SCUDDER
INVESTMENTS(SM)
[LOGO]
Supplement to the currently effective Prospectus of each of the listed funds:
<TABLE>
<CAPTION>
<S> <C>
Scudder Corporate Bond Fund Scudder Massachusetts Limited Term Tax Free Fund
Scudder GNMA Fund Scudder Micro Cap Fund
Scudder International Bond Fund Scudder Ohio Tax Free Fund
Scudder International Growth and Income Fund Scudder Tax Managed Growth Fund
Scudder Limited Term Tax Free Fund Scudder Tax Managed Small Company Fund
</TABLE>
On February 7, 2000, the applicable Board of each of the above-mentioned funds
(identified in the table below under the heading "Acquired Fund") approved an
Agreement and Plan of Reorganization (the "Plan") between each Fund and the
corresponding Acquiring Fund identified in the chart below. The proposed
transaction is part of Scudder Kemper's initiative to restructure and streamline
the management and operations of the funds it manages.
The Plan applicable to each Fund, except for Scudder International Bond Fund and
Scudder International Growth and Income Fund, provides for the transfer of
substantially all of the assets and the assumption of all of the liabilities of
the Fund solely in exchange for voting shares of the corresponding Acquiring
Fund. Following the exchange, the Fund will distribute shares of the
corresponding Acquiring Fund to the Fund's shareholders as part of the Fund's
cessation of operations as provided for in the Plan. With respect to Scudder
International Bond Fund and Scudder International Growth and Income Fund, the
Plan provides that the voting shares of such Funds will be reclassified into
voting shares of the corresponding Acquiring Fund and, accordingly, the
corresponding Acquiring Fund will acquire all of the assets and assume all of
the liabilities of the Fund (the transactions contemplated by the Plan are
referred to as the "Reorganization").
Each Reorganization can be consummated only if, among other things, it is
approved by a majority vote of shareholders of the applicable Fund. A Special
Meeting (the "Meeting") of the shareholders of each Fund will be held on or
about July 13, 2000 and shareholders will be given the opportunity to vote on
the Plan and any other applicable matters affecting the Fund at that time. In
connection with the Meeting, each Fund will be filing with the Securities and
Exchange Commission and delivering to its shareholders: (i) a Proxy Statement
describing in detail the Reorganization and the Board's considerations in
recommending that shareholders approve the Reorganization, and (ii) a Prospectus
for the Acquiring Fund.
If the Plan for a Fund is approved at the Meeting and certain conditions
required by the Plan are satisfied, the Reorganization is expected to become
effective at 9:00 a.m. eastern standard time on or about the appropriate
Proposed Reorganization Date identified in the chart below. If shareholder
approval of a Plan is delayed due to failure to obtain a quorum or otherwise,
the applicable Reorganization will become effective as soon as practicable after
the receipt of shareholder approval.
In the event the shareholders of a Fund fail to approve the Plan for that Fund,
the Fund will continue to operate and the Fund's Board may resubmit the Plan for
shareholder approval or consider other proposals.
<TABLE>
<CAPTION>
Acquired Fund Acquiring Fund Proposed Reorganization Date
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<S> <C> <C>
Scudder Corporate Bond Fund Scudder Income Fund July 31, 2000
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Scudder GNMA Fund AARP GNMA and U.S. Treasury Fund July 17, 2000
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Scudder International Bond Fund Scudder Global Bond Fund September 25, 2000
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Scudder International Growth and Income Fund Scudder International Fund August 28, 2000
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Scudder Limited Term Tax Free Fund Scudder Medium Term Tax Free Fund July 31, 2000
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Scudder Massachusetts Limited Term Tax Free Fund Scudder Massachusetts Tax Free Fund July 31, 2000
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Scudder Micro Cap Fund AARP Small Company Stock Fund July 17, 2000
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Scudder Ohio Tax Free Fund Scudder Managed Municipal Bonds July 31, 2000
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Scudder Tax Managed Growth Fund Scudder Select 500 Fund August 28, 2000
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Scudder Tax Managed Small Company Fund Scudder Small Company Value Fund August 28, 2000
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</TABLE>
February 8, 2000
