The U.S. Treasury and government market is by far the largest securities market in the world, with a daily trading volume of over $100 billion.

What makes this market most attractive to investors is the credit safety of its securities, the principal and interest payments of which are guaranteed by the "full faith and credit" of the U.S. Government or one of its agencies. The Intermediate Government Bond Series invests primarily in U.S. Government agency securities, which tend to offer relatively attractive yields.

It is important to note that the U.S. Government guarantee applies only to the credit quality of a bond, not to its market value. The market value of government securities will fluctuate in the same manner as other types of bonds.

Why should I choose the Dupree Intermediate Government Bond Series?

Of course we know that you can purchase individual government bonds from a variety of sources, but we would like to tell you about several important advantages to investing in the Intermediate Government Bond Series:

Easy Access to Your Money: Shares of the fund may be redeemed by telephone on any business day at the current net asset value. Free check writing is also available (see below). There is no minimum time period for which your money must remain invested and no withdrawal charges should you wish to sell.

Monthly Income Distributions: Dividends are distributed monthly and may be paid out in cash or reinvested in additional shares of the fund.

Free Check Writing: You may write check, free of charge, on your Intermediate Government Bond Series account. The minimum check amount is $500 and there is no maximum.

Low Minimum Investment: You may open and add to your account with investments of as little as $100.

Competitive Yield: U.S. Government securities offer attractive yields, providing higher current income than traditional savings vehicles such as certificates of deposit and money market accounts.*

100% No-load: No-load means no sales charges, withdrawal penalties or 12b-1 fees. 100% of an investment with Dupree goes to work for you.

Professional Portfolio Management: Dupree has specialized in bond fund management since 1979. Our experience helps us make the best possible choices for our fund portfolios and for our shareholders.

* Unlike CD's and money market accounts, the fund's yield and share price will vary. You may have a gain or loss if you sell your shares. Furthermore, unlike most CD's, the fund is not FDIC insured.

Tell me more about Dupree Mutual Funds.

Dupree & Company, the Fund's Investment Adviser, began business in 1941 as a regional securities brokerage firm specializing in municipal and government bonds. Over the years, Dupree grew to become one of Kentucky's leading public finance firms, structuring complex and innovative municipal bond financing for some of the largest public projects in the states.

In 1979, Dupree & Company started the Kentucky Tax-Free Income Fund, the first mutual fund to invest solely in Kentucky municipal bonds and one of the first single-state bond funds in the entire country. Since then, Dupree Mutual Funds has grown in include both long-term and short-term funds in five states: Alabama, Kentucky, Mississippi, North Carolina, and Tennessee.

The Dupree Intermediate Government Bond Series was started in 1992 in response to requests from investors in our tax-free funds who were looking for a high-quality government bond fund managed by a company they knew they could trust. Like all of Dupree's funds, the Government Bond Series is 100% no-load: no initial fees or trailing commissions. When you invest with Dupree, you purchase shares of our funds directly from us rather than from an investment broker or other representative, thus avoiding the sales commission.

However, we assure you the only thing you will miss will be higher costs. Dupree Mutual Funds is committed to achieving outstanding performance while providing superior customer service.

Please call for a Prospectus before investing.