Fairfax Declares Annual Dividend

TORONTO, ONTARIO--(MARKET WIRE)--Jan 6, 2009 -- Fairfax Financial Holdings Limited (Toronto:FFH.TO - News)(NYSE:FFH - News) announces that it has declared a dividend of US$8.00 per share on its outstanding multiple voting and subordinate voting shares, payable on January 27, 2009 to shareholders of record on January 20, 2009. Applicable Canadian withholding tax will be applied to dividends payable to non-residents of Canada.

Consistent with the practice of prior years, the amount of this dividend was determined taking into account the current operating results of Fairfax and its insurance and reinsurance companies and the current cash position at the Fairfax holding company. Consequently, as each year's circumstances are different, this dividend should not be regarded as indicative of the amount of any future annual dividends.

Fairfax Financial Holdings Limited 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
     (416) 367-4946 (FAX)
      
     Media Contact:
     Fairfax Financial Holdings Limited
     Paul Rivett
     Chief Legal Officer
     (416) 367-4941
     (416) 367-4946 (FAX)