NOTE 1--Significant Accounting Policies:
Dreyfus Premier State Municipal Bond Fund (the "Trust") is registered under the Investment Company Act of
1940 ("Act") as a non-diversified open-end management investment company and operates as a series company
currently offering thirteen series including the Pennsylvania Series (the "Fund"). The Fund's investment objective is
to maximize current income exempt from Federal and, where applicable, from State income taxes, without undue
risk. The Dreyfus Corporation (the "Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A.
Premier Mutual Fund Services, Inc. (the "Distributor") is the distributor of the Fund's shares. The Fund is
authorized to issue an unlimited number of $.001 par value shares in the following classes of shares: Class A,
Class B and Class C shares. Class A shares are subject to a sales charge imposed at the time of purchase, Class
B shares are subject to a contingent deferred sales charge ("CDSC") imposed on Class B share redemptions
made within six years of purchase (five years for shareholders beneficially owning Class B shares on November
30, 1996) and Class C shares are subject to a CDSC imposed on Class C shares redeemed within one year of
purchase. Other differences between the classes include the services offered to and the expenses borne by each
class and certain voting rights.
The Trust accounts separately for the assets, liabilities and operations of each fund. Expenses directly attributable
to each fund are charged to that fund's operations; expenses which are applicable to all funds are allocated
among them on a pro rata basis.
The Fund's financial statements are prepared in accordance with generally accepted accounting principles which
may require the use of management estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (excluding options and financial futures on municipal and U.S.