Fund Goal and Approach

The fund seeks as high a level of current income as is consistent with preservation of capital and the maintenance of liquidity. As a money market fund, the fund is subject to maturity, quality, and liquidity diversification requirements designed to help it maintain a stable share price of $1.00.

To pursue its goal, the fund invests in securities issued or guaranteed as to principal and interest by the U.S. government or its agencies or instrumentalities, and repurchase agreements (including tri-party repurchase agreements). The securities in which the fund invests include those backed by the full faith and credit of the U.S. government and those that are neither insured nor guaranteed by the U.S. government.

Main Risks

An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. The fund's yield will fluctuate as the short-term securities in its portfolio mature and the proceeds are reinvested in securities with different interest rates. Additionally, while the fund has maintained a constant share price since inception, and will continue to try to do so, neither The Dreyfus Corporation nor its affiliates are required to make a capital infusion, enter into a capital support agreement or take other actions to prevent the fund's share price from falling below $1.00. The following are the principal risks that could reduce the fund's income level and/or share price:

*Interest rate risk. This risk refers to the decline in the prices of fixed-income securities that may accompany a rise in the overall level of interest rates. A sharp and unexpected rise in interest rates could cause a money market fund's share price to drop below a dollar.

*U.S. Treasury securities risk. A security backed by the U.S. Treasury of the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity, but the market prices for such securities are not guaranteed and will fluctuate.

*Government securities risk. Not all obligations of the U. S. government, its agencies and instrumentalities are backed by the full faith and credit of the U.S. Treasury. Some obligations are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer. Any guarantee by the U.S. government or its agencies or instrumentalities of a security held by the fund does not apply to the market value of such security or to shares of the fund itself.

*Liquidity risk. When there is little or no active trading market for specific types of securities, it can become more difficult to sell the securities at or near their perceived value. In such a market, the value of such securities may fall dramatically, potentially lowering the fund's share price, even during periods of declining interest rates. Also, during such periods, redemptions by a few large investors in the fund may have a significant adverse effect on the fund's net asset value and remaining fund shareholders.

*Counterparty risk. The risk that a counterparty in a repurchase agreement could fail to honor the terms of its agreement.

Portfolio Manager

The Dreyfus Corporation has been manager since 5/1/1994.
Dreyfus, established in 1951 and headquartered in New York City, is one of the nation's leading asset management and distribution companies. As of June 30, 2010, Dreyfus manages over $384 billion in mutual funds, separately managed accounts, and institutional portfolios*.

Dreyfus is part of The Bank of New York Mellon ("BNY Mellon") Asset Management, a leading global provider of investment management products and services that offers a broad range of equity, fixed-income, hedge and liquidity management products through individual asset management companies and multiple distribution channels.

*Dreyfus assets under management include separately managed accounts and CIS non-money market assets that are as of May 31, 2010.

Other Funds Managed

Dreyfus Money Market Instruments, Inc.: Government Securities Series

Dreyfus New Jersey Municipal Money Market Fund, Inc.

Dreyfus Liquid Assets, Inc. - Class 1 Shares

Dreyfus Money Market Instruments, Inc.: Money Market Series

Dreyfus BASIC Money Market Fund, Inc.

Dreyfus Worldwide Dollar Money Market Fund, Inc.

General California Municipal Money Market Fund

General Municipal Money Market Fund

General New York Municipal Money Market Fund

Dreyfus Connecticut Municipal Money Market Fund, Inc.

Dreyfus Pennsylvania Municipal Money Market Fund

Dreyfus BASIC New Jersey Municipal Money Market Fund

Dreyfus BASIC Municipal Money Market Fund

Dreyfus Municipal Money Market Fund, Inc.

Dreyfus New York AMT-Free Municipal Money Market Fund

General Money Market Fund, Inc.

General Treasury Prime Money Market Fund

General Government Securities Money Market Fund

Dreyfus 100% U.S. Treasury Money Market Fund

Dreyfus BASIC S&P 500 Stock Index Fund

Dreyfus Midcap Index Fund, Inc.

Dreyfus BASIC California Municipal Money Market Fund

Dreyfus BASIC Massachusetts Municipal Money Market Fund

Dreyfus BASIC New York Municipal Money Market Fund

Dreyfus AMT-Free Municipal Reserves - BASIC Shares

Dreyfus AMT-Free Municipal Reserves - Class B

Dreyfus AMT-Free Municipal Reserves - Class R

Dreyfus AMT-Free Municipal Reserves - Investor Shares

Dreyfus Money Market Reserves - Class R

Dreyfus Money Market Reserves - Investor Shares

Dreyfus U.S. Treasury Reserves - Class R

Dreyfus U.S. Treasury Reserves - Investor Shares

Dreyfus S&P 500 Index Fund

Dreyfus International Stock Index Fund

Dreyfus Bond Market Index Fund - BASIC Shares

Dreyfus Bond Market Index Fund - Investor Shares

Dreyfus Smallcap Stock Index Fund

Dreyfus Massachusetts Municipal Money Market Fund

Investors should consider the investment objectives, risks, charges, and expenses of the fund carefully before investing. Download a prospectus that contains this and other information about the fund, and read it carefully before investing.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation, or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. As a measure of current income, seven-day yield is more reflective of the fund's income generating ability than total return.

1. Annualized distribution rate is based upon dividends per share from net investment income paid during the period, divided by the period ended maximum offering price per share, adjusted for capital gains (IF ANY) distributed during the period, and annualized based upon the number of days in the distribution period.