April 24, 1998
THE DREYFUS/LAUREL TAX-FREE
MUNICIPAL FUNDS _
DREYFUS PREMIER LIMITED TERM
CALIFORNIA MUNICIPAL FUND
DREYFUS PREMIER LIMITED TERM
MASSACHUSETTS MUNICIPAL FUND
DREYFUS PREMIER LIMITED TERM
NEW YORK MUNICIPAL FUND
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 1, 1997
At a meeting of the Board of Trustees of The Dreyfus/Laurel Tax-Free
Municipal Funds (the "Trust") held on April 23, 1998, the Board approved,
subject to shareholder approval, an Agreement and Plan of Reorganization (the
"Plan") between each of the Dreyfus Premier Limited Term California Municipal
Fund and the Dreyfus Premier Limited Term New York Municipal Fund
(individually, an "Acquired Fund;" collectively, the "Acquired Funds") and
the Dreyfus Premier Limited Term Municipal Fund (the "Acquiring Fund"), each
a separate series of the Trust. The Plan, as it relates to each Acquired
Fund, provides for the transfer of assets of the Acquired Fund to the
Acquiring Fund, in a tax free exchange for shares of beneficial interest of
the Acquiring Fund and the assumption by the Acquiring Fund of liabilities of
the Acquired Fund, the distribution of shares of the Acquiring Fund to
Acquired Fund shareholders and the subsequent termination of the Acquired
Fund (the "Reorganization").
It is currently contemplated that shareholders of each Acquired Fund
will be asked to approve the Plan on behalf of the applicable Acquired Fund
at a special joint meeting of shareholders to be held on or about September
15, 1998. If the Plan is approved, the Reorganization will become effective
on or about September 30, 1998. In anticipation of the Reorganization,
effective immediately, each Acquired Fund will be closed to any investments
for new accounts and effective on or about August 31, 1998, each Acquired
Fund will be closed to any investments in any accounts. In addition,
effective immediately, the front-end sales load is eliminated for purchases
of each Acquired Fund's Class A shares for existing accounts and the
contingent deferred sales charge, as applicable to each Acquired Fund's share
classes, is eliminated with respect to any shareholder redemption or exchange
into another Dreyfus-managed fund prior to the consummation of the
Reorganization.
A Proxy Statement/Prospectus with respect to the proposed
Reorganization will be mailed prior to the meeting to holders of record of
shares of each Acquired Fund on the record date (on or about June 19, 1998).
The Proxy Statement/Prospectus will describe the Acquiring Fund and other
matters. Investors may obtain a free copy of the Prospectus of the Acquiring
Fund by calling 1-800-554-4611.
EFFECTIVE JANUARY 15, 1998, THE FOLLOWING POLICIES ARE IN EFFECT FOR
EACH FUND:
ADDITIONAL INFORMATION ABOUT PURCHASES, EXCHANGES AND REDEMPTIONS.
Each Fund is intended to be a long-term investment vehicle and is not
designed to provide investors with a means of specu
(CONTINUED ON REVERSE SIDE)
lation on short-term market movements. A pattern of frequent purchases and
exchanges can be disruptive to efficient portfolio management and,
consequently, can be detrimental to a Fund's performance and its
shareholders. Accordingly, if a Fund's management determines that an investor
is engaged in excessive trading, the Fund, with or without prior notice, may
temporarily or permanently terminate the availability of Fund exchanges, or
reject in whole or part any purchase or exchange request, with respect to
such investor's account. Such investors also may be barred from purchasing
other funds in the Dreyfus Family of Funds. Generally, an investor who makes
more than four exchanges out of a Fund during any calendar year (for calendar
year 1998, beginning on January 15th) or who makes exchanges that appear to
coincide with an active market-timing strategy may be deemed to be engaged in
excessive trading. Accounts under common ownership or control will be
considered as one account for purposes of determining a pattern of excessive
trading. In addition, each Fund may refuse or restrict purchase or exchange
requests by any person or group if, in the judgment of the Fund's management,
the Fund would be unable to invest the money effectively in accordance with
its investment objective and policies or could otherwise be adversely
affected or if the Fund receives or anticipates receiving simultaneous orders
that may significantly affect the Fund (E.G., amounts equal to 1% or more of
the Fund's total assets). If an exchange request is refused, a Fund will take
no other action with respect to the shares until it receives further
instructions from the investor. Each Fund may delay forwarding redemption
proceeds for up to seven days if the investor redeeming shares is engaged in
excessive trading or if the amount of the redemption request otherwise would
be disruptive to efficient portfolio management or would adversely affect the
Fund. Each Fund's policy on excessive trading applies to investors who invest
in the Fund directly or through financial intermediaries, but does not apply
to the Dreyfus Auto-Exchange Privilege, or to any automatic investment or
withdrawal privilege described herein.
During times of drastic economic or market conditions, each Fund may
suspend the Exchange Privilege temporarily without notice and treat exchange
requests based on their separate components _ redemption orders with a
simultaneous request to purchase the other fund's shares. In such a case, the
redemption request would be processed at a Fund's next determined net asset
value but the purchase order would be effective only at the net asset value
next determined after the fund being purchased receives the proceeds of the
redemption, which may result in the purchase being delayed.
LTSTs0498
