The Fairholme Partnership, L.P. ("Partnership") today announced that it delivered 33% net returns during its inaugural year ending December 31, 2013.1,2 The Partnership launched in January 2013 with seed capital from employees of its investment adviser, Fairholme Capital Management, L.L.C. ("Fairholme"), and had approximately $206 million in assets as of January 1, 2014. The Partnership is designed for institutional investors who share Fairholme's contrarian, disciplined, and patient investment approach. Advised by Fairholme and its Chief Investment Officer Bruce R. Berkowitz, the Partnership pursues a focused, event-driven, fundamental value strategy.

The Partnership seeks long-term growth of capital by investing in a focused portfolio of equity and fixed-income securities acquired at prices well below Fairholme's estimate of intrinsic value. Such securities may include preferred and common stock, bank debt, convertible securities and bonds, warrants, and interests in real estate investment trusts. The Partnership may also engage in opportunistic hedges and invest in special situations such as reorganizations, recapitalizations, restructurings, and other corporate transactional events.

The Partnership offers investors three subscription options: Series One has a rolling five-year lock-up with a 15% incentive allocation; Series Two has a rolling three-year lock-up with a 20% incentive allocation; and Series Three has a rolling one-year lock-up with a 25% incentive allocation. The Partnership is not subject to a management fee and each series will have a high-water mark. The minimum investment amount is $5 million, subject to waiver in the sole discretion of the general partner of the Partnership. Non-U.S. persons and U.S. tax-exempt investors may access the Partnership by investing in an offshore fund available to such investors.

The Partnership portfolio may shift across asset classes and market sectors from time to time based upon the adviser's assessment of the relative attractiveness of investment opportunities, general market and economic conditions, fundamental values of securities, as well as expected future returns of investments.

About Fairholme Capital Management, L.L.C.

Fairholme Capital Management is a value-oriented, long-term focused investment adviser providing advisory services to over 170,000 mutual fund shareholders and individual and institutional clients worldwide. We invest in companies whose securities are trading below our estimate of intrinsic value and hold them until we believe the market accurately reflects their fair value. We adhere to the fundamental investment principles of Benjamin Graham & David Dodd.

Founded in 1997 by Bruce R. Berkowitz, Fairholme is based in Miami, Florida. As of January 2014, Fairholme has approximately $11 billion in assets under management across three public mutual funds, a separately managed account program, and The Fairholme Partnership (and its offshore feeder fund).

In 2010, Mr. Berkowitz was selected as Morningstar's® first Domestic-Stock Fund Manager of the Decade. The Fund Manager of the Decade award is given for "delivering outstanding long-term performance, aligning interests with shareholders, and demonstrating the courage to differ from consensus."

1 This document does not constitute an offer to sell or the solicitation of an offer to buy, which may only be made at the time a qualified offeree receives a confidential private offering memorandum, which contains important information (including investment objective, policies, risk factors, fees and tax implications), and only in those jurisdictions where permitted by law. Investors should not construe the contents of this document as legal, tax, investment or other advice. The Fairholme Partnership ("Partnership") limits its investors to those meeting the definitions of accredited investor in Regulation D under the Securities Act of 1933 ("Securities Act") and qualified purchaser under the Investment Company Act of 1940 ("1940 Act"). Interests in the Partnership ("Interests") are being offered in reliance on an exemption from the registration requirements of the Securities Act. The Securities and Exchange Commission has not passed on the merits of the offering or given its approval. The Partnership is not registered under the 1940 Act and therefore the offering is not subject to the investment protections of the 1940 Act. Investing in Interests involves risk, and investors should be able to bear the loss of their investment. Interests have limited liquidity. No secondary market for Interests is expected to develop, and there are legal restrictions on an investor's ability to withdraw, transfer, and resell Interests. The investment program of the Partnership is speculative and involves risk. The investment portfolio of the Partnership is expected to be concentrated on a limited number of issuers thereby increasing the risk to the Partnership of losses due to adverse events affecting any issuer in the portfolio. There can be no assurance that the Partnership's investment objective will be achieved.

2 2013 performance for Series One Interests is an unaudited estimate based on the performance of The Fairholme Partnership from January 1, 2013, through December 31, 2013. Performance is net of all Series One expenses (including brokerage and other trading costs) and incentive fees. Past performance is not an indication of future performance. The investment return and principal value of an investment in the Partnership will fluctuate so that an investor's interests in the Partnership, when redeemed, may be worth more or less than their original cost. The Partnership's performance may be volatile. Current performance of the Series One Interests may be lower or higher than the performance quoted. Performance of the Series will differ.

Sard Verbinnen & Co.
George Sard or Paul Scarpetta, 212-687-8080