1. Identity of the issuer or the underlying issuer of existing shares to which voting rights are attached:

Southern Cross Healthcare Group PLC

2. Reason for the notification   (please tick the appropriate box or boxes)

X

An acquisition or disposal of voting rights 

An acquisition or disposal of financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An event changing the breakdown of voting rights

Other (please specify): Initial notification under Transparency Directive

3. Full name of person(s) subject to the notification obligation:

  HBOS plc

4. Full name of shareholder(s) (if different from 3.):

See Section 9.  

5. Date of the transaction (and date on which the threshold is crossed or reached if different):

12 January 2009

6. Date on which issuer notified:

13 January 2009

7. Threshold(s) that is/are crossed or reached:

Direct/Indirect Holdings to above 5%

8. Notified details:

A: Voting rights attached to shares

Class/type of shares 

 if possible using the ISIN CODE

Situation previous to the Triggering transaction 

Resulting situation after the triggering transaction

Number of Shares 

Number of Voting Rights viii

Number of shares 

Number of voting rights ix

% of voting rights

Direct

Direct  x

Indirect xi

Direct

Indirect

Ord 1p Shares

ISIN

GB00B14RYC39

N/A

N/A

5,204,492

5,204,492

4,415,778

2.767%

2.348%

B: Financial Instruments

Resulting situation after the triggering transaction xii

Type of financial instrument 

Expiration date xiii

Exercise/ Conversion Period/ Date xiv 

Number of voting rights that may be acquired if the instrument is exercised/ converted. 

% of voting rights

N/A  

Total (A+B)

Number of voting rights

% of voting rights

9,620,270

5.115%

9. Chain of controlled undertakings through which the voting rights and/or the financial instruments are effectively held, if applicable xv:

Insight Investment Management (Global) Limited* ('IIMGL') - (Indirect) - 9,176,365 (4.879%)

IIMGL manages holdings on behalf of other HBOS Group companies, and other third parties external to the HBOS Group, under various discretionary management agreements.

(* - wholly owned subsidiaries of HBOS plc.)

Proxy Voting:

10. Name of the proxy holder:

N/A

11. Number of voting rights proxy holder will cease to hold:

N/A

12. Date on which proxy holder will cease to hold voting rights:

N/A

13. Additional information:

Notification using the total voting rights figure of

188,067,377

14. Contact name:

  Kenny Melville

15. Contact telephone number:

  0131 243 8671