Welcome to US Global Investors exclusive webcast, US Global Investors Third Quarter of Fiscal Year 2008 Earnings Announcement. Please note, that the slides you see on your screen are controlled by the presenters. Also, you may print a copy of today's slides at any time by clicking on the Print Slides button on your screen. A question-and-answer session will follow today's presentation. (Operator Instructions). We would now like to begin by introducing Terry Badger, Director of Communications at US Global Investors. Mr. Badger, please begin.

Thank you, operator. Welcome everyone to our webcast announcing results for the third fiscal quarter of 2008. Our presenters for today's program are Frank Holmes, US 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 US 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 ladies and gentlemen to today's presentation. I want to read in and out in this presentation as we go to page 4. If we could move to page 4 and highlight some of the differences that we are seeing between revenue and net income and earnings per share. As you can see in this financial snapshot, which Catherine Rademacher will go in to more detail in a few minutes, the revenue decline. Now let’s look underneath the core, look at our core revenue as the expression is let’s look under the hood. And what is important here is that, our offshore fund business, which is growing, which I will show you in assets, was basically flat for the quarter in performance fees. And that is the big difference between revenue a year ago to this year. Net income as you can see was $2.12 million versus $2.41 million, which drops down to earnings per share of $0.14 versus $0.16. We have several investments which are made a long time ago. They can have some volatility to earnings and for us, we want to highlight to you, that our core business, our mutual funds, business is basically growing and that loss in earnings on a year-over-year basis really happened all in a couple of days in March, as junior companies were knocked down due to the liquidity event at quarter end. In fact a year end for a lot of the brokers at the end of March and we witnessed this and this impacted us for the earnings. But if I look back a year ago, this was positive to us. Looking at these several small investments, which were liquidating in up days we are trying to capitalize on. However, the core business is actually on…

During the first quarter of 2008, our institutional services team completed several negotiations with significant distribution partners. As we've discussed with you previously, one of our top priorities, starting in early 2007, has been to increase our share fund sales intermediary. This does reflect a trend in the industry. According to the ICI, approximately 75% of new money coming in to mutual funds, is coming in from the so called advice channel, that is financial advisors and other types of intermediaries. For a brief overview of some of our more significant distribution arrangements reached during the quarter, one, includes Merrill Lynch. There are 16,000 financial advisors in Merrill Lynch, that are now able to invest in US Global Investors' Funds. Last year, Merrill placed nearly $100 billion in nonproprietary mutual funds. So this is obviously a big win for us to get our funds in front of these advisors. We are also having a distribution partnership with Morgan Stanley. Morgan Stanley has more than 8,000 financial advisors, and these advisors, on average, manage $85 million for the clients. We also reached an agreement with Linsco/Private Ledger for a new platform arrangement with them. And it does provide US Global Funds with a more attractive placement within the array of funds within LPL. LPL is the largest independent broker dealer in the country. So when you combine Merrill Lynch, Morgan Stanley and LPL, this gives our institutional sales team access to nearly 30,000 financial advisors. In addition, there are 90,000 members at the Wisconsin Education Association, who are now able to invest in our biggest funds, the Global Resources Fund, in the retirement account. We are now [disagreeing that] previously in our last quarterly webcast. We are very, very pleased with these distribution agreements. However, we are not resting. We are in various stages of discussions with a number of large firms across the investment sector, some consultant, some private client managers, and others, that we've identified as having good potential for us to make agreement with.

Thank you, Susan. Moving on, I gave you the past and Susan has given you sort of the future opportunities, what's important when you look our strategic insights, which attracts this industry, that money flows are going into international funds. Basically the psychology in America is getting away from, only America is the place for opportunities and growth. Jodi Solison's recent book, basically highlights that the growth opportunities are in China, India and emerging economies that embrace policies for peace and prosperity, and we are in those asset classes. So I think that our future looks very-very healthy and big factor is this performance which hopefully. We will stay focused on our processes that's always the thing like a coach has of a professional team. Focus on those processes, I believe, that we will be able to demonstrate very good fund performance relative to our peers. Well that's the past and the future. Let's take a look at rate today. What's happening in the market, page 20. In the past year, the S&P versus the Russell 2000. In the past months, I have attended several conferences as a student. Particularly, hedge fund conferences in Europe and I want to highlight the shareholders what took place last August. There was a margin call made by the banks to the prime brokers, that it wasn't just to sub-prime debt hedge fund managers. It was to every form of hedge fund manager. If you have a $2 trillion industry and some of these hedge fund managers leverage 10 to 1, and on average more than 2 to 1, and all of a sudden due to the bank's mortgage problems, they start pulling in capital from everywhere they can get. They go to the prime brokers and it wasn't as I said, one asset class with the problems that are coming from the bank. It was all asset classes, ran to the door at the same time. And when you take a look at volatility, S&P, it was calculated liquidity. The S&P volatility (inaudible) with the Russell 2000 and we are in the Russell 2000 index, so it has been hammered even more with greater volatility. We want to put this in context for you to understand that the Russell 2000 earnings are better than the S&P 500 overall. However, the liquidity, has impaired this and I think it looks like an opportunity for the Russell 2000. Now let's take a look at the GROW versus the Russell 2000. Here is the greater anomaly, on page 21. Looking for one year, we have far underperformed the Russell 2000. Financials have also been hurt in the Russell 2000 like the S&P, because [CALL ENDS ABRUPTLY]