<PAGE>
DRINKER BIDDLE & REATH LLP
Philadelphia National Bank Building
1345 Chestnut Street
Philadelphia, PA 19107-3496
February 5, 1998
VIA EDGAR TRANSMISSION
- ----------------------
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, DC 20549
Re: Excelsior Funds, Inc.
Registration Nos. 2-92665; 811-4088
-----------------------------------
Ladies and Gentlemen:
Pursuant to Rule 497(e) of the Securities Act of 1933, as
amended, transmitted herewith for filing on behalf of the above-referenced
company are (i) the Supplement dated February 5, 1998 to the Prospectus dated
August 1, 1997 with respect to the Small Cap Fund; and (ii) the Supplement
dated February 5, 1998 to the Prospectus dated August 1, 1997 with respect to
the Pacific/Asia Fund.
Should you have any questions, please call me at
(215) 988-2670.
Very truly yours,
/s/ Daniel A. Moonay
Daniel A. Moonay
cc: W. Bruce McConnel, III
Michael P. Malloy
<PAGE>
EXCELSIOR FUNDS, INC.
SMALL CAP FUND
Supplement dated February 5, 1998
to Prospectus dated August 1, 1997
Effective as of December 31, 1997, the following replaces the seventh
paragraph under the caption "Management of the Funds -- Investment Adviser" in
the Prospectus:
The Small Cap Fund's portfolio co-managers are John J.
Knox and Kenneth R. Marcus. Mr. Knox, a Vice President and
Portfolio Manager of the Personal Investment Division of
U.S. Trust, has been with U.S. Trust since June 1996 and has
managed the Fund since December 1997. Prior to joining U.S.
Trust, Mr. Knox was a portfolio manager within the Greenwich
Street Advisors division of Smith Barney, Inc. Mr. Marcus,
an Assistant Vice President and Portfolio Manager of U.S.
Trust's Personal Investment Division, has been with U.S.
Trust since June 1996 and has managed the Fund since
December 1997. Mr. Marcus was previously with J.P. Morgan
Securities, where he was an Associate in the Fixed Income
Trading Division from 1992 to 1996.
<PAGE>
EXCELSIOR FUNDS, INC.
(the "Company")
PACIFIC/ASIA FUND
Supplement dated February 5, 1998
to Prospectus dated August 1, 1997
At a Special Meeting of the Company's Board of Directors on January
9, 1998, the Board approved the elimination of the Pacific/Asia Fund's
non-fundamental investment policy limiting such Fund's investments in the
securities of Japanese issuers to less than 20% of its total assets. From time
to time, the Fund may invest more than 25% of its assets in the securities of
Japanese issuers. Therefore, market developments within Japan could
significantly impact the performance of the Fund.
