FUND.COM, Inc.

Based on Wall Street in New York, NY, Fund.com is a non-bank technology-

Recent Headlines
enabled asset management firm with more than $1.0 billion in assets under February 18, 2010
management*. Fund.com combines content and lead generation to create a
Fund.com Subsidiary AdvisorShares
distribution platform, distributing ETF products the Company manufactures.
Announces a Partnership with Peritus
Asset Management to Develop ETFs
Fund.com’s Business: read more >

• We have patents pending on our ETF systems

• The SEC granted us permission to offer unique actively managed ETFs January 25, 2010
• Our AdvisorShares ETF Platform is used by asset managers and major banks to AdvisorShares Launches Monthly
launch ETFs Portfolio Manager Commentaries;
• We own financial websites offered at www.fund.com and Announces Key New Hires to Support Its
www.accreditedinvestor.com, designed to help sell our ETF products Growth
• We earn fees on assets under management read more >

* post Weston Capital closing

Excerpt from SEC Order Regarding

Active ETFs: New Financial Technology in the Hands of AdvisorShares
Advisors
“The Funds [AdvisorShares] may invest in
Fund.com's subsidiary, AdvisorShares Investments LLC, is creating actively exchange traded products that invest
primarily in commodities or currency, but
managed ETFs to take advantage of the rapidly growing ETF business. ETFs are the
otherwise operate in a manner similar to
fastest growing financial product of all time and most significant innovation since exchange traded products registered under
the money market fund. Fund.com is the majority owner of AdvisorShares the Act. In addition, the Funds may also
Investments, LLC. invest in equity securities or fixed income
securities traded in a U.S. or non-U.S.
• AdvisorShares was approved in 2009 by the SEC to offer actively managed markets, as well as futures contracts,
ETFs, a new asset class in the ETF sector options on such futures contracts, swaps,
• AdvisorShares is making its SEC approval available to select professional forward contracts or other derivatives, and
investment advisors managing discretionary shares of money market mutual funds or
other investment companies, all in
assets Affiliates accordance with their investment objectives.
• AdvisorShares makes available a fully turn- The Funds may also invest in equity
key product manufacturing platform called securities or fixed income securities traded
OpenPlatform sm in international markets or in a combination
• Investment Advisors use OpenPlatform to of equity, fixed income and U.S. money
package their own investment strategy into market securities and/or non-U.S. money
an ETF that can be purchased by any investor market securities.”
with access to a brokerage account
http://sec.gov/rules/ic/2008/ic-28568.pdf
OpenPlatform is a proprietary tool designed for over
10,500 Investment Advisors and 7,500 hedge fund
managers to achieve distribution efficiency and
breakdown institutional ‘platform’ barriers
AdvisorShares’ OpenPlatform is Validated
• First OpenPlatform partner IPO on New York Stock Exchange - September
15, 2009
• Now ranked as largest actively managed ETF in the market
• Second launch partner for OpenPlatform is one of the largest banks in the
world - Bank of New York Mellon
• IPO in January - SEC already declared registration statement effective
In The Media
“This week, one interesting ETF in this group
did make it to market: the Dent Tactical ETF,
which began trading yesterday. The DENT ETF
has attracted surprisingly heavy volume for its
first two days of trading”….. Bob Pisani (CNBC)

The Dent Tactical ETF “Some smaller players, including Grail Advisors
and AdvisorShares Investments, have launched
• AdvisorShares launched Dent Tactical (NYSE Arca: DENT) on September stock-picking versions this year. It's possible
15th, 2009 these funds could one day rival those of
• Kellogg is lead specialist with Goldman Sachs, Credit Suisse registered as Fidelity Investments or American Funds”……
Authorized Participants The Wall Street Journal
• Over $24 million has already been invested in this fund both due to its ease
of access as well as the credibility of its manager, Harry S. Dent. Bearish
investment bias.
• Dent has previously raised and managed a $1.7 billion dollar mutual fund
• He is New York Times best selling financial author -----------------------------------------------------------
• Dent estimates that this the Dent Tactical ETF will surpass his previous fund
in size
• A conservative increase to just $1 billion in assets (42% less than previous Unprecedented Historic Opportunity
mutual fund) would generate
gross income to Fund.com of • Financial crisis has created
approximately $15 million and unprecedented opportunity for non-
net fee income of $4.5 million - bank financial product providers
approximately $400,000 a
• ‘Bulge Bracket’ banks no longer have
month with no marketing or
presumed automatic credibility – even
infrastructure cost viewed with skepticism now

Assets Under Management • Plus, financial products must now be

LIQUID and TRANSPARENT - like ETFs
• We manage $1.0 billion today - and had $2.8 billion before financial crisis • 1,500% growth in ETF Assets over just
last 10 Years
• To date all accredited investors - now with ETFs we expand market by a factor
of 15x
• ETFs account for over 35% of all trading
• We expect to manage $20 billion in three to five years - still small in mutual volume in the United States
fund terms
• $20 billion represents just 2% market penetration into RIA channel • 71% of financial professionals used ETFs
• 40 basis point net generates $80 million in net fee income per annum in 2008, up from just 25% in 2003
Revenue and Expense Model

• Recurring fee income from ETFs

• Average 1.4% of assets under management
• We share 50/50 with our product partners
• However, costs to acquire assets under management not born by us - all fund marketing born by partner firm
• Extremely high margin - 40 basis point net net net

Management Has Done This Before

Noah Hamman, CEO, AdvisorShares - Former Head of Product Development at Rydex

Investments, which sold to Security Benefits for $776 million. Former Fidelity
managing director. Launched 40 ETFs.

Greg Webster, CEO - Former CEO HSBC Securities and Director of HSBC Wealth
Management. $32 billion assets under management. 5,000 registered reps. Former
COO of New York Life Securities.

Joe Bianco, Chairman - Chairman and CEO of NYSE listed Alliance. 22 acquisitions.
Revenue of $800 million. Sold to Wasserstein Perrella. Bought sports car company
Lotus and sold to General Motors. Yale Law professor.

Albert Hallac, Founder and CEO, Weston Capital – Established in 1993. Grew to $2.8
billion AUM by 2008. 40 years of hands-on experience in money management,
trading, and marketing. Formerly Chief Executive Officer of Hallac Associates, a
private investment advisory firm that he founded in 1969.

The statements contained in this presentation that are not historical are “forward-looking statements” within the meaning of
Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”), including statements, without limitation, regarding the Company’s expectations, beliefs,
intentions or strategies regarding the future. Such forward-looking statements relate to, among other things: (1) the Company’s
proposed exploration and drilling operations on its various properties and targeted properties, (2) the expected production and
revenue from its various properties and targeted properties, (3) estimates regarding the reserve potential of its various properties
and targeted properties and (4) the expected production and revenue from the Company’s anticipate acquisitions. These statements
are qualified by important factors that could cause the Company’s actual results to differ materially from those reflected by the
forward-looking statements. Such factors include but are not limited to: (1) the Company’s ability to finance the continued
exploration and drilling operations on its various properties and targeted properties, (2) positive confirmation of the reserves,
production and operating expenses associated with its various properties and targeted properties; and (3) the general risks
associated with oil and gas exploration and development, including those risks and factors described from time to time in the
Company’s reports and registration statements filed with the Securities and Exchange Commission, including but not limited to the
Company’s Current Report on Form 8-K filed on September 21, 2009, November 13, 2009, November 23, 2009, December 2, 2009
and December 9, 2009 and on Form 10Q filed on November 26, 2009. The Company cautions readers not to place undue reliance on
any forwardlooking statements. The Company does not undertake, and specifically disclaims any obligation, to update or revise such
statements to reflect new circumstances or unanticipated events as they occur.