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RESERVE INSTITUTIONAL TRUST
SUPPLEMENT DATED OCTOBER 16, 1997, TO PROSPECTUS DATED JANUARY 2, 1997
The following information supplements and should be read in conjunction
with the section of the Fund's prospectus entitled, "Annual Fund Expense
Information."
Reserve Management Company, Inc., the Fund's investment adviser, has
agreed to lower the total operating expenses of Class B shares to. 45%. Reserve
Management Company, Inc., has also agreed to waive .15% of the Management Fee
on all purchases of Reserve Primary Institutional Fund Class C, not available
to all investors, through January 15, 1998.
Resrv Partners, Inc.
Distributor, 10/97
