Filed pursuant to Rule 497(e)
1933 Act Registration No. 33-61834
1933 Act Registration No. 2-66885
1933 Act Registration No. 33-40496
1933 Act Registration No. 2-39560
1933 Act Registration No. 2-84589
SUPPLEMENT DATED SEPTEMBER 30, 1998
TO THE JOINT PROSPECTUS DATED AUGUST 1, 1998
OF
IAI GROWTH FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS II, INC.)
IAI REGIONAL FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS IV, INC.)
IAI CAPITAL APPRECIATION FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS VI, INC.)
IAI EMERGING GROWTH FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS VI, INC.)
IAI MIDCAP GROWTH FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS VI, INC.)
IAI GROWTH AND INCOME FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS VII, INC.)
IAI VALUE FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS VIII, INC.)
The following replaces the disclosure on page 37 concerning the
management of Fund investments in restricted securities:
Roy Gillson and Curt McLeod have been responsible for Fund investments in
restricted securities, including equity and limited partnership interests in
privately-held companies and investment partnerships, since September 1998. Mr.
Gillson is IAI's Chief Executive Officer and Chief Investment Officer and has
been employed by IAI's affiliate, IAI International Ltd., since 1983. Mr. McLeod
is an IAI Vice President and equity portfolio manager. Prior to joining IAI in
1997, Mr. McLeod had been a portfolio manager with Piper Jaffray, Inc. since
1986.
