Half-yearly Report

India Hospitality Corp. Reports Preliminary Fiscal Second
                            Quarter 2009 Results

                  F2Q09 Revenues Up 13% over Prior-Year Period

    LONDON, Dec. 10 -- India Hospitality Corp. (LSE: IHC, IHC or India
Hospitality) today announced preliminary results for IHC for the fiscal
quarter ended September 30, 2008.

    Fiscal Second Quarter 2009 Highlights
    - Total revenue increased 13% year-over-year to $8.9 million.
    - SkyGourmet revenue increased 18% over the prior-year quarter.
    - Mars Restaurants revenue improved 1% year-over-year, while restaurant
same-store sales increased 6%.
    - Combined EBITDA for SkyGourmet and Mars declined to $1.0 million from
$1.2 in the prior-year quarter. EBITDA including IHC corporate expense was
$0.7 million.

    Fiscal Second Quarter 2009 Preliminary Results

    For the fiscal quarter ended September 30, 2008, India Hospitality
reported unaudited revenue of $8.9 million -- a 13% increase from the
prior-year period. Top line growth was boosted by an approximate 18% increase
in revenue from IHC's SkyGourmet division to $7.2 million, aided by increased
demand for meals, as well as the opening of a new kitchen during calendar
2008. Total meals served for the fiscal second quarter 2009 increased 13%
over the prior-year quarter.

    Revenue at Mars Restaurants increased to $2.7 million, a 1% improvement
over the prior-year period. The results at Mars were driven by a 24% increase
in average room rate (ARR) at the Gordon House Hotels and restaurant
same-store sales increases of 6%. Two new cake shops were opened in Delhi,
while no shops were closed during the quarter.

    Total combined EBITDA for India Hospitality for fiscal second quarter
2009 was $0.7 million compared to $1.2 million in the prior-year period, a
40% decrease. The combined EBITDA for fiscal second quarter 2009 includes
intercompany eliminations and IHC corporate operating costs of approximately
$0.3 million, while the prior-year period had negligible IHC corporate costs
due to the acquisition of the operating companies by IHC. Margins saw a
decrease at both Mars Restaurants and SkyGourmet due to the slowing economy
as well as increases in cost of goods sold and operating costs.

    Liquidity and Balance Sheet
    As of September 30, 2008, IHC has approximately $28.4 million in
long-term debt on its combined balance sheet and $7.8 million of cash and
cash equivalents. Key balance sheet metrics are included at the end of this
announcement.

    About India Hospitality Corp.
    India Hospitality Corporation's mission is to acquire and successfully
operate 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.

    IHC operates through two wholly owned subsidiaries, Mars Restaurants
Private Limited -- an emerging hotel and restaurant company -- and SkyGourmet
Catering Private Limited, a leading airline catering company. The companies
are headquartered in Mumbai and have over 1,700 employees across their
facilities in India.

    For Further Information Contact:
    Media Contact: Mutual Image & Events Management Pvt. Ltd.
    Harsh Wardhan
    [phone]

    Investor Relations Contact: ICR Inc.
    William Schmitt
    [phone]

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

    Deutsche Bank AG 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.

           Revenue and Adjusted EBITDA for the Periods Ended September 30
           --------------------------------------------------------------
                                                                         
                  Mars                                               
(in U.S. $mm)  Restaurants      SkyGourmet        Combined *   Year/Year 
             F2Q08    F2Q09   F2Q08    F2Q09    F2Q08    F2Q09  Change  
             -----    -----   -----    -----    -----    -----  ------  
                                                                         
  Revenue     $2.7     $2.7    $6.1     $7.2     $7.8     $8.9     13%
  EBITDA      $0.2     $0.2    $0.9     $0.8     $1.2     $0.7    -40%
                                                                         
* Combined revenue includes intercompany eliminations and IHC operating
  expenses for F2Q09. 



                       Key Balance Sheet Metrics                   
                       -------------------------                   
                                                                   
                         IHC consolidated level                    
                         ----------------------                    
    (in U.S. $mm)             September 30, 2008   March 31, 2008  
                              ------------------   --------------  
                                                                   
    Cash & cash equivalents          $7.8              $18.1
    Shareholders' Equity            145.5              146.2
    Long-Term Debt                   28.4               37.9
                                                                   
                                                                   
                                                                   
                       Key Balance Sheet Metrics                   
                       -------------------------                   
                                                                   
                  Operating entity level (Sky + Mars)              
                  -----------------------------------              
    (in U.S. $mm)             September 30, 2008   March 31, 2008  
                              ------------------   --------------  
                                                                   
    Net working capital               $3.0             $1.5
    Net fixed assets                  59.9             62.1


    Cautionary note regarding forward-looking statements
    This preliminary earnings announcement contains certain forward-looking
statements with respect to the financial condition, results of operations and
business of India Hospitality Corp. (the Company), and certain plans and
objectives of the board of directors of the Company. These forward-looking
statements can be identified by the fact that they do not relate only to
historical or current facts. Forward-looking statements often use words such
as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal",
"believe", "will", "may", "should", "would", "could" or other words of
similar meaning. These statements are based on assumptions and assessments
made by the board of directors of the Company in light of their experience
and their perception of historical trends, current conditions, expected
future developments and other factors they believe appropriate. By their
nature, forward-looking statements involve risk and uncertainty, and the
factors described in the context of such forward-looking statements in this
announcement could cause actual results and developments to differ materially
from those expressed in or implied by such forward-looking statements.

    Should one or more of these risks or uncertainties materialize, or should
underlying assumptions prove incorrect, actual results may vary materially
from those described in this release. India Hospitality Corp. assumes no
obligation to update or correct the information contained in this release,
whether as a result of new information, future events or otherwise, except to
the extent legally required.

    The statements contained in this announcement are made as at the date of
this release, unless some other time is specified in relation to them, and
service of this announcement shall not give rise to any implication that
there has been no change in the facts set out in this announcement since such
date. Nothing contained in this announcement shall be deemed to be a
forecast, projection or estimate of the future financial performance of the
Company except where expressly stated.

SOURCE  India Hospitality Corp.

    CONTACT: Media, Harsh Wardhan of Mutual Image & Events Management Pvt.
Ltd., [phone]; Investors, William Schmitt of ICR Inc.,
[phone]; Nominated Adviser and Broker: Mumtaz Naseem of Deutsche Bank
AG, [phone], all for India Hospitality Corp.