MIAMI -- (BUSINESS WIRE) --

Fairholme Capital Management L.L.C. on behalf of The Fairholme Fund (NASDAQ:FAIRX), The Fairholme Allocation Fund (NASDAQ: FAAFX), each a series of Fairholme Funds, Inc. and certain institutional accounts acquired over US$600 million of China Pacific Insurance (Group) Co. Ltd. common shares listed on The Hong Kong Exchange (HKSE:2601).

We appreciate this long-term opportunity to participate in one of the largest financial services groups in The People's Republic of China.

The transaction occurred through Goldman Sachs Group Inc's Hong Kong office.

Fairholme Capital Management, L.L.C. is registered with the United States Security and Exchange Commission as an investment adviser. As of January 7, 2011, the firm has approximately $22 billion of assets under management. Fairholme Funds, Inc. is registered with the United States Security and Exchange Commission. Investing in the mutual funds involves risk including loss of principal. Fairholme Funds' investment objectives, risks, charges, and expenses should be considered carefully before investing. The Fund's prospectus contains this and other important information about the Funds and may be obtained by calling shareholder services at 866-202-2263 or visiting our website at www.fairholmefunds.com. Read it carefully before investing.

The Fairholme Fund and The Fairholme Allocation Fund are non-diversified, which means that both invest in a smaller number of securities when compared to more diversified funds. Therefore, the Funds are exposed to greater individual stock volatility than a diversified fund. The Funds also invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. The allocation of investments among the different asset classes, such as equity or fixed-income classes, may have a more significant effect on the Funds' net asset value when one of these classes is performing more poorly than others. The Funds may invest in lower-rated securities, which may have greater market risk. These strategies expose the Funds and their shareholders to greater risk of loss from adverse developments affecting any portfolio company.

Shares of the Funds are offered through Fairholme Distributors, Inc., a member of The Financial Industry Regulatory Authority, which is the largest independent regulator for all securities firms doing business in the United States.

CONTACT:

Fairholme Capital Management L.L.C.
Bruce Berkowitz, 866-202-2263