DREYFUS SHORT INTERMEDIATE MUNICIPAL BOND FUND, 497, 1994-08-05

DREYFUS SHORT INTERMEDIATE MUNICIPAL BOND FUND
497, 1994-08-05

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August 1, 1994
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
SUPPLEMENT TO PROSPECTUS DATED AUGUST 1, 1994
The following information supplements and should be read in conjunction
with the section of the Fund's Prospectus entitled "Management of the Fund."
The Fund's manager, The Dreyfus Corporation ("Dreyfus"), has entered into
an Agreement and Plan of Merger (the "Merger Agreement") providing for the
merger of Dreyfus with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that Dreyfus will be a direct
subsidiary of Mellon Bank, N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the stockholders of Dreyfus and of Mellon. The merger is
expected to occur in August 1994, but could occur significantly later.
As a result of regulatory requirements and the terms of the Merger
Agreement, Dreyfus will seek various approvals from the Fund's
shareholders before completion of the merger. Proxy materials, approved
by the Fund's Board, recently have been mail ed to Fund shareholders.
591/stkr080194

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PROSPECTUS AUGUST 1, 1994
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND

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DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND (THE "FUND") IS
AN OPEN-END, NON-DIVERSIFIED, MANAGEMENT INVESTMENT COMPANY,
KNOWN AS A NO-LOAD MUNICIPAL BOND FUND. ITS GOAL IS TO PROVIDE YOU
WITH AS HIGH A LEVEL OF CURRENT INCOME EXEMPT FROM FEDERAL INCOME
TAX AS IS CONSISTENT WITH THE PRESERVATION OF CAPITAL. UNDER
NORMAL MARKET CONDITIONS, THE FUND INVESTS PRIMARILY IN TAX EXEMPT
MUNICIPAL OBLIGATIONS WITH REMAINING MATURITIES OF FIVE YEARS OR
LESS AND MAINTAINS A DOLLAR-WEIGHTED AVERAGE PORTFOLIO MATURITY
OF TWO TO THREE YEARS.

YOU CAN INVEST, REINVEST OR REDEEM SHARES AT ANY TIME WITHOUT
CHARGE OR PENALTY IMPOSED BY THE FUND.
THE FUND PROVIDES FREE REDEMPTION CHECKS, WHICH YOU CAN USE IN
AMOUNTS OF $500 OR MORE FOR CASH OR TO PAY BILLS. YOU CONTINUE TO
EARN INCOME ON THE AMOUNT OF THE CHECK UNTIL IT CLEARS. YOU CAN
PURCHASE OR REDEEM SHARES BY TELEPHONE USING DREYFUS
TELETRANSFER.
THE DREYFUS CORPORATION PROFESSIONALLY MANAGES THE FUND'S
PORTFOLIO.
THE FUND BEARS CERTAIN COSTS OF ADVERTISING, ADMINISTRATION
AND/OR DISTRIBUTION PURSUANT TO A PLAN ADOPTED IN ACCORDANCE
WITH RULE 12B-1 UNDER THE INVESTMENT COMPANY ACT OF 1940.
THIS PROSPECTUS SETS FORTH CONCISELY INFORMATION ABOUT THE
FUND THAT YOU SHOULD KNOW BEFORE INVESTING. IT SHOULD BE READ AND
RETAINED FOR FUTURE REFERENCE.
PART B (ALSO KNOWN AS THE STATEMENT OF ADDITIONAL INFORMATION),
DATED AUGUST 1, 1994, WHICH MAY BE REVISED FROM TIME TO TIME,
PROVIDES A FURTHER DISCUSSION OF CERTAIN AREAS IN THIS PROSPECTUS
AND OTHER MATTERS WHICH MAY BE OF INTEREST TO SOME INVESTORS. IT
HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND IS
INCORPORATED HEREIN BY REFERENCE. FOR A FREE COPY, WRITE TO THE
FUND AT 144 GLENN CURTISS BOULEVARD, UNIONDALE, NEW YORK 11556-
0144, OR CALL 1-800-645-6561. WHEN TELEPHONING, ASK FOR OPERATOR
666.

MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY
THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE
BOARD, OR ANY OTHER AGENCY. THE NET ASSET VALUE OF FUNDS OF THIS
TYPE WILL FLUCTUATE FROM TIME TO TIME.

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TABLE OF CONTENTS
PAGE

ANNUAL FUND OPERATING EXPENSES.......................... 2
CONDENSED FINANCIAL INFORMATION......................... 2
DESCRIPTION OF THE FUND................................. 3
MANAGEMENT OF THE FUND.................................. 11
HOW TO BUY FUND SHARES.................................. 11
SHAREHOLDER SERVICES.................................... 13
HOW TO REDEEM FUND SHARES............................... 16
SERVICE PLAN............................................ 18
DIVIDENDS, DISTRIBUTIONS AND TAXES...................... 20
PERFORMANCE INFORMATION................................. 21
GENERAL INFORMATION..................................... 22

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THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
- --------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
(as a percentage of average daily net assets)

Management Fees....................................... .50%
12b-1 Fees............................................ .10%
Other Expenses........................................ .14%
Total Fund Operating Expenses......................... .74%

EXAMPLE: 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
You would pay the following expenses on
a $1,000 investment, assuming (1) 5%
annual return and (2) redemption at the
end of each time period: $8 $24 $41 $92

</TABLE>

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THE AMOUNTS LISTED IN THE EXAMPLE SHOULD NOT BE CONSIDERED AS
REPRESENTATIVE OF PAST OR FUTURE EXPENSES AND ACTUAL EXPENSES
MAY BE GREATER OR LESS THAN THOSE INDICATED. MOREOVER, WHILE THE
EXAMPLE ASSUMES A 5% ANNUAL RETURN, THE FUND'S ACTUAL
PERFORMANCE WILL VARY AND MAY RESULT IN AN ACTUAL RETURN GREATER
OR LESS THAN 5%.
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The purpose of the foregoing table is to assist you in understanding the
various costs and expenses borne by the Fund, and therefore indirectly by
investors, the payment of which will reduce investors' return on an annual
basis. Long-term investors could pay more in 12b-1 fees than the
economic equivalent of paying a front-end sales charge. The information in
the foregoing table does not reflect any fee waivers or expense
reimbursement arrangements that may be in effect. Certain Service
Agents (as defined below) may charge their clients direct fees for
effecting transactions in Fund shares; such fees are not reflected in the
foregoing table. See "Management of the Fund," "How to Buy Fund Shares"
and "Service Plan."
CONDENSED FINANCIAL INFORMATION
The information in the following table has been audited by Ernst &
Young LLP, the Fund's independent auditors, whose report thereon appears
in the Statement of Additional Information. Further financial data and
related notes are included in the Statement of Additional Information,
available upon request.
FINANCIAL HIGHLIGHTS

Contained below is per share operating performance data for a share of
beneficial interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each year indicated. This
information has been derived from information provided in the Fund's
financial statements.

YEAR ENDED MARCH 31,
1988(1) 1989 1990 1991 1992 1993 1994
PER SHARE DATA:
-------- ------ ------- ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year....... $12.50 $12.63 $12.42 $12.52 $12.63 $12.85 $13.21
------- ------ ------ ------- ------ ------- ------
INVESTMENT OPERATIONS:
Investment income_net.................... .66 .75 .79 .76 .70 .63 .58
Net realized and unrealized gain
(loss) on investments................... .13 (.21) .10 .11 .22 .38 (.18)
------- ------ ------ ------- ------ ------- ------
TOTAL FROM INVESTMENT OPERATIONS........ .79 .54 .89 .87 .92 1.01 .40
------- ------ ------ ------- ------ ------- ------
DISTRIBUTIONS:
Dividends from investment income_net...... (.66) (.75) (.79) (.76) (.70) (.63) (.58)
Dividends from net realized gain
on investments........................... __ __ __ __ __ (.02) (.01)
Dividends from excess net realized gain
on investments........................... __ __ __ __ __ __ __
------- ------ ------ ------- ------ ------- ------
TOTAL DISTRIBUTIONS...................... (.66) (.75) (.79) (.76) (.70) (.65) (.59)
------- ------ ------ ------- ------ ------- ------
Net asset value, end of year.............. $12.63 $12.42 $12.52 $12.63 $12.85 $13.21 $13.02
====== ====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN 7.05%(2) 4.41% 7.32% 7.16% 7.50% 8.04% 3.05%
RATIOS / SUPPLEMENTAL DATA:
Ratio of expenses to average net assets.... __ .43% .50% .59% .72% .75% .74%
Ratio of net investment income to
average net assets......................... 5.81%(2) 6.01% 6.29% 6.07% 5.42% 4.76% 4.35%
Decrease reflected in above expense ratios due to undertakings
by The Dreyfus Corporation................. 1.28%(2) .64% .49% .26% .07% __ __
Portfolio Turnover Rate..................... 62.77%(3) 126.06% 100.44% 66.53% 63.83% 31.80% 34.68%
Net Assets, end of year (000's omitted)..... $47,016 $60,451 $63,770 $76,734 $187,972 $386,464 $598,274
- ---------------------

</TABLE>

(1)From April 30, 1987 (commencement of operations) to March 31, 1988.
(2)Annualized.
(3)Not annualized.
Page 2

Further information about the Fund's performance is contained in the
Fund's annual report, which may be obtained without charge by writing to
the address or calling the number set forth on the cover page of this
Prospectus.
DESCRIPTION OF THE FUND

INVESTMENT OBJECTIVE - The Fund's goal is to provide you with as high a
level of current income exempt from Federal income tax as is consistent
with the preservation of capital. To accomplish this goal, the Fund invests
primarily in Municipal Obligations (described below). The Fund's
investment objective cannot be changed without approval by the holders of
a majority (as defined in the Investment Company Act of 1940) of the
Fund's outstanding voting shares. There can be no assurance that the
Fund's investment objective will be achieved.
MUNICIPAL OBLIGATIONS - Municipal Obligations are debt obligations
issued by states, territories and possessions of the United States and the
District of Columbia and their political subdivisions, agencies and
instrumentalities, or multistate agencies or authorities, the interest
from which is, in the opinion of bond counsel to the issuer, exempt from
Federal income tax. Municipal Obligations generally include debt
obligations issued to obtain funds for various public purposes as well as
certain industrial development bonds issued by or on behalf of public
authorities. Municipal Obligations are classified as general obligation
bonds, revenue bonds and notes. General obligation bonds are secured by
the issuer's pledge of its faith, credit and taxing power for the payment of
principal and interest. Revenue bonds are payable from the revenue derived
from a particular facility or class of facilities or, in some cases, from
the proceeds of a special excise or other specific revenue source, but not
from the general taxing power. Tax exempt industrial development bonds,
in most cases, are revenue bonds that generally do not carry the pledge of
the credit of the issuing municipality, but generally are guaranteed by the
corporate entity on whose behalf they are issued. Notes are short-term
instruments which are obligations of the issuing municipalities or
agencies and are sold in anticipation of a bond sale, collection of taxes or
receipt of other revenues. Municipal Obligations include municipal
lease/purchase agreements which are similar to installment purchase
contracts for property or equipment issued by municipalities. Municipal
Obligations bear fixed, floating or variable rates of interest, which are
determined in some instances by formulas under which the Municipal
Obligation's interest rate will change directly or inversely to changes in
interest rates or an index, or multiples thereof, in many cases subject to
a maximum and minimum. Certain Municipal Obligations are subject to
redemption at a date earlier than their stated maturity pursuant to call
options, which may be separated from the related Municipal Obligation and
purchased and sold separately.

MANAGEMENT POLICIES - It is a fundamental policy of the Fund that it will
invest at least 80% of the value of its net assets (except when
maintaining a temporary defensive position) in Municipal Obligations. At
least 65% of the Fund's net assets (except when maintaining a temporary
defensive position) will be invested in bonds and debentures. Municipal
Obligations will be purchased by the Fund only if rated at least A, MIG-
2/VMIG-2 or Prime-2 (P-2) by Moody's Investors Service, Inc. ("Moody's"),
at least A, SP-l or A-2 by Standard & Poor's Corporation ("S&P") or at
least A or F-2 by Fitch Investors Service, Inc. ("Fitch"). If a security is
not rated or is subject to some external agreement (such as a letter of
credit from a bank) which was not considered when the security was
rated, The Dreyfus Corporation must have determined that the security is
of comparable quality to those rated securities in which the Fund may
invest. The Fund also may enter into municipal bond index futures
contracts and related options, as described below. Options and futures trans-
actions involve so-called "derivative securities." Under normal market
conditions, the Fund invests in Municipal Obligations with remaining
maturities of five years or less and maintains a dollar-weighted average
portfolio maturity of two to three years.

Page 3
The Fund may invest more than 25% of the value of its total assets in
Municipal Obligations which are related in such a way that an economic,
business or political development or change affecting one such security
also would affect the other securities; for example, securities the
interest upon which is paid from revenues of similar types of projects, or
securities whose issuers are located in the same state. As a result, the
Fund may be subject to greater risk as compared to a fund that does not
follow this practice.

From time to time, the Fund may invest more than 25% of the value of
its total assets in industrial development bonds which, although issued by
industrial development authorities, may be backed only by the assets and
revenues of the non-governmental users. Interest on Municipal Obligations
(including certain industrial development bonds) which are specified
private activity bonds, as defined in the Internal Revenue Code of 1986, as
amended (the "Code"), issued after August 7, 1986, while exempt from
Federal income tax, is a preference item for the purpose of the alternative
minimum tax. Where a regulated investment company receives such
interest, a proportionate share of any exempt-interest dividend paid by
the investment company may be treated as such a preference item to
shareholders. The Fund may invest without limitation in such Municipal
Obligations if The Dreyfus Corporation determines that their purchase is
consistent with the Fund's investment objective.

The Fund may purchase floating and variable rate demand notes and
bonds, which are tax exempt obligations ordinarily having stated
maturities in excess of one year, but which permit the holder to demand
payment of principal at any time or at specified intervals. Variable rate
demand notes include master demand notes which are obligations that
permit the Fund to invest fluctuating amounts, which may change daily
without penalty, pursuant to direct arrangements between the Fund, as
lender, and the borrower. The interest rates on these obligations fluctuate
from time to time. Frequently, such obligations are secured by letters of
credit or other credit support arrangements provided by banks. Use of
letters of credit or other credit support arrangements will not adversely
affect the tax exempt status of these obligations. Because these
obligations are direct lending arrangements between the lender and
borrower, it is not contemplated that such instruments generally will be
traded, and there generally is no established secondary market for these
obligations, although they are redeemable at face value. Accordingly,
where these obligations are not secured by letters of credit or other
credit support arrangements, the Fund's right to redeem is dependent on
the ability of the borrower to pay principal and interest on demand. Each
obligation purchased by the Fund will meet the quality criteria
established for the purchase of Municipal Obligations. The Dreyfus
Corporation, on behalf of the Fund, will consider on an ongoing basis the
creditworthiness of the issuers of the floating and variable rate demand
obligations in the Fund's portfolio. The Fund will not invest more than 15%
of the value of its net assets in floating or variable rate demand
obligations as to which the Fund cannot exercise the demand feature on
not more than seven days' notice if there is no secondary market available
for these obligations, and in other illiquid securities.

The Fund may purchase from financial institutions participation
interests in Municipal Obligations (such as industrial development bonds
and municipal lease/purchase agreements). A participation interest gives
the Fund an undivided interest in the Municipal Obligation in the proportion
that the Fund's participation interest bears to the total principal amount
of the Municipal Obligation. These instruments may have fixed, floating or
variable rates of interest. If the participation interest is unrated or has
been given a rating below that which otherwise is permissible for
purchase by the Fund, the participation interest will be backed by an
irrevocable letter of credit or guarantee of a bank that the Board of
Trustees has determined meets the prescribed quality standards for banks
set forth below, or the payment obligation otherwise will be
collateralized by U.S. Government securities. For certain participation
interests, the Fund will have the right to demand payment, on not more
than seven days' notice, for all or any part of the Fund's participation
interest in the Municipal Obligation, plus accrued interest. As to these
instruments, the Fund intends to exercise its right to demand payment
only upon a default under
Page 4
the terms of the Municipal Obligation, as needed
to provide liquidity to meet redemptions, or to maintain or improve the
quality of the Fund's investment portfolio. The Fund will not invest more
than 15% of the value of its net assets in participation interests that do
not have this demand feature if there is no secondary market available for
these instruments, and in other illiquid securities.

The Fund may purchase custodial receipts representing the right to
receive certain future principal and interest payments on Municipal
Obligations which underlie the custodial receipts. A number of different
arrangements are possible. In a typical custodial receipt arrangement, an
issuer or a third party owner of Municipal Obligations deposits such
obligations with a custodian in exchange for two classes of custodial
receipts. The two classes have different characteristics, but, in each
case, payments on the two classes are based on payments received on the
underlying Municipal Obligations. One class has the characteristics of a
typical auction rate security, where at specified intervals its interest
rate is adjusted, and ownership changes, based on an auction mechanism.
This class's interest rate generally is expected to be below the coupon
rate of the underlying Municipal Obligations and generally is at a level
comparable to that of a Municipal Obligation of similar quality and having
a maturity equal to the period between interest rate adjustments. The
second class bears interest at a rate that exceeds the interest rate
typically borne by a security of comparable quality and maturity; this rate
also is adjusted, but in this case inversely to changes in the rate of
interest of the first class. If the interest rate on the first class exceeds
the coupon rate of the underlying Municipal Obligations, its interest rate
will exceed the rate paid on the second class. In no event will the
aggregate interest paid with respect to the two classes exceed the
interest paid by the underlying Municipal Obligations. The value of the
second class and similar securities should be expected to fluctuate more
than the value of a Municipal Obligation of comparable quality and
maturity and their purchase by the Fund should increase the volatility of
its net asset value and, thus, its price per share. These custodial receipts
are sold in private placements. The Fund also may purchase directly from
issuers, and not in a private placement, Municipal Obligations having
characteristics similar to custodial receipts. These securities may be
issued as part of a multi-class offering and the interest rate of certain
classes may be subject to a cap or a floor.

The Fund may invest up to 15% of the value of its net assets in
securities as to which a liquid trading market does not exist, provided
such investments are consistent with the Fund's investment objective.
Such securities may include securities that are not readily marketable,
such as certain securities that are subject to legal or contractual
restrictions on resale, and repurchase agreements providing for
settlement in more than seven days after notice. As to these securities,
the Fund is subject to a risk that should the Fund desire to sell them when
a ready buyer is not available at a price that the Fund deems
representative of their value, the value of the Fund's net assets could be
adversely affected. However, if a substantial market of qualified
institutional buyers develops pursuant to Rule 144A under the Securities
Act of 1933, as amended, for certain of these securities held by the Fund,
the Fund intends to treat such securities as liquid securities in
accordance with procedures approved by the Fund's Board of Trustees.
Because it is not possible to predict with assurance how the market for
restricted securities pursuant to Rule 144A will develop, the Fund's Board
of Trustees has directed The Dreyfus Corporation to monitor carefully the
Fund's investments in such securities with particular regard to trading
activity, availability of reliable price information and other relevant
information. To the extent that for a period of time, qualified
institutional buyers cease purchasing restricted securities pursuant
to Rule 144A, the Fund's investing in such securities may have the effect
of increasing the level of illiquidity in the Fund's portfolio during such
period.

The Fund may acquire "stand-by commitments" with respect to
Municipal Obligations held in its portfolio. Under a stand-by commitment,
the Fund obligates a broker, dealer or bank to repurchase, at the Fund's
option, specified securities at a specified price and, in this respect,
stand-by commitments are comparable to put options. The exercise of a
stand-by commitment, therefore, is subject to the abili-
Page 5
ty of the seller to
make payment on demand. The Fund will acquire stand-by commitments
solely to facilitate its portfolio liquidity and does not intend to exercise
its rights thereunder for trading purposes. The Fund may pay for stand-by
commitments if such action is deemed necessary, thus increasing to a
degree the cost of the underlying Municipal Obligation and similarly
decreasing such security's yield to investors. The Fund also may acquire
call options on specific Municipal Obligations. The Fund generally would
purchase these call options to protect the Fund from the issuer of the
related Municipal Obligation redeeming, or other holder of the call option
from calling away, the Municipal Obligation before maturity. The sale by
the Fund of a call option that it owns on a specific Municipal Obligation
could result in the receipt of taxable income by the Fund.

The Fund may purchase tender option bonds. A tender option bond is a
Municipal Obligation (generally held pursuant to a custodial arrangement)
having a relatively long maturity and bearing interest at a fixed rate
substantially higher than prevailing short-term tax exempt rates, that has
been coupled with the agreement of a third party, such as a bank, broker-
dealer or other financial institution, pursuant to which such institution
grants the security holders the option, at periodic intervals, to tender
their securities to the institution and receive the face value thereof. As
consideration for providing the option, the financial institution receives
periodic fees equal to the difference between the Municipal Obligation's
fixed coupon rate and the rate, as determined by a remarketing or similar
agent at or near the commencement of such period, that would cause the
securities, coupled with the tender option, to trade at par on the date of
such determination. Thus, after payment of this fee, the security holder
effectively holds a demand obligation that bears interest at the prevailing
short-term tax exempt rate. The Dreyfus Corporation, on behalf of the
Fund, will consider on an ongoing basis the creditworthiness of the
issuers of the underlying Municipal Obligation, of any custodian and of the
third party provider of the tender option. In certain instances and for
certain tender option bonds, the option may be terminable in the event of a
default in payment of principal or interest on the underlying Municipal
Obligations and for other reasons. The Fund will not invest more than 15%
of the value of its net assets in securities that are illiquid, which would
include tender option bonds as to which it cannot exercise the tender
feature on not more than seven days' notice if there is no secondary
market available for these obligations. See "Certain Fundamental
Policies" below.

From time to time, on a temporary basis other than for temporary
defensive purposes (but not to exceed 20% of the value of the Fund's net
assets) or for temporary defensive purposes, the Fund may invest in
taxable short-term investments ("Taxable Investments") consisting of:
notes of issuers having, at the time of purchase, a quality rating within
the two highest grades of Moody's, S&P or Fitch; obligations of the U.S.
Government, its agencies or instrumentalities; commercial paper rated
not lower than P-l by Moody's, A-l by S&P or F-l by Fitch; certificates of
deposit of U.S. domestic banks, including foreign branches of domestic
banks, with assets of one billion dollars or more; time deposits; bankers'
acceptances and other short-term bank obligations; and repurchase
agreements in respect of any of the foregoing. Dividends paid by the Fund
that are attributable to income earned by the Fund from Taxable
Investments will be taxable to investors. See "Dividends, Distributions
and Taxes." Except for temporary defensive purposes, at no time will more
than 20% of the value of the Fund's net assets be invested in Taxable
Investments. Under normal market conditions, the Fund anticipates that
not more than 5% of its total assets will be invested in any one category
of Taxable Investments. Taxable Investments are more fully described in
the Statement of Additional Information to which reference hereby is
made.

CALL AND PUT OPTIONS ON SPECIFIC SECURITIES - The Fund may invest up
to 5% of its assets, represented by the premium paid, in the purchase of
call and put options in respect of specific securities. The Fund may write
covered call and put option contracts to the extent of 20% of the value of
its net assets at the time such option contracts are written. A call option
gives the purchaser of the option the right to buy, and obligates the writer
to sell, the underlying security at the exercise price at any time during
the
Page 6
option period. Conversely, a put option gives the purchaser of the
option the right to sell, and obligates the writer to buy, the underlying
security at the exercise price at any time during the option period. A
covered call option sold by the Fund, which is a call option with respect to
which the Fund owns the underlying security, exposes the Fund during the
term of the option to possible loss of opportunity to realize appreciation
in the market price of the underlying security or to possible continued
holding of a security which might otherwise have been sold to protect
against depreciation in the market price of the security. A covered put
option sold by the Fund exposes the Fund during the term of the option to
the decline in price of the underlying security. A put option sold by the
Fund is covered when, among other things, cash or liquid securities is
placed in a segregated account with its custodian to fulfill the obligation
undertaken.
To close out a position when writing covered options, the Fund may
make a "closing purchase transaction," which involves purchasing an
option on the same security with the same exercise price and expiration
date as the option which it has previously written on the security. The
Fund will realize a profit or loss from a closing purchase transaction if
the amount paid to purchase an option is less or more, as the case may be,
than the amount received from the sale thereof. To close out a position as
a purchaser of an option, the Fund may make a "closing sale transaction,"
which involves liquidating the Fund's position by selling the option
previously purchased.
The Fund intends to treat options in respect of specific securities that
are not traded on a national securities exchange and the securities
underlying covered call options written by the Fund as not readily
marketable and therefore subject to the limitations under "Certain
Fundamental Policies" below.
The Fund will purchase options only to the extent permitted by the
policies of state securities authorities in states where shares of the Fund
are qualified for offer and sale.

MUNICIPAL BOND INDEX FUTURES CONTRACTS AND OPTIONS ON SUCH
FUTURES CONTRACTS - The Fund is not a commodity pool. However, as a
substitute for a comparable market position in the underlying securities
and for hedging purposes, the Fund may engage in futures and options on
futures transactions as described below.

The Fund's commodities transactions must constitute bona fide hedging
or other permissible transactions pursuant to regulations promulgated by
the Commodity Futures Trading Commission. In addition, the Fund may not
engage in such transactions if the sum of the amount of initial margin
deposits and premiums paid for unexpired options, other than for bona fide
hedging transactions, would exceed 5% of the liquidation value of the
Fund's assets, after taking into account unrealized profits and unrealized
losses on such contracts it has entered into; provided, however, that in
the case of an option that is in-the-money at the time of purchase, the in-
the-money amount may be excluded in calculating the 5%. Pursuant to
regulations and/or published positions of the Securities and Exchange
Commission, the Fund may be required to segregate cash or high quality
money market instruments in connection with its commodities
transactions in an amount generally equal to the value of the underlying
commodity. To the extent the Fund engages in the use of futures for other
than bona fide hedging purposes, the Fund may be subject to additional
risk.

Initially, when purchasing or selling futures contracts the Fund will be
required to deposit with its custodian in the broker's name an amount of
cash or cash equivalents up to approximately 10% of the contract amount.
This amount is subject to change by the exchange or board of trade on
which the contract is traded and members of such exchange or board of
trade may impose their own higher requirements. This amount is known as
"initial margin" and is in the nature of a performance bond or good faith
deposit on the contract which is returned to the Fund upon termination of
the futures position, assuming all contractual obligations have been
satisfied. Subsequent payments, known as "variation margin," to and from
the broker, will be made daily as the price of the index or securities
underlying the futures contract fluctuates, making the long and short
positions in the futures contract more or less valu-
Page 7
able, a process known
as "marking-to-market." At any time prior to the expiration of a futures
contract, the Fund may elect to close the position by taking an opposite
position at the then prevailing price, which will operate to terminate the
Fund's existing position in the contract.
Although the Fund intends to purchase or sell futures contracts only if
there is an active market for such contracts, no assurance can be given
that a liquid market will exist for any particular contract at any
particular time. Many futures exchanges and boards of trade limit the
amount of fluctuation permitted in futures contract prices during a single
trading day. Once the daily limit has been reached in a particular contract,
no trades may be made that day at a price beyond that limit or trading may
be suspended for specified periods during the trading day. Futures contract
prices could move to the limit for several consecutive trading days with
little or no trading, thereby preventing prompt liquidation of futures
positions and potentially subjecting the Fund to substantial losses. If it is
not possible or the Fund determines not to close a futures position in
anticipation of adverse price movements, the Fund will be required to
make daily cash payments of variation margin. In such circumstances, an
increase in the value of the portion of the portfolio being hedged, if any,
may offset partially or completely losses on the futures contract.
However, no assurance can be given that the price of the securities being
hedged will correlate with the price movements in a futures contract and
thus provide an offset to losses on the futures contract.
If the Fund has hedged against the possibility of an increase in interest
rates adversely affecting the value of securities held in its portfolio and
rates decrease instead, the Fund will lose part or all of the benefit of the
increased value of securities which it has hedged because it will have
offsetting losses in its futures positions. In addition, in such situations,
if the Fund has insufficient cash, it may have to sell securities to meet
daily variation margin requirements at a time when it may be
disadvantageous to do so. These sales of securities may, but will not
necessarily, be at increased prices which reflect the decline in interest
rates.
The Fund may purchase call and put options on municipal bond index
futures contracts that are traded on a United States exchange or board of
trade. The Fund will purchase such options solely for the purpose of
hedging against changes in the value of its portfolio securities because of
anticipated changes in interest rates, and not for purposes of speculation.
A futures contract provides for the future sale by one party and the
purchase by the other party of a certain amount of a specific debt security
at a specified price, date, time and place. An option on a futures contract,
as contrasted with the direct investment in such a contract, gives the
purchaser the right, in return for the premium paid, to assume a position
in a futures contract at a specified exercise price at any time prior to the
expiration date of the option. The Fund may purchase call options on
municipal bond index futures contracts to hedge against a decline in
interest rates and may purchase put options on such futures contracts to
hedge its portfolio securities against the risk of rising interest rates. The
Fund will sell options on such futures contracts only as part of closing
purchase transactions to terminate its options positions. No assurance can
be given that such closing transactions can be effected or that there will
be a correlation between price movements in the options on such futures
and price movements in the Fund's portfolio securities which are the
subject of the hedge. In addition, the Fund's purchase of such options will
be based upon predictions as to anticipated interest rate trends, which
could prove to be inaccurate. The potential loss related to the purchase of
an option on such futures contracts is limited to the premium paid for the
option.
LENDING PORTFOLIO SECURITIES __ From time to time, the Fund may lend
securities from its portfolio to brokers, dealers and other financial
institutions needing to borrow securities to complete certain
transactions. Such loans may not exceed 331/3% of the value of the Fund's
total assets. In connection with such loans, the Fund will receive
collateral consisting of cash, U.S. Government securities or irrevocable
letters of credit issued by financial institutions. Such collateral will be
maintained at all times in an amount equal to at least 100% of the current
market value of the loaned securities. The Fund can increase its
Page 8
income
through the investment of such collateral. The Fund continues to be
entitled to payments in amounts equal to the interest or other
distributions payable on the loaned security, and receives interest on the
amount of the loan. Such loans will be terminable at any time upon
specified notice. The Fund might experience risk of loss if the institution
with which it has engaged in a portfolio loan transaction breaches its
agreement with the Fund.
CERTAIN FUNDAMENTAL POLICIES - The Fund may (i) borrow money from
banks, but only for temporary or emergency (not leveraging) purposes, in
an amount up to 15% of the value of the Fund's 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 the Fund's total assets, the Fund will not
make any additional investments; and (ii) invest up to 25% of its total
assets in the securities of issuers in any industry, provided that there is
no such limitation on investments in Municipal Obligations and, for
temporary defensive purposes, obligations issued or guaranteed by the U.S.
Government, its agencies or instrumentalities. This paragraph describes
fundamental policies that cannot be changed without approval by the
holders of a majority (as defined in the Investment Company Act of 1940)
of the Fund's outstanding voting shares. See "Investment Objective and
Management Policies-Investment Restrictions" in the Statement of
Additional Information.
CERTAIN ADDITIONAL NON-FUNDAMENTAL POLICIES __ The Fund may (i)
pledge, hypothecate, mortgage or otherwise encumber its assets, but only
to the extent necessary to secure borrowings for temporary or emergency
purposes; and (ii) invest up to 15% of its net assets in repurchase
agreements providing for settlement in more than seven days after notice
and in other illiquid securities (which securities could include
participation interests, including municipal lease/purchase agreements,
that are not subject to the demand feature described above, and floating
and variable rate demand obligations as to which the Fund cannot exercise
the related demand feature described above and as to which there is no
secondary market). See "Investment Objective and Management
Policies__Investment Restrictions" in the Statement of Additional
Information.
INVESTMENT CONSIDERATIONS - Even though interest-bearing securities
are investments which promise a stable stream of income, the prices of
such securities are inversely affected by changes in interest rates and,
therefore, are subject to the risk of market price fluctuations.Certain
securities that may be purchased by the Fund, such as those with interest
rates that fluctuate directly or indirectly based on multiples of a stated
index, are designed to be highly sensitive to changes in interest rates and
can subject the holders thereof to extreme reductions of yield and
possibly loss of principal. The values of fixed-income securities also may
be affected by changes in the credit rating or financial condition of the
issuing entities. The Fund's net asset value generally will not be stable
and should fluctuate based upon changes in the value of the Fund's
portfolio securities. Securities in which the Fund invests may earn a
higher level of current income than certain shorter-term or higher quality
securities which generally have greater liquidity, less market risk and
less fluctuation in market value.
New issues of Municipal Obligations usually are offered on a when-
issued basis, which means that delivery and payment for such Municipal
Obligations ordinarily take place within 45 days after the date of the
commitment to purchase. The payment obligation and the interest rate
that will be received on the Municipal Obligations are fixed at the time
the Fund enters into the commitment. The Fund will make commitments to
purchase such Municipal Obligations only with the intention of actually
acquiring the securities, but the Fund may sell these securities before the
settlement date if it is deemed advisable, although any gain realized on
such sale would be taxable. The Fund will not accrue income in respect of
a when-issued security prior to its stated delivery date. No additional
when-issued commitments will be made if more than 20% of the Fund's
net assets would be so committed.
Municipal Obligations purchased on a when-issued basis and the
securities held in the Fund's portfolio are subject to changes in value
(both generally changing in the same way, i.e., appreciating when
Page 9
interest
rates decline and depreciating when interest rates rise) based upon the
public's perception of the creditworthiness of the issuer and changes, real
or anticipated, in the level of interest rates. Municipal Obligations
purchased on a when-issued basis may expose the Fund to risk because
they may experience such fluctuations prior to their actual delivery.
Purchasing Municipal Obligations on a when-issued basis can involve the
additional risk that the yield available in the market when the delivery
takes place actually may be higher than that obtained in the transaction
itself. A segregated account of the Fund consisting of cash, cash
equivalents or U.S. Government securities or other high quality liquid debt
securities at least equal at all times to the amount of the when-issued
commitments will be established and maintained at the Fund's custodian
bank. Purchasing Municipal Obligations on a when-issued basis when the
Fund is fully or almost fully invested may result in greater potential
fluctuation in the value of the Fund's net assets and its net asset value
per share.
Certain municipal lease/purchase obligations in which the Fund may
invest may contain "non-appropriation" clauses which provide that the
municipality has no obligation to make lease payments in future years
unless money is appropriated for such purpose on a yearly basis. Although
"non-appropriation" lease/purchase obligations are secured by the leased
property, disposition of the leased property in the event of foreclosure
might prove difficult. In evaluating the credit quality of a municipal
lease/purchase obligation that is unrated, The Dreyfus Corporation will
consider, on an ongoing basis, a number of factors including the likelihood
that the issuing municipality will discontinue appropriating funding for
the leased property.
Certain provisions in the Code relating to the issuance of Municipal
Obligations may reduce the volume of Municipal Obligations qualifying for
Federal tax exemption. One effect of these provisions could be to increase
the cost of Municipal Obligations available for purchase by the Fund and
thus reduce available yield. Shareholders should consult their tax advisers
concerning the effect of these provisions on an investment in the Fund.
Proposals that may restrict or eliminate the income tax exemption for
interest on Municipal Obligations may be introduced in the future. If any
such proposal were enacted that would reduce the availability of
Municipal Obligations for investment by the Fund so as to adversely affect
Fund shareholders, the Fund would reevaluate its investment objective and
policies and submit possible changes in the Fund's structure to
shareholders for their consideration. If legislation were enacted that
would treat a type of Municipal Obligation as taxable, the Fund would treat
such security as a permissible Taxable Investment within the applicable
limits set forth herein.
The Fund's classification as a "non-diversified'' investment company
means that the proportion of the Fund's assets that may be invested in the
securities of a single issuer is not limited by the Investment Company Act
of 1940. A "diversified" investment company is required by the
Investment Company Act of 1940 generally to invest, with respect to 75%
of its total assets, not more than 5% of such assets in the securities of a
single issuer. However, the Fund intends to conduct its operations so as to
qualify as a "regulated investment company" for purposes of the Code,
which requires that, at the end of each quarter of its taxable year, (i) at
least 50% of the market value of the Fund's total assets be invested in
cash, U.S. Government securities, the securities of other regulated
investment companies and other securities, with such other securities of
any one issuer limited for the purposes of this calculation to an amount
not greater than 5% of the value of the Fund's total assets, and (ii) not
more than 25% of the value of its total assets be invested in the
securities of any one issuer (other than U.S. Government securities or the
securities of other regulated investment companies). Since a relatively
high percentage of the Fund's assets may be invested in the securities of a
limited number of issuers, some of which may be within the same
economic sector, the Fund's portfolio securities may be more susceptible
to any single economic, political or regulatory occurrence than the
portfolio securities of a diversified investment company.
Investment decisions for the Fund are made independently from those of
other investment companies advised by The Dreyfus Corporation. However,
if such other investment companies are prepared to
Page 10
invest in, or desire to
dispose of, Municipal Obligations or Taxable Investments at the same time
as the Fund, available investments or opportunities for sales will be
allocated equitably to each investment company. In some cases, this
procedure may adversely affect the size of the position obtained for or
disposed of by the Fund or the price paid or received by the Fund.
MANAGEMENT OF THE FUND

The Dreyfus Corporation, located at 200 Park Avenue, New York, New
York 10166, was formed in 1947 and serves as the Fund's investment
adviser. As of June 30, 1994, The Dreyfus Corporation managed or
administered approximately $71 billion in assets for more than 1.9
million investor accounts nationwide.

The Dreyfus Corporation supervises and assists in the overall
management of the Fund's affairs under a Management Agreement with the
Fund, subject to the overall authority of the Fund's Board of Trustees in
accordance with Massachusetts law. The Fund's primary investment
officer is Samuel J.Weinstock. He has held that position since December 4,
1987 and has been employed by The Dreyfus Corporation since March 1987.
The Fund's other investment officers are identified under "Management of
the Fund" in the Fund's Statement of Additional Information. The Dreyfus
Corporation also provides research services for the Fund as well as for
other funds advised by The Dreyfus Corporation through a professional
staff of portfolio managers and security analysts.

For the fiscal year ended March 31, 1994, the Fund paid The Dreyfus
Corporation a monthly management fee at the annual rate of .50 of 1% of
the value of the Fund's average daily net assets. From time to time, The
Dreyfus Corporation may waive receipt of its fees and/or voluntarily
assume certain expenses of the Fund, which would have the effect of
lowering the overall expense ratio of the Fund and increasing yield to
investors at the time such amounts are waived or assumed, as the case
may be. The Fund will not pay The Dreyfus Corporation at a later time for
any amounts it may waive, nor will the Fund reimburse The Dreyfus
Corporation for any amounts it may assume.

The Dreyfus Corporation may pay Dreyfus Service Corporation for share-
holder and distribution services from The Dreyfus Corporation's own assets,
including the management fee paid by the Fund. Dreyfus Service Corporation
may use part or all of such payments to pay Service Agents in respect of these
services.

The Fund bears certain costs of distributing Fund shares in accordance
with a plan (the "Service Plan") adopted pursuant to Rule 12b-1 under the
Investment Company Act of 1940. See "Annual Fund Operating Expenses"
and "Service Plan."
The Shareholder Services Group, Inc., a subsidiary of First Data
Corporation, P.O. Box 9671, Providence, Rhode Island 02940-9671, is the
Fund's Transfer and Dividend Disbursing Agent (the "Transfer Agent"). The
Bank of New York, 110 Washington Street, New York, New York 10286, is
the Fund's Custodian.
HOW TO BUY FUND SHARES
The Fund's distributor is Dreyfus Service Corporation, a wholly-owned
subsidiary of The Dreyfus Corporation, located at 200 Park Avenue, New
York, New York 10166. The shares it distributes are not deposits or
obligations of The Dreyfus Security Savings Bank, F.S.B. and therefore are
not insured by the Federal Deposit Insurance Corporation.
You can purchase Fund shares through Dreyfus Service Corporation or
certain financial institutions (which may include banks), securities
dealers ("Selected Dealers") and other industry professionals
(collectively, "Service Agents") that have entered into service
agreements with Dreyfus Service Corporation. Share certificates are
issued only upon your written request. No certificates are issued for
fractional shares. It is not recommended that the Fund be used as a vehicle
for Keogh, IRA or other qualified plans. The Fund reserves the right to
reject any purchase order.
The minimum initial investment is $2,500, or $1,000 if you are a client
of a Service Agent which has made an aggregate minimum initial purchase
for its customers of $2,500. Subsequent investments must be
Page 11
at least
$100. The initial investment must be accompanied by the Fund's Account
Application. For full-time or part-time employees of The Dreyfus
Corporation or any of its affiliates or subsidiaries, directors of The
Dreyfus Corporation, Board members of a fund advised by The Dreyfus
Corporation, including
members of the Fund's Board, or the spouse or
minor child of any of the foregoing, the minimum initial investment is
$1,000. For full-time or part-time employees of The Dreyfus Corporation
or any of its affiliates or subsidiaries who elect to have a portion of their
pay directly deposited into their Fund account, the minimum initial
investment is $50. The Fund reserves the right to further vary the initial
and subsequent investment minimum requirements at any time.

You may purchase Fund shares by check or wire, or through the Dreyfus
TeleTransfer Privilege described below. Checks should be made payable to
"The Dreyfus Family of Funds." Payments to open new accounts which are
mailed should be sent to The Dreyfus Family of Funds, P.O. Box 9387,
Providence, Rhode Island 02940-9387, together with your Account
Application. For subsequent investments, your Fund account number should
appear on the check and an investment slip should be enclosed and sent to
The Dreyfus Family of Funds, P.O. Box 105, Newark, New Jersey 07101-
0105. Neither initial nor subsequent investments should be made by third
party check. Purchase orders may be delivered in person only to a Dreyfus
Financial Center. THESE ORDERS WILL BE FORWARDED TO THE FUND AND
WILL BE PROCESSED ONLY UPON RECEIPT THEREBY. For the location of the
nearest Dreyfus Financial Center, please call one of the telephone numbers
listed under "General Information."

Wire payments may be made if your bank account is in a commercial
bank that is a member of the Federal Reserve System or any other bank
having a correspondent bank in New York City. Immediately available funds
may be transmitted by wire to The Bank of New York, DDA
#8900052228/Dreyfus Short-Intermediate Municipal Bond Fund, for the
purchase of Fund shares in your name. The wire must include your Fund
account number (for new accounts, your Taxpayer Identification Number
("TIN") should be included instead), account registration and dealer
number, if applicable. If your initial purchase of Fund shares is by wire,
please call 1-800-645-6561 after completing your wire payment to
obtain your Fund account number. Please include your Fund account number
on the Fund's Account Application and promptly mail the Account
Application to the Fund, as no redemptions will be permitted until the
Account Application is received. You may obtain further information about
remitting funds in this manner from your bank. All payments should be
made in U.S. dollars and, to avoid fees and delays, should be drawn only on
U.S. banks. A charge will be imposed if any check used for investment in
your account does not clear. Other purchase procedures may be in effect
for clients of certain Service Agents. The Fund makes available to certain
large institutions the ability to issue purchase instructions through
compatible computer facilities.

Subsequent investments also may be made by electronic transfer of
funds from an account maintained in a bank or other domestic financial
institution that is an Automated Clearing House member. You must direct
the institution to transmit immediately available funds through the
Automated Clearing House to The Bank of New York with instructions to
credit your Fund account. The instructions must specify your Fund account
registration and your Fund account number PRECEDED BY THE DIGITS
"1111."
Management understands that some Service Agents may impose certain
conditions on their clients which are different from those described in
this Prospectus, and, to the extent permitted by applicable regulatory
authority, may charge their clients direct fees for Servicing (as defined
under "Service Plan"). These fees would be in addition to any amounts
which might be received under the Service Plan. Each Service Agent has
agreed to transmit to its clients a schedule of such fees. You should
consult your Service Agent in this regard.
Fund shares are sold on a continuous basis at the net asset value per
share next determined after the Transfer Agent receives an order in
proper form. Net asset value per share is determined as of the close of
trading on the floor of the New York Stock Exchange (currently 4:00 p.m.,
New York time), on each
Page 12
day the New York Stock Exchange is open for
business. For purposes of determining net asset value, options and futures
contracts will be valued 15 minutes after the close of trading on the floor
of the New
York Stock Exchange. Net asset value per share is computed by
dividing the value of the Fund's net assets (i.e., the value of its assets
less liabilities) by the total number of shares outstanding. The Fund's
investments are valued each business day by an independent pricing
service approved by the Board of Trustees and are valued at fair value as
determined by the pricing service in accordance with procedures reviewed
under the general supervision of the Board of Trustees. For further
information regarding the methods employed in valuing Fund investments,
see "Determination of Net Asset Value" in the Fund's Statement of
Additional Information.
Federal regulations require that you provide a certified TIN upon
opening or reopening an account. See "Dividends, Distributions and Taxes"
and the Fund's Account Application for further information concerning this
requirement. Failure to furnish a certified TIN to the Fund could subject
you to a $50 penalty imposed by the Internal Revenue Service (the "IRS").

DREYFUS TELETRANSFER PRIVILEGE - You may purchase Fund shares
(minimum $500, maximum $150,000 per day) by telephone if you have
checked the appropriate box and supplied the necessary information on the
Fund's Account Application or have filed a Shareholder Services Form with
the Transfer Agent. The proceeds will be transferred between the bank
account designated in one of these documents and your Fund account. Only
such a bank account maintained in a domestic financial institution which
is an Automated Clearing House member may be so designated. The Fund
may modify or terminate this Privilege at any time or charge a service fee
upon notice to shareholders. No such fee currently is contemplated.

If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TELETRANSFEr purchase of Fund shares by telephoning
1-800-221-4060 or, if you are calling from overseas, call 1-401-455-
3306.

SHAREHOLDER SERVICES
The services and privileges described under this heading may not be
available to clients of certain Service Agents and some Service Agents
may impose certain conditions on their clients which are different from
those described in this Prospectus. You should consult your Service Agent
in this regard.
EXCHANGE PRIVILEGE - The Exchange Privilege enables you to purchase, in
exchange for shares of the Fund, shares of certain other funds managed or
administered by The Dreyfus Corporation, to the extent such shares are
offered for sale in your state of residence. These funds have different
investment objectives which may be of interest to you. If you desire to
use this Privilege, you should consult your Service Agent or Dreyfus
Service Corporation to determine if it is available and whether any
conditions are imposed on its use.

To use this Privilege, you or your Service Agent acting on your behalf
must give exchange instructions to the Transfer Agent in writing, by wire
or by telephone. If you previously have established the Telephone Exchange
Privilege, you may telephone exchange instructions by calling 1-800-221-
4060 or, if you are calling from overseas, call 1-401-455-3306. See "How
to Redeem Fund Shares-Procedures." Before any exchange, you must obtain
and should review a copy of the current prospectus of the fund into which
the exchange is being made. Prospectuses may be obtained from Dreyfus
Service Corporation. Except in the case of Personal Retirement Plans, the
shares being exchanged must have a current value of at least $500;
furthermore, when establishing a new account by exchange, the shares
being exchanged must have a value of at least the minimum initial
investment required for the fund into which the exchange is being made.
Telephone exchanges may be made only if the appropriate "YES" box has
been checked on the Account Application, or a separate signed Shareholder
Services Form is on file with the Transfer Agent. Upon an exchange into a
new account, the following shareholder services
Page 13
and privileges, as
applicable and where available, will be automatically carried over to the
fund into which the exchange is made: Exchange Privilege, Check
Redemption Privilege, Wire Redemption
Privilege, Telephone Redemption
Privilege, Dreyfus TeleTransfer Privilege and the dividend/capital gain
distribution option (except for Dreyfus Dividend Sweep) selected by the
investor.

Shares will be exchanged at the next determined net asset value;
however, a sales load may be charged with respect to exchanges into funds
sold with a sales load. If you are exchanging into a fund that charges a
sales load, you may qualify for share prices which do not include the sales
load or which reflect a reduced sales load, if the shares of the fund from
which you are exchanging were: (a) purchased with a sales load, (b)
acquired by a previous exchange from shares purchased with a sales load,
or (c) acquired through reinvestment of dividends or distributions paid
with respect to the foregoing categories of shares. To qualify, at the time
of your exchange you must notify the Transfer Agent or your Service Agent
must notify Dreyfus Service Corporation. Any such qualification is subject
to confirmation of your holdings through a check of appropriate records.
See "Shareholder Services" in the Statement of Additional Information. No
fees currently are charged shareholders directly in connection with
exchanges, although the Fund reserves the right, upon not less than 60
days' written notice, to charge shareholders a nominal fee in accordance
with rules promulgated by the Securities and Exchange Commission. The
Fund reserves the right to reject any exchange request in whole or in part.
The Exchange Privilege may be modified or terminated at any time upon
notice to shareholders.
The exchange of shares of one fund for shares of another is treated for
Federal income tax purposes as a sale of the shares given in exchange by
the shareholder and, therefore, an exchanging shareholder may realize a
taxable gain or loss.

DREYFUS AUTO-EXCHANGE PRIVILEGE __ Dreyfus Auto-Exchange Privilege
enables you to invest regularly (on a semi-monthly, monthly, quarterly or
annual basis), in exchange for shares of the Fund, in shares of other funds
in the Dreyfus Family of Funds of which you are currently an investor. The
amount you designate, which can be expressed either in terms of a
specific dollar or share amount ($100 minimum), will be exchanged
automatically on the first and/or fifteenth day of the month according to
the schedule you have selected. Shares will be exchanged at the then-
current net asset value; however, a sales load may be charged with
respect to exchanges into funds sold with a sales load. See "Shareholder
Services" in the Statement of Additional Information. The right to
exercise this Privilege may be modified or cancelled by the Fund or the
Transfer Agent. You may modify or cancel your exercise of this Privilege
at any time by writing to The Dreyfus Family of Funds, P.O. Box 9671,
Providence, Rhode Island 02940-9671. The Fund may charge a service fee
for the use of this Privilege. No such fee currently is contemplated. The
exchange of shares of one fund for shares of another is treated for Federal
income tax purposes as a sale of the shares given in exchange by the
shareholder and, therefore, an exchanging shareholder may realize a
taxable gain or loss. For more information concerning this Privilege and
the funds in the Dreyfus Family of Funds eligible to participate in this
Privilege, or to obtain an Auto-Exchange Authorization Form, please call
toll free 1-800-645-6561.

DREYFUS-AUTOMATIC ASSET BUILDER - Dreyfus-AUTOMATIC Asset Builder
permits you to purchase Fund shares (minimum of $100 and maximum of
$150,000 per transaction) at regular intervals selected by you. Fund
shares are purchased by transferring funds from the bank account
designated by you. At your option, the bank account designated by you will
be debited in the specified amount, and Fund shares will be purchased,
once a month, on either the first or fifteenth day, or twice a month, on
both days. Only an account maintained at a domestic financial institution
which is an Automated Clearing House member may be so designated. To
establish a Dreyfus-AUTOMATIC Asset Builder account, you must file an
authorization form with the Transfer Agent. You may obtain the necessary
authorization form from Dreyfus Service Corporation. You may cancel your
participation in this Privilege or change the amount of purchase at any
time by mailing written notification to The Dreyfus Family of Funds,
Page 14
P.O.
Box 9671, Providence, Rhode Island 02940-9671, and the notification will
be effective three busi-
ness days following receipt. The Fund may modify
or terminate this Privilege at any time or charge a service fee. No such
fee currently is contemplated.

DREYFUS PAYROLL SAVINGS PLAN __ Dreyfus Payroll Savings Plan permits
you to purchase Fund shares (minimum of $100 per transaction)
automatically on a regular basis. Depending upon your employer's direct
deposit program, you may have part or all of your paycheck transferred to
your existing Dreyfus account electronically through the Automated
Clearing House system at each pay period. To establish a Dreyfus Payroll
Savings Plan account, you must file an authorization form with your
employer's payroll department. Your employer must complete the reverse
side of the form and return it to The Dreyfus Family of Funds, P.O. Box
9671, Providence, Rhode Island 02940-9671. You may obtain the necessary
authorization form from Dreyfus Service Corporation. You may change the
amount of purchase or cancel the authorization only by written
notification to your employer. It is the sole responsibility of your
employer, not Dreyfus Service Corporation, The Dreyfus Corporation, the
Fund, the Transfer Agent or any other person, to arrange for transactions
under the Dreyfus Payroll Savings Plan. The Fund may modify or terminate
this Privilege at any time or charge a service fee. No such fee currently is
contemplated.

DREYFUS GOVERNMENT DIRECT DEPOSIT PRIVILEGE - Dreyfus Government
Direct Deposit Privilege enables you to purchase Fund shares (minimum of
$100 and maximum of $50,000 per transaction) by having Federal salary,
Social Security, or certain veterans', military or other payments from the
Federal government automatically deposited into your Fund account. You
may deposit as much of such payments as you elect. To enroll in Dreyfus
Government Direct Deposit, you must file with the Transfer Agent a
completed Direct Deposit Sign-Up Form for each type of payment that you
desire to include in this Privilege. The appropriate form may be obtained
from Dreyfus Service Corporation. Death or legal incapacity will
terminate your participation in this Privilege. You may elect at any time
to terminate your participation by notifying in writing the appropriate
Federal agency. Further, the Fund may terminate your participation upon
30 days' notice to you.

DREYFUS DIVIDEND OPTIONS - Dreyfus Dividend Sweep enables you to
invest automatically dividends or dividends and capital gain distributions,
if any, paid by the Fund in shares of another fund in the Dreyfus Family of
Funds of which you are a shareholder. Shares of the other fund will be
purchased at the then-current net asset value; however, a sales load may
be charged with respect to investments in shares of a fund sold with a
sales load. If you are investing in a fund that charges a sales load, you may
qualify for share prices which do not include the sales load or which
reflect a reduced sales load. If you are investing in a fund that charges a
contingent deferred sales charge, the shares purchased will be subject on
redemption to the contingent deferred sales charge, if any, applicable to
the purchased shares. See "Shareholder Services" in the Statement of
Additional Information. Dreyfus Dividend ACH permits you to transfer
electronically dividends or dividends and capital gain distributions, 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 these privileges or to request a
Dividend Options Form, please call toll free 1-800-645-6561. You may
cancel these privileges by mailing written notification to The Dreyfus
Family of Funds, P.O. Box 9671, Providence, Rhode Island 02940-9671. To
select a new fund after cancellation, you must submit a new Dividend
Options Form. Enrollment in or cancellation of these privileges is
effective three business days following receipt. These privileges are
available only for existing accounts and may not be used to open new
accounts. Minimum subsequent investments do not apply for Dreyfus
Dividend Sweep. The Fund may modify or terminate these privileges at any
time or charge a service fee. No such fee currently is contemplated.

AUTOMATIC WITHDRAWAL PLAN - The Automatic Withdrawal Plan permits
you to request withdrawal of a specified dollar amount (minimum of $50)
on either a monthly or quarterly basis if you have a
Page 15
$5,000 minimum account. An application for the Automatic Withdrawal Plan
can be obtained from
Dreyfus Service Corporation. There is a service charge of 50 cents
for each withdrawal check. The Automatic Withdrawal Plan may be ended
at any time by you, the Fund or the Transfer Agent. Shares for which
certificates have been issued may not be redeemed through the Automatic
Withdrawal Plan.
HOW TO REDEEM FUND SHARES
GENERAL - You may request redemption of your shares at any time.
Redemption requests should be transmitted to the Transfer Agent, as
described below. When a request is received in proper form, the Fund will
redeem the shares at the next determined net asset value.
The Fund imposes no charges when shares are redeemed directly through
Dreyfus Service Corporation. Service Agents may charge a nominal fee for
effecting redemptions of Fund shares. Any certificates representing Fund
shares being redeemed must be submitted with the redemption request.
The value of the shares redeemed may be more or less than their original
cost, depending upon the Fund's then-current net asset value.
The Fund ordinarily will make payment for all shares redeemed within
seven days after receipt by the Transfer Agent of a redemption request in
proper form, except as provided by the rules of the Securities and
Exchange Commission. HOWEVER, IF YOU HAVE PURCHASED FUND SHARES BY
CHECK, BY DREYFUS TELETRANSFER PRIVILEGE OR THROUGH DREYFUS-
AUTOMATIC ASSET BUILDER AND SUBSEQUENTLY SUBMIT A WRITTEN
REDEMPTION REQUEST TO THE TRANSFER AGENT, THE REDEMPTION
PROCEEDS WILL BE TRANSMITTED TO YOU PROMPTLY UPON BANK CLEARANCE
OF YOUR PURCHASE CHECK, DREYFUS TELETRANSFER PURCHASE OR
DREYFUS-AUTOMATIC ASSET BUILDER ORDER, WHICH MAY TAKE UP TO EIGHT
BUSINESS DAYS OR MORE. IN ADDITION, THE FUND WILL NOT HONOR
REDEMPTION CHECKS UNDER THE CHECK REDEMPTION PRIVILEGE, AND WILL
REJECT REQUESTS TO REDEEM SHARES BY WIRE OR TELEPHONE OR PURSUANT
TO THE DREYFUS TELETRANSFER PRIVILEGE, FOR A PERIOD OF EIGHT
BUSINESS DAYS AFTER RECEIPT BY THE TRANSFER AGENT OF THE PURCHASE
CHECK, THE DREYFUS TELETRANSFER PURCHASE OR THE DREYFUS-
AUTOMATIC ASSET BUILDER ORDER AGAINST WHICH SUCH REDEMPTION IS
REQUESTED. THESE PROCEDURES WILL NOT APPLY IF YOUR SHARES WERE
PURCHASED BY WIRE PAYMENT, OR IF YOU OTHERWISE HAVE A SUFFICIENT
COLLECTED BALANCE IN YOUR ACCOUNT TO COVER THE REDEMPTION
REQUEST. PRIOR TO THE TIME ANY REDEMPTION IS EFFECTIVE, DIVIDENDS ON
SUCH SHARES WILL ACCRUE AND BE PAYABLE, AND YOU WILL BE ENTITLED
TO EXERCISE ALL OTHER RIGHTS OF BENEFICIAL OWNERSHIP. Fund shares
will not be redeemed until the Transfer Agent has received your Account
Application.
The Fund reserves the right to redeem your account at its option upon
not less than 30 days' written notice if your account has a balance of 50
shares or less and remains so during the notice period.

PROCEDURES - You may redeem shares by using the regular redemption
procedure through the Transfer Agent, the Check Redemption Privilege,
Wire Redemption Privilege, Telephone Redemption Privilege, the Dreyfus
TELETRANSFER Privilege or, if you are a client of a Selected Dealer,
through the Selected Dealer. If you have given your Service Agent
authority to instruct the Transfer Agent to redeem shares and to credit
the proceeds of such redemptions to a designated account at your Service
Agent, you may redeem shares only in this manner and in accordance with
the regular redemption procedure described below. If you wish to use the
other redemption methods described below, you must arrange with your
Service Agent for delivery of the required application(s) to the Transfer
Agent. Other redemption procedures may be in effect for clients of certain
Service Agents. The Fund makes available to certain large institutions the
ability to issue redemption instructions through compatible computer
facilities.

You may redeem or exchange Fund shares by telephone if you have
checked the appropriate box on the Fund's Account Application or have
filed a Shareholder Services Form with the Transfer Agent. If you select a
telephone redemption or exchange privilege, you authorize the Transfer
Agent to act on telephone instructions from any person representing
himself or herself to be you, or a representative of your
Page 16
Service Agent,
and reasonably believed by the Transfer Agent to be genuine. The Fund will
require
the Transfer Agent to employ reasonable procedures, such as
requiring a form of personal identification, to confirm that instructions
are genuine and, if it does not follow such procedures, the Fund or the
Transfer Agent may be liable for any losses due to unauthorized or
fraudulent instructions. Neither the Fund nor the Transfer Agent will be
liable for following telephone instructions reasonably believed to be
genuine.

During times of drastic economic or market conditions, you may
experience difficulty in contacting the Transfer Agent by telephone to
request a redemption or exchange of Fund shares. In such cases, you should
consider using the other redemption procedures described herein. Use of
these other redemption procedures may result in your redemption request
being processed at a later time than it would have been if telephone
redemption had been used. During the delay, the Fund's net asset value may
fluctuate.

REGULAR REDEMPTION - Under the regular redemption procedure, you may
redeem shares by written request mailed to The Dreyfus Family of Funds,
P.O. Box 9671, Providence, Rhode Island 02940-9671. Redemption requests
may be delivered in person only to a Dreyfus Financial Center. THESE
REQUESTS WILL BE FORWARDED TO THE FUND AND WILL BE PROCESSED ONLY
UPON RECEIPT THEREBY. For the location of the nearest Dreyfus Financial
Center, please call one of the telephone numbers listed under "General
Information." Redemption requests must be signed by each shareholder,
including each owner of a joint account, and each signature must be
guaranteed. The Transfer Agent has adopted standards and procedures
pursuant to which signature-guarantees in proper form generally will be
accepted from domestic banks, brokers, dealers, credit unions, national
securities exchanges, registered securities associations, clearing
agencies and savings associations, as well as from participants in the
New York Stock Exchange Medallion Signature Program, the Securities
Transfer Agents Medallion Program ("STAMP") and the Stock Exchanges
Medallion Program. If you have any questions with respect to signature-
guarantees, please call one of the telephone numbers listed under "General
Information."
Redemption proceeds of at least $1,000 will be wired to any member
bank of the Federal Reserve System in accordance with a written
signature-guaranteed request.

CHECK REDEMPTION PRIVILEGE - You may request on the Account
Application, Shareholder Services Form or by later written request that
the Fund provide Redemption Checks drawn on the Fund's account.
Redemption Checks may be made payable to the order of any person in the
amount of $500 or more. Potential fluctuations in the net asset value of
Fund shares should be considered in determining the amount of the check.
Redemption Checks should not be used to close your account. Redemption
Checks are free, but the Transfer Agent will impose a fee for stopping
payment of a Redemption Check upon your request or if the Transfer Agent
cannot honor a Redemption Check because of insufficient funds or other
valid reason. You should date your Redemption Checks with the current
date when you write them. Please do not postdate your Redemption Checks.
If you do so, the Transfer Agent will honor, upon presentment, even if
presented before the date of the check, all postdated Redemption Checks
which are dated within six months of presentment for payment, if they are
otherwise in good order. Shares for which certificates have been issued
may not be redeemed by Redemption Check. This Privilege may be modified
or terminated at any time by the Fund or the Transfer Agent upon notice to
shareholders.

WIRE REDEMPTION PRIVILEGE - You may request by wire or telephone that
redemption proceeds (minimum $1,000) be wired to your account at a bank
which is a member of the Federal Reserve System, or a correspondent bank
if your bank is not a member. To establish the Wire Redemption Privilege,
you must check the appropriate box and supply the necessary information
on the Fund's Account Application or file a Shareholder Services Form
with the Transfer Agent. You may direct that redemption proceeds be paid
by check (maximum $150,000 per day) made out to the owners of record
and mailed to your address. Redemption proceeds of less than $1,000 will
be paid automatically by check. Holders of jointly registered Fund or bank
accounts may have redemption proceeds of only up to
Page 17
$250,000 wired
within any 30-day period. You may telephone redemption requests by
calling 1-800-
221-4060 or, if you are calling from overseas, call 1-401-
455-3306. The Fund reserves the right to refuse any redemption request,
including requests made shortly after a change of address, and may limit
the amount involved or the number of such requests. This Privilege may be
modified or terminated at any time by the Transfer Agent or the Fund. The
Statement of Additional Information sets forth instructions for
transmitting redemption requests by wire. Shares for which certificates
have been issued are not eligible for this Privilege.

TELEPHONE REDEMPTION PRIVILEGE - You may redeem Fund shares
(maximum $150,000 per day) by telephone if you have checked the
appropriate box on the Fund's Account Application or have filed a
Shareholder Services Form with the Transfer Agent. The redemption
proceeds will be paid by check and mailed to your address. You may
telephone redemption instructions by calling 1-800-221-4060 or, if you
are calling from overseas, call 1-401-455-3306. The Fund reserves the
right to refuse any request made by telephone, including requests made
shortly after a change of address, and may limit the amount involved or
the number of telephone redemption requests. This Privilege may be
modified or terminated at any time by the Transfer Agent or your Fund.
Shares for which certificates have been issued are not eligible for this
Privilege.

DREYFUS TELETRANSFER PRIVILEGE - You may redeem Fund shares
(minimum $500) by telephone if you have checked the appropriate box and
supplied the necessary information on the Fund's Account Application or
have filed a Shareholder Services Form with the Transfer Agent. The
proceeds will be transferred between your Fund account and the bank
account designated in one of these documents. Only such an account
maintained in a domestic financial institution which is an Automated
Clearing House member may be so designated. Redemption proceeds will be
on deposit in your account at an Automated Clearing House member bank
ordinarily two days after receipt of the redemption request or, at your
request, paid by check (maximum $150,000 per day) and mailed to your
address. Holders of jointly registered Fund or bank accounts may redeem
through the Dreyfus TELETRANSFER Privilege for transfer to their bank
account only up to $250,000 within any 30-day period. The Fund reserves
the right to refuse any request made by telephone, including requests
made shortly after a change of address, and may limit the amount involved
or the number of such requests. The Fund may modify or terminate this
Privilege at any time or charge a service fee upon notice to shareholders.
No such fee currently is contemplated.

If you have selected the Dreyfus TELETRANSFER Privilege, you may
request a Dreyfus TeleTransfer redemption of Fund shares by telephoning
1-800-221-4060 or, if you are calling from overseas, call 1-401-455-
3306. Shares issued in certificate form are not eligible for this Privilege.

REDEMPTION THROUGH A SELECTED DEALER - If you are a customer of a
Selected Dealer, you may make redemption requests to your Selected
Dealer. If the Selected Dealer transmits the redemption request so that it
is received by the Transfer Agent by the close of trading on the floor of
the New York Stock Exchange on a given day, the redemption request will
be effective on that day. If a redemption request is received by the
Transfer Agent after the close of trading on the floor of the New York
Stock Exchange, the redemption request will be effective on the next
business day. It is the responsibility of the Selected Dealer to transmit a
request so that it is received in a timely manner. The proceeds of the
redemption are credited to your account with the Selected Dealer. See
"How to Buy Fund Shares" for a discussion of additional conditions or fees
that may be imposed by Selected Dealers upon redemption.
SERVICE PLAN
Under the Service Plan, adopted pursuant to Rule 12b-1 under the
Investment Company Act of 1940, the Fund reimburses Dreyfus Service
Corporation for costs and expenses incurred in connection with
advertising, marketing and distributing the Fund's shares and for
payments to Service Agents for
Page 18
administration, for servicing Fund
shareholders who are also their clients and/or for distribution, up to a
maximum annual rate of .10 of 1% of the value of the Fund's average daily
net assets. The Board of Trustees determines the amounts to be paid to
Service Agents. Service Agents receive such fees in respect of the average
daily value of the Fund's shares owned by shareholders for whom the
Service Agent performs Servicing (as defined below) or for whom the
Service Agent is the dealer or holder of record. The Service Plan also
provides that The Dreyfus Corporation may make the payments provided
for above, without limitation as to amount, out of its management fee, its
past profits or any other source available to it. From time to time,
Dreyfus Service Corporation may defer or waive receipt of fees under the
Service Plan while retaining the ability to be paid by the Fund under the
Service Plan thereafter. The cost to the Fund under the Service Plan will
not exceed the amounts reimbursed to Dreyfus Service Corporation, the
amounts paid for prospectuses and statements of additional information
and for implementing and operating the Service Plan and the aggregate
amount of The Dreyfus Corporation's management fee.
The Fund also bears the costs of preparing and printing prospectuses
and statements of additional information used for regulatory purposes and
for distribution to existing shareholders. Under the Service Plan, the Fund
bears (a) the costs of preparing, printing and distributing prospectuses
and statements of additional information used for other purposes, and (b)
the costs associated with implementing and operating the Service Plan
(such as costs of printing and mailing service agreements), the aggregate
of such amounts not to exceed in any fiscal year of the Fund the greater of
$100,000 or .005 of 1% of the average daily value of the Fund's net assets
for such fiscal year. Each item for which a payment may be made under the
Service Plan may constitute an expense of distributing Fund shares as the
Securities and Exchange Commission construes such term under Rule 12b-1.
Expenses under the Service Plan may be carried forward from one year
to another to the extent they remain unpaid. All or part of any such amount
will be paid at such time, if ever, as the Board of Trustees determines to
pay it. The Fund will not be charged for interest, carrying or other finance
charges on any unreimbursed distribution or other expense incurred and
not paid in a prior year.
Servicing may include, among other things, one or more of the
following: answering client inquiries regarding the Fund; assisting clients
in changing dividend options, account designations and addresses;
performing subaccounting; establishing and maintaining shareholder
accounts and records; processing purchase and redemption transactions;
investing client cash account balances automatically in Fund shares;
providing periodic statements showing a client's account balance and
integrating such statements with those of other transactions and balances
in the client's other accounts serviced by the Service Agent; arranging for
bank wires; and such other services as the Fund may request, to the extent
the Service Agent is permitted by applicable statute, rule or regulation.
The Glass-Steagall Act and other applicable laws prohibit Federally
chartered or supervised banks from engaging in certain aspects of the
business of issuing, underwriting, selling and/or distributing securities.
Accordingly, banks will be engaged to act as Service Agents only to
perform administrative and shareholder servicing functions. While the
matter is not free from doubt, the Fund's Board of Trustees believes that
such laws should not preclude a bank from acting as a Service Agent.
However, judicial or administrative decisions or interpretations of such
laws, as well as changes in either Federal or state statutes or regulations
relating to the permissible activities of banks or their subsidiaries or
affiliates, could prevent a bank from continuing to perform all or a part of
its Servicing activities. If a bank were prohibited from so acting, its
shareholder clients would be permitted to remain Fund shareholders and
alternative means for continuing the Servicing of such shareholders would
be sought. In such event, changes in the operation of the Fund might occur
and shareholders serviced by such bank might no longer be able to avail
themselves of any automatic investment or other services then being
provided by
Page 19
such bank. The Fund does not expect that shareholders would
suffer any adverse financial consequences as a result of any of these
occurrences.
DIVIDENDS, DISTRIBUTIONS AND TAXES
The Fund ordinarily declares dividends from its net investment income
on each day the Fund is open for business. Fund shares begin earning
dividends on the day following the date of purchase. Dividends usually are
paid on the last business day of each month, and automatically reinvested
in additional Fund shares at net asset value or, at your option, paid in
cash. The Fund's earnings for Saturdays, Sundays and holidays are declared
as dividends on the next business day. If you redeem all shares in your
account at any time during the month, all dividends to which you are
entitled will be paid to you along with the proceeds of the redemption.
Distributions from net realized securities gains, if any, generally are
declared and paid once a year, but the Fund may make distributions on a
more frequent basis to comply with the distribution requirements of the
Code, in all events in a manner consistent with the provisions of the
Investment Company Act of 1940. The Fund will not make distributions
from net realized securities gains unless capital loss carryovers, if any,
have been utilized or have expired. You may choose whether to receive
distributions in cash or to reinvest in additional Fund shares at net asset
value. All expenses are accrued daily and deducted before declaration of
dividends to investors.

Except for dividends from Taxable Investments, the Fund anticipates
that substantially all dividends paid by the Fund from net investment
income will not be subject to Federal income tax. Dividends derived from
Taxable Investments, together with distributions from any net realized
short-term securities gains and all or a portion of any gains realized from
the sale or other disposition of certain market discount bonds, will be
taxable to shareholders as ordinary income whether or not reinvested in
Fund shares. No dividend paid by the Fund will qualify for the dividends
received deduction allowable to certain U.S. corporations. Distributions
from net realized long-term securities gains of the Fund are taxable as
long-term capital gains for Federal income tax purposes if you are a
citizen or resident of the United States. Dividends and distributions
attributable to gains derived from securities transactions and from
options or futures contracts also will be subject to Federal income tax.
The Code provides that the net capital gain of an individual generally will
not be subject to Federal income tax at a rate in excess of 28%. Under the
Code, interest on indebtedness incurred or continued to purchase or carry
Fund shares which is deemed to relate to exempt-interest dividends is not
deductible.

Although all or a substantial portion of the dividends paid by the Fund
may be excluded by shareholders of the Fund from their gross income for
Federal income tax purposes, the Fund may purchase specified private
activity bonds, the interest from which may be (i) a preference item for
purposes of the alternative minimum tax, (ii) a component of the
"adjusted current earnings" preference item for purposes of the corporate
alternative minimum tax as well as a component in computing the
corporate environmental tax or (iii) a factor in determining the extent to
which a shareholder's Social Security benefits are taxable. If the Fund
purchases such securities, the portion of the Fund's dividends related
thereto will not necessarily be tax exempt to an investor who is subject
to the alternative minimum tax and/or tax on Social Security benefits and
may cause an investor to be subject to such taxes.

Taxable dividends derived from net investment income, together with
distributions from net realized short-term securities gains and all or a
portion of any gains realized from the sale or other disposition of certain
market discount bonds, paid by the Fund to a foreign investor generally are
subject to U.S. nonresident withholding taxes at the rate of 30%, unless
the foreign investor claims the benefit of a lower rate specified in a tax
treaty. Distributions from net realized long-term securities gains paid by
the Fund to a foreign investor as well as the proceeds of any redemptions
from a foreign investor's account, regardless of the extent to which gain
or loss may be realized, generally will not be subject to U.S. non-
Page 20
resident
withholding tax. However, such distributions may be subject to backup
withholding, as described below, unless the foreign investor certifies his
non-U.S. residency status.

Notice as to the tax status of your dividends and distributions will be
mailed to you annually. You also will receive periodic summaries of your
account which will include information as to dividends and distributions
from securities gains, if any, paid during the year. These statements set
forth the dollar amount of income exempt from Federal tax and the dollar
amount, if any, subject to Federal tax. These dollar amounts will vary
depending on the size and length of time of your investment in the Fund. If
the Fund pays dividends derived from taxable income, it intends to
designate as taxable the same percentage of the day's dividend as the
actual taxable income earned on that day bears to total income earned on
that day. Thus, the percentage of the dividend designated as taxable, if
any, may vary from day to day.
Federal regulations generally require the Fund to withhold ("backup
withholding") and remit to the U.S. Treasury 31% of taxable dividends,
distributions from net realized securities gains of the Fund and the
proceeds of any redemption, regardless of the extent to which gain or loss
may be realized, paid to a shareholder if such shareholder fails to certify
either that the TIN furnished in connection with opening an account is
correct, or that such shareholder has not received notice from the IRS of
being subject to backup withholding as a result of a failure to properly
report taxable dividend or interest income on a Federal income tax return.
Furthermore, the IRS may notify the Fund to institute backup withholding
if the IRS determines a shareholder's TIN is incorrect or if a shareholder
has failed to properly report taxable dividend and interest income on a
Federal income tax return.
A TIN is either the Social Security number or employer identification
number of the record owner of the account. Any tax withheld as a result of
backup withholding does not constitute an additional tax imposed on the
record owner of the account, and may be claimed as a credit on the record
owner's Federal income tax return.
Management of the Fund believes that the Fund has qualified for the
fiscal year ended March 31, 1994 as a "regulated investment company"
under the Code. The Fund intends to continue to so qualify if such
qualification is in the best interests of its shareholders. Such
qualification relieves the Fund of any liability for Federal income tax to
the extent its earnings are distributed in accordance with the applicable
provisions of the Code. The Fund is subject to a non-deductible 4% excise
tax, measured with respect to certain undistributed amounts of taxable
investment income and capital gains.
You should consult your tax adviser regarding specific questions as to
Federal, state or local taxes.
PERFORMANCE INFORMATION
For purposes of advertising, performance may be calculated on several
bases, including current yield, tax equivalent yield, average annual total
return and/or total return. Current yield refers to the Fund's annualized
net investment income per share over a 30-day period, expressed as a
percentage of the net asset value per share at the end of the period. For
purposes of calculating current yield, the amount of net investment
income per share during that 30-day period, computed in accordance with
regulatory requirements, is compounded by assuming that it is reinvested
at a constant rate over a six-month period. An identical result is then
assumed to have occurred during a second six-month period which, when
added to the result for the first six months, provides an "annualized"
yield for an entire one-year period. Calculations of the Fund's current
yield may reflect absorbed expenses pursuant to any undertaking that may
be in effect. See "Management of the Fund."
Tax equivalent yield is calculated by determining the pre-tax yield
which, after being taxed at a stated rate, would be equivalent to a stated
current yield calculated as described above.
Average annual total return is calculated pursuant to a standardized
formula which assumes that an investment in the Fund was purchased
with an initial payment of $1,000 and that the investment was redeemed
at the end of a stated period of time, after giving effect to the
reinvestment of dividends and
Page 21
distributions during the period. The return
is expressed as a percentage rate which, if applied on a compounded
annual basis, would result in the redeemable value of the investment at
the end of the period.
Advertisements of the Fund's performance will
include the Fund's annual total return for one, five and ten year periods, or
for shorter time periods depending upon the length of time during which
the Fund has operated.
Total return is computed on a per share basis and assumes the
reinvestment of dividends and distributions. Total return generally is
expressed as a percentage rate which is calculated by combining the
income and principal changes for a specified period and dividing by the net
asset value per share at the beginning of the period. Advertisements may
include the percentage rate of total return or may include the value of a
hypothetical investment at the end of the period which assumes the
application of the percentage rate of total return.
Performance will vary from time to time and past results are not
necessarily representative of future results. You should remember that
performance is a function of portfolio management in selecting the type
and quality of portfolio securities and is affected by operating expenses.
Performance information, such as that described above, may not provide a
basis for comparison with other investments or other investment
companies using a different method of calculating performance.
Comparative performance information may be used from time to time in
advertising or marketing the Fund's shares, including data from CDA
Investment Technologies, Inc., Lipper Analytical Services, Inc., Moody's
Bond Survey Bond Index, Lehman Brothers Municipal Bond Index,
Morningstar, Inc. and other industry publications. The Fund's yield should
generally be higher than money market funds (the Fund, however, does not
seek to maintain a stabilized price per share and may not be able to return
an investor's principal), and its price per share should fluctuate less than
comparable long term-bond funds (which generally have somewhat higher
yields).
GENERAL INFORMATION

The Fund was organized as an unincorporated business trust under the
laws of the Commonwealth of Massachusetts pursuant to an Agreement
and Declaration of Trust (the "Trust Agreement") dated October 29, 1986,
and commenced operations on April 30, 1987. On September 22, 1993, the
Fund's name was changed from Dreyfus Short-Intermediate Tax Exempt
Bond Fund to Dreyfus Short-Intermediate Municipal Bond Fund. The Fund is
authorized to issue an unlimited number of shares of beneficial interest,
par value $.001 per share. Each share has one vote.

Under Massachusetts law, shareholders could, under certain
circumstances, be held personally liable for the obligations of the Fund.
However, the Trust Agreement disclaims shareholder liability for acts or
obligations of the Fund and requires that notice of such disclaimer be
given in each agreement, obligation or instrument entered into or executed
by the Fund or a Trustee. The Trust Agreement provides for
indemnification from the Fund's property for all losses and expenses of
any shareholder held personally liable for the obligations of the Fund.
Thus, the risk of a shareholder incurring financial loss on account of
shareholder liability is limited to circumstances in which the Fund itself
would be unable to meet its obligations, a possibility which management
believes is remote. Upon payment of any liability incurred by the Fund, the
shareholder paying such liability will be entitled to reimbursement from
the general assets of the Fund. The Trustees intend to conduct the
operations of the Fund in such a way so as to avoid, as far as possible,
ultimate liability of the shareholders for liabilities of the Fund. As
discussed under "Management of the Fund" in the Statement of Additional
Information, the Fund ordinarily will not hold shareholder meetings;
however, shareholders under certain circumstances may have the right to
call a meeting of shareholders for the purpose of voting to remove
Trustees.
Page 22
The Transfer Agent maintains a record of your ownership and sends you
confirmations and statements of account.
Shareholder inquiries may be made by writing to the Fund at 144 Glenn
Curtiss Boulevard, Uniondale, New York 11556-0144, or by calling toll
free 1-800-645-6561. In New York City, call 1-718-895-1206; on Long
Island, call 794-5452.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO
MAKE ANY REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS AND IN THE FUND'S OFFICIAL SALES LITERATURE IN
CONNECTION WITH THE OFFER OF THE FUND'S SHARES, AND, IF GIVEN OR
MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS MUST NOT BE
RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND. THE PROSPECTUS
DOES NOT CONSTITUTE AN OFFER IN ANY STATE IN WHICH, OR TO ANY
PERSON TO WHOM, SUCH OFFERING MAY NOT LAWFULLY BE MADE.
Page 23
DREYFUS
SHORT-INTERMEDIATE
MUNICIPAL
BOND FUND
PROSPECTUS
(LION LOGO)
(COPYRIGHT LOGO) DREYFUS SERVICE CORPORATION, 1994
DISTRIBUTOR
591P10080194

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
PART B
(STATEMENT OF ADDITIONAL INFORMATION)
AUGUST 1, 1994

This Statement of Additional Information, which is not a prospectus,
supplements and should be read in conjunction with the current prospectus
of Dreyfus Short-Intermediate Municipal Bond Fund (the "Fund"), dated
August 1, 1994, as it may be revised from time to time. To obtain a copy
of the Fund's Prospectus, please write to the Fund at 144 Glenn Curtiss
Boulevard, Uniondale, New York 11556-0144, or call the following numbers:

Call Toll Free 1-800-645-6561
In New York City -- Call 1-718-895-1206
On Long Island -- Call 794-5452

The Dreyfus Corporation (the "Manager") serves as the Fund's
investment adviser.

Dreyfus Service Corporation (the "Distributor"), a wholly-owned
subsidiary of the Manager, is the distributor of the Fund's shares.

TABLE OF CONTENTS

Page

Investment Objective and Management Policies. . . . . . . . . . . . B-2

Management of the Fund. . . . . . . . . . . . . . . . . . . . . . . B-10

Management Agreement. . . . . . . . . . . . . . . . . . . . . . . . B-13
Purchase of Fund Shares . . . . . . . . . . . . . . . . . . . . . . B-15

Service Plan. . . . . . . . . . . . . . . . . . . . . . . . . . . . B-15

Redemption of Fund Shares . . . . . . . . . . . . . . . . . . . . . B-16
Shareholder Services. . . . . . . . . . . . . . . . . . . . . . . . B-18
Determination of Net Asset Value. . . . . . . . . . . . . . . . . . B-21
Portfolio Transactions. . . . . . . . . . . . . . . . . . . . . . . B-21
Dividends, Distributions and Taxes. . . . . . . . . . . . . . . . . B-22
Performance Information . . . . . . . . . . . . . . . . . . . . . . B-23
Information About the Fund. . . . . . . . . . . . . . . . . . . . . B-24

Custodian, Transfer and Dividend Disbursing Agent, Counsel
and Independent Auditors . . . . . . . . . . . . . . . . . . . B-25

Appendix. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . B-26

Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . B-31

Report of Independent Auditors. . . . . . . . . . . . . . . . . . . B-44

INVESTMENT OBJECTIVE AND MANAGEMENT POLICIES

The following information supplements and should be read in
conjunction with the section of the Fund's Prospectus entitled "Description
of the Fund."

The distribution of investments (at value) in Municipal Obligations
by ratings for the fiscal year ended March 31, 1994, computed on a monthly
basis, was as follows:

Fitch Investors Moody's Investors Standard & Poor's
Service, Inc. ("Fitch") or Service, Inc. ("Moody's") or Corporation ("S&P") Percentage
<S> <C> <S> <C>

AAA Aaa AAA 16.7%
AA Aa AA 20.4
A A A 46.8
BBB Baa BBB 2.3
F-1 MIG 1/P-1 SP-1/A-1 11.1
Not Rated Not Rated Not Rated 2.7%*
------
100.0%
======
</TABLE>
_______________________
* Included in the Not Rated category are securities comprising 2.7% of the
Fund's market value which, while not rated, have been determined by
the Manager to be of comparable quality to securities in the following
rating categories: Aaa/AAA (.1%), Aa/AA (.8%) A/(1.8%).

Municipal Obligations. The term "Municipal Obligations" generally
includes debt obligations issued to obtain funds for various public
purposes, including the construction of a wide range of public facilities
such as airports, bridges, highways, housing, hospitals, mass
transportation, schools, streets and water and sewer works. Other public
purposes for which Municipal Obligations may be issued include refunding
outstanding obligations, obtaining funds for general operating expenses and
lending such funds to other public institutions and facilities. In
addition, certain types of industrial development bonds are issued by or on
behalf of public authorities to obtain funds to provide for the
construction, equipment, repair or improvement of privately operated
housing facilities, sports facilities, convention or trade show facilities,
airport, mass transit, industrial, port or parking facilities, air or water
pollution control facilities and certain local facilities for water supply,
gas, electricity or sewage or solid waste disposal; the interest paid on
such obligations may be exempt from Federal income tax, although current
tax laws place substantial limitations on the size of such issues. Such
obligations are considered to be Municipal Obligations if the interest paid
thereon qualifies as exempt from Federal income tax in the opinion of bond
counsel to the issuer. There are, of course, variations in the security of
Municipal Obligations, both within a particular classification and between
classifications.

Floating and variable rate demand notes and bonds are tax exempt
obligations ordinarily having stated maturities in excess of one year, but
which permit the holder to demand payment of principal at any time, or at
specified intervals not exceeding one year. The issuer of such obligations
ordinarily has a corresponding right, after a given period, to prepay in
its discretion the outstanding principal amount of the obligations plus
accrued interest upon a specified number of days' notice to the holders
thereof. The interest rate on a floating rate demand obligation is based
on a known lending rate, such as a bank's prime rate, and is adjusted
automatically each time such rate is adjusted. The interest rate on a
variable rate demand obligation is adjusted automatically at specified
intervals.

The yields on Municipal Obligations are dependent on a variety of
factors, including general economic and monetary conditions, money market
factors, conditions in the Municipal Obligations market, size of a
particular offering, maturity of the obligation and rating of the issue.
The imposition of the Fund's management fee, as well as other operating
expenses, including fees paid under the Fund's Service Plan, will have the
effect of reducing the yield to investors.

Municipal lease obligations or installment purchase contract
obligations (collectively, "lease obligations") have special risks not
ordinarily associated with Municipal Obligations. Although lease
obligations do not constitute general obligations of the municipality for
which the municipality's taxing power is pledged, a lease obligation
ordinarily is backed by the municipality's covenant to budget for,
appropriate and make the payments due under the lease obligations.
However, certain lease obligations contain "non-appropriation" clauses
which provide that the municipality has no obligation to make lease or
installment purchase payments in future years unless money is appropriated
for such purpose on a yearly basis. Although "non-appropriation" lease
obligations are secured by the leased property, disposition of the property
in the event of foreclosure might prove difficult. The staff of the
Securities and Exchange Commission currently considers certain lease
obligations to be illiquid. Determination as to the liquidity of such
securities is made in accordance with guidelines established by the Fund's
Board. Pursuant to such guidelines, the Board has directed the Manager to
monitor carefully the Fund's investment in such securities with particular
regard to (1) the frequency of trades and quotes for the lease obligation;
(2) the number of dealers willing to purchase or sell the lease obligation
and the number of other potential buyers; (3) the willingness of dealers to
undertake to make a market in the lease obligation; (4) the nature of the
marketplace trades including the time needed to dispose of the lease
obligation, the method of soliciting offers and the mechanics of transfer;
and (5) such other factors concerning the trading market for the lease
obligation as the Manager may deem relevant. In addition, in evaluating
the liquidity and credit quality of a lease obligation that is unrated, the
Fund's Board has directed the Manager to consider (a) whether the lease can
be cancelled; (b) what assurance there is that the assets represented by
the lease can be sold; (c) the strength of the lessee's general credit
(e.g., its debt, administrative, economic, and financial characteristics);
(d) the likelihood that the municipality will discontinue appropriating
funding for the leased property because the property is no longer deemed
essential to the operations of the municipality (e.g., the potential for an
"event of nonappropriation"); (e) the legal recourse in the event of
failure to appropriate; and (f) such other factors concerning credit
quality as the Manager may deem relevant. The Fund will not invest more
than 15% of the value of its net assets in lease obligations that are
illiquid and in other illiquid securities. See "Investment Restriction No.
11" below.

The Fund will purchase tender option bonds only when it is satisfied
that the custodial and tender option arrangements, including the fee
payment arrangements, will not adversely affect the tax exempt status of
the underlying Municipal Obligations and that payment of any tender fees
will not have the effect of creating taxable income for the Fund. Based on
the tender option bond agreement, the Fund expects to be able to value the
tender option bond at par; however, the value of the instrument will be
monitored to assure that it is valued at fair value.

Ratings of Municipal Obligations. Subsequent to its purchase by the
Fund, an issue of rated Municipal Obligations may cease to be rated or its
rating may be reduced below the minimum required purchase by the Fund.
Neither event will require the sale of such Minimum Obligations by the
Fund, but the Manager will consider such event in determining whether the
Fund should continue to hold the Municipal Obligations. To the extent the
ratings given by Moody's, S&P or Fitch for Municipal Obligations may change
as a result of changes in such organizations or their rating systems, the
Fund will attempt to use comparable ratings as standards for its
investments in accordance with the investment policies contained in the
Fund's Prospectus and this Statement of Additional Information. The
ratings of Moody's, S&P and Fitch represent their opinions as to the
quality of the Municipal Obligations which they undertake to rate. It
should be emphasized, however, that ratings are relative and subjective and
are not absolute standards of quality. Although these ratings may be an
initial criterion for selection of portfolio investments, the Manager also
will evaluate these securities and the creditworthiness of the issuers of
such securities.

Municipal Bond Index Futures Contracts and Options on such Futures
Contracts. Municipal bond index futures contracts are based on an index of
long-term Municipal Obligations with an original issue size of at least $50
million and a rating of at least A- by S&P, A3 by Moody's or A- by Fitch.
The index assigns relative values to the Municipal Obligations included in
the index, and fluctuates with changes in the market value of the Municipal
Obligations. The contract is an agreement pursuant to which two parties
agree to take or make delivery of an amount of cash based upon the
difference between the value of the index at the close of the last trading
day of the contract and the price at which the index was originally
written. No physical delivery of the underlying Municipal Obligations in
the index is made. The acquisition or sale of a municipal bond index
futures contract enables the Fund to protect its assets from fluctuations
in the value of tax exempt securities without actually buying or selling
the securities. The Fund may purchase and sell put and call options on
municipal bond indexes and municipal bond index futures and enter into
closing transactions to terminate its options positions.

Upon exercise of an option on a futures contract, the writer of the
option delivers to the holder of the option the futures position and the
accumulated balance in the writer's futures margin account, which
represents the amount by which the market price of the futures contract
exceeds, in the case of a call, or is less than, in the case of a put, the
exercise price of the option on the futures contract. The potential loss
related to the purchase of an option on interest rate futures contracts is
limited to the premium paid for the option (plus transaction costs).
Because the value of the option is fixed at the point of sale, there are no
daily cash payments to reflect changes in the value of the underlying
contract; however, the value of the option does change daily and that
change would be reflected in the net asset value of the Fund.

Option Transactions. The principal reason for writing covered call
options is to realize, through the receipt of premiums, a greater return
than would be realized on the Fund's portfolio securities alone. In return
for a premium, the writer of a covered call option forfeits the right to
any appreciation in the value of the underlying security above the strike
price for the life of the option (or until a closing purchase transaction
can be effected). Nevertheless, the call writer retains the risk of a
decline in the price of the underlying security. Similarly, the principal
reason for writing covered put options is to realize income in the form of
premiums. The writer of a covered put option accepts the risk of a decline
in the price of the underlying security. The size of the premiums that the
Fund may receive may be adversely affected as new or existing institutions,
including other investment companies, engage in or increase their
option-writing activities.

Options written ordinarily will have expiration dates between one
and nine months from the date written. The exercise price of the options
may be below, equal to or above the market values of the underlying
securities at the times the options are written. In the case of call
options, these exercise prices are referred to as "in-the-money," "at-the-
money" and "out-of-the-money," respectively. The Fund may write (a) in-
the-money call options when the Manager expects that the price of the
underlying security will remain stable or decline moderately during the
option period, (b) at-the-money call options when the Manager expects that
the price of the underlying security will remain stable or advance
moderately during the option period and (c) out-of-the-money call options
when the Manager expects that the premiums received from writing the call
option plus the appreciation in market price of the underlying security up
to the exercise price will be greater than the appreciation in the price of
the underlying security alone. In these circumstances, if the market price
of the underlying security declines and the security is sold at this lower
price, the amount of any realized loss will be offset wholly or in part by
the premium received. Out-of-the-money, at-the-money and in-the-money put
options (the reverse of call options as to the relation of exercise price
to market price) may be utilized in the same market environments that such
call options are used in equivalent transactions.

So long as the Fund's obligation as the writer of an option
continues, the Fund may be assigned an exercise notice by the broker-dealer
through which the option was sold, requiring the Fund to deliver, in the
case of a call, or take delivery of, in the case of a put, the underlying
security against payment of the exercise price. This obligation terminates
when the option expires or the Fund effects a closing purchase transaction.
The Fund can no longer effect a closing purchase transaction with respect
to an option once it has been assigned an exercise notice. To secure its
obligation to deliver the underlying security when it writes a call option,
or to pay for the underlying security when it writes a put option, the Fund
will be required to deposit in escrow the underlying security or other
assets in accordance with the rules of the Options Clearing Corporation
(the "Clearing Corporation") and of the national securities exchange on
which the option is written.

An option position may be closed out only where there exists a
secondary market for an option of the same series on a recognized national
securities exchange or in the over-thecounter market. Because of this fact
and current trading conditions, the Fund expects to purchase only call or
put options issued by the Clearing Corporation. The Fund expects to write
options on national securities exchanges and in the over-the-counter
market.

Although the Fund generally will purchase or write only those
options for which the Manager believes there is an active secondary market
so as to facilitate closing transactions, there is no assurance that
sufficient trading interest to create a liquid secondary market on a
securities exchange will exist for any particular option or at any
particular time, and for some options no such secondary market may exist.
A liquid secondary market in an option may cease to exist for a variety of
reasons. In the past, for example, higher than anticipated trading
activity or order flow, or other unforeseen events, at times have rendered
certain of the facilities of the Clearing Corporation and the national
securities exchanges inadequate and resulted in the institution of special
procedures, such as trading rotations, restrictions on certain types of
orders or trading halts or suspensions in one or more options. There can
be no assurance that similar events, or events that may otherwise interfere
with the timely execution of customers' orders, will not recur. In such
event, it might not be possible to effect closing transactions in
particular options. If as a covered call option writer the Fund is unable
to effect a closing purchase transaction in a secondary market, it will not
be able to sell the underlying security until the option expires or it
delivers the underlying security upon exercise.

Lending Portfolio Securities. To a limited extent, the Fund may
lend its portfolio securities to brokers, dealers and other financial
institutions, provided it receives cash collateral which at all times is
maintained in an amount equal to at least 100% of the current market value
of the securities loaned. By lending its portfolio securities, the Fund
can increase its income through the investment of the cash collateral. For
purposes of this policy, the Fund considers collateral consisting of U.S.
Government securities or irrevocable letters of credit issued by banks
whose securities meet the standards for investment by the Fund to be the
equivalent of cash. From time to time, the Fund may return to the borrower
or a third party which is unaffiliated with the Fund, and which is acting
as a "placing broker," a part of the interest earned from the investment of
collateral received for securities loaned.

The Securities and Exchange Commission currently requires that the
following conditions must be met whenever portfolio securities are loaned:
(1) the Fund must receive at least 100% cash collateral from the borrower;
(2) the borrower must increase such collateral whenever the market value of
the securities rises above the level of such collateral; (3) the Fund must
be able to terminate the loan at any time; (4) the Fund must receive
reasonable interest on the loan, as well as any interest or other
distributions payable on the loaned securities, and any increase in market
value; and (5) the Fund may pay only reasonable custodian fees in
connection with the loan. These conditions may be subject to future
modification.

Taxable Investments. Securities issued or guaranteed by the U.S.
Government or its agencies or instrumentalities include U.S. Treasury
securities, which differ in their interest rates, maturities and times of
issuance. Treasury Bills have initial maturities of one year or less;
Treasury Notes have initial maturities of one to ten years; and Treasury
Bonds generally have initial maturities of greater than ten years. Some
obligations issued or guaranteed by U.S. Government agencies and
instrumentalities, for example, Government National Mortgage Association
pass-through certificates, are supported by the full faith and credit of
the U.S. Treasury; others, such as those of the Federal Home Loan Banks, by
the right of the issuer to borrow from the U.S. Treasury; others, such as
those issued by the Federal National Mortgage Association, by discretionary
authority of the U.S. Government to purchase certain obligations of the
agency or instrumentality; and others, such as those issued by the Student
Loan Marketing Association, only by the credit of the agency or
instrumentality. These securities bear fixed, floating or variable rates
of interest. Interest may fluctuate based on generally recognized
reference rates or the relationship of rates. While the U.S. Government
provides financial support to such U.S. Government-sponsored agencies or
instrumentalities, no assurance can be given that it will always do so,
since it is not so obligated by law. The Fund will invest in such
securities only when it is satisfied that the credit risk with respect to
the issuer is minimal.

Commercial paper consists of short-term, unsecured promissory notes
issued to finance short-term credit needs.

Certificates of deposit are negotiable certificates representing the
obligation of a bank to repay funds deposited with it for a specified
period of time.

Time deposits are non-negotiable deposits maintained in a banking
institution for a specified period of time (in no event longer than seven
days) at a stated interest rate. Investments in time deposits generally
are limited to London branches of domestic banks that have total assets in
excess of one billion dollars. Time deposits which may be held by the Fund
will not benefit from insurance from the Bank Insurance Fund or the Savings
Association Insurance Fund administered by the Federal Deposit Insurance
Corporation.

Bankers' acceptances are credit instruments evidencing the
obligation of a bank to pay a draft drawn on it by a customer. These
instruments reflect the obligation both of the bank and of the drawer to
pay the face amount of the instrument upon maturity. Other short-term bank
obligations may include uninsured, direct obligations bearing fixed,
floating or variable interest rates.

Repurchase agreements involve the acquisition by the Fund of an
underlying debt instrument, subject to an obligation of the seller to
repurchase, and the Fund to resell, the instrument at a fixed price,
usually not more than one week after its purchase. The Fund's custodian or
sub-custodian will have custody of, and will hold in a segregated account,
securities acquired by the Fund under a repurchase agreement. Repurchase
agreements are considered by the staff of the Securities and Exchange
Commission to be loans by the Fund. In an attempt to reduce the risk of
incurring a loss on a repurchase agreement, the Fund will enter into
repurchase agreements only with domestic banks with total assets in excess
of one billion dollars or primary government securities dealers reporting
to the Federal Reserve Bank of New York, with respect to securities of the
type in which the Fund may invest, and will require that additional
securities be deposited with it if the value of the securities purchased
should decrease below resale price. The Manager will monitor on an ongoing
basis the value of the collateral to assure that it always equals or
exceeds the repurchase price. In addition, if bankruptcy proceedings are
commenced with respect to the seller of the securities, realization on the
securities by the Fund may be delayed or limited. Certain costs may be
incurred by the Fund in connection with the sale of the securities if the
seller does not repurchase them in accordance with the repurchase
agreement. The Fund will consider on an ongoing basis the creditworthiness
of the institutions with which it enters into repurchase agreements.

Investment Restrictions. The Fund has adopted investment
restrictions numbered 1 through 7 as fundamental policies. These
restrictions cannot be changed without approval by the holders of a
majority (as defined in the Investment Company Act of 1940, as amended (the
"Act")) of the Fund's outstanding voting shares. Investment restrictions
numbered 8 through 12 are not fundamental policies and may be changed by
vote of a majority of the Trustees at any time. The Fund may not:

1. Invest more than 25% of its assets in the securities of
issuers in any single industry; provided that there shall be no limitation
on the purchase of Municipal Obligations and, for temporary defense
purposes, securities issued by banks and obligations issued or guaranteed
by the U.S. Government, its agencies or instrumentalities.

2. Borrow money, except from banks for temporary or emergency
(not leveraging) purposes in an amount up to 15% of the value of the Fund's
total assets (including the amount borrowed) based on 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 the value of the
Fund's total assets, the Fund will not make any additional investments.
For purposes of this Investment Restriction, the entry into options,
forward contracts, futures contracts, including those relating to indexes,
and options on futures contracts or indexes shall not constitute borrowing.

3. Purchase or sell real estate, commodities or commodity
contracts, or oil and gas interests, but this shall not prevent the Fund
from purchasing and selling options, forward contracts, futures contracts,
including those relating to indexes, and options on futures contracts or
indexes.

4. Underwrite the securities of other issuers, except that the
Fund may bid separately or as part of a group for the purchase of Municipal
Obligations directly from an issuer for its own portfolio to take advantage
of the lower purchase price available, and except to the extent the Fund
may be deemed an underwriter under the Securities Act of 1933, as amended,
by virtue of disposing of portfolio securities.

5. Make loans to others, except through the purchase of debt
obligations and the entry into repurchase agreements; however, the Fund may
lend its portfolio securities in an amount not to exceed 33 1/3% of the value
of its total assets. Any loans of portfolio securities will be made
according to guidelines established by the Securities and Exchange
Commission and the Fund's Board of Trustees.

6. Issue any senior security (as such term is defined in
Section 18(f) of the Act), except to the extent that the activities
permitted in Investment Restrictions numbered 2, 3 and 10 may be deemed to
give rise to a senior security.

7. Sell securities short of purchase securities on margin, but
the Fund may make margin deposits in connection with transactions in
options, forward contracts, futures contracts, including those relating to
indexes, and options on futures contracts or indexes.

8. Purchase securities other than Municipal Obligations and
Taxable Investments and those arising out of transactions in futures and
options or as otherwise provided in the Fund's Prospectus.

9. Invest in securities of other investment companies, except to
the extent permitted under the Act.

10. Pledge, hypothecate, mortgage or otherwise encumber its
assets, except to the extent necessary to secure borrowings for temporary
or emergency purposes and to the extent related to the deposit of assets in
escrow in connection with the purchase of securities on a when-issued or
delayed-delivery basis and collateral and initial or variation margin
arrangements with respect to options, forward contracts, futures contracts,
including those related to indexes, and options on futures contracts or
indexes.

11. Enter into repurchase agreements providing for settlement in
more than seven days after notice or purchase securities which are illiquid
(which securities could include participation interests (including
municipal lease/purchase agreements) that are not subject to the demand
feature described in the Fund's Prospectus, and floating and variable rate
demand obligations as to which the Fund cannot exercise the demand feature
described in the Fund's Prospectus on less than seven days' notice and as
to which there is no secondary market), if, in the aggregate, more than 15%
of its net assets would be so invested.

12. Invest in companies for the purpose of exercising control.

In addition to the investment restrictions adopted as fundamental
policies set forth above, the Fund may not engage in arbitrage
transactions, nor may it invest in warrants, valued at the lesser of cost
or market, if they exceed 5% of the value of the Fund's net assets.
Included within that amount, but not to exceed 2% of the value of the
Fund's net assets, may be warrants which are not listed on the New York or
American Stock Exchange. Warrants acquired by the Fund in units or
attached to securities are not included within such percentage
restrictions.

For purposes of Investment Restriction No. 1, industrial development
bonds, where the payment of principal and interest is the ultimate
responsibility of companies within the same industry, are grouped together
as an "industry."

If a percentage restriction is adhered to at the time of investment,
a later increase in percentage resulting from a change in values or assets
will not constitute a violation of such restriction.

The Fund may make commitments more restrictive than the restrictions
listed above so as to permit the sale of Fund shares in certain states.
Should the Fund determine that a commitment is no longer in the best
interests of the Fund and its shareholders, the Fund reserves the right to
revoke the commitment by terminating the sale of Fund shares in the state
involved.

MANAGEMENT OF THE FUND

Trustees and officers of the Fund, together with information as to
their principal business occupations during at least the last five years,
are shown below. Each Trustee who is deemed to be an "interested person"
of the Fund, as defined in the Act, is indicated by an asterisk.

Trustees and Officers of the Fund

LUCY WILSON BENSON, Trustee. President of Benson and Associates,
consultants to business and government. Mrs. Benson is a director
of Communications Satellite Corporation, General RE Corporation and
Logistics Management Institute. She is also a Trustee of the Alfred
P. Sloan Foundation, Vice Chairman of the Board of Trustees of
Lafayette College, Vice Chairman of the Citizens Network for Foreign
Affairs and a member of the Council on Foreign Relations. Mrs.
Benson served as a consultant to the U.S. Department of State and to
SRI International from 1980 to 1981. From 1977 to 1980, she was
Under Secretary of State for Security Assistance, Science and
Technology. Her address is 46 Sunset Avenue, Amherst, Massachusetts
01002.

*DAVID W. BURKE, Trustee. Vice President and Chief Administrative
Officer of the Manager since October 1990, and a director or trustee
of other investment companies advised and administered by the
Manager. From 1977 to 1990, Mr. Burke was involved in the
management of national television news, as Vice President and
Executive Vice President of ABC News, and subsequently as President
of CBS News. His address is 200 Park Avenue, New York, New York
10166.

MARTIN D. FIFE, Trustee. President of Fife Associates, Inc. and other
companies engaged in the chemical and plastics industries. His
address is 30 Rockefeller Plaza, New York, New York 10112.

WHITNEY I. GERARD, Trustee. Partner of the New York City law firm of
Chadbourne & Parke. His address is 30 Rockefeller Plaza, New York,
New York 10112.

ROBERT R. GLAUBER, Trustee. Research Fellow, Center for Business and
Government at the John F. Kennedy School of Government, Harvard
University, since January 1992. Mr. Glauber was Under Secretary of
the Treasury for Finance at the U.S. Treasury Department from May
1989 to January 1992. For more than five years prior thereto, he
was a Professor of Finance at the Graduate School of Business
Administration of Harvard University and, from 1985 to 1989,
Chairman of its Advanced Management Program. His address is 79 John
F. Kennedy Street, Cambridge, Massachusetts 02138.

ARTHUR A. HARTMAN, Trustee. Senior consultant with APCO Associates Inc.
From 1981 to 1987, he was United States Ambassador to the former
Soviet Union. He is a director of the ITT Hartford Insurance Group,
Lawter International and Ford Meter Box Corporation and a member of
the advisory councils of several other companies, research
institutes and foundations. He is President of the Harvard Board of
Overseers. His address is 2738 McKinley Street, N.W., Washington,
D.C. 20015.

*RICHARD J. MOYNIHAN, Trustee, President and Investment Officer. An
employee of the Manager and an officer, director or trustee of other
investment companies advised or administered by the Manager. His
address is 200 Park Avenue, New York, New York 10166.

GEORGE L. PERRY, Trustee. An economist and Senior Fellow at the Brookings
Institution since 1969. He is co-director of the Brookings Panel on
Economic Activity and editor of its journal, The Brookings Papers.
He is also a director of the State Farm Mutual Automobile
Association, State Farm Life Insurance Company and Federal Realty
Investment Trust. His address is 1775 Massachusetts Avenue, N.W.,
Washington, D.C. 20036.

PAUL D. WOLFOWITZ, Trustee. Dean of The Paul H. Nitze School of
Advanced International Studies at Johns Hopkins University. From
1989 to 1993, he was Under Secretary of Defense for Policy. From
1986 to 1989, he was the U.S. Ambassador to the Republic of
Indonesia. From 1982 to 1986, he was Assistant Secretary of State
of East Asian and Pacific Affairs of the Department of State. His
address is 1740 Massachusetts Avenue, N.W., Washington, D.C. 20036.

The "non-interested" Trustees are also directors of The Dreyfus Fund
Incorporated, Dreyfus California Municipal Income, Inc., Dreyfus Municipal
Income, Inc., Dreyfus New York Municipal Income, Inc., Dreyfus Short-Term
Income Fund, Inc. and Dreyfus Asset Allocation Fund, Inc. Each of the
"non-interested" Trustees, except Mr. Glauber, is also a director of
Dreyfus Liquid Assets, Inc. and a trustee of Dreyfus Short-Intermediate
Government Fund. Each of the "non-interested" Trustees except Mr.
Wolfowitz is also a director of the Dreyfus Worldwide Dollar Money Market
Fund, Inc. Mrs. Benson also is a director of The Dreyfus Third Century
Fund and The Dreyfus Socially Responsible Growth Fund, Inc.

For so long as the Fund's plan described in the section captioned
"Service Plan" remains in effect, the Trustees of the Fund who are not
"interested persons" of the Fund, as defined in the Act, will be selected
and nominated by the Trustees who are not "interested persons" of the Fund.

The Fund does not pay any remuneration to its officers and Trustees,
other than fees and expenses to those Trustees who are not officers,
directors, employees or holders of 5% or more of the outstanding voting
securities of the Manager, which totalled $41,048 for the fiscal year ended
March 31, 1994 for all such Trustees as a group.

Each Trustee, except for Messrs. Burke and Wolfowitz, was elected at
a meeting of shareholders held on November 20, 1992. No further meetings
of shareholders will be held for the purpose of electing Trustees unless
and until such time as less than a majority of the Trustees holding office
have been elected by shareholders, at which time the Trustees then in
office will call a shareholders' meeting for the election of Trustees.
Under the Act, shareholders of record of not less than two-thirds of the
outstanding shares of the Fund may remove a Trustee through a declaration
in writing or by vote cast in person or by proxy at a meeting called for
that purpose. Under the Fund's Agreement and Declaration of Trust, the
Trustees are required to call a meeting of shareholders for the purpose of
voting upon the question of removal of any such Trustee when requested in
writing to do so by the shareholders of record of not less than 10% of the
Fund's outstanding shares.

Officers of the Fund Not Listed Above

A. PAUL DISDIER, Vice President and Investment Officer. An employee of the
Manager and an officer of other investment companies advised and
administered by the Manager.

KAREN M. HAND, Vice President and Investment Officer. An employee of the
Manager and an officer of other investment companies advised and
administered by the Manager.

STEPHEN C. KRIS, Vice President and Investment Officer. An employee of the
Manager and an officer of other investment companies advised and
administered by the Manager.

JILL C. SHAFFRO, Vice President and Investment Officer. An employee of the
Manager and an officer of other investment companies advised or
administered by the Manager.

L. LAWRENCE TROUTMAN, Vice President and Investment Officer. An employee
of the Manager and an officer of other investment companies advised
and administered by the Manager.

SAMUEL J. WEINSTOCK, Vice President and Investment Officer. An employee of
the Manager and an officer of other investment companies advised and
administered by the Manager.

MONICA S. WIEBOLDT, Vice President and Investment Officer. An employee of
the Manager and an officer of other investment companies advised and
administered by the Manager.

DANIEL C. MACLEAN, Vice President. Vice President and General Counsel of
the Manager, Secretary of the Distributor and an officer or director
of other investment companies advised or administered by the
Manager.

JEFFREY N. NACHMAN, Vice President-Financial. Vice President--Mutual Fund
Accounting of the Manager and an officer of other investment
companies advised or administered by the Manager.

JOHN J. PYBURN, Treasurer. Assistant Vice President of the Manager and an
officer of other investment companies advised or administered by the
Manager.

GREGORY S. GRUBER, Controller. An employee of the Manager and an officer
of other investment companies advised or administered by the
Manager.

MARK N. JACOBS, Secretary. Secretary and Deputy General Counsel of the
Manager and an officer of other investment companies advised or
administered by the Manager.

STEVEN F. NEWMAN, Assistant Secretary. Associate General Counsel of the
Manager and an officer of other investment companies advised or
administered by the Manager.

CHRISTINE PAVALOS, Assistant Secretary. Assistant Secretary of the
Manager, the Distributor and other investment companies advised or
administered by the Manager.

The address of each officer of the Fund is 200 Park Avenue, New
York, New York 10166.

Trustees and officers of the Fund, as a group, owned less than 1% of
the Fund's shares of beneficial interest outstanding on June 22, 1994.

The following persons are also officers and/or directors of the
Manager: Howard Stein, Chairman of the Board and Chief Executive Officer;
Julian M. Smerling, Vice Chairman of the Board of Directors; Joseph S.
DiMartino, President, Chief Operating Officer and a director; Alan M.
Eisner, Vice President and Chief Financial Officer; Robert F. Dubuss, Vice
President; Elie M. Genadry, Vice President--Institutional Sales; Peter A.
Santoriello, Vice President; Philip L. Toia, Vice President--Fixed-Income
Research; Katherine C. Wickham, Assistant Vice President--Human Resources;
Maurice Bendrihem, Controller; and Mandell L. Berman, Alvin E. Friedman,
Lawrence M. Greene, Abigail Q. McCarthy and David B. Truman, directors.

MANAGEMENT AGREEMENT

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Management
of the Fund."

The Manager provides management services pursuant to the Management
Agreement (the "Agreement") dated February 9, 1987 with the Fund, which is
subject to annual approval by (i) the Fund's Board of Trustees or (ii) vote
of a majority (as defined in the Act) of the outstanding voting securities
of the Fund, provided that in either event the continuance also is approved
by a majority of the Trustees who are not "interested persons" (as defined
in the Act) of the Fund or the Manager, by vote cast in person at a meeting
called for the purpose of voting on such approval. The Agreement was
approved by shareholders of the Fund on November 4, 1988 and was last
approved by the Fund's Board of Trustees, including a majority of the
Trustees who are not "interested persons" of any party to the Agreement, at
a meeting held on January 27, 1994. The Agreement is terminable without
penalty, on 60 days' notice, by the Fund's Board of Trustees or by vote of
the holders of a majority of the outstanding voting securities of the Fund,
or, on not less than 90 days' notice, by the Manager. The Agreement will
terminate automatically in the event of its assignment (as defined in the
Act).

The Manager manages the Fund's portfolio of investments in
accordance with the stated policies of the Fund, subject to the approval of
the Fund's Board of Trustees. The Manager is responsible for investment
decisions, and provides the Fund with Investment Officers who are
authorized by the Board of Trustees to execute purchases and sales of
securities. The Fund's Investment Officers are A. Paul Disdier, Karen M.
Hand, Stephen C. Kris, Richard J. Moynihan, Jill C. Shaffro, L. Lawrence
Troutman, Samuel J. Weinstock and Monica S. Wieboldt. The Manager also
maintains a research department with a professional staff of portfolio
managers and securities analysts who provide research services for the Fund
as well as for other funds advised by the Manager. All purchases and sales
are reported for the Board's review at the meeting subsequent to such
transactions.

All expenses incurred in the operation of the Fund are borne by the
Fund, except to the extent specifically assumed by the Manager. The
expenses borne by the Fund include: taxes, interest, brokerage fees and
commissions, if any, fees of Trustees who are not officers, directors,
employees or holders of 5% or more of the outstanding voting securities of
the Manager, Securities and Exchange Commission fees, state Blue Sky
qualification fees, advisory fees, charges of custodians, transfer and
dividend disbursing agents' fees, certain insurance premiums, industry
association fees, outside auditing and legal expenses, costs of maintaining
the Fund's existence, costs of independent pricing services, costs
attributable to investor services (including, without limitation, telephone
and personnel expenses), costs of shareholders' reports and meetings and
any extraordinary expenses. Pursuant to the Fund's Service Plan, the Fund
bears expenses for advertising, marketing and distributing the Fund's
shares and servicing shareholder accounts, and also bears the costs of
preparing and printing prospectuses and statements of additional
information and costs associated with implementing and operating such plan.
See "Service Plan."

The Manager pays the salaries of all officers and employees employed
by both it and the Fund, maintains office facilities, and furnishes
statistical and research data, clerical help, accounting, data processing,
bookkeeping and internal auditing and certain other required services. The
Manager also may make such advertising and promotional expenditures, using
its own resources, as it from time to time deems appropriate.

As compensation for the Manager's services, the Fund has agreed to
pay the Manager a monthly management fee at the annual rate of .50 of 1% of
the value of the Fund's average daily net assets. All fees and expenses
are accrued daily and deducted before declaration of dividends to
investors. For the fiscal years ended March 31, 1992, 1993 and 1994, the
Fund paid the Manager management fees of $618,157, $1,490,990 and
$2,574,441, respectively.

The Manager has agreed that if in any fiscal year the aggregate
expenses of the Fund, exclusive of taxes, brokerage, interest on borrowings
and (with the prior written consent of the necessary state securities
commissions) extraordinary expenses, but including the management fee,
exceed 1 1/2% of the value of the Fund's average net assets for the fiscal
year, the Fund may deduct from the payment to be made to the Manager under
the Agreement, or the Manager will bear, such excess expense. Such
deduction or payment, if any, will be estimated daily, and reconciled and
effected or paid, as the case may be, on a monthly basis. No expense
reimbursement was required under the expense limitation for the fiscal year
ended March 31, 1994.

The aggregate of the fees payable to the Manager is not subject to
reduction as the value of the Fund's net assets increases.

PURCHASE OF FUND SHARES

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to Buy
Fund Shares."

The Distributor. The Distributor serves as the Fund's distributor
pursuant to an agreement which is renewable annually. The Distributor also
acts as distributor for the other funds in the Dreyfus Family of Funds and
for certain other investment companies.

Dreyfus TeleTransfer Privilege. Dreyfus TeleTransfer purchase
orders may be made between the hours of 8:00 A.M. and 4:00 P.M., New York
time, on any business day that The Shareholder Services Group, Inc., the
Fund's transfer and dividend disbursing agent (the "Transfer Agent"), and
the New York Stock Exchange are open. Such purchases will be credited to
the shareholder's Fund account on the next bank business day. To qualify
to use Dreyfus TeleTransfer Privilege, the initial payment for purchase of
Fund shares must be drawn on, and redemption proceeds paid to, the same
bank and account as are designated on the Account Application or
Shareholder Services Form on file. If the proceeds of a particular
redemption are to be wired to an account at any other bank, the request
must be in writing and signature-guaranteed. See "Redemption of Fund
Shares--Dreyfus TeleTransfer Privilege."

Reopening an Account. An investor may reopen an account with a
minimum investment of $100 without filing a new Account Application during
the calendar year the account is closed or during the following calendar
year, provided the information on the old Account Application is still
applicable.

SERVICE PLAN

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Service
Plan."

Rule 12b-1 (the "Rule") adopted by the Securities and Exchange
Commission under the Act, provides, among other things, that an investment
company may bear expenses of distributing its shares only pursuant to a
plan adopted in accordance with the Rule. Because some or all of the
expenses incurred for advertising and marketing the Fund's shares and fees
paid to certain securities dealers, financial institutions (which may
include banks) and other industry professionals (collectively, "Service
Agents") could be deemed to be payment of distribution expenses, the Fund's
Board of Trustees has adopted such a plan (the "Plan"). The Fund's Board
of Trustees believes that there is a reasonable likelihood that the Plan
will benefit the Fund and its shareholders. In some states, banks or other
financial institutions effecting transactions in Fund shares may be
required to register as dealers pursuant to state law.

A report of the amounts expended under the Plan, and the purposes
for which such expenditures were incurred, must be made to the Board of
Trustees for its review at least quarterly. In addition, the Plan provides
that it may not be amended to increase materially the costs which the Fund
may bear for distribution pursuant to the Plan without shareholder approval
and that other material amendments of the Plan must be approved by the
Board of Trustees, and by the Trustees who are not "interested persons" (as
defined in the Act) of the Fund or the Manager and have no direct or
indirect financial interest in the operation of the Plan or in the related
service agreements, by vote cast in person at a meeting called for the
purpose of considering such amendments. The Plan and the related service
agreements are subject to annual approval by such vote of the Trustees cast
in person at a meeting called for the purpose of voting on the Plan. The
Plan was so approved at a meeting held on January 27, 1994. The Plan is
terminable at any time by vote of a majority of the Trustees who are not
"interested persons" and have no direct or indirect financial interest in
the operation of the Plan or in any of the related service agreements or by
vote of a majority of the Fund's shares. Any service agreement is
terminable without penalty, at any time, by such vote of the Fund's
Trustees or, upon not more than 60 days' written notice to the Service
Agent, by vote of the holders of a majority of the Fund's shares, or, upon
15 days' notice, by the Distributor. Each service agreement will terminate
automatically in the event of its assignment (as defined in the Act).

Pursuant to the Plan, $532,280 was charged to the Fund for the
fiscal year ended March 31, 1994, of which $17,392 was paid for preparing,
printing and distributing prospectuses and statements of additional
information.

REDEMPTION OF FUND SHARES

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to
Redeem Fund Shares."

Check Redemption Privilege. An investor may indicate on the Account
Application or by later written request that the Fund provide Redemption
Checks ("Checks") drawn on the Fund's account. Checks will be sent only to
the registered owner(s) of the account and only to the address of record.
The Account Application or later written request must be manually signed by
the registered owner(s). Checks may be made payable to the order of any
person in an amount of $500 or more. When a Check is presented to the
Transfer Agent for payment, the Transfer Agent, as the investor's agent,
will cause the Fund to redeem a sufficient number of shares in the
investor's account to cover the amount of the Check. Dividends are earned
until the Check clears. After clearance, a copy of the Check will be
returned to the investor. Investors generally will be subject to the same
rules and regulations that apply to checking accounts, although election of
this Privilege creates only a shareholder-transfer agent relationship with
the Transfer Agent.

If the amount of the Check is greater than the value of the shares
in an investor's account, the Check will be returned marked insufficient
funds. Checks should not be used to close an account.

Wire Redemption Privilege. By using this Privilege, the investor
authorizes the Transfer Agent to act on wire or telephone redemption
instructions from any person representing himself or herself to be the
investor, or a representative of the investor's Service Agent, and
reasonably believed by the Transfer Agent to be genuine. Ordinarily, the
Fund will initiate payment for shares redeemed pursuant to this Privilege
on the next business day after receipt by the Transfer Agent of a
redemption request in proper form. Redemption proceeds will be transferred
by Federal Reserve wire only to the commercial bank account specified by
the investor on the Account Application or Shareholder Services Form.
Redemption proceeds, if wired, must be in the amount of $1,000 or more and
will be wired to the investor's account at the bank of record designated in
the investor's file at the Transfer Agent, if the investor's bank is a
member of the Federal Reserve System, or to a correspondent bank if the
investor's bank is not a member. Fees ordinarily are imposed by such bank
and usually are borne by the investor. Immediate notification by the
correspondent bank to the investor's bank is necessary to avoid a delay in
crediting the funds to the investor's bank account.

Investors with access to telegraphic equipment may wire redemption
requests to the Transfer Agent by employing the following transmittal code
which may be used for domestic or overseas transmissions:

Transfer Agent's
Transmittal Code Answer Back Sign

144295 144295 TSSG PREP

Investors who do not have direct access to telegraphic equipment may
have the wire transmitted by contacting a TRT Cables operator at
1-800-654-7171, toll free. Investors should advise the operator that the
above transmittal code must be used and should also inform the operator of
the Transfer Agent's answer back sign.

To change the commercial bank or account designated to receive
redemption proceeds, a written request must be sent to the Transfer Agent.
This request must be signed by each shareholder, with each signature
guaranteed as described below under "Share Certificates; Signatures."

Dreyfus TeleTransfer Privilege. Investors should be aware that if
they also have selected the Dreyfus TeleTransfer Privilege, any request for
a wire redemption will be effected as a Dreyfus TeleTransfer transaction
through the Automated Clearing House (ACH) system unless more prompt
transmittal specifically is requested. Redemption proceeds will be on
deposit in the investor's account at an ACH member bank ordinarily two
business days after receipt of the redemption request. See "Purchase of
Fund Shares--Dreyfus TeleTransfer Privilege."

Share Certificates; Signatures. Any certificate representing Fund
shares to be redeemed must be submitted with the redemption request.
Written redemption requests must be signed by each shareholder, including
each holder of a joint account, and each signature must be guaranteed.
Signatures on endorsed certificates submitted for redemption also must be
guaranteed. The Transfer Agent has adopted standards and procedures
pursuant to which signature-guarantees in proper form generally will be
accepted from domestic banks, brokers, dealers, credit unions, national
securities exchanges, registered securities associations, clearing agencies
and savings associations, as well as from participants in the New York
Stock Exchange Medallion Signature Program, the Securities Transfer Agents
Medallion Program ("STAMP") and the Stock Exchanges Medallion Program.
Guarantees must be signed by an authorized signatory of the guarantor and
"Signature-Guaranteed" must appear with the signature. The Transfer Agent
may request additional documentation from corporations, executors,
administrators, trustees or guardians, and may accept other suitable
verification arrangements from foreign investors, such as consular
verification. For more information with respect to signature-guarantees,
please call one of the telephone numbers listed on the cover.

Redemption Commitment. The Fund has committed itself to pay in cash
all redemption requests by any shareholder of record, limited in amount
during any 90-day period to the lesser of $250,000 or 1% of the value of
the Fund's net assets at the beginning of such period. Such commitment is
irrevocable without the prior approval of the Securities and Exchange
Commission. In the case of requests for redemption in excess of such
amount, the Board of Trustees reserves the right to make payments in whole
or in part in securities or other assets of the Fund in case of an
emergency or any time a cash distribution would impair the liquidity of the
Fund to the detriment of the existing shareholders. In such event, the
securities would be valued in the same manner as the Fund's portfolio is
valued. If the recipient sold such securities, brokerage charges would be
incurred.

Suspension of Redemptions. The right of redemption may be suspended
or the date of payment postponed (a) during any period when the New York
Stock Exchange is closed (other than customary weekend and holiday
closings), (b) when trading in the markets the Fund ordinarily utilizes is
restricted, or when an emergency exists as determined by the Securities and
Exchange Commission so that disposal of the Fund's investments or
determination of its net asset value is not reasonably practicable, or (c)
for such other periods as the Securities and Exchange Commission by order
may permit to protect the Fund's shareholders.

SHAREHOLDER SERVICES

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Shareholder
Services."

Exchange Privilege. Shares of other funds purchased by exchange
will be purchased on the basis of relative net asset value per share as
follows:

A. Exchanges for shares of funds that are offered without a
sales load will be made without a sales load.

B. Shares of funds purchased without a sales load may be
exchanged for shares of other funds sold with a sales load,
and the applicable sales load will be deducted.

C. Shares of any funds purchased with a sales load may be
exchanged without a sales load for shares of other funds sold
without a sales load.

D. Shares of funds purchased with a sales load, shares of funds
acquired by a previous exchange from shares purchased with a
sales load, and additional shares acquired through
reinvestment of dividends or distributions of any such funds
(collectively referred to herein as "Purchased Shares") may
be exchanged for shares of other funds sold with a sales load
(referred to herein as "Offered Shares"), provided that, if
the sales load applicable to the Offered Shares exceeds the
maximum sales load that could have been imposed in connection
with the Purchased Shares (at the time the Purchased Shares
were acquired), without giving effect to any reduced loads,
the difference will be deducted.

To accomplish an exchange under item D above, shareholders must
notify the Transfer Agent of their prior ownership of fund shares and their
account number.

To use this Privilege, a shareholder, or the shareholder's Service
Agent acting on his behalf, must give exchange instructions to the Transfer
Agent in writing, by wire or by telephone. Telephone exchanges may be made
only if the appropriate "YES" box has been checked on the Account
Application or a separate signed Shareholder Services Form is on file with
the Transfer Agent. By using this Privilege, the investor authorizes the
Transfer Agent to act on exchange instructions from any person representing
himself or herself to be the investor, or a representative of the
investor's Service Agent, and reasonably believed by the Transfer Agent to
be genuine. Telephone exchanges may be subject to limitations as to the
amount involved or the number of telephone exchanges permitted. Shares
issued in certificate form are not eligible for telephone exchange.

To establish a Personal Retirement Plan by exchange, shares of the
fund being exchanged must have a value of at least the minimum initial
investment required for the fund into which the exchange is being made.
For Dreyfus-sponsored Keogh plans, IRAs and IRAs set up under a Simplified
Employee Pension Plan ("SEP-IRAs") with only one participant, the minimum
initial investment is $750. To exchange shares held in Corporate Plans,
403(b)(7) plans and SEP-IRAs with more than one participant, the minimum
initial investment is $100 if the plan has at least $2,500 invested among
the funds in the Dreyfus Family of Funds. To exchange shares held in
Personal Retirement Plans, the shares exchanged must have a current value
of at least $100.

Dreyfus Auto-Exchange Privilege. Dreyfus Auto-Exchange Privilege
permits an investor to purchase, in exchange for shares of the Fund, shares
of another fund in the Dreyfus Family of Funds. This Privilege is
available only for existing accounts. Shares will be exchanged on the
basis of relative net asset value as described above under "Exchange
Privilege." Enrollment in or modification or cancellation of this Privilege
is effective three business days following notification by the investor.
An investor will be notified if his account falls below the amount
designated to be exchanged under this Privilege. In this case, an
investor's account will fall to zero unless additional investments are made
in excess of the designated amount prior to the next Auto-Exchange
transaction. Shares held under IRA and other retirement plans are eligible
for this Privilege. Exchanges of IRA shares may be made between IRA
accounts and from regular accounts to IRA accounts, but not from IRA
accounts to regular accounts. With respect to all other retirement
accounts, changes may be made only among those accounts.

The Exchange Privilege and Dreyfus Auto-Exchange Privilege are
available to shareholders resident in any state in which the shares of the
fund being acquired may be legally sold. Shares may be exchanged only
between accounts having identical names and other identifying designations.

Shareholder Services Forms and prospectuses of the other funds may
be obtained from the Distributor, 144 Glenn Curtiss Boulevard, Uniondale,
New York 11556-0144. The Fund reserves the right to reject any exchange
request in whole or in part. The Exchange Privilege or Dreyfus Auto-
Exchange Privilege may be modified or terminated at any time upon notice to
shareholders.

Automatic Withdrawal Plan. The Automatic Withdrawal Plan permits an
investor with a $5,000 minimum account to request withdrawal of a specified
dollar amount (minimum of $50) on either a monthly or quarterly basis.
Withdrawal payments are the proceeds from sales of Fund shares, not the
yield on the shares. If withdrawal payments exceed reinvested dividends
and distributions, the investor's shares will be reduced and eventually may
be depleted. An Automatic Withdrawal Plan may be established by completing
the appropriate application available from the Distributor. There is a
service charge of $.50 for each withdrawal check. Automatic Withdrawal may
be terminated at any time by the investor, the Fund or the Transfer Agent.
Shares for which certificates have been issued may not be redeemed through
the Automatic Withdrawal Plan.

Dreyfus Dividend Sweep. Dreyfus Dividend Sweep allows investors to
invest on the payment date their dividends or dividends and capital gain
distributions, if any, from the Fund in shares of another fund in the
Dreyfus Family of Funds of which the investor is a shareholder. Shares of
other funds purchased pursuant to the privilege will be purchased on the
basis of relative net asset value per share as follows:

A. Dividends and distributions paid by a fund may be invested
without imposition of a sales load in shares of other funds
that are offered without a sales load.

B. Dividends and distributions paid by a fund which does not
charge a sales load may be invested in shares of other funds
sold with a sales load, and the applicable sales load will be
deducted.

C. Dividends and distributions paid by a fund which charges a
sales load may be invested in shares of other funds sold with
a sales load (referred to herein as "Offered Shares"),
provided that, if the sales load applicable to the Offered
Shares exceeds the maximum sales load charged by the fund
from which dividends or distributions are being swept,
without giving effect to any reduced loads, the difference
will be deducted.

D. Dividends and distributions paid by a fund may be invested in
shares of other funds that impose a contingent deferred sales
charge ("CDSC") and the applicable CDSC, if any, will be
imposed upon redemption of such shares.

DETERMINATION OF NET ASSET VALUE

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "How to Buy
Fund Shares."

Valuation of Portfolio Securities. The Fund's investments are
valued each business day by an independent pricing service (the "Service")
approved by the Board of Trustees. When, in the judgment of the Service,
quoted bid prices for investments are readily available and are
representative of the bid side of the market, these investments are valued
at the mean between the quoted bid prices (as obtained by the Service from
dealers in such securities) and asked prices (as calculated by the Service
based upon its evaluation of the market for such securities). Other
investments (which constitute a majority of the portfolio securities) are
carried at fair value as determined by the Service, based on methods which
include consideration of: yields or prices of municipal bonds of
comparable quality, coupon, maturity and type; indications as to values
from dealers; and general market conditions. The Service may employ
electronic data processing techniques and/or a matrix system to determine
valuations. The Service's procedures are reviewed by the Fund's officers
under the general supervision of the Board of Trustees. Expenses and fees,
including the management fee (reduced by the expense limitation, if any)
and fees pursuant to the Service Plan, are accrued daily and are taken into
account for the purpose of determining the net asset value of Fund shares.

New York Stock Exchange Closings. The holidays (as observed) on
which the New York Stock Exchange is closed currently are: New Year's Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving and Christmas.

PORTFOLIO TRANSACTIONS

Portfolio securities ordinarily are purchased from and sold to
parties acting as either principal or agent. Newly-issued securities
ordinarily are purchased directly from the issuer or from an underwriter;
other purchases and sales usually are placed with those dealers from which
it appears that the best price or execution will be obtained. Usually no
brokerage commissions, as such, are paid by the Fund for such purchases and
sales, although the price paid usually includes an undisclosed compensation
to the dealer acting as agent. The prices paid to underwriters of
newly-issued securities usually include a concession paid by the issuer to
the underwriter, and purchases of after-market securities from dealers
ordinarily are executed at a price between the bid and asked price. No
brokerage commissions have been paid by the Fund to date.

Transactions are allocated to various dealers by the Fund's
Investment Officers in their best judgment. The primary consideration is
prompt and effective execution of orders at the most favorable price.
Subject to that primary consideration, dealers may be selected for
research, statistical or other services to enable the Manager to supplement
its own research and analysis with the views and information of other
securities firms and may be selected based upon their sales of Fund shares.

Research services furnished by brokers through which the Fund
effects securities transactions may be used by the Manager in advising
other funds it advises and, conversely, research services furnished to the
Manager by brokers in connection with other funds the Manager advises may
be used by the Manager in advising the Fund. Although it is not possible
to place a dollar value on these services, it is the opinion of the Manager
that the receipt and study of such services should not reduce the overall
expenses of its research department.

DIVIDENDS, DISTRIBUTIONS AND TAXES

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Dividends,
Distributions and Taxes."

Management believes that the Fund qualified for the fiscal year
ended March 31, 1994 as a "regulated investment company" under the Internal
Revenue Code of 1986, as amended (the "Code"). The Fund intends to
continue to so qualify if such qualification is in the best interests of
its shareholders. Among the requirements for such qualification is that
less than 30% of the Fund's annual gross income must be derived from gains
from the sale or other disposition of securities held for less than three
months. Accordingly, the Fund may be restricted in selling securities held
for less than three months, in writing options which expire in less than
three months and in effecting closing purchase transactions with respect to
options which have been written less than three months prior to such
transactions. The Code, however, allows the Fund to net certain offsetting
positions, making it easier for the Fund to satisfy the 30% test. The term
"regulated investment company" does not imply the supervision of management
or investment practices or policies by any government agency.

Any dividend or distribution paid shortly after an investor's
purchase may have the effect of reducing the net asset value of his shares
below the cost of his investment. Such a distribution would be a return on
investment in an economic sense although taxable as stated above. In
addition, the Code provides that if a shareholder has not held his Fund
shares for more than six months (or such shorter period as the Internal
Revenue Service may prescribe by regulation) and has received an
exempt-interest dividend with respect to such shares, any loss incurred on
the sale of such shares will be disallowed to the extent of the
exempt-interest dividend received.

Ordinarily, gains and losses realized from portfolio transactions
will be treated as capital gain or loss. However, all or a portion of any
gains realized from the sale of other disposition of certain market
discount bonds will be treated as ordinary income under Section 1276 of the
Code. In addition, all or a portion of the gain realized from engaging in
"conversion transactions" may be treated as ordinary income under Section
1258. "Conversion transactions" are defined to include certain forward,
futures, option and "straddle" transactions, transactions marketed or sold
to produce capital gains, or transactions described in Treasury regulations
to be issued in the future.

Under Section 1256 of the Code, gain or loss realized by the Fund
from certain financial futures and options transactions will be treated as
60% long-term capital gain or loss and 40% short-term capital gain or loss.
Gain or loss will arise upon the exercise or lapse of such futures and
options as well as from closing transactions. In addition, any such
futures or options remaining unexercised at the end of the Fund's taxable
year will be treated as sold for their then fair market value, resulting in
additional gain or loss to the Fund characterized in the manner described
above.

Offsetting positions held by the Fund involving financial futures
and options may constitute "straddles." Straddles are defined to include
"offsetting positions" in actively traded personal property. The tax
treatment of straddles is governed by Sections 1092 and 1258 of the Code,
which, in certain circumstances, overrides or modifies the provisions of
Section 1256. As such, all or a portion of any short or long-term capital
gain from certain "straddle" and/or conversion transactions may be
recharacterized to ordinary income.

If the Fund were treated as entering into straddles by reason of its
engaging in certain futures or options transactions, such straddles could
be characterized as "mixed straddles" if the futures or options
transactions comprising such straddles were governed by Section 1256 of the
Code. The Fund may make one or more elections with respect to "mixed
straddles". If no election is made, to the extent the straddle rules apply
to positions established by the Fund, losses realized by the Fund will be
deferred to the extent of unrealized gain in any related offsetting
position. Moreover, as a result of the straddle and/or conversion
transaction rules short-term capital loss on straddle positions may be
recharacterized as long-term capital loss, and long-term capital gain may
be recharacterized as short-term capital gain or ordinary income.

PERFORMANCE INFORMATION

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "Performance
Information."

The Fund's current yield for the 30-day period ended March 31, 1994
was 3.62%. Current yield is computed pursuant to a formula which operates
as follows: the amount of the Fund's expenses accrued for the 30-day
period (net of reimbursements) is subtracted from the amount of the
dividends and interest earned by the Fund (computed in accordance with
regulatory requirements) during the period. That result is then divided by
the product of: (a) the average daily number of shares outstanding during
the period that were entitled to receive dividends, and (b) the net asset
value per share on the last day of the period less any undistributed earned
income per share reasonably expected to be declared as a dividend shortly
thereafter. The quotient is then added to 1, and that sum is raised to the
6th power, after which 1 is subtracted. The current yield is then arrived
at by multiplying the result by 2.

Based upon a 1994 Federal tax rate of 39.60%, the Fund's tax
equivalent yield for the 30-day period ended March 31, 1994 was 5.99%. Tax
equivalent yield is computed by dividing that portion of the current yield
(calculated as described above) which is tax exempt by 1 minus a stated tax
rate and adding the quotient to that portion, if any, of the yield of the
Fund that is not tax exempt.

The tax equivalent yield noted above represents the application of
the highest Federal marginal personal income tax rate presently in effect.
The tax equivalent figure, however, does not include the potential effect
of any state and local (including, but not limited to, county, district or
city) taxes, if any, including applicable surcharges. In addition, there
may be pending legislation which could affect such stated rate or yield.
Each investor should consult with its tax adviser, and consider its own
factual circumstances and applicable tax laws, in order to ascertain the
relevant tax equivalent yield.

The Fund's average annual total return for the 1, 5 and 6.92 year
periods ended March 31, 1994 was 3.05%, 6.60% and 6.34%, respectively.
Average annual total return is calculated by determining the ending
redeemable value of an investment purchased with a hypothetical $1,000
payment made at the beginning of the period (assuming the reinvestment of
dividends and distributions), dividing by the amount of the initial
investment, taking the "n"th root of the quotient (where "n" is the number
of years in the period) and subtracting 1 from the result.

The Fund's total return for the period from April 30, 1987 to March
31, 1994 was 53.04%. Total return is calculated by subtracting the amount
of the Fund's net asset value per share at the beginning of a stated period
from the net asset value per share at the end of the period (after giving
effect to the reinvestment of dividends and distributions during the
period), and dividing the result by the net asset value per share at the
beginning of the period.

From time to time, the Fund may use hypothetical tax equivalent
yields or charts in its advertising. These hypothetical yields or charts
will be used for illustrative purposes only and are not indicative of the
Fund's past or future performance.

From time to time, advertising materials for the Fund may refer to
or discuss then-current or past economic conditions, developments and/or
events, including those relating to or arising from actual or proposed tax
legislation. From time to time, advertising materials for the Fund may
also refer to statistical or other information concerning trends relating
to investment companies, as compiled by industry associations such as the
Investment Company Institute.

INFORMATION ABOUT THE FUND

The following information supplements and should be read in
conjunction with the section in the Fund's Prospectus entitled "General
Information."

On November 20, 1992, Fund shareholders voted to change certain of
the Fund's fundamental policies and investment restrictions, among other
things, to (i) permit the Fund to lend its portfolio securities, (ii)
increase the amount the Fund may borrow from banks for temporary or
emergency purposes, (iii) increase the amount of the Fund's assets that it
may pledge to secure such borrowings and make such policy non-fundamental,
and (iv) increase the percentage of the Fund's assets which may be invested
in illiquid securities and make such policy non-fundamental.

On September 22, 1993, the Fund's name was changed from Dreyfus
Short-Intermediate Tax-Exempt Bond Fund to Dreyfus Short-Intermediate
Municipal Bond Fund.

Each Fund share has one vote and, when issued and paid for in
accordance with the terms of the offering, is fully paid and
non-assessable. Fund shares are of one class and have equal rights as to
dividends and in liquidation. Shares have no preemptive, subscription or
conversion rights and are freely transferable.

The Fund sends annual and semi-annual financial statements to all
its shareholders.

CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT, COUNSEL
AND INDEPENDENT AUDITORS

The Bank of New York, 110 Washington Street, New York, New York
10286, is the Fund's custodian. The Shareholder Services Group, Inc., a
subsidiary of First Data Corporation, P.O. Box 9671, Providence, Rhode
Island 02940-9671, is the Fund's transfer and dividend disbursing agent.
Neither The Bank of New York nor The Shareholder Services Group, Inc. has
any part in determining the investment policies of the Fund or which
portfolio securities are to be purchased or sold by the Fund.

Stroock & Stroock & Lavan, 7 Hanover Square, New York, New York
10004-2696, as counsel for the Fund, has rendered its opinion as to certain
legal matters regarding the due authorization and valid issuance of the
shares of beneficial interest being sold pursuant to the Fund's Prospectus.

Ernst & Young LLP, 787 Seventh Avenue, New York, New York 10019,
independent auditors, have been selected as auditors of the Fund.

APPENDIX

Description of bond, note, commercial paper and other short-
term rating categories assigned by Standard & Poor's Corporation
("S&P"), Moody's Investors Service, Inc. ("Moody's") and Fitch
Investors Service, Inc. ("Fitch").

S&P

Municipal Bond Ratings

An S&P municipal bond rating is a current assessment of the
creditworthiness of an obligor with respect to a specific
obligation.

The ratings are based on current information furnished by
the issuer or obtained by S&P from other sources it considers
reliable, and will include: (1) likelihood of default-capacity
and willingness of the obligor as to the timely payment of
interest and repayment of principal in accordance with the terms
of the obligation; (2) nature of and provisions of the
obligation; and (3) protection afforded by, and relative position
of, the obligation in the event of bankruptcy, reorganization or
other arrangement under the laws of bankruptcy and other laws
affecting creditors' rights.

AAA

Debt rated AAA has the highest rating assigned by S&P.
Capacity to pay interest and repay principal is extremely strong.

Debt rated AA has a very strong capacity to pay interest and
repay principal and differs from the highest rated issues only in
a small degree.

Principal and interest payments on bonds in this category
are regarded as safe. This rating describes the third strongest
capacity for payment of debt service. It differs from the two
higher ratings because:

General Obligation Bonds -- There is some weakness in the
local economic base, in debt burden, in the balance between
revenues and expenditures, or in quality of management. Under
certain adverse circumstances, any one such weakness might impair
the ability of the issuer to meet debt obligations at some future
date.

Revenue Bonds -- Debt service coverage is good, but not
exceptional. Stability of the pledged revenues could show some
variations because of increased competition or economic
influences on revenues. Basic security provisions, while
satisfactory, are less stringent. Management performance appears
adequate.

Plus (+) or minus (-): The ratings AA and A may be modified
by the addition of a plus or minus designation to show relative
standing within the major ratings categories.

Municipal Note Ratings

SP-1

The issuers of these municipal notes exhibit very strong or
strong capacity to pay principal and interest. Those issues
determined to possess overwhelming safety characteristics are
given a plus (+) designation.

Commercial Paper Ratings

Issues assigned an A rating by S&P are regarded as having
the greatest capacity for timely payment. Issues in this
category are delineated with the numbers 1, 2 and 3 to indicate
the relative degree of safety. Paper rated A-1 indicates that
the degree of safety regarding timely payment is either
overwhelming or very strong. Those issues determined to possess
overwhelming safety characteristics are denoted with a plus (+)
sign designation. Capacity for timely payment on issues with an
A-2 designation is strong. However, the relative degree of
safety is not as high as for issues designated A-1.

Moody's

Municipal Bond Ratings

Aaa

Bonds which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk and
are generally referred to as "gilt edge." Interest payments are
protected by a large or by an exceptionally stable margin and
principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most
unlikely to impair the fundamentally strong position of such
issues.

Bonds which are rated Aa are judged to be of high quality by
all standards. Together with the Aaa group they comprise what
are generally known as high-grade bonds. They are rated lower
than the best bonds because margins of protection may not be as
large as in Aaa securities or fluctuation of protective elements
may be of greater amplitude or there may be other elements
present which make the long-term risks appear somewhat larger
than in Aaa securities.

Bonds which are rated A possess many favorable investment
attributes and are to be considered as upper medium-grade
obligations. Factors giving security to principal and interest
are considered adequate, but elements may be present which
suggest a susceptibility to impairment sometime in the future.

Moody's applies the numerical modifiers 1, 2 and 3 to show
relative standing within the major rating categories, except in
the Aaa category and in the categories below B. The modifier 1
indicates a ranking for the security in the higher end of a
rating category; the modifier 2 indicates a mid-range ranking;
and the modifier 3 indicates a ranking in the lower end of a
rating category.

Municipal Note Ratings

Moody's ratings for state and municipal notes and other
short-term loans are designated Moody's Investment Grade (MIG).
Such ratings recognize the difference between short-term credit
risk and long-term risk. A short-term rating may also be
assigned to an issue having a demand feature. Such ratings will
be designated as VMIG. The Municipal Obligations bearing the
designation MIG 1/VMIG 1 are of the best quality. There is
present strong protection by established cash flows, superior
liquidity support or demonstrated broad-based access to the
market for refinancing. The Municipal Obligations bearing the
designation MIG 2/VMIG 2 are of high quality. Margins of
protection are ample although not so large as in the preceding
group.

Commercial Paper Rating

The rating Prime-1 (P-1) is the highest commercial paper
rating assigned by Moody's. Issuers of P-1 paper must have a
superior capacity for repayment of short-term promissory
obligations, and ordinarily will be evidenced by leading market
positions in well established industries, high rates of return on
funds employed, conservative capitalization structures with
moderate reliance on debt and ample asset protection, broad
margins in earnings coverage of fixed financial charges and high
internal cash generation and well established access to a range
of financial markets and assured sources of alternate liquidity.
Issuers (or related supporting institutions) rated Prime-2 (P-2)
have a strong capacity for repayment of short-term promissory
obligations. This ordinarily will be evidenced by many of the
characteristics cited above but to a lesser degree. Earnings
trends and coverage ratios, while sound, will be more subject to
variation. Capitalization characteristics, while still
appropriate, may be more affected by external conditions. Ample
alternate liquidity is maintained.

Fitch

Municipal Bond Ratings

The ratings represent Fitch's assessment of the issuer's
ability to meet the obligations of a specific debt issue or class
of debt. The ratings take into consideration special features of
the issue, its relationship to other obligations of the issuer,
the current financial condition and operating performance of the
issuer and of any guarantor, as well as the political and
economic environment that might affect the issuer's future
financial strength and credit quality.

AAA

Bonds rated AAA are considered to be investment grade and of
the highest credit quality. The obligor has an exceptionally
strong ability to pay interest and repay principal, which is
unlikely to be affected by reasonably foreseeable events.

Bonds rate AA are considered to be investment grade and of
very high credit quality. The obligor's ability to pay interest
and repay principal is very strong, although not quite as strong
as bonds rated AAA. Because bonds rated in the AAA and AA
categories are not significantly vulnerable to foreseeable future
developments, short-term debt of these issuers is generally rated
F-1+.

Bonds rated A are considered to be investment grade and of
high credit quality. The obligor's ability to pay interest and
repay principal is considered to be strong, but may be more
vulnerable to adverse changes in economic conditions and
circumstances than bonds with higher ratings.

Plus (+) and minus (-) signs are used with a rating symbol
to indicate the relative position of a credit within the rating
category. Plus and minus signs, however, are not used in the AAA
category covering 12-36 months.

Short-Term Ratings

Fitch's short-term ratings apply to debt obligations that
are payable on demand or have original maturities of up to three
years, including commercial paper, certificates of deposit,
medium-term notes, and municipal and investment notes.

Although the credit analysis is similar to Fitch's bond
rating analysis, the short-term rating places greater emphasis
than bond ratings on the existence of liquidity necessary to meet
the issuer's obligations in a timely manner.

F-1+

Exceptionally Strong Credit Quality. Issues assigned this
rating are regarded as having the strongest degree of assurance
for timely payment.

F-1

Very Strong Credit Quality. Issues assigned this rating
reflect an assurance of timely payment only slightly less in
degree than issues rated F-1+.

F-2

Good Credit Quality. Issues carrying this rating have a
satisfactory degree of assurance for timely payments, but the
margin of safety is not as great as the F-1+ and F-1 categories.

Demand Bond or Notes Ratings

Certain demand securities empower the holder at his option
to require the issuer, usually through a remarketing agent, to
repurchase the security upon notice at par with accrued interest.

This is also referred to as a put option. The ratings of the
demand provision may be changed or withdrawn at any time if, in
Fitch's judgment, changing circumstances warrant such action.

Fitch demand provision ratings carry the same symbols and
related definitions as its short-term ratings.

<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS-99.6% AMOUNT VALUE
------------ ------------
<S> <C> <C>
ALABAMA-1.2%
Alabama Higher Education Loan Corp., Student Loan Revenue
6.20%, 3/1/1997.......................................................................... $ 900,000 $ 936,351
Alabama Public School and College Authority, Refunding
3.70%, 11/1/1994......................................................................... 5,000,000 5,013,050
Fayette Industrial Development Board, IDR
(Oneita Industries Inc. Project)
7.25%, 10/1/1994 (LOC; Trust Company Bank) (a)........................................... 1,050,000 1,070,979
ALASKA-2.6%
Alaska Housing Finance Corp. 4.65%, 12/1/1996................................................ 1,400,000 1,402,002
Alaska Student Loan Corp., Student Loan Revenue:
5.50%, 7/1/1996 (Insured; AMBAC)......................................................... 3,295,000 3,393,652
4.40%, 7/1/1997.......................................................................... 3,195,000 3,155,797
4.70%, 7/1/1998.......................................................................... 3,060,000 3,022,699
Matanuska Susitna Borough, Refunding:
4.20%, 2/1/1995 (Insured; AMBAC)......................................................... 1,205,000 1,209,350
4.20%, 8/1/1995 (Insured; AMBAC)......................................................... 1,450,000 1,458,338
4.45%, 2/1/1996 (Insured; AMBAC)......................................................... 1,700,000 1,704,352
ARIZONA-.9%
Tempe Industrial Development Authority, MFHR, Refunding
(Elliot Grove Apartments) 6.25%, 10/1/1996............................................... 5,000,000 5,060,000
ARKANSAS-.3%
Springdale Residential Housing and Health Care Facilities Board, Revenue
(Springdale Memorial Hospital Project) 5.10%, 10/1/1997.................................. 1,670,000 1,688,103
CALIFORNIA-7.0%
Alameda County, COP (Financing Project)
6.15%, 9/1/1996 (LOC; Fuji Bank) (a)..................................................... 3,000,000 3,089,550
California Health Facilities Financing Authority, Revenue, Refunding
(Hospital of the Good Samaritan):
6.10%, 9/1/1995...................................................................... 1,270,000 1,299,274
6.25%, 9/1/1996...................................................................... 1,560,000 1,615,630
California Statewide Communities Development Authority,
Insured HR, Refunding, COP
(Triad Healthcare):
5%, 8/1/1996......................................................................... 2,500,000 2,440,825
5.25%, 8/1/1997...................................................................... 2,500,000 2,428,600
Chula Vista, MFHR
(Eucalyptus Grove Project) 5.75%, 11/1/1997.............................................. 4,945,000 5,083,905
Orange County, Apartment Development Revenue:
(Villas Aliento Project) 4.50%, 8/15/1997 (LOC; Tokai Bank) (a).......................... 5,000,000 5,000,000
(Villias De La Paz) 4.50%, 8/15/1997 (LOC; Tokai Bank) (a)............................... 5,000,000 4,976,300
Riverside County, COP (1993 Master Refunding Project):
4.15%, 11/1/1997......................................................................... 2,135,000 2,070,608
4.35%, 11/1/1998......................................................................... 2,395,000 2,296,326
Sacramento Municipal Utility District, Electric Revenue 7.875%, 8/15/1998.................... 4,405,000 5,019,718

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
CALIFORNIA (CONTINUED)
Vallejo Housing Authority, Multi-Family Revenue (Highlands Apartments Project)
5.75%, 6/1/1996.......................................................................... $ 6,210,000 $ 6,293,152
COLORADO-5.7%
Colorado, COP, Refunding (Acquisition Projects) 4.40%, 5/1/1996 (Insured; AMBAC)............. 5,000,000 5,020,550
Colorado Student Obligation Bond Authority, Student Loan Revenue:
6.05%, 9/1/1995.......................................................................... 4,300,000 4,410,467
5.40%, 12/1/1995......................................................................... 2,250,000 2,290,703
5%, 9/1/1996............................................................................. 500,000 506,100
6.20%, 9/1/1996.......................................................................... 3,300,000 3,430,779
5.20%, 9/1/1997.......................................................................... 1,200,000 1,216,416
City and County of Denver, Airport Revenue:
6.35%, 12/1/1994 (LOC; Sumitomo Trust and Banking) (a)................................... 7,500,000 7,665,750
4.25%, 9/1/1995 (LOC; Sumitomo Trust and Banking) (a).................................... 5,000,000 5,037,100
Pueblo County, SFMR 5%, 12/1/1994............................................................ 4,000,000 4,054,880
CONNECTICUT-1.7%
Connecticut:
Economic Recreation Notes 5.25%, 6/15/1994............................................... 1,000,000 1,004,330
Housing Mortage Revenue 4.60%, 4/1/1997 (LOC; National Australia Bank) (a)............... 5,985,000 6,007,803
Connecticut Housing Finance Authority
(Housing Mortgage Finance Program) 2.90%, 11/15/1994..................................... 3,000,000 2,998,980
DISTRICT OF COLUMBIA-1.2%
District of Columbia, Refunding:
4.60%, Series C, 12/1/1997............................................................... 2,000,000 1,966,560
4.60%, Series D, 12/1/1997............................................................... 5,250,000 5,196,607
FLORIDA-2.2%
Escambia Housing Finance Authority, MFHR (Alpine Village Project)
4.20%, 10/1/1997 (LOC; Harbor Federal Savings and Loan Association) (a).................. 2,500,000 2,491,900
Florida Housing Finance Agency, Multi-Family Housing Refunding
6.375%, 10/1/1995........................................................................ 10,215,000 10,619,820
GEORGIA-1.9%
Augusta Housing Authority, MFHR, Refunding (Stevens Creek Commons)
5.50%, 4/1/1997 (LOC; The Federal Home Loan Bank of Boston) (a).......................... 3,990,000 4,078,738
Development Authority of Burke County, PCR
(Oglethorpe Power Corporation Vogtle Project):
4.229%, 1/1/1997 (b,c)............................................................... 3,260,000 3,019,575
4.829%, 1/1/1998 (b,c)............................................................... 2,160,000 1,954,800
5.429%, 1/1/1999 (b,c)............................................................... 2,220,000 1,970,250
IDAHO-.9%
Idaho Student Loan Fund Marketing Association Inc., Student Loan Revenue:
5.25%, 4/1/1996.......................................................................... 2,495,000 2,540,908
5.25%, 10/1/1996......................................................................... 2,490,000 2,546,672
ILLINOIS-2.6%
Glenview, EDR,
(Valley Lo Towers II Project) 5.75%, 12/1/1997........................................... 5,000,000 5,025,000

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
ILLINOIS (CONTINUED)
Illinois Development Finance Authority, PCR
(Central Illinois Public Service) 4.375%, 6/1/1998....................................... $ 2,600,000 $ 2,592,460
Illinois Health Facilities Authority, Revenue, Refunding
(Illinois Masonic Medical Center):
4.20%, 10/1/1996..................................................................... 1,000,000 992,510
4.25%, 10/1/1997..................................................................... 1,000,000 981,840
Metropolitan Pier and Exposition Authority, Dedicated State Tax Revenue
Zero Coupon, 6/15/1997 (Insured; AMBAC).................................................. 7,035,000 5,995,579
INDIANA-.6%
Indiana Bond Bank, Revenue (Guarantee - State Revolving Fund Program):
4.60%, 2/1/1996.......................................................................... 1,200,000 1,205,916
4.80%, 2/1/1997.......................................................................... 2,245,000 2,253,509
IOWA-1.7%
Iowa School Corps. Warrent Certificates 3.60%, 12/30/1994.................................... 5,000,000 5,018,200
Le Claire, Electric Revenue 4.125%, 9/1/1996................................................. 4,995,000 4,986,259
KANSAS-.7%
Lenexa, Industrial Revenue (W. W. Grainger Inc. Project) 4.50%, 12/15/1998................... 4,145,000 4,160,544
KENTUCKY-.3%
Kentucky Turnpike Authority, Economic Development Road Revenue, Refunding
(Revitalization Projects):
4.50%, 1/1/1996...................................................................... 1,000,000 1,004,110
4.70%, 1/1/1997...................................................................... 1,000,000 1,004,280
LOUISIANA-1.2%
Louisiana Public Facilities Authority, Revenue, Refunding:
(Browning-Ferris Inc. Project) 3.85%, 11/1/1996.......................................... 6,000,000 5,867,100
(Sisters of Mercy Health) 7%, 6/1/1994................................................... 1,000,000 1,006,140
MAINE-2.0%
Maine Educational Loan Marketing Corp., Student Loan Revenue, Refunding:
6.20%, 11/1/1995......................................................................... 1,985,000 2,055,904
6.35%, 11/1/1996......................................................................... 9,200,000 9,665,244
MASSACHUSETTS-1.9%
Boston 7.75%, 10/1/1995...................................................................... 290,000 305,724
Massachusetts Industrial Finance Agency, Revenue (Biomedical Research)
6.90%, 8/1/1994.......................................................................... 2,720,000 2,746,901
Massachusetts Municipal Wholesale Electric Co., Power Supply System Revenue
5.20%, 7/1/1998.......................................................................... 5,000,000 5,005,200
New England Education Loan Marketing Corp., Massachusetts Student Loan Revenue,
Refunding 5%, 6/1/1998................................................................... 3,400,000 3,401,020
MISSISSIPPI-5.3%
Mississippi Higher Education Assistance Corp., Student Loan Revenue, Refunding:
5.15%, 7/1/1995.......................................................................... 2,500,000 2,537,650
5.40%, 1/1/1996.......................................................................... 4,355,000 4,446,978
5.40%, 7/1/1996.......................................................................... 13,100,000 13,418,723
5.70%, 1/1/1997.......................................................................... 1,435,000 1,481,853

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
MISSISSIPPI (CONTINUED)
Mississippi Higher Education Assistance Corp., Student Loan Revenue, Refunding (continued):
5.70%, 7/1/1997.......................................................................... $ 2,435,000 $ 2,518,423
4.60%, 9/1/1997.......................................................................... 7,000,000 6,994,260
MISSOURI-.1%
Missouri Higher Education Loan Authority, Student Loan Revenue
4.70%, 2/15/1995......................................................................... 650,000 655,278
MONTANA-.6%
Montana Higher Education Student Assistance Corp., Student Loan Revenue
6%, 6/1/1996............................................................................. 3,375,000 3,480,941
NEW JERSEY-3.7%
Atlantic City:
6.30%, 2/1/1996.......................................................................... 2,000,000 2,071,080
6.30%, 2/1/1997.......................................................................... 2,000,000 2,089,880
Camden County Pollution Control Financing Authority, Solid Waste Resources Recovery Revenue
6.15%, 12/1/1996......................................................................... 1,530,000 1,595,300
New Jersey Economic Development Authority, Wastepaper Recycling Revenue
(MPMI Inc. Project) 5.10%, 2/1/1999...................................................... 4,090,000 3,930,081
New Jersey Transportation Trust Fund Authority
5.036%, 5/15/1997 (b,c).................................................................. 10,000,000 9,637,500
South Jersey Port Corp., Revenue, Refunding (Marine Terminal)
4%, 1/1/1996............................................................................. 635,000 633,057
Sussex County Municipal Utility Authority, Solid Waste Revenue
7.875%, 12/1/1998 (Insured; BIGI)........................................................ 2,000,000 2,284,440
NEW MEXICO-.3%
New Mexico Educational Assistance Foundation, Student Loan Revenue
5.10%, 12/1/1996......................................................................... 1,700,000 1,726,095
NEW YORK-21.1%
Battery Park City Authority, Revenue, Refunding 4.50%, 11/1/1998............................. 5,500,000 5,406,005
Islip Community Development Agency, Community Development Revenue
(College Woods Project) 6.90%, 7/1/1994.................................................. 2,500,000 2,525,800
Metropolitan Transportation Authority, Service Contract, Refunding (Transit Facilities)
5.75%, 7/1/1996.......................................................................... 1,195,000 1,228,998
New York City:
5.70%, 2/1/1995.......................................................................... 5,000,000 5,072,100
8%, 6/1/1995............................................................................. 225,000 236,378
8%, 6/1/1995............................................................................. 1,775,000 1,847,136
7%, 8/1/1996............................................................................. 1,000,000 1,056,280
6.80%, 2/1/1997.......................................................................... 2,590,000 2,759,438
6.80%, 2/1/1997.......................................................................... 8,710,000 9,121,548
Refunding 7.10%, 2/1/1997................................................................ 5,000,000 5,274,050
4.875%, 8/1/1997......................................................................... 4,000,000 4,021,320
5.25%, 8/1/1997.......................................................................... 20,000,000 20,322,600
5.50%, 10/1/1997......................................................................... 5,000,000 5,122,350
4.60%, Series E, 8/1/1998................................................................ 10,000,000 9,847,300
4.60%, Series F, 8/1/1998................................................................ 1,000,000 984,730
Refunding 4.70%, 8/15/1998............................................................... 4,000,000 3,917,160

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
NEW YORK (CONTINUED)
New York State:
6.625%, 8/1/1995......................................................................... $ 6,925,000 $ 7,221,598
6.625%, 8/1/1996......................................................................... 4,990,000 5,250,228
COP (Commissioner General Services Executive Department) 4.90%, 2/1/1997................. 1,000,000 1,014,550
New York State Dormitory Authority, Revenue:
(City University) 7%, 7/1/1994........................................................... 3,000,000 3,036,600
(Upstate Community Colleges):
4.20%, 7/1/1997...................................................................... 1,360,000 1,341,014
4.40%, 7/1/1998...................................................................... 1,470,000 1,437,410
New York State Housing Finance Agency Revenue, Refunding
(Health Facilities-New York City) 7.50%, 5/1/1995........................................ 2,500,000 2,583,700
New York State Local Goverment Assistance Corp. 5.70%, 4/1/1995.............................. 4,000,000 4,073,480
New York State Medical Care Facilities Finance Agency, Revenue
(Mental Health Services Facilities Improvement):
7.10%, 2/15/1995..................................................................... 965,000 990,727
7.10%, 8/15/1995..................................................................... 1,015,000 1,055,762
7.10%, 2/15/1996..................................................................... 1,045,000 1,094,826
New York State Urban Development Corp., Revenue, Refunding (Correctional Facilities)
4.60%, 1/1/1999.......................................................................... 5,000,000 4,806,050
Rensselaer Industrial Development Agency, IDR
(View Office Park Project) 3.50%, 12/31/1994............................................. 4,500,000 4,512,645
Suffolk County, Public Improvement 7.125%, 11/1/1995......................................... 3,210,000 3,344,724
Syracuse Industrial Development Agency, Civic Facilities Revenue
(Community Development Properties-Vanderbilt) 7%, 4/1/1995 (LOC; Onbank) (a)............. 5,000,000 5,015,150
NORTH DAKOTA-.7%
North Dakota, Student Loan Revenue, Refunding
5.10%, 7/1/1995.......................................................................... 4,000,000 4,057,760
OHIO-5.0%
Cuyahoga County, HR 5.643%, 7/15/1996 (b,c).................................................. 8,250,000 8,095,312
Ohio Air Quality Development Authority, Revenue, Refunding (Ohio Edison Project):
3.45%, 2/1/1996 (LOC; Toronto Dominion Bank) (a)......................................... 12,000,000 11,838,600
4.25%, 8/1/1996 (LOC; Canadian Imperial Bank) (a)........................................ 10,000,000 9,999,500
OKLAHOMA-1.1%
Tulsa Public Facilities Authority, Capital Improvement Revenue:
4.30%, 5/1/1996.......................................................................... 3,360,000 3,369,542
4.55%, 5/1/1997.......................................................................... 3,460,000 3,461,107
PENNSYLVANIA-4.5%
Allegheny County Industrial Development Authority, Commercial Development Revenue
(Parkway Center Mall) 6%, 5/1/1997 (LOC; Mellon Bank) (a)................................ 3,000,000 3,009,810
Armstrong County Hospital Authority, HR,
(Saint Francis Central Hospital) 5.25%, 11/1/1997 (LOC; Pittsburgh National Bank) (a)... 3,100,000 3,161,194
Pennsylvania, COP, Refunding:
3.50%, 7/1/1995 (Insured; AMBAC)......................................................... 2,080,000 2,074,363
4.25%, 7/1/1998 (Insured; AMBAC)......................................................... 2,500,000 2,440,500

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF INVESTMENTS (CONTINUED) MARCH 31, 1994
PRINCIPAL
MUNICIPAL BONDS (CONTINUED) AMOUNT VALUE
------------ ------------
PENNSYLVANIA (CONTINUED)
Philadelphia, Gas Works Revenue 5.20%, 7/1/1997.............................................. $ 11,845,000 $ 12,053,827
Philadelphia Hospitals and Higher Education Facilities Authority, HR
(Graduate Health System Obligation) 6.40%, 7/1/1996...................................... 1,600,000 1,659,552
Scranton-Lackawanna Health and Welfare Authority, Revenue, Refunding
(University of Scranton Project):
5%, 3/1/1996......................................................................... 1,175,000 1,183,307
5.15%, 3/1/1997...................................................................... 1,235,000 1,243,089
SOUTH CAROLINA-.5%
South Carolina Education Assistance Authority,
Insured Student Loan Revenue 5.90%, 9/1/1996............................................. 3,000,000 3,119,010
TEXAS-8.6%
Bell County Health Facilities Development Corp., Revenue, Refunding:
6.53%, 10/1/1998 (b,c)................................................................... 11,350,000 10,498,750
(Central Texas Pooled Health) 4.75%, 10/1/1998........................................... 6,620,000 6,487,600
Brazos Higher Education Authority Inc., Student Loan Revenue, Refunding:
4.50%, 6/1/1996.......................................................................... 4,000,000 3,998,920
6.20%, 3/1/1997.......................................................................... 4,570,000 4,663,456
5.30%, 12/1/1997......................................................................... 1,845,000 1,882,380
4.95%, 6/1/1998.......................................................................... 2,500,000 2,497,025
Panhandle_Plains Higher Education Authority Inc., Student Loan Revenue, Refunding:
4.15%, 9/1/1997.......................................................................... 2,700,000 2,643,543
4.30%, 9/1/1998.......................................................................... 1,700,000 1,656,565
South Texas Higher Education Authority Inc., Student Loan Revenue, Refunding:
4.05%, 12/1/1996......................................................................... 6,535,000 6,418,089
4.25%, 12/1/1997......................................................................... 4,065,000 3,961,099
Texas Department of Housing and Community Affairs, Multi-Family Revenue, Refunding
(Dallas Association) 6.25%, 12/1/1995.................................................... 6,000,000 6,287,160
VERMONT-.2%
Chittenden Solid Waste District 5%, 1/1/1995................................................. 1,250,000 1,264,700
VIRGINIA-4.4%
Fairfax County Redevelopment and Housing Authority,
Guaranteed Revenue, Refunding (Shenandoah Crossing Apartments) 5.25%, 12/1/1997.......... 8,100,000 8,148,357
Peninsula Port Authority, IDR, Refunding
4.25%, 7/1/1996 (LOC; Nationsbank of Virginia) (a)....................................... 3,500,000 3,501,400
Virginia Commonwealth University, Revenue, Refunding
(Medical College of Virginia Hospital) 3.90%, 7/1/1998................................... 5,500,000 5,321,635
Winchester Industrial Development Authority, HR:
5.41%, 1/1/1996 (Insured; AMBAC)(b)...................................................... 3,100,000 2,952,905
Winchester Industrial Development Authority, HR (continued):
6.02%, 1/1/1997 (Insured; AMBAC)(b)...................................................... 3,300,000 3,076,095
6.62%, 1/1/1998 (Insured; AMBAC)(b)...................................................... 3,400,000 3,119,636
WASHINGTON-3.5%
Seattle Municipality Metropolitan, Nonrecourse Lease Revenue:
7.75%, Series A, 3/30/1995............................................................... 1,085,000 1,123,409
7.75%, Series B, 3/30/1995............................................................... 1,965,000 2,034,561

<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
SUMMARY OF ABBREVIATIONS
<S> <C> <S> <C>
AMBAC American Municipal Bond Assurance Corporation LOC Letter of Credit
BIGI Bond Investors Guaranty Insurance MFHR Multi-Family Housing Revenue
COP Certificate of Participation PCR Pollution Control Revenue
EDR Economic Development Revenue SFMR Single Family Mortgage Revenue
HR Hospital Revenue VRDN Variable Rate Demand Notes
IDR Industrial Development Revenue
</TABLE>

SUMMARY OF COMBINED RATINGS (UNAUDITED)
FITCH (E) OR MOODY'S OR STANDARD & POOR'S PERCENTAGE OF VALUE
- -------- ------- ----------------- -------------------
AAA Aaa AAA 18.4%
AA Aa AA 21.1
A A A 47.2
BBB Baa BBB 3.3
F1 MIG1/P1 SP1/A1 7.7
Not Rated Not Rated Not Rated 2.3
------
100.0%
======
NOTES TO STATEMENT OF INVESTMENTS:
(a) Secured by letters of credit.
(b) Inverse floater security - the interest rate is subject to change
periodically.
(c) Security exempt from registration under 144A of the Securities Act of 1933.
These securities may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At March 31, 1994, these
securities amounted to $40,051,687 or 6.7% of net assets.
(d) Securities payable on demand. The interest rate, which is subject to
change, is based upon bank prime rates or an index of market interest rates.
(e) Fitch currently provides creditworthiness information for a limited
amount of investments.

See notes to financial statements.

<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF ASSETS AND LIABILITIES MARCH 31, 1994

<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $593,107,170)-see statement.................................................... $593,979,312
Interest receivable...................................................................... 8,560,457
Receivable for shares of Beneficial Interest sold........................................ 15,000
Prepaid expenses......................................................................... 39,283
------------
602,594,052
LIABILITIES:
Due to The Dreyfus Corporation........................................................... $ 356,132
Due to Custodian......................................................................... 3,697,120
Payable for shares of Beneficial Interest redeemed....................................... 3,000
Accrued expenses......................................................................... 263,533 4,319,785
------------ ------------
NET ASSETS................................................................................... $598,274,267
============
REPRESENTED BY:
Paid-in capital.......................................................................... $597,583,508
Accumulated distributions in excess of net realized
gain on investments-Note 1(c)........................................................ (181,383)
Accumulated net unrealized appreciation on investments-Note 3............................ 872,142
------------
NET ASSETS at value applicable to 45,936,630 outstanding shares of
Beneficial Interest (unlimited number of $.001 par value
shares authorized)....................................................................... $598,274,267
============
NET ASSET VALUE, offering and redemption price per share
($598,274,267 / 45,936,630 shares)....................................................... $13.02
======
STATEMENT OF OPERATIONS YEAR ENDED MARCH 31, 1994
INVESTMENT INCOME:
INTEREST INCOME.......................................................................... $ 26,185,520
EXPENSES:
Management fee-Note 2(a)............................................................. $2,574,441
Shareholder servicing costs-Note 2(b)................................................ 744,842
Registration fees.................................................................... 130,902
Custodian fees....................................................................... 57,498
Professional fees.................................................................... 53,888
Trustees' fees and expenses-Note 2(c)................................................ 41,048
Prospectus and shareholders' reports-Note 2(b)....................................... 34,301
Miscellaneous........................................................................ 174,169
------------
TOTAL EXPENSES................................................................... 3,811,089
------------
INVESTMENT INCOME-NET............................................................ 22,374,431
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS:
Net realized (loss) on investments-Note 3................................................ $ (10,179)
Net unrealized (depreciation) on investments............................................. (8,784,341)
------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................................ (8,794,520)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......................................... $ 13,579,911
============

See notes to financial statements.
</TABLE>

<TABLE>
<CAPTION>
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED MARCH 31,
----------------------------
1993 1994
------------ ------------
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................................... $ 14,183,450 $ 22,374,431
Net realized gain (loss) on investments.................................................. 455,197 (10,179)
Net unrealized appreciation (depreciation) on investments for the year................... 7,971,307 (8,784,341)
------------ ------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................................. 22,609,954 13,579,911
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................................... (14,183,450) (22,374,431)
Net realized gain on investments......................................................... (356,018) (396,927)
Excess net realized gain on investments.................................................. _- (181,383)
------------ ------------
TOTAL DIVIDENDS...................................................................... (14,539,468) (22,952,741)
------------ ------------
BENEFICIAL INTEREST TRANSACTIONS:
Net proceeds from shares sold............................................................ 533,949,525 688,061,133
Dividends reinvested..................................................................... 12,237,898 19,853,406
Cost of shares redeemed.................................................................. (355,766,222) (486,731,414)
------------ ------------
INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS......................... 190,421,201 221,183,125
------------ ------------
TOTAL INCREASE IN NET ASSETS..................................................... 198,491,687 211,810,295
NET ASSETS:
Beginning of year........................................................................ 187,972,285 386,463,972
------------ ------------
End of year.............................................................................. $386,463,972 $598,274,267
============ ============

SHARES SHARES
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.............................................................................. 40,951,966 51,932,727
Shares issued for dividends reinvested................................................... 936,832 1,499,203
Shares redeemed.......................................................................... (27,253,399) (36,757,683)
------------ ------------
NET INCREASE IN SHARES OUTSTANDING................................................... 14,635,399 16,674,247
============ ============

See notes to financial statements.
</TABLE>

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
FINANCIAL HIGHLIGHTS
Reference is hereby made to Page 2 of the Prospectus dated August 1, 1994.

See notes to financial statements.

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE NOTE 1
NOTES TO FINANCIAL STATEMENTS
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Dreyfus Service Corporation ("Distributor") acts as the distributor of the
Fund's shares, which are sold to the public without a sales load. The
Distributor is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager").
At a meeting of shareholders held on September 22, 1993, the Fund's
shareholders approved a change of the Fund's name from "Dreyfus Short-
Intermediate Tax Exempt Bond Fund" to "Dreyfus Short-Intermediate
Municipal Bond Fund."
(A) PORTFOLIO VALUATION: The Fund's investments are valued each
business day by an independent pricing service ("Service") approved by the
Board of Trustees. Investments for which quoted bid prices in the
judgment of the Service are readily available and are representative of
the bid side of the market are valued at the mean between the quoted bid
prices (as obtained by the Service from dealers in such securities) and
asked prices (as calculated by the Service based upon its evaluation of the
market for such securities). Other investments (which constitute a
majority of the portfolio securities) are carried at fair value as
determined by the Service, based on methods which include consideration
of: yields or prices of municipal securities of comparable quality, coupon,
maturity and type; indications as to values from dealers; and general
market conditions.
(B) SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Securities
transactions are recorded on a trade date basis. Realized gain and loss
from securities transactions are recorded on the identified cost basis.
Interest income, adjusted for amortization of premiums and, when
appropriate, discounts on investments, is earned from settlement date and
recognized on the accrual basis. Securities purchased or sold on a when-
issued or delayed-delivery basis may be settled a month or more after the
trade date.
(C) DIVIDENDS TO SHAREHOLDERS: It is the policy of the Fund to declare
dividends daily from investment income-net. Such dividends are paid
monthly. Dividends from net realized capital gain are normally declared
and paid annually, but the Fund may make distributions on a more frequent
basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
Dividends in excess of net realized gains on investment for financial
statement purposes result from current period wash sale loss deferrals
and other losses from security transactions during the year ended March
31, 1994 which are treated for Federal income tax purposes as arising in
fiscal 1995.
(D) FEDERAL INCOME TAXES: It is the policy of the Fund to continue to
qualify as a regulated investment company, which can distribute tax
exempt dividends, by complying with the provisions available to certain
investment companies, as defined in applicable sections of the Internal
Revenue Code, and to make distributions of income and net realized capital
gain sufficient to relieve it from all, or substantially all, Federal income
taxes.
NOTE 2-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .50 of 1%
of the average daily value of the Fund's net assets and is payable monthly.
The Agreement provides for an expense reimbursement from the Manager
should the Fund's aggregate expenses, exclusive of taxes, interest on
borrowings, brokerage and extraordinary expenses, exceed 1 1/2% of the
average value of the Fund's net assets for any full fiscal year. No expense
reimbursement was required pursuant to the Agreement for the year ended
March 31, 1994.

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE
NOTE 1
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(B) The Fund has adopted a Service Plan (the "Plan") pursuant to which
the Fund reimburses the Distributor, at up to a maximum annual rate of .10
of 1% of the value of the Fund's average daily net assets, for costs and
expenses incurred in connection with advertising, marketing and
distributing the Fund's shares and for servicing shareholder accounts. The
Distributor may make payments to one or more Service Agents (a
securities dealer, financial institution, or other industry professional)
based on the value of the Fund's shares owned by clients of the Service
Agent. The Plan also separately provides for the Fund to bear the costs of
preparing, printing and distributing certain of the Fund's prospectuses and
statements of additional information and costs associated with
implementing and operating the Plan, not to exceed the greater of
$100,000 or .005 of 1% of the Fund's average daily net assets for any full
fiscal year. During the year ended March 31, 1994, $532,280 was charged
to the Fund pursuant to the Plan.
(C) Certain officers and trustees of the Fund are "affiliated persons,"
as defined in the Act, of the Manager and/or the Distributor. Each trustee
who is not an "affiliated person" receives an annual fee of $4,000 and an
attendance fee of $500 per meeting.
(D) On December 5, 1993, the Manager entered into an Agreement and
Plan of Merger (the "Merger Agreement") providing for the merger of the
Manager with a subsidiary of Mellon Bank Corporation ("Mellon").
Following the merger, it is planned that the Manager will be a direct
subsidiary of Mellon Bank N.A. Closing of this merger is subject to a
number of contingencies, including receipt of certain regulatory approvals
and approvals of the shareholders of the Manager and of Mellon. The merger
is expected to occur in mid-1994, but could occur later.
As a result of regulatory requirements and the terms of the Merger
Agreement, the Manager will seek various approvals from the Fund's board
and shareholders before completion of the merger. Shareholder approval
will be solicited by a proxy statement.
NOTE 3-SECURITIES TRANSACTIONS:
Purchases and sales of securities amounted to $484,710,094 and
$275,262,030, respectively, for the year ended March 31, 1994, and
consisted entirely of municipal bonds and short-term municipal investments.
At March 31, 1994, accumulated net unrealized appreciation on investments
was $872,142, consisting of $6,444,346 gross unrealized appreciation and
$5,572,204 gross unrealized depreciation.
At March 31, 1994, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE
NOTE 1
REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF TRUSTEES
DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)
We have audited the accompanying statement of assets and liabilities
of Dreyfus Short-Intermediate Municipal Bond Fund (formerly Dreyfus
Short-Intermediate Tax Exempt Bond Fund), including the statement of
investments, as of March 31, 1994, and the related statement of
operations for the year then ended, the statement of changes in net assets
for each of the two years in the period then ended, and financial highlights
for each of the years indicated therein. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included
confirmation of securities owned as of March 31, 1994 by correspondence
with the custodian. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Short-Intermediate Municipal Bond Fund at March 31,
1994, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the indicated years, in conformity with
generally accepted accounting principles.

(Ernst & Young Signature Logo)

New York, New York
May 3, 1994

DREYFUS SHORT-INTERMEDIATE MUNICIPAL BOND FUND
(FORMERLY DREYFUS SHORT-INTERMEDIATE TAX EXEMPT BOND FUND)-SEE
NOTE 1
IMPORTANT TAX INFORMATION (UNAUDITED)
In accordance with Federal tax law, the Fund hereby makes the
following designations regarding its fiscal year ended March 31, 1994:
All the dividends paid from investment income-net are "exempt-
interest dividends" (not generally subject to regular Federal income tax).
The Fund hereby designates $.0011 per share as a long-term capital gain
distribution of the $.0137 per share paid on November 30, 1993.
As required by Federal tax law rules, shareholders will receive
notification of their portion of the Fund's taxable ordinary dividends (if
any) and capital gain distributions (if any) paid for the 1994 calendar year
on Form 1099-DIV which will be mailed by January 31, 1995.