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T. ROWE PRICE
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California Tax-Free Income Trust
California Tax-Free Money Fund
Supplement to prospectus dated July 1, 1998
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Effective March 1, 1999, the footnote to Table 3 on page 3 of the Prospectus
will be revised with the following to reflect the extension of the fund's
expense ratio limitation:
<TABLE>
Table 3 Expense Ratio Limitation
<CAPTION>
<S> <C> <C> <C> <C>
Expense Ratio
Fund Limitation Period Limitation Reimbursement Date
Money/a/ 3/1/99-2/28/01 0.55% 2/28/03
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</TABLE>
/a/
To limit the fund's expenses, T. Rowe Price previously 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 0.55%.
The first agreement was from March 1, 1995 to February 28, 1997; and the
second agreement from March 1, 1997 to February 28, 1999. Subject to
shareholder approval, fees waived or expenses paid or assumed under these
agreements are subject to reimbursement to T. Rowe Price by the fund
whenever the expense ratio is below 0.55%; however, no reimbursement will be
made after February 28, 1999 (for the first agreement), or February 28, 2001
(for the second agreement), or if it would result in the expense ratio
exceeding 0.55%. Any amounts reimbursed will have the effect of increasing
fees otherwise paid by the fund.
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The date of this supplement is March 1, 1999.
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C05-041 3/1/99
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