PENN SERIES FUNDS, INC.
600 Dresher Road, Horsham, PA 19044
Telephone 215-956-8000
Supplement Dated January 1, 1997
To
Prospectus Dated May 1, 1996
The sixth and seventh paragraphs under the caption "OpCap"
on page 25 of the prospectus are amended to read as follows:
The Small Capitalization Fund is managed by Timothy
McCormack, Timothy Curro and Gavin Albert. Timothy McCormack
has been a portfolio manager of the Fund since March 1996.
Timothy Curro and Gavin Albert became portfolio managers of the
Fund on January 1, 1997. Mr. Curro has been a Vice President of
Oppenheimer Capital since November 1996. Prior thereto, he was
a general partner of Value Holdings, L.P., an investment
partnership, from May 1995 to November 1996, a Vice President in
the equity research department at UBS Securities Inc. from June
1994 through May 1995 and from January 1991 through February
1993 and was a partner with Omega Advisors, Inc. from March 1993
to March 1994. Mr. Albert, vice President of Oppenheimer
Capital since December 1996, joined the firm in September 1994
as a research analyst. Prior thereto he was a management
consultant for EDS Energy Management in 1994 and a financial
analyst in the Corporate Finance department of Texaco, Inc. from
1990 to 1992. Mr. McCormack, Vice President of Oppenheimer
Capital, joined the firm in 1994. From 1993 to 1994 he was a
security analyst at U.S. Trust Company and prior thereto he was
a securities analyst at Gabelli & Company.
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