<PAGE>
GROWTH FUND
EMERGING GROWTH FUND
SMALL COMPANY GROWTH FUND
SERIES OF PIPER FUNDS INC.
Supplement dated December 23, 1996 to
Prospectus dated November 25, 1996
SPECIAL OFFERING PERIOD EXTENDED
The Special Offering Period referred to on page 2 and discussed in detail
on page 20 of the Prospectus has been extended through February 14, 1997.
AGGREGATION
As discussed on page 21 of the Prospectus under "Reducing Your Sales
Charge--Aggregation," initial sales charges on Fund shares may be reduced or
eliminated by aggregating your purchase with purchases of certain related
personal accounts. These accounts previously included the accounts of any of
your children who were under the age of 21. You may now include the accounts of
any of your children, regardless of age.
30202
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GROWTH AND INCOME FUND
BALANCED FUND
SERIES OF PIPER FUNDS INC.
Supplement dated December 23, 1996 to
Prospectus dated November 25, 1996
SPECIAL OFFERING PERIOD EXTENDED
The Special Offering Period referred to on page 2 and discussed in detail
on page 21 of the Prospectus has been extended through February 14, 1997.
AGGREGATION
As discussed on page 22 of the Prospectus under "Reducing Your Sales
Charge--Aggregation," initial sales charges on Fund shares may be reduced or
eliminated by aggregating your purchase with purchases of certain related
personal accounts. These accounts previously included the accounts of any of
your children who were under the age of 21. You may now include the accounts of
any of your children, regardless of age.
30302
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GOVERNMENT INCOME FUND
INTERMEDIATE BOND FUND
ADJUSTABLE RATE MORTGAGE SECURITIES FUND
Supplement dated December 23, 1996 to
Prospectus dated November 6, 1996
SPECIAL OFFERING PERIOD EXTENDED
The Special Offering Period referred to on page 2 and discussed in detail
on page 29 of the Prospectus has been extended through February 14, 1997.
AGGREGATION
As discussed on page 31 of the Prospectus under "Reducing Your Sales
Charge--Aggregation," initial sales charges on Fund shares may be reduced or
eliminated by aggregating your purchase with purchases of certain related
personal accounts. These accounts previously included the accounts of any of
your children who were under the age of 21. You may now include the accounts of
any of your children, regardless of age.
30402
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NATIONAL TAX-EXEMPT FUND
MINNESOTA TAX-EXEMPT FUND
SERIES OF PIPER FUNDS INC.
Supplement dated December 23, 1996 to
Prospectus dated November 27, 1996
SPECIAL OFFERING PERIOD EXTENDED
The Special Offering Period referred to on page 2 and discussed in detail
on page 19 of the Prospectus has been extended through February 14, 1997.
AGGREGATION
As discussed on page 21 of the Prospectus under "Reducing Your Sales
Charge--Aggregation," initial sales charges on Fund shares may be reduced or
eliminated by aggregating your purchase with purchases of certain related
personal accounts. These accounts previously included the accounts of any of
your children who were under the age of 21. You may now include the accounts of
any of your children, regardless of age.
30502
