FLAGSHIP ADMIRAL FUNDS INC.
Flagship Limited Term U.S. Government Fund
Flagship Intermediate U.S. Government Fund
Supplement dated July 10, 1996
to the Prospectus dated October 26, 1995
as supplemented January 2, 1996
Following the resignation, effective August 31, 1996, of
Flagship Financial Inc., investment advisor to Flagship
Limited Term U.S. Government Fund and Flagship Intermedi-
ate U.S. Government Fund (the "Funds"), the Board of
Directors has voted not to replace the investment advisor
and to cease publicly offering the Funds.