NEUBERGER BERMAN
INCOME FUNDS(REGISTERED)
Supplement to the Prospectus dated March 2, 1998
The sixth and seventh paragraphs under the section entitled "Management and
Administration -- Investment Manager, Administrator, Distributor, and
Sub-Adviser" (pages 43-44) are revised to read as follows:
Neuberger Berman LIMITED MATURITY Bond Portfolio -- Catherine
Waterworth is co-manager of the Portfolio. Ms. Waterworth has been primarily
responsible for Neuberger Berman LIMITED MATURITY Bond Portfolio and has been a
Portfolio Manager in the Fixed Income Group since December 1998. From June 1995
to August 1998 she was a Managing Director, High Grade Fixed Income, for TCW
Group, Inc.; previously, she was a senior officer at Continental Asset
Management Co.
Neuberger Berman HIGH YIELD Bond Portfolio -- This Portfolio is managed
by a team. The portfolio management team includes: Theodore P. Giuliano, Miriam
Zussman and Susan Stang. Miriam Zussman, who has been a Director of Credit
Research for Neuberger Berman since January 1996, was previously Vice President
of credit research at another financial institution from February 1994 to
January 1996, and a Director of corporate finance at another institution from
October 1988 to February 1994. Susan Stang, who has performed high-grade and
high-yield research for Neuberger Berman since May 1996, was a Vice President
for high yield and distressed research for another major financial institution
from March 1995 to March 1996, and an associate for high-grade research at
another financial institution between October 1992 to March 1995.
The date of this Supplement is December 18, 1998.
