Fund of ETFs Leads the Way for Moderate Allocation Mutual Fund Performance

OLNEY, MD -- (MARKET WIRE) -- February 21, 2007 -- Sometimes a little peer pressure can be a good thing. Such is the case for the Arrow DWA Balanced Fund (NASDAQ: DWAFX). Just halfway through its first year of trading, this fund of funds' assets exceed $50 million, and its performance, at 6.8% for the 3 months ending January 31, 2007, has surpassed all of its peers in the Morningstar Moderate Allocation category.

"Advisors have received the Arrow DWA Balanced Fund with great enthusiasm in the six months since launch," says Joe Barrato, Arrow Funds' executive vice president of investment strategy. "We're thrilled with the Fund's performance in its Morningstar category. To surpass $50 million confirms the demand for a tactically managed investment strategy."

Managed by the portfolio team at Dorsey Wright and Associates (DWA), the Fund provides targeted exposure to four market segments 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. The Fund's recent performance can be partially attributed to overweight positions in the International and Alternative Rotation strategies.

"We are currently focused on expanding our tools, literature and web presence," says Jake Griffith, Arrow Funds' executive vice president of sales. "We have created a newsletter, The Arrow Quarterly Bullseye, to help advisors talk with their clients about the Fund. And our educational tool, called Portfolio Frontiers, allows advisors to compare the performance of a strategic equity and bond portfolio against an equivalent portfolio that tactically incorporates the DWA Balanced Strategy." The newsletter is available on both the retail and Financial Professional websites, while the Portfolio Frontiers tool is available only on the Financial Professional site.

                         Share Class     Ticker
                         Class A Shares  DWAFX
                         Advisor Class   DWATX

About Arrow

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 corner stone of their investment strategy is technical analysis. The firm has provided technical research for over 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. This and other information about Arrow Funds is contained in the fund's prospectus, which can be obtained by calling 1-877-ARROW-FD (877-277-6933). Please read the prospectus carefully before investing. Distributed by Aquarius Fund Distributors, LLC.

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 risks associated 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.

0187-AFD-2/20/2007

Contact Information: Media Contact: Melinda Staab 443.831.5111 Email Contact