Bill Ackman's Pershing Square 1st Quarter Letter to Shareholders

Dear Shareholder:

The performance of the Pershing Square Holdings, Ltd. is set forth below1:

PSH has made significant progress since the end of the first quarter. NAV per share has increased by 9.4%, compared with the S&P 500’s performance over the same period of 2.9%. This outperformance was generated from approximately 720 basis points of net investment performance, and 220 basis points of accretion from the company tender offer. While 45 days is much too short a period to judge investment performance for a long-term strategy, we believe recent progress is reflective of actual business progress at PSH, and at our portfolio companies during this period. We highlight certain recent business and portfolio company developments below:

The completion of a $300 million company tender which reduced public shares outstanding by 9.5% at a discount to NAV of 20.5%; The removal of PSH’s 4.99% ownership limit which creates the potential for additional demand for PSH shares; The election of two new independent directors, Bronwyn Curtis and Richard Wohanka, to the PSH Board; The addition of Dawn Lepore to the Pershing Square Advisory Board; The acquisition of two new core investments: United Technologies, and a new, as-yet-undisclosed investment; The recruitment of Brian Niccol, formerly CEO of Taco Bell, as CEO of Chipotle; and Strong quarterly earnings reports and business progress at our portfolio companies.

Now that the company tender offer is completed, and subject to applicable Dutch restrictions (including art. 7 page 7 of the Dutch Decree on Public Takeover Bids), members of the management team of Pershing Square Capital Management, L.P. and affiliates may acquire additional shares of PSH in open market and privately negotiated transactions when permissible. I plan to finance the substantial majority of my own potential share purchases with the proceeds of deferred compensation that vested on

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