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T. ROWE PRICE
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STATE TAX-FREE INCOME TRUST
Maryland Short-Term Tax-Free Bond Fund
Supplement to Prospectus dated July 1, 1996
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The following sentences will be added at the end of the footnotes
in Table 1 under "Transaction and Fund Expenses" on page 2 of the
prospectus.
Effective March 1, 1997, T. Rowe Price agreed to extend the
existing expense limitation of 0.65% for a period of two
years from March 1, 1997 through February 28, 1999. Fees
waived or expenses paid or assumed under this agreement are
subject to reimbursement to T. Rowe Price by the Fund
whenever the Fund's expense ratio is below 0.65%; however,
no reimbursement will be made after February 28, 2001, or if
it would result in the expense ratio exceeding 0.65%.
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The date of this supplement is February 27, 1997.
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