REG-Lancashire Hld Ltd: Holding(s) in Company

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES(i)

1. Identity of the issuer or the underlying LANCASHIRE HOLDINGS LIMITED
issuer of existing shares to which voting
rights are attached:(ii)

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

An acquisition or disposal of voting rights X

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

An acquisition or disposal of instruments with similar economic
effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to SAB CAPITAL MANAGEMENT, LP
the notification obligation: (iii)

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

5. Date of the transaction and date 16 JUNE 2009
on which the threshold is crossed or
reached: (v)

6. Date on which issuer notified: 17 JUNE 2009

7. Threshold(s) that is/are crossed BELOW 3%
or reached: (vi, vii)

8. Notified details:
A: Voting rights attached to shares (viii, ix)

Class/type of Situation previous Resulting situation after
shares to the triggering the triggering
transaction transaction

if possible Number Number Number Number of % of voting
using of of of voting rights (x)
the ISIN CODE Shares Voting shares rights
Rights
Direct Direct Indirect Direct Indirect
(xi) (xii)

BMG5361W1047 5,274,419 5,274,419 BELOW 3% BELOW 3%

B: Qualifying Financial Instruments

Resulting situation after the triggering transaction

Type of financial Expiration Exercise/ Number of voting % of voting
instrument date Conversion Period rights that may be rights
(xiii) (xiv) acquired if the
instrument is
exercised/
converted.

C: Financial Instruments with similar economic effect to Qualifying Financial
Instruments xv, xvi

Resulting situation after the triggering transaction

Type of Exercise Expiration Exercise/ Number of voting % of voting
financial price date Conversion rights instrument rights (xix, xx)
instrument (xvii) period refers to
(xviii)

Nominal Delta

Total (A+B+C)

Number of voting rights Percentage of voting rights

BELOW 3% BELOW 3%

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

EACH BELOW 3%:
SAB CAPITAL PARTNERS, LP
SAB CAPITAL PARTNERS II, LP
SAB OVERSEAS MASTER FUND, LP

Proxy Voting:

10. Name of the proxy holder:

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

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

13. Additional information: Notification using the total voting
rights figure of 173,069,895

14. Contact name: PAUL CASSIDY

15. Contact telephone number: 212-457-8053 (USA)

For notes on how to complete form TR-1 please see the FSA website.

END