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T. ROWE PRICE
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TAX-FREE INSURED INTERMEDIATE BOND FUND, INC.
Supplement to Prospectus dated July 1, 1995
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The following sentences will be added at the end of the footnotes
in Table 1 under the section "Transaction and Fund Expenses" on
page 2 of the prospectus.
Effective March 1, 1996, T. Rowe Price agreed that for a
period of two years ending on February 28, 1998, the Fund's
expense ratio will not exceed 0.65%. Fees waived or
expenses paid or assumed under this agreement are subject to
reimbursement to T. Rowe Price by the Fund whenever the
Fund's expense ratio is below 0.65%; however, no
reimbursement will be made after February 29, 2000, or if it
would result in the expense ratio exceeding 0.65%.
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The date of this supplement is February 28, 1996.
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