DEM, INC.
October 7, 1997
Dear Shareholder,
I would like to take this opportunity to discuss the results
of the annual shareholders meeting of DEM, Inc. held on June
6, 1997. At that meeting the following directors were
nominated and elected to serve on the board until their
respective terms expire. Each director received 736,306
votes for, 0 votes against, 75,469 votes withheld, 0 votes
abstained and broker non-votes.
Nathan A. Chapman,
Jr.
2000
Lottie L. Shackelford
1999
James B. Lewis
1998
Robert L. Wallace
1999
Ronald A. White
2000
The list above constitutes the entire board of directors for
the Fund.
Arthur Andersen LLP shall serve as independent auditors for
the Company with 736,306 votes for, 0 votes against, 75,469
votes withheld, 0 votes abstained, and 0 broker non-votes.
The Company's semi-annual report to shareholders was mailed
on August 29, 1997 and filed with the SEC on September 2,
1997 and is incorporated herein in its entirety. A copy of
the semi-annual report to shareholders may be obtained at no
charge by contacting The Chapman Co. at (800) 752-1013.
Sincerely,
/s/ NATHAN A. CHAPMAN, JR.
Nathan A. Chapman, Jr.
President
WORLD TRADE CENTER BALTIMORE
401 E. PRATT STREET SUITE 2800 BALTIMORE, MARYLAND 21202 (800) 752-1013
