Source Capital Lowers Dividend from $0.75 to $0.70

The Board of Directors of Source Capital, Inc.

, today declared a regular quarterly distribution of 70 cents a common share, payable March 15, 2012, to shareholders of record as of the close of business Feb. 24, 2012. This distribution reflects a reduction from 75 cents paid in the prior quarter. The reduction in the distribution rate reflects the volatility in the overall stock market and the resulting drop in the value of the Company's portfolio and share price during 2011.