<PAGE>
- --------------------------------------------------------------------------------
Fellow Shareholders
- --------------------------------------------------------------------------------
International markets were generally weak in the quarter ended April 30,
although the fall of the dollar versus major currencies sharply increased
returns for U.S. investors. Some European markets were strong, particularly
France and the U.K. Pacific markets also rallied after weakness in January,
with Hong Kong, Australia, and New Zealand spearheading this group. Japan
fell sharply in local terms because of a poor economic outlook, but the
strength of the yen generated positive returns for U.S. investors.
The last few months have been difficult for the small foreign companies
your fund invests in, affecting fund performance. Your fund registered a
small positive return for the quarter ended April 30, but trailed the
benchmark index for both periods shown below, because it had a significant
position in emerging market small companies not represented in the unmanaged
benchmark.
- --------------------------------------------------------------------------------
Performance Comparison
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Periods Ended 4/30/95
3 Months 6 Months
---------------------
<S> <C> <C>
International Discovery Fund 0.6% -15.5%
FT Euro-Pacific Small
Cap Index 5.1 -3.2
</TABLE>
- --------------------------------------------------------------------------------
MARKET REVIEW
SOUTHEAST ASIA
HONG KONG led the region with a strong three-month gain measured in U.S.
dollars. At first glance, Hong Kong appears to represent good value at 11
times this year's earnings compared with a historical price/earnings ratio of
12. However, earnings growth is decelerating quickly, particularly in the
real estate sector. It has been difficult for Hong Kong stocks to rise during
past slowdowns, so we prefer China where pessimism seems overdone. We sold
stocks of companies whose earnings were disappointing; CHAMPION'S pager sales
are plummeting, as are S. MEGGA'S sales of cordless phones and fax machines.
In their place we added semiconductor stocks KINGBOARD CHEMICAL and QPL
INTERNATIONAL.
MALAYSIAN stocks rose in the quarter. The economy is entering its eighth
year of more than 8% real growth, and inflation and trade deficits are still
under control. Earnings growth is slowing, however, and much Malaysian
investment will be directed at infrastructure rather than export capacity.
Adequate infrastructure is crucial to long-term growth, but the near-term
outlook is somewhat cloudy. We sold GRANITE and GOLDEN PLUS because of delays in
their China projects, and added CHEMICAL COMPANY OF MALAYSIA and life insurer
MALAYSIAN ASSURANCE ALLIANCE because of management's commitment to exploiting a
fast-growing market.
INDONESIA and the PHILIPPINES suffered from the Mexican crisis as
investors tried to anticipate the next currency collapse. The Philippine peso
and the Indonesian rupiah declined against the dollar because speculators
focused on their emerging market status. However, both countries' debt ratios
are satisfactory, and the speculators have turned
- --------------------------------------------------------------------------------
Geographical Diversification
- --------------------------------------------------------------------------------
[PIE CHART APPEARS HERE]
Pie Chart International Discovery Fund report (Apr. 30, 1995) Entitled
"Geographical Diversification": Shows Europe 39%; Japan 17%; Far East 26%; Latin
America 11%; and All Other 7%. Based on net assets as of April 30, 1995.
- -------------------------------------------------------------------------------
<PAGE>
elsewhere. We took advantage of market weakness here by adding to PHILIPPINE
LONG DISTANCE TELEPHONE.
In AUSTRALIA, current account and budget deficits both pose a problem.
We cut holdings in cyclical stocks, including WEST AUSTRALIAN NEWSPAPERS, and
bought defensive stocks such as CROWN LIMITED. Despite a slight deterioration
in NEW ZEALAND'S current account and some signs of economic slowing, the
overall outlook is more attractive. Substantial government surpluses over the
next few years will be used to cut debt first and then taxes. We trimmed our
position in WHITCOULLS GROUP (book publishing and retailing) and SKELLERUP
GROUP (a conglomerate).
SINGAPORE remains in superb shape. GDP growth exceeded 10% in 1994 and
the current account shows a substantial surplus with inflation a modest 2.5%.
Earnings were generally favorable, notably in the banking and property
sectors. We reduced our exposure to the hotel industry with sales of REPUBLIC
HOTELS & RESORTS and MARCO POLO DEVELOPMENT since earnings growth is likely
to be lower than forecast.
JAPAN
The quarter was particularly disappointing for small Japanese companies.
After four years of marking time, the economy finally began to recover,
interest rates stabilized, and yet the
- --------------------------------------------------------------------------------
Market Performance: Small-Cap Indices
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
3 Months Ended 4/30/95
----------------------------------
Local Currency
Local vs. U.S. In U.S.
Currency Dollars Dollars
----------------------------------
<S> <C> <C> <C>
Australia 9.5% -3.9% 5.3%
France 8.1 7.1 15.8
Germany -1.7 9.6 16.1
Hong Kong 6.9 0.0 6.9
Italy -5.3 -4.7 -9.3
Japan -13.3 17.8 2.1
Mexico -6.0 7.2 0.0
Netherlands -1.9 9.7 8.5
Norway -5.4 6.8 -0.6
Singapore -3.9 4.3 0.8
Sweden -2.4 2.7 0.5
Switzerland -6.0 11.7 7.2
United Kingdom 8.4 1.4 9.9
</TABLE>
- --------------------------------------------------------------------------------
Source: NWSL Quantitative Products Group
markets fell sharply. It is easy to blame this on the Kobe earthquake or the
impact of the yen's strength on corporate profits. However, both are
subordinate to the poor supply/demand picture. Corporations have been net
sellers of equities for a record 54 months, and the banks have also been
eager to book stock market profits to prop up weak balance sheets. At the
same time, both domestic and foreign demand for Japanese stocks declined as
buyers turned to other markets.
The major focus is now on valuation levels. On the positive side, the
price/cash flow multiple has fallen to 8.1, the price/book value ratio to 2.1
(both lower than in the U.S. market), and dividend yields are attractive. On
the other hand, returns on equity are low and price/earnings multiples high.
The overall picture remains cloudy.
The dual impact of the earthquake and the strong yen could slow economic
growth but is not likely to abort it. Before the yen's most recent advance,
automobile sales were strong. Capital investment looks promising despite the
need to move some production facilities offshore. Machine tool orders jumped
48% in the year ended March 31. Industrial production was also up strongly
and monetary growth has recently picked up. Inflation is low, dropping the
long bond yield down to 3.2%. These conditions are usually ideal for small
company stocks, so we will carefully monitor developments in this area.
EUROPE
Small-company stocks fared poorly in Europe as currency turbulence, interest
rate uncertainty, and volatile markets spurred investors toward blue chip
stocks. Even as small companies report strong earnings, investors remain
nervous. However, we are confident that a widespread earnings recovery will
lead to renewed strong performance of smaller company shares in the second
half of 1995.
In the U.K., earnings have been generally satisfactory. Consumer demand
is restrained, which should keep a lid on inflation. We bought shares of
TAYLOR NELSON, a leader in market research with an enviable balance sheet and
earnings record, and sold our
2
<PAGE>
position in the bus company STAGECOACH, whose growth is slowing.
January was excellent for SWEDISH small companies, rewarding the fund to
some extent because of our position there. In NORWAY, the dollar's weakness
against the kroner was a negative factor since most companies rely on exports
to the U.S. However, we remain optimistic about the health of the economy,
now enjoying its fifth year of steady growth and low inflation. We bought a
position in TOMRA SYSTEMS, which makes recycling equipment, and in SENSONOR, the
world leader in airbag sensors.
GERMANY has been hurt somewhat by its strong currency. Although the
powerful mark will help offset the inflationary consequences of a high wage
settlement, exporters and suppliers will have their margins squeezed in
export markets. Your fund benefited from a strong performance in dollar terms
from its 4.2% weighting here.
ITALY'S currency has been weak and there is a lack of confidence in the
government owing to the high level of public debt. Our Italian holdings are
almost exclusively export-oriented, so currency weakness should boost
earnings. With the presidential election in FRANCE now over, stocks have
responded positively, rallying sharply after the end of the quarter.
LATIN AMERICA
The collapse of the MEXICAN peso and stock market triggered a sell-off
throughout the region. However, support from the U.S. government and other
measures arrested the decline. Mexico has set ambitious goals for cutting
government spending, raising taxes, and shoring up the banking system. In a
still volatile environment, we feel it is too early to add to holdings that
would be vulnerable to a recession and are focusing instead on stocks we
consider more resilient, such as EMPAQUES PONDEROSA, which exports packaging
materials to the U.S., GRUPO FERNANDEZ EDITORES, an educational publisher,
and beverage company JUGOS DEL VALLE.
The problems in Mexico threatened to sweep away four years of hard work
in ARGENTINA. However, Finance Minister Cavallo's willingness to link the
economy to the dollar rather than devalue the currency, along with his
successful negotiation of an international aid package, steadied confidence and
halted the slide in reserves. As in Mexico, the cost of higher interest rates
and taxes to maintain this confidence will hurt the economy this year. While we
are cautious in our outlook for small-company stocks, we added to our position
in the electric utility CENTRAL PUERTO, whose stock had fallen sharply and
appeared well valued.
We are more optimistic about BRAZIL, even though stocks were hurt in the
quarter by the trade deficit, initial lack of progress on the government's
reform package, and fears of rising inflation. While progress will be slow,
we believe the gloom is overdone. The economy is booming and the new
government's commitment to vital reforms is strong. Brazil is heavily
weighted in your portfolio, with an emphasis on well-managed, fast-growing
smaller companies. We initiated a position in the department store retailer
LOJAS RENNER.
INVESTMENT POLICY AND OUTLOOK
Despite the year's disappointing start, we maintain a positive outlook on
international markets for the rest of 1995. Economic activity is rising in
most regions, underpinning strong earnings growth. Stock valuations appear
generally more attractive, particularly in several less developed markets.
The mixture of currency volatility, rising interest rates, and worry
about emerging markets created a hostile environment for small-company
investors during the past six months. However, renewed stability should
enable smaller companies to report stronger earnings in the months ahead. We
intend to pursue an investment policy of deemphasizing Japan, and focusing
instead on Continental Europe, Southeast Asia, and Latin America, which
currently enjoy faster growth and offer better stock valuations.
Respectfully submitted,
/s/ Martin G. Wade
Martin G. Wade
President
May 19, 1995
3
<PAGE>
- --------------------------------------------------------------------------------
Average Annual Compound Total Returns
- --------------------------------------------------------------------------------
Periods Ended April 30, 1995
<TABLE>
<CAPTION>
Since Inception
1 Year 5 Years 12/30/88
- ---------- ------------- ---------------
<S> <C> <C>
-13.6% 3.5% 7.8%
</TABLE>
Income return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
Note: for the calendar quarter ended 3/31/95, the fund's returns for the
above periods were -14.4%, 2.5%, and 7.6%, respectively.
- --------------------------------------------------------------------------------
Industry Diversification
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Consumer Goods 31.6%
- --------------------------------------------------------------------------------
Capital Goods 22.4
- --------------------------------------------------------------------------------
Basic Industry 20.0
- --------------------------------------------------------------------------------
Financial/Insurance 14.3
- --------------------------------------------------------------------------------
Transport/Storage 4.6
- --------------------------------------------------------------------------------
Energy 1.8
- --------------------------------------------------------------------------------
Utilities 0.8
- --------------------------------------------------------------------------------
Reserves 4.5
- --------------------------------------------------------------------------------
Total Net Assets 100.0%
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Security Classification
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent Market
of Net Cost Value
Assets (000) (000)
-------- ------- -------
<S> <C> <C> <C>
Common Stocks, Rights & Warrants 86.2% $349,785 $324,723
- --------------------------------------------------------------------------------
Preferred Stocks 7.7 29,741 29,102
- --------------------------------------------------------------------------------
Bonds 1.6 5,788 6,043
- --------------------------------------------------------------------------------
Short-Term Investments 4.1 15,366 15,366
------- ------- -------
- -------------------------------------------------------------------------------
Total Investments 99.6 400,680 375,234
- -------------------------------------------------------------------------------
Other Assets Less Liabilities 0.4 1,459 1,526
------- ------- -------
- -------------------------------------------------------------------------------
Total Net Assets 100.0% $402,139 $376,760
</TABLE>
- -------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Twenty-Five Largest Holdings
- --------------------------------------------------------------------------------
April 30, 1995
<TABLE>
<CAPTION>
Percent of
Net Assets
----------
<S> <C>
Ashtead Group, United Kingdom 0.6%
- --------------------------------------------------------------------------------
Yue Yuen Industrial, Hong Kong 0.6
- --------------------------------------------------------------------------------
Samsung Construction, South Korea 0.6
- --------------------------------------------------------------------------------
Britton Group, United Kingdom 0.6
- --------------------------------------------------------------------------------
Sunway Building Technology, Malaysia 0.5
- --------------------------------------------------------------------------------
Matthew Clark, United Kingdom 0.5
- --------------------------------------------------------------------------------
Fila Holdings ADR (USD), Italy 0.5
- --------------------------------------------------------------------------------
MTD Capital, Malaysia 0.5
- --------------------------------------------------------------------------------
Precious Shipping, Thailand 0.5
- --------------------------------------------------------------------------------
Apollo Electronics, Japan 0.5
- --------------------------------------------------------------------------------
Plettac, Germany 0.4
- --------------------------------------------------------------------------------
Tecnost, Italy 0.4
- --------------------------------------------------------------------------------
Industrial Finance of Thailand 0.4
- --------------------------------------------------------------------------------
Mayflower, United Kingdom 0.4
- --------------------------------------------------------------------------------
Republic Hotels & Resorts, Singapore 0.4
- --------------------------------------------------------------------------------
Pacific Basin Bulk Shipping (USD), Hong Kong 0.4
- --------------------------------------------------------------------------------
HTV Group, United Kingdom 0.4
- --------------------------------------------------------------------------------
Multibras Eletrodomesticos, Brazil 0.4
- --------------------------------------------------------------------------------
Bossard Holding, Switzerland 0.4
- --------------------------------------------------------------------------------
Keyence, Japan 0.4
- --------------------------------------------------------------------------------
Malaysian Assurance Alliance, Malaysia 0.4
- --------------------------------------------------------------------------------
Duratex, Brazil 0.4
- --------------------------------------------------------------------------------
Topre, Japan 0.4
- --------------------------------------------------------------------------------
Sintokogio, Japan 0.4
- --------------------------------------------------------------------------------
Cia Tecidos Norte de Minas, Brazil 0.4
- --------------------------------------------------------------------------------
Total 11.4%
</TABLE>
- --------------------------------------------------------------------------------
4
<PAGE>
- --------------------------------------------------------------------------------
Statement of Net Assets
T. Rowe Price International Discovery Fund / April 30, 1995 (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
ARGENTINA -- 1.1%
- --------------------------------------------------------------------------------
Value
--------
COMMON STOCKS
298,000 shs. *Cadipsa 'B'.................................... $ 300
35,500 Capex 'A' GDR (USD)............................ 533
5,000 Central Puerto 'B'............................. 19
30,000 Central Puerto 'B' ADS (USD)................... 585
31,000 Enron Global Power & Pipeline (USD)............ 748
90,000 Fiplasto 'B'................................... 252
594,000 *Indupa......................................... 264
62,358 Juan Minetti................................... 200
35,000 Mirgor 'C' ADS (USD)........................... 72
351,294 Polledo 'B'.................................... 334
35,000 Quilmes Industrial (USD)....................... 665
TOTAL ARGENTINA 3,972
- --------------------------------------------------------------------------------
AUSTRALIA -- 2.9%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
1,363,673 AAPC Limited................................... 724
1,054,000 AWA............................................ 514
206,200 Ampolex........................................ 595
229,928 Australia Gas & Light.......................... 753
232,634 BRL Hardy...................................... 227
154,421 BRL Hardy, new................................. 38
821,000 Burswood Property Trust........................ 890
488,601 Country Road................................... 444
543,000 Crown Limited.................................. 584
321,750 E.R.G. Limited................................. 283
460,100 Elders Australia............................... 549
69,233 Eltin.......................................... 143
218,000 Evans Deakin Industries........................ 380
399,000 Finemore Holdings.............................. 595
67,673 Foodland Associated............................ 213
298,000 Healthscope.................................... 269
428,028 Henry Walker Group............................. 383
318,000 JNA Telecommunications......................... 278
308,000 Just Jeans Holdings............................ 459
316,659 Leighton Holdings.............................. 553
130,000 Mildara Blass.................................. 553
483,730 Stanilite Pacific.............................. 633
439,096 Tyndall Australia.............................. 444
500,000 Walker......................................... 200
114,500 West Australian Newspapers..................... 310
16,357 wts. *West Australian Newspapers, 6/30/99............ 5
TOTAL AUSTRALIA 11,019
- --------------------------------------------------------------------------------
AUSTRIA -- 0.1%
- --------------------------------------------------------------------------------
PREFERRED STOCK
4,430 shs. Maculan........................................ 183
- --------------------------------------------------------------------------------
BELGIUM -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
14,000 shs. CMB............................................ 1,080
25,000 wts. *National Portefeuille, 6/15/99................. 77
TOTAL BELGIUM 1,157
- --------------------------------------------------------------------------------
BELIZE -- 0.2%
- --------------------------------------------------------------------------------
COMMON STOCK
37,500 shs. Belize Holdings (USD).......................... 567
- --------------------------------------------------------------------------------
BRAZIL -- 5.2%
- --------------------------------------------------------------------------------
COMMON STOCK
65,000 Capco Automotive Products (USD)................ 577
PREFERRED STOCKS
118,000,000 Artex.......................................... 608
363,000 *Bahia Sul Celulose............................. 294
56,992,000 Banco Nacional................................. 1,055
3,076,000 Casa Anglo Bras................................ 388
42,200,000 Ceval Alimentos................................ 550
97,497,661 Cia Acos Espec Itabira......................... 833
279,000 Cia Siderurgiga Paulista Cosipa 'B'............ 517
5,177,758 Cia Tecidos Norte de Minas..................... 1,367
1,520,965 Dixie Lalekla.................................. 1,167
30,000,000 Duratex........................................ 1,381
1,044,000 Eucatex........................................ 761
750,000 Frigobras Cia Bras de Frigorificos............. 588
451,392,000 Industia e Comercio Chapeco.................... 223
50,800,000 Ipiranga Petroleo.............................. 946
35,746,000 Lojas Renner................................... 685
9,459,900 Mesbla......................................... 985
535,000 *Moinho Santista................................ 651
1,382,000 Multibras Eletrodomesticos..................... 1,454
7,300,000 Pettenati sa Malhas Confeccoes................. 294
568,387,676 Refrigeracao Parana............................ 1,246
6,000,000 Shulz.......................................... 237
3,430,640 *Sifco.......................................... 214
6,861,280 Sifco, pro-rata................................ 428
2,443,000 Weg............................................ 1,258
875,000 *Wentex Textile................................. 1,045
19,175
TOTAL BRAZIL 19,752
- --------------------------------------------------------------------------------
CANADA -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCK
153,000 Arakis Energy (USD)............................ 1,128
</TABLE>
5
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
CHILE -- 0.6%
- --------------------------------------------------------------------------------
COMMON STOCKS
12,800 shs. Banco Osorno y la Union 'A'
ADS (USD).................................... $ 154
20,000 Chilquinta ADR (USD)........................... 265
21,150 Genesis Chile Fund (USD)....................... 708
32,400 Laboratorio Chile ADR (USD).................... 620
64,000 Telex Chile ADR (USD).......................... 504
TOTAL CHILE 2,251
- --------------------------------------------------------------------------------
CHINA -- 0.7%
- --------------------------------------------------------------------------------
COMMON STOCKS
288,000 *China North Industries 'A'
(USD)........................................ 288
1,657,500 Shanghai Diesel Engine 'B'
(USD)........................................ 1,074
3,196,000 *Shanghai Haixing Shipping 'H'
(HKD)........................................ 595
192,000 Shanghai Post & Telecommu-
nications 'B' (USD).......................... 105
576,000 Shanghai Shangling Electric
Appliance 'B' (USD).......................... 426
658,000 Shenzhen Nanshan Power
Station 'B' (HKD)............................ 255
TOTAL CHINA 2,743
- --------------------------------------------------------------------------------
COLOMBIA -- 0.6%
- --------------------------------------------------------------------------------
COMMON STOCKS
42,000 Cementos Diamante 'B'
GDS (USD).................................... 913
18,000 *Cementos Paz del Rio
GDS (USD).................................... 299
36,000 Gran Cadena de Almacemes 'B'
ADS (USD).................................... 590
17,500 Maderas y Sinteticos Sociedad
Anoma ADR (USD).............................. 306
2,108
CORPORATE BOND
150,000 USD Bancol, Cv., 5.20%, 2/1/99..................... 108
TOTAL COLOMBIA 2,216
- --------------------------------------------------------------------------------
CZECH REPUBLIC -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCK
5,000 shs. IPS Praha...................................... 381
- --------------------------------------------------------------------------------
DENMARK -- 0.6%
- --------------------------------------------------------------------------------
COMMON STOCKS
14,000 Incentive...................................... 864
11,100 Silcon 'B'..................................... 545
1,409
CORPORATE BOND
3,100,000 DKK Danske Traelastkompagni, Cv.,
5.25%, 1/1/02............................... $ 752
TOTAL DENMARK 2,161
- --------------------------------------------------------------------------------
FINLAND -- 0.2%
- --------------------------------------------------------------------------------
COMMON STOCK
25,000 shs. Huhtamaki Oy 'I'............................... 810
- --------------------------------------------------------------------------------
FRANCE -- 4.3%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
2,400 Banque Nationale de Paris
Intercont.................................... 124
3,682 But............................................ 693
3,827 C.E.E.......................................... 382
5,400 Cardif......................................... 603
9,011 Centrale pour L'Industrie...................... 532
1,000 Christian Dalloz............................... 163
1,000 wts. *Christian Dalloz, 12/31/98..................... 26
9,600 shs. Cipe France.................................... 1,328
6,100 Club Mediterranee.............................. 616
3,000 Concorde....................................... 427
6,000 Dauphin........................................ 318
1,900 De Dietrich & Cie.............................. 1,067
14,297 Ecco Travail Temporaire........................ 951
9,536 Guilbert....................................... 864
7,000 Legris......................................... 530
6,000 MGI Coutier.................................... 637
8,100 Manutan........................................ 824
23,000 Moulinex....................................... 543
19,037 Rochefortaise
Communication................................ 713
5,400 SITA........................................... 764
2,700 Sidel.......................................... 790
5,624 Societe Des Immeubles
de France.................................... 393
8,500 Spir Communication............................. 825
14,500 Vallourec...................................... 724
4,382 Virbac......................................... 477
10,335 Vulcanic....................................... 366
16,601 Z Groupe Zannier............................... 432
16,112
CORPORATE BOND
410,760 FRF Virbac, Cv., 5.00%, 1/1/01..................... 82
TOTAL FRANCE 16,194
- --------------------------------------------------------------------------------
GERMANY -- 4.2%
- --------------------------------------------------------------------------------
COMMON STOCKS
1,400 shs. Altana......................................... 744
3,000 Balcke Durr.................................... 747
3,750 Dorries Scharmann.............................. 373
1,000 Duerr Beteiligungs............................. 317
500 F.A. Gunther & Sohn............................ 139
</TABLE>
6
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
1,000 shs. Klein, Schanzlin & Becker...................... $ 213
1,437 Leffers........................................ 301
1,875 Nordstern Lebensmittel......................... 392
1,125 Pfleiderer Bau und
Verkehrssysteme.............................. 441
9,300 Pittler Maschinenfabrik........................ 486
2,666 Plettac........................................ 1,654
612 Sixt........................................... 154
125 Sixt, participating certificate................ 94
3,100 Vereinigte Baubeschlag
Handel....................................... 973
630 Victoria Holdings.............................. 484
260 Vossloh........................................ 97
7,609
PREFERRED STOCKS
1,600 Edding......................................... 488
487 Einhell Hans................................... 105
1,600 Hach........................................... 689
2,400 Klein, Schanzlin & Becker...................... 398
2,000 Leffers........................................ 397
1,200 Marschollek Lautenschlaeger.................... 701
1,300 Porsche........................................ 475
1,320 Rhon Klinikum.................................. 962
4,050 Signal Bau Huber............................... 540
268 Sixt........................................... 61
2,500 Spar Handells.................................. 646
1,305 Sto............................................ 852
3,200 Villeroy & Boch................................ 623
4,914 Westag & Getalit............................... 1,248
8,185
TOTAL GERMANY 15,794
- --------------------------------------------------------------------------------
GUATEMALA -- 0.2%
- --------------------------------------------------------------------------------
COMMON STOCK
45,000 *Basic Petroleum (USD).......................... 630
- --------------------------------------------------------------------------------
HONG KONG -- 4.3%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
6,199,000 Anex International............................. 481
3,148,000 China Hong Kong Photo
Products..................................... 691
674,000 China Strategic Investment..................... 287
1,588,000 Esprit Asia.................................... 554
1,456,000 Fairyoung Holdings............................. 513
399,200 wts. *Fairyoung Holdings, 6/30/96.................... 11
2,979,000 shs. Harbour Ring International..................... 300
557,166 wts. *Harbour Ring International,
7/17/97...................................... 10
1,612,400 shs. Hon Kwok Land Investment....................... 375
700,000 Hong Kong Ferry................................ 732
2,924,000 Hualing Holdings............................... 412
378,000 IMC Holdings................................... 249
734,000 JCG Holdings................................... 412
565,000 shs. Joyce Boutique................................. $ 107
202,000 Kingboard Chemical............................. 45
1,121,000 Lamex Holdings................................. 210
5,230,967 Luks Industrial................................ 656
1,077,593 wts. *Luks Industrial, 6/30/96....................... 9
700,000 shs. Manhattan Card................................. 289
1,963,000 National Mutual Asia........................... 1,148
113,000 Pacific Basin Bulk Shipping
(USD)........................................ 1,483
113,000 wts. *Pacific Basin Bulk Shipping,
9/30/99 (USD)................................ 64
2,384,000 shs. Pokphand....................................... 762
873,000 QPL International.............................. 265
3,064,000 Siu Fung Ceramics.............................. 471
843,104 South Sea Development.......................... 40
1,984,000 Swank International
Manufacturers................................ 226
468,800 wts. *Swank International
Manufacturers, 6/30/95....................... 1
5,550,000 shs. Techtronic Industries.......................... 394
643,000 Termbray Industries
International................................ 631
1,200,000 Tian An China Investments...................... 191
1,108,000 Tian Teck Land................................. 210
2,207,000 Ultronics International........................ 106
288,000 Wing Hang Bank................................. 629
1,764,925 World Houseware................................ 385
4,985,000 Yeebo.......................................... 650
1,263,800 wts. *Yeebo, 8/31/96................................. 17
9,185,000 shs. Yue Yuen Industrial............................ 2,124
TOTAL HONG KONG 16,140
- --------------------------------------------------------------------------------
HUNGARY -- 0.2%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
825 *Chinoin........................................ 268
144,000 Fotex (ATS).................................... 252
125 wts. *Hungarian Investments,
6/30/95 (USD)................................ 1
15,584 shs. Richter Gedeon (USD)........................... 262
TOTAL HUNGARY 783
- --------------------------------------------------------------------------------
INDIA -- 1.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
36,000 *Ashok Leyland GDR (USD)........................ 468
87,000 Core Parenterals GDR (USD)..................... 511
40,000 Grasim Industries GDS (USD).................... 810
35,800 *Hindalco GDR (USD)............................. 949
93,000 Indo Gulf Fertilisers &
Chemicals GDR (USD).......................... 191
14,000 Reliance Industries GDS
(USD)........................................ 227
186,000 Videocon International GDR
(USD)........................................ 604
3,760
</TABLE>
7
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
INDIA (Cont'd)
- --------------------------------------------------------------------------------
CORPORATE BONDS
465,000 USD Essar Gujarat, Cv., 5.50%,
8/5/98....................................... $ 542
885,000 USD Gujarat Ambuja Cements, Cv.,
3.50%, 6/30/99............................... 1,146
1,688
TOTAL INDIA 5,448
- --------------------------------------------------------------------------------
INDONESIA -- 3.5%
- --------------------------------------------------------------------------------
COMMON STOCKS
401,000 shs. Argha Karya Prima Industry..................... 287
211,000 Bank Dagang Nasional........................... 262
269,583 Duta Anggada Realty............................ 160
60,500 *Enseval Putera Megatrading..................... 122
457,200 Ganda Wangsa Utama............................. 133
157,500 Hanjaya Mandala Sampoerna...................... 924
534,000 Indah Kiat Paper & Pulp........................ 592
306,350 *Indofoods Sukses Makmur........................ 1,084
273,000 Indorama Synthetic............................. 838
151,000 *Indosat 'B'.................................... 544
25,000 *Indosat 'B' ADR (USD).......................... 903
330,000 Inti Indorayon Utama........................... 665
83,250 Intraco Penta.................................. 78
161,500 Jakarta International Hotels &
Development.................................. 134
161,500 Jaya Real Property............................. 398
152,000 Mayora Indah................................... 545
110,500 Modernland Realty.............................. 178
676,800 Mulia Industrindo.............................. 1,167
701,000 Pabrik Kertas Tjiwi Kimia...................... 989
373,000 Pakuwon Jati................................... 175
724,500 Panin Bank..................................... 706
253,200 Semen Cibinong................................. 680
159,000 Semen Gresik................................... 726
190,400 Sinar Mas Agro Resources &
Technology................................... 158
187,000 United Tractors................................ 327
12,775
CORPORATE BONDS
200,000 CHF Indorama Synthetic, 4.50%,
12/31/97..................................... 192
265,200,000 IDR Modernland Realty, Cv.,
6.00%, 10/20/03.............................. 117
309
TOTAL INDONESIA 13,084
- --------------------------------------------------------------------------------
IRELAND -- 0.6%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
306,000 shs. Abbey.......................................... 625
600,000 Barlo Group.................................... 392
494,505 wts. *Dragon Oil (GBP)............................... $6
53,000 shs. Grafton Group.................................. 323
700,000 Kenmare Resources (GBP)........................ 146
386,000 Kingspan Group................................. 933
TOTAL IRELAND 2,425
- --------------------------------------------------------------------------------
ISRAEL -- 0.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
9,200 Discount Investment............................ 609
26,000 Teva Pharmaceutical ADR
(USD)........................................ 903
TOTAL ISRAEL 1,512
- --------------------------------------------------------------------------------
ITALY -- 2.6%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
182,000 Cementeria di Augusta.......................... 255
380,000 Danieli & Company, savings
shares....................................... 1,224
55,500 wts. *Danieli & Company, 11/30/99.................... 45
690,000 shs. Editoriale la Republica........................ 878
86,200 Fila Holdings ADR (USD)........................ 1,929
12,300 Industrie Natuzzi ADR (USD).................... 452
92,081 Merloni Electrodomestici....................... 309
473,081 Merloni Electrodomestici,
savings shares............................... 756
87,700 Saes Getters................................... 1,067
107,800 Saes Getters, savings shares................... 595
720,000 Tecnost........................................ 1,632
90,000 Telecocavi, savings shares..................... 213
90,000 Vianini Lavori................................. 145
21,000 Zucchi, savings shares......................... 54
9,554
CORPORATE BOND
333,000,000 ITL Danieli & Company,
7.50%, 1/1/00................................ 159
TOTAL ITALY 9,713
- --------------------------------------------------------------------------------
JAPAN -- 16.8%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
35,000 shs. Amway Japan.................................... 1,304
101,000 Apollo Electronics............................. 1,743
32,000 Asatsu......................................... 1,276
16,000 Aval Data...................................... 274
113,000 Avon Products.................................. 804
1,010 wts. *C Cube, 2/13/96 (CHF).......................... 19
29,000 shs. Canon Sales.................................... 766
2,510 wts. *Canon Sales, 11/11/97 (CHF).................... 186
6,000 shs. Chofu Seisakusho............................... 155
12,000 Chuetsu Pulp & Paper........................... 69
81,000 Daibiru........................................ 1,002
53,000 Daifuku........................................ 694
18,000 Daishinku...................................... 225
8,000 Disco.......................................... 245
</TABLE>
8
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- --------------------------------------------------------------------------------
<TABLE>
<C> <S> <C>
34,000 shs. Eidensha....................................... $ 461
1,450 wts. *Eidensha, 2/14/96 (DEM)........................ 57
31,000 shs. Emoto Industry................................. 516
34,000 Enix........................................... 1,084
25,000 Enplas......................................... 583
3,600 F.C.C.......................................... 113
17,000 Fanuc.......................................... 769
41,000 Glory.......................................... 1,249
93,000 Hamada Printing Press.......................... 818
8,000 Hankyu Realty.................................. 61
19,500 Higashi Nihon House............................ 415
10,000 Hirose Electric................................ 608
74,000 Hitachi Tool Engineering....................... 440
51,000 Horiba......................................... 655
117,000 Idec Izumi..................................... 995
13,000 Impact 21...................................... 226
53,600 Ishiguro Homa.................................. 1,021
74,000 Iwata Air Compressor
Manufacturing................................ 358
36,000 Japan Airport Terminal......................... 446
75,000 Japan Living Service........................... 589
43,000 Juel Verite Ohkubo............................. 418
100 wts. *Juel Verite Ohkubo,
3/10/98 (CHF)................................ 10
80,000 shs. Juntendo....................................... 657
51,000 Kansai Sekiwa Real Estate...................... 765
57,000 KOA............................................ 868
42,700 KTK Telecommunications
Engineering.................................. 518
13,000 Kato Denki..................................... 317
700 wts. *Kawasaki Electric, 12/20/96
(CHF)........................................ 3
13,100 shs. Keyence........................................ 1,397
29,100 Kyokuto Kaihatsu Kogyo......................... 679
18,000 Lasertec....................................... 683
21,000 Levi Strauss Japan Kabushiki
Kaisha....................................... 355
52,000 Lintec......................................... 891
13,500 Mabuchi Motor.................................. 892
700 Maezawa Industries............................. 19
23,100 Masaru......................................... 434
54,000 Meitec......................................... 688
85,000 Meitetsu Transport............................. 611
1,300 wts. *Meitetsu Transport,
4/30/97 (CHF)................................ 83
45,000 shs. Mori Seiki..................................... 841
10,000 Mos Food Services.............................. 294
71,000 Namura Shipbuilding............................ 422
30,000 Natoco Paint................................... 464
82,000 New Japan Securities........................... 504
51,000 Nichicon....................................... 728
3,800 Nichiei........................................ 245
21,000 Nihon Dempa Kogyo.............................. 637
136,000 shs. Nippon Columbia................................ $ 922
117,600 Nippon Denwa Shisetsu.......................... 1,086
45,000 Nippon Kagaku Yakin............................ 450
258,000 Nippon Kakoh Seishi............................ 1,348
72,000 Nippon Konpo Unyu Soko......................... 704
64,000 Nippon Seiki................................... 1,036
121,000 Nippon Thompson................................ 877
137,000 Nippon Yusoki.................................. 637
19,000 Nissha Printing................................ 319
69,600 Nitta.......................................... 1,010
52,000 Okasan Securities.............................. 292
34,000 Osaka Organic Chemical......................... 396
44,000 Paltac......................................... 733
8,900 Promise........................................ 389
12,600 SMC............................................ 667
46,000 Sanken Electric................................ 424
22,000 Sankyo Engineering............................. 534
120,000 Sankyo Seiki Manufacturing..................... 723
39,000 Sanoyas Hishino Meisho......................... 224
60,000 Sanyo Securities............................... 272
20,000 Seiko.......................................... 512
59,000 Sekisui House Wood............................. 443
30,000 Senshukai...................................... 585
27,000 Shinkawa....................................... 675
161,000 Sintokogio..................................... 1,374
123,000 Sodick......................................... 981
118,000 Sogo Denki..................................... 878
41,000 Sumitomo Precision............................. 297
28,000 Tamura......................................... 210
42,000 Toc............................................ 450
32,000 Tohoku Telecommunications...................... 228
60,500 Tokai Rubber Industries........................ 763
13,000 Tokyo Ohka Kogyo............................... 405
160,000 Topre.......................................... 1,378
221,000 Toshiba Tungaloy............................... 1,141
29,000 Toyo Communication
Equipment.................................... 707
82,000 Toyo Steel..................................... 381
104,000 Toyo Umpanki................................... 495
15,000 Trusco Nakayama................................ 353
18,000 Uniden......................................... 379
77,000 Wako Securities................................ 606
31,700 Xebio.......................................... 1,117
68,000 Yamatane Securities............................ 327
77,000 Yamato Kogyo................................... 787
1,500 wts. *Yokkaichi Warehouse,
6/13/95 (DEM)................................ 1
TOTAL JAPAN 63,165
- --------------------------------------------------------------------------------
MALAYSIA -- 3.9%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
833,000 shs. Affin Holdings................................. 1,166
234,600 wts. *Affin Holdings, 8/22/99........................ 118
</TABLE>
9
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
MALAYSIA (Cont'd)
- --------------------------------------------------------------------------------
56,333 shs. Arab Malaysian Finance......................... $ 142
290,000 Asas Dunia..................................... 692
235,000 Bandar Raya Developments....................... 395
418,000 wts. *Bandar Raya Developments,
9/1/97....................................... 408
72,000 shs. CHG Industries................................. 189
91,300 Cement Manufacturers
Serawak...................................... 428
291,000 Chemical Company of
Malaysia..................................... 1,071
222,000 Hock Hua Bank.................................. 633
62,000 Land & General................................. 179
57,500 *Land & General 'A', new........................ 166
159,000 Lityan Holdings................................ 444
302,000 MTD Capital.................................... 1,833
428,000 Malaysian Assurance Alliance................... 1,394
582,000 Muda Holdings.................................. 857
606,000 Pelangi........................................ 733
203,000 Public Finance................................. 374
281,000 Shah Alam Properties........................... 591
151,000 Sungei Way Holdings............................ 599
11,000 wts. *Sungei Way Holdings, 6/29/99................... 15
566,000 shs. *Sunway Building Technology..................... 2,061
35,000 Westmont....................................... 152
14,640
PREFERRED STOCK
225,333 Arab Malaysian Finance, 7.50%
Cv. Loan Stock, 11/20/99..................... 96
TOTAL MALAYSIA 14,736
- --------------------------------------------------------------------------------
MEXICO -- 1.5%
- --------------------------------------------------------------------------------
COMMON STOCKS
77,210 Banca Quadrum ADR (USD)........................ 483
660,000 Embotelladores del Valle
Anahuac 'B'.................................. 526
340,000 Empaques Ponderosa 'B'......................... 705
8,244 Gpo Industrial San Luis Units.................. 121
200,000 *Grupo Fernandez Editores 'B'................... 115
73,000 *Grupo Financiero Inbursa 'C'................... 138
30,000 *Grupo Industrial Durango
'A' ADR (USD)................................ 240
14,926 *Grupo Mexicano de Desarrollo
'B' ADS (USD)................................ 65
13,000 *Grupo Mexicano de Desarrollo
Units ADS (USD)............................. 67
650,000 Grupo Posadas 'A'.............................. 239
39,000 Grupo Radio Centro ADS
(USD)........................................ 405
106,200 *Grupo Sidek 'B' ADR (USD)...................... 438
2,640 *Grupo Sidek 'L' ADR (USD)...................... 14
44,936 Grupo Simec 'B' ADR (USD)...................... 449
180,888 shs. International de Ceramica PC................... 322
100,000 *Jugos del Valle 'B'............................ 265
45,000 *Sears Roebuck de Mexico
'B' ADS (USD)................................ 329
28,000 *Sears Roebuck de Mexico
'B' GDS (USD)................................ 205
1,125,000 *Seguros Comercial
Americana 'B'................................ 207
102,000 Tolmex 'B2'.................................... 339
TOTAL MEXICO 5,672
- --------------------------------------------------------------------------------
NETHERLANDS -- 2.1%
- --------------------------------------------------------------------------------
COMMON STOCKS
8,750 Aalberts Industries............................ 468
3,255 Ahrend Groep................................... 404
7,500 Atag........................................... 570
4,700 Crown van Gelder............................... 514
8,000 Draka Holdings................................. 202
14,000 Frans Maas Groep Koninklijke................... 388
14,000 Hagemeyer...................................... 1,209
19,700 International-Muller........................... 1,256
3,500 Otra........................................... 707
5,600 Polynorm....................................... 588
17,000 Randstad Holdings.............................. 1,019
13,200 Sphinx Gustavsberg............................. 438
TOTAL NETHERLANDS 7,763
- --------------------------------------------------------------------------------
NEW ZEALAND -- 2.1%
- --------------------------------------------------------------------------------
COMMON STOCKS
1,906,000 CDL Hotels..................................... 909
36,000 Ceramco........................................ 62
30,989 Fernz.......................................... 114
300,000 Independent Newspapers......................... 1,088
61,000 PDL Holdings................................... 344
411,000 Ports of Auckland.............................. 823
877,888 Skellerup Group................................ 1,357
243,000 Steel & Tube Holdings.......................... 1,231
205,000 The Helicopter Line............................ 661
291,857 Whitcoulls Group............................... 622
703,000 Wrightson...................................... 567
TOTAL NEW ZEALAND 7,778
- --------------------------------------------------------------------------------
NORWAY -- 2.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
65,810 Awilco 'B'..................................... 713
40,400 Bona Ship Holdings............................. 389
17,680 Det Norske Luftfartselskap 'B'................. 712
39,700 Kverneland Gruppen............................. 590
35,700 Liva Bil 'A'................................... 676
322,762 Moelven Industrier............................. 453
24,000 Nera........................................... 532
19,900 Norske Skogsindustrier 'A'..................... 680
78,750 Schibsted...................................... 948
</TABLE>
10
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<TABLE>
<C> <S> <C>
37,000 shs. Sensonor....................................... $ 336
56,000 Smedvig Tankships.............................. 396
100,000 Sysdeco Group.................................. 738
8,150 System Etikettering............................ 135
172,500 Tomra Systems.................................. 634
79,250 Wilrig......................................... 617
TOTAL NORWAY 8,549
- --------------------------------------------------------------------------------
PERU -- 1.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
251,280 Backus y Johnston
Cerveceria 'T'............................... 608
21,800 Cementos Lima.................................. 468
34,100 *Cementos Yura 'C' (USD)........................ 298
23,600 Compania de Seguard la
Fenix Peru................................... 440
280,000 *Compania Embotelladora del
Pacifico 'B' (USD)........................... 423
117,500 Enrique Ferreyros.............................. 184
94,500 Explosivos 'C'................................. 379
94,500 Explosivos 'T'................................. 379
1,013,333 *Peru Real Estate 'B'........................... 845
46,373 Southern Peru Copper 'T'....................... 208
4,232
CORPORATE BOND
790,000 USD International Financial
Holdings, 6.50%, 8/1/99...................... 798
TOTAL PERU 5,030
- --------------------------------------------------------------------------------
PHILIPPINES -- 0.7%
- --------------------------------------------------------------------------------
COMMON STOCKS
247,640 shs. First Philippine Holdings 'B'.................. 618
11,600 Philippine Long Distance
Telephone ADR (USD).......................... 741
2,850,000 *SM Prime....................................... 864
2,223
CORPORATE BOND
253,300 USD Benpres Holdings, Cv.,
4.20%, 11/26/49.............................. 538
TOTAL PHILIPPINES 2,761
- --------------------------------------------------------------------------------
POLAND -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCKS
50,000 shs. Elektrim....................................... 191
1,329,372 *International UNP Holdings
(CAD)........................................ 538
100,000 Mostostal Export............................... 561
TOTAL POLAND 1,290
- --------------------------------------------------------------------------------
PORTUGAL -- 0.2%
- --------------------------------------------------------------------------------
COMMON STOCKS
30,000 shs. *Jornalgeste.................................... $ 507
11,000 Lusotur Sociedad
Financeira de Tur............................ 205
9,000 Salvador Caetano............................... 175
TOTAL PORTUGAL 887
- --------------------------------------------------------------------------------
RUSSIA -- 0.2%
- --------------------------------------------------------------------------------
COMMON STOCKS
96,000 *Petersburg Long
Distance (USD)............................... 468
35,000 *Petersburg Long
Distance (CAD)............................... 167
TOTAL RUSSIA 635
- --------------------------------------------------------------------------------
SINGAPORE -- 1.8%
- --------------------------------------------------------------------------------
COMMON STOCKS
689,000 CSA Holdings................................... 554
71,000 Far East Levingston
Shipbuilding................................. 311
530,000 Hong Fok....................................... 742
344,000 Hour Glass..................................... 291
332,000 Hwa Tat Lee.................................... 143
235,000 Intraco........................................ 329
362,000 Malayan Credit................................. 735
292,000 Marco Polo Development......................... 339
706,000 Pacific Carrier................................ 704
1,135,000 Republic Hotels & Resorts...................... 1,556
356,000 Tiger Medicals................................. 460
266,000 Wing Tai Holdings.............................. 450
TOTAL SINGAPORE 6,614
- --------------------------------------------------------------------------------
SOUTH AFRICA -- 0.9%
- --------------------------------------------------------------------------------
COMMON STOCKS
120,200 Barlow Limited................................. 1,212
519,200 Iscor.......................................... 644
140,000 Rembrandt Group................................ 1,025
62,000 Sasol.......................................... 600
TOTAL SOUTH AFRICA 3,481
- --------------------------------------------------------------------------------
SOUTH KOREA -- 1.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
10,000 Coryo Securities............................... 131
19,170 HS Chemical.................................... 784
21,121 Kisan.......................................... 366
22 Korea Growth Trust
IDR (USD).................................... 737
26,361 Kun Young Construction......................... 384
13,050 Pacific Corporation............................ 353
1,455 Samick Construction............................ 13
6,984 Samick Construction, new....................... 57
79,434 Samsung Construction........................... 2,105
</TABLE>
11
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<C> <S> <C>
- --------------------------------------------------------------------------------
SOUTH KOREA (Cont'd)
- --------------------------------------------------------------------------------
2,500 shs. Samsung GDR 1/2 Voting
Shares (USD)................................. $ 37
1,321 *Samsung GDS 1/2 Voting
Shares, new (USD)............................ 19
800 Samsung GDS 1/2 Non-Voting
Shares (USD)................................. 6
4,992
PREFERRED STOCK
23,500 Pacific Corporation............................ 277
TOTAL SOUTH KOREA 5,269
- --------------------------------------------------------------------------------
SPAIN -- 1.6%
- --------------------------------------------------------------------------------
COMMON STOCKS
15,000 Azkoyen........................................ 954
187,500 Corporacion Financiaera
Reunida...................................... 609
55,000 Energia e Industrias
Aragonesas................................... 283
7,030 Europistas, new................................ 60
90,000 Filo........................................... 658
45,000 *Filo, new...................................... 324
23,821 Grupo Anaya.................................... 627
139,000 Grupo Duro Felguera............................ 528
19,000 Inmobiliaria Metropolitana
Vasco........................................ 559
65,670 Marco Iberica Distribucion
de Edic...................................... 693
14,000 Prosegur Compania
Securidad.................................... 291
125,000 Sotogrande..................................... 300
5,886
CORPORATE BOND
32,910,000 ESP Grupo Anaya, Cv.,
7.00%, 3/18/98............................... 267
TOTAL SPAIN 6,153
- --------------------------------------------------------------------------------
SWEDEN -- 3.5%
- --------------------------------------------------------------------------------
COMMON STOCKS
67,000 shs. Angpanne Foreningen 'B'........................ 1,061
43,000 Arjo........................................... 669
277,000 BPA 'A'........................................ 477
100,500 Catena 'A'..................................... 719
35,000 Euroc Industriab 'A'........................... 703
1,008,000 Finnveden 'B'.................................. 978
380,000 Frontline...................................... 1,046
37,532 Gambro 'B'..................................... 488
42,100 Getinge Industrier 'B'......................... 1,292
60,000 *Hoganas 'B'.................................... 1,016
111,000 ICB Shipping 'B'............................... 848
64,000 Kalmar Industries.............................. 877
38,900 Linjebuss 'A'.................................. 535
58,000 shs. Scribona 'B'................................... $ 435
18,000 Securitas 'B'.................................. 540
140,000 Stena Line 'B'................................. 707
58,000 TV 4 'A'....................................... 1,110
13,501
CORPORATE BOND
900,000 SEK Stena Line, Cv., 7.00%, 4/30/01................ 116
TOTAL SWEDEN 13,617
- --------------------------------------------------------------------------------
SWITZERLAND -- 2.5%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
455 shs. Bil GT Gruppe, PC.............................. 226
540 Bobst.......................................... 735
1,010 Bossard Holdings............................... 1,454
750 Bucher Holding................................. 432
2,600 wts. *Bucher Holding, 7/21/95........................ 63
750 *Bucher Holding, 10/27/95....................... 1
3,200 shs. Generale D'Affichage........................... 1,060
360 Gurit Heberlien................................ 738
800 Magazine Zum Globus............................ 530
4,600 *Mikron Holdings, new........................... 361
3,550 Porst Holdings................................. 706
1,375 *Saurer......................................... 494
340 Sig Schweiz.................................... 765
3,158 Sika Finanz.................................... 928
3,000 Suter & Suter.................................. 130
7,000 Von Moos....................................... 733
TOTAL SWITZERLAND 9,356
- --------------------------------------------------------------------------------
TAIWAN -- 1.0%
- --------------------------------------------------------------------------------
COMMON STOCKS
56,000 *GVC Corporation GDR (USD)...................... 889
15,000 *Tung Ho Steel Enterprise
GDS (USD).................................... 311
51,100 Yageo GDR (USD)................................ 1,022
15,227 Yageo GDS, new (USD)........................... 305
2,527
CORPORATE BONDS
240,000 USD Acer, Cv., 4.00%, 6/10/01...................... 654
365,000 USD United Micro Electronics,
Cv., 1.25%, 6/8/04........................... 572
1,226
TOTAL TAIWAN 3,753
- --------------------------------------------------------------------------------
THAILAND -- 2.4%
- --------------------------------------------------------------------------------
COMMON STOCKS, RIGHTS & WARRANTS
26,000 shs. Bangkok Insurance Public....................... 463
220,000 Bangkok Metropolitan Bank...................... 224
752,000 First Pacific Land............................. 313
41,900 Goodyear....................................... 491
59,000 Hana Microelectronics.......................... 222
740,000 Industrial Finance of Thailand................. 1,580
</TABLE>
12
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<TABLE>
<C> <S> <C>
13,000 shs. International Cosmetics........................ $ 208
53,000 Nation Publishing.............................. 64
167,000 Precious Shipping.............................. 1,793
79,000 Property Perfect............................... 629
20,444 wts. *Property Perfect, 7/7/99....................... 22
291,000 shs. Sahavirya Steel................................ 751
17,000 Sanyo Universal Electric....................... 86
51,000 rts. *Sanyo Universal Electric....................... 226
900,000 shs. Siam City Bank................................. 924
119,000 Swedish Motors................................. 312
92,000 Unithai Line Public............................ 617
TOTAL THAILAND 8,925
- --------------------------------------------------------------------------------
TURKEY -- 0.1%
- --------------------------------------------------------------------------------
COMMON STOCKS
249,400 Guney Biracilik................................ 126
684,320 *Medya Holdings, new............................ 25
TOTAL TURKEY 151
- --------------------------------------------------------------------------------
UNITED KINGDOM -- 13.6%
- --------------------------------------------------------------------------------
COMMON STOCKS & WARRANTS
99,000 wts. *Abtrust Lloyds
Insurance Trust.............................. 45
341,666 shs. Ashtead Group.................................. 2,381
105,150 Avon Rubber.................................... 795
210,000 Baggeridge Brick............................... 443
250,000 Berisford International........................ 982
78,664 * British Biotechnology..................... 629
905,047 Britton Group.................................. 2,097
800,000 Bruntcliffe Aggregates......................... 373
357,600 CALA........................................... 656
397,222 CRT Group...................................... 579
210,000 Carpetright.................................... 857
1,280,585 Casket......................................... 319
173,000 Chamberlain Phipps............................. 486
52,000 Claremont Garments............................. 262
425,000 Corporate Services Group....................... 533
814,790 Crestacare..................................... 420
265,000 Devro International............................ 1,000
13,846,152 *Dragon Oil..................................... 390
45,000 Druck Holdings................................. 1,068
587,734 Enviromed...................................... 785
250,000 Eurodollar Holdings............................ 873
150,952 Ferraris Group................................. 187
102,500 Finelist Group................................. 361
67,000 First Technology............................... 444
247,200 Frost Group.................................... 1,074
3,839,837 Graystone...................................... 788
490,000 HTV Group...................................... 1,482
480,000 Halkin Holdings................................ 533
150,000 Helical Bar.................................... 754
32,500 shs. Henderson Administration
Group........................................ $ 583
357,000 Hi-Tech Sports................................. 103
1,225,000 Hobson......................................... 552
160,000 Holliday Chemical Holding...................... 507
290,000 Ibstock........................................ 369
83,000 Iceland Group.................................. 240
300,000 Ingham......................................... 256
340,500 JBA Holdings................................... 860
185,000 Keller Group................................... 301
187,500 Kenwood Appliances............................. 851
130,000 Kewill Systems................................. 586
287,330 London & Overseas
Freighters................................... 314
93,000 Mackie International Group..................... 355
208,000 Matthew Clark.................................. 1,995
1,565,000 Mayflower...................................... 1,561
332,000 Millgate....................................... 59
547,000 Mirror Group................................... 1,184
706,176 Monument Oil & Gas............................. 724
450,000 NSM............................................ 739
353,556 Northern Leisure............................... 455
47,843 *Norton Group................................... 0
120,000 Oliver Group................................... 178
733,333 Pentos......................................... 0
141,000 Peter Black Holdings........................... 529
100,000 *Pillar Property Investments.................... 261
335,000 Pizza Express.................................. 739
139,000 Powerscreen International...................... 622
132,000 Precoat International.......................... 268
300,000 Princedale Group............................... 121
2,800,000 Prospect Industries............................ 496
263,575 Prowting....................................... 479
194,979 Quadramatic.................................... 640
140,140 RJB Mining..................................... 958
27,001,416 *Regal Hotel Group.............................. 652
1,626,525 *Roxspur........................................ 406
50,000 Serco Group.................................... 197
765,000 Shandwick...................................... 419
635,555 Spring Ram..................................... 409
593,750 Stakis......................................... 807
210,000 Sterling Publishing............................ 108
750,000 Stirling Group................................. 664
2,000,000 Sunleigh....................................... 113
618,530 Taylor Nelson.................................. 348
885,000 Transtec....................................... 1,040
63,500 Trifast........................................ 266
671,043 UK Estates..................................... 208
475,000 Ugland International........................... 803
132,000 VCI............................................ 350
4,578,501 Verity Group................................... 589
265,000 Vibroplant..................................... 439
</TABLE>
13
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund / Statement of Net Assets (Unaudited)
- --------------------------------------------------------------------------------
(values in thousands except capital stock information)
<TABLE>
<CAPTION>
<C> <S> <C> <C>
- --------------------------------------------------------------------------------
UNITED KINGDOM (Cont'd)
- --------------------------------------------------------------------------------
541,000 shs. *Videologic Group............................... $ 366
449,000 WPP Group...................................... 788
897,301 Wellman........................................ 578
463,888 Wickes......................................... 814
5,015,000 Wiggins Group.................................. 282
50,127
PREFERRED STOCKS
550,000 Berisford International, 5.00%
Cv. Loan Stock, 2015......................... 916
120,000 Iceland Group, Cum. Cv......................... 270
1,186
TOTAL UNITED KINGDOM 51,313
- --------------------------------------------------------------------------------
VENEZUELA -- 0.4%
- --------------------------------------------------------------------------------
COMMON STOCKS
15,000 Corimon ADR (USD).............................. 107
94,982 *Mavesa ADR (USD)............................... 326
66,566 *Mavesa 144a Sponsored
ADR (USD).................................... 229
109,333 *Mavesa ADS (USD)............................... 376
52,800 Sudamtex de Venezuela 'B'
ADR (USD).................................... 244
80,000 *Venezolana de Prerreducidos
Caroni GDS (USD)............................. 380
TOTAL VENEZUELA 1,662
- --------------------------------------------------------------------------------
VIETNAM -- 0.3%
- --------------------------------------------------------------------------------
COMMON STOCK
118,600 *Lazard Frier & Co. Vietnam
Fund (USD)................................... 1,245
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 4.1%
- --------------------------------------------------------------------------------
COMMERCIAL PAPER
$5,000,000 Bayerische Hypotheken-Und
Wechsel Bank,
6.05%, 5/5/95................................ 5,000
2,750,000 Ciesco L.P., 6.00%, 7/20/95.................... 2,708
5,000,000 Commerzbank, 6.00%, 7/17/95.................... 4,931
28,000 President & Fellows Harvard
College, 5.93%, 5/1/95....................... 28
2,700,000 UBS Finance (Delaware),
5.93%, 5/1/95................................ 2,699
TOTAL SHORT-TERM INVESTMENTS 15,366
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS IN SECURITIES --99.6% OF NET
ASSETS (COST $400,680) $375,234
- --------------------------------------------------------------------------------
OTHER ASSETS LESS LIABILITIES........... 1,526
-----
NET ASSETS CONSIST OF: Value
--------
Accumulated net investment income
- net of distributions............... $ 246
Accumulated net realized gain/loss
- net of distributions............... (7,274)
Net unrealized gain (loss)............... (25,379)
Paid-in-capital applicable to
26,875,527 shares of $0.01 par
value capital stock outstanding;
2,000,000,000 shares of the
Corporation authorized .............. 409,167
-------
NET ASSETS............................... $376,760
=======
NET ASSET VALUE PER SHARE................ $14.02
=====
</TABLE>
- --------------------------------------------------------------------------------
* Non-income producing
(ATS) Austrian schilling
(CAD) Canadian dollar
(CHF) Swiss franc
(DEM) German deutschemark
(DKK) Danish krone
(ESP) Spanish peseta
(FRF) French franc
(GBP) British sterling
(HKD) Hong Kong dollar
(IDR) Indonesian rupia
(ITL) Italian lira
(SEK) Swedish krona
(USD) U.S. dollar
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund / Six Months Ended
April 30, 1995 (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income
Dividend (net of foreign taxes of $389)............................ $ 2,808
Interest........................................................... 581
--------
Total income....................................................... 3,389
--------
Expenses
Investment management.............................................. 2,344
Shareholder servicing.............................................. 427
Custody and accounting............................................. 164
Registration....................................................... 47
Prospectus and shareholder reports................................. 45
Legal and audit.................................................... 22
Proxy and annual meeting........................................... 18
Directors.......................................................... 9
Miscellaneous...................................................... 11
--------
Total expenses..................................................... 3,087
--------
Net investment income................................................ 302
--------
<CAPTION>
REALIZED AND UNREALIZED GAIN (LOSS)
<S> <C>
Net realized gain (loss) on:
Securities......................................................... (5,690)
Foreign currency transactions...................................... (164)
--------
Net realized gain (loss)........................................... (5,854)
--------
Change in net unrealized gain or loss on:
Securities......................................................... (71,277)
Other assets and liabilities denominated in foreign currencies..... 36
--------
Change in net unrealized gain or loss.............................. (71,241)
--------
Net realized and unrealized gain (loss).............................. (77,095)
--------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS.................... $(76,793)
========
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund (Unaudited)
(in thousands)
<TABLE>
<CAPTION>
Year Ended
Six Months Ended October 31,
April 30, 1995 1994
---------------- ----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
Operations
Net investment income........................................... $ 302 $ 1,710
Net realized gain (loss)........................................ (5,854) 33,944
Change in net unrealized gain or loss........................... (71,241) (3,800)
-------- --------
Increase (decrease) in net assets from operations............... (76,793) 31,854
-------- --------
Distributions to shareholders
Net investment income........................................... (1,593) (1,527)
Net realized gain............................................... (23,937) (437)
-------- --------
Decrease in net assets from distributions....................... (25,530) (1,964)
-------- --------
Capital share transactions*
Shares sold..................................................... 34,677 283,987
Distributions reinvested........................................ 23,502 1,746
Shares redeemed................................................. (82,787) (141,266)
Redemption fees received........................................ 249 84
-------- --------
Increase (decrease) in net assets from
capital share transactions.................................... (24,359) 144,551
-------- --------
Increase (decrease) in net assets................................. (126,682) 174,441
NET ASSETS
Beginning of period............................................... 503,442 329,001
-------- --------
End of period..................................................... $376,760 $503,442
======== ========
- --------------------------------------------------------------------------------------------------
*Share information
Shares sold..................................................... 2,334 16,233
Distributions reinvested........................................ 1,573 102
Shares redeemed................................................. (5,579) (8,143)
-------- --------
Increase (decrease) in shares outstanding....................... (1,672) 8,192
======== ========
</TABLE>
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
T. Rowe Price International Discovery Fund / April 30, 1995 (Unaudited)
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Funds, Inc. (the Corporation) is registered under
the Investment Company Act of 1940. The International Discovery Fund (the
fund), a diversified, open-end management investment company, is one of the
portfolios established by the Corporation.
A) Valuation - Equity securities listed or regularly traded on a securities
exchange (including NASDAQ) are valued at the last quoted sales price at the
time 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. Other equity securities and those
listed securities that are not traded on a particular day 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.
Debt securities are generally traded in the over-the-counter market and
are valued at a price deemed best to reflect fair value as quoted by dealers
who make markets in these securities or by an independent pricing service.
Short-term debt securities are valued at their cost which, when combined with
accrued interest, approximates fair value.
For purposes of determining the fund's net asset value per share, the
U.S. dollar value of all assets and liabilities initially expressed in
foreign currencies is determined by using the mean of the bid and offer
prices of such currencies against U.S. dollars quoted by a major bank.
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.
B) Currency Translation - Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such
transactions. The effect of changes in foreign exchange rates on realized and
unrealized security gains and losses is reflected as a component of such
gains and losses.
C) 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 an 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.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks and enhance performance. The
investment objective, policies, program, risk factors, and following
practices of the fund are described more fully in the fund's Prospectus and
Statement of Additional Information.
A) Emerging Markets - At April 30, 1995, the fund held investments in
securities of companies located in emerging markets. Future economic or
political developments could adversely affect the liquidity or value, or
both, of such securities.
B) Other - Purchases and sales of portfolio securities, other than short-term
and U.S. government securities, aggregated $83,571,000 and $133,367,000,
respectively, for the six months ended April 30, 1995.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as
17
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Cont'd)
- --------------------------------------------------------------------------------
a regulated investment company and distribute all of its taxable income.
At April 30, 1995, the aggregate cost of investments for federal income
tax and financial reporting purposes was $400,680,000 and net unrealized loss
aggregated $25,446,000, of which $37,506,000 related to appreciated
investments and $62,952,000 to depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The fund is managed by Rowe Price-Fleming International, Inc. (Price-Fleming),
which is owned by T. Rowe Price Associates, Inc. (Price Associates), Robert
Fleming Holdings Limited, and Jardine Fleming Holdings Limited under a joint
venture agreement.
The investment management agreement between the fund and Price-Fleming
(the Manager) provides for an annual investment management fee, of which
$352,000 was payable at April 30, 1995. The fee is computed daily and paid
monthly, and consists of an Individual Fund Fee equal to 0.75% 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 Price Associates
(the Group). The Group Fee rate ranges from 0.48% for the first $1 billion of
assets to 0.31% for assets in excess of $34 billion. At April 30, 1995, and
for the six months then ended, the effective annual Group Fee rate was 0.34%.
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 was
required to bear any expenses through December 31, 1993 which would cause the
fund's ratio of expenses to average net assets to exceed 1.50%. Thereafter
through December 31, 1995, 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 1.50%. Pursuant to this and a
previous agreement, $93,000 of unaccrued fees were repaid during the six
months ended April 30, 1995. Pursuant to a previous agreement, $325,000 of
unaccrued fees from 1991-1992 were permanently waived at December 31, 1994.
Additionally, $53,000 of unaccrued fees from the ten months ended October 31,
1993 are subject to reimbursement through December 31, 1995.
In addition, the fund has entered into agreements with Price Associates
and two wholly owned subsidiaries of Price Associates, pursuant to which the
fund receives certain other services. Price Associates computes the daily
share price and maintains the financial records of the fund. T. Rowe Price
Services, Inc. (TRPS) 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 approxi-
mately $421,000 for the six months ended April 30, 1995, of which $109,000 was
payable at period-end.
During the six months ended April 30, 1995, the fund, in the ordinary
course of business, paid commissions of $221,000 to, and placed security
purchase and sale orders aggregating $43,527,000 with, certain affiliates of
the Manager in connection with the execution of various portfolio
transactions.
18
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
T. Rowe Price International Discovery Fund (Unaudited)
<TABLE>
<CAPTION>
For a share outstanding throughout each period
----------------------------------------------------------------------
Six Months Year Ten Months
Ended Ended Ended Year Ended December 31,
April 30, October 31, October 31, ---------------------------
1995 1994 1993++ 1992 1991 1990
----------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF PERIOD.............. $17.63 $16.16 $11.68 $12.99 $11.75 $13.94
------ ------ ------ ------ ------ ------
Investment Activities
Net investment income............ 0.02 0.04 0.07* 0.13* 0.13* 0.14*
Net realized and unrealized gain
(loss)......................... (2.70) 1.52 4.41 (1.31) 1.24 (1.91)
------ ------ ------ ------ ------ ------
Total from Investment Activities..... (2.68) 1.56 4.48 (1.18) 1.37 (1.77)
------ ------ ------ ------ ------ ------
Distributions
Net investment income............ (0.06) (0.07) -- (0.13) (0.13) (0.15)
Net realized gain................ (0.87) (0.02) -- -- -- (0.27)
------ ------ ------ ------ ------ ------
Total Distributions.................. (0.93) (0.09) -- (0.13) (0.13) (0.42)
------ ------ ------ ------ ------ ------
NET ASSET VALUE, END OF PERIOD....... $14.02 $17.63 $16.16 $11.68 $12.99 $11.75
====== ====== ====== ====== ====== ======
- ----------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
Total Return......................... (15.5)% 9.7% 38.4%* (9.1)%* 11.7%* (12.8)%*
Ratio of Expenses to Average Net Assets 1.50%+ 1.50% 1.50%+* 1.50%* 1.50%* 1.50%*
Ratio of Net Investment Income
to Average Net Assets............ 0.15%+ 0.38% 0.81%+* 1.07%* 1.03%* 1.10%*
Portfolio Turnover Rate.............. 41.6%+ 57.4% 71.8%+ 38.0% 56.3% 44.0%
Net Assets, End of Period (in thousands) $376,760 $503,442 $329,001 $166,362 $166,819 $136,660
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
++ The fund's fiscal year-end was changed to October 31.
* Excludes expenses in excess of a 1.50% voluntary expense limitation in
effect through December 31, 1993.
+ Annualized.
19
<PAGE>
- --------------------------------------------------------------------------------
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
T. Rowe Price
- -------------
INTERNATIONAL DISCOVERY FUND
APRIL 30, 1995
FOR YIELD, PRICE, LAST TRANSACTION,
AND CURRENT BALANCE, 24 HOURS,
7 DAYS A WEEK, CALL:
1-800-638-2587 toll free
625-7676 Baltimore area
FOR ASSISTANCE WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132 toll free
625-6500 Baltimore area
T. ROWE PRICE
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distri-
bution only to shareholders and to
others who have received a copy of
the prospectus of the T. Rowe Price
International Discovery Fund.
T. Rowe Price
Invest With Confidence/(R)/
IDF
