The effects of fluctuations in both intra‐ and inter‐atomic matrix elements on the spectra of the ’’two‐band’’ tight‐binding models of Weaire and coworkers1are studied using a self‐consistent Green’s function technique. The calculated spectra show the expected broadening of the delta‐function peaks, as well as finite state densities extending above and below each band. The self‐consistent approximation developed can also take account of short‐range order in the fluctuations of interaction energies.