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T. ROWE PRICE
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Short-Term U.S. Government Fund, Inc.
Supplement to prospectus dated October 1, 1999
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Effective June 1, 2000, the footnote to Table 2 on page 5 of the Prospectus
will be revised with the following to reflect the extension of the fund's
expense ratio limitation:
/a/
Effective June 1, 2000, T. Rowe Price contractually obligated itself to waive
any fees and bear any expenses through May 31, 2002, to the extent such fees
or expenses would cause the ratio of expenses to average net assets to exceed
0.70%. Fees waived or expenses paid or assumed under this agreement are
subject to reimbursement to T. Rowe Price whenever the fund's expense ratio
is below 0.70%; however, no reimbursement will be made after May 31, 2004, or
if it would result in the expense ratio exceeding 0.70%. Any amounts
reimbursed have the effect of increasing fees otherwise paid by the fund. The
fund operated under previous expense limitations for which T. Rowe Price may
be reimbursed.
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The date of this supplement is June 1, 2000.
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F69-041 6/1/00
