<PAGE> 1
AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. INTERNATIONAL EQUITY FUND
Supplement dated July 1, 1998
to the Prospectus dated May 1, 1998
The last sentence in the first paragraph under the caption "CERTAIN INVESTMENT
STRATEGIES AND TECHNIQUES - OPTIONS" on page 6 is deleted and replaced in its
entirety by the following:
"A put option is covered if, for example, the Fund maintains in a segregated
account liquid assets with a value equal to the exercise price of the put
option."
The following paragraphs are added to the discussion appearing under the caption
"RISK FACTORS - FOREIGN SECURITIES - CURRENCY RISK," on page 7 of the
prospectus:
"Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, the
Netherlands, Portugal, and Spain are members of the European Economic and
Monetary Union (the "EEMU"). The EEMU intends to establish a common European
currency for participating countries which will be known as the "euro." It
is anticipated that each participating country will supplement its existing
currency with the euro on January 1, 1999, and will replace its existing
currency with the euro on July 1, 2002. Any other European country which is
a member of the EEMU may elect to participate in the EEMU and may supplement
its existing currency with the euro after January 1, 1999.
The expected introduction of the euro presents unique risks and
uncertainties, including whether the payment and operational systems of
banks and other financial institutions will be ready by January 1, 1999; how
outstanding financial contracts will be treated after January 1, 1999; the
establishment of exchange rates for existing currencies and the euro; and
the creation of suitable clearing and settlement systems for the euro. These
and other factors could cause market disruptions before or after the
introduction of the euro and could adversely affect the value of securities
held by the Fund."
The following paragraph should be added after the last paragraph of the
"DIVIDENDS, DISTRIBUTIONS AND TAX MATTERS" section on page 11 of the prospectus:
"Shareholders should also note that the IRS is currently considering whether
and when the introduction of a single European currency (euro) in 1999 will
cause gain or loss to be realized on foreign financial instruments
denominated in certain European currencies, which could affect the amount of
distributions made by each Fund investing in such instruments."
