COHEN & STEERS SPECIAL EQUITY FUND
497, 1998-09-11
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September 10, 1998

COHEN & STEERS SPECIAL EQUITY FUND, INC.

Supplement to Prospectus dated May 1, 1998


Since March 1998,  shares of the Fund have been  available  for purchase only by
existing  shareholders of record.  Effective  today, the Fund will reopen to new
investors for an indefinite  period of time. In the future,  the Fund's Board of
Directors will periodically  consider whether, in light of then-existing  market
conditions, the Fund should impose limitations on the sale of its shares.




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