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Excelsior Funds
(the "Trust")
Supplement dated October 5, 1999
to Prospectus dated December 24, 1998
On July 30, 1999, the Board of Trustees of the Trust approved the
proposed reorganization of the Trust's Institutional Money Fund into the Money
Fund of Excelsior Funds, Inc. (the "Company"). The proposed reorganization will
be submitted to a vote of the shareholders of the Trust on or about November 23,
1999. If the reorganization is approved by the shareholders, and certain other
conditions are satisfied, the assets and liabilities of the Trust's
Institutional Money Fund will be transferred to the Company's Money Fund in
exchange for Institutional Shares of the Company's Money Fund, and the Trust
will deregister under the Investment Company Act of 1940. A combined proxy
statement and prospectus with respect to the proposed reorganization will be
mailed to the shareholders in advance of the meeting. If the reorganization is
approved by the shareholders, it is expected that the reorganization will occur
in December 1999.
