MERRILL LYNCH DRAGON FUND, INC.
Supplement dated December 28, 2000 to the
Statement of Additional Information dated March 22, 2000
The section captioned "Directors and Officers" beginning on page 20
is amended as follows:
The biography of Kara W. Y. Tan Bhala appearing on page 21 is hereby
removed, and is replaced by the following biographies of Louis Mendes and A.
Grace Pineda, who are primarily responsible for the day-to-day management of
the Fund's portfolio:
Louis J. Mendes, III, CFA (36) - Director and Co-Portfolio Manager
(1)(2) - Director of the Manager since 1998; Member of the Fund's
investment management team from 1993 to 2000.
A. Grace Pineda (44) - Managing Director and Senior Portfolio
Manager(1)(2) - First Vice President of the Manager since 1997; Vice
President of the Manager from 1989 to 1997.
