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Supplement dated December 23, 1998 to
the Statement of Additional Information dated March 1, 1998
of Flag Investors International Fund, Inc.
The Statement of Additional Information dated March 1, 1998 of Flag
Investors International Fund, Inc. (the "Fund") is hereby amended and
supplemented by the following:
THE EURO
On January 1, 1999, eleven countries of the European Economic and
Monetary Union (EMU) will begin implementing a plan to replace their national
currencies with a new currency, the euro. Full conversion to the euro is slated
to occur by July 1, 2002.
Although it is impossible to predict the impact of the conversion to
the euro on the Fund, the risks may include:
o changes in the relative strength and value of the U.S. dollar or
other major currencies;
o adverse effects on the business or financial condition of
European issuers that the Fund holds in its portfolio;
o that the systems used to purchase and sell securities may not
work;
o uncertainty about how existing financial contracts will be
treated after euro implementation; and
o unpredictable effects on trade and commerce generally.
These and other factors could increase volatility in financial markets
worldwide and could adversely affect the value of securities held by the Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
INTLSAISUP
(12/98)
