Clarification re Media Comment

Friday 10 June 2011

Southern Cross Healthcare Group PLC

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

Clarification re Media Comment

Southern Cross, the UK's largest care home operator, wishes to make clear that there have been no decisions taken regarding the closure of any of its care homes. The Company remains in discussions with its landlords and banks to ensure the continuity of care for all residents.

As both the Company and the Government have stated this week, no residents will find themselves homeless or without care; everyone involved in the restructuring process is, and remains, committed to the continuity of quality care for all of our 31,000 residents.

Christopher Fisher, Chairman of Southern Cross, said:

"No decision has been taken to close any of our homes. We recognise that the current situation and continued media speculation will have caused concern to residents in Southern Cross care homes, and their relatives, and we apologise for this. Our primary concern in this matter remains the welfare of the residents living in our homes. The financial restructuring will not affect the provision of quality care in any of our homes."

Enquiries:

About Southern Cross

Southern Cross is, in terms of number of beds, the largest UK provider of care home services for the elderly and a major provider of specialist services for people with physical and/or learning disabilities. The Group's care homes for the elderly operate under two distinct brands: Southern Cross Healthcare and Ashbourne Senior Living. Both brands provide a range of social and personal care services and nursing care services for elderly people with physical frailties and differing forms of dementia. The Group's specialist services operate under the Active Care Partnerships brand and provide long-term care services for people with physical and/or learning disabilities and for younger people with complex forms of challenging behaviour.

Southern Cross is focused on providing high quality care in well invested facilities, seeking to be the home of choice in each local community in which it operates. The Group provides care services for most of the local authorities in the UK which, together with the NHS, represent circa 78% of the Group's revenues. Its care home portfolio is largely purpose-built with a high percentage of single occupancy rooms and rooms with ensuite bathrooms.