U.S. Global Investors' Eastern European Fund

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Q: What are the benefits of investing in the Eastern European Fund?

A: The Eastern European Fund invests in a dynamic portfolio of Eastern European stocks that the portfolio
team believes offer undervalued prices and high growth potential. The fund makes many Eastern
European stocks available to investors in a no-load investment. While these stocks involve a higher
degree of risk, as detailed on page 5, they have the potential for high long-term capital gains.

Q: Why should I consider investing in the Eastern European Fund?

A: Charlemagne Capital Ltd. is a specialist in the global emerging markets with the skills and resources
necessary to seek out the best opportunities in Eastern Europe. Charlemagne Capital Ltd. analysts
are professionals who can make the tough investment decisions in the Eastern European stock
markets for you. Though there can be no guarantee of success, investing with professional money managers
offers an excellent opportunity for achieving your long-term financial goals.

Q: What is Charlemagne Capital Ltd’s philosophy for investing?

A: As economic reforms continue in Eastern Europe, Charlemagne Capital Ltd. believes that these markets offer outstanding investment opportunities. Charlemagne Capital Ltd. seeks out stocks that are undervalued by the markets and have long-term growth potential at the right price.

Q: Why should I invest in former Communist countries?

A: For the countries in which the Eastern European Fund may invest, communism is an ideology of the past. Economic realities now dictate government policies that allow economic and political freedoms. The need for economic restructuring has required the help of Western organizations such as the World Bank, the International Monetary Fund and the European Bank for Reconstruction and Development. Dependent on the financial help of these organizations, the nations of Eastern Europe follow strict policies in return for further aid. Those countries whose dependence on outside aid is lessening are those that have wholeheartedly rejected their communist past.

Q: What strategy do you recommend for investing in this fund?

A: Since the stock markets of Eastern Europe can be volatile, we suggest the strategy of dollar-cost
averaging using our ABC Investment Plan.® By investing an equal amount at regular intervals,
you avoid extremes in the market. By investing a predetermined amount every month, you establish
an investment discipline and avoid attempting to outguess an unpredictable market. Please see
page 11 for details.

Q: How should I balance my portfolio?

A: As you move through life, your investment needs change. Younger investors typically have a greater portion of assets in growth investments. Mature investors approaching retirement likely will prefer a shift to fixed income investments. A well-diversified portfolio should have an exposure to aggressive as well as conservative stocks. Depending on the investor’s risk profile, we suggest investing in the Eastern European Fund as part of the stock component for investors seeking to invest in emerging markets. We also suggest that investors use our ABC Investment Plan.®

Q: Why should I choose a fund that is no-load?

A: Investing in growth stocks on your own can be very expensive. As an institutional investor, the fund can negotiate lower commissions on its portfolio transactions. Because our funds are no-load, you never pay loads or sales charges. Please read the prospectus, which includes charges and ongoingexpenses, carefully before investing.

Q: What is your minimum investment requirement?

A: You can open a regular account with $5,000 and add to your investment with $50 or more. Or you may begin investing with $1,000 if you use our ABC Investment Plan® and make monthly investments of $100 or more. IRA accounts have no minimum investment requirement at U.S. Global Investors.

Did you know...?

For instant liquidity, you can transfer money by phone to your U.S. Treasury Securities Cash Fund account and then write a check for any amount you need. If you have yet to invest in our money market funds, call 1-800-US -FUNDS for a free investment kit.

An investment in the U.S. Treasury Securities Cash Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Not part of prospectus