Greetings and welcome to the U.S. Global Investors exclusive webcast U.S. Global Investors second quarter of fiscal year 2008 earnings announcement.. (Operator Instructions). Now we would like to begin by introducing Terry Badger, Director of Communications for U.S. Global Investors. Thank you, you may begin.

Thank you, and welcome everyone to our webcast, announcing results for the second quarter of fiscal 2008. The presenters for today's program are Frank Holmes, U.S Global Investors' CEO and Chief Investment Officer, Susan McGee, President and General Counsel and Catherine Rademacher, Chief Financial Officer. During this webcast, we may make forward-looking statements about our relative business outlook. Any forward-looking statements and all other statements made during this webcast that don't pertain to historical facts are subject to risks and uncertainties that may materially affect actual results. Please refer to our press release and corresponding Form 10-Q filing for more detail on factors that could cause actual results to differ materially from any described today in forward-looking statements. Any such statements are made as of today and U.S. Global Investors accepts no obligations to update them in the future. I would now like to turn the presentation over to Frank Holmes, CEO and CIO for an overview of the first quarter. Frank?

Thank you, Terry and welcome everyone. I apologize for the glitches in technology there, and really appreciate your patience in listening and staying on. We're very excited about what's taken place in a financial backdrop that is so disastrous for the marketplace, and with doubt and suspicion everywhere. And we're very thrilled that we grew, in our revenue line as you can see, between '06 and '07, our net income remained flat, and our earnings per share remained flat. We will walk you through this presentation, that's a huge win for us in context. But why did we remain flat? Well, we beefed up. Beefed up the team, and it's very balanced, we beefed up our team, offensive and defensive squad, as we like to call it. Most importantly, we started off with compliance. We really enhanced our compliance, and that's key in our world, that we must have the best compliance procedures. And then marketing, we added to institutional, and also to retail, and we have this great pool of people today to beef up and extend our reach in the marketing. And then portfolio, we hired a global strategist, and some additional people in the portfolio team, which is so important for OpEx. Now one of the reasons why you see the net income is basically flat, is because we did so well, and our basis are low, but the performance is tied to being in the top half, and being as you see, where in the previous press releases, we were in the top 1% and 2% of so many different categories, and that leads to healthy bonuses for the portfolio team, and that's what is most important, and that's what creates a sustainable growth. Hopping over to page 5, we see assets under management. Our compounded…

On October 1st, we took over the daily management of one of our 16 year old funds, the MegaTrends Fund. We changed its name to Global MegaTrends Fund. The Fund's objective remains the same, and that is long-term capital growth. However, we did change the name to reflect an investment strategy that is slightly broader. The Fund invests primarily in equity that tends to benefit from dominant trends in the global economy. We've identified investments in global infrastructure as a dominant global theme, both in emerging markets and in the developed world. We've been talking quite a bit about infrastructure, as Frank mentioned even in this webcast, and you'll hear more on that subject a little bit later. We are receiving a very good response to the Fund in the marketplace from early October through last week net flows in to the fund are equal to about 30% of the fund size when we took over the daily management of the Fund's assets. The Fund is small, but the flow trend has been strong since last October, and given the current economic conditions, it does suggest to us that investor interest in the infrastructure theme may be growing, and that presents an excellent opportunity for us, that's one of the few funds focused in this space, and we do believe that the marketplace is susceptive to this type of investment strategy. We are also working on several new product offerings, we're going forward on several new products, we have limited our regulatory constraint, although we can't discuss it with you all, we do continue to [sub-advice] to offshore hedge funds, one is focused on goals, and one is focused on energy and resources, and these funds are changing their approach to marketing, and they've hired a full time professional to…

Thank you, Susan. Good morning. I would like to briefly summarize our results of operations for the second quarter of our fiscal year 2008, which ended on December 31st. Earlier, Frank discussed the growth in our assets under management, I just want to note specifically that, in total our average assets under management were up approximately 19% from the same quarter last year, and up 12% from the prior quarter ending September 30th, to $5.64 billion at December 31st. And as you know, assets under management are one of the main drivers of revenue, so starting with revenues on page 17. We recorded total revenues of $13.86 million for the quarter, which is an 11.6% increase over the comparable quarter last year. And contributing to this increase in revenues were primarily three items. First of course, investment advisory fees, which increased by 12.5% to a $11.35 million, largely because of increased assets under management. Secondly, transfer agency fees increased by 7% to $2.1 million, as a result of an increase in shareholder accounts, as well as a revised transfer agent fee structure that was effective April 1st of last year, which incorporates transaction and activity based fees. And finally investment income increased 55% to $387,000, most of that increase was derived from unrealized gains as well as dividends on corporate investments. And as we mentioned in our 10-Q and 10-K filings and in our webcast, please note that the investment income number can be volatile. Moving on to page 18, expenses. Our total expenses for the quarter were approximately $10.2 million, 17.4% increase over the same quarter last year. And the three areas that contributed most of the increase in expenses, were first employee compensation, and benefit that Frank touched on earlier, increased by 18% to a partially $3.4 million, again primarily due to performance based compensation that resulted from the strong fund performance, as well as increase in the number of employees. As Frank discussed earlier, we've added some key personnel over the last year in some critical areas in the corporation for sustainable growth. And the same time we are being careful not to over staff. The second area of increase in expenses was (inaudible) fees, which increased 26% to $2.3 million, as a result of increased flows through the various broker dealer platforms. And third we have some advisory fees which increased 13.4% to $2.5 million due to continued growth in the Eastern European funds which is sub-advised by Sharla Maine. And that takes us to page 19, which shows net income for the quarter of $2.46 million, or $0.16 flat compared to $0.16 for the same quarter last year. And with that, I'd like to turn it back to Frank.

Thank you Catherine, and thank you Susan. I wanted to try and give some light at the end of the tunnel and it is not the train coming out at us, as most general media like to say by sowing fear and pain and how bad everything is. We remain very bullish, and one of the things we have shared with investors, and we look at this micro theme, and that is, we look at government policies. It's very important to see what government policies are in the most populated countries of the world, to get an indication of the sustainability of this super cycle. So out of this I am going to focus today predominantly on Chindia, but in some of these visuals, you are going to see others countries that put things in context, and it is quite amazing what's recently been announced in both China and India. The other part I want to share with all investors, investors that are listening, is that in the fourth year of the Presidential election cycle, there is an 80% probability that might well be up 8% and that's some data over the past 50%. If you want to go back prior to Chindian economics, you want to go back a 150 years. There is a 60% probability that market will be up in the fourth year of the President's term. We like that process of doing probability analysis to try to manage our expectations. With a weaker dollar in emerging markets, with prices in dollars you get this enhanced volatility, which is difficult for most investors, what I tried to show you earlier just by looking at - a growth example, is to try to use this volatility to your benefit. In a Presidential election cycle, which predominantly used to…

Okay. Frank, I appreciate that. This is normally the time that we reserve for our questions-and-answers, we did have a couple of early questions, sent them. This is regarding expenses and revenue, which Catherine and Frank discussed at some length during their presentation. Seeing no further questions, Frank, do you have anything else you wanted to say?

No just wanted to thank everyone for the patience during the technology glitch. And stay long in this great country of America. And diversify, looking outside around the world, and not be afraid of that. We publish regularly pieces, if you haven’t signed up for the Investor Alert, then I highly recommend you to, and that you listen to webcast to become more informed, so that when you make a decision to diversify into funds, then you really are making an informed balanced decision and thank you all. Thank you Catherine and Susan. Thank you Terry.

Okay. Thank you too, Frank. This concludes U.S. Global Investors earnings webcast for the second quarter of fiscal year 2008. This presentation will be available for replay on our website that is www.usfunds.com/webcast. And thank you all for your presentation today. Back to you operator.

Thank you ladies and gentlemen. This concludes today’s teleconference.