IHC Assumes Full Control of Operating Subsidiaries

India Hospitality Corp. Management Assumes Full Control of
                           Operating Subsidiaries

    MUMBAI, India, Aug. 5 -- India Hospitality Corp. ("IHC" or "the Company")
is pleased to announce that it has assumed direct operating control of its
Indian subsidiaries, after the disengagement of the operating agreements
between IHC's operating companies, Mars Restaurants Private Limited ("MRPL")
and SkyGourmet Private Limited ("Sky Gourmet") (together the "Operating
Companies") and Mars Catering Services Private Limited ("Mars Catering"), a
company controlled by Sanjay Narang, as of 31 July 2009 (the "Agreements").

    IHC entered into the Agreements with Mars Catering at the time of the
reverse acquisition and re-admission to AIM on 24 July 2007 and the
Agreements were scheduled to run for a minimum period of two years.

    Management
    Mr Sanjay Narang and Mr Arvind Ghei have now ceased to act as President
and Chief Financial Officer of the Operating Companies, respectively,
following the disengagement of the Agreements. Mr Narang will be appointed
the honorary non-executive chairman of Sky Gourmet, the airline catering
business, for a period of 2 years for the purpose of providing a smooth
transition and business continuity.

    Over the previous two quarters, the Company taken the necessary steps to
put in place an experienced operating and management team which will enable
the Company to continue to run and further develop its operations going
forward.

    Gordon House Brand
    IHC, via its subsidiary MRPL, has also entered into a licence agreement
with Mr Narang whereby it has allowed the continued use of the Gordon House
brand for the Hotel Sahar, Mumbai, owned by Mr Narang, for a further period
of 2 years. Additionally, the Company has extended the existing agreement
with Mr Narang for IHC to continue to directly manage the operations of the
Gordon House hotel in Colaba.

    The Directors believe that these hotels, along with its third hotel
property under the Gordon House brand in Pune, will be key drivers of the
Company as it develops a pan-India hotel portfolio.

    Restaurants
    Following the disengagement of the Agreements, the restaurant locations
being used by Not Just Jazz by the Bay, Pizzeria Pasta Bar and Just around
the Corner, owned by Sanjay Narang, will be transferred back to Mr Narang as
per the original contract.

    IHC has subsequently entered into an arrangement with Mr Narang whereby
IHC will franchise the aforementioned restaurant brands to Mr Narang for a
period of 1 year for a franchise fee in the initial three month period. This
arrangement will provide IHC with the opportunity to maintain a continued
presence of these restaurants in Mumbai whilst new locations are identified
within the city. IHC will continue to directly own and operate the Birdy's
bakery chain.

    Non Compete Agreement
    As a result of the disengagement of the Agreements, Mr Narang and his
affiliated entities shall be bound by exclusivity, non-compete and
non-solicit restrictions relating to Sky Gourmet for a period of 2 years.
This arrangement will enable the IHC management to continue to develop the
existing airline relationships alongside Mr Narang.

    IHC CEO, Ravi Deol, commented, "With this transition IHC moves to its
next phase and acknowledges the valuable contribution made by Sanjay Narang
and Arvind Ghei. Supported by a strong operating organisation, customers and
a clear future strategy, we look ahead with optimism."

    For Further Information Contact:

    India Hospitality Corp.
    Raghavendra Agarwal
    [phone]
    [e-mail]
    www.indiahospitalitycorp.com

    Nominated Adviser: Grant Thornton UK LLP
    Fiona Owen
    [phone]

    Broker: Noble & Company Limited
    Sunil Sanikop
    [phone]

    Media Contact: Mutual Public Relations Ltd.
    Harsh Wardhan
    [phone]

    Investor Relations Contact: Sand Hill RP
    Michael A. Tew
    [e-mail]
    [phone]

    About India Hospitality Corp.
    India Hospitality Corp. is a diversified pan-Indian hospitality and
leisure company. In July 2007, IHC closed on the acquisition 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, from Navis Capital Partners
and its affiliates.

    SOURCE  India Hospitality Corp.

    CONTACT: India Hospitality Corp., Raghavendra Agarwal, [phone],
[e-mail]; or Nominated Adviser: Grant Thornton UK LLP, Fiona Owen,
[phone]; or Broker: Noble & Company Limited, Sunil Sanikop,
[phone]; or Media Contact: Mutual Public Relations Ltd., Harsh
Wardhan, [phone]; or Investor Relations Contact: Sand Hill RP,
Michael A. Tew, [e-mail], [phone]