August 3, 1994
PREMIER STATE MUNICIPAL BOND FUND
SUPPLEMENT TO PROSPECTUS DATED FEBRUARY 18, 1994
I. PROPOSED MERGER OF THE DREYFUS CORPORATION
The Fund's adviser, The Dreyfus Corporation ("Dreyfus"), has entered
into an Agreement and Plan of Merger providing for the merger (the
"Merger") of Dreyfus with a subsidiary of Mellon Bank, N.A. ("Mellon").
Following the Merger, it is planned that Dreyfus will be a direct
subsidiary of Mellon. Closing of the Merger is subject to a number of
contingencies, including approvals of the stockholders of Dreyfus and of
Mellon. The Merger is expected to occur in late August 1994, but could
occur significantly later.
The Merger will result in the automatic termination of the Fund's
current investment advisory agreement with Dreyfus, as required by the
Investment Company Act of 1940, as amended. The Merger also will
necessitate implementation of a new Distribution Plan.
II. RESULTS OF FUND SHAREHOLDER VOTE
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY
CONTRARY INFORMATION CONTAINED IN THE FUND'S PROSPECTUS.
On August 3, 1994, the shareholders of each Series of the Fund voted to
(a) approve (i) a new investment advisory agreement with Dreyfus, and (ii)
a new Distribution Plan with respect to Class B, each to become effective
upon consummation of the Merger, and (b) change certain of such Series'
fundamental policies and investment restrictions to permit the Series to
(i) borrow money to the extent permitted under the Investment Company
Act of 1940, as amended, and (ii) pledge its assets to the extent
necessary to secure permitted borrowings and make such policy non-
fundamental.
III. REVISED MANAGEMENT POLICIES
THE FOLLOWING INFORMATION SUPPLEMENTS AND SHOULD BE READ IN
CONJUNCTION WITH THE SECTION IN THE FUND'S PROSPECTUS ENTITLED
"DESCRIPTION OF THE FUND -- MANAGEMENT POLICIES."
BORROWING MONEY -- As a fundamental policy, each Series is permitted
to borrow to the extent permitted under the Investment Company Act of
1940, as amended. However, each Series currently intends to borrow
money only for temporary or emergency (not leveraging) purposes, in an
amount up to 15% of the value of such Series' total assets (including the
amount borrowed) valued at the lesser of cost or market, less liabilities
(not including the amount borrowed) at the time the borrowing is made.
While borrowings exceed 5% of such Series' total assets, the Series will
not make any additional investments.
IV. OTHER MATTERS
THE FOLLOWING INFORMATION SUPERSEDES ANY CONTRARY INFORMATION
CONTAINED IN THE SECTION OF THE FUND'S PROSPECTUS ENTITLED
"MANAGEMENT OF THE FUND."
Joseph P. Darcy is the primary investment officer for each of the
Michigan, Minnesota and Ohio Series. Mr. Darcy has been employed by
Dreyfus since May 1994. For more than five years prior to joining Dreyfus
Mr. Darcy was a Vice President and Portfolio Manager for Merrill Lynch
Asset Management.
COMMENCING AUGUST 8, 1994, THE FOLLOWING INFORMATION REPLACES
AND SUPERSEDES THAT CONTAINED IN THE FIRST PARAGRAPH IN THE
SECTION OF THE FUND'S PROSPECTUS ENTITLED "HOW TO BUY FUND SHARES
- -- CLASS A SHARES."
(CONTINUED ON REVERSE SIDE)
The public offering price for Class A shares is the net asset value per
share of that Class plus a sales load as shown below:
<TABLE>
<CAPTION>
As a % of As a % of Dealers' Reallowance
offering price net asset value as a % of
Amount of Transaction per share per share offering price
<S> <C> <C> <C>
Less than $50,000 4.50 4.70 4.25
$50,000 to less than $100,000 4.00 4.20 3.75
$100,000 to less than $250,000 3.00 3.10 2.75
$250,000 to less than $500,000 2.50 2.60 2.25
$500,000 to less than $1,000,000 2.00 2.00 1.75
</TABLE>
There is no initial sales charge on purchases of $1,000,000 or more of
Class A shares. If you purchase Class A shares without an initial sales
charge as part of an investment of at least $1,000,000 and redeem those
shares within two years after purchase, a CDSC of 1.00% will be imposed
at the time of redemption. The terms contained in the section of the
Fund's Prospectus entitled "How to Redeem Fund Shares -- Contingent
Deferred Sales Charge -- Class B" (other than the amount of the CDSC and
its time periods) are applicable to Class A shares subject to a CDSC.
Letter of Intent and Right of Accumulation apply to such purchases of
Class A shares. Dreyfus Service Corporation compensates certain Service
Agents for selling such Class A shares at the time of purchase from
Dreyfus Service Corporation's own assets. The proceeds of the CDSC and
the distribution fee, in part, are used to defray any such expenses.
COMMENCING AUGUST 8, 1994, THE FOLLOWING INFORMATION SUPPLEMENTS
AND SHOULD BE READ IN CONJUNCTION WITH THE SECTION OF THE FUND'S
PROSPECTUS ENTITLED "HOW TO REDEEM FUND SHARES -- CHECK
REDEMPTION PRIVILEGE -- CLASS A."
The Check Redemption Privilege shall be applicable to Class A shares
subject to a CDSC with certain additional conditions. Your account will be
charged the CDSC applicable to the amount payable under each Redemption
Check you write. The Fund may return unpaid a Redemption Check that
would draw your account balance below the amount of such check and the
applicable CDSC and you may be subject to additional charges.
COMMENCING AUGUST 8, 1994, THE FOLLOWING INFORMATION SUPPLEMENTS
AND SHOULD BE READ IN CONJUNCTION WITH THE SECTION IN THE FUND'S
PROSPECTUS ENTITLED "HOW TO REDEEM FUND SHARES -- REINVESTMENT
PRIVILEGE -- CLASS A SHARES."
The Reinvestment Privilege applies to only Class A shares that are not
subject to a CDSC.
THE FOLLOWING INFORMATION MODIFIES CERTAIN INFORMATION IN THE
SECTIONS OF THE PROSPECTUS ENTITLED "SHAREHOLDER SERVICES --
EXCHANGE PRIVILEGE" AND "SHAREHOLDER SERVICES -- AUTO-EXCHANGE
PRIVILEGE."
Investors also may exchange their Fund shares subject to a CDSC for
shares of Dreyfus Worldwide Dollar Money Market Fund, Inc. The shares so
purchased will be held in a special account created solely for this purpose
(the "Exchange Account"). Exchanges of shares from an Exchange Account
only can be made into certain other funds managed or administered by
Dreyfus. No CDSC is charged when an investor exchanges into an Exchange
Account; however, the applicable CDSC will be imposed when shares are
redeemed from an Exchange Account or other applicable fund account. Upon
redemption, the applicable CDSC will be calculated without regard to the
time such shares were held in an Exchange Account. See "How to Redeem
Fund Shares." In addition to the limited Exchange and Auto-Exchange
Privileges noted herein, Exchange Account shares are eligible for the
Dividend Sweep Privilege and the Automatic Withdrawal Plan, and may
receive redemption proceeds only by Federal wire or by check.
PSTEBFstkr080394
August 3, 1994
PREMIER STATE MUNICIPAL BOND FUND
Supplement to Statement of Additional Information
Date February 18, 1994
At a meeting of Fund shareholders held on August 3, 1994, the
shareholders of each Fund Series of the Fund approved new Investment
Restrictions which supersede and replace the Fund's current Investment
Restrictions numbered 2 and 3 in the section in the Fund's Statement of
Additional Information entitled "Investment Objective and Management
Policies--Investment Restrictions." New Investment Restriction number 2
is a fundamental policy. This restriction cannot be changed as to a
Series without approval by the holders of a majority (as defined in the
Investment Company Act of 1940, as amended (the "Act")) of such Series'
outstanding voting shares. New Investment Restriction number 3 is not a
fundamental policy and may be changed by vote of a majority of the Fund's
Board members at any time. No Series may:
2. Borrow money, except to the extent permitted under the Act.
Transactions in futures and options and the entry into short sales
transactions do not involve any borrowing for purposes of this
restriction.
3. Pledge, mortgage, hypothecate or otherwise encumber its assets,
except to the extent necessary to secure permitted borrowings. The
deposit of assets in escrow in connection with the writing of covered put
and call options and the purchase of securities on a when-issued or
delayed-delivery basis and collateral arrangements with respect to initial
or variation margin for futures contracts and options on futures contracts
or indexes will not be deemed to be a pledge of assets.
____________________
The following information modifies certain information in the
sections of the Fund's Statement of Additional Information entitled
"Shareholder Services--Exchange Privilege" and "Shareholder Services --
Auto-Exchange Privilege."
Investors also may exchange their Fund shares subject to a CDSC for
shares of Dreyfus Worldwide Dollar Money Market Fund, Inc. The shares so
purchased will be held in a special amount created solely for this purpose
(the "Exchange Account"). Exchanges of shares from an Exchange Account
only can be made into certain other funds managed or administered by The
Dreyfus Corporation. No CDSC is charged when an investor exchanges into
an Exchange Account; however, the applicable CDSC will be imposed when
shares redeemed are redeemed from an Exchange Account or other applicable
fund account. Upon redemption, the applicable CDSC will be calculated
without regard to the time such shares were held in an Exchange Account.
See "How to Redeem Fund Shares" in the Fund's Prospectus. In addition to
the limited Exchange and Auto-Exchange Privileges noted herein, Exchange
Account shares are eligible for the Dividend Sweep Privilege and the
Automatic Withdrawal Plan, and may receive redemption proceeds only by
Federal wire or by check.
____________________
The following information supplements and should be read in
conjunction with the section of the Fund's Statement of Additional
Information entitled "Shareholder Services."
Dividend ACH. Dividend ACH permits a shareholder to transfer
electronically their dividends or dividends and capital gains, if any,
from the Fund to a designated bank account. Only an account maintained at
a domestic financial institution which is an Automated Clearing House
member may be so designated. Banks may charge a fee for this service.
For more information concerning Dividend ACH, or to request a Dividend
Options form, please call toll free 1-800-645-6561. You may cancel this
privilege by mailing written notification to Premier State Municipal Bond
Fund, P.O. Box 6587, Providence, Rhode Island 02940-6587. Enrollment or
cancellation is effective three business days following receipt. This
privilege is available only for existing accounts. The Fund may modify or
terminate this privilege at any time or charge a service fee. No such fee
is currently contemplated.
