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					                                                                      FAIRHOLME CAPITAL MANAGEMENT, L.L.C.
                                                                      4400 BISCAYNE BLVD
                                                                      MIAMI, FLORIDA 33137

                                                                      TEL 305 358 3000

                                                                      FAX 305 358 8002




FOR IMMEDIATE RELEASE

FAIRHOLME CAPITAL MANAGEMENT, L.L.C.

June 2, 2013


FAIRHOLME ISSUES STATEMENT ON FANNIE MAE AND FREDDIE MAC PREFERRED STOCK


Fairholme Capital Management announced that its clients, including mutual fund shareholders of The Fairholme
Fund (NASDAQ: FAIRX) and The Fairholme Allocation Fund (NASDAQ: FAAFX), own approximately $2.4
billion par value of Fannie Mae and Freddie Mac Preferred Stock and are ready to help with a restructuring that
accelerates the return of meaningful investment to the secondary mortgage market.

Privately-owned Fannie Mae and Freddie Mac are critical to our nation’s economic security, lowering the cost and
increasing the availability of homeownership.

There are no substitutes. Fannie and Freddie currently purchase or insure 6 out of every 10 home mortgages in
America. Today, they are stronger than ever – enabling the United States Treasury to rapidly recoup its temporary
emergency investments in both entities.

Taxpayer dollars expended by the government during a time of national crisis will be fully repaid. And equitable
treatment of taxpaying shareholders, including community banks, insurance companies, and mutual funds holding
Preferred Stock, must be restored with dividends reinstated. Repaying taxpayer investments, restructuring
government guarantees, and restoring shareholder property are not mutually exclusive. This is the American way.

The time to restructure Fannie and Freddie is upon us. Sustaining our nation’s economic recovery requires it.

On behalf of the hundreds of thousands of Fairholme Funds shareholders who helped to rebuild American
International Group, Bank of America, CIT Group, General Growth Properties, MBIA Inc., and others after the
Great Recession – we stand ready to do our part.

Investing in the Funds involves risks including loss of principal. The Funds’ investment objectives, risks,
charges, and expenses should be considered carefully before investing. The prospectus contains this and other
important information about the Funds, and it may be obtained by calling Shareholder Services at 1-866-202-
2263 or visiting our website www.fairholmefunds.com. Read it carefully before investing.

For a copy of the top holdings for The Fairholme Fund, The Fairholme Focused Income Fund, and The Fairholme
Allocation Fund please click here. Portfolio holdings are subject to risk and may change at any time.

Fairholme Distributors, LLC (5/13)

Contact: Brian Ehrlich, Fairholme Capital Management, L.L.C. 305.358.3000

				
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