Groundbreaking Spread ETFs Launch on the NYSE Arca

Factor Advisors launches FactorShares, the first family of spread ETFs

New York, February 24, 2011 - Factor Advisors, a New York-based asset management firm, announced today the launch of FactorShares, the first family of spread exchange traded funds (ETFs) that allow sophisticated investors to simultaneously hold both a bull and a bear position in one leveraged ETF. These innovative, first-to-market products begin trading today on the NYSE Arca.

Designed to simplify spread trading and lower its cost barriers, the new FactorShares ETFs will enable investors to track two market segments, one long and one short, in a single ETF position. The initial five FactorShares ETFs pair up major asset classes from among the S&P 500 Index, US Treasury Bonds, Gold, Oil and the US Dollar.

"As a portfolio manager, I used to become frustrated about being charged twice the transaction fees and double the margin requirements in order to implement spread trades," explained Stuart Rosenthal, CEO and Co-Founder of Factor Advisors. "I was determined to bring greater efficiency to spread trading. With the creation of FactorShares, spread trading among the major asset classes requiring two separate positions and indiscriminate rebalancing is in the past."

The initial suite of FactorShares spread ETFs are designed to rebalance daily to achieve the desired effect of maintaining dollar neutrality. FactorShares ETFs are also capital efficient, targeting a daily leverage ratio of 4:1, where each dollar invested provides approximately two dollars of long futures exposure and two dollars of short futures exposure, immediately after daily rebalancing. FactorShares ETFs seek investment results for a single day only, not for longer periods.

In 2009, Rosenthal teamed up with investment banker and entrepreneur Karlheinz Muhr and UCLA Anderson School of Management's award-winning Professor of Finance, Dr. Richard Roll, to found Factor Advisors. The three men believed that Dr. Roll's risk factor-based investment approach could be the basis for creating simple and cost-effective spread ETFs and by this shared viewpoint FactorShares products were created.

"The innovation behind FactorShares is another industry milestone for transforming alternative investment strategies into accessible, transparent ETF products" said Muhr, Chairman of Factor Advisors. "The introduction of these ETFs is Factor Advisors' first step in our commitment to building a comprehensive suite of factor-based products that will advance the way the marketplace approaches alternative investing."

The first five FactorShares ETFs available today on the NYSE Arca include:

- FSE: FactorShares 2X: S&P500 Bull/TBond Bear
- FSA: FactorShares 2X: TBond Bull/S&P500 Bear
- FSU: FactorShares 2X: S&P500 Bull/USD Bear
- FOL: FactorShares 2X: Oil Bull/S&P500 Bear
- FSG: FactorShares 2X: Gold Bull/S&P500 Bear

Factor Advisors has also entered into a marketing agreement with Interactive Brokers, a global low-cost leader in electronic trading, to offer its brokerage clients commission-free trading of FactorShares ETFs with no minimum holding period and no short-term trading fees.

FactorShares ETFs may not be suitable for all investors and are intended for sophisticated investors who: i) understand leverage risk; ii) understand the consequences of seeking daily leveraged investment results; and iii) intend to actively monitor and manage their investments.

Disclaimer: An investor should consider investment objectives, risks, charges and expenses carefully before investing. The prospectus contains this and other information. Read the prospectus carefully before investing. A prospectus can be obtained by calling 1-888-628-3180 or by downloading the prospectus.

The Funds are not mutual funds or any other type of Investment Company within the meaning of the Investment Company Act of 1940, as amended, and are not subject to regulation thereunder.

Shares of these funds are bought and sold at market price (closing price) not NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

An investment in the Funds involves risk, including the possible loss of principal. Leverage and/or short positions should be considered speculative and are not suitable for all investors. Commodities and futures trading are volatile and even a small movement in market price could cause large losses. The risks involved with each Fund are detailed in the prospectus and on the risk disclosure links on each Fund's web page.

Leveraged funds should be utilized only by sophisticated investors who understand leverage risk, consequences of seeking daily leveraged investment results and intend to actively monitor and manage their investments. Leveraged ETFs are not designed to track the underlying index over a longer period of time.

This website should not be considered a solicitation to buy or an offer to sell shares of any investment in any jurisdiction where the offer or solicitation would be unlawful under the securities laws of such jurisdiction. Nothing on this website is intended to be investment, tax, financial or legal advice.

Interactive Brokers LLC ("Interactive Brokers") receives compensation from Factor Capital Management, LLC (the "Managing Owner") in connection with a marketing agreement that includes promotion of FactorShares ETFs and certain commission waivers. Additional information about the sources, amounts, and terms of compensation is described in the prospectus and related documents. Interactive Brokers may add or waive commissions on FactorShares ETFs without prior notice. An affiliate of Interactive Brokers is a member of Factor Advisors, LLC, the parent and the sole owner of the Managing Owner.

FactorShares™, Factor™, and spread ETF™ are service marks owned by Factor Advisors, LLC.

Distributor: Foreside Fund Services, LLC