<PAGE>
Annual Report
DIVERSIFIED
SMALL-CAP
GROWTH FUND
-----------------
DECEMBER 31, 1997
-----------------
[LOGO OF T. ROWE PRICE APPEARS HERE]
<PAGE>
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
Diversified Small-Cap Growth Fund
. The fund commenced operations on the eve of stock market turbulence following
currency crises in Southeast Asia. Large-cap and value stocks recovered fairly
well, but small-cap growth stocks lagged.
. The fund's six-month return of 7.10% was basically in line with its Russell
benchmark index but underperformed the Lipper Small Cap Fund Index, which also
contains value-oriented funds.
. The portfolio spans a wide range of industries, with computer services and
software being the largest category of holdings at present -- 14.5% of net
assets.
. Attractive valuations and good fundamentals should ultimately result in good
performance for small-cap growth stocks relative to the market.
<PAGE>
FELLOW SHAREHOLDERS
This is our first report since the fund's inception on June 30, 1997, and we
would like to welcome you as shareholders. As it turned out, your fund got under
way on the eve of a tremendous pickup in stock market volatility, triggered by
turmoil in Southeast Asia. Nevertheless, the market and your fund posted solid
returns for the second half.
Each of the last two quarters of 1997 had a distinct personality. The third
quarter was sizzling for small growth companies, and the fund gained 13.7%. The
best performance from June through August belonged to the most volatile
companies--in other words, risk was rewarded. Micro-cap stocks beat small-caps,
which in turn beat large-caps, while lack of earnings or operating history was
not a hindrance to performance.
- ----------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Period Ended 12/31/97 6 Months
- --------------------------------------------------------------------------------
<S> <C>
Diversified Small-Cap Growth Fund 7.10%
................................................................................
Russell 2000 Growth Index 7.34
................................................................................
Lipper Small Cap Fund Index 8.50
................................................................................
</TABLE>
The picture soon changed abruptly, with a sell-off in stocks triggered by an
Asian economic and currency crisis. Volatility increased significantly across
the overall market, and we witnessed a "flight to quality" as investors sought
the relative safety of large-cap issues with low valuations. The year ended with
a pattern of returns that was almost a mirror image of the prior quarter's --
riskier stocks were the worst performers. In the final quarter of 1997, the fund
lost 5.9%.
The fund's return of 7.1% during the second half put it in line with the small
growth stock sector of the U.S. market. We will be using two different indices
for comparative purposes. The Lipper Small Cap Fund Index represents the average
return of the 30 largest small-company funds. These 30 funds follow a variety of
investment styles ranging from all-growth at one end to all-value at the other,
so the average doesn't have as much exposure to rapidly growing companies as the
fund. In periods when the performance difference between growth and value is
significant, the fund will deviate from the Lipper index. Over the past six
months, value stocks strongly outperformed growth, and our performance relative
to the Lipper index shows this effect.
1
<PAGE>
The second benchmark is the Russell 2000 Growth Index, which represents the
faster-growing companies in the Russell 2000, a widely known index of small-
company performance. Over time, this should be a reasonably good barometer of
the fund's performance.
STRATEGY REVIEW
We'd like to summarize our investment philosophy and strategy, since this is the
first report. The fund invests in the shares of small companies that are growing
their earnings at a rapid rate. Unlike many other funds investing in this sector
of the market, this fund has a very broadly diversified portfolio: its largest
holding is well under 1% of net assets, and the 25 largest compose less than
13%. At year-end, we held just over 300 securities. Our objective with wide
diversification is to capture the general performance of the small-cap sector of
the market while minimizing the impact of any individual stock. Small-cap growth
stocks can be extremely volatile. The stocks typically carry high valuations
based on forecasts of future growth, and when a company announces disappointing
news, its stock can fall 50% or more in a single day. This is a fact of life in
the small-cap growth sector of the market, so we prefer to limit the weight of a
single name in the portfolio.
Another key aspect of the fund's investment program is the use of quantitative
strategies for determining the overall characteristics of the portfolio and as
an aid in selecting individual stocks. Our database of investment-related
information ranges from historical accounting data to prospective earnings
forecasts, and we use a number of proprietary decision rules and data screens to
help manage the portfolio. We also take advantage of the sizable resources at T.
Rowe Price devoted to fundamental research for small companies and believe the
combination of these resources with quantitative tools creates a unique product.
Other important characteristics of the fund's approach include remaining fully
invested and paying careful attention to transaction costs and portfolio
turnover. Few managers have demonstrated the ability to successfully time stock
markets, and since equity returns have far outperformed cash over time, we will
remain fully committed to stocks. The rapid rotation between conservative and
aggressive stocks exhibited by the market in 1997 epitomizes the difficulty in
successfully timing the market. Finally, trading costs for smaller companies can
be high, and we think shareholder value can be maximized by maintaining a buy-
and-hold approach.
2
<PAGE>
Our companies span a range of industries from mundane to exciting, but they
share the prospect of higher earnings growth. Central Parking, a leading
operator and consultant in the automobile parking industry, is the largest
holding, and other major positions include the satellite and launch vehicle
company Orbital Sciences and CIBER, an information systems consulting firm. The
fund's average market cap is $872 million; for comparison purposes, the S&P
500's average market cap is $34.0 billion. On average, our companies expect to
produce earnings growth in excess of 25% compared with about 13% for the S&P
500, yet our portfolio sells at a P/E ratio just slightly higher.
- -------------------------
PORTFOLIO CHARACTERISTICS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Diversified Small-Cap
As of 12/31/97 Growth Fund S&P 500
- -----------------------------------------------------------------------------
<S> <C> <C>
Market Cap (Investment-
Weighted Median) $872 million $34.0 billion
.............................................................................
Earnings Growth Rate
Estimated Next 5 Years* 25.0% 13.0%
.............................................................................
P/E Ratio (Based on Next 12
Months' Estimated Earnings) 20.3X 19.1X
.............................................................................
</TABLE>
*Forecasts are based on T. Rowe Price research and are in no way an indication
of future investment returns.
The fund's industry exposure is shown in the table following this letter. As a
growth-oriented fund, our highest weights are in technology, services, and
health care -- all sectors that should produce higher earnings growth than the
overall economy. Underweighted sectors include utilities, natural resource-
related stocks, and other cyclical issues.
We track the earnings estimates of Wall Street analysts who follow our portfolio
companies, and during the fourth quarter over 65% of revisions were upward. This
compares with only 49% for the S&P 500 and illustrates that the portfolio
companies are generally reporting good news. As earnings growth in the S&P 500
slows down, which we expect to happen next year, investor focus should shift to
smaller companies that can continue to generate good growth.
OUTLOOK
The U.S. has been experiencing superb economic and business conditions, and at
this time rising interest rates seem unlikely. However, we do not expect another
year of strong stock returns like the past few. Although we see no clear signs
of a change of course for the market, a
3
<PAGE>
number of minor trends could affect 1998 returns. For example, a weakened
Southeast Asia could dampen our export markets, thereby restraining the growth
of corporate profits. In addition, the valuations of U.S. stocks, particularly
U.S. large-caps, fully reflect the good economic conditions, leaving them
vulnerable to disappointing news.
Historically, equities have provided the best returns among all asset classes,
and we expect this to remain true in the future. However, we would not be
surprised if returns were more modest than in the past or if market volatility
stayed at currently high levels.
Small-cap growth stocks wax and wane in popularity, and their weak performance
relative to the broad market over the past six months has produced favorable
conditions for the sector. An attractive relative valuation combined with good
fundamentals should ultimately produce better performance, although it's hard to
say what the specific catalyst will be or when market leadership will change.
We appreciate your investing in the fund and will work hard to achieve
attractive long-term appreciation.
Respectfully submitted,
/s/ Richard T. Whitney
Richard T. Whitney
President and Chairman of the Investment Advisory Committee
January 26, 1998
4
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
December 31, 1997
- --------------------
PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
INDUSTRY DIVERSIFICATION
Twenty-Five Largest Industries
<TABLE>
<CAPTION>
Percent of
Net Assets
12/31/97
- ------------------------------------------------------------------------------
<S> <C>
Computer Services and Software 14.5%
..............................................................................
Miscellaneous Business Services 9.0
..............................................................................
Hospital Supplies/Hospital Management 6.7
..............................................................................
Specialty Merchandisers 6.6
..............................................................................
Telecommunications Equipment 4.7
- ------------------------------------------------------------------------------
Bank and Trust 3.9
..............................................................................
Electronic Components 3.9
..............................................................................
Insurance 3.6
..............................................................................
Entertainment and Leisure 3.5
..............................................................................
Miscellaneous Consumer Products 3.1
- ------------------------------------------------------------------------------
Health Care Services 3.0
..............................................................................
Media and Communications 2.8
..............................................................................
Automobiles and Related 2.5
..............................................................................
Transportation Services 2.5
..............................................................................
Electronic Systems 2.4
- ------------------------------------------------------------------------------
Distribution Services 2.3
..............................................................................
Pharmaceuticals 2.2
..............................................................................
Energy Services 2.0
..............................................................................
Reserves 2.0
..............................................................................
Aerospace and Defense 1.9
- ------------------------------------------------------------------------------
Financial Services 1.9
..............................................................................
Exploration and Production 1.6
..............................................................................
Building and Construction 1.4
..............................................................................
Education 1.3
..............................................................................
Biotechnology 1.3
- ------------------------------------------------------------------------------
Total 90.6%
</TABLE>
5
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
- --------------------
PORTFOLIO HIGHLIGHTS
- --------------------------------------------------------------------------------
TWENTY-FIVE LARGEST HOLDINGS
<TABLE>
<CAPTION>
Percent of
Net Assets
12/31/97
- ------------------------------------------------------------------------------
<S> <C>
Central Parking 0.6%
..............................................................................
Orbital Sciences 0.6
..............................................................................
Comair Holdings 0.6
..............................................................................
CIBER 0.5
..............................................................................
Concentra Managed Care 0.5
- ------------------------------------------------------------------------------
Medicis Pharmaceutical 0.5
..............................................................................
CBT 0.5
..............................................................................
IDX Systems 0.5
..............................................................................
AAR 0.5
..............................................................................
Spine-Tech 0.5
- ------------------------------------------------------------------------------
Coast Savings Financial 0.5
..............................................................................
Eagle Hardware & Garden 0.5
..............................................................................
LIN Television 0.5
..............................................................................
UICI 0.5
..............................................................................
CMAC Investment 0.5
- ------------------------------------------------------------------------------
Sybron International 0.5
..............................................................................
Learning Tree International 0.5
..............................................................................
Citrix Systems 0.5
..............................................................................
HBO 0.5
..............................................................................
Promus Hotel 0.5
- ------------------------------------------------------------------------------
Imperial Bancorp 0.5
..............................................................................
Network Associates 0.5
..............................................................................
North Fork Bancorporation 0.5
..............................................................................
Coach USA 0.5
..............................................................................
Astoria Financial 0.5
- ------------------------------------------------------------------------------
Total 12.8%
</TABLE>
6
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
- ----------------------
PERFORMANCE COMPARISON
- --------------------------------------------------------------------------------
This chart shows the value of a hypothetical $10,000 investment in the fund over
the past 10 fiscal year periods or since inception (for funds lacking 10-year
records). The result is compared with a broad-based average or index. The index
return does not reflect expenses, which have been deducted from the fund's
return.
DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
Diversified
Small-Cap Russel 2000 Lipper Small Cap
Date Growth Fund Growth Index Fund Index
- ---- ----------- ------------ ----------------
<S> <C> <C> <C>
6/30/97 $10,000 $10,000 $10,000
12/97 $10,710 $10,743 $11,062
</TABLE>
- ------------------------------------
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- --------------------------------------------------------------------------------
This table shows how the fund would have performed if its actual (or cumulative)
returns for the periods shown had been earned at a constant rate each year.
<TABLE>
<CAPTION>
Since Inception
Period Ended 12/31/97 Inception Date
- --------------------------------------------------------------------------------
<S> <C> <C>
Diversified Small-Cap Growth Fund 7.10% 6/30/97
................................................................................
</TABLE>
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
7
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
- --------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6/30/97
Through
12/31/97
NET ASSET VALUE
<S> <C>
Beginning of period $ 10.00
...............
Investment activities
Net investment income (0.03)*
Net realized and unrealized gain (loss) 0.74++
...............
Total from investment activities 0.71
...............
Distributions
Net realized gain (0.01)
...............
NET ASSET VALUE
End of period $ 10.70
---------------
Ratios/Supplemental Data
Total return 7.10%*
.............................................................................
Ratio of expenses to average net assets 1.25%+*
.............................................................................
Ratio of net investment income to average net assets (0.67)%+*
.............................................................................
Portfolio turnover rate 13.4%
.............................................................................
Average commission rate paid 0.0252
.............................................................................
Net assets, end of period (in thousands) $ 72,071
.............................................................................
</TABLE>
* Excludes expenses in excess of a 1.25% voluntary expense limitation in effect
through 12/31/98.
+ Annualized.
++ The amount presented is calculated pursuant to a methodology prescribed by
the Securities and Exchange Commission for a share outstanding throughout the
period. This amount is inconsistent with the fund's aggregate gains and losses
because of the timing of sales and redemptions of the fund's shares in relation
to fluctuating market values for the investment protfolio.
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
December 31, 1997
<TABLE>
<CAPTION>
- -----------------------
STATEMENT OF NET ASSETS Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
COMMON STOCKS 98.0%
FINANCIAL 9.4%
Bank and Trust 3.9%
Astoria Financial 6,100 $ 342
........................................................................
Bay View Capital 6,200 226
........................................................................
City National 9,100 336
........................................................................
Coast Savings Financial * 5,400 370
........................................................................
Commerce Bancorp 4,500 230
........................................................................
Community First Bankshares 5,900 316
........................................................................
Imperial Bancorp * 7,000 345
........................................................................
North Fork Bancorporation 10,200 342
........................................................................
Silicon Valley Bancshares * 5,900 330
........................................................................
2,837
............
Insurance 3.6%
Amerin * 9,000 254
........................................................................
CMAC Investment 6,000 362
........................................................................
Executive Risk 4,200 293
........................................................................
FPA Medical Management * 8,800 165
........................................................................
HCC Insurance Holdings 13,100 278
........................................................................
Protective Life 5,400 323
........................................................................
Triad Guaranty * 8,500 250
........................................................................
UICI * 10,400 365
........................................................................
Western National 10,500 311
........................................................................
2,601
............
Financial Services 1.9%
AmeriCredit * 11,000 305
........................................................................
FIRSTPLUS Financial * 5,100 195
........................................................................
Imperial Credit Industries * 11,700 242
........................................................................
Legg Mason 5,866 328
........................................................................
Metris Companies 7,100 247
........................................................................
WMF Group * 1,833 23
........................................................................
1,340
............
Total Financial 6,778
............
</TABLE>
9
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -----------------------------------------------------------------------------
Shares/Par Value
- -----------------------------------------------------------------------------
In thousands
UTILITIES 0.4%
Telephone Services 0.4%
Comverse Technology * 6,800 $ 264
.............................................................................
Total Utilities 264
..........
CONSUMER NONDURABLES 17.7%
Cosmetics 0.8%
Alberto Culver (Class B) 7,100 228
.............................................................................
Medicis Pharmaceutical * 7,400 379
.............................................................................
607
..........
Beverages 0.2%
Robert Mondavi (Class A) * 3,500 171
.............................................................................
171
..........
Food Processing 0.4%
Smithfield Foods * 9,900 324
.............................................................................
324
..........
Hospital Supplies/Hospital Management 6.7%
Acuson * 13,800 229
.............................................................................
ADAC Laboratories * 10,900 214
.............................................................................
Airgas * 11,300 158
.............................................................................
Coherent * 3,400 119
.............................................................................
Genesis Health Ventures * 8,600 227
.............................................................................
HealthCare COMPARE * 5,100 262
.............................................................................
Healthdyne Technologies * 12,900 263
.............................................................................
Integrated Health Services 8,709 272
.............................................................................
Lincare * 5,700 326
.............................................................................
Mentor 8,800 323
.............................................................................
National Surgery Centers * 12,600 330
.............................................................................
NovaCare * 16,400 214
.............................................................................
Omnicare 9,600 298
.............................................................................
Patterson Dental * 3,300 150
.............................................................................
Pediatrix Medical Group * 6,900 295
.............................................................................
PhyCor * 10,500 284
.............................................................................
Respironics * 9,300 209
.............................................................................
Spine-Tech * 7,200 371
.............................................................................
Universal Health Services * 5,100 257
.............................................................................
4,801
...........
10
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- ------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------
In thousands
Pharmaceuticals 2.2%
Jones Medical Industries 7,100 $ 273
.........................................................................
Magainin Pharmaceuticals * 11,200 91
.........................................................................
Parexel International * 9,000 335
.........................................................................
Sofamor/Danek Group * 3,600 234
.........................................................................
SONUS Pharmaceuticals * 4,700 155
.........................................................................
Theragenics * 5,900 214
.........................................................................
Watson Pharmaceuticals * 7,800 253
.........................................................................
1,555
...........
Biotechnology 1.3%
Affymetrix * 2,700 84
.........................................................................
Dura Pharmaceuticals * 6,600 304
.........................................................................
NBTY * 8,100 271
.........................................................................
Serologicals * 12,000 307
.........................................................................
966
...........
Health Care Services 3.0%
Concentra Managed Care * 11,472 387
.........................................................................
Gulf South Medical Supply * 8,100 303
.........................................................................
Inhale Therapeutic Systems * 8,500 220
.........................................................................
Novoste * 6,900 154
.........................................................................
Orthodontic Centers of America * 12,900 214
.........................................................................
Renal Treatment Center * 8,700 314
.......................................................................
Thermo Vision * 1,680 14
.........................................................................
Total Renal Care * 11,666 321
.........................................................................
Urologix * 12,900 235
.........................................................................
2,162
...........
Miscellaneous Consumer Products 3.1%
Blyth Industries * 9,000 269
.........................................................................
Chicago Miniature Lamp * 7,400 251
.........................................................................
Culligan Water Technologies * 2,300 116
.........................................................................
Equity Corp International * 13,100 303
.........................................................................
Jones Apparel Group * 5,500 237
.........................................................................
Libbey 6,300 239
.........................................................................
Nautica Enterprises * 7,500 176
.........................................................................
Stewart Enterprises (Class A) 6,600 308
.........................................................................
Wolverine World Wide 14,600 330
.........................................................................
2,229
............
Total Consumer Nondurables 12,815
............
11
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
CONSUMER SERVICES 14.0%
General Merchandisers 1.1%
Bed Bath & Beyond * 8,400 $ 323
.........................................................................
Damark International (Class A) * 21,200 209
.........................................................................
Dollar Tree Stores * 6,150 256
.........................................................................
788
...........
Specialty Merchandisers 6.6%
Borders Group * 9,500 297
.........................................................................
Callaway Golf 8,500 243
.........................................................................
Cannondale * 12,800 282
.........................................................................
CDW Computer Centers * 4,100 214
.........................................................................
CompUSA * 6,500 201
.........................................................................
Eagle Hardware & Garden * 18,900 367
.........................................................................
General Nutrition * 8,000 271
.........................................................................
Gymboree * 7,400 203
.........................................................................
Insight Enterprises * 7,800 285
.........................................................................
Lands' End * 7,000 245
.........................................................................
Men's Wearhouse * 5,800 203
.........................................................................
Petco Animal Supplies * 2,000 49
.........................................................................
Quality Food Centers * 3,000 201
.........................................................................
Renters Choice * 13,700 283
.........................................................................
Ross Stores 6,500 237
.........................................................................
St. John Knits 7,100 284
.........................................................................
Stein Mart * 8,600 230
.........................................................................
Viking Office Products * 12,900 283
.........................................................................
Wet Seal (Class A) * 4,600 136
.........................................................................
Williams-Sonoma * 5,600 234
.........................................................................
4,748
...........
Entertainment and Leisure 3.5%
Applebee's 7,500 135
.........................................................................
CKE Restaurants 5,500 232
.........................................................................
Hollywood Entertainment * 10,100 108
.........................................................................
Imax * 12,800 278
.........................................................................
La Quinta Inns 8,300 160
.........................................................................
Landry's Seafood Restaurant * 7,500 181
.........................................................................
Lone Star Steakhouse & Saloon * 5,900 104
.........................................................................
North Face * 9,300 205
.........................................................................
Outback Steakhouse * 6,900 200
.........................................................................
12
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -----------------------------------------------------------------------------
Shares/Par Value
- -----------------------------------------------------------------------------
In thousands
Promus Hotel * 8,347 $ 350
.............................................................................
Signature Resorts * 11,200 246
.............................................................................
West Marine * 12,800 288
.............................................................................
2,487
...........
Media and Communications 2.8%
American Business Information (Class A) * 17,400 176
.............................................................................
American Business Information (Class B) 15,700 161
.............................................................................
American Radio Systems (Class A) * 5,200 277
.............................................................................
Chancellor Media * 3,600 269
.............................................................................
Commnet Cellular * 3,700 132
.............................................................................
CSG Systems International * 6,000 241
.............................................................................
Jacor Communications * 5,100 272
.............................................................................
Level One * 7,600 214
.............................................................................
Outdoor Systems * 2,700 104
.............................................................................
SFX Broadcasting * 2,300 185
.............................................................................
2,031
...........
Total Consumer Services 10,054
...........
CONSUMER CYCLICALS 3.4%
Automobiles and Related 2.5%
Central Parking 9,750 442
.............................................................................
Gentex * 11,100 299
.............................................................................
Littelfuse * 8,500 209
.............................................................................
Miller Industries * 21,200 228
.............................................................................
O'Reilly Automotive * 11,700 309
.............................................................................
Tower Automotive * 7,900 332
.............................................................................
1,819
...........
Building and Real Estate 0.6%
Apartment Investment & Management (Class A), REIT 4,112 151
.............................................................................
Apogee Enterprises 8,600 103
.............................................................................
Rouse 4,600 151
.............................................................................
405
...........
Miscellaneous Consumer Durables 0.3%
HA-LO Industries * 8,700 226
.............................................................................
226
...........
Total Consumer Cyclicals 2,450
...........
13
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
TECHNOLOGY 15.2%
Electronic Components 3.9%
Burr Brown * 5,300 $ 171
.........................................................................
Computer Products * 7,300 166
........................................................................
Dallas Semiconductor 5,000 204
.........................................................................
Ducommun * 8,400 294
.........................................................................
Electronics for Imaging * 5,900 98
.........................................................................
ENCAD * 10,100 280
.........................................................................
Etec Systems * 4,700 218
.........................................................................
Lattice Semiconductor * 4,500 214
.........................................................................
Microchip Technology * 5,800 174
.........................................................................
MicroTouch Systems * 11,700 186
.........................................................................
Photronics * 9,600 234
.........................................................................
Sanmina * 3,400 231
.........................................................................
SMART Modular Technologies * 9,200 210
.........................................................................
SpeedFam International * 4,200 113
.........................................................................
2,793
...........
Electronic Systems 2.4%
Black Box * 5,800 206
.........................................................................
Dionex * 4,400 219
.........................................................................
Electro Scientific Industries * 2,900 111
.........................................................................
IMNET Systems * 8,600 139
.........................................................................
Kulicke & Soffa * 5,000 93
.........................................................................
Novellus Systems * 3,200 104
.........................................................................
Periphonics * 700 6
.........................................................................
Sawtek * 7,400 195
.........................................................................
Thermo Optek * 12,000 185
.........................................................................
Tollgrade Communications * 10,000 236
.........................................................................
Uniphase * 5,200 214
.........................................................................
1,708
...........
Information Processing 1.0%
Data Processing Resources * 7,000 180
.........................................................................
First USA Paymentech * 7,700 114
.........................................................................
Micron Electronics * 20,700 188
.........................................................................
SCI Systems * 4,800 209
.........................................................................
691
...........
14
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
Office Automation 0.7%
Technitrol 8,400 $ 252
.........................................................................
Transition Systems * 13,100 291
.........................................................................
543
...........
Specialized Computer 0.6%
Sandisk * 8,800 177
.........................................................................
Symbol Technologies 6,700 253
.........................................................................
430
...........
Telecommunications Equipment 4.7%
Aspect Telecommunications * 13,000 273
.........................................................................
Avant * 5,800 97
.........................................................................
Coherent Communications Systems * 11,600 327
.........................................................................
Davox * 8,500 276
.........................................................................
Dialogic * 4,200 183
.........................................................................
Digital Microwave * 13,800 201
.........................................................................
Harmonic Lightwaves * 7,500 82
.........................................................................
Inter-Tel 5,400 106
.........................................................................
LCI International * 9,924 305
.........................................................................
LIN Television * 6,700 365
.........................................................................
MRV Communications * 8,100 193
.........................................................................
P-COM * 10,100 177
.........................................................................
PairGain Technologies * 10,100 196
.........................................................................
Premiere Technologies * 10,600 292
.........................................................................
Proxim * 10,300 117
.........................................................................
Tel-Save Holdings * 10,400 206
.........................................................................
3,396
...........
Aerospace and Defense 1.9%
AAR 9,600 372
.........................................................................
Avondale Industries * 10,000 297
.........................................................................
Orbital Sciences * 13,800 411
.........................................................................
Precision Castparts 5,400 326
.........................................................................
1,406
...........
Total Technology 10,967
...........
EDUCATION 1.3%
Apollo Group (Class A) * 6,500 308
.........................................................................
Computer Learning Centers * 5,000 307
.........................................................................
15
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
Learning Tree International * 12,400 $ 360
.........................................................................
Total Education 975
...........
CAPITAL EQUIPMENT 0.9%
Electrical Equipment 0.9%
ANADIGICS * 9,100 278
.........................................................................
Berg Electronics * 10,100 230
.........................................................................
Power-One * 7,000 97
.........................................................................
The Carbide/Graphite Group * 900 30
.........................................................................
Total Capital Equipment 635
...........
BUSINESS SERVICES AND
TRANSPORTATION 29.4%
Computer Service and Software 14.5%
Actel * 19,400 246
.........................................................................
Advent Software * 6,300 185
.........................................................................
Affiliated Computer Services (Class A) * 11,500 302
.........................................................................
Analysts International 4,900 170
.........................................................................
Arbor Software * 5,700 232
.........................................................................
Aspen Technology * 9,600 327
.........................................................................
Autodesk 5,500 203
.........................................................................
AXENT Technologies * 12,300 211
.........................................................................
Cadence Design Systems * 11,800 289
.........................................................................
CBT ADR * 4,600 378
.........................................................................
CIBER * 6,700 388
.........................................................................
Citrix Systems * 4,700 357
.........................................................................
Cognos * 3,700 85
.........................................................................
Computer Management Sciences * 14,400 274
.........................................................................
Datastream * 6,600 203
.........................................................................
DecisionOne Holdings* 666 16
.........................................................................
Documentum * 5,200 219
.........................................................................
DST Systems * 7,700 329
.........................................................................
E*TRADE * 12,000 276
.........................................................................
Electronic Arts * 8,000 303
.........................................................................
FARO Technologies * 5,000 61
.........................................................................
HBO 7,320 351
.........................................................................
Hyperion Software * 6,000 216
.........................................................................
16
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
IDX Systems * 10,200 $ 378
.........................................................................
Integrated Systems Consulting Group * 16,300 176
.........................................................................
Intuit * 2,200 91
.........................................................................
JDA Software Group * 6,700 232
.........................................................................
Keane * 7,200 292
.........................................................................
Legato Systems * 4,400 193
.........................................................................
National Data 3,400 123
.........................................................................
National Instruments * 10,200 305
.........................................................................
Network Associates * 6,500 343
.........................................................................
QuickResponse Services * 8,000 294
.........................................................................
Remedy * 6,000 126
.........................................................................
SPSS * 14,300 272
.........................................................................
Structural Dynamics Research * 7,500 170
.........................................................................
SunGard Data Systems * 2,600 81
.........................................................................
Sykes Enterprises * 9,300 183
.........................................................................
Synopsys * 7,500 268
.........................................................................
Systems & Computer Technology * 6,300 314
.........................................................................
Transaction Systems Architects * 7,400 281
.........................................................................
Vanstar * 9,300 105
.........................................................................
VERITAS Software * 4,300 219
.........................................................................
Visio * 5,000 193
.........................................................................
Zebra Technologies (Class A) * 6,400 192
.........................................................................
10,452
...........
Distribution Services 2.3%
AmeriSource Health * 5,100 297
.........................................................................
Barnett * 14,100 314
.........................................................................
Central Garden & Pet * 7,100 187
.........................................................................
Daisytek International * 1,100 38
.........................................................................
Danka Business Systems ADR 5,800 93
.........................................................................
Richfood Holdings 9,800 277
.........................................................................
Tech Data * 5,900 230
.........................................................................
Watsco 9,500 235
.........................................................................
1,671
...........
Environmental 0.4%
Allied Waste Industries * 13,400 313
.........................................................................
313
...........
17
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
Transportation Services 2.5%
BE Aerospace * 6,600 $ 177
........................................................................
Coach USA * 10,200 342
........................................................................
Eagle USA Air Freight * 5,900 169
........................................................................
Expeditors International of Washington 6,600 257
........................................................................
Heartland Express * 8,500 232
........................................................................
Seacor Smit * 4,700 283
........................................................................
Swift Transportation * 10,100 329
........................................................................
1,789
..........
Miscellaneous Business Services 9.0%
ABR Information Service * 1,100 27
........................................................................
AccuStaff * 8,700 200
........................................................................
AMRESCO * 8,200 245
........................................................................
BISYS Group * 8,800 294
........................................................................
Caribiner International * 7,300 325
........................................................................
Concord EFS * 8,900 222
........................................................................
Consolidated Graphics * 4,100 191
........................................................................
COREStaff * 11,400 303
........................................................................
CORT Business * 8,100 322
........................................................................
Eltron International * 8,000 245
........................................................................
Fair, Issac and Company 4,800 160
........................................................................
Fastenal 6,000 231
........................................................................
G & K Services 5,600 235
........................................................................
GTECH * 8,300 265
........................................................................
Kent Electronics * 7,600 191
........................................................................
Merrill 3,900 90
........................................................................
META Group * 12,000 268
........................................................................
Norrell 7,600 151
........................................................................
Paging Network * 17,300 186
........................................................................
PMT Services * 15,100 211
........................................................................
Registry * 6,220 288
........................................................................
Rent Way * 14,700 273
........................................................................
Romac International * 10,200 249
........................................................................
Sealed Air * 4,500 278
........................................................................
Service Experts * 8,000 229
........................................................................
Superior Services * 10,700 312
........................................................................
18
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- -------------------------------------------------------------------------
Shares/Par Value
- -------------------------------------------------------------------------
In thousands
Sylvan Learning Systems * 5,100 $ 200
........................................................................
Tetra Tech * 14,500 294
........................................................................
6,485
..........
Airlines 0.6%
Comair Holdings 16,950 411
........................................................................
411
..........
Railroads 0.1%
Wisconsin Central Transport * 1,900 44
........................................................................
44
..........
Total Business Services and Transportation 21,165
..........
ENERGY 3.6%
Energy Services 2.0%
BJ Services * 3,100 223
........................................................................
CalEnergy * 10,300 296
........................................................................
Falcon Drilling * 6,200 218
........................................................................
Newpark Resources * 15,600 273
........................................................................
Offshore Logistics * 10,400 224
........................................................................
Smith International * 3,000 184
........................................................................
1,418
..........
Exploration and Production 1.6%
Devon Energy 6,000 231
........................................................................
EVI * 4,100 212
........................................................................
Noble Affiliates 6,100 215
........................................................................
Swift Energy * 11,350 239
........................................................................
Vintage Petroleum 13,800 262
........................................................................
1,159
..........
Total Energy 2,577
..........
PROCESS INDUSTRIES 1.9%
Specialty Chemicals 0.5%
Sybron International * 7,700 361
........................................................................
361
..........
Building and Construction 1.4%
American Homestar * 17,700 292
........................................................................
Blount International (Class A) 8,400 224
........................................................................
Fairfield Communities * 4,800 212
........................................................................
19
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- ------------------------------------------------------------------------
Shares/Par Value
- ------------------------------------------------------------------------
In thousands
NCI Building Systems * 7,900 $ 280
........................................................................
1,008
..........
Total Process Industries 1,369
..........
BASIC MATERIALS 0.8%
Metals 0.3%
RMI Titanium * 12,600 252
........................................................................
252
..........
Miscellaneous Materials 0.5%
Box Hill Systems * 12,500 130
........................................................................
Valmont Industries 10,800 215
........................................................................
345
..........
Total Basic Materials 597
..........
Total Common Stocks (Cost $70,567) 70,646
..........
SHORT-TERM INVESTMENTS 1.5%
Money Market Funds 1.5%
Reserve Investment Fund, 5.84% # 1,045,772 1,046
........................................................................
Total Short-Term Investments (Cost $1,046) 1,046
..........
20
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- --------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
99.5% of Net Assets (Cost $71,613) $ 71,692
Other Assets Less Liabilities 379
............
NET ASSETS $ 72,071
------------
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ 195
Net unrealized gain (loss) 79
Paid-in-capital applicable to 6,733,415 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares authorized 71,797
............
NET ASSETS $ 72,071
------------
NET ASSET VALUE PER SHARE $ 10.70
------------
</TABLE>
* Non-income producing
# Seven-day yield
ADR American Depository Receipt
REIT Real Estate Investment Trust
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
- -----------------------
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
6/30/97
Through
12/31/97
Investment Income
<S> <C>
Income
Interest $ 98
Dividend 54
............
Total income 152
............
Expenses
Shareholder servicing 137
Investment management 81
Custody and accounting 65
Registration 24
Legal and audit 6
Prospectus and shareholder reports 5
Directors 3
Miscellaneous 5
............
Total expenses 326
............
Net investment income (174)
............
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on securities 431
Change in net unrealized gain or loss on securities 79
............
Net realized and unrealized gain (loss) 510
............
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 336
------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
- ----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
6/30/97
Through
12/31/97
Increase (Decrease) in Net Assets
<S> <C>
Operations
Net investment income $ (174)
Net realized gain (loss) 431
Change in net unrealized gain or loss 79
............
Increase (decrease) in net assets from operations 336
............
Distributions to shareholders
Net realized gain (67)
............
Capital share transactions*
Shares sold 81,333
Distributions reinvested 65
Shares redeemed (9,747)
Redemption fees received 51
............
Increase (decrease) in net assets from capital
share transactions 71,702
............
Net Assets
Increase (decrease) during period 71,971
Beginning of period 100
............
End of period $ 72,071
------------
*Share information
Shares sold 7,622
Distributions reinvested 6
Shares redeemed (905)
............
Increase (decrease) in shares outstanding 6,723
</TABLE>
The accompanying notes are an integral part of these financial statements.
23
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
December 31, 1997
- -----------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Diversified Small-Cap Growth Fund, Inc. (the fund) is registered
under the Investment Company Act of 1940 as a diversified, open-end management
investment company and commenced operations on June 30, 1997.
The accompanying financial statements are prepared in accordance with generally
accepted accounting principles for the investment company industry; these
principles may require the use of estimates by fund management.
Valuation Equity securities listed or regularly traded on a securities exchange
are valued at the last quoted sales price on the day the valuations are made. A
security which is listed or traded on more than one exchange is valued at the
quotation on the exchange determined to be the primary market for such security.
Listed securities not traded on a particular day and securities regularly traded
in the over-the-counter market are valued at the mean of the latest bid and
asked prices. Other equity securities are valued at a price within the limits of
the latest bid and asked prices deemed by the Board of Directors, or by persons
delegated by the Board, best to reflect fair value.
Investments in mutual funds are valued at the closing net asset value per share
of the mutual fund on the day of valuation.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
Premiums and Discounts Premiums and discounts on debt securities are amortized
for both financial reporting and tax purposes.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles.
24
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $76,550,000 and $6,414,000, respectively, for the year ended December
31, 1997.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
qualify as a regulated investment company and distribute all of its taxable
income.
In order for the fund's capital accounts and distributions to shareholders to
reflect the tax character of certain transactions, the following
reclassifications were made during the year ended December 31, 1997. The results
of operations and net assets were not affected by the increases/(decreases) to
these accounts.
<TABLE>
- --------------------------------------------------------------------------------
<S> <C>
Undistributed net investment income $ 174,000
Undistributed net realized gain (169,000)
Paid-in-capital (5,000)
</TABLE>
At December 31, 1997, the aggregate cost of investments for federal income tax
and financial reporting purposes was $71,613,000, and net unrealized gain
aggregated $79,000, of which $5,999,000 related to appreciated investments and
$5,920,000 to depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management fee,
of which $30,000 was payable at December 31, 1997. The fee is computed daily and
paid monthly, and consists of an individual fund fee equal to 0.35% of average
daily net assets and a group fee. The group fee is based on the combined assets
of certain mutual funds sponsored by the manager or Rowe Price-Fleming
International, Inc. (the group). The group fee rate ranges from 0.48% for the
first $1 billion of assets to 0.30% for assets in excess of $80 billion. The
25
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
effective annual group fee rate was 0.32% at December 31, 1997, and 0.33% for
the year then ended. The fund pays a pro-rata share of the group fee based on
the ratio of its net assets to those of the group.
Under the terms of the investment management agreement, the manager is required
to bear any expenses through December 31, 1998, which would cause the fund's
ratio of expenses to average net assets to exceed 1.25%. Thereafter, through
December 31, 2000, the fund is required to reimburse the manager for these
expenses, provided that average net assets have grown or expenses have declined
sufficiently to allow reimbursement without causing the fund's ratio of expenses
to average net assets to exceed 1.25%. Pursuant to this agreement, $94,000 of
management fees were not accrued by the fund for the year ended December 31,
1997.
In addition, the fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which the fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of the fund. T. Rowe Price Services, Inc., is the fund's
transfer and dividend disbursing agent and provides shareholder and
administrative services to the fund. T. Rowe Price Retirement Plan Services,
Inc., provides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $135,000 for the year ended
December 31, 1997, of which $30,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the year ended December 31, 1997, totaled $60,000
and are reflected as interest income in the accompanying Statement of
Operations.
26
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
- ---------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
T. Rowe Price Diversified Small-Cap Growth Fund, Inc.
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
T. Rowe Price Diversified Small-Cap Growth Fund, Inc. (the "Fund") at December
31, 1997, and the results of its operations, the changes in its net assets and
the financial highlights for the period June 30, 1997 (commencement of
operations) through December 31, 1997, in conformity with generally accepted
accounting principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the responsibility of the
Fund's management; our responsibility is to express an opinion on these
financial statements based on our audit. We conducted our audit of these
financial statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audit, which included
confirmation of securities at December 31, 1997 by correspondence with
custodians and, where appropriate, the application of alternative auditing
procedures for unsettled security transactions, provides a reasonable basis for
the opinion expressed above.
PRICE WATERHOUSE LLP
Baltimore, Maryland
January 21, 1998
27
<PAGE>
T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND
- --------------------------------------------------------------------------------
- -----------------------------------------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 12/31/97
- --------------------------------------------------------------------------------
We are providing this information as required by the Internal Revenue Code. The
amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund's distributions to shareholders included:
. $67,000 from short-term capital gains.
For corporate shareholders, 39% of the fund's distributed short-term capital
gains qualified for the dividends-received deduction.
- --------------------------------------------------------------------------------
28
<PAGE>
T. ROWE PRICE SHAREHOLDER SERVICES
- --------------------------------------------------------------------------------
INVESTMENT SERVICES AND INFORMATION
KNOWLEDGEABLE SERVICE REPRESENTATIVES
By Phone 1-800-225-5132 Available Monday through Friday from 8 a.m. to 10 p.m.
ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your distributions.
Automated 24-Hour Services Including Tele*Access(R) and T. Rowe Price OnLine.
DISCOUNT BROKERAGE*
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over regular commission rates.
INVESTMENT INFORMATION
Combined Statement Overview of your T. Rowe Price accounts.
Shareholder Reports Fund managers' reviews of their strategies and results.
T. Rowe Price Report Quarterly investment newsletter discussing markets and
financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
*A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
29
<PAGE>
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(R):
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus of the
T. Rowe Price Diversified Small-Cap
Growth Fund.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor.
