IHC Provides Business Unit Update

India Hospitality Corp. Posts Strong Growth in Fiscal Third Quarter

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. October 14, 2008

FEBRUARY 14, 2008. India Hospitality Corp. (IHC), today provided its shareholders with an operational update for fiscal third quarter ended December 31, 2007. India's demand-driven economy continued to benefit IHC's core businesses in the quarter, highlighted with a year over year 83% increase in meals served at SkyGourmet (Sky) and 9% growth in same store sales at Mars Restaurants (Mars).

Operating Outlook

"India Hospitality remains firmly committed to exceeding the forecasts it presented to its investors on its July 2007 investor road show," said Chairman of the Board Jason Ader. "IHC is at the nexus of three rapidly growing consumer industries in India and is well positioned to capitalize on the continued increase in demand in the hospitality and travel sectors of the economy."

The company will continue to execute its growth strategy into 2008 and beyond:

o Gain market share in the airline catering industry through new kitchen openings utilizing state of the art technology and signing new clients

o Identify and execute accretive hotel development opportunities

o Capitalize on the 35% annual increase in shopping mall square footage in India to expand IHC's leading food service brands

o Implement operational efficiencies across the company's businesses

o Evaluate and execute high return acquisitions in each of the company's business segments

o Maintain and grow the infrastructure required by IHC's growing hospitality company

o Hire a new Chief Executive Officer to lead the growth of IHC's businesses in the years to come

Business Segment Overview

"We are very pleased with the performance of each of IHC's business segments," commented Rick Foyston, IHC interim CEO. "SkyGourmet continues to expand its capacity into key markets, top line growth at Mars remains solid, and Gordon House has a strong pipeline of accretive growth opportunities."

SkyGourmet

SkyGourmet's airline catering business experienced an 83% year over year surge in total meals served during the quarter.

Sky is one of the leading two flight caterers in India's booming aviation sector and the company anticipates continued growth in capacity, volumes and cash flows. Sky added a new customer in the quarter -- Jet Lite -- to which the company supplies snack boxes from its kitchens in Mumbai, Delhi and Bangalore. The company now serves major domestic and international carriers such as Kingfisher, Jet Airways, Indian Airlines and Air France.

Sky's cash flow margins contracted slightly in the quarter due to pre- opening expenses at the company's newest kitchen units. IHC expects margins to normalize as capacity utilization increases over time.

SkyGourmet continues to pursue its long-term growth strategy and is in the process of expanding its Air Catering Unit in Mumbai by 50% and its fourth and newest kitchen in Chennai opened in January 2008. The company's 2008 pipeline already includes two new kitchens in Hyderabad and Kolkata, the addition of which will ensure that Sky has operations in all six key markets where over 90% of the current Indian air passenger traffic exists.

Mars Restaurants

Quarterly same store sales at Mars grew 9% over the prior year. Margins were impacted by higher input costs and increasing rents, factors that have impacted the Indian retail and food service sectors overall. Recent price increases at mars restaurants should offset the current quarter's food price increase and should benefit fiscal fourth quarter results. We are currently evaluating several new location opportunities for our Mars division with a focus on high returns on invested capital.

Gordon House Hotels

Revenue at Gordon House Hotels (GHH) grew 8% over the prior year. EBITDA margins were even with the prior year at 56%. Average Room Rates (ARR) and average occupancy at the Colaba property in Mumbai stood at $170 and 87%, respectively compared to an ARR of $121 and 81% occupancy.

Management is focused on capitalizing on the supply-demand imbalance in the lodging industry in India. GHH currently has one owned and one managed hotel, with three new properties in the pipeline. The company also owns an ideally located four-acre parcel of land adjacent to the Delhi Airport.

Notice of Annual Meeting

India Hospitality Corp. will hold its Annual General Meeting of shareholders on March 14, 2008 to approve the re-appointment of certain directors to the board of directors of IHC. In connection with the Annual General Meeting, shareholders will receive, among other things, a letter from the Chairman of the board, notice of the Annual General Meeting, and a performance report delivered by the Chief Executive Officer of IHC.