FIRST INVESTORS SPECIAL BOND FUND, INC.
SUPPLEMENT DATED JUNE 29, 1998
TO PROSPECTUS DATED APRIL 30,1998
1. The first sentence of the second paragraph under "Investment Objectives and
Policies" on page 4 is replaced with the following:
The Fund may invest in debt securities issued by foreign governments and
companies and in foreign currencies for the purpose of purchasing such
securities. However, the Fund may not invest more than 5% of its total assets in
debt securities issued by foreign governments and companies that are denominated
in foreign currencies.
2. The following paragraph is to follow the section entitled "Deep Discount
Securities" on page 6:
FOREIGN SECURITIES. Investing in foreign securities involves more risk
than investing in securities of U.S. companies. The Fund currently does not
intend to hedge its foreign investments against the risk of foreign currency
fluctuations. Changes in the value of foreign currencies can therefore
significantly affect the Fund's share price. In addition, the Fund can be
affected by changes in exchange control regulations, as well as by economic and
political developments. There may be less publicly available information about
foreign companies than comparable U.S. companies; foreign companies are not
generally subject to uniform accounting, auditing and financial reporting
standards that are comparable to those applied to U.S. companies; some foreign
trading markets have substantially less volume than U.S. markets, and securities
of some foreign companies are less liquid and more volatile than securities of
comparable U.S. companies; there may be less government supervision and
regulation of foreign stock exchanges, brokers and listed companies than exist
in the United States; and there may be the possibility of expropriation or
confiscatory taxation, political or social instability or diplomatic
developments which could affect assets of the Fund held in foreign countries.
FISB698
