August 24, 1994
DREYFUS MUNICIPAL BOND FUND, INC.
Supplement to Prospectus dated December 29, 1993
The following anticipated changes have occurred:
I. CONSUMMATION OF THE MERGER
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
On this date, the previously announced merger between The Dreyfus
Corporation ("Dreyfus") and a subsidiary of Mellon Bank Corporation ("Mellon")
was completed, and as a result, Dreyfus now is a wholly-owned subsidiary of
Mellon Bank, N.A. instead of a publicly-owned corporation.
Mellon is a publicly owned multibank holding company incorporated under
Pennsylvania law in 1971 and registered under the Federal Bank Holding Company
Act of 1956, as amended. Mellon provides a comprehensive range of financial
products and services in domestic and selected international markets. Mellon
is among the twenty-five largest bank holding companies in the United States
based on total assets. Mellon's principal wholly-owned subsidiaries are
Mellon Bank, N.A., Mellon Bank (DE) National Association, Mellon Bank (MD),
The Boston Company, Inc., AFCO Credit Corporation and a number of companies
known as Mellon Financial Services Corporations. Through its subsidiaries,
Mellon managed more than $130 billion in assets as of July 31, 1994, including
approximately $6 billion in mutual fund assets. As of June 30, 1994, various
subsidiaries of Mellon provided non-investment services, such as custodial or
administration services, for approximately $747 billion in assets, including
approximately $97 billion in mutual fund assets.
II. NEW DISTRIBUTOR
The following information supersedes and replaces any contrary
information contained in the Fund's Prospectus and specifically in the section
entitled "How to Buy Fund Shares."
The Fund's distributor is Premier Mutual Fund Services, Inc. (the
"Distributor"), located at One Exchange Place, Boston, Massachusetts 02109.
The Distributor is a wholly-owned subsidiary of Institutional Administration
Services, Inc., a provider of mutual fund administration services, the parent
company of which is Boston Institutional Group, Inc.
Accordingly, references in the Prospectus to Dreyfus Service Corporation
as the Fund's distributor should be substituted with Premier Mutual Fund
Services, Inc.
III. RESULTS OF FUND SHAREHOLDER VOTE
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
On August 4, 1994, the Fund's shareholders voted to (a) approve a new
investment advisory agreement with Dreyfus which became effective upon
consummation of the merger between Dreyfus and a subsidiary of Mellon and (b)
change certain of the Fund's fundamental policies and investment restrictions
to permit the Fund to (i) borrow money to the extent permitted under the
Investment Company Act of 1940, as amended and (ii) pledge its assets to the
extent necessary to secure permitted borrowings.
IV. REVISED MANAGEMENT POLICIES
The following information supplements and supersedes any contrary
information contained in the Fund's Prospectus.
Borrowing Money -- As a fundamental policy, the Fund is permitted to
borrow to the extent permitted under the Investment Company Act of 1940.
However, the Fund currently intends to borrow money only for temporary or
emergency (not leveraging) purposes, in an amount up to 15% of the value
of the Fund's total assets (including the amount borrowed) valued at the
lesser of cost or market, less liabilities (not including the amount borrowed)
at the time the borrowing is made. While borrowings exceed 5% of the Fund's
total assets, the Fund will not make any additional investments.
