COLONIAL INTERMEDIATE TAX-
EXEMPT FUND
COLONIAL TAX-EXEMPT FUND
COLONIAL TAX-EXEMPT
INSURED FUND
Supplement to Prospectus
dated
March 31, 1997, Revised
August 1, 1997
(Replacing Supplement
dated October 6, 1997)
The Funds' Prospectus is
amended as follows:
(1) The following Vice
Presidents of Colonial
Management Associates,
Inc. (Adviser) currently
serve as portfolio
managers of the Funds:
Gary Swayze has managed
Colonial Intermediate Tax-
Exempt Fund since
September 1997. Prior to
joining the Adviser in
1997, Mr. Swayze was a
portfolio manager and
group leader at Fidelity
Management and Research
Company and the writer and
editor of a bond market
newsletter.
William C. Loring and
Brian M. Hartford have
co-managed Colonial Tax-
Exempt Fund since May
1997. Messrs. Loring and
Hartford have managed
various other Colonial tax-
exempt funds since 1986
and 1993, respectively.
Effective December 1,
1997, Bonny E. Boatman no
longer co-manages Colonial
Tax-Exempt Fund.
(2) Effective January
1998 the Funds' custodian
will be The Chase
Manhattan Bank, 4 Chase
MetroTech Center,
Brooklyn, NY 11245.
(3) The Funds'
Distributor has changed
its name to "Liberty Financial Investments,
Inc." The Distributor's address and telephone
number remain unchanged.
TE-36/674E-1297
January 16, 1998
