NUVEEN TAX EXEMPT UNIT TRUST SERIES 764
497, 1994-11-08
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<PAGE>
NUVEEN  Tax-Exempt Unit Trusts
     NUVEEN
     CONNECTICUT
     TRUST 268
              (CONNECTICUT TRADITIONAL TRUST 268)
 
            Estimated Current Return
            6.13% to 6.38%
            as of 11/04/94
 
            Estimated Long Term Return
            6.28% to 6.53%
             35,000 units in a
             diversified $3,500,000
             portfolio of tax-exempt
             bonds
                  Cusip:
                  67094E 527 Monthly Payment Option
                  67094E 535 Quarterly Payment Option
                  67094E 543 Semi-Annual Payment Option
 
                  Registered in Connecticut
                    John Nuveen & Co. Incorporated
                    Investment Bankers
 
<TABLE>
<S>                           <C>
Chicago:                      Atlanta
333 W. Wacker Dr.             Austin
Chicago, Illinois 60606       Boca Raton
Telephone: 312.917.7700       Boston
                              Columbus
New York:                     Dallas/Ft. Worth
Swiss Bank Tower              Irvine
10 East 50th Street           Philadelphia
New York, New York 10022      Phoenix
Telephone: 212.207.2000       San Francisco
                              Seattle
                              Tampa
                              Washington, D.C.
</TABLE>
 
<PAGE>
- --------------------------------------------------------------------------------
 
NUVEEN TAX-EXEMPT UNIT TRUST--CONNECTICUT TRADITIONAL TRUST 268
SCHEDULE OF INVESTMENTS
DATE OF DEPOSIT NOVEMBER 7, 1994
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                                                             Ratings
                                                                                    Optional         -----------------------
  Aggregate            Name of Issuer and Title of Issue Represented               Redemption        Standard
  Principal               by Sponsor's Contracts to Purchase Bonds                 Provisions        & Poor's       Moody's
  <C>       <C> <S>                                                              <C>                 <C>           <C>
  --------------------------------------------------------------------------------------------------------------------------
  $  500,000    State of Connecticut, Special Tax Obligation Bonds,                No Optional          AA-           A1
                  Transportation Infrastructure Purposes, 1992 Series B,              Call
                  6.125% Due 9/1/12.
     525,000    State of Connecticut General Fund Obligation Bonds, 1994           2004 at 102          AA-           A1
                  Series A, Issued By Connecticut Development Authority,
                  6.375% Due 10/15/24. (General Obligation Bonds.)
     225,000    Connecticut Development Authority, Water Facilities                2004 at 102          AAA           Aaa
                  Refunding Revenue Bonds (Bridgeport Hydraulic Company
                  Project-1994A Series), 6.05% Due 3/1/29. (MBIA Insured.)
     500,000    State of Connecticut, Health and Educational Facilities            2004 at 102          AAA           Aaa
                  Authority, Revenue Bonds, New Britain General Hospital
                  Issue, Series B, 6.00% Due 7/1/24. (AMBAC Insured.)
     250,000    State of Connecticut Health and Educational Facilities             2004 at 102          AA-           A1
                  Authority, Revenue Bonds, Nursing Home Program Issue,
                  Series 1994 (St. Camillus Health Center Project), 6.25%
                  Due 11/1/18. (General Obligation Bonds.)
     275,000    State of Connecticut Health and Educational Facilities             2003 at 102          AAA           Aaa
                  Authority, Revenue Bonds, Saint Francis Hospital and
                  Medical Center Issue, Series C, 5.00% Due 7/1/23. (FGIC
                  Insured.)
     400,000    State of Connecticut Health and Educational Facilities             2004 at 102          AA-           A1
                  Authority, Revenue Bonds, Nursing Home Program Issue,
                  Series 1994 (Wadsworth Glen Health Care Center Project),
                  6.50% Due 11/1/16. (General Obligation Bonds.) (When
                  issued.)
     300,000    State of Connecticut, Clean Water Fund Revenue Bonds, 1994         2004 at 102          AA+           Aa
                  Series, 5.75% Due 6/1/13.
     525,000    Commonwealth of Puerto Rico, Public Improvement Bonds of           2004 at 101          AAA           Aaa
                  1994 (General Obligation Bonds), 6.50% Due 7/1/23. (MBIA             1/2
                  Insured.)
  ----------
  $3,500,000
  ----------
  ----------
</TABLE>
 
<PAGE>
- --------------------------------------------------------------------------------
UNIT PRICE, ESTIMATED CURRENT RETURN AND ESTIMATED LONG TERM RETURN DEPEND ON
AMOUNT PURCHASED AND PAYMENT OPTION    The sales charges/volume discounts below
apply on all concurrent purchases of any Nuveen trust units, unless any such
purchases are made by a class of investors for which a separate sales charge is
applicable as described more fully in the Prospectus. Estimated Current Return
equals net income divided by offering price. Estimated Long Term Return
represents an average of the yields to maturity (or call) of the Bonds in the
Trust adjusted to reflect expenses and sales charges.
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                          Estimated Current Return (2)
                                                              -----------------------------------------------------
          AMOUNT PURCHASED                         Public
- -------------------------------------  Sales      Offering          Monthly         Quarterly       Semi-Annual
     Units              Dollars        Charge     Price (1)         Payment          Payment          Payment
- ----------------  -------------------  ------    -----------     -------------    -------------    -------------
<S>               <C>                  <C>       <C>         <C>                <C>              <C>
50-499                 $5,000-$49,999   4.90 %   $     96.16          6.13%            6.17%            6.19%
500-999                 50,000-99,999   4.75           96.01          6.14             6.18             6.20
1,000-2,499           100,000-249,999   4.50           95.76          6.16             6.19             6.21
2,500-4,999           250,000-499,999   4.25           95.51          6.18             6.21             6.23
5,000-9,999           500,000-999,999   3.50           94.77          6.22             6.26             6.28
10,000-24,999     1,000,000-2,499,999   3.00           94.28          6.26             6.29             6.31
25,000-49,999     2,500,000-4,999,999   2.50           93.79          6.29             6.32             6.34
50,000 and over    5,000,000 and over   2.00           93.32          6.32             6.35             6.38
</TABLE>
 
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                         Estimated Long Term Return (3)
                                                              -----------------------------------------------------
          AMOUNT PURCHASED                         Public
- -------------------------------------  Sales      Offering          Monthly         Quarterly       Semi-Annual
     Units              Dollars        Charge     Price (1)         Payment          Payment          Payment
- ----------------  -------------------  ------    -----------     -------------    -------------    -------------
<S>               <C>                  <C>       <C>         <C>                <C>              <C>
50-499                 $5,000-$49,999   4.90 %   $     96.16          6.28%            6.32%            6.33%
500-999                 50,000-99,999   4.75           96.01          6.28             6.32             6.34
1,000-2,499           100,000-249,999   4.50           95.76          6.30             6.34             6.36
2,500-4,999           250,000-499,999   4.25           95.51          6.32             6.35             6.37
5,000-9,999           500,000-999,999   3.50           94.77          6.37             6.41             6.43
10,000-24,999     1,000,000-2,499,999   3.00           94.28          6.40             6.44             6.46
25,000-49,999     2,500,000-4,999,999   2.50           93.79          6.44             6.47             6.49
50,000 and over    5,000,000 and over   2.00           93.32          6.47             6.51             6.53
</TABLE>
 
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
 
(1) As of the business day prior to the Date of Deposit. Units are offered at
    the Public Offering Price plus accrued interest.
(2) All figures as of the business day prior to Date of Deposit. The estimated
    current return for purchases made on such date will be as shown, as long as
    the portfolio size and composition remain the same.
(3) In contrast to Estimated Current Return, Estimated Long Term Return reflects
    the amortization of premium or accretion of discount, if any, on the bonds
    in the Trust's portfolio.
 
- --------------------------------------------------------------------------------
 
INTEREST DISTRIBUTIONS TO UNITHOLDERS   Unitholders may elect to have interest
distributions made on a monthly, quarterly, or semi-annual basis. Record Dates
are May 1 and November 1 for semi-annual distributions; February 1, May 1,
August 1 and November 1 for quarterly distributions; and the first of each month
for monthly distributions. Details of interest distributions per unit under the
various plans appear in the following table based upon estimated net annual
interest income at the Date of Deposit:
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                                                                       Normal
                                                                                                                   Distributions
Connecticut Traditional Trust             1994                                  1995                                 per Year +
<S>                                     <C>            <C>            <C>            <C>            <C>            <C>
- -------------------------------------------------------------------------------------------------------------      --------------
Record Date*..........................       12/1            2/1            5/1            8/1           11/1
Distribution Date.....................      12/15           2/15           5/15           8/15          11/15
- ---------------------------------------------------------------------------------------------------------------------------------
Monthly Distribution Plan.............  $   .3931(1)                                                               $  5.8983
                                                             --------    $.4914 every month    --------
Quarterly Distribution Plan...........  $   .3931(1)   $   .9882(2)   $  1.4823      $  1.4823      $  1.4823      $  5.9303
Semi-Annual Distribution Plan.........  $   .3931(1)                  $  2.4780(3)                  $  2.9736      $  5.9493
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
  * Record Dates for semi-annual distributions are May 1 and November 1; for quarterly distributions, they are February 1, May 1,
    August 1 and November 1. Record Dates for monthly distributions are the first day of each month.
(1) The first distribution will be paid to all Unitholders, regardless of the distribution plan selected. Such distribution may
    be more or less than a regular monthly distribution.
(2) The second distribution under the quarterly distribution plan represents a 2-month distribution; subsequent quarterly
    distributions will be regular 3-month distributions.
(3) The second distribution under the semi-annual distribution plan represents a 5-month distribution; subsequent semi-annual
    distributions will be regular 6-month distributions.
</TABLE>
 
+ Interest for Unitholders of this series began to accrue as of the Date of
Deposit. Units purchased on the Date of Deposit will have $.13 of accrued
interest that will be added to the Public Offering Price on the Settlement Date.
After provision for expenses of the Fund, the daily rate of accrual from the
Date of Deposit to the first Record Date is $.01638 per unit per day.
Consequently, on the first Record Date (12/01/94), accrued interest will total
$0.3931 per unit for the 24-day period. All interest accrued from the Date of
Deposit to the first Record Date, less expenses, will be distributed on the
first Distribution Date to Unitholders of Record as of the first Record Date.
The first payment to all Unitholders of Record on 12/01/94 is $.3931 per unit.
After the first Record Date daily rates of accrual are:
              Monthly - $0.01638              Quarterly - $0.01647
                             Semi-Annual - $0.01652
This daily rate of accrual, and the annual distributions shown above, will
remain the same as long as the portfolio size and composition remain the same.
 
- --------------------------------------------------------------------------------
 
                                                          764
<PAGE>
- -------------------------------------------------------
 
AVERAGE PORTFOLIO LIFE   The average maturity of portfolio bonds is 25.8 years.
The first bond is scheduled to mature in September, 2012, with the last bond
maturity being March, 2029.
 
- -------------------------------------------------------
 
QUALITY OF PORTFOLIO AS RATED BY
STANDARD & POOR'S CORPORATION
OR MOODY'S INVESTORS SERVICES
- -------------------------------------------------------
 
<TABLE>
<S>                       <C>                    <C>
Rating                    Percent of Portfolio
Category                  Par Value
- --------------------------------------------------------------------
AAA                           44%
AA                            56
                             ---
                             100%
</TABLE>
 
- -------------------------------------------------------
 
CALL PROTECTION   Bonds are first subject to optional redemption by the issuers
in the years and at the prices shown under the Redemption Provisions column in
the Schedule of Investments. Unless otherwise stated, in subsequent years, bonds
are redeemable at declining prices, but not usually below par value. Some issues
or some portions of issues may also be subject to sinking fund redemption or
extraordinary redemption without premium prior to the dates shown.
 
- -------------------------------------------------------
 
NO CHARGE FOR REDEMPTION   The Trustee, United States Trust Company of New York,
will redeem units at net asset value. In addition, John Nuveen & Co.
Incorporated intends to maintain a secondary market for this Nuveen Tax-Exempt
Unit Trust. Inasmuch as all securities investments are subject to market price
fluctuation, net asset value at the time of redemption could be more or less
than the initial investment.
 
- -------------------------------------------------------
 
REINVESTMENT OPTIONS   Specify automatic reinvestment of trust income, with no
sales charge, to earn compounded dividends with Nuveen mutual funds.
 
- -------------------------------------------------------
 
UNITS OF THE TRUST ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK AND ARE NOT FEDERALLY INSURED OR OTHERWISE PROTECTED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY AND
INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
 
- -------------------------------------------------------
 
FOR A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION, INCLUDING CHARGES AND
EXPENSES, ON THIS NUVEEN TAX-EXEMPT UNIT TRUST AND ANY OTHER NUVEEN FUND, CALL
YOUR BROKER . . . OR NUVEEN AT
 
                                 1-800-257-8787
 
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
<PAGE>
NUVEEN  Tax-Exempt Unit Trusts
     NUVEEN
     SHORT INTERMEDIATE
     INSURED
     TRUST 36
 
            Estimated Current Return
            4.94% to 5.07%
            as of 11/04/94
 
            Estimated Long Term Return
            5.18% to 5.32%
             75,000 units in a
             diversified $7,500,000
             portfolio of tax-exempt
             bonds rated "AAA"
                  Cusip:
                  6710A0 379 Monthly Payment Option
                  6710A0 387 Quarterly Payment Option
                  6710A0 395 Semi-Annual Payment Option
 
                  Registered in all states
                    John Nuveen & Co. Incorporated
                    Investment Bankers
 
<TABLE>
<S>                           <C>
Chicago:                      Atlanta
333 W. Wacker Dr.             Austin
Chicago, Illinois 60606       Boca Raton
Telephone: 312.917.7700       Boston
                              Columbus
New York:                     Dallas/Ft. Worth
Swiss Bank Tower              Irvine
10 East 50th Street           Philadelphia
New York, New York 10022      Phoenix
Telephone: 212.207.2000       San Francisco
                              Seattle
                              Tampa
                              Washington, D.C.
</TABLE>
 
<PAGE>
- --------------------------------------------------------------------------------
 
NUVEEN TAX-EXEMPT UNIT TRUST--INSURED, SHORT INTERMEDIATE INSURED TRUST 36
SCHEDULE OF INVESTMENTS
DATE OF DEPOSIT NOVEMBER 7, 1994
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                                                             Ratings
                                                                                    Optional         -----------------------
  Aggregate            Name of Issuer and Title of Issue Represented               Redemption        Standard
  Principal               by Sponsor's Contracts to Purchase Bonds                 Provisions        & Poor's       Moody's
  <C>       <C> <S>                                                              <C>                 <C>           <C>
  --------------------------------------------------------------------------------------------------------------------------
  $  535,000    Kyrene Elementary School District No. 28 of Maricopa County,       No Optional          AAA           Aaa
                  Arizona, Refunding Bonds, Series 1993C, 0.00% Due 1/1/00.           Call
                  (Original issue discount bonds delivered on or about
                  November 30, 1993 at a price of 74.924% of principal
                  amount.)(General Obligation Bonds.)
     715,000    California Health Facilities Financing Authority, Insured          No Optional          AAA           Aaa
                  Hospital Revenue Bonds (San Diego Hospital Association),            Call
                  Series 1992B, 5.20% Due 8/1/99.
     750,000    City and County of Denver, Colorado, General Obligation            No Optional          AAA           Aaa
                  Refunding Bonds, Series 1992D, 5.10% Due 8/1/99.                    Call
     750,000    City of Homestead, Florida, Special Insurance Assessment           No Optional          AAA           Aaa
                  Revenue Bonds, Series 1993 (Hurricane Andrew Covered                Call
                  Claims Assistance Program), 4.90% Due 3/1/00.
     750,000    City of Decatur, Macon County, Illinois (Decatur Memorial          No Optional          AAA           Aaa
                  Hospital), Hospital Facility Revenue Bonds, Series 1991B,           Call
                  6.20% Due 10/1/99.
   1,000,000    Illinois Health Facilities Authority, Revenue Refunding            No Optional          AAA           Aaa
                  Bonds, Series 1991 (Sherman Hospital Project), 6.30% Due            Call
                  8/1/99.
     750,000    Massachusetts Bay Transportation Authority, General                No Optional          AAA           Aaa
                  Transportation System Bonds, Series A Refunding Bonds,              Call
                  6.00% Due 3/1/00. (General Obligation Bonds.)
     750,000    Dormitory Authority of the State of New York, Revenue Bonds,       No Optional          AAA           Aaa
                  City University Issue, Series U, 5.70% Due 7/1/99.                  Call
     750,000    Ohio Water Development Authority, Water Development Revenue        No Optional          AAA           Aaa
                  Refunding Bonds, Pure Water Refunding and Improvement               Call
                  Series, 5.20% Due 6/1/99.
     750,000    Central Kitsap School District No. 401, Kitsap County,             No Optional          AAA           Aaa
                  Washington, General Obligation and Refunding Bonds, Series          Call
                  1992A, 5.90% Due 12/1/99.
  ----------
  $7,500,000
  ----------
  ----------
</TABLE>
 
<PAGE>
- --------------------------------------------------------------------------------
UNIT PRICE, ESTIMATED CURRENT RETURN AND ESTIMATED LONG TERM RETURN DEPEND ON
AMOUNT PURCHASED AND PAYMENT OPTION    The sales charges/volume discounts below
apply on all concurrent purchases of any Nuveen trust units, unless any such
purchases are made by a class of investors for which a separate sales charge is
applicable as described more fully in the Prospectus. Estimated Current Return
equals net income divided by offering price. Estimated Long Term Return
represents an average of the yields to maturity (or call) of the Bonds in the
Trust adjusted to reflect expenses and sales charges.
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                          Estimated Current Return (2)
                                                              -----------------------------------------------------
          AMOUNT PURCHASED                         Public
- -------------------------------------  Sales      Offering          Monthly         Quarterly       Semi-Annual
     Units              Dollars        Charge     Price (1)         Payment          Payment          Payment
- ----------------  -------------------  ------    -----------     -------------    -------------    -------------
<S>               <C>                  <C>       <C>         <C>                <C>              <C>
50-499                 $5,000-$49,999   3.00 %   $    101.60          4.94%            4.97%            4.99%
500-999                 50,000-99,999   2.80          101.39          4.95             4.98             5.00
1,000-2,499           100,000-249,999   2.60          101.18          4.96             4.99             5.01
2,500-4,999           250,000-499,999   2.35          100.92          4.97             5.01             5.02
5,000-9,999           500,000-999,999   2.10          100.66          4.99             5.02             5.04
10,000-24,999     1,000,000-2,499,999   1.85          100.41          5.00             5.03             5.05
25,000-49,999     2,500,000-4,999,999   1.80          100.36          5.00             5.03             5.05
50,000 and over    5,000,000 and over   1.50          100.05          5.02             5.05             5.07
</TABLE>
 
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                         Estimated Long Term Return (3)
                                                              -----------------------------------------------------
          AMOUNT PURCHASED                         Public
- -------------------------------------  Sales      Offering          Monthly         Quarterly       Semi-Annual
     Units              Dollars        Charge     Price (1)         Payment          Payment          Payment
- ----------------  -------------------  ------    -----------     -------------    -------------    -------------
<S>               <C>                  <C>       <C>         <C>                <C>              <C>
50-499                 $5,000-$49,999   3.00 %   $    101.60          5.18%            5.22%            5.24%
500-999                 50,000-99,999   2.80          101.39          5.19             5.23             5.25
1,000-2,499           100,000-249,999   2.60          101.18          5.20             5.24             5.26
2,500-4,999           250,000-499,999   2.35          100.92          5.21             5.25             5.27
5,000-9,999           500,000-999,999   2.10          100.66          5.23             5.27             5.29
10,000-24,999     1,000,000-2,499,999   1.85          100.41          5.24             5.28             5.30
25,000-49,999     2,500,000-4,999,999   1.80          100.36          5.24             5.28             5.30
50,000 and over    5,000,000 and over   1.50          100.05          5.26             5.30             5.32
</TABLE>
 
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
 
(1) As of the business day prior to the Date of Deposit. Units are offered at
    the Public Offering Price plus accrued interest.
(2) All figures as of the business day prior to Date of Deposit. The estimated
    current return for purchases made on such date will be as shown, as long as
    the portfolio size and composition remain the same.
(3) In contrast to Estimated Current Return, Estimated Long Term Return reflects
    the amortization of premium or accretion of discount, if any, on the bonds
    in the Trust's portfolio.
 
- --------------------------------------------------------------------------------
 
REINVESTMENT OPTIONS   Specify automatic reinvestment of trust income, with no
sales charge, to earn compounded dividends with Nuveen mutual funds.
- --------------------------------------------------------------------------------
 
INTEREST DISTRIBUTIONS TO UNITHOLDERS   Unitholders may elect to have interest
distributions made on a monthly, quarterly, or semi-annual basis. Record Dates
are May 1 and November 1 for semi-annual distributions; February 1, May 1,
August 1 and November 1 for quarterly distributions; and the first of each month
for monthly distributions. Details of interest distributions per unit under the
various plans appear in the following table based upon estimated net annual
interest income at the Date of Deposit:
- --------------------------------------------------------------------------------
 
<TABLE>
<CAPTION>
                                                                                                                       Normal
                                                                                                                   Distributions
Short Intermediate Insured Trust          1994                                  1995                                 per Year +
<S>                                     <C>            <C>            <C>            <C>            <C>            <C>
- -------------------------------------------------------------------------------------------------------------      --------------
Record Date*..........................       12/1            2/1            5/1            8/1           11/1
Distribution Date.....................      12/15           2/15           5/15           8/15          11/15
- ---------------------------------------------------------------------------------------------------------------------------------
Monthly Distribution Plan.............  $   .3345(1)                                                               $  5.0199
                                                             --------    $.4182 every month    --------
Quarterly Distribution Plan...........  $   .3345(1)   $   .8418(2)   $  1.2627      $  1.2627      $  1.2627      $  5.0519
Semi-Annual Distribution Plan.........  $   .3345(1)                  $  2.1120(3)                  $  2.5344      $  5.0709
- ---------------------------------------------------------------------------------------------------------------------------------
<FN>
  * Record Dates for semi-annual distributions are May 1 and November 1; for quarterly distributions, they are February 1, May 1,
    August 1 and November 1. Record Dates for monthly distributions are the first day of each month.
(1) The first distribution will be paid to all Unitholders, regardless of the distribution plan selected. Such distribution may
    be more or less than a regular monthly distribution.
(2) The second distribution under the quarterly distribution plan represents a 2-month distribution; subsequent quarterly
    distributions will be regular 3-month distributions.
(3) The second distribution under the semi-annual distribution plan represents a 5-month distribution; subsequent semi-annual
    distributions will be regular 6-month distributions.
</TABLE>
 
+ Interest for Unitholders of this series began to accrue as of the Date of
Deposit. Units purchased on the Date of Deposit will have $.11 of accrued
interest that will be added to the Public Offering Price on the Settlement Date.
After provision for expenses of the Fund, the daily rate of accrual from the
Date of Deposit to the first Record Date is $.01394 per unit per day.
Consequently, on the first Record Date (12/01/94), accrued interest will total
$0.3345 per unit for the 24-day period. All interest accrued from the Date of
Deposit to the first Record Date, less expenses, will be distributed on the
first Distribution Date to Unitholders of Record as of the first Record Date.
The first payment to all Unitholders of Record on 12/01/94 is $.3345 per unit.
After the first Record Date daily rates of accrual are:
              Monthly - $0.01394              Quarterly - $0.01403
                             Semi-Annual - $0.01408
This daily rate of accrual, and the annual distributions shown above, will
remain the same as long as the portfolio size and composition remain the same.
 
- --------------------------------------------------------------------------------
<PAGE>
- -------------------------------------------------
 
DIVERSIFICATION OF PORTFOLIO INCOME
 
There are 10 Tax-exempt bond issues in this trust; this diversified portfolio
yields current income from issuers in 8 states.
- -------------------------------------------------------
<TABLE>
<CAPTION>
                   Percent
                   of Total
                   Income
<S>                    <C>        <C>
- ------------------------
                                  %
California                   9.5
Colorado                     9.7
Florida                      9.4
Illinois                    27.8
 
<CAPTION>
                   Percent
                   of Total
                   Income
- ------------------------
<S>                    <C>        <C>
                                  %
Massachusetts               11.5
New York                    10.9
Ohio                         9.9
Washington                  11.3
</TABLE>
 
- -------------------------------------------------
 
AVERAGE PORTFOLIO LIFE The average maturity
of portfolio bonds is 4.9 years.
 
<TABLE>
<CAPTION>
Year Bonds Mature                        Amount      Percent
- -------------------------------------  ----------  -----------
<S>                                    <C>         <C>
1999.................................       5,465        72.9%
2000.................................       2,035        27.1
</TABLE>
 
- -------------------------------------------------
 
BONDS INSURED BY MBIA   Each bond in this Nuveen Insured series has been
insured* by the Municipal Bond Investors Assurance Corporation, which guarantees
timely payments of principal and interest. Premium payments have been fully paid
by the Date of Deposit.
 
- -------------------------------------------------
 
CALL PROTECTION   Bonds are first subject to optional redemption by the issuers
in the years and at the prices shown under the Redemption Provisions column in
the Schedule of Investments. Unless otherwise stated, in subsequent years, bonds
are redeemable at declining prices, but not usually below par value. Some issues
or some portions of issues may also be subject to sinking fund redemption or
extraordinary redemption without premium prior to the dates shown.
 
- -------------------------------------------------
 
UNITS OF THE TRUST ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED
BY, ANY BANK AND ARE NOT FEDERALLY INSURED OR OTHERWISE PROTECTED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY AND
INVOLVE INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
 
- -------------------------------------------------
 
* Insurance relates specifically to the bonds and not to the units or to the
  market value of units. Terms of the insurance are more fully described in the
  prospectus. No representation is made as to the insurer's ability to meet its
  commitments. See Section 5 of the prospectus for details.
 
- -------------------------------------------------------
 
FOR A PROSPECTUS CONTAINING MORE COMPLETE INFORMATION, INCLUDING CHARGES AND
EXPENSES, ON THIS NUVEEN TAX-EXEMPT UNIT TRUST AND ANY OTHER NUVEEN FUND, CALL
YOUR BROKER . . . OR NUVEEN AT
 
                                 1-800-257-8787
 
READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
 
764


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