<PAGE> 1
SUPPLEMENT ISSUED DECEMBER 22, 1998
TO
PROSPECTUS OF
AMERICAN GENERAL SERIES PORTFOLIO COMPANY 2
CLASS A SHARES AND CLASS B SHARES
The Example to the Fee Table in the Prospectus is replaced in its entirety by
the enclosed Example.
- --------------------------------------------------------------------------------
EXAMPLE
- --------------------------------------------------------------------------------
Your investment of $1,000 would incur the following expenses, assuming 5% annual
return and, except as indicated, redemption at the end of each period:
<TABLE>
<CAPTION>
MID SMALL LARGE SMALL LARGE MID SMALL
STOCK CAP CAP CAP MID CAP CAP CAP CAP CAP
INDEX INDEX INDEX INTERNATIONAL GROWTH GROWTH GROWTH INTERNATIONAL VALUE VALUE VALUE
FUND FUND FUND GROWTH FUND FUND FUND FUND VALUE FUND FUND FUND FUND
----- ----- ----- ------------- ------ ------- ------ ------------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A shares
1 Year $66 $66 $66 $ 72 $69 $68 $ 72 $71 $68 $71 $70
3 Years $83 $83 $83 $100 $91 $89 $100 $97 $90 $97 $95
Class B shares
1 Year $68 $68 $68 $ 73 $70 $70 $ 73 $72 $70 $72 $72
3 Years $83 $83 $83 $100 $91 $89 $100 $97 $90 $97 $95
Class B Shares
(no redemption)
1 Year $16 $16 $16 $ 22 $19 $18 $ 22 $21 $18 $21 $20
3 Years $50 $50 $50 $ 67 $58 $56 $ 67 $64 $57 $64 $62
<CAPTION>
SOCIALLY
RESPONSIBLE BALANCED
FUND FUND
----------- --------
<S> <C> <C>
Class A shares
1 Year $66 $68
3 Years $82 $90
Class B shares
1 Year $67 $70
3 Years $82 $90
Class B Shares
(no redemption
1 Year $16 $18
3 Years $49 $57
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HIGH MUNICIPAL MODERATE CONSERVATIVE
YIELD STRATEGIC DOMESTIC CORE MUNICIPAL MONEY MONEY GROWTH GROWTH GROWTH
BOND BOND BOND BOND BOND MARKET MARKET LIFESTYLE LIFESTYLE LIFESTYLE
FUND FUND FUND FUND FUND FUND FUND FUND FUND FUND
----- --------- -------- ---- --------- ------ --------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Class A shares
1 Year $60 $59 $58 $ 58 $58 $ 8 $11 $59 $59 $59
3 Years $86 $83 $79 $ 80 $80 $26 $33 $61 $61 $61
Class B shares
1 Year $72 $71 $70 $ 70 $70 $67 $70 $53 $53 $53
3 Years $96 $93 $89 $ 90 $90 $82 $90 $38 $38 $38
Class B shares
(no redemption)
1 Year $20 $19 $18 $ 18 $18 $16 $18 $ 1 $ 1 $ 1
3 Years $63 $60 $56 $ 57 $57 $49 $57 $ 3 $ 3 $ 3
</TABLE>
THE INFORMATION CONTAINED IN THE ABOVE TABLE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR
LESS THAN THOSE SHOWN.
VA 10856-A Ver. 12/98
