Gate Gourmet Acquires Majority Interest in Skygourmet, Realizing Strategic Breakthrough Into Fast-Growing Indian Market

By Gate Gourmet, PRNE
Wednesday, November 10, 2010

Transaction seen as 'perfect fit' in gategroup's Asia growth strategy

ZURICH, November 11, 2010 - Gate Gourmet, a member of gategroup, today announced a joint venture
agreement with India Hospitality Corp. (IHC) to acquire a majority interest
in Skygourmet, the leading airline caterer in India with a presence in seven
major cities. For gategroup, this transaction is a major move into the Asian
market and a strategic breakthrough into the world's second-fastest growing
economy where airline traffic recently has been increasing at an average of
about 20 percent.

The transaction closed today and is not subject to any further regulatory
or shareholder approvals. gategroup has acquired a 74 percent interest in
Skygourmet and the consideration is a combination of cash and assumption of
debt. IHC, the parent company of Skygourmet, will retain a 26 percent
interest. Further details remain confidential.

"India's vibrant economy and its surging airline industry offer an
excellent opportunity," said gategroup CEO Guy Dubois. "The Skygourmet
acquisition fits perfectly with our growth strategy and with our objective to
add to shareholder value by increasing gategroup's presence in emerging
markets. We're confident this addition will grow our top line and improve
profit margins," he said.

"India is a greenfield expansion opportunity for gategroup, and we are
pleased that IHC retains an interest in Skygourmet to help us adapt to this
vibrant market," Dubois added.

Ravi Deol, IHC Managing Director and Chief Executive Officer, said: "It
is a win-win situation for both companies. This partnership with a category
leader will combine Skygourmet's leadership and knowledge of the Indian
market with Gate Gourmet's global best practices. We are confident the
combination will create significant value for the shareholders and provide
superior service to customers. IHC remains committed to the Indian market and
will continue its focus on developing consumer opportunities."

Skygourmet has a production capacity of more than 110,000 meals per day
and is the only one with catering facilities at all six of India's major
airports. It operates in Mumbai, Delhi, Bangalore, Chennai and Hyderabad and
is in the process of constructing a new unit in Kolkata. In Pune, Skygourmet
has a franchise arrangement.

Skygourmet has strong relations with the three major domestic airlines in
India: Jet Airways and its subsidiary, JetLite; Kingfisher Airlines; and
NACIL (Air India/Indian Airlines) serving them at most of their hubs and
other domestic locations. Gate Gourmet already has a unit in the Indian
resort town of Goa, which it acquired in 2007.

While Skygourmet primarily serves the domestic Indian market, gategroup
has significant upside potential to leverage its global network capability
and grow business with international carriers flying into India. In addition,
gategroup's expertise in onboard retailing will enhance Skygourmet's existing
buy-on-board offering to domestic carriers.

"We have long identified Asia as an area of enormous potential.
Establishing a major foothold in India, coupled with our recent moves to
expand at Tokyo's Narita and Haneda airports, demonstrate that gategroup is
executing on its growth strategy in that important region," Dubois said.

The joint venture will be overseen through a newly created Advisory
Board, which will include Guy Dubois, CEO; Mike Pooley, Group Vice President
and President Asia Pacific; and IHC's Promoter Directors Ravi Deol and
Sandeep Vyas.

Skygourmet was established in 2002. It employs approximately 2,600
people. Its flight kitchens are five years old or less and have capacity for
growth. "The business is well-run and cost-competitive with a strong market
position. We welcome Skygourmet and its employees to the gategroup corporate
family," Dubois said.

About gategroup:

gategroup is the leading independent global provider of onboard services
to companies that serve people on the move. gategroup comprises 11 brands:
deSter, eGate Solutions, Elan, Gate Aviation, Gate Gourmet, Gate Safe,
Harmony, Performa, potmstudios, Pourshins and Supplair.

The Group's world-class capabilities are focused in catering and
hospitality; provisioning and logistics; and onboard solutions. Its customers
include top airlines and railroads around the world that rely on gategroup's
expertise and solutions tailored to their guests, service offerings and
geographic regions. Shares of Zurich-based gategroup are traded on the SIX
Swiss Exchange under the symbol GATE. Please visit

About India Hospitality Corp.

India Hospitality Corp. is a diversified pan-Indian hospitality and
leisure company. The Company is present in airline catering, hotel and
restaurant segments, through its India-based subsidiaries WAH Restaurants
Private Limited (formerly Red Planet Restaurants Private Limited and Mars
Restaurants Private Limited) and SkyGourmet Catering Private Limited
("SkyGourmet"). Its stock trades on the London Stock Exchange's Alternative
Investment Market (AIM) under the symbol "IHC.". Please visit


This publication may contain specific forward-looking statements, e.g.,
statements pertaining to the growth of the Indian market and airline
industry, our ability to increase shareholder value, our presence in emerging
markets, our growth of revenue and profit margins, our growth of business
with international carries that fly to India, our ability to enhance
buy-on-board offerings and our ability to demonstrate growth in Asia or other
statements including terms like "believe", "assume", "expect" or similar
expressions. Such forward-looking statements are subject to known and unknown
risks, uncertainties and other factors which may result in a substantial
divergence between the actual results, financial situation, development or
performance of the company and those explicitly or implicitly presumed in
these statements. Against the background of these uncertainties readers
should not rely on forward-looking statements. The company assumes no
responsibility to update or revise any of these forward-looking statements or
to adapt them whether to reflect new information, future events, developments
or circumstances or otherwise.


gategroup CEO Guy Dubois and CFO Thomas Bucher invite media
representatives to participate in a telephone conference call regarding
latest developments.

The call will be held at 10:00 CET on Thursday, Nov. 11, 2010.

To participate, please call the dial-in number approximately 15 minutes
before the start time. Once dialed in, please follow the instructions given
over the phone.

    Direct dial-in numbers:
    +41-(0)-91-610-56-00 (Europe)
    +44-(0)-203-059-58-62 (UK)
    +1-866-291-4166 (USA - Toll-Free)
    +49-(0)-69-2-22-22-05-93 (Germany)


gategroup CEO Guy Dubois and CFO Thomas Bucher invite analysts and
investors to participate in a telephone conference call regarding latest

The presentation can be accessed via webcast and dial-in teleconference
at 15:00 CET on Thursday, Nov. 11, 2010.

To listen to the live presentation via teleconference, call the dial-in
number approximately 15 minutes before the start time. Once dialed in, please
follow the instructions given over the phone.

    Direct dial-in numbers:
    +41-(0)-91-610-56-00 (Europe)
    +44-(0)-203-059-58-62 (UK)
    +1-866-291-4166 (USA - Toll-Free)
    +49-(0)-69-2-22-22-05-93 (Germany)

Please note that media will not be able to ask questions during the Q&A
session for analysts and investors.

To link to the live webcast of the presentation, please go to the
"Investor Pack" tab under the "Investor Relations" section of the gategroup

For media: John Bronson of gategroup Corporate Communications, +41-43-812-2048, jbronson at; or Harsh Wardan of Mutual PR for IHC, +91-11-43620700, harsh at; or For investors: Laura Clavari of gategroup Investor Relations, +41-43-812-5496, invest at

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