ALLIANCE CAPITAL RESERVES
SEMI-ANNUAL REPORT
DECEMBER 31, 1996
(UNAUDITED)
STATEMENT OF NET ASSETS
DECEMBER 31, 1996 (UNAUDITED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
COMMERCIAL PAPER-48.8%
ABBEY NATIONAL
$ 50,000 3/03/97 5.31% $49,550,125
ABN AMRO N. AMERICAN FINANCE
50,000 2/14/97 5.38 49,671,222
65,000 3/06/97 5.58 64,355,200
AKZO NOBEL, INC.
15,000 3/20/97 5.30 14,827,750
ALLIANZ OF AMERICA FINANCE CORP.
15,000 3/17/97 * 5.32 14,833,750
10,000 3/20/97 * 5.45 9,881,917
ASSOCIATES CORP. OF NORTH AMERICA
65,000 1/29/97 5.30 64,732,055
25,000 3/12/97 5.33 24,740,903
BAYER, INC.
1,000 3/19/97 5.40 988,450
BIL NORTH AMERICA, INC.
17,000 2/18/97 5.30 16,879,867
BT SECURITIES INC.
50,000 2/20/97 5.32 49,630,556
35,000 2/27/97 5.32 34,705,183
CAISSE D'AMORTISSEMENT
85,000 2/06/97 5.33 84,546,950
30,000 3/10/97 5.64 29,680,683
CAISSE DES DEPOTS ET CONSIGNATIONS
45,000 1/24/97 5.36 44,845,900
CARIPLO FINANCE, INC.
40,000 3/20/97 5.44 39,528,533
CHIAO TUNG BANK CO., LTD.
20,000 2/24/97 5.42 19,837,400
15,000 1/08/97 5.47 14,984,046
COMMONWEALTH BANK OF AUSTRALIA
45,000 3/20/97 5.40 44,473,500
COPLEY FINANCING CORP.
25,000 1/21/97 * 5.44 24,924,445
4,000 1/24/97 * 5.50 3,985,944
CREGEM NORTH AMERICA, INC.
45,000 2/21/97 5.30 44,662,125
25,000 2/12/97 5.31 24,845,125
CS FIRST BOSTON
37,000 2/07/97 5.32 36,797,692
27,500 1/31/97 5.33 27,377,854
26,000 2/10/97 5.33 25,846,022
44,000 2/11/97 5.33 43,732,908
EKSPORTFINANS
45,000 3/19/97 5.37 44,496,563
ELECTRICITE DE FRANCE
18,000 1/27/97 5.31 17,930,970
ELECTRICITY CORP. OF
NEW ZEALAND, LTD.
20,000 1/31/97 5.40 19,910,000
EMBARCADERO CENTER IIB
13,250 1/16/97 5.60 13,219,083
EMBARCADERO CENTER IV
7,000 1/22/97 5.80 6,976,317
EUREKA SECURITIZATION INC.
25,000 2/27/97 * 5.35 24,788,229
FORD MOTOR CREDIT CORP.
65,000 1/30/97 5.30 64,722,486
65,000 1/31/97 5.30 64,712,917
100,000 1/27/97 5.31 99,616,500
GENERAL ELECTRIC CAPITAL CORP.
42,000 3/03/97 5.59 41,602,178
50,000 3/05/97 5.64 49,506,500
51,000 6/09/97 5.69 49,718,328
GENERALE BANK
20,000 3/10/97 5.35 19,797,889
IMI FUNDING CORP.
5,000 2/05/97 5.32 4,974,139
10,200 3/11/97 5.35 10,095,407
INDUSTRIAL BANK KOREA
7,500 3/11/97 5.40 7,422,375
17,000 3/18/97 5.45 16,804,405
8,000 3/20/97 5.50 7,904,667
KINGDOM OF SWEDEN
37,500 1/17/97 5.30 37,411,667
70,000 3/05/97 5.30 69,350,750
50,000 1/10/97 5.38 49,932,750
20,000 2/10/97 5.38 19,880,444
KOREAN DEVELOPMENT BANK
49,000 2/25/97 5.31 48,602,487
14,680 1/27/97 5.32 14,623,596
20,000 2/10/97 5.33 19,881,556
40,300 2/27/97 5.34 39,959,264
2,500 2/13/97 5.35 2,484,024
1
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
KREDIETBANK N.A. FINANCE CORP.
$ 5,500 2/28/97 5.60% $ 5,450,378
MERRILL LYNCH & CO., INC.
60,000 3/20/97 5.30 59,311,000
44,000 2/06/97 5.31 43,766,360
25,000 2/12/97 5.32 24,844,833
44,000 1/24/97 5.33 43,850,168
50,000 2/13/97 5.33 49,681,681
MORGAN STANLEY GROUP, INC.
65,950 2/11/97 5.32 65,550,416
107,500 2/12/97 5.32 106,832,784
NATIONAL AUSTRALIA FUNDING
7,000 6/16/97 5.37 6,826,668
PHH CORP.
20,000 1/15/97 5.47 19,957,455
36,500 1/28/97 5.47 36,350,259
54,000 1/31/97 5.55 53,750,250
ROSE FUNDING
45,000 3/26/97 * 5.40 44,433,000
25,000 3/26/97 * 5.45 24,682,083
50,000 2/28/97 * 5.62 49,547,278
SIGMA FINANCE, INC.
13,869 2/03/97 * 5.35 13,800,984
45,500 3/03/97 * 5.37 45,085,988
SVENSKA HANDELSBANKEN
30,000 2/21/97 5.30 29,774,750
TASMANIAN PUBLIC FINANCE CORP.
35,000 4/14/97 5.35 34,464,257
THAMES ASSET GLOBAL SECURITIZATION
32,779 1/29/97 * 5.35 32,642,603
UNI FUNDING, INC.
43,000 2/11/97 5.30 42,740,447
35,000 3/10/97 5.35 34,646,306
18,000 1/27/97 5.38 17,930,060
50,000 2/24/97 5.38 49,596,500
WMC FINANCE, LTD.
35,000 1/22/97 5.44 34,888,933
Total Commercial Paper
(amortized cost $2,741,597,037) 2,741,597,037
CERTIFICATES OF DEPOSIT-34.7%
ABN AMRO
80,000 5.40%, 4/07/97 5.39 80,002,095
25,000 5.50%, 4/15/97 5.47 24,998,274
AMERICAN EXPRESS CENTURION BANK
35,000 5.45%, 1/30/97 5.45 35,000,000
BANK OF TOKYO
60,000 5.45%, 2/24/97 5.45 60,000,000
43,000 5.50%, 3/04/97 5.50 43,000,000
40,000 5.51%, 4/08/97 5.51 40,000,000
105,000 5.65%, 4/30/97 5.65 105,000,000
BARCLAYS BANK
50,000 5.38%, 2/05/97 5.37 50,000,844
BAYERISCHE HYPOBANK
85,000 5.39%, 3/05/97 5.38 85,001,468
25,000 5.65%, 3/14/97 5.43 25,007,152
BAYERISCHE VEREINSBANK
75,000 5.41%, 2/21/97 5.40 74,997,642
CANADIAN IMPERIAL BANK OF COMMERCE
90,000 5.37%, 2/28/97 5.37 90,000,000
COMMERZBANK
45,000 5.36%, 1/15/97 5.36 45,000,032
DAI ICHI KANGYO BANK
15,000 5.89%, 1/21/97 5.88 15,000,083
DEUTSCHE BANK
50,000 5.39%, 4/09/97 5.39 50,000,000
44,000 5.41%, 4/08/97 5.41 44,000,000
20,000 5.48%, 1/03/97 5.65 19,999,723
24,000 5.53%, 4/02/97 5.80 23,983,995
DRESDNER BANK
40,000 5.90%, 6/03/97 5.90 40,000,000
HESSISCHE LANDESBANK
25,000 5.70%, 4/29/97 5.80 24,992,044
INDUSTRIAL BANK OF JAPAN
45,000 5.61%, 1/03/97 5.61 45,000,000
35,000 5.93%, 1/21/97 5.93 35,000,000
NORINCHUKIN BANK
35,000 5.46%, 2/07/97 5.45 35,000,355
25,000 5.46%, 2/18/97 5.45 25,000,329
45,000 5.53%, 4/07/97 5.52 45,001,177
25,000 5.55%, 1/15/97 5.54 25,000,278
46,000 5.57%, 4/11/97 5.56 46,001,254
50,000 5.63%, 4/23/97 5.62 50,001,527
50,000 5.64%, 4/18/97 5.63 50,001,459
2
ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
SANWA BANK
$ 30,000 5.49%, 1/22/97 5.48% $ 30,000,173
12,000 5.52%, 1/29/97 5.52 12,000,000
80,000 5.55%, 2/06/97 5.54 80,000,686
SOCIETE GENERALE N.A., INC.
45,000 5.39%, 2/13/97 5.37 45,000,891
44,000 5.62%, 4/01/97 5.41 44,001,516
70,000 5.45%, 2/07/97 5.44 70,000,833
43,000 5.45%, 2/10/97 5.46 42,999,884
42,000 5.66%, 4/16/97 5.50 41,993,657
30,000 5.77%, 5/15/97 5.52 30,005,856
SUMITOMO BANK
25,000 5.49%, 1/27/97 5.49 25,000,000
35,000 5.59%, 1/31/97 5.59 35,000,000
60,000 5.92%, 1/27/97 5.92 60,000,000
SVENSKA HANDELSBANKEN
25,000 5.38%, 2/28/97 5.50 24,994,466
WESTPAC BANKING CORP.
80,000 5.47%, 3/19/97 5.46 80,001,688
Total Certificates of Deposit
(amortized cost $1,952,989,381) 1,952,989,381
BANK OBLIGATIONS-4.7%
BANK OF NEW YORK
10,000 5.60%, 3/24/97 5.79 9,992,488
BANKERS TRUST
47,000 5.63%, 2/05/97 FRN 5.63 47,000,000
FCC NATIONAL BANK OF WILMINGTON
35,000 5.08%, 2/24/97 5.38 34,964,273
INTERAMERICAN DEVELOPMENT BANK
12,746 6.75%, 2/14/97 5.10 12,768,561
MORGAN GUARANTY TRUST CO.
60,000 5.38%, 11/14/97 FRN 5.46 59,951,155
55,000 5.50%, 1/08/97 5.50 55,000,000
WACHOVIA BANK
45,000 5.44%, 1/03/97 FRN 5.55 44,999,772
Total Bank Obligations
(amortized cost $264,676,249) 264,676,249
U.S. GOVERNMENT AND AGENCY OBLIGATIONS-4.6%
AID HOUSING GUARANTY PROJECT PORTUGAL
12,500 5.92%, 12/01/16 FRN 5.92 12,500,000
FEDERAL FARM CREDIT BANK
50,000 5.21%, 1/22/97 FRN 5.25 49,998,891
66,000 5.41%, 8/03/98 FRN 5.46 65,950,865
FEDERAL HOME LOAN BANK
42,500 5.83%, 1/31/97 FRN 5.27 42,519,142
FEDERAL NATIONAL MORTGAGE ASSN.
88,000 5.38%, 8/25/97 FRN 5.42 87,978,021
OVERSEAS PRIVATE INVESTMENT CORP.
625 5.92%, 6/10/97 FRN 5.92 625,000
Total U.S. Government and
Agency Obligations
(amortized cost $259,571,919) 259,571,919
CORPORATE OBLIGATIONS-4.4%
GOLDMAN SACHS GROUP L.P.
20,000 5.54%, 1/15/97 FRN 5.54 20,000,000
J.P. MORGAN & CO., INC.
88,000 5.39%, 8/15/97 FRN 5.44 87,973,807
MERRILL LYNCH & CO., INC.
50,000 5.52%, 12/24/97 FRN 5.54 49,990,513
SALTS III CAYMAN ISLANDS CORP.
40,000 5.68%, 1/23/97 * 5.68 40,000,000
TOYOTA MOTOR CREDIT CORP.
35,000 5.00%, 2/26/97 5.10 34,993,842
16,000 5.55%, 3/20/97 5.40 16,002,971
Total Corporate Obligations
(amortized cost $248,961,133) 248,961,133
3
STATEMENT OF NET ASSETS (CONTINUED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
PRINCIPAL
AMOUNT
(000) SECURITY# YIELD VALUE
- ------------------------------------------------------------------------
PROMISSORY NOTES-4.0%
GOLDMAN SACHS GROUP L.P.
$ 100,000 5.53%, 3/13/97 FRN 5.53% $ 100,000,000
123,000 5.63%, 2/14/97 FRN 5.63 123,000,000
Total Promissory Notes
(amortized cost $223,000,000) 223,000,000
BANKERS ACCEPTANCE-0.7%
INDUSTRIAL BANK OF JAPAN
37,400 5.73%, 1/16/97 5.73 37,310,708
TOTAL INVESTMENTS-101.9%
(amortized cost $5,728,106,427) $5,728,106,427
Other assets less liabilities-(1.9%) (104,155,174)
NET ASSETS-100%
(offering and redemption
price of $1.00 per share;
5,624,657,703 shares outstanding) $5,623,951,253
# All securities either mature or their interest rate changes in one year or
less.
* Restricted securities.
Glossary:
FRN - Floating Rate Note
See notes to financial statements.
4
STATEMENT OF OPERATIONS
SIX MONTHS ENDED DECEMBER 31, 1996 (UNAUDITED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
INVESTMENT INCOME
Interest $144,604,787
EXPENSES
Advisory fee (Note B) $12,375,949
Distribution assistance and administrative
service (Note C) 7,534,283
Transfer agency (Note B) 5,203,741
Registration fees 606,765
Custodian fees 334,434
Printing 319,104
Audit and legal fees 19,625
Trustees' fees 9,016
Miscellaneous 35,115
Total expenses 26,438,032
Net investment income 118,166,755
REALIZED GAIN ON INVESTMENTS
Net realized gain on investments 784
NET INCREASE IN NET ASSETS FROM OPERATIONS $118,167,539
See notes to financial statements.
5
STATEMENTS OF CHANGES IN NET ASSETS ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
SIX MONTHS ENDED
DEC. 31, 1996 YEAR ENDED
(UNAUDITED) JUNE 30, 1996
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS
Net investment income $ 118,166,755 $ 192,438,403
Net realized gain (loss) on investments 784 (46,151)
Net increase in net assets from operations 118,167,539 192,392,252
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income (118,166,755) (192,438,403)
TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
Net increase (Note E) 819,871,191 1,780,033,338
Total increase 819,871,975 1,779,987,187
NET ASSETS
Beginning of period 4,804,079,278 3,024,092,091
End of period $5,623,951,253 $4,804,079,278
See notes to financial statements.
6
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 (UNAUDITED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
NOTE A: SIGNIFICANT ACCOUNTING POLICIES
Alliance Capital Reserves (the "Trust") is an open-end diversified investment
company registered under the Investment Company Act of 1940. The Trust consists
of two portfolios: Alliance Capital Reserves (the "Portfolio") and Alliance
Money Reserves. Each portfolio is considered to be a separate entity for
financial reporting and tax purposes. As a matter of fundamental policy, each
Portfolio pursues its objectives by maintaining a portfolio of high-quality
money market securities all of which, at the time of investment, have remaining
maturities of 397 days or less. The following is a summary of significant
accounting policies followed by the Portfolio.
1. VALUATION OF SECURITIES
Securities in which the Portfolio invests are traded primarily in the
over-the-counter market and are valued at amortized cost, under which method a
portfolio instrument is valued at cost and any premium or discount is amortized
on a constant basis to maturity.
2. TAXES
It is the Portfolio's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its investment company taxable income and net realized gains, if applicable,
to its shareholders. Therefore, no provisions for federal income or excise
taxes are required.
3. DIVIDENDS
The Portfolio declares dividends daily and automatically reinvests such
dividends in additional shares at net asset value. Net realized capital gains
on investments, if any, are expected to be distributed near year end.
4. GENERAL
Interest income is accrued as earned. Security transactions are recorded on a
trade date basis. Realized gain (loss) from security transactions is recorded
on the identified cost basis. It is the Portfolio's policy to take possession
of securities as collateral under repurchase agreements and to determine on a
daily basis that the value of such securities are sufficient to cover the value
of the repurchase agreements.
NOTE B: ADVISORY FEE AND TRANSACTIONS WITH AN AFFILIATE OF THE ADVISER
The Portfolio pays its Adviser, Alliance Capital Management L.P., an advisory
fee at the annual rate of .50 of 1% on the first $1.25 billion of average daily
net assets; .49 of 1% on the next $.25 billion; .48 of 1% on the next $.25
billion; .47 of 1% on the next $.25 billion; .46 of 1% on the next $1 billion;
and .45 of 1% in excess of $3 billion. The Adviser has agreed to reimburse the
Portfolio to the extent that its annual aggregate expenses (excluding taxes,
brokerage, interest and, where permitted, extraordinary expenses) exceed 1% of
its average daily net assets for any fiscal year. No reimbursement was required
for the six months ended December 31, 1996. The Portfolio compensates Alliance
Fund Services, Inc. (a wholly-owned subsidiary of the Adviser) for providing
personnel and facilities to perform transfer agency services for the Portfolio.
Such compensation amounted to $3,143,139 for the six months ended December 31,
1996.
NOTE C: DISTRIBUTION ASSISTANCE AND ADMINISTRATIVE SERVICES PLAN
Under this Plan, the Portfolio pays the Adviser a distribution fee at the
annual rate of up to .25 of 1% of the average daily value of the Portfolio's
net assets. The Plan provides that the Adviser will use such payments in their
entirety for distribution assistance and promotional activities. For the six
months ended December 31, 1996, the distribution fee amounted to $6,609,469. In
addition, the Portfolio may reimburse certain broker-dealers for administrative
costs incurred in connection with providing shareholder services and may
reimburse the Adviser for accounting and bookkeeping and legal and compliance
support. For the six months ended December 31, 1996, such payments by the
Portfolio amounted to $924,814 of which $84,500 was paid to the Adviser.
7
NOTES TO FINANCIAL STATEMENTS (CONTINUED) ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
NOTE D: INVESTMENT TRANSACTIONS
At December 31, 1996, the cost of securities for federal income tax purposes
was the same as the cost for financial reporting purposes. At June 30, 1996 the
Portfolio had a capital loss carryforward of $707,234 of which $85,995 expires
in 2001, $49,939 expires in 2002, $525,149 expires in 2003 and $46,151 expires
in 2004.
NOTE E: TRANSACTIONS IN SHARES OF BENEFICIAL INTEREST
An unlimited number of shares ($.001 par value) are authorized. At December 31,
1996, capital paid-in aggregated $5,624,657,703. Transactions, all at $1.00 per
share, were as follows:
SIX MONTHS ENDED YEAR ENDED
DEC. 31, 1996 JUNE 30,
(UNAUDITED) 1996
---------------- ----------------
Shares sold 12,178,083,221 21,097,386,036
Shares issued on reinvestments of dividends 118,166,755 192,438,403
Shares redeemed (11,476,378,785) (19,509,791,101)
Net increase 819,871,191 1,780,033,338
8
ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
NOTE F: FINANCIAL HIGHLIGHTS
Selected data for a share outstanding throughout each period.
<TABLE>
<CAPTION>
SIX MONTHS
ENDED
DECEMBER 31, YEAR ENDED JUNE 30,
1996 --------------------------------------------------------------
(UNAUDITED) 1996 1995 1994 1993 1992
------------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM INVESTMENT OPERATIONS
Net investment income .0225 .0471 .0447 .0255 .0266 .0438
Net realized gain on investments -0- -0- -0- -0- .0003 .0013
Net increase in net assets from
operations .0225 .0471 .0447 .0255 .0269 .0451
LESS: DISTRIBUTIONS
Dividends from net investment income (.0225) (.0471) (.0447) (.0255) (.0266) (.0438)
Distributions from net realized gains -0- -0- -0- -0- (.0003) (.0013)
Total dividends and distributions (.0225) (.0471) (.0447) (.0255) (.0269) (.0451)
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
TOTAL RETURNS
Total investment return based on:
net asset value (a) 4.51%(b) 4.82% 4.57% 2.58% 2.73% 4.61%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period (in millions) $5,624 $4,804 $3,024 $2,417 $2,112 $1,947
Ratio to average net assets of:
Expenses, net of waivers and
reimbursements 1.00%(b) 1.00% 1.00% 1.00% 1.00% 1.00%
Expenses, before waivers and
reimbursements 1.00%(b) 1.00% 1.03% 1.03% 1.00% 1.00%
Net investment income 4.47%(b) 4.69% 4.51% 2.57% 2.65% 4.37%
</TABLE>
(a) Total investment return is calculated assuming an initial investment made
at the net asset value at the beginning of the period, reinvestment of all
dividends and distributions at net asset value during the period, and
redemption on the last day of the period.
(b) Annualized.
9
ALLIANCE CAPITAL RESERVES
_______________________________________________________________________________
TRUSTEES
DAVE H. WILLIAMS, CHAIRMAN
JOHN D. CARIFA
SAM Y. CROSS
CHARLES H.P. DUELL
WILLIAM H. FOULK, JR.
ELIZABETH J. MCCORMACK
DAVID K. STORRS
SHELBY WHITE
OFFICERS
RONALD M. WHITEHILL, PRESIDENT
DREW BIEGEL, SENIOR VICE PRESIDENT
JOHN R. BONCZEK, SENIOR VICE PRESIDENT
KATHLEEN A. CORBET, SENIOR VICE PRESIDENT
ROBERT I. KURZWEIL, SENIOR VICE PRESIDENT
WAYNE D. LYSKI, SENIOR VICE PRESIDENT
PATRICIA NETTER, SENIOR VICE PRESIDENT
RONALD R. VALEGGIA, SENIOR VICE PRESIDENT
JOHN F. CHIODI, JR., VICE PRESIDENT
DORIS T. CILIBERTI, VICE PRESIDENT
WILLIAM J. FAGAN, VICE PRESIDENT
JOSEPH R. LASPINA, VICE PRESIDENT
LINDA D. NEIL, VICE PRESIDENT
RAYMOND J. PAPERA, VICE PRESIDENT
PAMELA F. RICHARDSON, VICE PRESIDENT
EDMUND P. BERGAN, JR., SECRETARY
MARK D. GERSTEN, TREASURER & CHIEF FINANCIAL OFFICER
JOSEPH J. MANTINEO, CONTROLLER
CUSTODIAN
STATE STREET BANK AND TRUST COMPANY
P.O. Box 1912
Boston, MA 02105
LEGAL COUNSEL
SEWARD & KISSEL
One Battery Park Plaza
New York, NY 10004
AUDITORS
MCGLADREY & PULLEN, LLP
555 Fifth Avenue
New York, NY 10017
TRANSFER AGENT
ALLIANCE FUND SERVICES, INC.
P.O. Box 1520
Secaucus, NJ 07096-1520
DISTRIBUTOR
ALLIANCE FUND DISTRIBUTORS, INC.
1345 Avenue of the Americas
New York, NY 10105
10
ALLIANCE CAPITAL RESERVES
1345 Avenue of the Americas, New York, NY 10105
Toll free 1 (800) 221-5672
YIELDS. For current recorded yield information on Alliance
Capital Reserves, call on a touch-tone telephone toll-free
(800) 251-0539 and press the following sequence of keys:
1 # 1 # 3 9 #
For non-touch-tone telephones, call toll-free (800) 221-9513
ALLIANCE CAPITAL
DISTRIBUTION OF THIS REPORT OTHER THAN TO SHAREHOLDERS MUST
BE PRECEDED OR ACCOMPANIED BY THE FUND'S CURRENT PROSPECTUS,
WHICH CONTAINS FURTHER INFORMATION ABOUT THE FUND.
R THESE REGISTERED SERVICE MARKS USED UNDER LICENSE FROM
THE OWNER, ALLIANCE CAPITAL MANAGEMENT L.P.
CAPSR
ALC39PR07
