DELAWARE GROUP INCOME FUNDS, INC.
Delchester Fund
Supplement to the current Prospectus
The Board of Directors of Delaware Group Income Funds,
Inc. (the " Company") unanimously voted, subject to shareholder
approval, to adopt a new Investment Management Agreement between
the Company and Delaware Management Company (the "Manager") for
the Delchester Fund. Under the current Investment Management
Agreement, the Fund pays the Manager an annual fee equal to 0.60%
on the first $500 million, 0.575% on the next $250 million, 0.55%
on assets over $750 million (all calculated as a percentage of
the Fund s average daily net assets less independent directors
fees). Under the proposed Investment Management Agreement, the
Fund will pay the Manager an annual fee equal to 0.65% on the
first $500 million, 0.60% on the next $500 million, 0.55% on the
next $1.5 billion, and 0.50% on assets over $2.5 billion (all
calculated as a percentage of the Fund's average daily net
assets).
Individuals who were shareholders of the Fund on
December 21, 1998 will be asked to approve the proposed
Investment Management Agreement at a Joint Annual/Special Meeting
of Shareholders to be held on or about March 17, 1999. The
proposed management fee is expected to become effective on or
about April 1, 1999 if shareholders approve the proposed
Investment Management Agreement.
