SUPPLEMENT TO THE
NORTH CAROLINA CAPITAL MANAGEMENT TRUST'S AUGUST 18, 1998 PROSPECTUS
The following information replaces similar information found in the
"Investment Principles and Risks" section beginning on page P-9.
CASH PORTFOLIO invests only in those instruments that are
authorized for investment by units of local government as specified in
North Carolina General Statute 159-30 (the Statute), as amended from
time to time, and in 20 North Carolina Administrative Code 3.0703 (the
Code). Cash Portfolio invests only in high-quality U.S.
dollar-denominated money market instruments that are rated in the
highest rating category by a nationally recognized rating service,
U.S. Government securities and repurchase agreements. Cash Portfolio
generally intends to maintain a dollar-weighted average maturity of 60
days or less.
