AMERICAN CENTURY PREMIUM RESERVES, INC.
PROSPECTUS SUPPLEMENT
Premium Government Reserve * Premium
Capital Reserve * Premium Bond
SUPPLEMENT DATED JANUARY 15, 1998
Prospectus dated August 1, 1997
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AFTER THE SECTION "RULE 144A
SECURITIES" FOUND ON PAGE 15 OF THE PROSPECTUS.
INVESTMENTS IN COMPANIES WITH LIMITED OPERATING HISTORY
The funds may invest in the securities of issuers with limited operating
history. The manager considers an issuer to have a limited operating history if
that issuer has a record of less than three years of continuous operation.
Investments in securities of issuers with limited operating history may
involve greater risks than investments in securities of more mature issuers. By
their nature, such issuers present limited operating history and financial
information upon which the manager may base its investment decision on behalf of
the funds. In addition, financial and other information regarding such issuers,
when available, may be incomplete or inaccurate.
Premium Bond and Premium Capital Reserve will not invest more than 5% of
their total assets in the securities of issuers with less than a three-year
operating history. The manager will consider periods of capital formation,
incubation, consolidation, and research and development in determining whether a
particular issuer has a record of three years of continuous operation.
THE FOLLOWING DISCLOSURE IS ADDED ON PAGE 23 OF THE PROSPECTUS, FOLLOWING THE
LAST PARAGRAPH UNDER THE HEADING "WHEN SHARE PRICE IS DETERMINED."
We have contractual relationships with certain financial intermediaries in
which such intermediaries represent that they have systems to track the time at
which investment orders are received and to segregate orders received at
different times. Based on these representations, the fund has authorized such
intermediaries and their designees to accept purchase and redemption orders on
the fund's behalf up to the applicable cut-off time. The fund will be deemed to
have received such orders upon acceptance by the duly authorized intermediary,
and such orders will be priced at the fund's net asset value next determined
after acceptance on the fund's behalf by such intermediary.
THE FOLLOWING DISCLOSURE IS ADDED ON PAGE 27 OF THE PROSPECTUS, FOLLOWING THE
LAST PARAGRAPH UNDER THE HEADING "TRANSFER AND ADMINISTRATIVE SERVICES."
Pursuant to a Sub-Administration Agreement with the manager, Funds
Distributor, Inc. (FDI) serves as the Co-Administrator for the funds. FDI is
responsible for (i) providing certain officers of the funds and (ii) reviewing
and filing marketing and sales literature on behalf of the funds. The fees and
expenses of FDI are paid by the manager.
THE FOLLOWING DISCLOSURE REPLACES THE FIRST SENTENCE UNDER THE HEADING
"DISTRIBUTION OF FUND SHARES" FOUND ON PAGE 27 OF THE PROSPECTUS.
The funds' shares are distributed by FDI, a registered broker-dealer (the
Distributor). FDI is a wholly-owned indirect subsidiary of Boston Institutional
Group, Inc. FDI's principal business address is 60 State Street, Suite 1300,
Boston, Massachusetts 02109.
THE FOLLOWING DISCLOSURE SHOULD BE INSERTED AS THE LAST PARAGRAPH UNDER THE
HEADING "DISTRIBUTION OF FUND SHARES" ON PAGE 27 OF THE PROSPECTUS.
Investors may open accounts with American Century only through the
Distributor. All purchase transactions in the funds offered by this Prospectus
are processed by the transfer agent, which is authorized to accept any
instructions relating to fund accounts. All purchase orders must be accepted by
the Distributor.
P.O. Box 419200 [american century logo]
Kansas City, Missouri American
64141-6200 Century(reg.sm)
1-800-345-2021 or 816-531-5575
SH-SPL-11259 9801
