United States Commodity Funds LLC Launches the United States Commodity Index Fund (USCI)

News provided by

Aug 10, 2010, 07:00 ET

ALAMEDA, Calif., Aug. 10 /PRNewswire/ -- United States Commodity Funds LLC, a sponsor of exchange traded commodity funds, listed for trading on the New York Stock Exchange Arca a new exchange traded commodity index fund, United States Commodity Index Fund, under the ticker "USCI".

The United States Commodity Index Fund (USCI) is an exchange traded product ("ETP") that seeks to reflect the performance of a diverse group of commodities. USCI issued units may be purchased and sold on the NYSE Arca. The investment objective of USCI is for the daily changes in percentage terms of its units' net asset value ("NAV") to reflect the daily changes in percentage terms of the SummerHaven Dynamic Commodity Index, less USCI's expenses.

United States Commodity Index Fund's target is a diversified basket of the most important physical commodities in the global economy. These commodity holdings are among the most actively traded futures contracts and represent the primary U.S. and non-U.S. benchmarks for each commodity. The portfolio consists of positions in listed commodity futures contracts and other commodity-related futures, forwards and swap contracts. These investments will be collateralized by cash, cash equivalents and U.S. government obligations with remaining maturities of two years or less.

About the SummerHaven Dynamic Commodity Index

The SummerHaven Dynamic Commodity Index ("SDCI") is an innovative approach to commodity investing that uses fundamental signals about underlying physical markets to create an active benchmark for commodity futures investors. The SDCI tracks the performance of a fully collateralized portfolio of 14 commodity futures, selected each month from a universe of 27 eligible commodities based on observable price signals, subject to a diversification requirement across major commodity sectors. The commodity sectors for the Index include Precious Metals, Industrial Metals, Energy and agricultural products such as Livestock, Softs, and Grains. The SummerHaven Dynamic Commodity Index ("SDCI") is an innovative approach to commodity investing that uses fundamental signals about underlying physical markets to create an active benchmark for commodity futures investors. The SDCI tracks the performance of a fully collateralized portfolio of 14 commodity futures, selected each month from a universe of 27 eligible commodities based on observable price signals, subject to a diversification requirement across major commodity sectors. The commodity sectors for the Index include Precious Metals, Industrial Metals, Energy and agricultural products such as Livestock, Softs, and Grains.

About SummerHaven Index Management, LLC

SummerHaven Index Management, LLC creates innovative commodities indices focused on providing investors with better risk-adjusted returns than traditional commodity index benchmarks. The firm is the owner, creator and licensor of commodity indices including the SummerHaven Dynamic Commodity Index ("SDCI"). SummerHaven Index Management's principals include an academic who is one of the authors of widely cited research on commodities futures investing including "Facts and Fantasies about Commodity Futures" and "Fundamentals of Commodities Futures Returns". The firm is led by a seasoned management team with over 50 years of collective Wall Street experience in commodity futures, capital markets, investment management, and exchange traded products.

For additional information please read attached Prospectus, call 800-920-0259, or visit http://www.unitedstatescommodityindexfund.com.

This material must be preceded or accompanied by a prospectus. Please read it carefully before investing or sending money.

Commodities and futures generally are volatile and are not suitable for all investors. The Fund is speculative and involves a high degree of risk. An investor may lose all or substantially all of an investment in the Fund. Funds that focus on a single sector generally experience greater volatility.

USCI is not a registered investment company so you do not have the protections of the Investment Company Act of 1940. Accordingly, you do not have the protections afforded by that statute which, for example, include: (1) controls over activities of an investment company's investment adviser; (2) an express private right of action for shareholders; (3) restrictions on transactions between the fund and the adviser; (4) restrictions on investments; (5) regulation of adviser services and fees; and (6) capital structure requirements, including restrictions on debt.

Investing in commodity futures interests subjects USCI to the risks of the commodities industry and this could result in large fluctuations in the price of USCI's units.

The price of USCI's units may be influenced by factors such as the short-term supply and demand for commodity futures and the short-term supply and demand for USCI's units. This may cause the units to trade at a price that is above or below USCI's NAV per unit. Accordingly, changes in the price of units may substantially vary from the changes in the value of the SummerHaven Dynamic Commodity Index (SDCI). If this variation occurs, then you may not be able to effectively use USCI as a way to indirectly invest in the SummerHaven Dynamic Commodity Index.

For further discussion of these and additional risks associated with an investment in USCI units, see the prospectus that has preceded or accompanied this announcement, downloaded at http://www.unitedstatescommodityindexfund.com/PDFS/USCI-Prospectus.pdf.

Not FDIC insured, may lose value, no bank guarantee.

Shares are not individually redeemable and the owners of Shares may purchase or redeem Shares from a Fund in Creation Units only.

USO000396 EXP. 11/30/2010

SOURCE United States Commodity Funds LLC