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T. ROWE PRICE
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SHORT-TERM BOND FUND, INC.
Supplement to Prospectus dated October 1, 1994, revised to
January 3, 1995
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Effective January 3, 1995, the paragraph entitled Portfolio
Management on page 13 of the Prospectus in the section entitled
"The Fund's Organization and Management", will be replaced with
the following paragraph:
Portfolio Management. The fund has an Investment Advisory
Committee composed of the following members: Edward A.
Wiese, Chairman, Robert P. Campbell, Christy M. DePietro,
and Thomas E. Tewksbury. The Committee Chairman has day-to-
day responsibility for managing the fund and works with the
Committee in developing and executing the fund's investment
program. Mr. Wiese has been Chairman of the Committee since
1995. He joined T. Rowe Price in 1984 and has been managing
investments since 1985.
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The date of this Supplement is January 13, 1995.
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