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KEMPER-DREMAN FUND, INC. ("KDF")
COMPRISED OF THE FOLLOWING THREE SERIES:
KEMPER-DREMAN CONTRARIAN FUND (THE "CONTRARIAN FUND")
KEMPER-DREMAN HIGH RETURN EQUITY FUND (THE "HIGH RETURN EQUITY FUND")
KEMPER-DREMAN SMALL CAP VALUE FUND (THE "SMALL CAP VALUE FUND")
SUPPLEMENT TO PROSPECTUS
DATED APRIL 25, 1997
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The board of directors of KDF has approved a sub-advisory agreement for
management of the High Return Equity Fund. The sub-advisory agreement is between
Dreman Value Advisors, Inc. ("DVA"), the investment manager for KDF, and Dreman
Value Management, L.L.C. ("DVM"), a registered investment adviser newly formed
and controlled by David N. Dreman. Mr. Dreman would remain the portfolio manager
of the High Return Equity Fund. The sub-advisory agreement is subject to
approval by the shareholders of the High Return Equity Fund and a shareholders
meeting to vote upon the sub-advisory agreement has been called for July 29,
1997. It is also expected that DVA will change its name to Zurich Kemper Value
Advisors, Inc.
DVM will manage the investment and reinvestment of the assets of the High
Return Equity Fund and will be paid a sub-advisory fee by DVA, payable monthly,
based on the following schedule:
SUB-ADVISORY FEE
<TABLE>
<CAPTION>
APPLICABLE AVERAGE
DAILY NET ASSETS OF
HIGH RETURN EQUITY FUND
(THOUSANDS) ANNUAL RATE
- --------------------------------------------------- -----------
<S> <C>
$ 0 - $ 250,000......................... .240 of 1%
$ 250,000 - $ 1,000,000.......................... .230 of 1%
$ 1,000,000 - $ 2,500,000.......................... .224 of 1%
$ 2,500,000 - $ 5,000,000.......................... .218 of 1%
$ 5,000,000 - $ 7,500,000.......................... .208 of 1%
$ 7,500,000 - $10,000,000.......................... .205 of 1%
$10,000,000 - $12,500,000.......................... .202 of 1%
Over $12,500,000.................... .198 of 1%
</TABLE>
Also, the board of directors of KDF has approved the renaming of KDF and
the two series other than the High Return Equity Fund as follows:
<TABLE>
<CAPTION>
CURRENT NAMES NEW NAMES
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<S> <C>
Kemper-Dreman Fund, Inc. Kemper Value Fund, Inc.
Kemper-Dreman Contrarian Fund Kemper Contrarian Fund
Kemper-Dreman Small Cap Value Fund Kemper Small Cap Value Fund
</TABLE>
These name changes are expected to become effective when the sub-advisory
agreement with DVM becomes effective. The name of the High Return Equity Fund
will not be changed. (LOGO)printed on recycled paper
06/97
DRE - 1A
ZKDI 705119
