FILED PURSUANT TO RULE 497 (E)
                                                REGISTRATION FILE NOS. 033-81574
                                                                        811-8620



                               THE MILESTONE FUNDS
                         TREASURY OBLIGATIONS PORTFOLIO
                                (THE "PORTFOLIO")

 Supplement dated July 7, 2004 to the Portfolio's Prospectuses and Statement of
       Additional Information dated March 29, 2004, offering shares of the
     Financial Class, Institutional Class, Investor Class and Premium Class



                                      *****
         This   Supplement   updates  certain   information   contained  in  the
above-dated Prospectuses and Statement of Additional Information.

         At a  meeting  held on April  19,  2004,  the  Board of  Trustees  (the
"Board") of the Portfolio  approved the  termination  of Unified Fund  Services,
Inc. and Unified Management Corp. ("Unified") as the Transfer Agent, Distributor
and  Underwriter,  respectively,  of the Portfolio.  The Board then approved the
appointment  of ALPS Mutual Funds  Services,  Inc.  ("ALPS") as the  Portfolio's
Distributor,  Transfer Agent and Underwriter.  Accordingly, on July 6, 2004, all
references  to  Unified  as the  Portfolio's  Transfer  Agent,  Distributor  and
Underwriter in each  Prospectus and the Statement of Additional  Information are
no longer  applicable  and should be replaced with ALPS,  1625  Broadway,  Suite
2200, Denver, CO 80202.

         If you require additional information, please call 800-941-MILE (6453).



Dated:  July 7, 2004