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Filed pursuant to Rule 497(c).
File Nos. 33-34001 and 811-06068.
ALLIANCE CAPITAL (LOGO)(R) ACM INSTITUTIONAL RESERVES, INC.
- Government Portfolio
_________________________________________________________________
April 7, 1997
Supplement to Prospectus dated September 6, 1996.
The following paragraph supplements the disclosure set forth
under "Investment Objectives and Policies -- Government
Portfolio."
As a matter of operating policy which may be changed without
shareholder approval, the Government Portfolio attempts to invest
in securities that the Adviser believes are legal investments for
federal credit unions as set forth in Sections 107(7) and (8) of
the Federal Credit Union Act and Part 703 of the National Credit
Union Administration regulations.
(R) This is a registered service mark used under license from
the owner, Alliance Capital Management L.P.
00250072.AK4
