COLONIAL TAX-EXEMPT FUND
Supplement to Prospectus dated
March 30, 1995
The fourth paragraph under the caption
How the Fund is managed has been revised
in its entirety as follows:
Bonny E. Boatman, Senior Vice President
and Director of the Adviser and head of the
Tax-Exempt Group, has managed the Fund since
1993 and has managed various other Colonial
tax-exempt funds since 1985. Robert S. Waas,
Vice President of the Adviser, has co-managed
the Fund since July 1995. Prior to joining the
Adviser in July 1995, Mr. Waas was a portfolio
manager at Van Kampen/American Capital and the
Colonial Penn Group.
TE-142B-0895 August 11, 1995
