Mr. John Varnell reports

FAIRFAX ANNOUNCES COMPLETION OF KENNEDY WILSON TAKE-PRIVATE TRANSACTION

Fairfax Financial Holdings Ltd.'s previously announced acquisition of Kennedy-Wilson Holdings, Inc. by an entity affiliated with a consortium led by William McMorrow, chairman and chief executive officer of Kennedy Wilson, certain other senior executives of the company (collectively, the "KW Management Group"), and certain affiliates of Fairfax for $10.90 (U.S.) per share in cash pursuant to a merger agreement, has been completed. The KW Management Group, led by Mr. McMorrow, has effective and operational control of and continues to lead and have ultimate responsibility for Kennedy Wilson and its subsidiaries while Fairfax holds a majority of the economic interest.

In addition, an affiliate of the consortium entered into a term loan credit agreement pursuant to which it obtained a three-year $1.3-billion (U.S.) term loan facility. In connection with the credit agreement, Fairfax agreed to provide a standby guarantee pursuant to which Fairfax would agree, upon the occurrence of certain events under the credit agreement, to guarantee in favour of the lenders the obligations of the borrower under the credit agreement.

About Fairfax Financial Holdings Ltd.

Fairfax Financial is a holding company which, through its subsidiaries, is primarily engaged in property and casualty insurance and reinsurance and the associated investment management.

We seek Safe Harbor.