Fairholme Makes it Clear That It's Not On Board with SPG Plan

Simon and General Growth are talking and Simon sent a letter earlier today. Now Bruce Berkowitz has chimed in again.

Fairholme Capital Management L.L.C. on behalf of The Fairholme Fund (Ticker: FAIRX) and The Fairholme Focused Income Fund (Ticker: FOCIX), each a series of Fairholme Funds, Inc. sent the attached letter to Adam Metz, CEO of General Growth Properties, Inc. ("GGP")

April 22, 2010

Mr. Adam Metz

Chief Executive Officer

General Growth Properties, Inc.

110 North Wacker Drive

Chicago, Illinois 60606

Dear Adam,

There have been some rumors about our intentions, so please allow me to reiterate that Fairholme is not willing to invest in GGP if equity ownership is concentrated in the hands of Simon Property Group ("SPG"), passive or not. Our concern is not antitrust or execution risk. We are not experts in those areas. We simply find the value proposition for the public float unsupportable assuming successful execution of anything like the SPG proposal. We continue to support a stand-alone GGP and hope for a long-term relationship.

Do not hesitate to call if I can be of assistance.

With kind regards,

Bruce R. Berkowitz

Founder and Managing Member

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