<PAGE>
SUPPLEMENT TO THE PROSPECTUS
Effective August 29, 1995, existing shares of United Continental Income Fund,
Inc. will be reclassified as Class A shares and the Fund will begin to offer
Class Y shares. Class Y shares will be offered through a Prospectus separate
from the Class A Prospectus to certain institutional investors and will not be
subject to a sales charge, redemption fee or Rule 12b-1 fee. Additional
information about Class Y shares may be obtained by calling 913-236-2000 or by
writing to Waddell & Reed, Inc. at the address on the inside back cover of the
Prospectus to which this Supplement is attached.
This Supplement is to be attached to the cover page of the Prospectus of United
Continental Income Fund, Inc. dated December 1, 1994.
This Supplement is dated July 14, 1995.
NUS1004
<PAGE>
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
Effective August 29, 1995, existing shares of United Continental Income Fund,
Inc. will be reclassified as Class A shares and the Fund will begin to offer
Class Y shares. Class Y shares will be offered through a Prospectus separate
from the Class A Prospectus to certain institutional investors and will not be
subject to a sales charge, redemption fee or Rule 12b-1 fee. Class Y shares
will have a different Shareholder Servicing fee. Additional information about
Class Y shares may be obtained by calling 913-236-2000 or by writing to Waddell
& Reed, Inc. at the address on the cover of the Statement of Additional
Information to which this Supplement is attached.
This Supplement is to be attached to the cover page of the Statement of
Additional Information of United Continental Income Fund, Inc. dated December 1,
1994.
This Supplement is dated July 14, 1995.
