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<PAGE> Neuberger & Berman Income Funds Supplement to the Prospectus dated March 1, 1996 Effective November 1, 1996, the sub-adviser reorganized as a limited liability company known as Neuberger & Berman, LLC. All persons described in the prospectus and SAI as partners of Neuberger & Berman, L.P. are principals of the new company. The date of this Supplement is November 1, 1996. <PAGE>
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