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AIM TAX-EXEMPT FUNDS, INC.
AIM TAX-EXEMPT CASH FUND
AIM TAX-FREE INTERMEDIATE FUND
AIM TAX-EXEMPT BOND FUND OF CONNECTICUT
AIM HIGH INCOME MUNICIPAL FUND
Supplement dated October 1, 1999 to the
Statement of Additional Information dated July 29, 1999
The following is added after the heading "INVESTMENT PROGRAM AND
RESTRICTIONS-INVESTMENTS IN SECURITIES OWNED BY OFFICERS AND DIRECTORS" on page
20 of the Statement of Additional Information:
"INVESTMENT IN OTHER INVESTMENT COMPANIES
Each of the Funds may invest in other investment
companies to the extent permitted by the 1940 Act, and rules
and regulations thereunder, and if applicable, exemptive
orders granted by the SEC. The Funds have obtained an
exemptive order from the SEC allowing them to invest in money
market funds that have AIM or an affiliate of AIM as an
investment adviser (the "Affiliated Money Market Funds"),
provided that investments in Affiliated Money Market Funds do
not exceed 25% of the total assets of such Fund. With respect
to a Fund's purchase of shares of the Affiliated Money Market
Funds, the Fund will indirectly pay the advisory fees and
other operating expenses of the Affiliated Money Market
Funds.
TEMPORARY DEFENSIVE INVESTMENTS
In anticipation of or in response to adverse market
conditions, for cash management purposes, or for defensive
purposes, each of the Funds may temporarily hold all or a
portion of its assets in cash, money market instruments,
bonds, or other debt securities. Each of the Funds may also
invest up to 25% of its total assets in Affiliated Money
Market Funds for these purposes. For a description of the
various rating categories of corporate bonds and commercial
paper in which the Funds may invest, see "Ratings of
Securities" in this Statement of Additional Information."
