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This is filed pursuant to Rule 497(e).
File Nos. 033-66630 and 811-07916
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ALLIANCE CAPITAL [LOGO] Alliance Mutual Funds
Supplement to Prospectuses July 1, 1996
This supplement to the current prospectuses of the
Alliance Mutual Funds supersedes certain information regarding
Class C shares under the heading "Purchase and Sale of Shares."
Class C shares purchased on or after July 1, 1996 and
redeemed within one year of purchase will be subject to a
contingent deferred sales charge ("CDSC") equal to 1% of the
lesser of the original cost of the shares being redeemed or net
asset value at the time of redemption. The CDSC will be deducted
from the amount of the redemption proceeds and will be paid to
Alliance Fund Distributors, Inc.
No CDSC will be imposed on increases in net asset value
above the initial purchase price. In addition, no CDSC will be
assessed on shares derived from reinvestment of dividends or
capital gains distributions.
The Class C CDSC will be waived on redemptions of
Class C shares following the death or disability of a
shareholder, to meet the requirements of certain qualified
retirement plans or pursuant to a monthly, bimonthly or quarterly
systematic withdrawal plan. See the Fund's current Statement of
Additional Information.
Class C shares will continue to age without regard to
exchanges for the purpose of determining the CDSC, if any, upon
redemption. When redemption occurs, the CDSC applicable to the
original shares will be applied.
<PAGE>
This is filed pursuant to Rule 497(e).
File Nos. 033-66630 and 811-07916
<PAGE>
ALLIANCE CAPITAL [LOGO] Alliance Mutual Funds
Supplement to Statements of Additional Information July 1, 1996
This supplement to the current statements of additional
information of the Alliance Mutual Funds supersedes certain
information under the headings "Purchase of Shares" and
"Shareholder Services."
Purchase of Shares
In determining the contingent deferred sales charge
("CDSC") applicable to a redemption of Class C shares, it will be
assumed that the redemption is first of any Class C shares in the
shareholder's account that were purchased prior to July 1, 1996
and therefore are not subject to a CDSC, second of Class C shares
held for more than one year or acquired pursuant to reinvestments
of dividends or distributions, and third of Class C shares held
shortest during the first year after purchase. When Class C
shares acquired in an exchange are redeemed, the applicable CDSC,
if any, will be that applied to Class C shares originally
purchased.
The CDSC on Class C shares will be waived on redemptions
of shares (i) following the death or disability, as defined in
the Internal Revenue Code of 1986, as amended, of a shareholder,
(ii) to the extent that the redemption represents a minimum
required distribution from an individual retirement account or
other retirement plan to a shareholder who has attained the age
of 70-1/2, (iii) that had been purchased by present or former
Directors of the Fund, by the relative of any such person, by any
trust, individual retirement account or retirement plan account
for the benefit of any such person or relative, or by the estate
of any such person or relative or (iv) pursuant to a systematic
withdrawal plan (see "Shareholder Services - Systematic
Withdrawal Plan" in the Statement of Additional Information).
Shareholder Services
Class C shareholders of any Alliance Mutual Fund will be
able to exchange their Class C shares ("original Class C shares")
for Class C shares of any other Alliance Mutual Fund that offers
Class C shares ("new Class C shares"), without the payment of any
contingent deferred sales or services charges. For purposes of
computing the CDSC payable upon disposition of the new Class C
shares, the holding period of the original Class C shares is
added to the holding period of the new Class C shares. When the
<PAGE>
new Class C shares are redeemed, the CDSC, if any, will be that
applicable to the original Class C shares.
00250105.AT9
