MERRILL LYNCH SHORT TERM U.S. GOVERNMENT FUND, INC.
Supplement dated October 16, 2000
to the Prospectus dated September 29, 2000
Page 6 of the prospectus is replaced with the following:
Key Facts
Examples:
These examples are intended to help you compare the cost of
investing in the Fund with the cost of investing in other
mutual funds.
These examples assume that you invest $10,000 in the Fund
for the time periods indicated, that your investment has a
5% return each year, that you pay the sales charges, if any,
that apply to the particular class and that the Fund's
operating expenses remain the same. This assumption is not
meant to indicate you will receive a 5% annual rate of
return. Your annual return may be more or less than the 5%
used in this example. Although your actual costs may be
higher or lower, based on these assumptions your costs
would be:
EXPENSES IF YOU DID REDEEM YOUR SHARES:
---
1 Year 3 Years 5 Years 10 Years
------------------------------------------------------------
Class A $186 $369 $567 $1,138
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Class B $230 $431 $702 $1,545
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Class C $227 $397 $686 $1,511
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Class D $197 $403 $626 $1,266
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EXPENSES IF YOU DID NOT REDEEM YOUR SHARES:
-------
1 Year 3 Years 5 Years 10 Years
------------------------------------------------------------
Class A $186 $369 $567 $1,138
------------------------------------------------------------
Class B $130 $406 $702 $1,545
------------------------------------------------------------
Class C $127 $397 $686 $1,511
------------------------------------------------------------
Class D $197 $403 $626 $1,266
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MERRILL LYNCH SHORT TERM U.S. GOVERNMENT FUND, INC.
Code No. 13937-09-00ALL
