<PAGE>
Supplement dated January 12, 1999
to Prospectus dated August 1, 1998 of
BT ALEX. BROWN CASH RESERVE FUND, INC.
Prime Series
Treasury Series
Tax-Free Series
This amends and supplements the Fund's prospectus to show certain
changes to the Annual Fund Operating Expenses and Example on page 2 and General
Information on pages 13 and 14. THE NET EFFECT OF THESE CHANGES IS AS FOLLOWS:
THE TOTAL FUND OPERATING EXPENSES OF THE PRIME SERIES REMAIN THE SAME AT 0.67%,
THE TOTAL FUND OPERATING EXPENSES OF THE TREASURY SERIES ARE REDUCED FROM 0.59%
TO 0.57% AND THE TOTAL FUND OPERATING EXPENSES OF THE TAX-FREE SERIES INCREASE
FROM 0.60% TO 0.61%.
ANNUAL FUND OPERATING EXPENSES
The Annual Fund Operating Expenses and Example on page 2 of the
Prospectus are amended and restated below to reflect current fees, including a
new shareholder service fee (see "General Information" below).
<TABLE>
<CAPTION>
Annual Fund Operating Expenses Prime Treasury Tax-Free
(as a % of average daily net assets) Series Series Series
------------------------------------ ------ ------ ------
<S> <C> <C> <C>
Management Fees (See "Management of the Fund-Investment
Advisor") (net of fee waivers for the Treasury Series)................. 0.26% 0.19%* 0.27%
12b-1 Fees (See "Management of the Fund-Distributor")..................... 0.25% 0.25% 0.25%
Other Expenses (including a 0.05% Shareholder Service Fee for
each class)............................................................ 0.16% 0.13% 0.09%
----- ------ -----
Total Fund Operating Expenses (net of fee waivers for the
Treasury Series)....................................................... 0.67% 0.57%* 0.61%
===== ======= =====
</TABLE>
- -------
* The Advisor is waiving its fee on the Treasury Series by 0.05%. Absent such
fee waivers, Management Fees would be 0.24% and Total Fund Operating Expenses
would be 0.62% of the BT Alex. Brown Cash Reserve Treasury Shares class'
average daily net assets. The waiver is voluntary and may be terminated at
any time.
EXAMPLE:
You would pay the following expenses on a $1,000 investment in each Series
assuming (1) 5% annual return, and (2) redemption at the end of each time
period:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 year................................................................ $ 7 $ 6 $ 6
3 years............................................................... $21 $18 $20
5 years............................................................... $37 $32 $34
10 years.............................................................. $83 $71 $76
</TABLE>
THE EXPENSES AND EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
<PAGE>
GENERAL INFORMATION
The section entitled General Information on pages 13 and 14 is amended
and supplemented by the following:
On December 18, 1998, the Fund's Board of Directors adopted a
shareholder service plan (the "Service Plan") for the BT Alex. Brown Cash
Reserve Shares of each of the Prime Series, the Treasury Series and the Tax-
Free Series (the "Shares"). Under the terms of each Service Plan, the Fund will
pay the Distributor an annual service fee of 0.05% of the Shares' average daily
net assets. The Distributor will use the service fee to pay third parties for
services for which they are not otherwise being compensated under a dealer or
shareholder servicing agreement entered into pursuant to a Rule 12b-1 Plan.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
CASHPRSSUP1
(01/99)
<PAGE>
Supplement dated January 12, 1999
to Prospectus dated August 1, 1998 of
BT ALEX. BROWN CASH RESERVE FUND, INC. - INSTITUTIONAL SHARES
Prime Series
Treasury Series
Tax-Free Series
This amends and supplements the Fund's prospectus to show certain
changes to the Annual Fund Operating Expenses and Example on page 2. THE NET
EFFECT OF THESE CHANGES IS AS FOLLOWS: THE TOTAL FUND OPERATING EXPENSES OF THE
PRIME INSTITUTIONAL SHARES ARE REDUCED FROM 0.42% TO 0.37%, THE TOTAL FUND
OPERATING EXPENSES OF THE TREASURY INSTITUTIONAL SHARES ARE REDUCED FROM 0.34%
TO 0.27% AND THE TOTAL FUND OPERATING EXPENSES OF THE TAX-FREE INSTITUTIONAL
SHARES ARE REDUCED FROM 0.35% TO 0.31%.
ANNUAL FUND OPERATING EXPENSES
The Annual Fund Operating Expenses and Example on page 2 of the
Prospectus are amended and restated below to reflect current fees:
<TABLE>
<CAPTION>
Prime Treasury Tax-Free
Annual Fund Operating Expenses Institutional Institutional Institutional
(as a % of average daily net assets) Shares Shares Shares
------------------------------------ ------ ------ ------
<S> <C> <C> <C>
Management Fees (See "Management of the Fund-Investment
Advisor") (net of fee waivers for the Treasury Series)................... 0.26% 0.19%* 0.27%
12b-1 Fees (See "Management of the Fund-Distributor")....................... None None None
Other Expenses.............................................................. 0.11% 0.08% 0.04%
----- ----- -----
Total Fund Operating Expenses (net of fee waivers for the Treasury
Series).................................................................. 0.37% 0.27%* 0.31%
===== ====== =====
</TABLE>
- -------
* The Advisor is waiving its fee on the Treasury Series by 0.05%. Absent such
fee waivers, Management Fees would be 0.24% and Total Fund Operating
Expenses would be 0.32% of the Treasury Institutional Shares class' average
daily net assets. The waiver is voluntary and may be terminated at any
time.
EXAMPLE:
You would pay the following expenses on a $1,000 investment assuming (1) 5%
annual return, and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 year.................................................................... $ 4 $ 3 $ 3
3 years................................................................... $12 $ 9 $10
5 years................................................................... $21 $15 $17
10 years................................................................... $47 $34 $39
</TABLE>
THE EXPENSES AND EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
TRIPRSSUP1
(01/99)
