Arrow DWA Balanced Fund (DWAFX) Reaches New Milestone

OLNEY, MD--(Marketwire - August 13, 2009) - Arrow Funds, a leading provider of alternative strategy mutual funds, is pleased to announce that their flagship fund, the Arrow DWA Balanced Fund (NASDAQ: DWAFX), has just reached its 3-year anniversary. Since its inception in August 2006, the Fund has an average annual return of 0.77%, outperforming the S&P 500 which had a return of -5.41% annualized for the same time period.

"We feel the Arrow DWA Balanced Fund has served well as a core holding for investors during the past three years, especially considering the unprecedented market conditions," stated Joseph Barrato, Arrow Funds' CEO. "It's clear that investors have taken notice of our unique tactical asset allocation approach." Since its inception, assets under management for the Fund have grown to more than $250 million, making it a fast growing fund within an established category while outperforming 90% of its peers.

The Arrow DWA Balanced Fund is managed by the skilled portfolio team at Dorsey Wright and Associates (DWA). The Fund primarily invests in exchange traded funds (ETFs) and provides diversified exposure to sector, style, international, fixed-income and alternative asset classes using five distinct rotation strategies.

As the sub-advisors to the Fund, DWA allocates across the various portfolio segments based on proprietary technical analysis that has brought them high accolades from the financial services industry. "For years we have taught investors the importance of making investment decisions based on the economics of supply and demand. The relative strength of this fund against its peers over the last three years is a testament to our disciplined investment approach. Combining that with the broad distribution capabilities of the Arrow Funds, investors have access to a unique core investment portfolio," said Tom Dorsey, President of Dorsey Wright & Associates.

Arrow DWA Balanced Fund (Performance as of 8/7/2009)

                                                             Inception
Ticker              YTD       1-year     3-year    5-year    8/7/2006
------              ---       ------     ------    ------    --------
DWAFX (A-Shares)    9.36%     -12.16%    0.77%     N/A       0.77%
DWATX (C-Shares)    8.75%     -12.82%    0.01%     N/A       0.01%
S&P 500 Index      13.61%     -18.02%   -5.41%     --       -5.41%

Past performance does not guarantee future results. For periods less than one year, performance is not annualized. The performance data quoted represents past performance at net asset value and current returns may be lower or higher. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. To obtain performance information current to the most recent month end, please call 1-877-277-6933. Standard deviation and correlation are calculated since the Fund's inception. The maximum sales charge for A-Shares is 5.75% and may be eligible for a reduction in sales charges. The Fund charges a fee of 1.00% on redemptions of shares held less than 30 days. The net annual operating expense for the Arrow DWA Balanced Fund is 1.57% for A-Shares and 2.32% for C-Shares, plus acquired fund fees of 0.46%.

For more information about Arrow DWA Balanced Fund, or to speak with an Arrow Funds executive, please contact Neil Kays at (301) 260-2933 or neil@arrowfunds.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 its 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.

Mutual funds involve risk, including possible loss of principal. 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 Funds are distributed by Northern Lights Distributors, LLC (member FINRA/SIPC).

As of August 7, 2009, for 3-year performance, Arrow DWA Balanced Fund (DWAFX) ranked 93 out of 940 funds in the Morningstar Moderate Allocation Category (9th Percentile). Source: ©2009 Morningstar, Inc. All rights reserved. The Morningstar information contained herein: 1) is proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; 3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Arrow Funds does not review Morningstar data for accuracy. % Rank in Category is based on total returns, which include reinvested dividends and capital gains, if any, and excludes sales charges.

0957-NLD-8/12/2009

Contact Information: Contact: Neil Kays Arrow Funds neil@arrowfunds.com (301) 260-2933