T. Rowe Price
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Supplement to Statement of Additional Information
for the International Equity Funds dated March 1, 1997
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The following paragraph will be added under Portfolio Management
Practices:
Money Market Reserves
It is expected that the Funds will invest their cash
reserves primarily in one or more money market funds established
for the exclusive use of the T. Rowe Price family of mutual funds
and other clients of T. Rowe Price and Price-Fleming. Currently,
two such money market funds are in operation--Reserve Investment
Fund ("RIF") and Government Reserve Investment Fund ("GRF"), each
a series of the Reserve Investment Funds, Inc. (The Prime Reserve
and U.S. Treasury Money Funds will not purchase shares of either
fund, and the GNMA and U.S. Treasury Intermediate and U.S.
Treasury Long-Term Funds can only purchase shares of GRF.)
Additional series may be created in the future. These funds were
created and operate under an Exemptive Order issued by the
Securities and Exchange Commission (Investment Company Act Release
No. IC-22770, July 29, 1997).
Both funds must comply with the requirements of Rule 2a-7
under the Investment Company Act of 1940 governing money market
funds. The RIF invests at least 95% of its total assets in prime
money market instruments receiving the highest credit rating. The
GRF invests primarily in a portfolio of U.S. government-backed
securities, primarily U.S. Treasuries, and repurchase agreements
thereon.
The RIF and GRF provide a very efficient means of managing
the cash reserves of the Funds. While neither RIF or GRF pay an
advisory fee to the Investment Manager, they will incur other
expenses. However, the RIF and GRF are expected by T. Rowe Price
to operate at very low expense ratios. The Funds will only invest
in RIF or GRF to the extent it is consistent with each Fund's
objective and program.
Neither fund is insured or guaranteed by the U.S.
government, and there is no assurance they will maintain a stable
net asset value of $1.00 per share.
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The date of this supplement is October 3, 1997.
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C01-048 10/3/97
