Rule 497(e)
811-9114
THE NEEDHAM FUNDS, INC.
445 PARK AVENUE
NEW YORK, NEW YORK 10022
PROSPECTUS SUPPLEMENT DATED JANUARY 15, 1998
Effective as of January 1, 1998, Peter J.R. Trapp, an
Executive Vice President of Needham Investment Management L.L.C.,
the Fund's Adviser, has assumed primary responsibility for
management of the Fund's portfolio.
Mr. Trapp is a graduate of Columbia Business School and has 24
years of experience in the investment business. Prior to joining
Needham & Company in 1994, he was a senior vice president of equity
sales at Gerard Klauer Mattison & Co., Inc. He started his
investment banking career at the First Boston Corporation in 1973
and moved to Goldman Sachs & Co. in 1978.
