LIBERTY INTERMEDIATE
TAX-EXEMPT FUND
(THE "FUND")
SUPPLEMENT TO PROSPECTUS
DATED APRIL 1, 2000
Subject to approval by the Board of Trustees of the Fund, a proposal to
reorganize the Fund into the Stein Roe Intermediate Municipals Fund will be
submitted to the shareholders of the Fund. If shareholders of the Fund approve
the proposal, all of the assets of the Fund will be transferred to Stein Roe
Intermediate Municipals Fund and shareholders of the Fund will receive shares of
Stein Roe Intermediate Municipals Fund in exchange for their shares.
Shareholders of the Fund are scheduled to vote on the proposal at a special
meeting of shareholders to be held on December 27, 2000. If approved, the
reorganization is proposed to take place in January, 2001. Shareholders of the
Fund will be mailed information detailing the proposal on or about November 27,
2000.
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Fund Acquiring Fund
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Liberty Intermediate Stein Roe Intermediate
Tax-Exempt Fund Municipals Fund
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787-36/469-1000 October 20, 2000
