<PAGE>
MITCHELL HUTCHINS SERIES TRUST
BALANCED PORTFOLIO
SUPPLEMENT TO THE PROSPECTUS DATED MAY 1, 1998,
AS AMENDED AUGUST 5, 1998
February 25, 1999
Dear Investor,
This is a supplement to the Prospectus of Mitchell Hutchins Series Trust
("Trust") that describes several changes of which investors should be aware.
BALANCED PORTFOLIO
- ------------------
The fourth sentence in the first paragraph describing the Balanced
Portfolio on page MH 16 of the Trust's prospectus is replaced by the
following:
The Portfolio may invest up to 10% of its assets in bonds and
other securities, including convertible securities, rated below
investment grade but at least B by S&P or Moody's comparably
rated by another NRSRO or determined by Mitchell Hutchins to be of
comparable quality.
