Prospectus Supplement -- July 13, 2004*
    AXP(R) Variable Portfolio - New Dimensions Fund(R) (Oct. 30, 2003)

Gordon Fines, Vice President and Senior Portfolio Manager of American Express
Financial Corporation ("AEFC") and leader of AEFC's Growth Spectrum Team, which
is responsible for the management of the Fund, is taking a medical leave of
absence from AEFC. AEFC expects that Mr. Fines will resume his responsibilities
within 90 days. William F. "Ted" Truscott, Senior Vice President and Chief
Investment Officer of AEFC, will lead the Growth Spectrum Team that will manage
the Fund until Mr. Fines' return. Duncan J. Evered, who also manages the AXP
Equity Select Fund, and Paul Rokosz, who also manages the AXP Strategy
Aggressive Fund, will work closely with Mr. Truscott on the day-to-day
management of the Fund. Both Messrs. Evered and Rokosz are currently members of
the Growth Spectrum Team and have played an important role in building the staff
of analysts that supports the Growth Spectrum Team's investment process. The
respective biographies of Messrs. Truscott, Evered and Rokosz appear below.

William F. Truscott, Senior Vice President and Chief Investment Officer

o    Joined AEFC in 2001.

o    Chief  Investment  Officer,  Zurich  Scudder  Investments,   Americas,  and
     Managing Director,  Zurich Scudder Investments,  from 2000 to 2001; Head of
     Equity  Research,  Zurich  Scudder  Investments,   Americas,  and  Managing
     Director, Zurich Scudder Investments, from 1996 to 2001.

o    Began investment career in 1983.

o    MBA, New York University.

Duncan J. Evered, Portfolio Manager

o    Joined AEFC in 1994.

o    Began investment career in 1984.

o    MBA, Stanford School of Business.

Paul Rokosz, CFA, Portfolio Manager

o    Joined AEFC in 1998.

o    Senior Analyst, Putnam Investments, from 1996 to 1998.

o    Began investment career in 1986.

o    MBA, University of Chicago Graduate School of Business.



S-6466-47 A (7/04)
Valid until next update
*Destroy Oct. 29, 2004