Supplement dated August 6, 1998
to the Prospectuses of
Flag Investors Short-Intermediate Income Fund, Inc.
dated May 1, 1998
On June 30, 1998, the Fund's Board of Directors approved,
subject to shareholder approval, a Sub-Advisory Agreement among
the Fund, Investment Company Capital Corp. ("ICC") and Alex.
Brown Capital Advisory & Trust Company ("ABCAT"). ABCAT was
until June 30, 1998, a subsidiary of Bankers Trust Corporation,
the indirect parent of ICC. On June 30, 1998, Bankers Trust sold
ABCAT to a group including ABCAT's management and other
investors.
ABCAT, with offices at 19-21 South Street, Baltimore,
Maryland 21202, is a trust company chartered under the laws of
the State of Maryland. ABCAT employs M. Elliott Randolph, Jr.
and Paul D. Corbin, who are also employees of ICC, and have
managed the Fund's investments since its inception in 1990.
Approval of the Sub-Advisory Agreement would ensure continuity of
Fund management.
The matter will be submitted to shareholders of the Fund at
a meeting scheduled for September 25, 1998. Only shareholders of
record of the Fund as of the close of business on August 7, 1998
will be entitled to vote on the proposal.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
