<PAGE> 1
SAFECO Tax-Exempt Bond Trust
SUPPLEMENT TO THE PROSPECTUS DATED JULY 31, 1995
AS REVISED JANUARY 31, 1996
SUPPLEMENT DATED MAY 31, 1996
The second sentence in the third paragraph under the heading "Information About
Share Ownership and Companies That Provide Services To The Trust" on page 26 is
changed to read as follows:
SAFECO Services receives a fee from each Fund for every shareholder account held
in the Fund. SAFECO Services may enter into subcontracts with registered
broker-dealers, third party administrators and other qualified service providers
that generally perform shareholder, administrative, and/or accounting services
which would otherwise be provided by SAFECO Services. Fees incurred by a Fund
for these services will not exceed the transfer agency fee payable to SAFECO
Services. Any distribution expenses associated with these arrangements will be
borne by SAM.
<PAGE> 2
SAFECO Tax-Exempt Bond Trust
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED JULY 31, 1995
SUPPLEMENT DATED MAY 31, 1996
The last two sentences in the first full paragraph and the table on page 26 are
changed to read as follows:
SAFECO Services provides, or through subcontracts makes provision for, all
required transfer agent activity, including maintenance of records of each
Fund's shareholders, records of transactions involving each Fund's shares, and
the compilation, distribution, or reinvestment of income dividends or capital
gains distributions. SAFECO Services is paid a fee for these services equal to
$32.00 per shareholder account, but not to exceed .30% of each Fund's average
net assets. The following table shows the fees paid by each Fund to SAFECO
Services during the past three fiscal years or periods:
<TABLE>
<CAPTION>
Years or Periods Ended*
March 31, 1995 March 31, 1994 March 31, 1993
-------------- -------------- --------------
<S> <C> <C> <C>
Municipal Fund $531,978 $557,561 $543,098
California Fund $ 68,840 $ 66,667 $ 67,124
Intermediate Fund $ 17,330 $ 11,109 $ 0
Insured Fund $ 5,164 $ 3,617 $ 0
Washington Fund $ 3,219 $ 2,801 $ 0
</TABLE>
*Table reflects fees of $3.10 per shareholder transaction payable pursuant to
the prior fee schedule.
