U.S. Global Investors joins Russell 2000 Index

U.S. Global Investors, Inc. (NASDAQ:GROW), a boutique investment advisory company specializing in natural resources and emerging markets, has been named a member of the Russell 2000 Index. The index, comprising 2,000 publicly traded companies, is a prominent yardstick used to identify investment opportunities and measure performance in the small-capitalization segment of the U.S. stock market for both active and passive investors. U.S. Global is also a new component of the Russell 2000 Growth Index, which focuses on companies in the Russell 2000 with long-term growth forecasts for stock valuation and earnings per share that are significantly above the index average. "The growth we’ve enjoyed is based largely on the strong long-term performance of our funds in natural resources and emerging markets,” says Frank Holmes, CEO and chief investment officer. "Our investment processes at U.S. Global are driving the exceptional performance of our funds, particularly when compared to similar indexes, and this has attracted new assets.” Companies in the Russell 2000 represent approximately 10 percent of the investable U.S. equity market. Market caps for companies in the Russell 2000 range from $3.3 billion to $125 million, with a median of $695 million, according to the Russell Investment Group web site. U.S. Global had a market cap of nearly $380 million as of July 18, 2007. "We have identified three large and distinct communities of GROW shareholders,” Mr. Holmes says. "Those who buy the stock for exposure to emerging markets and resources, those who follow the Investors Business Daily approach of buying shares demonstrating strong earnings momentum, and now index and ETF investors are buying GROW indirectly because it’s in the Russell 2000.” According to figures from Russell, the companies in the Russell 2000 Index have outperformed the Russell 1000 Index, representing large-cap stocks, by an annualized average of 2.55 percent over the five years ending June 30, 2007. Four of the nine equity funds managed by U.S. Global were among the top-performing mutual funds in the industry rankings published earlier this month in the Wall Street Journal. The China Region Opportunity Fund (USCOX) ranked #35 in total return among all U.S. mutual funds for the three-month period ending June 30, 2007, according to the WSJ’s quarterly fund report. The company’s Eastern European Fund (EUROX) ranked #5 among all funds in total return for the five years ending June 30, 2007, and it was in the top 10 overall over the latest 10-year period. The Global Resources Fund (PSPFX) ranked #13 among all funds in total return for the five years ending June 30, 2007, and in the top 60 for the latest 10-year period. The World Precious Minerals Fund (UNWPX) ranked #54 over the latest five-year measure. According to Morningstar Inc., more than 11,000 mutual funds have a five-year track record, meaning that three U.S. Global funds are in the top 1 percent of all funds over that time period. More than 5,400 funds have a 10-year record – U.S. Global has two funds in the top 2 percent overall in that time period. Total Annualized Returns as of June 30, 2007   Fund 1-Year 5-Year 10-Year Gross Expense Ratio Eastern European 41.60% 41.72% 20.15% 1.99% Global Resources 20.94% 38.44% 15.44% 1.03% World Precious Minerals 11.48% 30.93% 9.86% 1.23% China Region Opportunity 46.51% 25.20% 4.90% 2.51%   S&P 500 20.57% 10.69% 7.12% N/A Gross expense ratio as stated in the most recent prospectus. Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any fees described in the fund’s prospectus (e.g. short-term trading fees) which, if applicable, would lower your total returns. Obtain performance data current to the most recent month-end at www.usfunds.com or 1-800-US-FUNDS, option 5. High double-digit returns are attributable, in part, to unusually favorable market conditions and may not be repeated or consistently achieved in the future. About U.S. Global Investors, Inc. U.S. Global Investors, Inc. (www.usfunds.com) is a registered investment adviser that focuses on profitable niche markets around the world. Headquartered in San Antonio, Texas, the company offers financial solutions and provides transfer agency and other services to U.S. Global Investors Funds, U.S. Global Accolade Funds and other clients. With an average of $4.83 billion in assets under management in the quarter ended March 31, 2007, U.S. Global Investors manages domestic and offshore funds offering investment options from emerging markets to money markets. In general, trends in assets under management are the critical drivers of revenue and earnings. Please consider carefully the fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc. The Russell 1000 Index is a U.S. equity index measuring the performance of the 1,000 largest companies in the Russell 3000 Index. The Russell 2000 Index is a U.S. equity index measuring the performance of the 2,000 smallest companies in the Russell 3000. The Russell 3000 Index consists of the 3,000 largest U.S. public companies as determined by total market capitalization. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. Gold funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The price of gold is subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in gold or gold stocks. This news release may include certain "forward-looking statements” including statements relating to revenues, expenses and expectations regarding market conditions. These statements involve certain risks and uncertainties. There can be no assurance that such statements will prove accurate and actual results and future events could differ materially from those anticipated in such statements. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.