FOUNDERS FUNDS, INC.
SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1997
FOUNDERS SPECIAL FUND
The section of the Funds' prospectus entitled "The Funds and Their Management
Founders Special Fund" is hereby amended on page 16 by deleting the paragraph
concerning John B. Jares (who no longer is associated with Founders), and
replacing that paragraph with the following:
Michael K. Haines, Senior Vice President of Investments. Mr. Haines has
been with Founders since 1985, serving as an assistant portfolio manager,
and as lead portfolio manager for Founders Frontier Fund since 1990. He
also has served as co-lead portfolio manager for Founders Special Fund
since May 1997, after having previously served in that capacity from July
to December 1996. Mr. Haines served as the portfolio or co-portfolio
manager of Founders Discovery Fund from 1989 until July 1995. A graduate
of The Colorado College, Mr. Haines received an MBA from the University of
Denver.
The date of this Supplement is May 13, 1997.
