Mr. John Varnell reports

FAIRFAX ANNOUNCES OFFERING OF SENIOR NOTES

Fairfax Financial Holdings Ltd. intends to offer, subject to market and other customary conditions, senior notes pursuant to exemptions from registration in the United States under Rule 144A and outside the United States pursuant to Regulation S under the U.S. Securities Act of 1933, as amended. Fairfax intends to enter into a registration rights agreement in connection with the offering.

Fairfax intends to use the net proceeds from this offering to refinance or repay outstanding debt or other corporate obligations of Fairfax and its subsidiaries and for general corporate purposes. This may include the redemption or repurchase of certain of Fairfax's previously issued senior unsecured notes. As of the date of this press release, Fairfax has not made any determination as to the specific debt or other obligations to be repaid, nor the amount, timing or method of repayment. Any repurchase of senior notes will be subject to market conditions, and there can be no assurance that senior notes will be available for repurchase on terms acceptable to Fairfax. Any proceeds not used to refinance or repay debt or other corporate obligations will be used to augment Fairfax's cash position, to increase short-term investments and marketable securities held at the holding company level and/or for other general corporate purposes.

The offering is being made solely by means of a private placement either to qualified institutional buyers pursuant to Rule 144A under the Securities Act, or to certain non-United States persons in offshore transactions pursuant to Regulation S under the Securities Act. The notes have not been registered under the Securities Act and the notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The notes have not been and will not be qualified for sale under the securities laws of any province or territory of Canada and may not be offered or sold directly or indirectly in Canada or to or for the benefit of any resident of Canada, except pursuant to applicable prospectus exemptions.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance, reinsurance, and investment management.

We seek Safe Harbor.