New Fund of ETFS Garners $25 Million Since Its August Launch

Arrow DWA Balanced Fund Finds Broad Appeal With Sophisticated Financial Advisors


OLNEY, MD -- (MARKET WIRE) -- October 18, 2006 -- The newly formed Arrow Funds is pleased to announce that its first mutual fund, the Arrow DWA Balanced Fund (NASDAQ: DWAFX), has exceeded $25 million in assets two months since the Fund's August launch. Managed by the portfolio team at Dorsey Wright and Associates (DWA), the fund uses technical analysis to manage the investment strategy.

"We have created a core strategy with a strict buy and sell discipline. The Fund provides broad diversification by allocating among four market segments: U.S. and International Equities, Fixed Income and Alternative Assets," said Joe Barrato, executive vice president and director of portfolio strategies at Arrow Funds. "The single most important factor toward achieving our investment objective is our active approach using technical research."

The Arrow DWA Balanced Fund is a fund of funds strategy that invests primarily in exchange traded funds (ETFs) -- products that have attracted an enormous amount of attention in recent years due to such benefits as low-cost structure, trading flexibility, transparency and liquidity. Access to a broad range of non-correlating ETFs allows the Fund to seek absolute returns from its proprietary tactical asset allocation strategy. The Fund provides exposure to five rotation strategies including sector rotation, style rotation, international rotation, fixed income rotation and alternative asset rotation. The goal of each rotation strategy is to systematically identify and provide exposure to leading ETF components on an ongoing basis. "The strategy is extremely adaptive to market conditions. It has the flexibility to overweight and underweight portfolio components based on their changing technical patterns," according to Barrato.

The firm's founders have extensive experience in creating and distributing investment products for the financial intermediary. "We listen to the needs of the financial intermediary and respond to those needs with portfolio solutions," said Barrato.

"This fund has been extremely well received by the financial intermediary community," noted Jake Griffith, executive vice president of sales at Arrow Funds. "Many advisors understand that relying on diversification alone may not deliver adequate risk management in a weak market environment."

During the last few years many financial intermediaries have embraced technical analysis to assist with their efforts to manage client portfolios. DWA is a recognized expert in the field of technical analysis and a leading provider of technical research to the national and regional broker dealer community. "The Arrow DWA Balanced Fund provides an investment option aligned with the way many financial intermediaries manage client portfolios," said Griffith

Arrow Funds has developed selling agreements with more than 50 of the top national, regional, independent broker dealers and registered investment advisor-based platforms. This list includes Wachovia Securities LLC; Morgan Keegan & Co., Inc.; Robert W. Baird & Co., Inc.; NFP Securities Inc.; First Allied Securities Inc.; Fidelity (National Financial Services-NFS); TD Ameritrade, Inc. (National Investor Services Corporation); and Bear, Stearns Securities Corp.

The fund has a minimum initial investment of $5,000 and a minimum of $250 for all subsequent investments.

Share Class      Ticker
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Class A Shares   DWAFX
Advisor Class    DWATX
About Arrow Funds

Arrow Investment Advisors, LLC, the advisor to Arrow Funds, is an investment management firm dedicated to providing education, research and product solutions to the financial intermediary community. Arrow Funds identifies and develops investment products that seek to enhance returns and mitigate risk. The firm is committed to delivering superior performance while providing the highest level of customer service. To learn more about Arrow Funds, please visit www.arrowfunds.com.

About Dorsey Wright & Associates

DWA is an independent and privately owned registered investment advisory firm whose business includes two areas: professional management and investment research services for numerous broker-dealers and large institutions around the world. The cornerstone of its investment strategy is technical analysis. The firm has provided technical research for almost 20 years. Thomas J. Dorsey is president and co-founder of DWA. An accomplished author, Dorsey's works include "Point & Figure Charting: The Essential Application for Forecasting and Tracking Market Prices"; "Thriving as a Stockbroker in the 21st Century"; and "Tom Dorsey's Trading Tips: A Playbook for Stock Market Success." To learn more about DWA, please visit www.dorseywright.com.

An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing. This and other information about Arrow Funds is contained in the Fund's prospectus, which can be obtained by calling 1-877-ArrowFD (877-277-6933). Please read the prospectus carefully before investing. The Arrow Funds are distributed by Aquarius Fund Distributors, LLC.

Contact Information: Media Contact: Joseph Barrato 301-260-0162 Email Contact