SCUDDER [LOGO]
Scudder Variable Life Investment Fund
Money Market Portfolio
Bond Portfolio
Balanced Portfolio
Growth and Income Portfolio
Capital Growth Portfolio
Global Discovery Portfolio
International Portfolio
Supplement to Prospectus
Dated May 1, 1998
On December 22, 1997, Zurich Insurance Company ("Zurich") entered into an
agreement with B.A.T Industries p.l.c. ("B.A.T") pursuant to which the financial
services businesses of B.A.T will be combined with Zurich's businesses
(including Zurich's 70% interest in Scudder Kemper Investments, Inc. ("Scudder
Kemper")) to form a new global insurance and financial services company known as
Zurich Financial Services Group. After the transaction is completed, by way of a
dual holding company structure, current Zurich shareholders will own
approximately 57% of the new organization, with the balance owned by B.A.T's
current shareholders.
The transaction is expected to close in the third quarter of 1998. Upon
consummation of the transaction, each Portfolio's investment advisory agreement
with Scudder Kemper will be deemed to have been assigned and, therefore, will
terminate. The Board has approved new investment advisory agreements with
Scudder Kemper, which are substantially identical to the current investment
advisory agreements, except for the dates of execution and termination and, as
applicable, the addition, in certain cases, of breakpoints in the fee structure.
Each new investment advisory agreement is to become effective upon the
termination of the current investment advisory agreements. The Board will seek
shareholder approval of the new investment advisory agreements through a proxy
solicitation that is currently scheduled to conclude in mid-December.
August 28, 1998
