Care Home transfers to new operators

1 November 2011

Southern Cross Healthcare PLC

("Southern Cross", or "the Company" or "the Group")

Completion of third wave of Care Home transfers to new operators

Southern Cross announces that following approval of the relevant regulators, a further 417 care homes have transferred yesterday to new operators bringing the total number of transfers since 30 September to 705. The remaining homes are expected to transfer in mid-November.

Completion of these transfers represents a major step in winding down the Group's operations.

The Company also confirms that today, David Smith, Finance Director, leaves the Southern Cross Board to take up the position of Finance Director of HC-One.

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