BUFFALO SMALL CAP FUND, INC.
JUNE 24, 1998 SUPPLEMENT TO
PART B OF THE
PROSPECTUS
DATED APRIL 14, 1998
REDEMPTION OF SHARES
Page 5
The second paragraph in the first column on page 5 of the
Statement of Additional Information under the caption
"REDEMPTION OF SHARES" should read as follows:
The Fund has elected to be governed by
Rule 18f-1 under the Investment Company Act
of 1940 pursuant to which the Fund is
obligated to redeem shares solely in cash up to
the lesser of $250,000 or 1% of the Fund's net
asset value during any 90-day period for any one
shareholder. Should redemptions by any
shareholder exceed such limitation, the Fund may
redeem the excess in kind. If shares are
redeemed in kind, the redeeming shareholder
may incur brokerage costs in converting the
assets to cash. The method of valuing securities
used to make redemptions in kind will be the
same as the method of valuing portfolio
securities described under "How Share Price is
Determined" in the Prospectus, and such
valuation will be made as of the same time the
redemption price is determined.
