TVPSF 12/98 - F SMALL CAP/Y2K/EURO
SUPPLEMENT DATED DECEMBER 14, 1998
TO THE PROSPECTUS DATED MAY 1, 1998
OF
TEMPLETON VARIABLE PRODUCTS SERIES FUND
I. THE SECTION "PORTFOLIO INVESTMENTS" UNDER "INVESTMENT OBJECTIVE AND
POLICIES - FRANKLIN SMALL CAP INVESTMENTS FUND" IS AMENDED AS FOLLOWS:
a) The first five sentences of the first paragraph are replaced with the
following:
PORTFOLIO INVESTMENTS. The Fund seeks to accomplish its objective by
investing primarily (normally at least 65% of its assets) in equity
securities of smaller capitalization growth companies ("small cap
companies"). Investments in small cap companies may involve greater risks
and greater volatility than investments in larger and more established
companies. A small cap company generally has a market capitalization of
less than $1.5 billion at the time of the Fund's investment and, in the
opinion of the Fund's Manager, is positioned for rapid growth in revenues,
earnings or assets. Market capitalization is defined as the total market
value of a company's outstanding common stock. The securities of small cap
companies are traded on U.S. or foreign stock exchanges and
over-the-counter.
b) The first two sentences of the second paragraph are deleted.
PLEASE KEEP THIS SUPPLEMENT WITH YOUR PROSPECTUS FOR FUTURE REFERENCE.
