Supplement Dated Nov. 19, 2003* to the Prospectus Dated
Oct. 30, 2003 of American Express(R) Variable Portfolio Funds S-6466-99 W
       AXP(R) Variable Portfolio - Blue Chip Advantage Fund
       AXP(R) Variable Portfolio - Stock Fund
       AXP(R) Variable Portfolio - Capital Resource Fund
       AXP(R) Variable Portfolio - Partners Small Cap Value Fund



The Fund's  Directors  have approved in principle the merger of AXP(R)  Variable
Portfolio - Blue Chip Advantage Fund and AXP(R) Variable  Portfolio - Stock Fund
into AXP(R)  Variable  Portfolio - Capital  Resource  Fund, a Fund that seeks to
provide  shareholders with capital  appreciation by investing  primarily in U.S.
common stocks of companies with market capitalization of at least $5 billion and
other securities convertible into common stock. Unlike AXP(R) Variable Portfolio
- - Blue Chip Advantage Fund,  AXP(R) Variable  Portfolio - Capital  Resource Fund
does not limit its investments to those defined as "blue chip."

Effective Jan. 1, 2004, the portfolio  manager for AXP(R)  Variable  Portfolio -
Blue Chip Advantage Fund will be Doug Chase,  who is also the portfolio  manager
for AXP(R) Variable  Portfolio - Capital Resource Fund. The Fund will be managed
in a style substantially  similar to that of AXP(R) Variable Portfolio - Capital
Resource Fund.

Effective on or after May 1, 2004, AXP(R) Variable  Portfolio - Capital Resource
Fund will change its name to AXP(R) Variable Portfolio - Large Cap Equity Fund.

For more  information  about AXP(R) Variable  Portfolio - Capital Resource Fund,
please call (800) 862-7919 for a prospectus. Completion of the merger is subject
to a number of conditions,  including final approval by the Fund's Directors and
approval by  shareholders  of the Fund at a shareholder  meeting  expected to be
held within  approximately  the next six months.  It is anticipated  that AXP(R)
Variable  Portfolio - Blue Chip Advantage Fund and AXP(R)  Variable  Portfolio -
Stock Fund will be closed to new investors during the second quarter of 2004.

Effective  Dec.  1,  2003,  the total  fees and  expenses  for  AXP(R)  Variable
Portfolio - Partners Small Cap Value Fund will be capped at 1.39%.


S-6466-37 A (11/03)
* Valid until Oct. 29, 2004