Sale of Freeholds

21 April 2010

Southern Cross Healthcare Group PLC

Sale of Freeholds

Proceeds used to further reduce debt

Southern Cross Healthcare Group PLC (LSE: SCHE) ("Southern Cross" or the "Group"), announces the completion, on 20th April 2010, of the sale of its freehold interests in two care homes for a total cash consideration of £14.0m, all of which will be used to reduce the Group's borrowings. The Group will continue to operate these homes under long term leases.

Orchid View, Copthorne and Kingsfield, Faversham were sold to Citrus Copthorne Real Estate Limited and Citrus Faversham Real Estate Limited respectively, with an initial annual rent payable by Southern Cross of £1.12m. The gross asset value of the freehold interests divested is £14.0m resulting in neither a profit nor loss being recognised. The proceeds from the sale will be used to repay the £6.2m of drawings outstanding on the Group's development facility and the balance will be used to reduce the Group's term loan to £15.7m.

William McLeish

Company Secretary