Fundraising & AIM Admission

India Hospitality Corp.
01 August 2006


NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION IN OR INTO THE UNITED STATES OF
AMERICA

For Immediate Release                                              1 August 2006


                             INDIA HOSPITALITY CORP



     $100M Fundraising Makes New AIM Entrant Largest SPAC Focused On India

   •Targeting  multiple acquisitions in hospitality, leisure, tourism, travel
    and related industries
   •Management team headed by Jason Ader - proven track record in hospitality
    sector investment and research - previously Senior Managing Director with
    Bear Stearns & Co before founding New York based investment manager
    Hayground Cove
   •Experienced management team with 'on the ground' presence and sourcing
    network - key to successful diligence and investment selection
   •Focus on fast-growing Indian cities and top tourist destinations in India
    -non-luxury markets overlooked by major players
   •India's GDP has recently grown at 7-8%, expected to continue
   •India's middle class estimated at 300m in 2005, expected to grow to 500m
    by 2010 - greater purchasing power allied to more budget airline entrants
    underpins significant domestic air travel growth expectations - further
    fuelling hospitality growth
   •Attractive growth potential due to significant sector demand/supply
    imbalance - recent Government initiatives to address shortage of hotel
    rooms, especially ahead of the 2010 Commonwealth Games
   •Dealings due to start on AIM today
   •Deutsche Bank AG London acting as NOMAD

Commenting on the fundraising and admission to AIM, CEO Jason Ader said 'the
$100m raised shows confidence in the opportunity to generate superior
shareholder returns from our targeted area of the Indian hospitality market.'

Contact:  

Mark Edwards/ Richard Oldworth 
Buchanan Communications                                  +(44) 207 466 5000



                            INDIA HOSPITATLITY CORP

                 $100 MILLION FUND RAISING AND ADMISSION TO AIM


India Hospitality Corp ('IHC' or 'the Company') is pleased to announce that it
has raised $100 million and dealings are due to commence on AIM today. Nominated
Adviser and Broker to the Company is Deutsche Bank AG London



PROPOSED BUSINESS


IHC intends to use the funds raised to acquire an Indian business, businesses or
assets focused on the hospitality, leisure, tourism, travel and related
industries, including but not limited to hotels, resorts, timeshares, serviced
apartments and restaurants. While potential acquisitions could come from any of
these sectors, IHC intends to focus primarily on the hospitality industry. These
markets in India, and particularly the hospitality industry, are high-growth,
underserved and fragmented, and they offer profit margins, returns on capital
and cash flows that are among the most attractive in the world. IHC intends to
place emphasis on acquiring businesses in fast-growing Indian cities and top
tourist destinations in India. IHC believes that the predominantly local
hospitality businesses serving these segments have generally not pursued
aggressive growth strategies, but instead have followed an own-and-manage model
as opposed to the lease or franchise model employed by hospitality industry
leaders. The Company believes opportunities exist to negotiate purchases
directly with these companies and their individual owners. In addition, IHC
believes that it will be able to use its management's expertise in operations
and financing to manage the businesses or assets which IHC may acquire, and to
deliver superior risk-adjusted returns for shareholders.


Strategy


IHC's strategy to focus on the non-luxury segment of the Indian hospitality
market is driven by the following key points:


   • At 7-8% GDP growth, India has one of the fastest growing economies in
    the world


   • Foreign direct investment in India's trade, hotels and restaurants
    industries is at a lowly 1% of total inflows to India despite being one of
    the fastest growing sectors


   • Government initiatives to promote sector investment


   • Indian hospitality industry is largely driven by domestic market,
    particularly domestic tourism which grew 13.7% CAGR between 2000 and 2004


   • Rapid expansion of Indian middle class - from 300m 2005 to 500m in 2010


   • Increasing disposable per capita income and growth in lost cost travel
    fuelling further growth in domestic tourism.


   • Current demand / supply imbalance with significant shortage of hotel
    rooms, particularly ahead of 2010 commonwealth Games.


   • Non-luxury segment of market is overlooked by sector major players -
    offering potentially superior shareholder returns.


                                   MANAGEMENT


Directors and Executive Officers

(for biographical details see Appendix)

The Company's current Directors and executive officers are as follows:

Name            Age   Position
------          ----- ----------
Jason N. Ader    38   Chief Executive Officer and Chairman of the Board of Directors
Andrew Sasson    36   Chief Operating Officer and Director
Raj Nandiwada    41   Vice President, New Business Development
Christa Short    33   Director
Pawan Munjal     51   Director
Anthony Juliano  39   Director
Manvinder Puri   51   Director
Rajeev Talwar(1) 51   Prospective Director



(1)    Mr. Talwar is not currently a member of the Board of Directors of the
Company. His appointment will only occur if and when he receives final approval
by the requisite Indian governmental agencies of his resignation from his
positions as Additional Director General, Ministry of Tourism and the Chairman
and Managing Director of India Tourism Development Corporation. There can be no
assurance that he will receive such approvals.



Investment Committee


IHC will form an investment committee to advise and consult with the Company's
management team with respect to its investment policies, financing and
leveraging strategies and investment guidelines. The investment committee will
provide the Company with a competitive advantage in analyzing and valuing
acquisition candidates through their experience, financial industry contacts and
investment ideas.


Experienced Management Team and Strong Local Network


The Company's executive officers and Directors, and Hayground Cove's ''on the
ground'' network in India, have extensive experience in the hospitality,
leisure, tourism, travel and related industries as executive officers,
principals or Directors in various enterprises throughout the world. Jason N.
Ader, the Company's Chief Executive Officer and the Chairman of the Board of
Directors, is the Chief Executive Officer of Hayground Cove Asset Management
LLC, a New York-based investment management firm with approximately $1.46
billion of assets across funds and managed accounts under management as of May
31, 2006. The funds of Hayground Cove in operation since January 1, 2004 had
returns of approximately 2.54x the returns on the S&P Hedge Fund Index from
January 1, 2004 through May 31, 2006. Mr. Ader has a strong asset management
record and, prior to founding Hayground Cove, was a Senior Managing Director at
Bear Stearns & Co.,Inc. where he performed equity and high yield research for
more than 50 companies in the gaming, lodging and leisure industries. Mr. Ader
was rated as one of the top ranked analysts by Institutional Investor Magazine
for nine consecutive years from 1994 to 2002. Members of the Company's
management team have, on average, approximately 13 years of experience in the
hospitality, leisure, tourism, travel and related industries. The Company's
management team has a successful track record of completing large-scale
acquisitions and minority investments in businesses competing in the
hospitality, leisure, tourism, travel and related industries. The Company's
management team's experience and familiarity with the hospitality, leisure,
tourism, travel and related industries is an important asset that will assist us
in implementing the Company's business strategies and pursuing its growth
opportunities. The Company will serve as Hayground Cove's only vehicle for
direct, private investments in the Indian hospitality sector.


The Company's management team possesses broad industry knowledge and core
competencies that the Company believes will enable it to identify attractive
potential targets. In addition, Banyan Tree Capital and Hayground Cove's network
of professionals in India has a wide range of contacts that the Company expects
will help it to identify prospective acquisition candidates.


                                ADMISSION TO AIM


Dealings on AIM are due to start today (1 August 2006)


APPENDIX


Jason N. Ader is the Company's Chief Executive Officer and Chairman of the Board
of Directors. Mr. Ader founded and serves as the President and Chief Executive
Officer of Hayground Cove Asset Management LLC, a New York-based investment
management firm with approximately $1.46 billion of assets across funds and
accounts under management as of May 31, 2006. Mr. Ader has a strong asset
management record and, prior to founding Hayground Cove, served as a Senior
Managing Director at Bear Stearns & Co., Inc. from 1995 to 2003, where he
performed equity and high yield research for more than 50 companies in the
gaming, lodging and leisure industries. From 1993 to 1995, Mr. Ader served as a
Senior Analyst at Smith Barney covering the gaming industry. From 1990 to 1993,
Mr. Ader served as a buyside analyst at Baron Capital, where he covered the
casino industry. Mr. Ader has a B.S. degree in Economics from New York
University and a M.B.A. in Finance from New York University, Stern School of
Business.


Andrew Sasson is the Company's Chief Operating Officer and a member of the
Company's Board of Directors. In February 2006, Mr. Sasson acquired the land to
develop Spa Lofts, a modern loft condominium project in Las Vegas. Mr. Sasson
was a partner in Panorama Towers, a high-rise condominium in Las Vegas, from
January 2004 to November 2005, pioneering the Las Vegas high-rise market. Mr.
Sasson is currently developing a $500 million non-gaming boutique hotel as part
of MGM Mirage's $7 billion ''Project City Center.'' The hotel will serve as the
gateway into the

66 acre development and is being planned by a world renowned design team. Mr.
Sasson also owns and operates the Light Group, a $100 million Las Vegas
hospitality company known for its innovative and profitable venues including FIX
Restaurant and Bar at the Bellagio Hotel and Resort and Stack Restaurant at the
Mirage Resort and Casino, among others. Mr. Sasson has been a prominent
participant in the hospitality industry for the past 16 years.

Raj Nandiwada is the Company's Vice President, New Business Development. Mr.
Nandiwada has served as an analyst at Hayground Cove since March 2006. Mr.
Nandiwada founded and served as the Chief Executive Officer of Global Infozone
Inc. from June 2004 to March 2006. From March 1998 to June 2004, Mr. Nandiwada
served as Quantitative Analyst/Portfolio Engineer at Jacobs Levy Equity
Management, where he developed quantitative models, performed equity research
and traded equities. Mr. Nandiwada has a B.S. degree in Engineering from the
Regional Engineering College in Nagpur, India, a Master's Degree in Systems
Science from Louisiana State University and a M.B.A. in Finance from New York
University, Stern School of Business.


Christa Short is a member of the Company's Board of Directors. Ms. Short has
served as a Managing Director-Research Analyst at Hayground Cove since September
2003. From August 2001 to August 2003, Ms. Short was an equity research analyst
covering gaming, lodging and leisure industries at Bear Stearns & Co., Inc., and
she served as Vice President-Equity Research from January 2003 to August 2003.
Ms. Short has a B.B.A. degree in Finance from the University of Michigan and a
M.B.A. in Finance and Strategy from Kellogg Graduate School of Management at
Northwestern University.


Pawan Munjal is a member of the Company's Board of Directors. Mr. Munjal is the
Managing Director and Chief Executive Officer of Hero Honda Motors Limited,
positions which he has held since 2002. Mr. Munjal has also served as a director
of Hero Honda Motors Ltd., a joint venture between Hero Cycles Ltd. and Honda
Motor Co. of Japan. Over the years, he has played a significant role in its
development and growth. Under his leadership, Hero Honda Motors Ltd. Has emerged
as the world's No. 1 two-wheeler company from 2000 to 2005. As the chief
executive of one of the principal Hero Group Companies, Mr. Munjal is a
constituent of the ''Core Team'', which looks at growth and strategic planning
for the entire group of associated companies. He is currently a member of the
Society for Indian Automobile Manufacturers Committee on Two and Three-wheelers,
and a member of the World Economic Forum. A known figure in industry forums, Mr.
Munjal has been the chairman of several committees of the Confederation of
Indian Industry, or CII, including Technology and Innovation from 2004 to 2005,
Environment from 2003 to 2004, and Sports from 2000 to 2002. He was also
chairman of the Northern Region of the CII from 1996 to 1997. Mr. Munjal has a
B.E. degree in Mechanical Engineering from the University of Kurukshetra.


Anthony Juliano is a member of the Company's Board of Directors. Mr. Juliano has
served as the Executive Director, Dubai Investment Group, Global Real Estate and
Hospitality since March 2006. At Dubai Investment Group, he oversees a $2
billion U.S. real estate portfolio, including a $700 million hospitality
portfolio. From July 1999 to March 2006, Mr. Juliano held various senior
positions with GE Real Estate, including positions with the private equity
investment platform and large loan/mezzanine financing groups. Mr. Juliano was a
real estate attorney with Thacher Proffitt & Wood from 1993 to 1999 where his
practice concentrated on real estate finance and capital markets. He has a B.A.
degree in English from the State University of New York at Albany and a J.D.
degree from New York Law School.


Manvinder Puri is a member of the Company's Board of Directors. Mr. Puri has
served as Vice President of the Americas division of GHM Hotels since January
2004. He also served as General Manager of The Setai, South Beach, a GHM Hotel,
in Miami, Florida from January 2004 to January 2006. From January 2003 to
December 2003, Mr. Puri was the Group General Manager of the Hong Kong and
Shanghai Hotels, Limited, and he was the Senior Vice President of Operations at
Raffles International, a Singapore-based hotel chain, from March 2001 to
December 2002. For over 30 years, Mr. Puri has been associated with the finest
hotels around the world, including the Peninsula Hotels in Hong Kong, Raffles
Hotel in Singapore, The Fullerton Hotel in Singapore, Rosewood Hotels and
Resorts, British Airways Hotels, The Ritz Carlton in Hawaii, Halekulani in
Honolulu, the Fairmont Hotel in Chicago, and La Mansion in San Antonio. Mr. Puri
studied Food & Beverage Management and Financial Management at Cornell
University, as well as Business Management at Punjab University in his native
India.


Rajeev Talwar has been offered a position on the Company's Board of Directors.
He has resigned from his position in government on June 6, 2006; however his
resignation is pending approval. Mr. Talwar's appointment will only occur if and
when he receives final approval by the requisite Indian governmental agencies of
his resignation. There can be no assurance that he will receive such approvals.
Mr. Talwar is currently Additional Director General (Ministry of Tourism)
Government of India (since February 2005), CEO National Council for Hotel
Management and Catering Technology (since February 2005), and Chairman and
Managing Director India Tourism Development Corporation (since March 2005),
which manages government owned hotels, travel agencies and all duty free shops.
Prior to joining the Ministry of Tourism, Mr. Talwar was assigned to the Delhi
Government where he managed many portfolios and was Managing Director and Chief
Executive Officer of Delhi Tourism from August 2001 to December 2003 where he
was responsible for the implementation of the entire tourism policy of Delhi,
Secretary, Information and Public Relations from June 1999 to January 2005, and
Chairman and Managing Director Delhi Transportation Corporation from July to
December 2004. Mr. Talwar has been in the Indian Administrative Service (IAS)
since his induction in 1978. During his 28 year career he has had a cross
sectoral experience at a senior management level, and policy making level, as
well as widespread field experience. He has been involved on an all-India basis
in a variety of sectors of the economy, including: civil aviation, tourism,
labour, shipping, roads, inland waterways, coal and food processing. As a result
of his position, Mr. Talwar has had exposure to managements of a large number of
public and private sector enterprises along with statutory bodies in the
transport, tourism and infrastructure sectors. Mr. Talwar holds a B.A. (Honors
in History) and a M.A. (History) from St. Stephen's College, Delhi.




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