Source Capital, Inc. Increases Quarterly Distribution by 25% to $.75

The Board of Directors of Source Capital, Inc.

, today approved a 25% increase in the regular quarterly distribution on the Company's common stock to 75 cents a common share, payable Mar. 15, 2011, to shareholders of record as of the close of business Feb. 25, 2011. The previous rate was 60 cents a common share. Directors also declared a regular quarterly income dividend of 60 cents a preferred share, payable Mar. 15, 2011, to shareholders of record as of the close of business Feb. 25, 2011.