T. ROWE PRICE
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Real Estate Fund, Inc.
Supplement to prospectus dated May 1, 1999
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Effective January 1, 2000, the footnote to Table 2 on page 4 of the prospectus
will be revised with the following to reflect the extension of the fund's
expense ratio limitation:
/a/
To limit the fund's expenses during its initial period of operations, T. Rowe
Price contractually obligated itself to waive its fees and bear any expenses
through December 31, 1999, which would cause the fund's ratio of expenses to
average net assets to exceed 1.00%. Effective January 1, 2000, T. Rowe Price
agreed to extend this expense limitation for a period of two years through
December 31, 2001. Fees waived or expenses paid or assumed under these
agreements are subject to reimbursement to T. Rowe Price by the fund whenever
the fund's expense ratio is below 1.00%; however, no reimbursement will be
made after December 31, 2001 (for the first agreement), or December 31, 2003
(for the second agreement), or if it would result in the expense ratio
exceeding 1.00%. Any amounts reimbursed will have the effect of increasing
fees otherwise paid by the fund.
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The date of this supplement is January 1, 2000.
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F12-041 01/01/00
