LINCOLN NATIONAL MONEY MARKET FUND INC, 497, 1999-05-07

LINCOLN NATIONAL MONEY MARKET FUND INC
497, 1999-05-07

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<PAGE>
PREFACE TO THE LINCOLN NATIONAL FUNDS PROSPECTUSES

THE PREFACE AND DIRECTORY ARE PART OF THE PROSPECTUS FOR EACH OF THE FOLLOWING
FUNDS:

Lincoln National Bond Fund, Inc. (Bond)

Lincoln National Capital Appreciation Fund, Inc. (Capital Appreciation)

Lincoln National Equity-Income Fund, Inc. (Equity Income)

Lincoln National Money Market Fund, Inc. (Money Market)

Lincoln National Special Opportunities Fund, Inc. (Special Opportunities)

Each fund has its own Prospectus that describes the fund and its investment
objective. We refer to each of the funds as a fund and to all of the funds
together as the funds.

Each fund sells its shares only to Lincoln National Life Insurance Co. and its
affiliates (Lincoln Life). Lincoln Life holds the shares in its separate
accounts to support variable annuity contracts and variable life insurance
contracts (contracts). We refer to a separate account as a variable account.
Each variable account has its own prospectus that describes the account and the
contracts it supports. You choose the fund or funds in which a variable account
invests your contract assets. In effect, you invest indirectly in the fund(s)
that you choose under your contract.

Each fund Prospectus discusses the information about the fund that you ought to
know before choosing to invest your contract assets in one or more of the funds.
You can find information unique to each fund in that fund's Prospectus. You can
find information common to all funds in the General Prospectus Disclosure
following the individual fund Prospectuses.

The Securities and Exchange Commission (SEC) has not approved or disapproved
these securities or determined if these prospectuses are truthful or complete.
Any representation to the contrary is a criminal offense.

We have not authorized any dealer, salesperson, or any other person to give any
information, or to make any representation, other than what these Prospectuses
state. These Prospectuses do not offer to sell fund shares, or seek offers to
buy fund shares, where it would be unlawful.

Prospectuses dated May 1, 1999

P/D-1
<PAGE>
DIRECTORY FOR THE FUND PROSPECTUS
<TABLE>
<CAPTION>
SUBJECT PAGE
<S> <C>
- ----------------------------------------------------
PREFACE
SUMMARY DESCRIPTION OF THE FUND
Bond B-1
Capital Appreciation CA-1
Equity-Income EI-1
Money Market MM-1
Special Opportunities SO-1
- ----------------------------------------------------
FEE TABLE
Bond GPD-2
Capital Appreciation GPD-2
Equity-Income GPD-2
Money Market GPD-2
Special Opportunities GPD-2
- ----------------------------------------------------
INVESTMENT STRATEGIES
Bond B-2
Capital Appreciation CA-1
Equity-Income EI-2
Money Market MM-1
Special Opportunities SO-1
- ----------------------------------------------------
RISKS OF INVESTMENT STRATEGIES
Bond B-3
Capital Appreciation CA-2
Equity-Income EI-2
Money Market MM-2
Special Opportunities SO-2

<CAPTION>
SUBJECT PAGE
- ----------------------------------------------------
<S> <C>
INVESTMENT ADVISER AND PORTFOLIO MANAGER
Bond B-4
Capital Appreciation CA-3
Equity-Income EI-4
Money Market MM-2
Special Opportunities SO-3
- ----------------------------------------------------
GENERAL PROSPECTUS DISCLOSURE --
IMPORTANT ADDITIONAL INFORMATION
Net asset value GPD-1
Management of the funds GPD-1
Purchase and redemption of fund shares GPD-2
Distributions and federal income tax
considerations GPD-3
Management discussion of fund performance GPD-3
Financial highlights GPD-4
General Information GPD-5
Preparing for year 2000 GPD-5

</TABLE>

P/D-2
<PAGE>
LINCOLN NATIONAL
BOND FUND, INC.

SUMMARY DESCRIPTION OF THE FUND

The investment objective of the Bond Fund (fund) is maximum current income
(yield) consistent with a prudent investment strategy. The fund pursues this
objective primarily by buying and holding (investing in) a diverse group of
domestic fixed income securities (debt obligations). These securities include
high-quality investment-grade bonds issued by U.S. corporations, obligations
issued or guaranteed by the U.S. Government, and securities backed by mortgages
on real estate (mortgage-backed securities). The fund also invests in
medium-grade corporate bonds. The fund also invests a small percentage of assets
in corporate bonds rated lower than medium-grade (junk bonds) and high-quality
U.S. dollar-denominated foreign debt obligations. The fund invests in
significant amounts of debt obligations with medium term maturities (5-15 years)
and some debt obligations with short term maturities (0-5 years) and long term
maturities (over 15 years).

The fund's investment strategy is:

- - to determine appropriate levels of interest rate risk and credit risk for the
fund, based on U.S. and world economic developments, and

- - then hold a diverse group of debt obligations that offer the most attractive
yields given the anticipated environment.

The main investment risks of choosing to invest your contract assets in the fund
are as follows:

- - the value of the debt obligations held by the fund -- and therefore, the value
of the fund's shares -- will fluctuate with changes in interest rates and you
could lose money (interest rate risk);

- - issuers of the debt obligations held by the fund could fail to make interest
or principal payments on time, causing the value of those debt obligations --
and, therefore, the value of the fund's shares -- to fall (credit risk);

- - the amount of current income generated by the fund will fluctuate with changes
in current interest rates, and generally will fall as current interest rates
fall;

- - the value of the mortgage-backed securities held by the fund -- and therefore,
the value of the fund's shares -- may fluctuate with changes in interest rates
more widely than the value of investment-grade debt obligations;

- - because the fund invests a small amount in junk bonds, the fund involves more
risk of loss than that normally associated with a bond fund that invests only
in investment-grade debt obligations; and

- - because the fund holds a small amount of high-quality dollar-denominated
foreign debt obligations, the fund involves more risk of loss from foreign
government or political actions than that normally associated with a bond fund
that does not invest in foreign debt obligations.

The following information provides some indication of the risks of choosing to
invest your contract assets in the fund. The information shows:

- - changes in the fund's performance from year to year and

- - how the fund's average annual returns for one, five and ten year periods
compare with those of a broad measure of market performance.

Please note that the past performance of the fund is not necessarily an
indication of how the fund will perform in the future. Further, the returns
shown do not reflect variable contract expenses. If reflected the returns shown
would be lower.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ANNUAL TOTAL RETURNS
<S> <C>
Year Annual Total Return
1989 13.07%
1990 6.64%
1991 17.21%
1992 7.84%
1993 12.26%
1994 -4.18%
1995 18.95%
1996 2.31%
1997 9.30%
1998 9.56%
</TABLE>

During the periods shown in the above chart, the fund's highest return for a
quarter occurred in the first quarter of 1991 at: 9.52%.

The fund's lowest return for a quarter occurred in the first quarter of 1994 at:
(-3.37%).

B-1
<PAGE>
AVERAGE ANNUAL TOTAL RETURN
(FOR PERIODS ENDED 12/31/98)

<TABLE>
<CAPTION>
Lehman Brothers
Government/
Corporate
Period Back Bond Bond Index*
<S> <C> <C>
- --------------------------------------------------------------------
1 year 9.56% 9.47%
5 year 6.91% 7.30%
10 year 9.10% 9.34%
</TABLE>

* The Lehman Brothers Government/Corporate Bond Index is Lehman Brothers' index
of U.S. Government and corporate bonds, a widely-recognized unmanaged index of
domestic bond prices.

INVESTMENT STRATEGIES

The investment objective of the fund is maximum current income consistent with a
prudent investment strategy.

The fund pursues this objective primarily by investing in a diverse group of
domestic debt obligations. The fund invests in significant amounts of debt
obligations with medium term maturities (5-15 years) and some debt obligations
with short term maturities (0-5 years) and long term maturities (over 15 years).
(A debt obligation's "maturity" refers to the time period remaining until the
debt obligation's issuer must repay the principal amount of the debt
obligation.) The fund will invest primarily in a combination of:

- - high-quality investment-grade corporate bonds;

- - obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities; and

- - mortgage-backed securities.

Investment-grade corporate bonds are debt obligations rated at the time of
purchase in the top four credit rating categories of Moody's Investor Service,
Inc. and Standard & Poor's Corp. (See the General SAI Disclosure for the 11
funds for a description of the credit rating categories of these two entities,
and a description of U.S. government obligations.) Investment-grade corporate
bonds include high-quality corporate bonds (top three credit-rating categories)
and medium-grade corporate bonds (fourth credit-rating category).

Mortgage-backed securities are issued by government agencies and other
non-government agency issuers. Mortgage-backed securities include obligations
backed by a mortgage or pool of mortgages and direct interests in an underlying
pool of mortgages. Mortgage-backed securities also include collateralized
mortgage obligations (CMOs). The mortgages involved could be those on commercial
or residential real estate properties.

The fund may also hold a small amount of

- - corporate bonds rated lower than medium-grade (junk bonds);

- - dollar-denominated debt obligations of, or guaranteed by, foreign governments
or any of their instrumentalities or political subdivisions; and

- - high-quality dollar-denominated debt obligations of foreign corporations.

The fund's investment process centers on an analysis of the behavior of the
overall world economy, with a specific focus on the U.S. economy. This analysis
considers the current and anticipated levels of the gross domestic product,
inflation, unemployment, and other economic statistics, and possible changes in
the U.S. credit cycle and the monetary policy of the Federal Reserve Board. The
fund's process also closely monitors the U.S. credit cycle by analyzing economic
statistics such as the Leading Economic Indicators and similar statistics for
turning points in the U.S. economy and credit conditions. Based on the results
of the analysis, the fund determines an appropriate level of interest rate risk
and credit risk for the fund. The fund then seeks to hold specific amounts of
those types of debt obligations that provide the greatest yield, yet still allow
the fund to meet the appropriate level of interest rate risk and credit risk
determined for the fund.

For example, if the fund's analysis indicates a change in the Federal Reserve
Board's policies and an increase in short term interest rates, the fund would
likely seek to lower the level of interest rate risk by shortening the average
maturity and duration of the portfolio. (Duration is the change in value of a
debt obligation resulting from a 1% change in interest rates.) Under these
conditions, this strategy would be appropriate since intermediate and long-term
interest rates are also likely to go up when the Federal Reserve Board raises
short-term interest rates.

Similarly, when the fund's analysis indicates a weakening of the U.S. economy
and deterioration of general business fundamentals, the fund will replace lower-
rated holdings with higher-rated debt obligations to lessen credit risk. If, on
the other hand, the fund's analysis indicates an improving of the U.S. economy
and general business fundamentals, the fund may increase its holdings of
lower-rated debt obligations.

The fund selects those individual debt obligations deemed to have the best
yields in their credit rating category. The fund selects debt obligations after
giving consideration to all risk aspects of the debt obligation, including the
possibility of a credit rating upgrade or

B-2
<PAGE>
downgrade, the debt obligation's resale value, and any prepayment options.

The fund expects its annual portfolio turnover rate to be 100% or less in any
year. (For example, the fund would have a rate of portfolio turnover of 100%, if
the fund replaced all of its investments in one year.) Market conditions could
result in a greater degree of market activity and a portfolio turnover rate as
high as 150%. High turnover could increase fund expenses. The fund's portfolio
turnover rate was 51.33% in 1998 and 56.16% in 1997.

OTHER STRATEGIES

The fund may invest in money market instruments as a temporary defensive
strategy. The fund, in doing so, would likely not be pursuing its investment
objective. The fund also may hold cash for liquidity purposes while seeking
appropriate investments.

The fund also uses other investment strategies, to a lesser degree, to pursue
its investment objective. The fund's SAI describes these other investment
strategies and the risks they involve.

RISKS OF INVESTMENT STRATEGIES

Investing in the fund primarily involves interest rate risk and credit risk.

Interest rate risk is the risk that the value of the debt obligations held by
the fund -- and therefore, the value of the fund's shares held under your
contract -- will fluctuate with changes in interest rates. As a general matter,
the value of debt obligations will fluctuate with changes in interest rates.
These fluctuations can be greater for debt obligations with longer maturities.
When interest rates rise, debt obligations decline in value, and when interest
rates fall, debt obligations increase in value. Accordingly, during periods of
rising interest rates, you could lose money investing in the fund.

Credit risk is the risk that the issuer of the debt obligation will be unable to
make interest or principal payments on time. A debt obligation's credit rating
reflects the credit risk associated with that debt obligation. Higher-rated debt
obligations involve lower credit risks than lower-rated debt obligations. The
value of the debt obligations held by the fund -- and, therefore, the value of
the fund's shares -- will fluctuate with the changes in the credit ratings of
the debt obligations held. Generally, a decrease in an issuer's credit rating
will cause that issuer's outstanding debt obligations to fall in value. The
issuer may also have increased interest payments, as issuers with lower credit
ratings generally have to pay higher interest rates to borrow money. As a
result, the issuer's future earnings and profitability could also be negatively
affected. This could further increase the credit risks associated with that debt
obligation.

If debt obligations held by the fund are assigned a lower credit rating, the
value of these debt obligations and, therefore, the value of the fund's shares
could fall, and you could lose money. Additionally, because the fund also
invests in medium-grade corporate bonds, the fund involves more risk than that
normally associated with a bond fund that only invests in high-quality corporate
bonds.

Further, the amount of current income generated by the fund depends on the types
of debt obligations held and changes in current interest rates. During extended
periods of falling interest rates, the fund will earn reduced income on new
investments, and the fund's income could be lower. Conversely, during extended
periods of rising interest rates, the fund will earn increased income on new
investments, and the fund's income could be higher. As discussed above, however,
the value of the debt obligations held by the fund are also affected by changes
in interest rates. Accordingly, while periods of rising interest rates could
produce increased income, the value of the fund's shares could also fall during
such periods.

Because the fund invests in mortgage-backed securities, the value of the fund's
shares may react more severely to changes in interest rates. In periods of
falling interest rates, mortgage-backed securities are subject to the
possibility that the underlying mortgages will be paid early (pre-payment risk),
lowering the potential total return and, therefore, the value of the
mortgage-backed securities. During periods of rising interest rates, the rate at
which the underlying mortgages are pre-paid may slow unexpectedly, causing the
maturity of the mortgage-backed securities to increase and their value to
decline (maturity extension risk). In either instance, the value of the
mortgage-backed securities may fluctuate more widely than the value of
investment-grade debt obligations in response to changes in interest rates.

Because a small percentage of the debt obligations held by the fund are junk
bonds and debt obligations issued by foreign governments and companies,
investing in the fund also involves additional risks. Junk bonds are often
considered speculative and involve significantly higher credit risk. Junk bonds
are also more likely to experience significant fluctuation in value due to
changes in the issuer's credit rating. The value of junk bonds may fluctuate
more than the value of higher-rated debt obligations, and may decline
significantly in periods of general economic difficulty or periods of rising
interest rates.

B-3
<PAGE>
Dollar-denominated foreign debt obligations, even high-quality debt obligations,
involve the risk of loss from foreign government or political actions. These
actions could range from changes in tax or trade statutes to governmental
collapse and war. These actions could include a foreign government's imposing a
heavy tax on a company or taking over a company. These actions could cause the
value of the debt obligations held by the fund and the fund's shares to fall.
(See the SAI Appendix for the 11 funds for a more detailed discussion of the
risks and costs involved in investing in securities of foreign issuers.)

Additionally, as of January 1, 1999, several European countries began
participating in the European Economic and Monetary Union, which established a
common European currency for participating countries. This currency is commonly
known as the "Euro." Each participating country is currently phasing in use of
the Euro for major financial transactions. In addition, each participating
country will begin using the Euro for currency transactions beginning July 1,
2002. Additional European countries may elect to participate. Funds investing in
securities of participating countries could be adversely affected if the
computer systems used by their major service providers are not properly prepared
to handle both the implementation of this single currency and the prospect of
the adoption of the Euro by additional countries in the future.

You may consider choosing this fund for investing some portion of your contract
assets (1) if you are seeking the possibility of higher current income than what
may be offered by other lower risk investment vehicles, such as U.S. treasury
notes and money market mutual funds and (2) as long as you are comfortable with
the risks associated with investing in the fund, including those risks
associated with the fund's small investment in junk bonds and debt obligations
of foreign governments and companies.

INVESTMENT ADVISOR AND PORTFOLIO MANAGER

The fund's investment advisor is Lincoln Investment Management. Inc. (Lincoln
Investment). You can find information about Lincoln Investment in the General
Prospectus Disclosure under "Management of the funds -- Investment advisor."

David C. Fischer, Vice President of Lincoln Investment, manages the fund. Mr.
Fischer has managed the fund since January 1, 1998, and has been a fixed income
portfolio generalist for Lincoln Investment since 1993. From 1988-1993, Mr.
Fischer led Lincoln Investment's mortgage-backed and asset-backed trading and
portfolio management functions. Mr. Fischer holds a MBA from Indiana University,
and is a Chartered Financial Analyst and Certified Public Accountant.

B-4
<PAGE>
LINCOLN NATIONAL
GROWTH AND INCOME FUND, INC.

SUMMARY DESCRIPTION
OF THE FUND

The investment objective of the Growth and Income Fund (fund) is to maximize
long-term capital appreciation (as measured by the change in the value of fund
shares over a period of three years or longer). The fund pursues this objective
primarily by buying and holding (investing in) a diverse group of equity
securities (stocks) of large-sized U.S. companies: companies with market
capitalizations of more than $5 billion. The fund also holds some investments in
medium-sized U.S. companies, which have market capitalizations greater than $1
billion but less than $5 billion.

The fund's investment strategy is to invest in stocks of established companies
believed to:

- - be undervalued in the market relative to other companies in an industry, and

- - show growth potential significantly greater than the average expected growth
rate of companies in the same industry.
The fund's secondary investment strategy places some emphasis on providing
income (dividends and interest).

The main investment risks of choosing to invest your contract assets in the fund
are as follows:

- - the value of the fund's shares will fluctuate, and you could lose money; and

- - the value of the fund's stock investments -- and, therefore, the value of the
fund's shares -- will fluctuate in line with broad stock market indices, such
as the Standard & Poor's 500 Composite Stock Index (S&P 500).

The following information provides some indication of the risks of choosing to
invest your contract assets in the fund. The information shows:

- - changes in the fund's performance from year to year and

- - how the fund's average annual returns for one, five and ten year periods
compare with those of a broad measure of market performance.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ANNUAL TOTAL RETURNS
<S> <C>
Year Annual Total Return
1989 20.75%
1990 0.95%
1991 30.61%
1992 1.84%
1993 13.12%
1994 1.32%
1995 38.81%
1996 18.76%
1997 30.93%
1998 20.33%
</TABLE>

During the periods shown in the above chart, the fund's highest return for a
quarter occurred in the fourth quarter of 1998 at: 22.88%.

The fund's lowest return for a quarter occurred in the third quarter of 1990 at:
(-14.91)%.

AVERAGE ANNUAL TOTAL RETURN
(FOR PERIODS ENDED 12/31/98)

<TABLE>
<CAPTION>
PERIOD BACK GROWTH & INCOME S&P 500*
<S> <C> <C>
- ----------------------------------------------------------------------
1 year 20.33% 28.76%
5 year 21.35% 24.15%
10 year 17.05% 19.22%
</TABLE>

* The S&P 500 is the Standard & Poor's Composite Index of 500 stocks, a widely
recognized unmanaged index of common stock prices.

INVESTMENT STRATEGIES

The investment objective of the fund is long-term capital appreciation.

The fund pursues this objective by investing in a diversified portfolio of
stocks primarily of large-sized U.S. companies (market capitalizations greater
than $5 billion), with some emphasis on medium-sized companies (market
capitalizations between $1 billion and $5 billion). (A company's market
capitalization is calculated by multiplying the total number of shares of its
common stock outstanding by the market price of the stock. As a point of
reference, as of December 31, 1998, the average market capitalization of the S&P
500, a broad based market index representative of larger, typically more
financially stable companies, was $87 billion.

GI-1
<PAGE>
The fund's management style focuses on seeking growth companies at a reasonable
price by blending:

- - a "growth" oriented management style, which seeks companies with earnings
and/or revenues that are growing faster than the industry average, and

- - a "value" oriented management style, which seeks companies within an industry
with current stock prices that do not reflect the stocks' perceived true
worth.

More specifically, the fund seeks to invest in companies believed to:

- - show growth potential that significantly exceeds the average expected growth
rate of companies in the same industry; and

- - be undervalued in the market relative to the companies' industry peers.

The companies sought typically have:

- - a long history of profit growth and dividend payment, and

- - a reputation for quality management, products and service.

The fund's selection of industries and the size of investments in each industry
will be similar to those of the S&P 500. The fund uses the following fundamental
criteria for measuring individual stock selection: price to earnings ratio,
growth of historical and forecasted earnings, and current yield. The fund seeks
to own the most attractive stocks in each industry. The fund compares its
current investments to possible new investments on an ongoing basis. The fund
replaces a current investment, if a possible new investment appears
significantly more attractive under the fund's investment criteria.

OTHER STRATEGIES

The fund may invest in money market instruments and hold a portion of its assets
in cash for liquidity purposes, as a temporary defensive strategy. The fund may
use this temporary defensive strategy when market conditions limit the fund's
ability to use its other investment strategies to identify and obtain suitable
investments. The fund, in doing so, would not be pursuing its investment
objective. The fund also may hold cash or money market instruments while seeking
appropriate investments.

The fund also uses other investment strategies, to a lesser degree, to pursue
its investment objective. The fund's SAI describes these other investment
strategies and the risks they involve.

RISKS OF INVESTMENT STRATEGIES

Investing in stocks involves the risk that the value of the stocks purchased
will fluctuate. These fluctuations could occur for a single company, an
industry, a sector of the economy, or the stock market as a whole. These
fluctuations could cause the value of the fund's stock investments -- and,
therefore, the value of the fund's shares held under your contract -- to
fluctuate, and you could lose money.

Moreover, the fund invests in medium-sized as well as large-sized companies, and
the fund's performance may be affected if stocks in one of these two groups of
companies do not perform as well as stocks in the other group. Further,
medium-sized companies, which are not as well-established as large-sized
companies, may (1) react more severely to market conditions and (2) suffer more
from economic, political and regulatory developments.

You may consider choosing the fund for investing some portion of your contract
assets if (1) you are seeking the possibility of long-term capital appreciation
with some emphasis on providing income, and (2) you are comfortable with risk
similar to that of the broad stock market.

INVESTMENT ADVISOR AND PORTFOLIO MANAGER

The fund's investment advisor is Lincoln Investment Management, Inc. (Lincoln
Investment). You can find information about Lincoln Investment in the General
Prospectus Disclosure under "Management of the funds -- Investment advisor."

Lincoln Investment is responsible for overall management of the fund's
securities investments. This includes monitoring the fund's sub-advisor, Vantage
Investment Advisors, Inc. (Vantage). Vantage's address is 630 5th Avenue, New
York, New York 10111.

Vantage is responsible for the day-to-day management of the fund's securities
investments. Vantage, founded in 1979, is a U.S. domestic equity manager with
over $9 billion in assets under management. Vantage began managing the fund in
1985. Enrique Chang, Vantage's Chief Investment Officer, and Christopher Harvey,
a Vice-President of Vantage, manage the fund.

GI-2
<PAGE>
Analysis and Strategy with General Reinsurance Corporation, and Senior Vice
President and Director of Quantitative Analysis with J&W Seligman. He graduated
from Fairleigh Dickinson University, and received an MBA in finance and
quantitative analysis and an MS in statistics and operations research from New
York University.

Mr. Harvey manages portfolios, conducts investment research and assists in
equity trading for Vantage. Prior to joining Vantage, Mr. Harvey was a financial
analyst with Merrill Lynch. He graduated Bucknell University and received an MBA
from New York University.

GI-3
<PAGE>
THIS PAGE WAS INTENTIONALLY LEFT BLANK.

GI-4
<PAGE>
LINCOLN NATIONAL
MONEY MARKET FUND, INC.

SUMMARY DESCRIPTION OF THE FUND

The investment objective of the Lincoln National Money Market Fund (fund) is to
maximize current income while (1) maintaining a stable value of your shares
(providing stability of net asset value) and (2) preserving the value of your
initial investment (preservation of capital). The fund pursues this objective by
investing in a diverse group of high quality short-term money market securities.
These securities include obligations issued or guaranteed by the U.S.
Government, obligations of U.S. financial institutions and other entities, and
debt obligations issued by U.S. corporations.

The fund's investment strategy is to seek money market securities that provide
the most attractive yields. As a general matter, the fund will invest (1) at
most 5% of the fund's assets in the money market securities of any one issuer
and (2) at most 25% of the fund's assets in the money market securities issued
by companies in any one industry.

The main investment risks of choosing to invest your contact assets in the fund
are as follows:

- - the amount of current income generated by the fund will fluctuate based on
changes in current interest rates; and

- - an investment in the fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the fund seeks
to preserve the value of its shares at $10.00 per share, it is possible to
lose money by investing in the fund.

The following information provides some indication of the risks of choosing to
invest your contract assets in the fund. The information shows:

- - changes in the fund's performance from year to year and

- - the fund's highest and lowest returns for one quarter.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ANNUAL TOTAL RETURNS
<S> <C>
Year Annual Total Return
1989 9.09%
1990 7.94%
1991 5.79%
1992 3.48%
1993 2.76%
1994 3.82%
1995 5.67%
1996 5.07%
1997 5.13%
1998 5.10%
</TABLE>

During the periods shown in the above chart, the fund's highest return for a
quarter occurred in the second quarter of 1989 at: 2.40%.

The fund's lowest return for a quarter occurred in the third quarter of 1993 at:
0.67%.

The fund's 7-day yield ending December 31, 1998 was 4.62%.

AVERAGE ANNUAL TOTAL RETURN
(FOR PERIODS ENDED 12/31/98)

<TABLE>
<CAPTION>
PERIOD BACK MONEY MARKET
<S> <C>
- -----------------------------------------------------
1 year 5.10%
5 year 4.96%
10 year 5.37%
</TABLE>

INVESTMENT STRATEGIES

The investment objective of the fund is to maximize current income while
providing stability of the value of the fund's shares and preservation of
capital. The fund intends to maintain a stable value for its shares of $10.00
per share.

The fund pursues its objective by investing in a diversified portfolio of high
quality short-term money market securities that mature within one year from date
of purchase. These money market obligations include:

- - obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities (government securities);

MM-1
<PAGE>
- - obligations (including certificates of deposit, bankers' acceptances and time
deposits) of any U.S. bank or other U.S. financial institution that is a
member of the Federal Reserve System, the Federal Deposit Insurance Corp.
(FDIC) or the Federal Savings and Loan Insurance Corp. (FSLIC), including
obligations of foreign branches of those members, and of any U.S. branch of a
foreign bank; and

- - commercial paper and other debt obligations of U.S. corporations, including
loan participation certificates.

The fund's SAI provides a more detailed description of these and other money
market securities that the fund may purchase.

The fund maintains a cumulative average portfolio maturity of no greater than 90
days. The fund follows an investment policy of purchasing money market
securities rated in one of the top two credit rating categories of a nationally
recognized statistical rating organization, or, if unrated, are judged by the
fund to be of comparable quality. ( See the General SAI Disclosure for the 11
funds for a description of the credit rating categories of two of these
entities, Moody's Investor Service, Inc. and Standard & Poor's Corp.) The fund
will invest at least 95% of its assets in (a) government securities and (b)
money market securities rated in the highest rating category, or judged by the
fund to be of comparable quality.

When selecting money market securities, the fund considers the Federal Reserve
Board's current policies and, for comparative purposes, the current yields and
maturities of various other types of short-term debt instruments. The fund then
selects individual securities based on the attractiveness of their yield and
length of maturity. As a general matter, the fund invests:

- - at most 5% of the fund's assets in the money market securities of any one
issuer, and

- - at most 25% of the fund's assets in the money market securities issued by
companies in any one industry.

These limits, however, do not apply to money market securities issued by the
U.S. Government, its agencies and instrumentalities. Banks (excluding foreign
branches of U.S. banks or U.S. branches of foreign banks) are not considered an
industry for purposes of the second limitation.

The fund intends to hold its money market securities until maturity, and to
reinvest the proceeds from maturing securities into other money market
securities. The fund may sell a security prior to maturity to provide needed
liquidity or to improve the yield or credit quality of the portfolio.

The fund also uses other investment strategies, to a lesser degree, to pursue
its investment objective. The fund's SAI describes these other investment
strategies and the risks they involve.

RISKS OF INVESTMENT STRATEGIES

Investing in the fund involves interest rate risk -- the risk that the amount of
income earned by the fund will vary with fluctuations in short-term interest
rates. Changes in the Federal Reserve Board's monetary policy may also affect
the amount of income earned by the fund, because short-term interest rates are
very sensitive to these types of policy changes. In general, you should expect
that (1) as short-term interest rates fall, the level of income generated by the
fund will also fall and (2) similarly, as short term interest rates rise, the
level of income generated by the fund will also rise.

The fund is managed with an objective of keeping the value of the fund's shares
stable at $10.00 per share. However, the value of the fund's shares is neither
insured nor guaranteed by the U.S. Government. Accordingly, there is no
guarantee that the fund will be able to maintain the value of its shares at
$10.00 per share. The fund's shares, however, are considered to be a relatively
low risk investment, because the fund only purchases high quality short-term
money market securities, and the fund's average portfolio maturity is no greater
than 90 days.

You may consider choosing the fund for investing some portion of your contract
assets (1) if you are seeking to earn current income and preserve your initial
investment, and (2) as long as you are comfortable with an investment that is
neither insured nor guaranteed by the U.S. Government.

INVESTMENT ADVISOR AND PORTFOLIO MANAGER

Jil Schoeff Lindholm of Lincoln Investment manages the fund. Ms. Lindholm has
been a Short-Term Investment Manager with Lincoln Investment since 1995. She was
a GIC Sales Executive for Lincoln Life from 1992 to 1995. Ms. Lindholm holds a
MBA from Indiana University.

MM-2
<PAGE>
LINCOLN NATIONAL
MANAGED FUND, INC.

SUMMARY DESCRIPTION OF THE FUND

The investment objective of the Managed Fund (fund) is maximum long-term total
return (capital appreciation plus income) consistent with prudent investment
strategy. The fund is a balanced fund that pursues its investment objective by
buying and holding (investing in) three categories of securities: equity
securities (stocks), fixed-income securities (debt obligations) and money market
securities. The fund's investment strategy is to vary the amount invested in
each category based on ongoing evaluations of which category provides the best
opportunity to meet the fund's investment objective.

The fund generally invests the largest amount in the stock category. This
category consists primarily of stocks of large-sized U.S. companies: companies
with market capitalizations of more than $5 billion. This category also includes
some investments in medium-sized U.S. companies (market capitalizations greater
than $1 billion but less than $5 billion) and small-sized U.S. companies (market
capitalizations less than $1 billion).

Amounts not invested in the stock category are invested in debt obligations and
money market securities. The debt obligations category primarily consists of a
diverse group of domestic debt obligations. These securities include
high-quality investment-grade bonds issued by U.S. corporations, obligations
issued or guaranteed by the U.S. Government, and securities backed by mortgages
on real estate (mortgage-backed securities). The fund also invests in
medium-grade corporate bonds. The money market securities category consists of a
diversified portfolio of high-quality short-term money market securities that
mature within one year from date of purchase. The fund may not invest more than
75% of its assets in either the stock or the debt obligations category.

The main investment risks of choosing to invest your contract assets in the fund
are as follows:

- - the value of the fund's shares will fluctuate, and you could lose money;

- - the value of the fund's shares will depend on which category of securities the
fund invests, and poor timing when selecting the size and categories of
investment could cause the value of the fund's shares to fall;

- - investing in the stocks of small and medium-sized, less mature, lesser-known
companies involves greater risks than those normally associated with investing
in the stocks of larger, more mature, well-known companies, including greater
and more rapid fluctuations in the value of these stocks, and, therefore, the
fund's shares;

- - the value of the debt obligations held by the fund -- and therefore, the value
of the fund's shares -- will fluctuate with changes in interest rates and you
could lose money (interest rate risk);

- - the value of the mortgage-backed securities held by the fund -- and therefore,
the value of the fund's shares -- may fluctuate more widely than the value of
investment-grade debt obligations in response to changes in interest rates;
and

- - the fund's investment in money market securities is neither insured nor
guaranteed by the U.S. Government.

The following information provides some indication of the risks of choosing to
invest your contract assets in the fund. The information shows:

- - changes in the fund's performance from year to year and

- - how the fund's average annual returns for one, five and ten year period
compare with those of a broad measure of market performance

M-1
<PAGE>
Please note that the past performance of the fund is not necessarily an
indication of how the fund will perform in the future. Further, the returns
shown do not reflect variable contract expenses. If reflected the returns shown
would be lower.

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
ANNUAL TOTAL RETURNS
<S> <C>
YEAR ANNUAL TOTAL RETURN
1989 16.97%
1990 3.50%
1991 21.66%
1992 3.66%
1993 11.53%
1994 -1.84%
1995 29.29%
1996 12.05%
1997 21.82%
1998 12.72%
</TABLE>

During the periods shown in the above chart, the fund's highest return for a
quarter occurred in the first quarter of 1991 at: 13.01%.

The fund's lowest return for a quarter occurred in the third quarter of 1990 at:
(-8.03%).

AVERAGE ANNUAL TOTAL RETURN
(FOR PERIODS ENDED 12/31/98)

<TABLE>
<CAPTION>
Lehman
Brothers
Government/
Corporate
Period Back Managed S&P 500* Bond Index**
<S> <C> <C> <C>
- --------------------------------------------------------------------
1 year 12.72% 28.76% 9.47%
5 year 14.32% 24.15% 7.30%
10 year 12.77% 19.22% 9.34%
</TABLE>

* The S&P 500 is the Standard & Poor's Composite Index of 500 stocks, a widely
recognized unmanaged index of common stock prices.

** The Lehman Brothers Government/Corporate Bond Index is Lehman Brothers'
index of U.S. Government and corporate bonds, a widely-recognized unmanaged
index of domestic bond prices.

The fund invests in three categories of securities. Neither of the two indices
provided in the above table matches the fund's investment strategy exactly.
Consequently, none of the indices reflects performance that is directly
comparable to the fund's performance. Nevertheless, the indices can be helpful
for comparing the fund's performance. When comparing the fund's performance to
that of the indices, you should note that the fund generally invests the largest
amount in the stock category, but may not invest more than 75% of its assets in
either the stock category or the debt obligations category.

INVESTMENT STRATEGIES

The investment objective of the fund is to maximum long-term total return
(capital gains plus income) consistent with prudent investment strategy.

The fund pursues its objective by buying and holding (investing in) three
categories of securities: equity securities (stocks), fixed-income securities
(debt obligations) and money market securities. The fund's investment strategy
is to vary the amount invested in each category based on ongoing evaluations of
which category provides the best opportunity to meet the fund's investment
objective.

The fund continuously adjusts the mix of investments among the three categories
in an effort to:

- - control the level of risk during changing economic and market conditions, and

- - take advantage of the potential for greater returns in one category versus
another.

The fund generally invests the largest amount in the stock category. The fund
invests amounts not invested in the stock category in the debt obligations and
money market categories. The fund, however, may not invest more than 75% of its
total assets in either the stock or the debt obligations category. The fund may
invest up to 100% of its assets in the money market category. The fund expects
to invest some amount in each of the three categories at all times.

The three categories are explained in the following sections.

STOCK CATEGORY

The stock category primarily holds stocks of large-sized U.S. companies:
companies with market capitalizations of more than $5 billion. (A company's
market capitalization is calculated by multiplying the total number of shares of
its common stock outstanding by the market price of the stock. As a point of
reference, as of December 31, 1998, the average market capitalization of the
Standard &Poor's 500 Composite Stock Index (S&P), a broad based market index
representative of larger, typically more financially stable companies, was $87
billion.) The stock category also includes some investments in medium-sized U.S.
companies, which have market capitalizations greater than $1 billion but less
than $5 billion, and small-sized U.S. companies, which have market
capitalizations less than $1 billion.

M-2
<PAGE>
The fund's management style for the stock category focuses on seeking growth
companies at a reasonable price by blending:

- - a "growth" oriented management style, which seeks companies with earnings
and/or revenues that are growing faster than the industry average, and

- - a "value" oriented management style, which seeks companies within an industry
with current stock prices that do not reflect the stocks' perceived true
worth.

More specifically, the fund seeks to invest in companies believed to:

- - show growth potential that significantly exceeds the average expected growth
rate of companies in the same industry, and

- - be undervalued in the market relative to the companies' industry peers.

The companies sought typically have:

- - a long history of profit growth and dividend payment, and

- - a reputation for quality management, products and service.

The fund seeks stocks of companies representing a wide selection of industries.
The fund uses the following criteria for measuring individual stock selection:
price to earnings ratio, growth of historical and forecasted earnings, and
current yield. The fund seeks to own the most attractive stocks in each
industry. The fund compares its current investments to possible new investments
on an ongoing basis. The fund replaces a current investment, if a possible new
investment appears significantly more attractive under the fund's investment
criteria.

DEBT OBLIGATIONS CATEGORY

The debt obligations category primarily holds a diverse group of domestic debt
obligations. The fund invests in significant amounts of debt obligations with
medium term maturities (5-15 years) and some debt obligations with short term
maturities (0-5 years) and long term maturities (over 15 years). (A debt
obligation's "maturity" refers to the time period remaining until the debt
obligation's issuer must repay the principal amount of the debt obligation.) The
fund will invest primarily in a combination of:

- - high-quality investment-grade corporate bonds;

- - obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities; and

- - mortgage-backed securities.

Investment-grade corporate bonds are debt obligations rated at the time of
purchase in the top four credit rating categories of Moody's Investor Service,
Inc. and Standard & Poor's Corp. (See the General SAI Disclosure for the 11
funds for a description of the credit rating categories of these two entities,
and a description of U.S. government obligations.) Investment-grade corporate
bonds include high-quality corporate bonds (top three credit-rating categories)
or medium-grade corporate bonds (fourth credit-rating category).

The fund's investment process for the debt obligations category centers on an
analysis of the behavior of the overall world economy, with a specific focus on
the U.S. economy. This analysis considers the current and anticipated levels of
inflation, unemployment, and industrial production, and possible changes in the
credit cycle and the monetary policy of the Federal Reserve Board. The fund's
process also closely monitors economic statistics such as the Leading Economic
Indicators and similar statistics for turning points in the U.S. economy and
credit conditions. Based on the results of the analysis, the fund determines an
appropriate level of interest rate risk and credit risk for the debt obligations
category of the fund. The fund then seeks to hold specific amounts of those
types of debt obligations that provide the greatest yield, yet still allow the
fund to meet the appropriate level of interest rate risk and credit risk
determined for this category.

M-3
<PAGE>
The fund selects those individual debt obligations deemed to have the best
yields in their credit rating category. The fund selects debt obligations after
giving consideration to all risk aspects of the debt obligation, including the
possibility of an increase or decrease in a credit rating, the debt obligation's
resale value, and any prepayment options. As a general matter, the fund
anticipates that on average, no more than 20% of the
fund's assets will be invested in medium-grade debt obligations.

MONEY MARKET CATEGORY

The money market category holds a diversified portfolio of high-quality
short-term money market securities that mature within one year from date of
purchase. These money market securities include:

- - obligations issued or guaranteed by the U.S. Government, its agencies or
instrumentalities;

- - obligations (including certificates of deposit, bankers' acceptances and time
deposits) of any U.S. bank or other U.S. financial institution that is a
member of the Federal Reserve System, the Federal Deposit Insurance Corp.
(FDIC) or the Federal Savings and Loan Insurance Corp. (FSLIC), including
obligations of foreign branches of those members, and of any U.S. branch of a
foreign bank; and

- - commercial paper and other debt obligations of U.S. corporations, including
loan participation certificates.

For the money market category, the fund maintains a cumulative average portfolio
maturity of no greater than 90 days. The fund follows an investment policy of
purchasing money market securities rated in one of the top two credit rating
categories of Moody's Investor Service, Inc. and Standard & Poor's Corp. (See
the General SAI Disclosure for the 11 funds for a description of the credit
rating categories of these two entities.)

The fund expects its annual portfolio turnover rate to be around 100% or less in
any year. (For example, the fund would have a rate of portfolio turnover of
100%, if the fund replaced all of its investments in one year.) Market
conditions could result in a greater degree of market activity and a portfolio
turnover rate as high as 150%. High turnover could increase fund expenses. The
fund's portfolio turnover rate was 57.36% in 1998 and 53.40% in 1997.

OTHER STRATEGIES

The fund also uses other investment strategies, to a lesser degree, to pursue
its investment objective. The fund's SAI describes these other investment
strategies and the risks they involve.

RISKS OF INVESTMENT STRATEGIES

The fund's investment strategy is to vary the amount invested among three
categories of securities. Therefore, the value of the fund's shares depends on:

- - the performance of each category, and

- - the amount of the fund's total assets invested in each category.

Accordingly, the value of the fund's shares may be affected if:

- - the securities in one of the categories do not perform as well as securities
in the other categories;

- - the fund invests large amounts in a category that does not perform as well as
the other categories; and

- - when selecting categories of investment, poor timing causes the fund to suffer
losses or miss gains generated in a specific category.

Additionally, each category of investment involves specific risks. As a general
matter, the stock category involves more risk than the debt obligations
category, and the money market category involves the least risk. Because the
fund normally invests amounts in all three categories, the overall risk of the
fund is lower than that of a fund that invests only in stocks.

Moreover, the fund invests some amounts in small- and medium-sized companies as
well as large-sized companies. The fund's performance may be affected if stocks
in one of these three groups of companies do not perform as well as stocks in
the other groups.

Further, investing in stocks of small- and medium-sized, less mature,
lesser-known companies involves greater risks than those normally associated
with larger, more mature, well-known companies. The fund runs a risk of
increased and more rapid fluctuations in the value of its

M-4
<PAGE>
stock investments. This is due to the greater business risks of small size and
limited product lines, markets, distribution channels, and financial and
managerial resources. Historically, the price of small- and medium
capitalization stocks and stocks of recently organized companies have fluctuated
more than the larger capitalization stocks included in the S&P 500. One reason
is that small and medium-sized companies have less certain prospects for growth,
a lower degree of liquidity in the markets for their stocks, and greater
sensitivity to changing economic conditions.

Investing in debt obligations primarily involves interest rate risk and credit
risk.

Interest rate risk is the risk that the value of the debt obligations held by
the fund -- and therefore, the value of the fund's shares -- will fluctuate with
changes in interest rates. As a general matter, the value of debt obligations
will fluctuate with changes in interest rates. These fluctuations can be greater
for debt obligations with longer maturities. When interest rates rise, debt
obligations decline in value, and when interest rates fall, debt obligations
increase in value. Accordingly, during periods of rising interest rates, you
could lose money investing in the fund.

Credit risk is the risk that the issuer of the debt obligation will be unable to
make interest or principal payments on time. A debt obligations' credit rating
reflects the credit risk associated with that debt obligation. Higher-rated debt
obligations involve lower credit risks than lower-rated debt obligations. The
value of the debt obligations held by the fund -- and, therefore, the value of
the fund's shares -- will fluctuate with the changes in the credit ratings of
the debt obligations held. Generally, a decrease in an issuer's credit rating
will cause the value of that issuer's outstanding debt obligations to fall. The
issuer may also have increased interest payments, as issuers with lower credit
ratings generally have to pay higher interest rates to borrow money. As a
result, the issuer's future earnings and profitability could also be negatively
affected. This could further increase the credit risks associated with that debt
obligation.

Investing in money market securities involves the risk that the amount of income
generated by the money market securities will vary with fluctuations in short-
term interest rates. Changes in the Federal Reserve Board's monetary policy may
also affect the amount of income generated by the money market securities,
because short-term interest rates are very sensitive to these types of policy
changes. In general, you should expect that (1) as short-term interest rates
fall, the level of income generated by the money market securities will also
fall and (2) similarly, as short term interest rates rise, the level income
generated by the money market securities will also rise.

The money market category attempts to keep the value of the money market
portfolio stable. However, the value of the portfolio is neither insured nor
guaranteed by the U.S. Government. The fund's money market securities, however,
are considered to be a relatively low risk investments, because the fund only
purchases high quality short-term money market securities, and the fund's
average portfolio maturity for the money market category is no greater than 90
days.

You may consider choosing this fund for investing some portion of your contract
assets if (1) you are seeking to invest in stocks, but want to lower the risks
involved by also investing in debt obligations and money market securities, and
(2) you are comfortable with a professional money manager determining the timing
and amount of the investment in each of these three categories of securities.

M-5
<PAGE>
INVESTMENT ADVISOR AND PORTFOLIO MANAGER

David C. Fischer, Vice President of Lincoln Investment, manages the process by
which the fund determines the timing and amount of the investments in each
investment category. Mr. Fischer also manages the debt obligations category of
the fund. Mr. Fischer has managed the debt obligations category of the fund
since January 1, 1998, and has been a fixed income portfolio generalist for
Lincoln Investment since 1993. From 1988-1993, Mr. Fischer led Lincoln
Investment's mortgage-backed and asset-backed trading and portfolio management
functions. Mr. Fischer holds a MBA in finance from Indiana University, and is a
Chartered Financial Analyst and Certified Public Accountant.

Vantage is responsible for the day-to-day management of the fund's stock
category of investments. Vantage, founded in 1979, is a U.S. domestic equity
manager with over $9 billion in assets under management. Vantage began managing
the fund's stock category in 1985. Enrique Chang, Vantage's Chief Investment
Officer, and Yifeng Yang and Christopher Harvey, Vice-Presidents of Vantage,
manage the stock category of the fund.

Mr. Chang oversees the management of all of Vantage's equity portfolios and
directs Vantage's quantitative research efforts. Prior to joining Vantage, Mr.
Chang was an actuary with Prudential, Director of Quantitative Analysis and
Strategy with General Reinsurance Corporation, and Senior Vice President and
Director of Quantitative Analysis with J&W Seligman. He graduated from Fairleigh
Dickinson University, and received an MBA in finance and quantitative analysis
and an MS in statistics and operations research from New York University.

Mr. Yang conducts portfolio management and research for Vantage. Prior to
joining Vantage, Mr. Yang served as Director of Quantitative Research for J. &
W. Seligman and for General Reinsurance Corporation. He graduated Tsinghua
University, Beijing, and received a Ph. D. in electronic materials and device
and an M.S. in finance, investment, and banking from the University of
Wisconsin. Mr. Harvey manages portfolios, conducts investment research and
assists in equity trading for Vantage. Prior to joining Vantage, Mr. Harvey was
a financial analyst with Merrill Lynch. He graduated Bucknell University and
received an MBA from New York University.

Jil Schoeff Lindholm of Lincoln Investment manages the money market category of
the fund. Ms. Lindholm has been a Short-Term Investment Manager with Lincoln
Investment since 1995. She was a GIC Sales Executive for Lincoln Life from 1992
to 1995. Ms. Lindholm holds an MBA from Indiana University.

M-6
<PAGE>
GENERAL PROSPECTUS DISCLOSURE -- IMPORTANT ADDITIONAL INFORMATION

This General Prospectus Disclosure is part of the Prospectus of:

Lincoln National Aggressive Growth Fund, Inc.
(Aggressive Growth)

Lincoln National Bond Fund, Inc. (Bond)

Lincoln National Capital Appreciation Fund, Inc.
(Capital Appreciation)

Lincoln National Equity-Income Fund, Inc.
(Equity-Income)

Lincoln National Global Asset Allocation Fund, Inc. (Global Asset Allocation)

Lincoln National Growth and Income Fund, Inc. (Growth and Income)

Lincoln National International Fund, Inc. (International)

Lincoln National Managed Fund, Inc. (Managed)

Lincoln National Money Market Fund, Inc.
(Money Market)

Lincoln National Social Awareness Fund, Inc.
(Social Awareness)

Lincoln National Special Opportunities Fund, Inc.
(Special Opportunities)

The following information applies to each fund, unless otherwise indicated.

NET ASSET VALUE

Each fund determines its net asset value per share (NAV) as of close of business
(currently 4:00 p.m., New York time) on the New York Stock Exchange (NYSE) on
each day the NYSE is open for trading. Each fund, except the Money Market Fund,
determines its nav by:

- - adding the values of all securities investments and other assets,

- - subtracting liabilities (including dividends payable), and

- - dividing by the number of shares outstanding.

NYSE's most recent announcement states that, as of the date of this prospectus,
the NYSE will be closed on New Year's Day, Martin Luther King Day, President's
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day,
and Christmas Day. NYSE may also be closed on other days. The NYSE may modify
its holiday schedule at any time.

A fund's securities may be traded in other markets on days when the NYSE is
closed. Therefore, the fund's NAV may fluctuate on days when you do not have
access to the fund to purchase or redeem shares.

Each fund (other than for the Money Market Fund) values its securities
investments as follows:

- - equity securities, at their last sale prices on national securities exchanges
or over-the-counter, or, in the absence of recorded sales, at the average of
readily available closing bid and asked prices on exchanges or
over-the-counter;

- - debt securities, at the price established by an independent pricing service,
which is believed to reflect the fair value of these securities; and

- - equity securities, debt securities and other assets for which market
quotations are not readily available, fair value as determined in good faith
under the authority of each fund's Board of Directors.

MONEY MARKET FUND. The Money Market Fund determines its NAV by the amortized
cost method of valuation provided by SEC Rule 2a-7 under the Investment Company
Act of 1940. Under the Rule, the fund's nav must fairly reflect market value.

See the General SAI Disclosure for the methodology that a fund (other than for
the Money Market Fund) uses to value short-term investments, options, futures
and options on futures, and foreign securities.

MANAGEMENT OF THE FUNDS

Each fund's business and affairs are managed under the direction of its Board of
Directors. The Board has the power to amend the bylaws of each fund, to declare
and pay dividends, and to exercise all the powers of the fund except those
granted to the shareholders.

INVESTMENT ADVISOR. Lincoln Investment Management, Inc. (Lincoln Investment or
advisor) is the investment advisor to each fund. Its headquarters are at 200
East Berry Street, Fort Wayne, Indiana 46802.

The advisor has registered with the SEC as an investment advisor and acted as an
investment advisor to mutual Funds for over 40 years. The advisor also acts as
(1) investment advisor to Lincoln National Convertible Securities Fund, Inc. and
Lincoln National Income Fund, Inc., closed-end investment companies, and (2)
sub-adviser to two of the series of Delaware Group Adviser Funds, Inc., an
open-end series investment company.

The advisor is a wholly-owned subsidiary of Lincoln National Corp. (LNC), a
publicly-held insurance holding

GPD-1
<PAGE>
company organized under Indiana law. LNC, through its subsidiaries, provides
life insurance and annuities, property-casualty insurance, reinsurance and
financial services.

Directors, officers and employees of the advisor and each fund may engage in
personal securities transactions, subject to restrictions and procedures of the
Code of Ethics adopted by the advisor and each fund. The restrictions and
procedures include substantially all of the recommendations of the Advisory
Group of the Investment Company Institute and comply with SEC rules and
regulations.

The advisor, either directly or through a sub-advisor, provides portfolio
management and investment advice to each fund and administers each fund's other
affairs, subject to the supervision of each fund's Board of Directors.
Some of the funds using sub-advisors have names, investment objectives and
investment policies that are very similar to certain publicly available mutual
funds that are managed by these same sub-advisors. These funds will not have the
same performance as those publicly available mutual funds. Different performance
will result from many factors, including, but not limited to, different cash
flows into and out of the funds, different fees, and different sizes.

Each fund pays the advisor a monthly fee for the advisor's services. The annual
rate of the fee is based on the average daily net asset value of each fund, as
shown in the following chart:

<TABLE>
<CAPTION>
FUND ...OF AVERAGE DAILY NET ASSET VALUE
- ----------------------------------------------------------------------------------------------------------
<S> <C>
Aggressive Growth .75 of 1% of the first $200 million; .70 of 1% of the next $200
million; .65 of 1% of the excess over $400 million
Capital Appreciation .75 of 1% of the first $500 million; .70 of 1% of the excess over
$500 million
Equity-Income .75 of 1% of the first $500 million; .70 of 1% of the excess over
$500 million
Global Asset Allocation .75 of 1% of the first $200 million; .70 of 1% of the next $200
million; and .68 of 1% of the excess over $400 million
International .90 of 1% of the first $200 million; .75 of 1% of the next $200
million; and .60 of 1% in excess over $400 million
All other funds .48 of 1% of the first $200 million; .40 of 1% of the next $200
million; and .30 of 1% in excess over $400 million
</TABLE>

- --------------------------------------------------------------------------------

1998 ADVISORY FEES
FUND 1998 RATIO OF THE ADVISOR'S COMPENSATION TO AVERAGE NET ASSETS
- ----------------------------------------------------------------------------------------------------------
<S> <C>
Aggressive Growth .73%
Bond .44
Capital Appreciation .75
Equity-Income .72
Global Asset Allocation .72
Growth & Income .31
International .79
Managed .36
Money Market .48
Social Awareness .34
Special Opportunities .36
</TABLE>

- --------------------------------------------------------------------------------

PURCHASE AND REDEMPTION OF FUND SHARES

Each fund sells its shares of common stock only to Lincoln Life. Lincoln Life
holds the fund shares in separate accounts (variable accounts) that support
various Lincoln Life variable annuity contracts and variable life insurance
contracts.

Each fund sells and redeems its shares, without charge, at their nav next
determined after Lincoln Life receives a purchase or redemption request.
However, each fund redeems its shares held by Lincoln Life for its own account
at the nav next determined after the fund receives the redemption request. The
value of shares redeemed may be more or less than original cost, depending on
the market value of a fund's securities investments at the time of redemption.

The fund normally pays for shares redeemed within seven days after Lincoln Life
receives the redemption request. However, a fund may suspend redemption or
postpone payment for any period when:

- - the NYSE closes for other than weekends and holidays;

GPD-2
<PAGE>
- - the SEC restricts trading on the NYSE;

- - the SEC determines that an emergency exists, so that a fund's (1) disposal of
investment securities, or (2) determination of net asset value, is not
reasonably practicable; or

- - The SEC permits, by order, for the protection of fund shareholders.

DISTRIBUTIONS AND FEDERAL INCOME TAX CONSIDERATIONS

Each fund's policy is to distribute substantially all of its net investment
income and net realized capital gains each year. A fund may distribute net
realized capital gains only once a year. Each fund pays these distributions to
Lincoln Life for the variable accounts. The variable accounts automatically
reinvest the distributions in additional fund shares at no charge.

Each fund has elected to be taxed as a regulated investment company under
Subchapter M of the Internal Revenue Code of 1986, as amended (the Code). The
Code relieves a regulated investment company from certain Federal income tax and
excise tax, if the company distributes substantially all of its net investment
income and net realized capital gains. See the SAI for a more complete
discussion.

Each fund must meet asset diversification requirements under Section 817(h) of
the Code and the related regulation of the United States Treasury Department.
Each fund intends to comply with these diversification requirements.

The sole shareholder of the funds is Lincoln Life. Consequently, this Appendix
does not discuss the federal income tax consequences at the shareholder level.
For information concerning the federal income tax consequences to owners of
variable annuity contracts or variable life insurance contracts (contract
owners), including the failure of a fund to meet the diversification
requirements discussed above, see the Prospectus for the variable account.

MANAGEMENT DISCUSSION OF FUND PERFORMANCE

Each fund's Annual Report includes the portfolio manager's discussion of the
fund's performance for the previous fiscal year and the factors affecting the
performance. Each fund will send you a free copy of its Annual Report on
request.

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<PAGE>
FINANCIAL HIGHLIGHTS

The financial highlights table is intended to help you understand the financial
performance of the funds for the past 5 years, or, if shorter, the period of the
fund's operations. Certain information reflects financial results for a single
fund share. The total returns in the table represent the rate that an investor
would have earned or lost on an investment in the fund (assuming reinvestment of
all dividends and distributions). This information has been audited by Ernst &
Young LLP, independent auditors, whose report, along with each fund's financial
statements, are included in the annual report, which is available upon request.

<TABLE>
<CAPTION>
INCOME (LOSS) FROM LESS DIVIDENDS
INVESTMENT OPERATIONS FROM:
RATIO
NET OF
REALIZED RATIO NET
NET AND OF INVESTMENT NET
ASSET UNREALIZED NET EXPENSES INCOME ASSETS
VALUE NET GAIN TOTAL NET ASSET TO TO AT END
BEGINNING INVESTMENT (LOSS) FROM NET REALIZED VALUE AVERAGE AVERAGE PORTFOLIO OF
PERIOD OF INCOME ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF TOTAL NET NET TURNOVER PERIOD
ENDED PERIOD (LOSS)(2) INVESTMENTS OPERATIONS INCOME INVESTMENTS DIVIDENDS PERIOD RETURN(3) ASSETS ASSETS RATE (000'S)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lincoln National Aggressive Growth Fund, Inc.
12/31/98 $16.385 0.001 (0.810) (0.809) (0.023) (2.186) (2.209) $13.367 (6.20%) 0.81% 0.01% 102.33% $335,366
12/31/97 $13.980 0.023 3.055 3.078 -- (0.673) (0.673) $16.385 23.09% 0.81% 0.16% 105.07% $342,763
12/31/96 $12.183 0.004 1.989 1.993 (0.004) (0.192) (0.196) $13.980 17.02% 0.82% 0.03% 77.51% $242,609
12/31/95 $ 9.048 0.007 3.135 3.142 (0.007) -- (0.007) $12.183 34.15% 0.94% 0.06% 85.82% $138,471
12/31/94(1) $10.000 0.019 (0.952) (0.933) (0.019) -- (0.019) $ 9.048 (9.37%) 1.11% 0.21% 100.31% $60,697
Lincoln National Bond Fund, Inc.
12/31/98 $12.861 0.662 0.494 1.156 (1.328) -- (1.328) $12.689 9.56% 0.52% 5.90% 51.33% $363,808
12/31/97 $11.766 0.785 0.310 1.095 -- -- -- $12.861 9.30% 0.53% 6.45% 56.16% $280,383
12/31/96 $12.247 0.767 (0.481) 0.286 (0.767) -- (0.767) $11.766 2.31% 0.51% 6.56% 142.19% $253,328
12/31/95 $10.941 0.803 1.306 2.109 (0.803) -- (0.803) $12.247 18.95% 0.49% 6.90% 139.61% $250,816
12/31/94 $12.693 0.741 (1.233) (0.492) (0.741) (0.519) (1.260) $10.941 (4.18%) 0.50% 6.40% 213.26% $195,010
Lincoln National Capital Appreciation Fund, Inc.
12/31/98 $17.530 (0.003) 6.127 6.124 (0.050) (1.832) (1.882) $21.772 37.96% 0.83% (0.01%) 77.99% $770,736
12/31/97 $14.504 0.050 3.510 3.560 -- (0.534) (0.534) $17.530 25.29% 0.89% 0.35% 137.07% $451,036
12/31/96 $12.916 0.135 2.051 2.186 (0.135) (0.463) (0.598) $14.504 18.02% 0.93% 0.99% 92.73% $267,242
12/31/95 $10.152 0.116 2.764 2.880 (0.116) -- (0.116) $12.916 28.69% 1.07% 1.00% 195.63% $127,936
12/31/94(1) $10.000 0.134 0.152 0.286 (0.134) -- (0.134) $10.152 2.71% 1.18% 1.33% 185.28% $52,904
Lincoln National Equity-Income Fund, Inc.
12/31/98 $20.118 0.282 2.204 2.486 (0.460) (0.429) (0.889) $21.715 12.73% 0.79% 1.40% 29.04% $991,977
12/31/97 $15.780 0.229 4.511 4.740 -- (0.402) (0.402) $20.118 30.67% 1.02% 1.46% 17.81% $811,070
12/31/96 $13.507 0.288 2.451 2.739 (0.288) (0.178) (0.466) $15.780 19.81% 1.08% 1.99% 22.17% $457,153
12/31/95 $10.335 0.275 3.218 3.493 (0.275) (0.046) (0.321) $13.507 34.74% 1.15% 2.27% 27.81% $238,771
12/31/94(1) $10.000 0.258 0.335 0.593 (0.258) -- (0.258) $10.335 5.65% 1.26% 2.48% 33.40% $78,861
Lincoln National Global Asset Allocation Fund, Inc.
12/31/98 $15.628 0.357 1.585 1.942 (0.589) (1.222) (1.811) $15.759 13.50% 0.91% 2.36% 133.84% $490,154
12/31/97 $14.226 0.383 2.205 2.588 -- (1.186) (1.186) $15.628 19.47% 0.89% 2.77% 178.40% $438,090
12/31/96 $13.391 0.392 1.522 1.914 (0.392) (0.687) (1.079) $14.226 15.04% 1.00% 2.93% 167.33% $316,051
12/31/95 $11.144 0.412 2.247 2.659 (0.412) -- (0.412) $13.391 23.95% 0.92% 3.36% 146.49% $248,772
12/31/94 $12.502 0.349 (0.702) (0.353) (0.349) (0.656) (1.005) $11.144 (1.82%) 1.06% 3.07% 134.33% $195,697
Lincoln National Growth and Income Fund, Inc.
12/31/98 $41.949 0.607 7.371 7.978 (1.164) (2.475) (3.639) $46.288 20.33% 0.35% 1.44% 33.55% $4,263,557
12/31/97 $33.110 0.649 9.331 9.980 -- (1.141) (1.141) $41.949 30.93% 0.35% 1.79% 32.09% $3,540,862
12/31/96 $29.756 0.683 4.943 5.626 (0.683) (1.589) (2.272) $33.110 18.76% 0.36% 2.23% 46.70% $2,465,224
12/31/95 $23.297 0.701 7.680 8.381 (0.701) (1.221) (1.922) $29.756 38.81% 0.35% 2.64% 51.76% $1,833,450
12/31/94 $24.693 0.668 (0.428) 0.240 (0.668) (0.968) (1.636) $23.297 1.32% 0.37% 2.85% 76.34% $1,161,324
Lincoln National International Fund, Inc.
12/31/98 $14.673 0.253 1.838 2.091 (0.189) (0.593) (0.782) $15.982 14.65% 0.93% 1.63% 123.11% $501,654
12/31/97 $14.556 0.066 0.771 0.837 -- (0.720) (0.720) $14.673 6.00% 0.93% 0.44% 77.58% $466,229
12/31/96 $13.398 0.071 1.244 1.315 (0.071) (0.086) (0.157) $14.556 9.52% 1.19% 0.51% 68.67% $440,375
12/31/95 $13.027 0.069 0.892 0.961 (0.069) (0.521) (0.590) $13.398 8.89% 1.27% 0.59% 63.15% $358,391
12/31/94 $12.642 0.033 0.385 0.418 (0.033) -- (0.033) $13.027 3.28% 1.24% 0.25% 52.78% $316,350
</TABLE>

GPD-4
<PAGE>
<TABLE>
<CAPTION>
INCOME (LOSS) FROM LESS DIVIDENDS
INVESTMENT OPERATIONS FROM:
RATIO
NET OF
REALIZED RATIO NET
NET AND OF INVESTMENT NET
ASSET UNREALIZED NET EXPENSES INCOME ASSETS
VALUE NET GAIN TOTAL NET ASSET TO TO AT END
BEGINNING INVESTMENT (LOSS) FROM NET REALIZED VALUE AVERAGE AVERAGE PORTFOLIO OF
PERIOD OF INCOME ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF TOTAL NET NET TURNOVER PERIOD
ENDED PERIOD (LOSS)(2) INVESTMENTS OPERATIONS INCOME INVESTMENTS DIVIDENDS PERIOD RETURN(3) ASSETS ASSETS RATE (000'S)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lincoln National Managed Fund, Inc.
12/31/98 $19.304 0.599 1.632 2.231 (1.162) (1.402) (2.564) $18.971 12.72% 0.42% 3.31% 57.36% $965,486
12/31/97 $16.266 0.661 2.811 3.472 -- (0.434) (0.434) $19.304 21.82% 0.42% 3.77% 53.40% $850,646
12/31/96 $15.895 0.628 1.291 1.919 (0.628) (0.920) (1.548) $16.266 12.05% 0.43% 4.05% 108.86% $675,740
12/31/95 $12.783 0.623 3.132 3.755 (0.623) (0.020) (0.643) $15.895 29.29% 0.43% 4.37% 112.52% $589,165
12/31/94 $14.152 0.628 (0.814) (0.186) (0.628) (0.555) (1.183) $12.783 (1.84%) 0.44% 4.45% 160.79% $442,140
</TABLE>

GPD-5
<PAGE>

<TABLE>
<CAPTION>
INCOME (LOSS) FROM RATIO
NET OF
REALIZED RATIO NET
NET AND OF INVESTMENT NET
ASSET INVESTMENT OPERATIONS UNREALIZED LESS DIVIDENDS NET EXPENSES INCOME ASSETS
VALUE NET GAIN TOTAL FROM: NET ASSET TO TO AT END
BEGINNING INVESTMENT (LOSS) FROM NET REALIZED VALUE AVERAGE AVERAGE PORTFOLIO OF
PERIOD OF INCOME ON INVESTMENT INVESTMENT GAIN ON TOTAL END OF TOTAL NET NET TURNOVER PERIOD
ENDED PERIOD (LOSS)(2) INVESTMENTS OPERATIONS INCOME INVESTMENTS DIVIDENDS PERIOD RETURN(3) ASSETS ASSETS RATE (000'S)
- --------------------------------------------------------------------------------------------------------------------------------
Lincoln National Money Market Fund, Inc.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/98 $10.000 0.497 N/A 0.497 (0.497 ) N/A (0.497) $10.000 5.10 % 0.58 % 4.97 % N/A $137,062
12/31/97 $10.000 0.501 N/A 0.501 (0.501) N/A (0.501) $10.000 5.13% 0.59% 5.01% N/A $89,227
12/31/96 $10.000 0.505 N/A 0.505 (0.505) N/A (0.505) $10.000 5.07% 0.57% 5.07% N/A $90,358
12/31/95 $10.000 0.570 N/A 0.570 (0.570) N/A (0.570) $10.000 5.67% 0.52% 5.67% N/A $75,319
12/31/94 $10.000 0.381 N/A 0.381 (0.381) N/A (0.381) $10.000 3.82% 0.52% 3.82% N/A $77,177
Lincoln National Social Awareness Fund, Inc.
12/31/98 $35.657 0.367 6.414 6.781 (0.672) (1.483) (2.155) $40.283 19.89% 0.38% 1.10% 37.55% $1,868,231
12/31/97 $27.316 0.364 9.447 9.811 -- (1.470) (1.470) $35.657 37.53% 0.41% 1.37% 34.84% $1,255,494
12/31/96 $22.590 0.389 5.748 6.137 (0.389) (1.022) (1.411) $27.316 28.94% 0.46% 1.58% 45.90% $636,595
12/31/95 $16.642 0.432 6.491 6.923 (0.432) (0.543) (0.975) $22.590 42.83% 0.50% 2.21% 54.02% $297,983
12/31/94 $17.915 0.377 (0.461) (0.084) (0.377) (0.812) (1.189) $16.642 0.19% 0.53% 2.22% 64.97% $163,514
Lincoln National Special Opportunities Fund, Inc.
12/31/98 $35.056 0.470 1.795 2.265 (0.862) (3.043) (3.905) $33.416 6.79% 0.42% 1.44% 76.27% $917,796
12/31/97 $29.423 0.477 7.293 7.770 -- (2.137) (2.137) $35.056 28.15% 0.42% 1.57% 73.74% $872,822
12/31/96 $27.383 0.548 3.867 4.415 (0.548) (1.827) (2.375) $29.423 16.51% 0.44% 2.00% 88.17% $648,592
12/31/95 $22.164 0.616 6.131 6.747 (0.616) (0.912) (1.528) $27.383 31.86% 0.45% 2.39% 90.12% $505,755
12/31/94 $24.478 0.565 (0.942) (0.377) (0.565) (1.372) (1.937) $22.164 (1.00%) 0.48% 2.49% 74.63% $318,417
</TABLE>

(1) The per share data, total return, ratios and portfolio turnover are
calculated for the period from commencement of investment activity on
January 3, 1994 through December 31, 1994. Accordingly, the total return,
ratios, and portfolio turnover have NOT been calculated on an annualized
basis.

(2) Per share information for the Capital Appreciation, Equity-Income, Global
Asset Allocation, and International funds for the year ended December 31,
1998 was based on the average shares outstanding method.

(3) Total return percentages in this table are calculated on the basis
prescribed by the Securities and Exchange Commission. These percentages are
based on the underlying mutual fund shares.

GENERAL INFORMATION

You should direct any inquiry to Lincoln National Life Insurance Co., at P.O.
Box 2340, Fort Wayne, Indiana 46801, or, call 1-800-4LINCOLN (454-6265).

Each fund will issue:

- - unaudited semiannual reports showing current investments and other
information; and

- - annual financial statements audited by the fund's independent auditors.

These Prospectuses do not contain all the information included in the
Registration Statements that the funds have filed with the SEC. You may examine
the Registration Statements, including exhibits, at the SEC in Washington, D.C.
Statements made in the Prospectuses about any variable annuity contract,
variable life insurance contract, or other document referred to in a contract,
are not necessarily complete. In each instance, we refer you to the copy of that
CONTRACT or other document filed as an exhibit to the related Registration
Statement. We qualify each statement in all respects by that reference.

The use of a fund by both annuity and life insurance variable accounts is called
mixed funding. Due to differences in redemption rates, tax treatment, or other
considerations, the interests of contract owners under the variable life
accounts may conflict with those of contract owners under the variable annuity
accounts. Violation of the federal tax laws by one variable account investing in
a fund could cause the contracts funded through another variable account to lose
their tax-deferred status, unless remedial action were taken. The Board of
Directors of each fund will monitor for any material conflicts and determine
what action, if any, the fund or a variable account should take.

A conflict could arise that requires a variable account to redeem a substantial
amount of assets from any of the funds. The redemption could disrupt orderly
portfolio management to the detriment of those contract owners still investing
in that fund. Also, that fund could determine that it has become so large that
its size materially impairs investment performance. The fund would then examine
its options.

Lincoln Life performs the dividend and transfer functions for each fund.

PREPARING FOR YEAR 2000

Many existing computer programs use only two digits in the date field to
identify the year. If left uncorrected these programs, which were designed and
developed without considering the impact of the upcoming change in the century,
could fail to operate or could produce

GPD-6
<PAGE>
erroneous results when processing dates after December 31, 1999. For example,
for a bond with a stated maturity date of July 1, 2000, a computer program could
read and store the maturity date as July 1, 1900. This problem is known by many
names, such as the "Year 2000 Problem", "Y2K", and the "Millenium Bug".

The Year 2000 Problem affects virtually all computer programs worldwide. It can
cause a computer system to suddenly stop operating. It can also result in a
computer corrupting vital company records, and the problem could go undetected
for a long time. The updating of fund-related computer systems is the
responsibility of Lincoln Life as part of its own year 2000 updating process.
Delaware Service Company Inc. (Delaware), which provides substantially all of
the accounting and valuation services for the funds, is responsible for updating
all its computer systems (including those which serve the funds) to accommodate
the year 2000. If Y2K problems with computer programs affecting the funds are
left unchecked they can cause such problems as share transfer errors; accounting
errors; improper instructions to the securities custodian of a fund; and
erroneous net asset values. In a worst-case scenario, this could result in a
material disruption of the operations of the funds, Lincoln Life and/or
Delaware.

However, these companies are wholly owned by Lincoln National Corporation (LNC),
which has had Year 2000 processes in place since 1996. LNC projects aggregate
expenditures in excess of $92 million for its Y2K efforts through the year 2000.
Both Lincoln Life and Delaware have dedicated Year 2000 teams and steering
committees that are answerable to their counterparts in LNC.

In light of the potential problems discussed above, Lincoln Life, as part of its
Year 2000 updating process, has assumed responsibility for correcting all
high-priority Information Technology (IT) systems which service the funds.
Delaware for its part is responsible for updating all its high-priority IT
systems to support these vital services. The Year 2000 effort, for both IT and
non-IT systems, is organized into four phases:

- - awareness-raising and inventory of all assets (including third-party agent and
vendor relationships)

- - assessment and high-level planning and strategy

- - remediation of affected systems and equipment; and

- - testing to verify Year 2000 readiness.

Both companies are currently on schedule to have their high-priority IT systems
(including those which support the funds) remediated and tested to demonstrate
readiness by June 30, 1999. During the third and fourth quarters of 1999,
additional testing of the environment will continue. Both companies are
currently on schedule to have their high-priority non-IT systems (elevators,
heating and ventilation, security systems, etc.) remediated and tested by
October 31, 1999.

The work on Year 2000 issues has not suffered significant delays; however, some
uncertainty remains. Specific factors that give rise to this uncertainty include
(but are certainly not limited to) a possible loss of technical resources to
perform the work; failure to identify all susceptible systems; and
non-compliance by third parties whose systems and operations impact Lincoln
Life. In a report dated February 26, 1999, entitled, INVESTIGATING THE IMPACT OF
THE YEAR 2000 TECHNOLOGY PROBLEM, S. Prt 106-10, the U.S. Senate Special
Committee on the Year 2000 Technology Problem expressed its concern that
"Financial services firms...are particularly vulnerable to...the risk that a
material customer or business partner will fail, as a result of the computer
problems, to meet its obligations".

One important source of uncertainty is the extent to which the key trading
partners of Lincoln Life and of Delaware will be successful in their own
remediation and testing efforts. Lincoln Life and Delaware have been monitoring
the progress of their trading partners; however, the efforts of these partners
are beyond our control.

Lincoln Life and Delaware expect to have completed their necessary remediation
and testing efforts prior to December 31, 1999. However, given the nature and
complexity of the problem, there can be no guarantee by either company that
there will not be significant computer problems after December 31, 1999.

GPD-7
<PAGE>
THIS PAGE WAS INTENTIONALLY LEFT BLANK.

GPD-8
<PAGE>
You can find additional information in each fund's Statement of Additional
Information (SAI), which is on file with the SEC. Each fund incorporates its
SAI, dated May 1, 1999, into its Prospectus. Each fund will provide a free copy
of its SAI on request.

You can find still further information about each fund's investments in the
fund's annual and semi-annual reports to shareholders. The Annual Report
discusses the market conditions and investment strategies that significantly
affected that fund's performance (except the Money Market Fund) during its last
fiscal year. Each fund will provide a free copy of its Annual and Semi-Annual
Report on request.

For an SAI or Report, either write Lincoln National Life Insurance Co., P.O. Box
2340, Fort Wayne, Indiana 46801, or call 1-800-4LINCOLN (454-6265). Also call
this number to request other information about a fund, or to make inquiries.

You can review and copy information about the funds (including the SAIs) at the
SEC's Public Reference Room in Washington, D.C. You can get information on the
operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You
can also get reports and other information about the funds on the SEC's Internet
site at http:// www.sec.gov. You can get copies of this information by writing
the SEC Public Reference Section, Washington, D.C. 20549-6009, and paying a
duplicating fee.

Fund Investment Company Act File Numbers:

<TABLE>
<S> <C> <C>
LINCOLN NATIONAL AGGRESSIVE GROWTH FUND, INC.: 33-70742; 811-8090
LINCOLN NATIONAL BOND FUND, INC.: 2-80746; 811-3210
LINCOLN NATIONAL CAPITAL APPRECIATION FUND, INC.: 33-70272; 811-8074
LINCOLN NATIONAL EQUITY-INCOME FUND, INC.: 33-71158; 811-8126
LINCOLN NATIONAL GLOBAL ASSET ALLOCATION FUND, INC.: 33-13530; 811-5115
LINCOLN NATIONAL GROWTH AND INCOME FUND, INC.: 2-80741; 811-3211
LINCOLN NATIONAL INTERNATIONAL FUND, INC.: 33-38335; 811-6233
LINCOLN NATIONAL MANAGED FUND, INC.: 2-82276; 811-3683
LINCOLN NATIONAL MONEY MARKET FUND, INC.: 2-80743; 811-3212
LINCOLN NATIONAL SOCIAL AWARENESS FUND, INC.: 33-19896; 811-5464
LINCOLN NATIONAL SPECIAL OPPORTUNITIES FUND, INC.: 2-80731; 811-3291
</TABLE>

GPD-9