SMITH BARNEY SECTOR SERIES INC.
on behalf of
SMITH BARNEY NATURAL RESOURCES FUND
Supplement dated September 14, 2000
to Prospectus dated February 14, 2000
On September 12, 2000 the Board of Directors of Smith
Barney Sector Series Inc, on behalf of Smith Barney
Natural Resources Fund (the "Natural Resources Fund"),
approved a proposed reorganization pursuant to which
Smith Barney Fundamental Value Fund Inc. (the
"Fundamental Value Fund") would acquire the assets and
assume the stated liabilities of the Natural Resources
Fund in exchange for shares of the Fundamental Value
Fund. This reorganization will allow Natural
Resources Fund shareholders to maintain an investment
in a fund with a substantially similar investment
objective, substantially similar investment policies
and the same portfolio manager.
Under the terms of the proposed reorganization Natural
Resources Fund shareholders would receive shares of
the Fundamental Value Fund equal in value to their
investment in the Natural Resources Fund in accordance
with the terms of the reorganization. Natural
Resources Fund shareholders would not be charged a
sales load when Fundamental Value Fund shares are
issued to them and it is anticipated that no gain or
loss for Federal income tax purposes would be
recognized by shareholders as a result of the
reorganization.
As of October 6, 2000 Salomon Smith Barney Inc. will
no longer be accepting investments into the Natural
Resources Fund.
The proposed reorganization is subject to the
fulfillment of certain conditions, including approval
by the shareholders of the Natural Resources Fund.
Proxy materials describing the proposed reorganization
will be mailed to Natural Resources Fund shareholders
of record on October 13, 2000, on or about October 23,
2000, in anticipation of a meeting of the shareholders
expected to be held in November 22, 2000. If approved
by Natural Resources Fund shareholders at that time,
the reorganization will occur as soon after the
shareholder meeting as practicable.
FD 02025
