The Fairholme Focused Income Fund Announces Dividend

On December 30, 2011, the Fairholme Focused Income Fund
(NASDAQ:FOCIX) distributed an Ordinary Income dividend of $0.24543
per share to shareholders of record as of December 29, 2011. The
Fairholme Focused Income Funds Net Asset Value (NAV) was reduced by
the amount of the distributions. The Record, Ex-Dividend, Payable
Dates, and Dollars-Per-Share are as follows: THE FAIRHOLME FOCUSED
INCOME FUND Distribution Type
Record Date Ex-Dividend Date Payable Date
Dollars-Per-Share Ordinary Income December 29, 2011
December 30, 2011 December 30, 2011 $0.24543 Past
performance is not a guarantee of future results. The Fairholme
Focused Income Funds investment objectives, risks, charges, and
expenses should be considered carefully before investing. The
prospectus contains this and other important information about the
Fund, and it may be obtained by calling Shareholder Services at
1-866-202-2263 or visiting our website www.fairholmefunds.com. Read
it carefully before investing. Investing in the Fairholme Focused
Income Fund (the Income Fund) involves risk including loss of
principal. The Income Fund is a non-diversified mutual fund, which
means that the Income Fund invests in a smaller number of
securities when compared to more diversified funds. This strategy
exposes the Income Fund and its shareholders to greater risk of
loss from adverse developments affecting portfolio companies. The
Income Funds investments are also subject to interest rate risk,
which is the risk that the value of a security will decline because
of a change in general interest rates. Investments subject to
interest rate risk will usually decrease in value when interest
rates rise and rise in value when interest rates decline. Also,
securities with long maturities typically experience a more
pronounced change in value when interest rates change. Debt
securities are subject to credit risk (potential default by the
issuer). The Income Fund may invest without limit in lower-rated
securities. Compared to higher-rated fixed income securities,
lower-rated debt may entail greater risk of default and market
volatility.