IHC's Credit Line Increased by $4 Million

IHC's Credit Line Increased by $4 Million to Fund Expansion of Air 
Catering Business

The Company is also in Advanced Discussions with Investors to Raise 
Further Funds to Fuel Hotel Management and Restaurant Business Growth

LONDON, Jan. 22 -- India Hospitality Corp. (LSE: IHC, IHC or India 
Hospitality) today announced that one of India's leading banks, State 
Bank of India, has increased its existing credit line to the company by 
approximately $4 million to help fund the company's strategic expansion 
plans for its air catering business. 

The management at IHC is also in advanced discussions with several 
institutional investors to raise additional funds for the company to be 
deployed towards certain growth initiatives of its hotel management and 
restaurant businesses, although there can be no guarantee that such 
discussions will ultimately lead to further funding being made available.

"We believe additional capital will allow us to leverage the growth 
opportunities that exist across the air catering, hotel management and 
restaurant business in India," said Chief Executive Officer Ravi Deol.  
"IHC has a scalable business model with inherent synergies across the 
businesses. Despite the recent market slowdown, we believe significant 
opportunities exist today that should provide long-term value to IHC."

As part of its growth strategy, IHC's Indian subsidiary Mars Hotel and 
Restaurant Pvt. Ltd. (which owns and operates Gordon House Hotels, an 
emerging four-star boutique hotel brand) continues to aggressively work 
towards signing hotel management contracts in the largest cities in India. 
The company is also preparing a rollout plan for the potential expansion 
of its branded food retail business.

About India Hospitality Corp.

India Hospitality Corp. (IHC) is a diversified pan-Indian hospitality and 
leisure company. In July 2007, IHC closed on the acquisition from Navis 
Capital Partners and its Affiliates of India-based Mars Restaurants 
Private Limited, an emerging hotel and restaurant company, and SkyGourmet 
Catering Private Limited, an airline catering company with 2,800 employees 
across its facilities in India.

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. 

SOURCE  India Hospitality Corp.

CONTACT:  Media, Harsh Wardhan, Mutual Public Relations Ltd., +91-11-
43620700; or Investor Relations, William Schmitt, ICR Inc., +1-203-682-
8200; or Nominated Adviser and Broker, Mumtaz Naseem, Deutsche Bank, +44-
20-7545-8000