Fairfax Completes $250 Million Offering of Preferred Shares

TORONTO, ONTARIO, Oct 05 (MARKET WIRE) --
(Note: All dollar amounts in this press release are expressed in Canadian
dollars.)

Fairfax Financial Holdings Limited (TSX: FFH)(NYSE: FFH) has completed
its previously announced public offering of Cumulative 5-Year Rate Reset
Preferred Shares, Series C (the "Series C Shares") in Canada. As a result
of the underwriters exercising their $50 million option in full, Fairfax
issued an additional 2,000,000 Series C Shares for a total issue of
10,000,000 Series C Shares and total gross proceeds of $250 million. Net
proceeds of the issue, after commissions and expenses, are approximately
$243 million.

The Series C Shares were sold through a syndicate of Canadian
underwriters led by Scotia Capital, RBC Capital Markets and BMO Capital
Markets, and that also included CIBC World Markets Inc., TD Securities
Inc., National Bank Financial Inc., Cormark Securities Inc., GMP
Securities L.P., Desjardins Securities Inc. and HSBC Securities (Canada)
Inc.

Fairfax intends to use the net proceeds of the offering to augment its
cash position, to increase short term investments and marketable
securities held at the holding company level, to retire outstanding debt
and other corporate obligations from time to time, and for general
corporate purposes.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The securities have not been
and will not be registered under the United States Securities Act of 1933.

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

Contacts:
Fairfax Financial Holdings Limited
Greg Taylor
Chief Financial Officer
(416) 367-4941

Media Contact:
Fairfax Financial Holdings Limited
Paul Rivett
Chief Legal Officer
(416) 367-4941

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