India Hospitality Corp. Reports Preliminary 1Q0...

India Hospitality Corp. Reports Preliminary Fiscal First Quarter 2009 Results

            F1Q09 Revenues Up 52%, EBITDA Increases 46% over Prior-Year Period

    LONDON, Sept. 19 -- India Hospitality Corp. (LSE: IHC, IHC or India Hospitality) today 
announced preliminary results for IHC for the fiscal quarter ended June 30, 2008.  Fiscal 
2008 audited results will be released in a separate filing.

Fiscal first quarter 2009 highlights

    -- Total revenue increased 52% year-over-year to $10.5 million. 

    -- EBITDA increased 46% year-over-year to $1.9 million.

    -- IHC's Board appointed Ravi Deol as Chairman and Chief Executive Officer of Mars 
       Restaurants as part of a major initiative to rapidly grow its hotels and food services 
       businesses.

    -- IHC also announced its intention to launch a $200 million hospitality fund to be led by 
       Mr. Deol to develop and/or acquire Indian hospitality properties.  IHC will receive a 
       management fee through an advisory agreement between the fund and Mars.


     "We are pleased to see continued strong growth in the fiscal first quarter," said IHC 
acting Chief Executive Officer Richard Foyston.  "SkyGourmet's growth was realized 
despite emerging weakness in the aviation sector as Sky continued to gain market share.  
Looking ahead, we expect the economic environment to remain difficult over the next 
couple of quarters, but we anticipate continued growth and we will continue our efforts to 
manage costs and maintain margins."

    Fiscal First Quarter 2009 Preliminary Results

    For the fiscal quarter ended June 30, 2008, India Hospitality reported unaudited 
revenue of $10.5 million -- a 52% increase from the prior-year period.  Top line growth 
was boosted by an approximate 65% increase in revenue from IHC's SkyGourmet division 
to $8.7 million, aided by increased demand for meals, as well as the opening of a new 
kitchen during calendar 2008 and a significant increase in capacity at the company's Delhi 
Air Catering Unit at the end of the prior fiscal year.  Total meals served for the fiscal first 
quarter 2009 increased 57%.  

    Revenue at Mars Restaurants increased to $2.7 million, an 11% improvement over the 
prior-year period. The results at Mars were driven by a 17% increase in average room 
revenue (ARR) at the Gordon House Hotels and restaurant same-store sales increases of 
7%.  No new outlets were opened or closed during the quarter.

    Total combined adjusted EBITDA for India Hospitality for fiscal first quarter 2009 was 
$1.9 million compared to $1.3 million in the prior-year period, a 46% increase.  Margins 
expanded at both Mars Restaurants and SkyGourmet; however, consolidated margins 
decreased as a result of IHC parent company operating costs which began to be 
accounted for in July 2007 and were thus not a factor in prior-year results. 

    Liquidity and Balance Sheet

    As of June 30, 2008, IHC has approximately $31.9 million in long-term debt on its 
balance sheet and $13.5 million of cash and cash equivalents -- approximately $7.3 
million of which is held at the IHC corporate level.  

    About India Hospitality Corp.

    India Hospitality Corporation's mission is to acquire and successfully operate Indian 
businesses or assets in the hospitality, leisure, tourism, travel and related industries, 
including but not limited to hotels, resorts, timeshares, serviced apartments and 
restaurants.
    
IHC operates through two wholly owned subsidiaries, Mars Restaurants Private Limited -- 
an emerging hotel and restaurant company -- and SkyGourmet Catering Private Limited, a 
leading airline catering company.  The companies are headquartered in Mumbai and have 
over 1,700 employees across their facilities in India.

    For Further Information Contact:

    Media Contact: Mutual Image & Events Management Pvt. Ltd.
    Harsh Wardhan
    [phone]

    Investor Relations Contact: ICR Inc.
    William Schmitt
    [phone]

    Nominated Adviser and Broker: Deutsche Bank AG
    Mumtaz Naseem
    [phone]

    Deutsche Bank AG 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.



           Unaudited Revenue and EBITDA for the Periods Ended June 30 

                         Mars 
    (in U.S. $mm)    Restaurants    SkyGourmet      Combined *    Year/Year  
                   F1Q08   F1Q09    F1Q08  F1Q09   F1Q08   F1Q09    Change 
    Revenue        $2.4    $2.7     $5.3   $8.7    $6.9    $10.5     52% 
    EBITDA         $0.3    $0.4     $1.0   $1.6    $1.3     $1.9     46% 

    * Combined revenue includes intercompany eliminations and IHC
 operating expenses for F1Q09.



    Cautionary note regarding forward-looking statements

    This preliminary earnings announcement contains certain forward-looking statements 
with respect to the financial condition, results of operations and business of India 
Hospitality Corp. (the Company), and certain plans and objectives of the board of directors 
of the Company.  These forward-looking statements can be identified by the fact that they 
do not relate only to historical or current facts.  Forward-looking statements often use 
words such as "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", 
"will", "may", "should", "would", "could" or other words of similar meaning.  These 
statements are based on assumptions and assessments made by the board of directors of 
the Company in light of their experience and their perception of historical trends, current 
conditions, expected future developments and other factors they believe appropriate.  By 
their nature, forward-looking statements involve risk and uncertainty, and the factors 
described in the context of such forward-looking statements in this announcement could 
cause actual results and developments to differ materially from those expressed in or 
implied by such forward-looking statements.

    Should one or more of these risks or uncertainties materialize, or should underlying 
assumptions prove incorrect, actual results may vary materially from those described in 
this release.  India Hospitality Corp. assumes no obligation to update or correct the 
information contained in this release, whether as a result of new information, future events 
or otherwise, except to the extent legally required.

    The statements contained in this announcement are made as at the date of this 
release, unless some other time is specified in relation to them, and service of this 
announcement shall not give rise to any implication that there has been no change in the 
facts set out in this announcement since such date.  Nothing contained in this 
announcement shall be deemed to be a forecast, projection or estimate of the future 
financial performance of the Company except where expressly stated.


    CONTACT:  Media, Harsh Wardhan, Mutual Image & Events Management Pvt. Ltd., 
[phone]; or investors, William Schmitt, ICR Inc., [phone]; Nominated 
Adviser and Broker: Deutsche Bank AG, Mumtaz Naseem, [phone]