PIPER FUNDS INC II
497, 1996-12-23
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                             GOVERNMENT INCOME FUND
                             INTERMEDIATE BOND FUND
                    ADJUSTABLE RATE MORTGAGE SECURITIES FUND

                      Supplement dated December 23, 1996 to
                        Prospectus dated November 6, 1996

SPECIAL OFFERING PERIOD EXTENDED

     The Special Offering Period referred to on page 2 and discussed in detail
on page 29 of the Prospectus has been extended through February 14, 1997.

AGGREGATION

     As discussed on page 31 of the Prospectus under "Reducing Your Sales
Charge--Aggregation," initial sales charges on Fund shares may be reduced or
eliminated by aggregating your purchase with purchases of certain related
personal accounts.  These accounts previously included the accounts of any of
your children who were under the age of 21.  You may now include the accounts of
any of your children, regardless of age.

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