<PAGE>
FORUM FUNDS
NEW HAMPSHIRE BOND FUND
SUPPLEMENT DATED APRIL 1, 1997
TO THE PROSPECTUS DATED AUGUST 1, 1996
1. The following sentence relating to the Fund's maximum sales charge replaces
the third paragraph on the first page of the Prospectus:
Shares of the Fund are sold subject to a maximum sales charge of 2.50% of the
total public offering price (2.56% of the net amount invested).
2. The following table relating to the Fund's sales charges replaces the table
on page 14 of the Prospectus:
SALES CHARGE AS
A % OF
----------------------------
AMOUNT OF PURCHASE PUBLIC OFFERING NET ASSET DEALERS'
PRICE VALUE REALLOWANCE
Less than $50,000 2.50% 2.56% 2.50%
$50,000 but less than
$100,000 2.25% 2.30% 2.25%
$100,000 but less than
$500,000 2.00% 2.04% 2.00%
$500,000 but less than
$1,000,000 1.50% 1.52% 1.50%
$1,000,000 or greater 0.50% 0.50% 0.50%
<PAGE>
FORUM FUNDS
NEW HAMPSHIRE BOND FUND
Supplement dated April 1, 1997
to Statement of Additional Information Dated August 1, 1996
The following paragraph relating to the method of computing the offering price
of the Fund's shares replaces the second paragraph in Section 7 "Additional
Purchase and Redemption Information":
Set forth below is an example of the method of computing the offering price of
the Fund's shares. Assuming a purchase of shares aggregating less than $100,000
subject to the adjusted sales charge schedule at a price based on the net asset
value per share on March 31, 1996, of $10.33, the offering price of the Fund's
shares is computed as follows:
Net Asset Value Per Share . . . . . . . . . . . . . . . $ 10.33
Sales Charge, 2.50% of offering price
(2.56% of net asset value per share). . . . . . . . . . $ 0.26
Offering to Public. . . . . . . . . . . . . . . . . . . $ 10.59
-2-
<PAGE>
FORUM FUNDS
MAINE MUNICIPAL BOND FUND
SUPPLEMENT DATED APRIL 1, 1997
TO THE PROSPECTUS DATED AUGUST 1, 1996
1. The following sentence relating to the Fund's maximum sales charge replaces
the third paragraph on the first page of the Prospectus:
Shares of the Fund are sold subject to a maximum sales charge of 2.50% of the
total public offering price (2.56% of the net amount invested).
2. The following table relating to the Fund's sales charges replaces the table
on page 14 of the Prospectus:
SALES CHARGE AS
A % OF
----------------------------
AMOUNT OF PURCHASE PUBLIC OFFERING NET ASSET DEALERS'
PRICE VALUE REALLOWANCE
Less than $50,000 2.50% 2.56% 2.50%
$50,000 but less than
$100,000 2.25% 2.30% 2.25%
$100,000 but less than
$500,000 2.00% 2.04% 2.00%
$500,000 but less than
$1,000,000 1.50% 1.52% 1.50%
$1,000,000 or greater 0.50% 0.50% 0.50%
-3-
<PAGE>
FORUM FUNDS
MAINE MUNICIPAL BOND FUND
Supplement dated April 1, 1997
to Statement of Additional Information Dated August 1, 1996
The following paragraph relating to the method of computing the offering price
of the Fund's shares replaces the second paragraph in Section 7 "Additional
Purchase and Redemption Information":
Set forth below is an example of the method of computing the offering price of
the Fund's shares. Assuming a purchase of shares aggregating less than $100,000
subject to the adjusted sales charge schedule at a price based on the net asset
value per share on March 31, 1996 of $10.72, the offering price of the Fund's
shares is computed as follows:
Net Asset Value Per Share . . . . . . . . . . . . . . . $ 10.72
Sales Charge, 2.50% of offering price
(2.56% of net asset value per share). . . . . . . . . . $ 0.27
Offering to Public. . . . . . . . . . . . . . . . . . . $ 10.99
-4-
