WASATCH FUNDS, INC.
                          Supplement dated July 6, 2001
                    to the Prospectus dated January 31, 2001

This Supplement updates certain information contained in the Wasatch Funds
Prospectus dated January 31, 2001 and supersedes the supplements dated March 16,
2001, May 16, 2001 and June 13, 2001. You should retain this Supplement and the
Prospectus for future reference. Additional copies of the Prospectus may be
obtained free of charge by calling 1 (800) 551-1700 or you may download a
Prospectus from our web site at WWW.WASATCHFUNDS.COM.
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In the Prospectus, the following information is to be inserted under the heading
"Wasatch Small Cap Growth Fund" on pages 4 and 20:

Effective July 6, 2001, the Wasatch Small Cap Growth Fund will close to new
investors through third parties such as brokers or banks.

In the Prospectus, the following information is to be inserted under the heading
"Wasatch Core Growth Fund" on pages 6 and 20:

Effective June 13, 2001, the Wasatch Core Growth Fund opened to new and existing
investors who purchase shares directly through Wasatch Funds. The Core Growth
Fund remains closed to new investors through third parties such as brokers or
banks as of the March 16, 2001 closing date.

In the Prospectus, the following information is to be inserted under the heading
"Wasatch Small Cap Value Fund" on pages 8 and 21:

Effective June 13, 2001, the Wasatch Small Cap Value Fund opened to new and
existing investors who purchase shares directly through Wasatch Funds. The Small
Cap Value Fund closed to new and existing investors through third parties such
as brokers or banks as of June 13, 2001.

In the Prospectus, the following information replaces the section with the
heading "Who Can Purchase Shares in the Micro Cap Fund" on page 39:

WHO CAN PURCHASE SHARES IN CLOSED OR SEMI-CLOSED FUNDS (MICRO CAP, SMALL CAP
GROWTH, CORE GROWTH AND SMALL CAP VALUE) (Also see "To Purchase Shares" on
page 37.)

o The Micro Cap Fund closed to new investors on March 31, 2000.

o The Small Cap Growth Fund closed to new investors through third parties such
  as brokers or banks on July 6, 2001.

o The Core Growth Fund opened to new and existing
  investors who purchase shares directly through Wasatch Funds on June 13, 2001.
  The Core Growth Fund remains closed to new investors through third parties
  such as brokers or banks as of the March 16, 2001 closing date.

o The Small Cap Value Fund opened to new and existing investors who purchase
  shares directly through Wasatch Funds on June 13, 2001. The Small Cap Value
  Fund closed to new and existing investors through third parties such as
  brokers or banks as of June 13, 2001.



o Micro Cap Fund shareholders as of the March 31, 2000 closing date, Small
  Cap Growth Fund shareholders who purchased shares through a third party on or
  before the July 6, 2001 closing date, and Core Growth Fund shareholders who
  purchased shares through a third party on or before the March 16, 2001 closing
  date, and certain others may continue to add to their respective accounts
  through the reinvestment of dividends and cash distributions on any shares
  owned and through the purchase of additional shares.

o Micro Cap Fund shareholders as of March 31, 2000, Small Cap Growth Fund
  shareholders through third parties as of July 6, 2001 and Core Growth Fund
  shareholders through third parties as of March 16, 2001 may also open and
  add to Fund accounts that have the same Social Security Number or registered
  shareholder as the accounts existing as of the closing date.

o Custodians named on accounts for minors (children under 18) in the Micro Cap
  Fund may open new accounts.

o Custodians named on Small Cap Growth and Core Growth Fund accounts that were
  opened through a third party for minors (children under 18) may open new
  accounts.

o Financial planners whose clients are Micro Cap, Small Cap Growth and Core
  Growth Fund shareholders may continue to purchase shares in these Funds for
  new and existing clients.

o Financial planners whose clients are Small Cap Value Fund shareholders may
  continue to purchase shares for those clients but not new clients.

o At the discretion of the Advisor, the Small Cap Growth and Core Growth Funds
  may be available through certain firms which provide administrative services
  to their customers who are shareholders of these Funds.

o Directors of the Funds and employees and directors of Wasatch Advisors, Inc.
  may continue to open new accounts.

o Participants in certain 401(k) plans may open new accounts and purchase shares
  in closed or semi-closed Funds.

o Any Funds that are closed or semi-closed may resume sales to investors at
  some future date to take in additional assets that the Advisor believes will
  help maintain such Fund at an optimal size. To find out if a Fund is open,
  please call a Shareholder Services Representative at 1 (800) 551-1700 or
  visit our web site at www.wasatchfunds.com.
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In the Prospectus, the following information is to be inserted under the
headings:

1) "Wasatch Ultra Growth Fund" on pages 10 and 22; and

2) "Wasatch Global Technology Fund" on pages 12 and 22.

The Advisor may close the Fund to new investors before assets reach a
level the Advisor believes may prove detrimental to the Fund. Once closed, due
to market conditions or cash outflows, the Fund may reopen from time to time to
take in additional assets that the Advisor believes will help maintain the Fund
at an optimal size. To find out if the Fund is open, please call a Shareholder
Services Representative at 1 (800) 551-1700 or visit our web site at
WWW.WASATCHFUNDS.COM.
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