SUPPLEMENT NO. 1 DATED AUGUST 31, 1996
TO
PROSPECTUS DATED FEBRUARY 1, 1996
FOR
STATE STREET RESEARCH SMALL CAPITALIZATION GROWTH FUND
A SERIES OF STATE STREET RESEARCH CAPITAL TRUST
PURCHASE OF SHARES--ALTERNATIVE PURCHASE
PROGRAM--GENERAL
Immediately after the third sentence of the last paragraph under the above
caption at page 11 of the Prospectus, the following is added:
"The Distributor may also compensate brokers for maintaining investments
over a period of years."
PURCHASE OF SHARES--ALTERNATIVE PURCHASE
PROGRAM--CLASS C SHARES--INSTITUTIONAL;
NO SALES CHARGE
Under the above caption at page 14 of the Prospectus, the second and third
paragraphs are deleted, and the following is inserted in their place:
"In general, Class C shares are only available for new investments by
certain large institutions, and employee benefit plans which acquire shares
through programs or products sponsored by Metropolitan Life Insurance Company
("Metropolitan") and/or its affiliates, for which Class C shares have been
designated. Information on the availability of Class C shares and further
conditions and limitations is available from the Distributor."
SHAREHOLDER SERVICES--EXCHANGE PRIVILEGE
Immediately following the first paragraph under the above caption at page 19
of the Prospectus, the following is inserted:
"Shares of the Fund may also be acquired or redeemed in exchange for
shares of the Summit Cash Reserves Fund ("Summit Cash Reserves") by customers
of Merrill Lynch, Pierce, Fenner & Smith Incorporated (subject to completion
of steps necessary to implement the program). The Fund and Summit Cash
Reserves are related mutual funds for purposes of investment and investor
services. Upon the acquisition of shares of Summit Cash Reserves by exchange
for redeemed shares of the Fund, (a) no sales charge is imposed by Summit
Cash Reserves, (b) no contingent deferred sales charge is imposed by the Fund
on the Fund shares redeemed, and (c) any applicable holding period of the
Fund shares redeemed is "tolled," that is, the holding period clock stops
running pending further transactions. Upon the acquisition of shares of the
Fund by exchange for redeemed shares of Summit Cash Reserves, (a) the
acquisition of Class A shares shall be subject to the initial sales charges
or contingent deferred sales charges applicable to an initial investment in
such Class A shares, unless a prior Class A sales charge has been paid
indirectly, and (b) the acquisition of Class B or Class D shares of the Fund
shall restart any holding period previously tolled, or shall be subject to
the contingent deferred sales charge applicable to an initial investment in
such shares."
MANAGEMENT OF THE FUND
Under the above caption at page 23 of the Prospectus, the sixth paragraph is
revised in its entirety as follows:
"The Fund is managed by Jesus A. Cabrera. Mr. Cabrera has managed the Fund
since August 1996. His principal occupation currently is Vice President of
State Street Research & Management Company. During the past five years he has
also served as a Vice President and co-portfolio manager at First Chicago
Investment Management Company and as an analyst at Kemper Financial Services
and First National Bank of Chicago."
CONTROL NUMBER: 3298-960730(0297)SSR-LD SCG-482E-896IBS
