India Hospitality's SkyGourmet Launches Fifth K...

India Hospitality's SkyGourmet Launches Fifth Kitchen in Hyderabad 
                                        
    NEW YORK, March 31  -- India Hospitality Corp. (LSE: IHC, IHC or 
India Hospitality) today announced that one of its divisions, SkyGourmet 
Catering Pvt. Ltd., launched its Airline Catering Unit (ACU) in Hyderabad, 
coinciding with last week's opening of the city's new Rajiv Gandhi 
International Airport. 
    SkyGourmet's Hyderabad ACU has the capacity to produce 25,000 meals per 
day, constituting approximately 25% of SkyGourmet's total capacity including 
capacity expansions currently underway at the company's Mumbai and Bangalore 
units. SkyGourmet is one of only two caterers to have been granted a 
concession at the new Hyderabad airport by GMR Hyderabad International Airport 
Ltd., a public-private joint venture between GMR Group, Malaysia Airports 
Holdings Berhad and both the State Government of Andhra Pradesh and Airports 
Authority of India (AAI). 
    The company has added close to 45,000 meals per day in capacity since 
January 2008. In the month of January 2008, SkyGourmet launched its Chennai 
operations with a capacity of 10,000 meals per day and embarked on expanding 
its ACU in Mumbai with an additional capacity of 10,000 meals per day. 
Hyderabad is the fourth largest city in India and capital of the state of 
Andhra Pradesh, which has emerged as one of India's leading states in the 
agricultural, manufacturing, information technology and pharmaceutical 
industries.  
    Kitchen expansions are an integral part of India Hospitality Corp.'s long-
term strategy to scale its operations as India's second largest airline 
caterer in India. With this launch, SkyGourmet now has operating units in five 
of India's major airport cities: New Delhi, Mumbai, Bangalore, Chennai and 
Hyderabad. The Company plans to launch a similar unit in Kolkata shortly, 
which will complete the first phase of its expansion and firmly place it in 
the six metro cities that account for close to 80% of the domestic air traffic 
in India.  
    Industry experts estimate 25% annual growth in domestic travel in India 
over the next five years. The Indian Ministry of Civil Aviation has planned 
500 fully operational airports in the country by 2020, up from just 80 today. 
The aggressive expansion program of the Ministry of Civil Aviation will 
include both Greenfield airports and refurbishment of existing airports.  
 
    About India Hospitality Corp.  
    In August 2006, India Hospitality Corp. 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.  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 1,700 
employees operating out of four locations in India.  
 
    In December 2007, in order to fund strategic growth initiatives, Hayground 
Cove and Navis Capital jointly invested US $28 million of additional capital 
in IHC, bringing their total invested capital to US $56 million. Following 
such reinvestment, Hayground Cove and Navis own approximately 52% of India  
Hospitality. 
 
    About Mars and SkyGourmet 
    Since its incorporation in 2000, Mars has diversified into bakery outlets 
and operating and managing food courts and hotels. SkyGourmet was incorporated 
in 2002 and is headquartered in Mumbai. SkyGourmet currently provides in-
flight catering services to a number of domestic and international airlines, 
including Jet Airways, Kingfisher Airlines, Air India Express, Indian 
Airlines, and Jet Lite. It has operations in Mumbai, New Delhi, Bangalore, 
Chennai and Hyderabad. For the nine months ended December 31, 2006, the 
combined entities had audited revenues of approximately US $18.9 million and 
1,700 employees. 
 
    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. 
 
    For Further Information Contact: 
    Investor Relations Contact: ICR Inc. 
    William Schmitt 
    203-682-8200 
 
    Nominated Adviser and Broker: Deutsche Bank 
    Mumtaz Naseem 
    [phone] 
 
SOURCE  India Hospitality Corp. 
    -0-                             03/31/2008 
    /CONTACT:  Investors, William Schmitt of ICR Inc., [phone]; or 
Mumtaz Naseem, Nominated Adviser and Broker, Deutsche Bank, [phone] /