The Daruma Funds, Inc.
60 East 42nd Street
Suite 1112
New York, NY 10165
Tele.: 212-687-1233
Fax: 212-687-1544
July 23, 1998
Document Control Filing Desk
U.S. Securities and Exchange Commission
450 Fifth Street, NW
Washington DC 20549
VIA EDGAR SUBMISSION
Re: The Daruma Funds, Inc.
Daruma Mid-Cap Value Fund (the "Fund")
Registration No.: 333-03709
File No.: 811-07621
CIK No.: 0001014356
Dear Sir/Madam:
Pursuant to Rule 497(e), we enclosed herewith for filing via electronic
submission a supplement to the Fund's prospectus dated December 22, 1997.
The supplement provides disclosure about approval of an increase in
investment advisory fee rates by the Fund's shareholders.
Thank you for your attention to this matter.
Very truly yours,
/s/Mary B. O'Byrne
Secretary
Enclosure
cc: Bruce R. MacNeil, Attorney Advisor, SEC
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 22, 1997
Effective 5/28/98, the Fund will pay a monthly advisory fee of 1% of the
Fund's average daily net assets.
