WisdomTree Announces Third Quarter 2012 Results

WisdomTree Announces Third Quarter 2012 Results

                   $1 Billion of Net Inflows During Quarter

        Record Revenues of $21.7 Million, Up 22% From Year Ago Quarter

       Record Net Income of $4.5 Million, Tripled From Year Ago Quarter

NEW YORK, Oct. 26, 2012 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc.
(Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager,
today reported net income of $4.5 million for the third quarter of 2012, up
from $1.4 million in the third quarter of 2011 and $0.1 million in the second
quarter of 2012. Excluding non-operating expenses related to litigation,
shareholder proxy and initial exchange listing fees, proforma operating
income^1 was $4.8 million for the third quarter of 2012, up from proforma
operating income of $1.6 million in the third quarter of 2011 and $3.1 million
in the second quarter of 2012.

WisdomTree CEO and President Jonathan Steinberg commented, "WisdomTree
gathered $1 billion in net inflows and further bolstered our equity ETF
offerings, launching a China-focused ETF and refining a European
currency-hedged equity strategy during the quarter. At a time when many ETF
sponsors are competing directly against each other in market
capitalization-weighted, beta exposures, WisdomTree's commitment to
innovative, differentiated products has strengthened our competitive position
in the industry."

Mr. Steinberg continued, "We achieved record revenues and net income and
continue to see the power of the operating leverage in our business model."

Assets Under Management, Net Inflows and Market Share

ETF assets under management ("AUM") were $16.8 billion at September 30, 2012,
up from $11.2 billion at September 30, 2011 and $15.0 billion at June 30,
2012. Net inflows for the third quarter of 2012 were $1.0 billion compared to
$0.2 billion in the third quarter of 2011 and $0.3 billion in the second
quarter of 2012. WisdomTree's market share of industry net inflows was 1.8% in
the third quarter of 2012 as compared to 0.9% in the third quarter of 2011 and
1.6% in the second quarter of 2012.

For the nine months ended September 30, 2012, net inflows were $3.7 billion as
compared to $3.1 billion for the comparable period in 2011. WisdomTree's
market share of industry net inflows was 2.8% as compared to 4.3% over the
same period in the prior year.

^1 Proforma operating income andother proforma amounts described below are
non-GAAP financial measurements.Please see the section entitled "Non-GAAP
Financial Measurements" for a reconciliation of these measurements to GAAP.

Summary Operating and Financial Highlights

                              Three Months Ended           Change From
                              Sept. 30, Jun. 30, Sept. 30, Jun. 30, Sept. 30,
Operating Highlights (in       2012      2012     2011      2012     2011
millions):
ETF AUM                        $16,783   $15,004  $11,184   11.9%    50.1%
ETF net inflows                $1,036    $338     $179      206.5%   478.8%
Average ETF AUM                $15,769   $15,116  $12,762   4.3%     23.6%
Average ETF advisory fee       0.54%     0.54%    0.55%     --       (0.01)
Market share of industry       1.8%      1.6%     0.9%      0.2      0.9
inflows

Financial Highlights (in                                         
thousands):
Total revenues                 $21,661   $20,393  $17,736   6.2%     22.1%
Net income                     $4,533    $129     $1,359    nm       233.6%
Proforma operating income      $4,752    $3,136   $1,582    51.5%    200.4%
(non-GAAP)
Gross margin^2                 68%       67%      61%       1        7
Pre-tax margin                 21%       1%       8%        20       13
Proforma pre-tax margin        22%       15%      9%        7        13
                                                               

                                    Nine Months Ended Sept. 30,
Operating Highlights (in millions):  2012      2011      Change
ETF AUM                              $16,783   $11,184   50.1%
ETF net inflows                      $3,673    $3,142    16.9%
Average ETF AUM                      $15,051   $11,706   28.6%
Average ETF advisory fee             0.54%     0.55%     (0.01)
Market share of industry inflows     2.8%      4.3%      (1.5)
                                                      
Financial Highlights (in thousands):
Total revenues                       $61,224   $48,985   25.0%
Net income                           $5,777    $2,203    162.2%
Proforma operating income (non-GAAP) $9,741    $2,932    232.2%
Gross margin                         66%       60%       6
Pre-tax margin                       9%        5%        5
Proforma pre-tax margin              16%       6%        10

                                           
^2 Gross margin is defined as total revenues less fund management and
administration expenses and third-party sharing arrangements.

Recent Business Developments

  *Effective as of the close of business August 29, 2012, the WisdomTree
    International Hedged Equity Fund was renamed the WisdomTree Europe Hedged
    Equity Fund (HEDJ) and implemented a revised investment strategy.
    
  *On September 19, 2012, WisdomTree announced the launch of the WisdomTree
    China Dividend ex-Financials Fund (CHXF).
    
  *On October 8, 2012, WisdomTree announced the appointment of Gregory Barton
    as Chief Operating Officer.
    
  *On October 19, 2012, WisdomTree announced the closure of three ETFs
    representing approximately 0.15% of AUM.

Early Expiration of Joint Venture with Bank of NY Mellon

In 2008, we entered into a mutual participation agreement with Mellon Capital
Management Corporation and The Dreyfus Corporation (BNY Mellon) in which we
agreed to collaborate in developing currency and fixed income ETFs under the
WisdomTree Trust. Under the agreement, we contributed our expertise in
operating the ETFs, sales, marketing and research, and BNY Mellon contributed
sub-advisory, fund administration and accounting services for these
collaborated ETFs. All third-party costs and profits and losses are shared
equally. This agreement was to expire in March 2013. If this agreement were
to expire, we would be required to contract separately with BNY Mellon, or pay
another third party to provide for these services.

WisdomTreeand BNY Mellon have agreed to the early expiration of this
agreement, which will now end on December 31, 2012.Under the new arrangement,
BNY Mellon will continue to serve as portfolio manager to these ETFs under
more traditional sub-advisory economic terms, which is expected to result in
improved gross margins on these ETFs at current asset levels.

Performance

74% of the $14.1 billion invested in our 35 equity ETFs on September 30, 2012
were in funds that, since their respective inceptions, outperformed their
capitalization-weighted or competitive benchmarks through that date. 66%, or
23 of our 35 equity ETFs, outperformed their capitalization-weighted or
competitive benchmarks since their respective inception through September 30,
2012. For more information about WisdomTree ETFs including standardized
performance, please click here or visit www.wisdomtree.com.

Third Quarter Financial Discussion

Revenues

Total revenues increased 22.1% to a record $21.7 million as compared to the
third quarter of 2011 and 6.2% compared to the second quarter of 2012
primarily due to higher average AUM. Our average fee earned was 0.54% in
the third quarter compared to 0.55% in the third quarter of 2011 due to the
change in mix of our ETFs.Our average fee was unchanged compared to the
second quarter of 2012.

Margins

Our gross margin, which is our total revenues less fund management and
administration expenses and third party sharing arrangements, was 68% in the
third quarter of 2012 as compared to 61% in the third quarter of 2011 and 67%
in the second quarter of 2012.This increase in gross margin was primarily due
to higher average AUM as well as the change in mix of AUM.

Our pre-tax margin was 21% in the third quarter of 2012 as compared to 8% in
the third quarter of 2011 and 1% in the second quarter of 2012.Excluding
non-operating expenses, proforma pre-tax operating margin was 22% in the third
quarter of 2012 as compared to 9% in the third quarter of 2011 and 15% in the
second quarter of 2012.

Expenses

Total expenses increased 4.6% to $17.1 million from $16.4 million in the third
quarter of 2011 and decreased 15.5% from $20.3 million in the second quarter
of 2012. Excluding non-operating expenses, expenses increased 4.7% compared to
the third quarter of 2011 and decreased 2.0% compared to the second quarter of
2012.

                              Three Months Ended           Change from
(in thousands)                 Sept. 30, Jun. 30, Sept. 30, Jun. 30, Sept. 30,
                              2012      2012     2011      2012     2011
Total expenses                 $17,128   $20,264  $16,377   (15.5%)  4.6%
Patent litigation expenses     (1,468)   (821)    --                
Insurance reimbursement        1,249     1,012    --                
ETF shareholder proxy expenses --        (3,198)  --                
Initial exchange listing       --       --      (223)            
expenses
Proforma operating expenses    $16,909   $17,257  $16,154   (2.0%)   4.7%
(non-GAAP)
                                                               

  *Compensation and benefits expense increased 12.8% to $5.7 million compared
    to the third quarter of 2011.This increase was primarily due to higher
    stock based compensation expense due to equity awards granted to our
    employees as part of their 2011 year end incentive compensation, higher
    accrued incentive compensation, as well as costs associated with higher
    headcount. Our headcount at the end of the third quarter of 2012 was 70
    compared to 64 at the third quarter of 2011.

  Compensation and benefits expense increased 4.7% compared to the second
  quarter of 2012 primarily due to higher accrued incentive compensation.

  *Fund management and administration expenses increased 11.3% to $5.7
    million compared to the third quarter of 2011.Higher average AUM resulted
    in a $0.3 million increase in portfolio management, fund administration
    and accounting, index licensing and distribution fees.This expense also
    increased due to additional ETFs we launched during the period.We had 49
    ETFs at the end of the third quarter of 2012 compared to 47 at the end of
    the third quarter of 2011.

  Fund management and administration expenses increased 1.9% compared to the
  second quarter of 2012 primarily due to higher average AUM and higher
  printing costs due to an increase in the number of holders of our
  ETFs.Partly offsetting this increase was a decrease in security movement
  fees as a result of the WisdomTree international and emerging market ETFs
  annual rebalancing occurring in the second quarter of 2012.

  *Marketing and advertising remained essentially unchanged at $0.9 million
    compared to the third quarter of 2011.This expense decreased 44.3%
    compared to the second quarter of 2012 primarily due to lower levels of
    advertising related activities.
    
  *Sales and business development expenses decreased 12.9% to $0.8 million
    compared to the third quarter of 2011 primarily due to lower levels of new
    product development related activities.This expense was essentially
    unchanged compared to the second quarter of 2012.
    
  *Professional and consulting fees increased 4.4% to $1.3 million compared
    to the third quarter of 2011 primarily due to executive recruiting fees
    related to the recruitment of our new chief operating officer as well as
    higher accounting and legal fees as a result of becoming a fully
    reporting, exchange-listed company.This expense declined 6.9% compared to
    the second quarter of 2012 primarily due to lower variable stock based
    compensation.
    
  *Occupancy, communication and equipment expense increased 29.9% to $0.4
    million compared to the third quarter of 2011.Beginning in the second
    quarter, we began occupying office space we had previously sub-leased to a
    third party.This expense was essentially unchanged compared to the second
    quarter of 2012.
    
  *Third-party sharing arrangements expense decreased 33.4% to $1.2 million
    compared to the third quarter of 2011 and decreased 2.8% compared to the
    second quarter of 2012 primarily due to lower AUM in our currency and
    international fixed income ETFs subject to the profit sharing arrangements
    with BNY Mellon.
    
  *Other expenses increased 20.8% to $0.9 million compared to the third
    quarter of 2011 and 15.6% compared to the second quarter of 2012 primarily
    due to higher general and administrative expenses as well as public
    company related expenses.
    
  *ETF shareholder proxy – We have completed our ETF shareholder proxy and
    did not incur any additional expenses related to the proxy solicitation of
    the WisdomTree ETF shareholders during the third quarter.
    
  *Litigation and Insurance Reimbursement – We incurred approximately $1.5
    million in expenses in the third quarter of 2012 related to our patent
    infringement lawsuit.We have recognized a $1.3 million reimbursement from
    our insurance carrier for a net expense of $0.2 million in the third
    quarter of 2012.
    
  *We incurred $0.2 million in advisory expenses in the third quarter of 2011
    related to listing our common stock on NASDAQ.

Year-to-date Results

Total revenues increased 25.0% to $61.2 million for the nine months ended
September 30, 2012 as compared to the same period in 2011.This increase was
due to higher average AUM, which increased 28.6%, primarily due to $3.7
billion of ETF net inflows.Our average fee decreased to 0.54% from 0.55% due
to a change in mix of our AUM.

Total expenses increased 18.5% to $55.4 million over the comparable period.
Excluding non-operating expenses related to our patent litigation, ETF
shareholder proxy and initial exchange listing, expenses increased 11.8% to
$51.5 million from $46.1 million.This increase was primarily due to higher
compensation and benefits related expenses due to higher accrued incentive
compensation, stock based compensation, payroll taxes and expenses associated
with higher headcount; higher fund management and administration expenses due
to higher average asset balances; higher professional fees as a result of
becoming a fully reporting public company as well as higher variable stock
based compensation granted to non-employees; and higher marketing,
advertising, sales and business development expenses to support our growth.

Balance Sheet

As of September 30, 2012, WisdomTree had total assets of $60.8 million which
consisted primarily of cash and cash equivalents of $39.6 million and
investments of $9.4 million.The Company has no debt. There were approximately
125.1 million shares of common stock issued as of September 30, 2012. Fully
diluted weighted average shares outstanding were 138.5 million for the three
months ended September 30, 2012.

Conference Call

WisdomTree will discuss its results and operational highlights during a
conference call on Friday, October 26, 2012 at 9:00 a.m. ET. The call-in
number will be (877) 303-7209.Anyone outside the U.S. or Canada should call
(970) 315-0420.The slides used during the presentation will be available at
http://ir.wisdomtree.com.For those unable to join the conference call at the
scheduled time, an audio replay will be available on http://ir.wisdomtree.com.

          Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements that are based on our
management's beliefs and assumptions and on information currently available to
our management. Although we believe that the expectations reflected in these
forward-looking statements are reasonable, these statements relate to future
events or our future financial performance, and involve known and unknown
risks, uncertainties and other factors that may cause our actual results,
levels of activity, performance or achievements to be materially different
from any future results, levels of activity, performance or achievements
expressed or implied by these forward-looking statements. In some cases, you
can identify forward-looking statements by terminology such as "may," "will,"
"should," "expects," "intends," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential," "continue" or the negative of these
terms or other comparable terminology. These statements are only predictions.
You should not place undue reliance on forward-looking statements because they
involve known and unknown risks, uncertainties and other factors, which are,
in some cases, beyond our control and which could materially affect results.
Factors that may cause actual results to differ materially from current
expectations include, among other things, the risks described below. If one
or more of these or other risks or uncertainties occur, or if our underlying
assumptions prove to be incorrect, actual events or results may vary
significantly from those implied or projected by the forward-looking
statements. No forward-looking statement is a guarantee of future performance.
You should read this press release completely and with the understanding that
our actual future results may be materially different from any future results
expressed or implied by these forward-looking statements.

In particular, forward-looking statements in this press release may include
statements about:

  *anticipated trends, conditions and investor sentiment in the global
    markets;
    
  *anticipated levels of inflows into and outflows out of our exchange traded
    funds;
    
  *our ability to deliver favorable rates of return to investors;
    
  *our ability to develop new products and services;
    
  *our ability to maintain current vendors or find new vendors to provide
    services to us at favorable costs;
    
  *competition in our business;
    
  *the effect of laws and regulations that apply to our business; and
    
  *our views on litigation to which we are subject.

Our business is subject to many risks and uncertainties, including without
limitation:

  *We have only a limited operating history and, as a result, recent
    historical growth may not provide an accurate representation of the growth
    we may experience in the future, which may make it difficult to evaluate
    our future prospects.
    
  *Challenging market conditions associated with declining prices of
    securities can adversely affect our business by reducing the market value
    of the assets we manage or causing WisdomTree ETF shareholders to sell
    their fund shares and trigger redemptions.
    
  *Fluctuations in the amount and mix of our AUM may negatively impact
    revenue and operating margin.
    
  *Most of our assets under management are held in ETFs that invest in
    foreign securities and we therefore have substantial exposure to foreign
    market conditions and are subject to currency exchange rate risks.
    
  *We derive a substantial portion of our revenue from products invested in
    emerging markets and are exposed to the market-specific political and
    economic risks as well as general investor sentiment regarding future
    growth of those markets.
    
  *We derive a substantial portion of our revenue from a limited number of
    products and, as a result, our operating results are particularly exposed
    to the performance of those funds, investor sentiment toward the
    strategies pursued by those funds and our ability to maintain the assets
    under management of those funds.
    
  *The WisdomTree ETFs have a limited track record, and poor investment
    performance could cause our revenue to decline.
    
  *We depend on other third parties to provide many critical services to
    operate our business and the WisdomTree ETFs. The failure of key vendors
    to adequately provide such services could materially affect our operating
    business and harm WisdomTree ETF shareholders.
    
  *We are currently, and may from time to time in the future be, involved in
    legal proceedings that could require significant management time and
    attention, possibly resulting in significant expense or in an unfavorable
    outcome, which could have a material adverse effect on our business,
    financial conditions, results of operations and cash flows.

Other factors, such as general economic conditions, including currency
exchange rate fluctuations, also may have an effect on the results of our
operations. For a more complete description of the risks noted above and other
risks that could cause our actual results to differ from our current
expectations, please see the section entitled "Risk Factors" in the Company's
Annual Report on Form 10-K for the fiscal year ended December 31, 2011.

The forward-looking statements in this press release represent our views as of
the date of this press release.We anticipate that subsequent events and
developments may cause our views to change.However, while we may elect to
update these forward-looking statements at some point in the future, we have
no current intention of doing so except to the extent required by applicable
law.Therefore, these forward-looking statements do not represent our views as
of any date other than the date of this press release.

About WisdomTree

WisdomTree Investments, Inc. is a New York-based exchange-traded fund ("ETF")
sponsor and asset manager. WisdomTree currently offers 49 ETFs across
Equities, Currency Income, Fixed Income and Alternatives asset
classes.WisdomTree also licenses its indexes to third parties for proprietary
products and promotes the use of WisdomTree ETFs in 401(k) plans. WisdomTree
currently has approximately $16.7 billion in ETF assets under management. For
more information, please visit www.wisdomtree.com. 

WisdomTree® is the marketing name for WisdomTree Investments, Inc. and its
wholly owned subsidiaries WisdomTree Asset Management, Inc. and WisdomTree
Retirement Services, Inc.WisdomTree Asset Management, Inc. is a registered
investment advisor and is the investment advisor to the WisdomTree Trust and
the WisdomTree ETFs. The WisdomTree Trust is a registered open-end investment
company. Each WisdomTree ETF is a series of the WisdomTree Trust. WisdomTree
Retirement Services, Inc. supports the use of the WisdomTree ETFs in
retirement plans by financial professionals.

The WisdomTree Investments, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=11269

This press release is not, and shall not constitute, an offer to sell or the
solicitation of an offer to buy any of our securities, nor shall there be any
sale of any of our securities in any state in which such an offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.


WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
                                                                       
              Three Months Ended            % Change From Nine Months Ended
              Sept. 30, Jun. 30,  Sept. 30, Jun.   Sept.  Sept. 30, Sept. 30, %
                                             30,    30,
              2012      2012      2011      2012   2011   2012      2011      Change
                                                                       
Revenues                                                                
ETF advisory  $21,440 $20,230 $17,554 6.0%   22.1%  $60,645 $48,341 25.5%
fees
Other income  221      163      182      35.6%  21.4%  579      644      -10.1%
                                                                       
Total         21,661   20,393   17,736   6.2%   22.1%  61,224   48,985   25.0%
revenues
                                                                       
Expenses                                                                
Compensation  5,734    5,477    5,085    4.7%   12.8%  17,068   14,912   14.5%
and benefits
Fund
management and 5,671    5,567    5,093    1.9%   11.3%  16,677   14,991   11.2%
administration
Marketing and 862      1,548    911      -44.3% -5.4%  3,736    3,240    15.3%
advertising
Sales and
business       831      842      954      -1.3%  -12.9% 2,533    2,612    -3.0%
development
Professional
and consulting 1,305    1,401    1,250    -6.9%  4.4%   3,815    3,193    19.5%
fees
Occupancy,
communication  374      375      288      -0.3%  29.9%  1,050    846      24.1%
and equipment
Depreciation
and            79       75       68       5.3%   16.2%  225      200      12.5%
amortization
Third party
sharing        1,194    1,229    1,794    -2.8%  -33.4% 4,168    4,434    -6.0%
arrangements
Other         859      743      711      15.6%  20.8%  2,211    1,625   36.1%
ETF
shareholder    --      3,198    --      n/a    n/a    3,264    --      n/a
proxy
Litigation,   219      (191)    --      n/a    n/a    700      --      n/a
net
Exchange      --      --      223      n/a    n/a    --      729      n/a
listing
Total         17,128   20,264   16,377   -15.5% 4.6%   55,447   46,782   18.5%
expenses
                                                                       
Income before
provision for  4,533    129      1,359    n/a    233.6% 5,777    2,203    162.2%
income taxes
                                                                       
Provision for  --      --      --                  --      --      
income taxes
                                                                       
Net income     $4,533  $129   $1,359  n/a    233.6% $5,777  $2,203  162.2%
                                                                       
                                                                       
Net income per $0.04   $0.00   $0.01               $0.05   $0.02   
share - basic
                                                                       
Net income per
share -        $0.03   $0.00   $0.01               $0.04   $0.02   
diluted
                                                                       
Weighted
average common 123,214  121,920  114,238              121,445  113,886  
shares - basic
                                                                       
Weighted
average common 138,458  138,477  136,075              137,878  135,615  
shares -
diluted



WISDOMTREE INVESTMENTS, INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
(Unaudited)
                                                                
                            Three Months Ended            Nine Months Ended
                            Sept. 30, Jun. 30,  Sept. 30, Sept. 30, Sept. 30,
                            2012      2012      2011      2012      2011
                                                                
Revenues                                                         
ETF advisory fees            $21,440 $20,230 $17,554 $60,645 $48,341
Other income                 221      163      182      579      644
                                                                
Total revenues               21,661   20,393   17,736   61,224   48,985
                                                                
Operating expenses                                               
Compensation and benefits    5,734    5,477    5,085   17,068   14,912
Fund management and          5,671    5,567    5,093    16,677   14,991
administration
Marketing and advertising   862      1,548    911     3,736    3,240
Sales and business          831      842      954      2,533    2,612
development
Professional and consulting 1,305    1,401    1,250    3,815    3,193
fees
Occupancy, communication    374      375      288      1,050    846
and equipment
Depreciation and            79       75      68       225      200
amortization
Third party sharing         1,194    1,229    1,794    4,168    4,434
arrangements
Other                       859      743      711     2,211    1,625
Total proforma operating    16,909   17,257   16,154   51,483   46,053
expenses
                                                                
                                                                
Proforma operating income    4,752    3,136    1,582    9,741    2,932
                                                                
ETF shareholder proxy       --      3,198    --      3,264    --
Litigation, net             219      (191)    --      700      --
Exchange listing            --      --      223      --      729
Income before provision for  4,533    129      1,359    5,777    2,203
income taxes
                                                                
Provision for income taxes   --      --      --      --      --
                                                                
Net income                   $4,533  $129    $1,359  $5,777  $2,203



WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share amount)

                                                   September 30, December 31,
                                                   2012          2011
                                                   (Unaudited)   
                                                                
ASSETS                                                           
Current assets:                                                  
Cash and cash equivalents                           $39,603     $25,630
Accounts receivable                                 9,384         5,625
Other current assets                                1,783        1,601
                                                                
Total current assets                                50,770       32,856
                                                                
Fixed assets, net                                   554          597
Investments                                         9,412        9,056
Other noncurrent assets                             56           58
                                                                
Total assets                                        $60,792     $42,567
                                                                
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
LIABILITIES                                                      
Current liabilities:                                             
Fund management and administration payable          $9,299      $10,035
Compensation and benefits payable                   3,235        4,168
Accounts payable and other liabilities              3,608        2,360
                                                                
Total current liabilities                           16,142       16,563
                                                                
Other noncurrent liabilities                        48           151
                                                                
Total liabilities                                   16,190       16,714
                                                                
                                                                
STOCKHOLDERS' EQUITY                                             
Common stock, par value $0.01; 250,000 shares                    
authorized:
issued: 125,081 and 116,703                        1,251        1,167
outstanding: 123,556 and 115,392                                
Additional paid-in capital                          176,635      163,747
Accumulated deficit                                 (133,284)    (139,061)
                                                                
Total stockholders' equity                          44,602       25,853
                                                                
Total liabilities and stockholders' equity          $60,792     $42,567



WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited)
                                                              
                                                Nine Months Ended
                                                September 30, September 30,
                                                2012           2011
                                                              
Cash flows from operating activities                           
Net income                                       $5,777       $2,203
Non-cash items included in net income:                         
Depreciation and amortization                    225           200
Stock-based compensation                         5,903         5,427
Deferred rent                                    (106)         (115)
Accretion to interest income and other           89            79
Changes in operating assets and liabilities:                   
Accounts receivable                              (3,759)       (912)
Other assets                                     (185)        (510)
Fund management and administration payable       (736)         3,152
Compensation and benefits payable                (933)         (651)
Accounts payable and other liabilities           1,251         556
                                                              
Net cash provided by operating activities        7,526         9,429
                                                              
Cash flows from investing activities                           
Purchase of fixed assets                         (182)         (84)
Purchase of investments                          (6,098)       (5,833)
Proceeds from the redemption ofinvestments      5,657         5,116
                                                              
Net cash (used in) investing activities          (623)         (801)
                                                              
Cash flows from financing activities                           
Net proceeds from sale of common stock           4,329         --
Shares repurchased                               (1,169)       (2,130)
Proceeds from exercise of stock options          3,910         321
                                                              
Net cash provided by/(used in) financing         7,070         (1,809)
activities
                                                              
Net increase in cash and cash equivalents        13,973        6,819
                                                              
Cash and cash equivalents - beginning of period  25,630        14,233
                                                              
Cash and cash equivalents - end of period        $39,603      $21,052
                                                              
Supplemental disclosure of cash flow information               
                                                              
Cash paid for income taxes                       $29          $12
                                                              
Non-cash investing and financing activities:                  
Cashless exercise of stock options              $--        $391

                                                                
                                                                
WisdomTree Investments, Inc.                                     
Key Operating Statistics                                         
(Unaudited)
                                                                
                             Three Months Ended           Nine Months Ended
                             September June 30, September September September
                              30,                30,       30,       30,
                             2012      2012     2011      2012      2011
Total ETFs (in millions)                                         
Beginning of period assets    15,004   15,691  12,934   12,182   9,891
Inflows/(outflows)            1,036    338     179      3,673    3,142
Market                        743      (1,025) (1,929)  928      (1,849)
appreciation/(depreciation)
End of period assets          16,783   15,004  11,184   16,783   11,184
                                                                
Average assets during the     15,769   15,116  12,762   15,051   11,706
period
                                                                
ETF Industry and Market Share                                    
(in billions)
ETF industry net inflows      58.4     20.7    20.9     132.3    73.7
WisdomTree market share of    1.8%      1.6%     0.9%      2.8%      4.3%
industry inflows
                                                                
International Developed                                          
Equity ETFs (in millions)
Beginning of period assets    2,846    2,964   2,867    2,407    2,311
Inflows/(outflows)            (58)     137     57       381      565
Market                        108     (255)   (423)    108      (375)
appreciation/(depreciation)
End of period assets          2,896    2,846   2,501    2,896    2,501
                                                                
Average assets during the     2,859    2,853   2,722    2,798    2,680
period
                                                                
Emerging Markets Equity ETFs                                     
(in millions)
Beginning of period assets    5,430    5,594   3,988    3,613    3,780
Inflows/(outflows)            736      462    102      2,596    506
Market                        376      (626)   (860)    333      (1,056)
appreciation/(depreciation)
End of period assets          6,542    5,430   3,230    6,542    3,230
                                                                
Average assets during the     5,915    5,398  3,719    5,365    3,733
period
                                                                
US Equity ETFs (in millions)                                     
Beginning of period assets    4,094    4,275   2,612   3,429    2,057
Inflows/(outflows)            363      (113)   241      815      668
Market                        183      (68)    (330)    396      (202)
appreciation/(depreciation)
End of period assets          4,640    4,094   2,523   4,640    2,523
                                                                
Average assets during the     4,393    4,101   2,528    4,161    2,352
period
                                                                
Currency ETFs (in millions)                                      
Beginning of period assets    769      881     1,896    950      1,179
Inflows/(outflows)            (129)   (82)    (566)    (315)    87
Market                        14       (30)    (136)    19      (72)
appreciation/(depreciation)
Reclass to Int'l Fixed Income                                    
End of period assets          654      769     1,194    654      1,194
                                                                
Average assets during the     694      828     1,786    819      1,599
period
                                                                
International Fixed Income                                       
ETFs (in millions)
Beginning of period assets    1,698    1,735   1,379    1,506    564
Inflows/(outflows)            148      (8)     280     301      1,057
Market                        58       (29)    (166)    97       (128)
appreciation/(depreciation)
Reclass from Currency                                            
End of period assets          1,904    1,698   1,493    1,904    1,493
                                                                
Average assets during the     1,749   1,716   1,780    1,697    1,218
period
                                                                
Alternative Strategy ETFs (in                                    
millions)
Beginning of period assets    167      242    192      277      --
Inflows/(outflows)            (24)     (58)    65       (105)    259
Market                        4        (17)    (14)     (25)     (16)
appreciation/(depreciation)
End of period assets          147      167    243      147      243
                                                                
Average assets during the     159      220     227      211      124
period
                                                                
Average ETF assets during the                                    
period
Emerging markets equity ETFs  38%       36%      29%       36%       32%
US equity ETFs                28%       27%      20%       28%       20%
International developed       18%       19%      22%       19%       23%
equity ETFs
International fixed income    11%       11%      14%       11%       10%
ETFs
Currency ETFs                 4%        6%       14%       5%        14%
Alternative strategy ETFs     1%        1%       1%        1%        1%
Total                         100%      100%     100%      100%      100%
                                                                
Average ETF advisory fee                                         
during the period
Alternative strategy ETFs     0.94%     0.95%    0.95%     0.95%     --
Emerging markets equity ETFs  0.67%     0.66%    0.69%     0.67%     0.70%
International fixed income    0.55%     0.55%    0.55%     0.55%     0.55%
ETFs
International developed       0.54%     0.54%    0.54%     0.54%     0.54%
equity ETFs
Currency ETFs                 0.50%     0.50%    0.49%     0.50%     0.49%
US equity ETFs                0.35%     0.35%    0.34%     0.35%     0.34%
Blended total                 0.54%     0.54%    0.55%     0.54%     0.55%
                                                                
Number of ETFs - end of the                                      
period
International developed       18       18      18       18       18
equity ETFs
US equity ETFs                12       12      12       12       12
Currency ETFs                 7        7       9       7        9
International fixed income    5        5       2        5        2
ETFs
Emerging markets equity ETFs  5        4       4        5        4
Alternative strategy ETFs     2        2      2        2        2
Total                         49       48      47       49       47
                                                                
Headcount                     70        66       64        70        64
                                                                
Note: Previously issued
statistics may be restated                                       
due to trade adjustments
Source: Investment Company
Institute, Bloomberg,                                            
WisdomTree


Non-GAAP Financial Measurements

In an effort to provide additional information regarding our results as
determined by GAAP, we also disclose certain non-GAAP information which we
believe provides useful and meaningful information.The non-GAAP financial
measurements included in this release include proforma operating income,
proforma expenses and proformapre-tax operating margin. Our management
reviews these non-GAAP financial measurements when evaluating our financial
performance and results of operations; therefore, we believe it is useful to
provide information with respect to these non-GAAP measurements so as to share
this perspective of management.Non-GAAP measurements do not have any
standardized meaning, do not replace nor are superior to GAAP financial
measurements and are unlikely to be comparable to similar measures presented
by other companies. These non-GAAP financial measurements should be considered
in the context with our GAAP results. We have disclosed our results excluding
certain non-operating items. We consider the costs associated with (1) our
patent litigation with Research Affiliates LLC (including the impact of
insurance reimbursements); (2) expenses for the WisdomTree ETF shareholder
proxy solicitation; and (3) advisory costs related to the preparation of our
Form 10 for the initial listing of our common stock on NASDAQ as non-operating
items. Management excludes these costs when measuring our financial
performance as they are not directly related to our core business of being an
ETF sponsor and asset manager.



WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
GAAP to NON-GAAP RECONCILIATION
(in thousands)
(Unaudited)
                                                             
                      For the Three Months Ended    For the Nine Months Ended
                      Sept. 30, Jun. 30,  Sept. 30, Sept. 30,    Sept. 30,
                      2012      2012      2011      2012         2011
GAAP total expenses    $17,128 $20,264 $16,377 $55,447    $46,782
                                                             
Less ETF shareholder  --       (3,198)  --     (3,264)     --
proxy
Less patent           (219)    191      --      (700)       --
litigation
Less initial exchange --      --      (223)    --         (729)
listing
                                                             
Proforma operating     $16,909 $17,257 $16,154 $51,483    $46,053
expenses
                                                             
                                                             
GAAP net income        $4,533  $129    $1,359  $5,777     $2,203
                                                             
Add ETF shareholder   --     3,198    --      3,264       --
proxy
Add patent litigation 219      (191)    --      700         --
Add initial exchange  --      --      223      --         729
listing
                                                             
Proforma operating     $4,752  $3,136  $1,582  $9,741     $2,932
income
                                                             
                                                             
GAAP net income        $4,533  $129    $1,359  $5,777     $2,203
Divide GAAP total     21,661   20,393   17,736   61,224      48,985
revenue
                                                             
GAAP pre-tax margin    20.9%     0.6%      7.7%      9.4%         4.5%
                                                             
                                                             
Proforma pre-tax net   $4,752  $3,136  $1,582  $9,741     $2,932
income
Divide GAAP total     21,661   20,393   17,736   61,224      48,985
revenue
                                                             
Proforma pre-tax       21.9%     15.4%     8.9%      15.9%        6.0%
operating margin

CONTACT: WisdomTree Investments, Inc.
         Stuart Bell / Jessica Zaloom
         +1.917.267.3702 / +1.917.267.3735
         sbell@wisdomtree.com / jzaloom@wisdomtree.com

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