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T. ROWE PRICE
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State Tax-Free Income Trust
Georgia Tax-Free Bond Fund
Supplement to prospectus dated July 1, 1998
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Effective March 1, 1999, the footnote to Table 1 on page 2 of the Prospectus
will be revised with the following to reflect the extension of the fund's
expense ratio limitation:
/a /To limit the fund's expenses, T. Rowe Price has entered into several
agreements with the fund to waive its fees and bear any expenses that would
cause the fund's ratio of expenses to average net assets to exceed 0.65%. The
first agreement was from March 1, 1995 to February 28, 1997; the second from
March 1, 1997 to February 28, 1999 and the third from March 1, 1999 to
February 28, 2001. Fees waived or expenses paid or assumed under these
agreements 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, 1999 (for the first agreement), February 28, 2001
(for the second agreement), or February 28, 2003 (for the third agreement),
or if it would result in the expense ratio exceeding 0.65%. Any amounts
reimbursed will have the effect of increasing fees otherwise paid by the
fund. Without this expense limitation, it is estimated that the fund's
management fee and total expense ratio would have been 0.42% and 0.83%,
respectively.
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The date of this supplement is March 1, 1999.
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F92-041 3/1/99
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