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August 31, 2000
FUND PROFILE
T. ROWE PRICE
DevelopingTechnologies Fund
An aggressive stock fund seeking long-term capital growth through investments
in companies expected to benefit from newer technologies.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.
TROWEPRICERAMLOGO
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FUND PROFILE
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What is the fund's objective?
The fund seeks to provide long-term capital growth.
What is the fund's principal investment strategy?
We will invest at least 65% of total assets in the common stocks of companies
expected to generate a majority of their revenues from the advancement and
use of developing technologies. Our primary emphasis will be on emerging
companies that are developing new technologies and services with attractive
long-term growth prospects, in our view. Some of the industries likely to be
included in the portfolio are:
. communications - telephony, data, and wireless;
. Internet infrastructure - hardware, software, and communications equipment;
. e-commerce (companies doing business through the Internet) and data
processing services;
. semiconductors - components and equipment; and
. computers- hardware and software.
We will invest across a broad range of small, medium, and large companies,
although our initial emphasis will primarily be on emerging technology stocks
with higher growth potential than may be possible with established technology
companies. However, the portfolio may also contain stocks of blue chip
companies with more proven records of developing and marketing breakthroughs
in technology. The fund will look for opportunities to invest in suitable
developing technology companies through initial public offerings (IPOs).
Stock selection emphasizes a growth approach based on comprehensive research
that evaluates a company's prospects for above-average, sustainable earnings
growth. The portfolio may include companies that are not directly involved in
technology research and development, but that should benefit from advances in
the field.
While most assets will be invested in U.S. common stocks, other securities
may also be purchased, including up to 30% in foreign stocks (established and
developing countries), futures, and options, in keeping with fund objectives.
The fund may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into more promising opportunities.
Further information about the fund's investments, including a review of
market conditions and fund strategies and their impact on performance, is
available in the annual and semiannual shareholder reports. To obtain free
copies of either of these documents, call 1-800-638-5660.
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FUND PROFILE
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What are the main risks of investing in the fund?
An investment in the fund entails substantial risk. Technology stocks are
particularly volatile and subject to greater price swings, up and down, than
the broad market. Therefore, the prospects for superior gains are balanced by
the possibility of above-average losses. It is possible that companies whose
products and services first appear promising may not succeed over the long
term, they may succumb to intense competition, or could quickly become
obsolete in a rapidly developing marketplace. Earnings projections for
developing companies that fall short, or fail to materialize, can result in
sharp declines in their stock prices. This is true even in a generally rising
stock market environment. A portfolio focused primarily on these types of
stocks is likely to be much more volatile than one with broader
diversification that includes investments in diverse economic sectors. These
risks are increased by significant exposure to smaller, unseasoned companies
(those with less than a three-year operating history), and newly public
companies. These companies may not have established products, experienced
management, or an earnings history and their stocks may lack liquidity and be
very volatile. During the period that the fund has a small asset base, any
exposure to successful IPOs could significantly increase its total return. As
the fund's assets grow, any impact of IPO investments on its total return may
decline.
As with all equity funds, this fund's share price can fall because of
weakness in the broad market, a particular industry, or specific holdings.
The market as a whole can decline for many reasons, including adverse
political or economic developments here or abroad, changes in investor
psychology, or heavy institutional selling. The prospects for an industry or
company may deteriorate because of a variety of factors, including
disappointing earnings or changes in the competitive environment. In
addition, our assessment of companies held in the fund may prove incorrect,
resulting in losses or poor performance even in a rising market. Finally, the
fund's investment approach could fall out of favor with the investing public,
resulting in lagging performance versus other types of stock funds.
Foreign stock holdings are subject to the risk that some holdings may lose
value because of the declining foreign currencies, political instability or
economic decline, illiquid markets, and governmental interference associated
with various foreign markets, especially developing ones. Investments in
futures and options, if any, are subject to additional volatility and
potential losses.
As with any mutual fund, there can be no guarantee the fund will achieve its
objective.
. The fund's share price may decline, so when you sell your shares, you may
lose money.
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FUND PROFILE
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How can I tell if the fund is appropriate for me?
Consider your investment goals, your time horizon for achieving them, and
your tolerance for risk. If you seek a very aggressive approach to capital
growth through investments in companies involved with newer, developing
technologies, and can accept the potential for extreme volatility, the fund
could be an appropriate part of your overall investment strategy. This fund
should not represent your complete investment program or be used for
short-term trading purposes.
The fund can be used in both regular and tax-deferred accounts, such as IRAs.
. Equity investors should have a long-term investment horizon and be willing
to wait out bear markets.
How has the fund performed in the past?
Because the fund commenced operations in 2000, there is no historical
performance information shown here. Performance history will be available
after the fund has been in operation for one calendar year.
What fees or expenses will I pay?
The fund is 100% no load. The fund charges a 1.00% redemption fee, payable to
the fund, on shares held less than one year. There are no other fees or
charges to buy or sell fund shares, reinvest dividends, or exchange into
other T. Rowe Price funds. There are no 12b-1 fees. Redemption proceeds of
less than $5,000 sent by wire are subject to a $5 fee paid to the fund.
<TABLE>
Table 1 Fees and Expenses of the Fund
<CAPTION>
Shareholder fees (fees paid directly from your investment)
Redemption fee (for shares held less than one year) 1.00%
Annual fund operating expenses
(expenses that are deducted from fund assets)
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<S> <C> <S>
Management fee 0.92%/ /
Other expenses 0.61%/b/
Total annual fund operating expenses 1.53%/ /
Fee waiver/reimbursement 0.03%/a/
Net expenses 1.50%/a/
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</TABLE>
/a/
To limit the fund's expenses during its initial period of operations, T. Rowe
Price has contractually obligated itself to waive fees and bear any expenses
through December 31, 2002, that would cause the ratio of expenses to average
net assets to exceed 1.50%. Fees waived or expenses paid or assumed under
this agreement are subject to reimbursement to T. Rowe Price by the fund
whenever the fund's expense ratio is below 1.50%; however, no reimbursement
will be made after December 31, 2004, or if it would result in the expense
ratio exceeding 1.50%.
/b/ Other expenses are estimated for the current fiscal year.
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FUND PROFILE
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Example. The following table gives you a rough idea of how expense ratios
may translate into dollars and helps you to compare the cost of investing in
this fund with that of other mutual funds. Although your actual costs may be
higher or lower, the table shows how much you would pay if operating expenses
remain the same, the expense limitation currently in place is not renewed,
you invest $10,000, earn a 5% annual return, and hold the investment for the
following periods and then redeem:
<TABLE>
<CAPTION>
1 year 3 years
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<S> <C>
$153 $477
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</TABLE>
Who manages the fund?
The fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
Rowe Price and its affiliates manage investments for individual and
institutional accounts. The company offers a comprehensive array of stock,
bond, and money market funds directly to the investing public.
Michael F. Sola manages the fund day-to-day and has been chairman of its
Investment Advisory Committee since 2000. He joined T. Rowe Price in 1994 and
has been managing investments since 1997.
Note: The following questions and answers about buying and selling shares and
services do not apply to employer-sponsored retirement plans. If you are a
participant in one of these plans, please call your plan's toll-free number for
additional information.
How can I purchase shares?
Fill out the New Account Form and return it with your check in the postpaid
envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
or transfers to minors). The minimum subsequent investment is $100 ($50 for
IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
open an account by bank wire, by exchanging from another T. Rowe Price fund,
or by transferring assets from another financial institution.
How can I sell shares?
You may redeem or sell any portion of your account on any business day.
Simply write to us or call. You can also access your account at any time via
Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
entire family of domestic and international funds. Restrictions may apply in
special circumstances, and some redemption requests need a signature
guarantee. A $5 fee is charged for wire redemptions under $5,000.
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When will I receive income and capital gain distributions?
The fund distributes income and net capital gains, if any, at year-end. For
regular accounts, income and short-term gains are taxable at ordinary income
rates, and long-term gains are taxable at the capital gains rate.
Distributions are reinvested automatically in additional shares unless you
choose another option, such as receiving a check. Distributions paid to IRAs
and employer-sponsored retirement plans are automatically reinvested.
What services are available?
A wide range, including but not limited to:
. retirement plans for individuals and large and small businesses;
. automated information and transaction services by telephone or computer;
. electronic transfers between fund and bank accounts;
. automatic investing and automatic exchange;
. brokerage services; and
. asset manager accounts.
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FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
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T. Rowe Price Investment Services, Inc., Distributor
