to the acquisition from Navis
Capital Partners and its Affiliates of India-based Mars Restaurants Private
Limited (MRPL or Mars), an emerging hotel and restaurant company, and SkyGourmet
Catering Private Limited (SCPL or SkyGourmet), an airline catering company
operating out of four locations in India, in a transaction involving cash and
shares and valued at approximately US $110 million, at an extraordinary general
meeting of IHC shareholders held on July 17, 2007 IHC shareholders approved the
acquisition and:

  • all other transactions contemplated by the share purchase agreement which
    includes possible future acquisitions by IHC's subsidiary, IHC Mauritius
    Corp., of Noida Opco, which owns a further hotel, and/or the Nirula's
    Group's quick service restaurant chain;
  • certain advisory services related to the transaction; and
  • the extension to August 31, 2007 of the date by which a Qualified Business
    Combination must be consummated from August 1, 2007.

At the extraordinary general meeting, proxies were received as follows: in
favour of the resolutions, 17,435,723; against the resolutions, 1,520,000; and
abstaining 290,000. IHC shareholders voting against the resolutions have
exercised their repurchase rights in respect of in aggregate 1,520,000 ordinary
shares of IHC. IHC will fund the consideration for these repurchase rights out
of its available cash resources and/or through requiring Hayground Cove Asset
Management (through the funds and accounts it manages) to subscribe for up to
1,520,000 new ordinary shares in IHC at the same price per share as the
repurchased ordinary shares are required to be repurchased by IHC. All
shareholders exercising their repurchase rights are required to tender their
share certificates to the Company and provide the usual representations and
warranties as to continuing ownership of their ordinary shares in order to be
entitled to exercise their repurchase rights.

The acquisition is expected to close shortly at which point IHC's ordinary
shares and warrants are expected to be re-admitted to trading on AIM.  A further
announcement will be made in due course.

About Mars

Mars was incorporated in 2000 by Mr. Sanjay Narang and his management team with
the objective of operating and managing restaurants. Since its incorporation,
Mars has diversified into bakery outlets and operating and managing food courts
and hotels. For the nine months ended December 31, 2006, MRPL had audited
revenues of approximately US $7.2 million. MRPL currently employs over 550
people.

About SkyGourmet

SkyGourmet was incorporated in 2002 and is headquartered in Mumbai. SkyGourmet
currently provides inflight catering services to a number of domestic and
international airlines, including Jet Airways, Kingfisher Airlines, Air India
Express, Indian Airlines, Malaysian Airlines and Air France.   It has operations
in Mumbai, Bangalore, New Delhi and Pune. For the nine months ended December 31,
2006, SCPL had audited revenues of approximately US $11.7 million. SkyGourmet
currently has over 1,150 employees.

About India Hospitality Corp.

IHC is a blank-check company created to acquire Indian businesses or assets in
the hospitality, leisure, tourism, travel and related industries, including but
not limited to hotels, resorts, timeshares, serviced apartments and restaurants.

In August 2006, IHC raised US $103 million in an IPO and private placement and
is listed on AIM, a market operated by London Stock Exchange plc, under the
ticker IHC. The Company was sponsored and advised by Hayground Cove Asset
Management LLC, a New York-based investment management firm with approximately
US $2.8 billion in gross assets under management.

For Further Information Contact:

Investor Relations Contact: ICR Inc.
William Schmitt
203-682-8200

Media Contact: Buchanan Communications
Richard Darby, Isabel Podda
[phone]

Media Contact - India: Fleishman-Hillard, Inc.
Yusuf Hatia
Office:  [phone]
Mobile: [phone]

Nominated Adviser and Broker: Deutsche Bank
Mumtaz Naseem
[phone]

Deutsche Bank AG is authorised under German Banking Law (competent authority:
BaFin - Federal Financial Supervising Authority) and with respect to UK
commodity derivatives business by the Financial Services Authority; regulated by
the Financial Services Authority for the conduct of UK business.  Deutsche Bank
is acting exclusively for IHC. and no-one else in connection with the
acquisition and related transactions and other matters referred to in this
announcement and will not be responsible to anyone other than IHC. for providing
the protections afforded to clients of Deutsche Bank AG nor for providing advice
in relation to the acquisitions and related transactions or any matter referred
to in this announcement.

Deutsche Bank is IHC's nominated adviser and broker for the purposes of the AIM
Rules for Companies.  Its responsibilities as IHC's nominated adviser and broker
under the AIM Rules for Nominated Advisers are owed solely to London Stock
Exchange plc and not to IHC, any director of IHC or any other person.

No offer or invitation to purchase or subscribe for ordinary shares in or
warrants to purchase or subscribe for ordinary shares or warrants of IHC is
being made by this announcement.

                      This information is provided by RNS
            The company news service from the London Stock Exchange