WisdomTree Announces First Quarter 2013 Results

WisdomTree Announces First Quarter 2013 Results

             Record $5.9 Billion Net Inflows, 10.8% Market Share

                Record Revenues, Up 53% From Year Ago Quarter

Record Net Income $7.9 Million, Up 50% From Prior Quarter, Up Seven Times From
                               Year Ago Quarter

                              Diluted EPS $0.06

NEW YORK, April 26, 2013 (GLOBE NEWSWIRE) -- WisdomTree Investments, Inc.
(Nasdaq:WETF), an exchange-traded fund ("ETF") sponsor and asset manager,
today reported net income of $7.9 million for the first quarter of 2013, or
$0.06 per share on a fully diluted basis. This compares to $1.1 million, or
$0.01 per share on a fully diluted basis, in the first quarter of 2012 and
$5.3 million, or $0.04 per share on a fully diluted basis, in the fourth
quarter of 2012.

WisdomTree CEO and President Jonathan Steinberg commented, "WisdomTree's net
inflows of $5.9 billion represented our best quarter yet and fueled a
meaningful acceleration in our organic growth in 2013. The drivers behind this
strong top-line growth underscore two important points:First, WisdomTree is
innovating and executing at the highest levels – our currency hedged Japanese
equity strategy led the entire ETF industry with $3.9 billion of net inflows
in the first quarter.Second, we are seeing balanced growth across our
platform in important asset classes.In fact, excluding Japan-related assets,
we achieved our second best quarter with $1.9 billion in inflows across our
dividend-weighted equity and fixed income strategies."

Mr. Steinberg continued, "Our scalable business model is driving strong
top-line growth, expanding margins and earnings. At $27 billion in assets and
the fifth largest U.S. ETF sponsor today, WisdomTree has reached an exciting
point in our development."

Assets Under Management, Net Inflows and Market Share

ETF assets under management ("AUM") were $25.1 billion at March 31, 2013, up
from $15.7 billion at March 31, 2012 and $18.3 billion at December 31,
2012.Net inflows for the first quarter of 2013 were $5.9 billion compared to
$2.3 billion in the first quarter of 2012 and $1.1 billion in the fourth
quarter of 2012.WisdomTree's market share of industry net inflows was 10.8%
in the first quarter of 2013 as compared to 4.3% in the first quarter of 2012
and 1.9% in the fourth quarter of 2012.

Summary Operating and Financial Highlights
                                                                 
                              Three Months Ended            Change From
                              Mar. 31,  Dec. 31,  Mar. 31,  Dec. 31, Mar. 31,
Operating Highlights (in       2013      2012      2012      2012     2012
billions):
ETF AUM                        $25.1     $18.3     $15.7     37.3%    60.0%
ETF net inflows                $5.9      $1.1      $2.3      456.5%   156.3%
Average ETF AUM                $21.9     $17.1     $14.3     28.5%    53.8%
Average ETF advisory fee       0.54%     0.54%     0.54%     --       --
Market share of industry       10.8%     1.9%      4.3%      +8.9     +6.5
inflows
                                                                 
Financial Highlights (in                                          
millions):
Total revenues                 $29.3     $23.6     $19.2     24.5%    53.1%
Net income                     $7.9      $5.3      $1.1      49.5%    604.4%
Proforma operating income      $7.9      $5.1      $1.9      54.5%    323.9%
(non-GAAP)
Gross margin^1                 72%       68%       63%       +4       +9
Pre-tax margin                 27%       22%       6%        +5       +21
Proforma pre-tax margin        27%       22%       10%       +5       +17
                                                                 
^1 Gross margin is defined as total revenues less fund management and
administration expenses and third-party sharing arrangements.

^Recent Business Developments



  *On January 14, 2013, WisdomTree announced the WisdomTree Emerging Markets
    Equity Income Fund (DEM) Surpassed $5 Billion in Assets.
  *On January 22, 2013, WisdomTree announced the WisdomTree Japan Hedged
    Equity Fund (DXJ) Surpassed $2 Billion in Assets.
  *On January 23, 2013, WisdomTree announced the Company Surpassed $20
    Billion in AUM.
  *On January 31, 2013, WisdomTree announced the launch of the WisdomTree
    Global Corporate Bond Fund (GLCB).
  *On March 15, 2013, WisdomTree announced the WisdomTree Japan Hedged Equity
    Fund (DXJ) Surpassed $5 Billion in Assets.
  *On April 25, 2013, WisdomTree announced the WisdomTree Emerging Markets
    Corporate Bond Fund (EMCB) Received a National Association of Insurance
    Companies (NAIC) Designation.

Performance

77% of the $21.8 billion invested in our 34 equity ETFs on March 31, 2013 were
in funds that, since their respective inceptions, outperformed their
capitalization-weighted or competitive benchmarks through that date. 62%, or
21 of our 34 equity ETFs, outperformed their capitalization-weighted or
competitive benchmarks since their respective inceptions through March 31,
2013. For more information about WisdomTree ETFs including standardized
performance, please click here or visit www.wisdomtree.com.

First Quarter Financial Discussion

Revenues

Total revenues increased 53.1% to a record $29.3 million as compared to the
first quarter of 2012 and 24.5% compared to the fourth quarter of 2012
primarily due to higher average AUM as a result of record $5.9 billion of net
inflows into our ETFs. Our average advisory fee earned was unchanged at 0.54%
as compared to the first and fourth quarters of 2012.

Margins

Our gross margin, which is our total revenues less fund management and
administration expenses and third party sharing arrangements, was 72% in the
first quarter of 2013 as compared to 63% in the first quarter of 2012 and 68%
in the fourth quarter of 2012.The end of our joint venture with BNY Mellon
and higher AUM were the primary drivers for the higher gross margin.

Our pre-tax margin was 27% in the first quarter of 2013 as compared to 6% in
the first quarter of 2012 and 22% in the fourth quarter of 2012 reflecting the
operating scale in our business model.

Expenses

Total expenses increased 19.0% to $21.5 million from $18.1 million in the
first quarter of 2012 and increased 17.3% from $18.3 million in the fourth
quarter of 2012. Included in the prior periods were non-operating items
related to patent litigation, ETF shareholder proxy and secondary and initial
exchange listing costs.

                                 Three Months Ended         Change from
(in thousands)                    Mar. 31, Dec. 31, Mar. 31, Dec. 31, Mar. 31,
                                 2013     2012     2012     2012     2012
Total expenses                    $21,487  $18,321  $18,055  17.3%    19.0%
Patent litigation, net            --       524      (672)            
ETF shareholder proxy             --       --       (66)             
Offering costs                    --      (353)    --              
Proforma operating expenses       $21,487  $18,492  $17,317  16.2%    24.1%
(non-GAAP)

  *Compensation and benefits expense increased 27.7% to $7.5 million compared
    to the first quarter of 2012.This increase was primarily due to higher
    accrued incentive compensation due to our record level of net inflows.Our
    headcount at the end of the first quarter of 2013 was 72 compared to 64 at
    the end of the first quarter of 2012.

  Compensation and benefits expense increased 21.4% compared to the fourth
  quarter of 2012 primarily due to higher accrued incentive compensation,
  higher stock based compensation and payroll taxes.

  *Fund management and administration expenses increased 51.2% to $8.2
    million compared to the first quarter of 2012.At the end of 2012, we
    ended our joint venture with BNY Mellon.As a result, we began to record
    certain operating costs related to our currency and fixed income ETFs,
    which were previously recognized by BNY Mellon as part of the joint
    venture.This resulted in approximately $0.6 million in higher
    costs.Higher average AUM resulted in a $1.8 million increase in portfolio
    management, fund administration, accounting, index licensing, regulatory
    and distribution fees.We also incurred $0.3 million in higher printing
    related fees due to an increase in the number of holders of our ETFs.

  Fund management and administration expenses increased 29.6% compared to the
  fourth quarter of 2012 primarily due to the end of the joint venture and
  higher average AUM.

  *Marketing and advertising expenses increased 46.1% to $1.9 million
    compared to the first quarter of 2012 and increased 19.1% compared to the
    fourth quarter of 2012 primarily due to higher levels of advertising
    related activities to support our growth.
    
  *Sales and business development expenses more than doubled to $1.8 million
    compared to the first quarter of 2012 and increased 71.0% compared to the
    fourth quarter of 2012 primarily due to higher levels of sales related
    initiatives and activities.
    
  *Professional and consulting fees decreased 44.7% to $0.6 million compared
    to the first quarter of 2012 and decreased 22.2% compared to the fourth
    quarter of 2012 primarily due to lower variable stock based compensation,
    which ended as of the end of 2012, partly offset by higher corporate
    consulting and accounting related fees.
    
  *Occupancy, communication and equipment expense increased 25.2% to $0.4
    million compared to the first quarter of 2012.Beginning in the second
    quarter of 2012, we began occupying office space we had previously
    sub-leased to a third party.This expense was essentially unchanged
    compared to the fourth quarter of 2012.
    
  *Third-party sharing arrangements expense declined 93.6% to $0.1 million
    compared to the first quarter of 2012 and declined 91.5% compared to the
    fourth quarter of 2012 due to the end of our joint venture with BNY Mellon
    discussed above.
    
  *Other expenses increased 41.4% to $0.9 million compared to the first
    quarter of 2012 and increased 12.5% compared to the fourth quarter of 2012
    primarily due to higher general and administrative expenses.

Balance Sheet

As of March 31, 2013, WisdomTree had total assets of $76.1 million which
consisted primarily of cash and cash equivalents of $52.3 million and
investments of $10.7 million.The Company has no debt. There were
approximately 127.7 million shares of common stock issued as of March 31,
2013. Fully diluted weighted average shares outstanding were 139.7 million for
the three months ended March 31, 2013.

Conference Call

WisdomTree will discuss its results and operational highlights during a
conference call on Friday, April 26, 2013 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; and
    
  *the effect of laws and regulations that apply to our business.

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 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, 2012.

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 47 ETFs across
Equities, Fixed Income, Currency 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 $27.3 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.

WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
                                                                 
                              Three Months Ended            % Change From
                              Mar.31,  Dec. 31,  Mar.31,  Dec. 31, Mar.31,
                              2013      2012      2012      2012     2012
                                                                 
Revenues                                                          
ETF advisory fees              $29,153 $23,379 $18,975 24.7%    53.6%
Other income                   188      195      195      -3.6%    -3.6%
                                                                 
Total revenues                 29,341   23,574   19,170   24.5%    53.1%
                                                                 
Expenses                                                          
Compensation and benefits      7,482    6,165    5,857    21.4%    27.7%
Fund management and            8,223    6,343    5,439    29.6%    51.2%
administration
Marketing and advertising      1,937    1,627    1,326    19.1%    46.1%
Sales and business development 1,801    1,053    860      71.0%    109.4%
Professional and consulting    613      788      1,109    -22.2%   -44.7%
fees
Occupancy, communication and   377      369      301      2.2%     25.2%
equipment
Depreciation and amortization  82       82       71       0.0%     15.5%
Third party sharing            111      1,300    1,745    -91.5%   -93.6%
arrangements
Other                          861      765      609      12.5%    41.4%
ETF shareholder proxy          --      --      66       n/a      n/a
Patent litigation, net        --      (524)    672      n/a      n/a
Offering costs                 --      353      --      n/a      n/a
Total expenses                 21,487   18,321   18,055   17.3%    19.0%
                                                                 
Income before provision for    7,854    5,253    1,115    49.5%    604.4%
income taxes
                                                                 
Provision for income taxes     --      --      --              
                                                                 
Net income                     $7,854  $5,253  $1,115  49.5%    604.4%
                                                                 
                                                                 
Net income per share - basic  $0.06   $0.04   $0.01           
                                                                 
Net income per share - diluted $0.06   $0.04   $0.01           
                                                                 
Weighted average common shares 125,436  124,202  119,182          
- basic
                                                                 
Weighted average common shares 139,650  138,417  137,400          
- diluted


WISDOMTREE INVESTMENTS, INC.
NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
(Unaudited)
                                                          
                                        Three Months Ended
                                        Mar.31,  Dec. 31,  Mar.31,
                                        2013      2012      2012
                                                          
Revenues                                                   
ETF advisory fees                        $29,153 $23,379 $18,975
Other income                             188      195      195
                                                          
Total revenues                           29,341   23,574   19,170
                                                          
Operating expenses                                         
Compensation and benefits                7,482    6,165    5,857
Fund management and administration       8,223    6,343    5,439
Marketing and advertising                1,937    1,627    1,326
Sales and business development           1,801    1,053    860
Professional and consulting fees         613      788      1,109
Occupancy, communication and equipment   377      369      301
Depreciation and amortization            82       82       71
Third party sharing arrangements         111      1,300    1,745
Other                                    861      765      609
Total proforma operating expenses        21,487   18,492   17,317
                                                          
                                                          
Proforma operating income                7,854    5,082    1,853
                                                          
ETF shareholder proxy                    --      --      66
Patent litigation, net                  --      (524)    672
Offering costs                           --      353      --
Income before provision for income taxes 7,854    5,253    1,115
                                                          
Provision for income taxes               --      --      --
                                                          
Net income                               $7,854  $5,253  $1,115


WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED BALANCE SHEET
(in thousands, except per share amount)
                                                                
                                                     March 31,   December 31,
                                                     2013        2012
                                                     (Unaudited) 
                                                                
ASSETS                                                           
Current assets:                                                  
Cash and cash equivalents                             $52,297   $41,246
Accounts receivable                                   11,098      9,348
Other current assets                                  1,529      1,273
                                                                
Total current assets                                  64,924     51,867
                                                                
Fixed assets, net                                     408        480
Investments                                           10,668     11,036
Other noncurrent assets                               53         42
                                                                
Total assets                                          $76,053   $63,425
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY                             
LIABILITIES                                                      
Current liabilities:                                             
Fund management and administration payable            $9,513    $6,924
Compensation and benefits payable                     2,613      2,156
Accounts payable and other liabilities                2,800      3,272
                                                                
Total current liabilities                             14,926     12,352
                                                                
Other noncurrent liabilities                          --        13
                                                                
Total liabilities                                     14,926     12,365
                                                                
STOCKHOLDERS' EQUITY                                             
Common stock, par value $0.01; 250,000 shares                    
authorized:
issued: 127,667 and 126,554                           1,276      1,265
outstanding: 125,628and 125,272                                 
Additional paid-in capital                            180,028    177,826
Accumulated deficit                                   (120,177)  (128,031)
                                                                
Total stockholders' equity                            61,127     51,060
                                                                
Total liabilities and stockholders' equity            $76,053   $63,425


WISDOMTREE INVESTMENTS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                               
                                                               
                                                    Three Months Ended
                                                    March 31, March 31,
                                                    2013        2012
                                                    (Unaudited) 
Cash flows from operating activities                            
Net income                                           $7,854    $1,115
Non-cash items included in net income:                          
Depreciation and amortization                       82         71
Stock-based compensation                             1,714      2,115
Deferred rent                                        (34)       (37)
Accretion to interest income and other               39         20
Changes in operating assets and liabilities:                    
Accounts receivable                                  (1,750)    (1,504)
Other assets                                         (256)      198
Fund management and administration payable           2,589      1,913
Compensation and benefits payable                    457        (2,931)
Accounts payable and other liabilities               (451)      1,720
                                                               
Net cash provided by operating activities            10,244     2,680
                                                               
Cash flows from investing activities                            
Purchase of fixed assets                             (10)       (56)
Purchase of investments                              (1,314)    (3,549)
Proceeds from the redemption ofinvestments         1,633      2,486
                                                               
Net cash provided by/( used in) investing activities 309        (1,119)
                                                               
Cash flows from financing activities                            
Net proceeds from sale of common stock               --        4,329
Shares repurchased                                   (249)      (995)
Proceeds from exercise of stock options              747        1,613
                                                               
Net cash provided by financing activities            498        4,947
                                                               
Net increase in cash and cash equivalents            11,051     6,508
                                                               
Cash and cash equivalents - beginning of period     41,246     25,630
                                                               
Cash and cash equivalents - end of period            $52,297   $32,138
                                                               
Supplemental disclosure of cash flow information                
                                                               
Cash paid for income taxes                           $34       $3


WisdomTree Investments, Inc.
Key Operating Statistics (Unaudited)
                                                                  
                                             Three Months Ended
                                             March 31, December 31, March 31,
                                             2013      2012         2012
Total ETFs (in millions)                                           
Beginning of period assets                    18,286   16,783      12,182
Inflows/(outflows)                            5,893    1,059       2,299
Market appreciation/(depreciation)            924      444         1,210
End of period assets                          25,103   18,286      15,691
                                                                  
Average assets during the period              21,934   17,068      14,265
                                                                  
ETF Industry and Market Share (in billions)                        
ETF industry net inflows                      54.4     55.4        53.2
WisdomTree market share of industry inflows   10.8%     1.9%         4.3%
                                                                  
International Developed Equity ETFs (in                            
millions)
Beginning of period assets                    3,732    2,896       2,407
Inflows/(outflows)                            4,210    620         302
Market appreciation/(depreciation)            583      216         255
End of period assets                          8,525    3,732       2,964
                                                                  
Average assets during the period              6,072    3,022       2,680
                                                                  
Emerging Markets Equity ETFs (in millions)                         
Beginning of period assets                    7,332    6,542       3,613
Inflows/(outflows)                            876      515         1,398
Market appreciation/(depreciation)            (137)    275         583
End of period assets                          8,071    7,332       5,594
                                                                  
Average assets during the period              7,905    6,767       4,780
                                                                  
US Equity ETFs (in millions)                                       
Beginning of period assets                    4,371    4,640       3,429
Inflows/(outflows)                            291      (205)       565
Market appreciation/(depreciation)            499      (64)        281
End of period assets                          5,161    4,371       4,275
                                                                  
Average assets during the period              4,749    4,522       3,990
                                                                  
International Fixed Income ETFs (in millions)                      
Beginning of period assets                    2,118    1,904       1,506
Inflows/(outflows)                            508      190         161
Market appreciation/(depreciation)            (26)     24          68
End of period assets                          2,600    2,118       1,735
                                                                  
Average assets during the period              2,453    1,990       1,627
                                                                  
Currency ETFs (in millions)                                        
Beginning of period assets                    611      654         950
Inflows/(outflows)                            12       (37)        (104)
Market appreciation/(depreciation)            3        (6)         35
End of period assets                          626      611         881
                                                                  
Average assets during the period              637      632         935
                                                                  
Alternative Strategy ETFs (in millions)                            
Beginning of period assets                    122      147         277
Inflows/(outflows)                            (4)      (24)        (23)
Market appreciation/(depreciation)            2        (1)         (12)
End of period assets                          120      122         242
                                                                  
Average assets during the period              118      135         253
                                                                  
Average ETF assets during the period                               
Emerging markets equity ETFs                  36%       39%          33%
International developed equity ETFs           27%       18%          19%
US equity ETFs                                22%       26%          28%
International fixed income ETFs               11%       12%          12%
Currency ETFs                                3%        4%           7%
Alternative strategy ETFs                     1%        1%           1%
Total                                         100%      100%         100%
                                                                  
Average ETF advisory fee during the period                         
Alternative strategy ETFs                     0.94%     0.94%        0.95%
Emerging markets equity ETFs                  0.67%     0.67%        0.67%
International fixed income ETFs               0.55%     0.55%        0.55%
International developed equity ETFs           0.52%     0.54%        0.55%
Currency ETFs                                0.51%     0.50%        0.49%
US equity ETFs                                0.35%     0.35%        0.35%
Blended total                                 0.54%     0.54%        0.54%
                                                                  
Number of ETFs - end of the period                                 
International developed equity ETFs           18       18          18
US equity ETFs                                11       11          12
International fixed income ETFs               6        5           5
Currency ETFs                                5        5           7
Emerging markets equity ETFs                  5        5           4
Alternative strategy ETFs                     2        2           2
Total                                         47       46          48
                                                                  
Headcount                                     72        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 including (1) our patent litigation with Research
Affiliates LLC; (2) expenses for the WisdomTree ETF shareholder proxy
solicitation; and (3) advisory and other related fees associated with the
secondary offering of our common stock in November 2012.Management excludes
these items 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
                                 Mar.31,  Dec. 31,  Mar.31,
                                 2013      2012      2012
GAAP total expenses               $21,487 $18,321 $18,055
                                                   
ETF shareholder proxy             --      --      (66)
Patent litigation, net            --      524      (672)
Offering costs                    --      (353)    --
                                                   
Proforma operating expenses       $21,487 $18,492 $17,317
                                                   
                                                   
GAAP net income                   $7,854  $5,253  $1,115
                                                   
ETF shareholder proxy             --      --      66
Patent litigation, net           --      (524)    672
Offering costs                    --      353      --
                                                   
Proforma operating income        $7,854  $5,082  $1,853
                                                   
                                                   
GAAP net income                   $7,854  $5,253  $1,115
Divide GAAP total revenue         29,341   23,574   19,170
                                                   
GAAP pre-tax margin               26.8%     22.3%     5.8%
                                                   
                                                   
Proforma pre-tax net income       $7,854  $5,082  $1,853
Divide GAAP total revenue         29,341   23,574   19,170
                                                   
Proforma pre-tax operating margin 26.8%     21.6%     9.7%

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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