CAPSTONE GROWTH FUND, INC.
Supplement Dated May 12, 1998
to
Prospectus Dated March 2, 1998
as Supplemented March 11, 1998
The "Management of the Fund" section of the prospectus (page 10) has been
revised to reflect a change in personnel:
Dan E. Watson, Ph.D. has been appointed as President and Portfolio Manager
of Capstone Growth Fund, Inc. effective immediately.
Dr. Watson began his career in 1971 at Texas Commerce Bank with planning
responsibilities for the company's life insurance operations. In 1977 he
joined Tenneco, Inc. and was subsequently named Assistant to the Chairman of
the Board. In 1981 he helped form Tenneco Financial Services, the predecessor
organization to Capstone Financial Services, Inc., the parent company of the
Adviser and Distributor.
