SUPPLEMENT TO THE PROSPECTUS May 1, 2000
United Government Securities Fund, Inc.
United Municipal Bond Fund, Inc.
United Municipal High Income Fund, Inc.
The following supplements the information regarding Class A shares in the
sections entitled "Choosing A Share Class":
The expanded table below replaces the table regarding the initial sales charge
applicable to purchases of Class A shares:
Sales Charge Sales Charge as Approx.Dealer Reallowance
as Percent of Percent of Amount as Percent of
Size of Purchase Offering Price Invested Offering Price
- ---------------- -------------- -------------------- ------------------
Under $100,000 4.25% 4.44% 3.60%
$100,000 to less
than $300,000 3.25% 3.36% 2.75%
$300,000 to less
than $500,000 2.50% 2.56% 2.00%
$500,000 to less
than $1,000,000 1.50% 1.52% 1.20%
$1,000,000 to less
than $2,000,000 1.00% 1.01% 0.75%
$2,000,000 and over 0.00% 0.00% 0.50%*
*Waddell & Reed, Inc. may pay additional compensation from its own resources
to securities dealers based upon the value of shares of the Fund owned by
the dealer for its own account or for its customers. Waddell & Reed, Inc.
may also provide compensation from its own resources to securities dealers
with respect to other shares of the Fund purchased by customers of such
dealers without payment of a sales charge.
Until March 31, 2001, Class A shares may also be purchased at net asset value by
persons who are clients of Legend Equities Corporation if the purchase of Class
A shares is made with the proceeds of the redemption of shares of a mutual fund
which is not within the United Group of Mutual Funds and the purchase is made
within 60 days of such redemption.
To be attached to the cover page of the Prospectus of:
United Government Securities Fund, Inc. - dated September 20, 1999
United Municipal Bond Fund, Inc. - dated December 31, 1999
United Municipal High Income Fund, Inc. - dated December 31, 1999
This Supplement is dated May 1, 2000.
NUS2100L
