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<PAGE> 1
THE RESERVE FUND
Supplement dated August 26, 1997, to prospectus dated July 31, 1997
The following information supplements and should be read in conjunction with
the section of the Fund's prospectus entitled, "Shareholder Expenses".
The last sentence of the paragraph under the table entitled "Annual Fund
Operating Expenses" should read as follows: See "Investment Management
Agreement" on page 6.
Resrv Partners, Inc.
Distributor, 08/97
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