India Hospitality SkyGourmet Expansion

India Hospitality Corp.'s SkyGourmet Expansion Takes Off 
 
   Mumbai Increases Capacity 50 Percent, Chennai Operations Open in January 
 
    NEW YORK, Feb. 11.  -- India Hospitality Corp. (LSE: IHC, IHC 
or India Hospitality) today announced that SkyGourmet Catering Pvt. Ltd. is 
expanding its Air Catering Unit (ACU) in Mumbai by 50%, while its fourth and 
newest kitchen in Chennai opened the last week of January 2008 with an initial 
capacity of 10,000 meals per day. 
    SkyGourmet's unaudited revenues nearly doubled in its last fiscal year, 
and its Mumbai unit was fast approaching capacity limits. Chennai, which has 
become an emerging automobile manufacturing hub in India, has experienced a 
significant increase in air travel. The company expects a continued surge from 
both international and domestic travel growth across India and provides each 
of its kitchens substantial scalability to meet growing customer demand. 
    "Kitchen expansions form the bedrock of India Hospitality Corp's strategy 
to quickly make SkyGourmet the leading provider of airline catering services 
in India," noted Mr. Rick Foyston, India Hospitality's interim CEO and Founder 
Partner of Navis Capital Partners. "India's aviation industry is booming, and 
SkyGourmet is poised to capture market share by maintaining the highest 
standards of quality while opening new kitchens and expanding in key markets." 
    SkyGourmet now has operating units in the four major airport cities of New 
Delhi, Mumbai, Bangalore, and Chennai, with additional new kitchens coming on 
line in Hyderabad and Kolkata within the next six months. The company caters 
to major domestic airlines, namely Jet Airways, Kingfisher, Indian Airlines, 
Air India Express, and Jet Lite. Air France and Malaysian Airlines, some of 
the major international airlines operating out of India, are also SkyGourmet's 
customers. 
    Industry experts estimate domestic travel alone in India is set to grow 
25% per year for the next five years, prompting the Ministry of Civil Aviation 
to plan 500 fully operational airports by 2020 compared with just 80 operating 
presently. Today, only 30% of India's airports account for nearly 94% of total 
airline traffic. 
    IHC is excited about India's multi-faceted hospitality and food service 
industries that provide a plethora of consolidation opportunities. It will 
continue to evaluate additional opportunities and deploy capital selectively 
into projects with attractive risk-return profiles. Given the rapidly changing 
dynamics within the Indian hospitality, leisure and food service sectors, 
inputs affecting the Company's capital deployment decisions may alter its 
acquisition evaluation. In that context and with several other possible 
investment opportunities under evaluation, the Company will not be acquiring 
the Nirula's chain of restaurants, which was under consideration during the 
year. Nirula's CEO, Samir Kuckreja and Navis Capital Partners continue to have 
majority ownership of the company. 
 
    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.  IHC was originally created as a blank 
check company and was sponsored and advised by Hayground Cove Asset Management 
LLC, a New York-based investment management firm. 
    In July 2007, IHC closed on the acquisition from Navis Capital Partners 
and its Affiliates of India-based Mars Restaurants Private Limited ("Mars"), 
an emerging hotel and restaurant company, and SkyGourmet Catering Private 
Limited ("SkyGourmet"), 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. 
    IHC generated approximately US $30 million in unaudited consolidated 
revenues in fiscal year ended March 31, 2007, an approximate 50% increase from 
2006. 
 
    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, Malaysian Airlines and Air France. It has operations in 
Mumbai, New Delhi, Bangalore, and Chennai. 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-                             02/11/2008 
    /CONTACT:  investor, William Schmitt, ICR Inc., [phone]; or Mumtaz 
Naseem, Nominated Adviser and Broker: Deutsche Bank, [phone] /