Arrow DWA Balanced Fund (DWAFX) Hits $100 Million in Assets

OLNEY, MD--(Marketwire - September 11, 2007) - Despite a tumultuous summer for the equity markets, the folks at Arrow Funds are pleased to announce that their flagship fund, the Arrow DWA Balanced Fund (NASDAQ: DWAFX), has just exceeded $100 million in assets under management -- just a few weeks after the fund celebrated its one-year anniversary.

"Even with the market volatility, investors are looking for a core tactical strategy that responds to changing market conditions," states Joseph Barrato, executive vice president and director of portfolio strategies, Arrow Funds. "The Fund's disciplined investment strategy helped it surpass 92% of its peers in the Morningstar Moderate Allocation category over the last year.*"

Managed by the portfolio team at Dorsey Wright and Associates (DWA), the Fund primarily invests in exchange traded funds (ETFs). It provides targeted exposure to sector, style, international, fixed-income, and alternative asset classes using five distinct rotation strategies. The Fund stays responsive to market conditions, reallocating portfolio segments within certain bands through a strict buy-and-sell discipline based on relative strength.

On the heels of the $100-million-in-assets milestone, Arrow has also announced that they have reduced the Fund's net annual expense caps for both the Class A Shares and the Advisor Class Shares -- from 2.0% to 1.6% and from 2.50% to 2.35% respectively. "As the Fund grows, we will achieve better economies of scale across the board," says Barrato. "We want to pass this benefit on to investors and will continue to do so as assets rise."

Arrow Funds has developed selling agreements with more than 100 of the top national, regional, independent broker/dealers, clearing brokers and registered investment advisor-based platforms. This list includes Wachovia Securities Inc. (First Clearing), Merrill Lynch, RBC Dain Rauscher Inc., Morgan Keegan & Company, Inc., Bear, Stearns Securities Corp. (Global Clearing), Robert W. Baird, Linsco/Private Ledger Corp., Commonwealth Financial Network, NFP Securities Inc., First Allied Securities Inc., Pershing, Sterne Agee Financial Services, Inc., Southwest Securities Inc., Charles Schwab, Fidelity (National Financial Services-NFS) and TD Ameritrade, Inc. (National Investor Services Corporation).

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

      Share Class            Ticker
      Class A Shares         DWAFX
      Advisor Class          DWATX

* As of August 31, 2007

To request more information or to speak with Joseph Barrato, please contact Melinda Staab at (973) 400-1341 or melinda@jcpublicrelations.com

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 their investment strategy is technical analysis. The firm has provided technical research for more than 20 years. 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 or sending money. This and other information about Arrow Funds is contained in the Fund's prospectus, which can be obtained by calling 1-877-277-6933. Please read the prospectus carefully before investing. Arrow is distributed by Aquarius Fund Distributors, LLC member FINRA/ SIPC.

The Fund may invest in international and emerging market securities which may be subject to special risks including fluctuations in currency, government regulation, differences in accounting standards and liquidity. The Fund may invest in small-cap securities which may have special associated risks including wider variations in earnings and business prospects than larger, more established companies. The Fund may invest in the shares of other mutual and exchange traded funds. These underlying funds may be subject to their own operating fees and expenses. The Fund may invest in fixed-income securities which are subject to risks including interest rate, credit, and inflation risk.

0897-AFD-9/10/2007

Contact Information: Contact: Melinda Staab JC Public Relations, Inc. (973) 400-1341