Fairholme Funds, Inc. - Fairholme Fund Will Re-Open to New Investors

The Board of Directors of Fairholme Funds, Inc. has approved the re-opening of The Fairholme Fund

to new investors. Effective August 19, 2013, The Fairholme Fund will offer its shares to new investors and begin accepting orders for the purchase of Fund shares from new investors. The decision to re-open the Fund to new investors was based on the expectation that, given the Fund's current holdings, investment opportunities, and liquidity, inflows from new investors can be invested in a manner that is consistent with the Fund's investment objective and strategies. The Fund retains the right to suspend the sale of its shares to investors in the future.