<PAGE>
COHEN & STEERS EQUITY INCOME FUND, INC.
CLASS A, CLASS B AND CLASS C SHARES
SUPPLEMENT DATED FEBRUARY 16, 2000 TO THE PROSPECTUS DATED MAY 1, 1999
The information below replaces the information on pages 3-4 of the Fund's
Prospectus in the section "FEES AND EXPENSES OF THE FUND":
- -------------------------------------------------------------------------------
FEES AND EXPENSES OF THE FUND
- -------------------------------------------------------------------------------
This table describes the fees and expenses that you could pay if you buy and
hold shares of the Fund.
<TABLE>
<CAPTION>
Class A Class B Class C
------- ------- -------
<S> <C> <C> <C>
Shareholder Fees (fees paid directly
from your investment):
Maximum sales charge (load) (as a
percentage of offering price).......... 4.50%(1) 0% 0%
Maximum sales charge (load) imposed
on reinvested dividends (and other
distributions)......................... 0% 0% 0%
</TABLE>
(1) Sales charges are reduced for large purchases.
<PAGE>
<TABLE>
<CAPTION>
Class A Class B Class C
------- ------- -------
<S> <C> <C> <C>
Maximum deferred sales charge (load) (as
a percentage of original purchase price or
redemption proceeds, whichever is lower)..... 0%(2) 5% in 1st year 1% in 1st
4% in 2nd year year
3% in 3rd and 4th years
2% in 5th year
1% in 6th year
None thereafter(3)
</TABLE>
<TABLE>
<S> <C> <C> <C>
Annual Fund Operating Expenses
(expenses that are deducted from fund
assets):
Management Fee........................ 0.75% 0.75% 0.75%
Distribution (12b-1) Fees............. 0.25% 0.75%* 0.75%
Service Fee........................... 0.10% 0.25% 0.25%
Other Expenses**...................... 0.50% 0.51% 0.50%
----- ----- -----
Total Other Expenses.............. 0.85% 1.51% 1.50%
----- ----- -----
Total Annual Fund Operating Expenses** 1.60% 2.26% 2.25%
----- ----- -----
----- ----- -----
</TABLE>
- --------------------------
* Until conversion which occurs automatically at the end of the month which
precedes the 8th anniversary of the purchase date.
** This table has been restated using actual 1999 expense amounts.
These amounts do not reflect any waiver of the investment advisory fee
or reimbursement of Fund expenses, which were in effect through
December 31, 1998.
- --------------------------
(2) A contingent deferred sales charge of 1% applies on certain redemptions
made within 12 months following a purchase without a sales charge.
(3) Class B shares of the Fund automatically convert to Class A shares at the
end of the month which precedes the 8th anniversary of the purchase date.
<PAGE>
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
<TABLE>
<CAPTION>
1 3 5 10
year years years years
---- ----- ----- -----
<S> <C> <C> <C> <C>
Class A shares $615 $ 962 $1,331 $2,368
Class B shares
Assuming redemption at the end of
the period............................ 743 1,047 1,444 2,482
Assuming no redemption at the end
of the period......................... 243 748 1,280 2,482
Class C shares
Assuming redemption at the end of
the period............................ 342 745 1,275 2,726
Assuming no redemption at the end
of the period......................... 242 745 1,275 2,726
</TABLE>
<PAGE>
COHEN & STEERS EQUITY INCOME FUND, INC.
CLASS I SHARES
SUPPLEMENT DATED FEBRUARY 16, 2000 TO THE PROSPECTUS DATED MAY 1, 1999
The information below replaces the information on page 3 of the Fund's
Prospectus in the section "FEES AND EXPENSES OF THE FUND":
- -------------------------------------------------------------------------------
FEES AND EXPENSES OF THE FUND
- -------------------------------------------------------------------------------
This table describes the fees and expenses that you could pay if you buy and
hold shares of the Fund.
<TABLE>
<CAPTION>
Class A
-------
<S> <C>
Shareholder Fees (fees paid directly from None
your investment):
Annual Fund Operating Expenses (expenses
that are deducted from fund assets):
Management Fee................................. 0.75%
Other Expenses*................................ 0.51%
----
Total Annual Fund Operating Expenses*.......... 1.26%
====
</TABLE>
- --------------------------------
* This table has been restated using actual 1999 expense amounts. These amounts
do not reflect any waiver of the investment advisory fee or reimbursement of
Fund expenses, which were in effect through December 31, 1998.
<PAGE>
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund's operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
<TABLE>
<CAPTION>
1 3 5 10
year years years years
---- ---- ----- -----
<S> <C> <C> <C>
$136 $425 $734 $1,613
</TABLE>