SCUDDER
INVESTMENTS(SM)
[LOGO]
Supplement to the currently effective Prospectus of each of the listed funds:
<TABLE>
<S> <C>
Scudder Corporate Bond Fund Scudder Massachusetts Limited Term Tax Free Fund
Scudder GNMA Fund Scudder Micro Cap Fund
Scudder International Bond Fund Scudder Ohio Tax Free Fund
Scudder International Growth and Income Fund Scudder Tax Managed Growth Fund
Scudder Limited Term Tax Free Fund Scudder Tax Managed Small Company Fund
</TABLE>
On July 13, 2000, the shareholders of each of the above-mentioned Funds
(identified in the table below under the heading "Acquired Fund") approved an
Agreement and Plan of Reorganization (the "Plan") between each Fund and the
corresponding Acquiring Fund identified in the chart below.
The Plan applicable to each Fund, except for Scudder International Bond Fund and
Scudder International Growth and Income Fund, provides for the transfer of all
or substantially all of the assets of the Fund to the corresponding Acquiring
Fund and the assumption of all of the liabilities of the Fund by the Acquiring
Fund in exchange for Class S shares of the corresponding Acquiring Fund. Shares
of the corresponding Acquiring Fund thereby received would then be distributed
to the shareholders of the Fund in complete liquidation of the Fund. With
respect to Scudder International Bond Fund and Scudder International Growth and
Income Fund, the Plan provides that the issued and outstanding shares of such
Funds will be reclassified into Class S shares of the corresponding Acquiring
Fund and, accordingly, the corresponding Acquiring Fund will acquire all of the
assets and assume all of the liabilities of the Fund (the transactions
contemplated by the Plans are referred to as the "Reorganizations").
The Reorganizations are currently expected to become effective on or about the
applicable Reorganization Date identified in the chart below.
<TABLE>
<S> <C> <C>
Acquired Fund Acquiring Fund Reorganization Date
-----------------------------------------------------------------------------------------------------------------------
Scudder Corporate Bond Fund Scudder Income Fund September, 2000*
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Scudder GNMA Fund AARP GNMA and U.S. Treasury Fund July 17, 2000
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Scudder International Bond Fund Scudder Global Bond Fund September 25, 2000
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Scudder International Growth and Income Fund Scudder International Fund August 14, 2000
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Scudder Limited Term Tax Free Fund Scudder Medium Term Tax Free Fund July 31, 2000
-----------------------------------------------------------------------------------------------------------------------
Scudder Massachusetts Limited Term Tax Free Fund Scudder Massachusetts Tax Free Fund July 31, 2000
-----------------------------------------------------------------------------------------------------------------------
Scudder Micro Cap Fund AARP Small Company Stock Fund July 17, 2000
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Scudder Ohio Tax Free Fund Scudder Managed Municipal Bonds July 31, 2000
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Scudder Tax Managed Growth Fund Scudder Select 500 Fund August 28, 2000
-----------------------------------------------------------------------------------------------------------------------
Scudder Tax Managed Small Company Fund Scudder Small Company Value Fund August 28, 2000
-----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Subject to receipt of required regulatory approval.
July 13, 2000
