Restructuring Update

Monday 18 July 2011

Southern Cross Healthcare Group PLC

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

Restructuring Update

Southern Cross welcomes the announcement issued today by NHP, its largest landlord with 249 homes. The announcement provides further positive clarification on the restructuring process and the Company is encouraged by NHP's continued commitment to the welfare and care of residents.

In today's announcement, NHP has confirmed that at the end of the period of consensual restructuring, it plans to partner with Court Cavendish in the setting up of a new operating company for its homes. NHP has also said that it will continue to rely on the existing Southern Cross staff who manage its homes together with the back office services delivered by the Company's existing infrastructure in order to ensure continuity of both care and operations.

Jamie Buchan, Chief Executive of Southern Cross, said:

 "Today's announcement from NHP is very positive indeed and should be welcomed by staff, residents and relatives as being in the interests of preserving resident care. Together with my team, I look forward to working closely with NHP and Court Cavendish in order to ensure a professional and seamless handover of operations."

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