<PAGE>
Annual Report
International
Stock Fund
October 31, 1997
T. Rowe Price
<PAGE>
Report Highlights
- -------------------------------------
International Stock Fund
. Overall returns from international stock markets trailed U.S. stocks for the
12 months ended October 31, 1997.
. The fund's underweighting in Japan helped it surpass the EAFE benchmark for
the year, but higher exposure to other Asian markets dampened performance
versus the Lipper peer group.
. For the fiscal year, the fund generated a respectable 7.90% return, but most
of the gain occurred during the first six months.
. Your fund focused heavily on Europe where we continued to find attractive
stocks at reasonable valuations.
. The portfolio structure should provide investors with a balance between
established markets and several less-developed regions with growth potential.
<PAGE>
Fellow Shareholders
The year ended October 31, 1997, was one of two quite separate halves for the
international investor. In the first half most markets performed well, led by
the U.S. where the S&P 500 kept advancing to new highs. However, as the summer
progressed there was a growing realization that a number of economies in the
emerging markets of Southeast Asia had become overextended, which led to heavy
selling in the region that spilled over to international stock markets.
Performance Comparison
<TABLE>
<CAPTION>
Periods Ended 10/31/97 6 Months 12 Months
- -------------------------------------------------
<S> <C> <C>
International Stock Fund 1.80% 7.90%
.................................................
MSCI EAFE Index 3.15 4.92
.................................................
Lipper International
Funds Average 3.82 10.39
.................................................
</TABLE>
The last 12 months were disappointing for overseas stock markets, and the
returns of the International Stock Fund were again behind the U.S. market. Over
the final six months, the fund's return of 1.80% was also behind the 3.15%
return of the Morgan Stanley Capital International Europe, Australasia and Far
East (MSCI EAFE) Index. However, over the fund's fiscal year, its return was
significantly ahead of the index.
For the 12-month period, fund performance against the index was significantly
helped by an underweighting in Japan where the market performed poorly in U.S.
dollars. Another positive contribution came from our position in Latin America,
which did well over this period and is not part of the MSCI EAFE Index. During
the past six months, the fund lagged the index due to its positions in emerging
markets and moderately adverse stock selection.
Fund returns over the fiscal year were behind the Lipper peer group of
international funds. The explanation here lies in our moderately higher
position in the markets of Southeast Asia, which did very poorly in recent
months. Also, a number of our favorite growth stocks fell behind the indices
after a long period of outperformance. Our peers tend to focus more on recovery
stocks and cyclical situations, many of which have performed strongly this year.
1
<PAGE>
The U.S. market continued to be driven by strong corporate earnings and, with
inflation well under control, by stable interest rates. Overseas the economic
picture was not quite as positive, but the stock markets of Europe performed
well at the beginning of the year. There was a powerful bull run in the markets
of Latin America.
- ------------------
Market Performance
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Local Local Currency U.S.
Ended 10/31/97 Currency vs. U.S. Dollars Dollars
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
France 2.98% 1.40% 4.42%
................................................................................
Germany 7.32 0.61 7.98
................................................................................
Hong Kong - 17.50 0.22 - 17.32
................................................................................
Italy 18.75 1.29 20.28
................................................................................
Japan - 10.49 5.52 - 5.55
................................................................................
Mexico 23.89 - 5.42 17.17
................................................................................
Netherlands 16.27 0.38 16.71
................................................................................
Singapore - 14.87 - 8.05 - 21.73
................................................................................
Sweden 11.74 4.83 17.13
................................................................................
Switzerland 11.32 5.52 17.47
................................................................................
United Kingdom 10.44 3.35 14.14
................................................................................
Source: FAME Information Services, Inc.; using MSCI indices.
</TABLE>
In the emerging markets of Southeast Asia, problems grew increasingly apparent
during the past few months. The principal culprit was Thailand where there has
been imprudent bank lending and excessive real estate development. A weak
government, dogged by constant changes in leadership, proved unable to handle
the mounting crisis, resulting in a collapsing stock market. At first, the
problem seemed confined to Thailand, but attention soon shifted to a number of
other economies in the region where rapid growth looked unsustainable given the
similar pattern of indebtedness.
Thus, the last six months have seen a savage bear market take hold in Asia, and
as the ripples spread to more established markets such as Tokyo and Wall Street,
investors questioned the impact of these developments on Japanese and U.S.
multinationals operating in the area. Europe was also caught up in the
turbulence, but the most spectacular declines occurred in Latin America, which
somewhat belatedly was dragged down by the widening loss of confidence in
emerging markets.
Turning to currency markets, the dollar has been strong against most overseas
currencies since the beginning of the year, dampening returns to U.S. investors,
but has turned in a mixed performance over the last
2
<PAGE>
three months. European currencies picked up, with a particularly strong
performance from the British pound, but the minor Asian currencies continued to
slip. Even the yen has weakened recently against the dollar despite Japan's
ever-widening current account surplus.
INVESTMENT REVIEW
Europe
In contrast with the turbulence of Asia, the economies of Europe made steady
progress over the last six months. The U.K. continued to lead the way with
strong consumer expenditure driving the service sector and a surprisingly
resilient performance turned in by exporters. The new Labour government granted
the Bank of England independence to set interest rates so that monetary policy
should now be based on controlling inflation over the longer term rather than on
political expediency. Seizing its new mandate with vigor, the Bank raised base
rates four times during the summer in an effort to rein in an economy with the
potential to overheat even though inflation is still moderate. This in turn has
supported sterling, recently the strongest of the major currencies.
A strong currency and rising interest rates would usually have been enough to
unsettle the U.K. stock market, and the turmoil in Asia certainly did not help.
Nevertheless, British stocks held up well in dollar terms. As investor
attention focused on the possibility of slower economic growth, our bias toward
growth stocks and smaller companies was justified as cyclicals and manufacturing
stocks sold off sharply.
[PIE CHART APPEARS HERE]
<TABLE>
<CAPTION>
GEOGRAPHICAL DIVERSIFICATION
<S> <C>
Far East 7%
Latin America 7%
Japan 21%
Europe 62%
Other and Reserves 3%
</TABLE>
Elsewhere in Europe, there are signs that the major economies have survived
the stranglehold of tight fiscal policies as governments struggled to
keep their deficits in line with the Maastricht convergence criteria. Helped by
weak currencies and loose monetary policies, economies are showing tentative
signs of
3
<PAGE>
recovery, particularly in the export sector. Germany is typical here. Earlier
this year German unemployment hit record levels, and it looked as though even
the Germans, always at the vanguard of European integration, would fail to
meet the stringent criteria required to join the European Monetary Union (EMU).
In fact, the German budget is in surplus and any weakness is entirely due to the
problems of the old East Germany. Therefore, progress depends on structural
improvement in the east, a long-term process. The fiscal position would also
improve if the government could agree on tax reform, but the corporate sector is
at least seeing a recovery in profitability, and the stock market has done well.
THE STOCK MARKETS OF CONTINENTAL EUROPE . . .
PERFORMED REASONABLY WELL OVER THE LAST SIX MONTHS . . .
In France the picture is similar with high unemployment, but the trade account
is in surplus and inflation remains low. France also intends to be a founding
member of the European Monetary Union, and there is little room for relaxation
of economic policy. Even the new left-wing government under Monsieur Jospin
realizes that EMU ambitions must prevail, and the outlook is definitely a little
brighter than it was six months ago. Italy has come through another of its
political crises with Mr. Prodi facing down a revolt of his Communist governing
partners to pass a budget that looked remarkably sound by Italian standards.
There is rising confidence that Italy can improve on its record of government
overspending and looks to be an increasingly likely candidate to join EMU in the
first round.
The stock markets of Continental Europe also performed reasonably well over the
last six months and, as in the U.K., stock prices in general held up better than
in Asia during the turbulence of October. As can be seen in the table on page 2,
they forged ahead in U.S. dollar terms over the last six months, with double-
digit returns from the U.K., Switzerland, and the Netherlands, all of which are
well represented in your portfolio.
Another feature livening up market sentiment was a wave of mergers and
acquisitions as corporations sought to position themselves better for an
integrated Europe and to compete on a wider global scale. In terms of size, one
of the largest was a $32 billion merger between the Anglo Dutch publisher Reed
Elsevier and its German Dutch rival Wolters Kluwer, which has long been in the
works and was finally announced. Reed Elsevier is becoming the world's main
provider of
4
<PAGE>
specialist professional information -- "must-have" data for lawyers,
accountants, and scientists. Wolters Kluwer is the biggest legal publisher in
Germany and the Benelux countries, and there will be many synergies from this
combination. Two British drinks and food firms, Guinness and Grand Metropolitan,
finally consummated their marriage as the chairman of LVMH, the French luxury
goods company with a stake in Guinness, finally agreed to terms. Since the two
firms have a strong portfolio of brands that complement each other, distribution
and marketing costs should fall. Europe's financial services industry is also
consolidating, with a merger between the Swiss insurance company Zurich Group
and the British conglomerate BAT, an important merger between Swedish bank
Nordbanken and Finland's Merita, and also a bid by Italian insurer Assicurazioni
Generali for Assurances Generales de France, France's third-largest insurer.
Far East
In Japan, which accounted for only 21% of fund assets, the economic picture has
changed quite dramatically over the last six months. At the beginning of the
year, growth was robust as the yen's weakness of 1996 fueled an export boom and
a strong service sector. In April, the government raised the sales tax from 3%
to 5%, which had the effect of causing an anticipatory consumer boom in March
followed by a sharp downturn in April. With more than half of Japan's GDP
accounted for by consumer spending, the economy never recovered and the trend
was not helped by the depressed housing sector and by weak capital investment.
The only bright spot was the export sector, with sales of electronic equipment
and vehicles to the U.S. and Europe particularly strong. Reflecting the dire
state of the domestic economy, imports have stagnated and the trade surplus rose
over 50% in yen terms in the six months through September. Japan is now a
significant overseas creditor and its current account, supported by a net
interest surplus, grew even more sharply.
Despite the positives of a strong trade position and minimal inflation, the
government faces a considerable policy dilemma as it contemplates a very weak
economy. Monetary policy is already very loose and Japanese government bond
yields recently dipped below 2%. The economy has been awash with liquidity for
some time, and any further weakening of the yen will stimulate exports.
Moderate currency depreciation is probably a secret hope of Japan's
policymakers, but the trade surplus with the U.S. is already at levels that
historically have triggered loud complaints from Washington. A more stimulatory
fiscal
5
<PAGE>
policy is a reasonable option, but conservatism holds sway in the Ministry of
Finance as evidenced by the sales tax increase last spring.
With this uncertainty, it is not surprising that the Japanese stock market
turned in a poor performance over the last six months. Corporations exposed to
the domestic economy were particularly weak but, in sharp contrast, the
multinationals fared much better.
OUR STRATEGY IN THE TOKYO MARKET CONTINUED TO FAVOR THE EXPORT AND TECHNOLOGY
SECTORS.
Our strategy in the Tokyo market continued to favor the export and technology
sectors. Stocks such as NEC (communications and computers), Sony (consumer
electronics and media), and Canon (cameras and office equipment) remain among
our largest positions. In contrast, the portfolio has no exposure to bank
stocks -- the largest sector in the index itself -- where valuations remain
excessive given the problems of their loan books. Banking failures are likely
before the situation begins to improve and, with a high weighting in the
financial sector, the market as a whole is unlikely to perform well until these
problems are resolved.
Elsewhere in the Pacific, as noted, the economic turmoil that began in Thailand
rapidly spread to the "junior tigers" of the region. Economies such as
Indonesia, Malaysia, and the Philippines each share a common pattern of
overlending to infrastructure and industrial development, which became
vulnerable as the export boom was not sustained. Even traditional, commodity-
based exports began to falter, and there was a round of competitive devaluations
either by choice or imposed by speculative pressure. Turning to Northeast Asia,
South Korea, once admired as one of the original "tiger" economies, hit trouble
when its export of electronic chips proved particularly vulnerable to the
slowdown in U.S. and European demand. Corporate leverage here has been
excessive, with a government joined hand-in-hand with the banks in supporting a
number of smaller conglomerates that should have been allowed to fail long ago.
Some of these corporations have now filed for bankruptcy, but there is probably
worse to come.
Portfolio exposure to these minor markets of the region is limited, but
the loss of confidence spread to the older tigers such as Singapore and Hong
Kong, where the fundamentals are much more sound. Hong Kong's dollar is
formally pegged to the U.S. dollar and this link survived a ferocious
speculative attack in October. So far it has held, but
6
<PAGE>
the cost has been huge increases in domestic interest rates that, in turn, have
hit the real estate and stock markets. In Singapore, the currency is also backed
by substantial reserves, but stock prices have fallen just as far as in Hong
Kong.
- ------------------------
Industry Diversification
- ----------------------------------------------
<TABLE>
<CAPTION>
Percent of Percent of
Net Assets Net Assets
4/30/97 10/31/97
- ----------------------------------------------
<S> <C> <C>
Services 26.2% 26.2%
..............................................
Consumer Goods 17.1 19.7
..............................................
Finance 16.5 16.6
..............................................
Capital Equipment 12.8 13.7
..............................................
Energy 10.0 11.7
..............................................
Materials 8.1 5.4
..............................................
Multi-industry 3.8 3.1
..............................................
All Other 0.2 0.2
..............................................
Reserves 5.3 3.4
- ----------------------------------------------
Total 100.0% 100.0%
</TABLE>
Latin America
The Latin American stock markets performed extremely well at the beginning of
the year but, not surprisingly, they were caught up in October's upheaval in the
emerging markets. This is frustrating for those watching their steady economic
renaissance because, in many ways, these developing economies are in better
shape than their counterparts in Asia. For example, the government of Brazil
has demonstrated a strong political will to protect the currency even though
this may push the economy into recession. President Cardoso has orchestrated a
strong campaign to defend the real through aggressive intervention on the
foreign exchange markets and a substantial increase in overnight interest rates.
Consumer expenditure in Brazil was already weak even ahead of the hike in
interest rates, but at least the slowing economy has pushed inflation down to
under 5% -- a remarkable achievement for this country. For the foreign
investor, one of the most important developments in Brazil is the continuing
privatization program valued at $70 billion over the next three years. Clearly
this is ambitious, but the government has indicated this program will go ahead
despite the pressure on its currency and a very unsettled stock market.
The prospects for the stock market depend on how quickly confidence returns and
interest rates fall. Much hinges on what damage is done to the economy, but the
banking system is in better shape than it has
7
<PAGE>
been for many years. Brazil remains the core of our Latin American strategy, and
our exposure is focused on the large utilities such as Telecomunicacoes
Brasileiras, which are at the center of the reform and privatization program.
Mexico has already experienced a painful readjustment process following the peso
devaluation at the end of 1994. Since then, the economy has become much stronger
with foreign participation in the banking industry and wider integration with
the U.S. and Canada under NAFTA. The trade account is now in surplus, and even
the current account deficit is less than 2% of the GDP. With inflation falling
to under 15% in 1997 and consumers beginning to regain confidence, the economy
could well be entering a period of sustainable growth.
Argentina, too, was buffeted by the sell-off in October but the peg linking the
Argentine peso to the U.S. dollar seems to have held. There is strong domestic
political support for this link, which has helped reduce inflation to a low
level. With the Argentine economy now linked with that of Brazil, a recession to
the north would clearly have a negative impact. However, as the country's
banking system has been considerably strengthened, we expect the peso link to
the dollar to be maintained and the economy to continue its steady improvement.
INVESTMENT POLICY AND OUTLOOK
The year under review has been disappointing for the international investor, and
the volatile conditions of September and October have been particularly trying.
Despite the sound fundamentals of the U.S. economy, even Wall Street was caught
up in this turbulence while emerging markets were hit particularly hard.
IT IS IMPORTANT
TO TRY TO LOOK THROUGH THIS
PERIOD . . . AND SEE HOW WORLD
ECONOMIES MIGHT DEVELOP FROM HERE.
It is important to try to look through this period of stock market turbulence
and see how world economies might develop from here. In Europe, which accounts
for 62% of the fund's portfolio, we have seen an encouraging picture of
improving economic growth, rising exports, and currencies that have now
stabilized against the U.S. dollar. Valuations in Europe look reasonable, and
there is the added interest of corporate restructuring as companies position
themselves for European Monetary Union. As noted, we have already seen activity
in this area and expect the trend to continue as management increasingly
recognizes the importance of shareholder value. With a pickup in
8
<PAGE>
economic growth, corporate restructuring, and a benign interest rate
environment, Europe in many ways looks similar to the U.S. economy several years
ago. If this is the case, maintaining a large position in Europe seems sensible.
Turning to the Far East, clearly the prospects are less certain, and it will
take some time for the less-developed economies of Asia to put themselves back
on a sounder footing. The important point here is that stock markets always tend
to overdo things, and taking a longer-term view, attractive valuations are
beginning to emerge. This is especially true in Hong Kong, now closely
integrated with the growth potential of mainland China. Despite the volatility
of the region's stock markets, China has made huge progress and seems on course
to take over at some point from Japan as the driving force of the region. Japan
is still the largest economy in the Pacific, but its economy is clearly
struggling at the moment. However, unlike many of the smaller economies of the
region, it at least has a strong current account surplus and substantial foreign
exchange reserves. The stock market there lists some of the best-managed
companies in the world, and we believe it is right to take advantage of current
weakness by adding to our favorites.
In Latin America the markets will remain volatile, but again one cannot ignore
the economic achievements of these countries. Governments there seem committed
to the right policies for the future, and greater political stability provides a
firm platform for implementing them.
Summing up, the portfolio structure today gives the investor a reasonable
balance between the established economies overseas where we can find quality
companies at reasonable valuations, and less-developed markets where there is
perhaps more potential but at a higher risk. We continue to believe that this
strategy will serve us well in the future.
Respectfully submitted,
/s/ Martin G. Wade
Martin G. Wade
President
November 21, 1997
9
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
- --------------------
Portfolio Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
10/31/97
-----------------------------------------------------------------
<S> <C>
Royal Dutch Petroleum, Netherlands 2.6%
.................................................................
National Westminster Bank, United Kingdom 1.9
.................................................................
Novartis, Switzerland 1.9
.................................................................
Wolters Kluwer, Netherlands 1.8
.................................................................
SmithKline Beecham, United Kingdom 1.7
-----------------------------------------------------------------
Reed International, United Kingdom 1.4
.................................................................
Shell Transport & Trading, United Kingdom 1.3
.................................................................
Elsevier, Netherlands 1.3
.................................................................
Telecomunicacoes Brasileiras, Brazil 1.2
.................................................................
Roche Holdings, Switzerland 1.2
-----------------------------------------------------------------
ING Groep, Netherlands 1.2
.................................................................
Eaux Cie Generale, France 1.2
.................................................................
Nestle, Switzerland 1.2
.................................................................
Glaxo Wellcome, United Kingdom 1.1
.................................................................
Kingfisher, United Kingdom 1.1
-----------------------------------------------------------------
Canon, Japan 1.1
.................................................................
Orkla, Norway 1.0
.................................................................
Total, France 1.0
.................................................................
ABB, Sweden/Switzerland 1.0
.................................................................
Sankyo, Japan 1.0
-----------------------------------------------------------------
Astra, Sweden 0.9
.................................................................
Denso, Japan 0.9
.................................................................
NEC, Japan 0.9
.................................................................
Norsk Hydro, Norway 0.9
.................................................................
Sony, Japan 0.9
-----------------------------------------------------------------
Total 31.7%
</TABLE>
10
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
- ----------------------
Performance Comparison
- --------------------------------------------------------------------------------
This chart shows the value of a hypothetical $10,000 investment in the
fund over the past 10 fiscal year periods or since inception (for funds
lacking 10-year records). The result is compared with a broad-based
average or index. The index return does not reflect expenses, which have
been deducted from the fund's return.
INTERNATIONAL STOCK FUND
-------------------------------------------------------------------------
[LINE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
LIPPER
INTERNATIONAL INTERNATIONAL
DATE MSCI EAFE INDEX FUNDS AVERAGE STOCK FUND
--------------------------------------------------------------------------
<S> <C> <C> <C>
10/87 10,000 10,000 10,000
10/88 12,550 11,830 12,344
10/89 13,604 13,605 14,180
10/90 11,896 13,545 14,792
10/91 12,766 14,650 16,214
10/92 11,119 13,938 15,722
10/93 15,331 18,673 21,056
10/94 16,923 20,730 23,589
10/95 16,911 20,780 23,679
10/96 18,738 23,133 27,201
10/97 19,659 25,884 29,351
</TABLE>
AVERAGE ANNUAL COMPOUND TOTAL RETURN
- --------------------------------------------------------------------------------
This table shows how the fund would have performed each year if its actual
(or cumulative) returns for the periods shown had been earned at a
constant rate.
<TABLE>
<CAPTION>
Periods Ended 10/31/97 1 Year 3 Years 5 Years 10 Years
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
International Stock Fund 7.90% 7.56% 13.30% 11.37%
..........................................................................
</TABLE>
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
11
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
- --------------------
Financial Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 10 Months++ Year
Ended Ended Ended
10/31/97 10/31/96 10/31/95 10/31/94 10/31/93 12/31/92
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 13.47 $ 12.09 $ 12.84 $ 11.74 $ 8.89 $ 9.54
................................................................................................
Investment activities
Net investment income 0.19 0.19 0.18 0.09 0.10 0.14
Net realized and
unrealized gain (loss) 0.86 1.57 (0.19) 1.30 2.75 (0.47)
................................................................................................
Total from
investment activities 1.05 1.76 (0.01) 1.39 2.85 (0.33)
................................................................................................
Distributions
Net investment income (0.18) (0.18) (0.12) (0.09) - (0.16)
Net realized gain (0.20) (0.20) (0.62) (0.20) - (0.16)
................................................................................................
Total distributions (0.38) (0.38) (0.74) (0.29) - (0.32)
................................................................................................
NET ASSET VALUE
End of period $ 14.14 $ 13.47 $ 12.09 $ 12.84 $ 11.74 $ 8.89
------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Total return 7.90% 14.87% 0.38% 12.03% 32.06% (3.47)%
.............................................................................................................................
Ratio of expenses to
average net assets 0.85% 0.88% 0.91% 0.96% 1.01%+ 1.05%
.............................................................................................................................
Ratio of net investment
income to average
net assets 1.33% 1.58% 1.56% 1.11% 1.52%+ 1.49%
.............................................................................................................................
Portfolio turnover rate 15.8% 11.6% 17.8% 22.9% 29.8%+ 37.8%
.............................................................................................................................
Average commission
rate paid $ 0.0019 $ 0.0020 $ - $ - $ - $ -
.............................................................................................................................
Net assets, end of period
(in millions) $ 10,005 $ 8,776 $ 6,386 $ 6,206 $ 3,746 $ 1,950
.............................................................................................................................
</TABLE>
+ Annualized.
++ The fund's fiscal year-end was changed to 10/31.
The accompanying notes are an integral part of these financial statements.
12
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
October 31, 1997
<TABLE>
<CAPTION>
- -----------------------
Statement of Net Assets Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
ARGENTINA 1.0%
<S> <C> <C>
Common Stocks 1.0%
Banco de Galicia Buenos Aires (Class B) ADR (USD) 345,561 $ 8,374
................................................................................
Banco Frances del Rio de la Plata ADR (USD) 351,620 8,659
................................................................................
Perez Companc (Class B) 2,610,227 16,350
................................................................................
Sociedad Comercial del Plata ADR (144a) (USD) 26,537 385
................................................................................
Telecom Argentina Stet (Class B) 485,570 2,429
................................................................................
Telecom Argentina Stet (Class B) ADR (USD) 112,678 2,852
................................................................................
Telefonica de Argentina (Class B) ADR (USD) 598,180 16,824
................................................................................
YPF Sociedad Anonima (Class D) ADR (USD) 1,250,942 40,030
................................................................................
Total Argentina (Cost $81,993) 95,903
........
AUSTRALIA 2.2%
Common Stocks 2.1%
Australia & New Zealand Bank Group 1,224,000 8,539
................................................................................
Australian Gas Light Company 2,728,798 18,231
................................................................................
Boral Limited 2,327,263 6,121
................................................................................
Brambles Industries 271,960 5,229
................................................................................
Broken Hill Proprietary 2,183,836 21,655
................................................................................
Commonwealth Bank of Australia 75,517 868
................................................................................
Commonwealth Bank of Australia, Installment
Receipts, 11/14/97 1,927,700 16,132
................................................................................
Fosters Brewing Group 5,131,000 9,743
................................................................................
John Fairfax Holdings 4,374,000 9,659
................................................................................
Lend Lease 714,642 14,635
................................................................................
National Australia Bank 808,590 11,060
................................................................................
News Corporation 3,284,334 15,729
................................................................................
Publishing & Broadcasting 2,535,850 14,712
................................................................................
St. George Bank 1,576,205 9,548
................................................................................
Tabcorp Holdings 2,378,000 10,904
................................................................................
WMC 1,852,057 6,577
................................................................................
Westpac Bank 2,117,000 12,327
................................................................................
Woodside Petroleum 1,875,000 15,836
................................................................................
207,505
........
Preferred Stocks 0.1%
News Corporation 1,220,138 5,414
................................................................................
</TABLE>
13
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Sydney Harbour Casino Holdings 7,228,000 $ 7,371
................................................................................
12,785
........
Total Australia (Cost $193,611) 220,290
........
BELGIUM 1.2%
Common Stocks 1.2%
Dexia 85,972 9,394
................................................................................
Generale de Banque 68,067 27,842
................................................................................
Generale de Banque, VVPR Strip * 5,601 2
................................................................................
Kredietbank 182,642 76,637
................................................................................
UCB 2,709 9,360
................................................................................
123,235
........
Convertible Bonds 0.0%
Kredietbank, 5.75%, 11/30/03 BEF 38,115,000 2,066
................................................................................
2,066
........
Total Belgium (Cost $77,275) 125,301
........
BRAZIL 3.2%
Common Stocks and Rights 0.4%
Companhia Siderurgica Nacional 252,630,000 9,166
................................................................................
Eletrobras 37,089,553 14,971
................................................................................
Eletrobras ADR (USD) 106,277 2,152
................................................................................
Pao de Acucar GDS (USD) 345,830 6,322
................................................................................
Telecomunicacoes de Sao Paulo * 4,095,886 873
................................................................................
Telecomunicacoes de Sao Paulo, Rights, 11/11/97 * 136,956 0
................................................................................
White Martins 1,645,832 2,762
................................................................................
36,246
........
Preferred Stocks and Rights 2.8%
Banco Bradesco 1,605,494,854 11,942
................................................................................
Banco Itau 16,287,000 6,574
................................................................................
Brahma 18,014,535 11,275
................................................................................
Brasmotor 21,197,000 2,980
................................................................................
Cia Cimento Portland Itau 18,159,000 4,661
................................................................................
Cia Energetica de Sao Paulo ADR (USD)* 156,300 2,931
................................................................................
Cia Energetica Minas Gerais 262,919,692 10,493
................................................................................
Cia Energetica Minas Gerais ADR, Sponsored,
Nonvoting (USD) 435,562 17,314
................................................................................
</TABLE>
14
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Cia Tecidos Norte de Minas 13,940,000 $ 5,183
.................................................................................
Encorpar * 13,940,000 0
.................................................................................
Lojas Americanas 196,273,000 1,602
.................................................................................
Pao de Acucar GDS (USD) 21,100 386
.................................................................................
Petrol Brasileiros 76,019,184 14,136
.................................................................................
Telecomunicacoes Brasileiras ADR (USD) 1,230,133 124,858
.................................................................................
Telecomunicacoes de Minas Gerais (Class B) 44,972,000 5,629
.................................................................................
Telecomunicacoes de Minas Gerais (Class B),
Preference Receipts * 557,804 51
.................................................................................
Telecomunicacoes de Sao Paulo 98,621,744 25,764
.................................................................................
Telecomunicacoes de Sao Paulo, Rights, 11/11/97 * 3,297,673 3
.................................................................................
Telecomunicacoes do Rio de Janeiro 46,020,886 4,383
.................................................................................
Telecomunicacoes do Rio de Janeiro, Rights, 11/11/97 * 1,784,411 17
.................................................................................
Unibanco, Units (Each unit consists of 1 preferred share
and 1 Unibanco Holdings
(Class B) share) * 210,980,000 11,864
.................................................................................
Usiminas 1,255,028 9,107
.................................................................................
Usiminas ADR (USD) 1,223,659 8,872
.................................................................................
280,025
........
Total Brazil (Cost $232,978) 316,271
........
CANADA 0.3%
Common Stocks 0.3%
Alcan Aluminium 574,100 16,294
.................................................................................
Royal Bank of Canada 227,590 12,168
.................................................................................
Total Canada (Cost $18,063) 28,462
........
CHILE 0.5%
Common Stocks 0.5%
Chilectra ADR (144a) (USD) 306,640 7,973
.................................................................................
Chilgener ADS (USD) 248,241 6,764
.................................................................................
Compania Cervecerias Unidas ADS (USD) 160,311 3,908
.................................................................................
Compania de Telecomunicaciones de Chile ADR (USD) 303,195 8,414
.................................................................................
Empresa Nacional de Electricidad de Chile ADR (USD) 449,408 9,044
.................................................................................
Enersis ADS (USD) 260,256 8,588
.................................................................................
Santa Isabel ADR (USD) 185,346 3,429
.................................................................................
Total Chile (Cost $43,599) 48,120
........
</TABLE>
15
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
CHINA 0.3%
<S> <C> <C>
Common Stocks 0.3%
Huaneng Power International (Class N) ADR (USD) * 1,335,000 $29,370
................................................................................
Total China (Cost $25,103) 29,370
.......
CZECH REPUBLIC 0.0%
Common Stocks 0.0%
SPT Telecom 35,764 4,123
................................................................................
Total Czech Republic (Cost $3,397) 4,123
.......
DENMARK 0.3%
Common Stocks 0.3%
Den Danske Bank 138,670 15,657
................................................................................
Tele Danmark (Class B) 60,017 3,526
................................................................................
Unidanmark (Class A) 146,749 9,919
................................................................................
Total Denmark (Cost $16,230) 29,102
.......
FINLAND 0.3%
Common Stocks 0.3%
Nokia (Class A) 325,112 28,657
................................................................................
Total Finland (Cost $7,170) 28,657
.......
FRANCE 8.5%
Common Stocks 8.5%
AXA 379,020 25,955
................................................................................
Accor 64,013 11,919
................................................................................
Alcatel Alsthom 355,944 42,948
................................................................................
Assurances Generales de France 239,884 12,622
................................................................................
Canal Plus 92,330 16,055
................................................................................
Carrefour 54,748 28,569
................................................................................
Cie de St. Gobain 342,828 49,211
................................................................................
Credit Commercial de France 224,564 12,723
................................................................................
Danone 68,250 10,436
................................................................................
Dexia France, Bearer 65,532 6,578
................................................................................
Dexia France, Registered 1998 ++ 76,168 7,645
................................................................................
</TABLE>
16
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Dexia France, Registered 1999 ++ 55,140 $ 5,535
................................................................................
Eaux Cie Generale 1,018,352 118,461
................................................................................
Elf Aquitaine 349,415 43,251
................................................................................
France Telecom * 230,200 8,712
................................................................................
GTM Entrepose 108,850 6,793
................................................................................
Guilbert 103,654 13,531
................................................................................
Havas 87,050 5,735
................................................................................
L'Oreal 34,948 12,384
................................................................................
LVMH 155,500 26,419
................................................................................
Lapeyre 212,150 12,394
................................................................................
Legrand 79,363 14,777
................................................................................
Pathe 61,180 10,977
................................................................................
Pinault Printemps 160,636 73,464
................................................................................
Primagaz 7,718 575
................................................................................
Rexel 1,153 306
................................................................................
Sanofi 466,529 44,321
................................................................................
Schneider 743,032 39,675
................................................................................
Societe Generale 171,134 23,438
................................................................................
Sodexho 59,524 29,688
................................................................................
Television Francaise 395,547 36,824
................................................................................
Total (Class B) 869,654 96,490
................................................................................
Total France (Cost $724,569) 848,411
........
GERMANY 5.3%
Common Stocks and Warrants 4.9%
Allianz 217,630 49,048
................................................................................
Allianz, Warrants, 2/23/98 * 55,000 5,998
................................................................................
Bayer 915,832 32,302
................................................................................
Bayerische Hypotheken und Wechsel Bank 725,517 30,093
................................................................................
Bayerische Vereinsbank 199,797 11,590
................................................................................
Bilfinger & Berger 259,250 9,309
................................................................................
Buderus 16,705 8,102
................................................................................
Commerzbank 354,960 12,046
................................................................................
Deutsche Bank 805,958 52,996
................................................................................
Deutsche Telekom 983,558 18,430
................................................................................
Gehe 934,562 48,794
................................................................................
Hoechst 321,230 12,225
................................................................................
</TABLE>
17
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Hornbach Baumarkt 63,890 $ 1,894
................................................................................
Mannesmann 35,365 14,935
................................................................................
Praktiker 68,435 1,034
................................................................................
Rhoen Klinikum 169,688 16,242
................................................................................
SAP 139,730 40,084
................................................................................
Siemens 587,322 36,150
................................................................................
Veba 1,169,006 65,171
................................................................................
Veba, Warrants, 4/6/98 * 30,698 10,329
................................................................................
Volkswagen 19,186 11,314
................................................................................
488,086
........
Preferred Stocks 0.4%
Fielmann 104,076 2,445
................................................................................
Fresenius 56,550 9,546
................................................................................
Hornbach Holdings 121,630 8,185
................................................................................
Krones 19,980 6,781
................................................................................
SAP 63,959 19,053
................................................................................
46,010
........
Total Germany (Cost $452,081) 534,096
........
HONG KONG 2.5%
Common Stocks 2.5%
China Light & Power 2,151,000 11,323
................................................................................
Dao Heng Bank Group 5,511,000 12,688
................................................................................
First Pacific 20,573,952 12,973
................................................................................
Guoco Group 5,997,000 13,109
................................................................................
Henderson Land Development 1,941,000 10,745
................................................................................
Hong Kong Land Holdings (USD) 13,504,058 30,789
................................................................................
Hutchison Whampoa 8,861,000 61,316
................................................................................
New World Development 12,307,034 43,297
................................................................................
Sun Hung Kai Properties 949,000 6,996
................................................................................
Swire Pacific (Class A) 4,961,500 26,503
................................................................................
Wharf Holdings 11,330,000 23,154
................................................................................
Total Hong Kong (Cost $336,008) 252,893
........
INDIA 0.2%
Common Stocks 0.2%
State Bank of India GDR (USD) 1,042,500 18,765
................................................................................
Total India (Cost $14,751) 18,765
........
</TABLE>
18
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
ITALY 3.3%
Common Stocks 3.3%
Assicurazioni Generali 521,000 $ 11,648
................................................................................
Banca Commerciale Italiana 2,289,000 6,246
................................................................................
Banca Fideuram 1,839,360 7,008
................................................................................
Credito Italiano 14,945,666 39,858
................................................................................
ENI 9,950,855 56,243
................................................................................
Gucci Group (USD) 333,237 12,121
................................................................................
IMI 1,863,507 16,867
................................................................................
Industrie Natuzzi ADR (USD) 382,210 8,552
................................................................................
Italgas 2,340,093 8,432
................................................................................
Mediolanum 1,239,265 20,789
................................................................................
Rinascente 745,400 5,526
................................................................................
Telecom Italia 11,398,445 71,434
................................................................................
Telecom Italia Mobile 17,279,182 63,789
................................................................................
Telecom Italia Mobile, Savings Shares 3,005,345 6,142
................................................................................
Total Italy (Cost $246,834) 334,655
............
JAPAN 20.8%
Common Stocks 20.8%
Advantest 159,600 13,195
................................................................................
Alps Electric 1,498,000 16,803
................................................................................
Amada 2,624,000 13,954
................................................................................
Canon 4,601,000 111,632
................................................................................
Citizen Watch 1,637,000 10,446
................................................................................
DDI 5,030 16,802
................................................................................
Daifuku 512,000 3,837
................................................................................
Daiichi Pharmaceutical 2,917,000 41,446
................................................................................
DaiNippon Screen Manufacturing 2,306,000 18,701
................................................................................
Daiwa House 3,351,000 32,299
................................................................................
Denso 4,071,000 87,948
................................................................................
East Japan Railway 7,877 38,289
................................................................................
Fanuc 640,000 25,845
................................................................................
Hitachi 4,677,000 35,947
................................................................................
Hitachi Zosen 4,012,000 8,834
................................................................................
Honda Motor 307,000 10,331
................................................................................
</TABLE>
19
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Inax 1,209,000 $ 5,264
................................................................................
Ishihara Sangyo Kaisha 1,347,000 2,765
................................................................................
Ito-Yokado 1,096,000 54,458
................................................................................
Kao 2,065,000 28,826
................................................................................
Kawada Industries 400,000 1,187
................................................................................
Kokuyo 1,207,000 28,483
................................................................................
Komatsu 3,252,000 17,375
................................................................................
Komori 1,056,000 19,304
................................................................................
Kumagai Gumi 2,315,000 2,270
................................................................................
Kuraray 2,796,000 25,091
................................................................................
Kyocera 1,418,000 81,180
................................................................................
Makita 1,921,000 26,975
................................................................................
Marui 2,876,000 48,511
................................................................................
Matsushita Electric Industrial 4,468,000 74,993
................................................................................
Mitsubishi 2,926,000 25,042
................................................................................
Mitsubishi Heavy Industries 13,821,000 67,870
................................................................................
Mitsubishi Paper Mills 1,676,000 4,442
................................................................................
Mitsui Fudosan 6,589,000 74,458
................................................................................
Mitsui Petrochemical Industries 1,123,000 4,152
................................................................................
Murata Manufacturing 1,306,000 52,956
................................................................................
NEC 8,016,000 87,920
................................................................................
National House Industrial 691,000 7,521
................................................................................
Nippon Hodo 642,000 3,782
................................................................................
Nippon Steel 17,208,000 35,460
................................................................................
Nippon Telephone & Telecom 3,440 29,155
................................................................................
Nomura Securities 4,244,000 49,369
................................................................................
Pioneer Electronic 1,505,000 24,760
................................................................................
Sangetsu 272,000 4,407
................................................................................
Sankyo 2,907,000 95,894
................................................................................
Sega Enterprises 399,250 9,820
................................................................................
Sekisui Chemical 3,899,000 30,680
................................................................................
Sekisui House 2,374,000 20,318
................................................................................
Seven Eleven Japan 338,000 25,276
................................................................................
Sharp 3,953,000 30,711
................................................................................
Shin-Etsu Chemical 2,376,000 58,043
................................................................................
Shiseido 744,000 10,138
................................................................................
Sony 1,051,000 87,241
................................................................................
</TABLE>
20
<PAGE>
T. Rowe Price International Stock Fund
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Sumitomo 4,839,000 $ 34,579
................................................................................
Sumitomo Electric Industries 6,215,000 82,109
................................................................................
Sumitomo Forestry 1,508,000 10,901
................................................................................
TDK 1,022,000 84,749
................................................................................
Teijin 6,274,000 20,592
................................................................................
Tokio Marine & Fire Insurance 1,246,000 12,424
................................................................................
Tokyo Electronics 570,400 28,437
................................................................................
Tokyo Steel Manufacturing 1,227,000 8,666
................................................................................
Toppan Printing 2,313,000 29,021
................................................................................
Uny 1,250,000 20,253
................................................................................
Yurtec 569,000 3,839
................................................................................
Total Japan (Cost $2,278,351) 2,077,976
..........
MALAYSIA 0.5%
Common Stocks 0.5%
Berjaya Sports Toto 5,099,000 13,920
................................................................................
Commerce Asset Holdings 9,530,596 7,433
................................................................................
Resorts World 3,883,000 6,931
................................................................................
Tanjong 6,993,000 12,377
................................................................................
Time Engineering 4,601,000 1,987
................................................................................
United Engineers 3,698,000 8,764
................................................................................
Total Malaysia (Cost $114,471) 51,412
..........
MEXICO 1.8%
Common Stocks 1.8%
Cemex (Class B) * 1,534,044 6,733
................................................................................
Cemex ADS (USD) * 351,000 2,720
................................................................................
Cemex ADS (144a) (USD) * 1,914,463 14,837
................................................................................
Cifra (Class B) ADR (USD) 1,337,347 2,561
................................................................................
Fomentos Economico Mexicano (Class B) 2,141,684 15,070
................................................................................
Gruma (Class B) * 2,355,108 9,213
................................................................................
Gruma (Class B) ADS (144a) (USD) * 539,554 8,363
................................................................................
Grupo Financiero Banamex (Class B) * 3,536,595 7,001
................................................................................
Grupo Financiero Banamex (Class L) * 144,991 265
................................................................................
Grupo Financiero Bancomer (Class B) GDS (USD) * 72,250 668
................................................................................
Grupo Financiero Bancomer (Class L) * 53,515 21
................................................................................
</TABLE>
21
<PAGE>
T. Rowe Price International Stock Fund
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Grupo Industrial Maseca (Class B) 6,373,007 $ 6,156
................................................................................
Grupo Modelo (Class C) 1,382,316 10,320
................................................................................
Grupo Televisa GDR (USD) * 187,266 5,805
................................................................................
Kimberly-Clark Mexico (Class A) 3,610,309 15,845
................................................................................
Panamerican Beverages (Class A) (USD) 693,742 21,506
................................................................................
Telefonos de Mexico (Class L) ADR (USD) 929,222 40,189
................................................................................
TV Azteca ADR (USD) * 661,700 12,655
................................................................................
Total Mexico (Cost $192,962) 179,928
...........
NETHERLANDS 10.5%
Common Stocks and Warrants 10.5%
ABN Amro Holdings 2,762,748 55,639
................................................................................
Ahold 607,056 15,540
................................................................................
Akzo Nobel 74,504 13,128
................................................................................
Baan Company 215,098 15,234
................................................................................
Baan Company (USD) 200,890 14,087
................................................................................
CSM 865,039 39,476
................................................................................
Elsevier 8,137,290 127,833
................................................................................
Fortis Amev 989,387 38,883
................................................................................
ING Groep 2,719,060 114,140
................................................................................
ING Groep, Warrants, 3/15/01 * 800,732 8,245
................................................................................
Koninklijke PTT Nederland 307,817 11,764
................................................................................
Nutricia 666,240 19,045
................................................................................
Otra 180,960 2,889
................................................................................
Polygram 1,152,874 65,556
................................................................................
Royal Dutch Petroleum 4,825,062 255,233
................................................................................
Unilever 1,429,456 75,982
................................................................................
Wolters Kluwer 1,427,049 175,230
................................................................................
1,047,904
...........
Preferred Stocks 0.0%
ING Groep 70,540 354
................................................................................
354
...........
Total Netherlands (Cost $676,748) 1,048,258
...........
NEW ZEALAND 0.5%
Common Stocks 0.5%
Air New Zealand (Class B) 3,323,372 7,036
................................................................................
</TABLE>
22
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Carter Holt Harvey 1,890,249 $ 3,296
................................................................................
Fletcher Challenge Building 3,024,380 9,133
................................................................................
Fletcher Challenge Energy 1,561,980 7,002
................................................................................
Fletcher Challenge Forests Division 4,391,367 4,238
................................................................................
Fletcher Challenge Paper 1,913,960 3,146
................................................................................
Telecom Corporation of New Zealand 2,461,628 11,925
................................................................................
Tranz Rail Holdings 596,400 2,711
................................................................................
Total New Zealand (Cost $51,765) 48,487
...........
NORWAY 2.0%
Common Stocks 2.0%
Bergesen (Class A) 198,750 5,811
................................................................................
Norsk Hydro 1,584,636 87,437
................................................................................
Orkla (Class A) 1,078,326 99,373
................................................................................
Saga Petroleum (Class B) 314,380 5,587
................................................................................
Total Norway (Cost $116,506) 198,208
...........
PANAMA 0.0%
Common Stocks 0.0%
Banco Latinoamericano de Exportaciones (Class E) (USD) 95,636 3,801
................................................................................
Total Panama (Cost $4,723) 3,801
...........
PERU 0.1%
Common Stocks 0.1%
Credicorp (USD) 227,640 4,083
................................................................................
Telefonica del Peru (Class B) 1,033,003 2,058
................................................................................
Telefonica del Peru (Class B) ADS (USD) 210,866 4,165
................................................................................
Total Peru (Cost $10,175) 10,306
...........
PORTUGAL 0.6%
Common Stocks 0.6%
Jeronimo Martins 896,744 58,644
................................................................................
Total Portugal (Cost $17,687) 58,644
...........
</TABLE>
23
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
RUSSIA 0.1%
Common Stocks 0.1%
Lukoil ADR (USD) 25,000 $ 2,127
................................................................................
Rao Gazprom ADS (USD) 145,810 3,262
................................................................................
Total Russia (Cost $4,025) 5,389
...........
SINGAPORE 0.8%
Common Stocks 0.8%
City Developments 1,074,000 4,501
................................................................................
DBS Land 5,049,000 8,591
................................................................................
Fraser & Neave 1,575,800 8,004
................................................................................
Overseas Chinese Bank 853,200 4,740
................................................................................
Overseas Union Bank 2,343,600 7,812
................................................................................
Singapore Land 4,350,000 12,373
................................................................................
Singapore Press 1,689,640 23,280
................................................................................
United Overseas Bank 2,208,154 12,197
................................................................................
Total Singapore (Cost $143,145) 81,498
...........
SOUTH KOREA 0.1%
Common Stocks 0.1%
Pohang Iron & Steel 14,273 651
................................................................................
Samsung Electronic 203,649 7,998
................................................................................
Total South Korea (Cost $24,938) 8,649
...........
SPAIN 2.1%
Common Stocks 2.1%
Argentaria Banca de Espana 265,674 14,757
................................................................................
Banco Bilbao Vizcaya 472,800 12,643
................................................................................
Banco Popular Espanol 427,676 25,254
................................................................................
Banco Santander 1,221,134 34,207
................................................................................
Centros Comerciales Pryca 367,159 5,830
................................................................................
Empresa Nacional de Electricidad 1,508,050 28,405
................................................................................
Gas Natural 298,791 13,844
................................................................................
Iberdrola 1,880,939 22,498
................................................................................
Repsol 455,740 19,111
................................................................................
</TABLE>
24
<PAGE>
T. Rowe Price International Stock Fund
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Telefonica de Espana 1,348,620 $ 36,805
...............................................................................
Total Spain (Cost $152,679) 213,354
.........
SWEDEN 3.2%
Common Stocks 3.2%
ABB (Class A) 1,886,670 22,041
...............................................................................
Astra (Class B) 5,836,121 90,387
...............................................................................
Atlas Copco (Class B) 1,059,768 31,482
...............................................................................
Electrolux (Class B) 597,613 49,469
...............................................................................
Esselte (Class B) 299,610 6,520
...............................................................................
Granges * 275,121 4,500
...............................................................................
Hennes and Mauritz 1,312,745 53,720
...............................................................................
Nordbanken 764,450 23,985
...............................................................................
Sandvik (Class A) 175,000 5,304
...............................................................................
Sandvik (Class B) 943,470 28,720
...............................................................................
Scribona (Class B) 233,080 3,081
...............................................................................
Total Sweden (Cost $188,893) 319,209
.........
SWITZERLAND 6.1%
Common Stocks 6.1%
ABB 56,740 73,951
...............................................................................
Adecco 140,642 44,696
...............................................................................
Credit Suisse Group 147,785 20,818
...............................................................................
Nestle 82,726 116,564
...............................................................................
Novartis 123,389 193,245
...............................................................................
Roche Holdings * 14,176 124,575
...............................................................................
Schweizerischer Bankverein 153,736 41,337
...............................................................................
Total Switzerland (Cost $391,777) 615,186
.........
THAILAND 0.1%
Common Stocks 0.1%
Advanced Information Service 553,576 2,915
...............................................................................
Siam Cement 293,785 2,449
...............................................................................
Total Thailand (Cost $15,463) 5,364
.........
</TABLE>
25
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
UNITED KINGDOM 18.1%
Common Stocks 18.1%
Abbey National 3,732,700 $ 59,369
..............................................................................
Argos 3,766,848 40,131
..............................................................................
Asda Group 11,776,000 30,624
..............................................................................
BG 3,993,040 17,284
..............................................................................
British Petroleum 2,903,500 42,673
..............................................................................
Cable & Wireless 7,062,050 56,398
..............................................................................
Cadbury Schweppes 5,081,793 51,156
..............................................................................
Caradon 8,411,238 26,813
..............................................................................
Centrica * 3,295,040 4,616
..............................................................................
Compass Group 2,433,000 25,635
..............................................................................
David S. Smith 4,099,120 15,680
..............................................................................
Electrocomponents 2,585,000 20,167
..............................................................................
GKN 504,000 11,289
..............................................................................
Glaxo Wellcome 5,395,710 114,969
..............................................................................
Grand Metropolitan 8,808,780 79,437
..............................................................................
Guinness 7,517,000 67,220
..............................................................................
Heywood Williams Group 1,034,875 4,167
..............................................................................
Hillsdown Holdings 2,471,000 6,965
..............................................................................
John Laing (Class A) 2,220,000 13,613
..............................................................................
Kingfisher 7,868,733 113,271
..............................................................................
Ladbroke Group 5,002,940 22,411
..............................................................................
National Westminster Bank 13,476,780 194,452
..............................................................................
Rank Group 5,442,825 30,409
..............................................................................
Reed International 13,996,860 138,434
..............................................................................
Rio Tinto 3,502,900 45,194
..............................................................................
Rolls Royce 2,669,925 9,586
..............................................................................
Safeway 6,635,920 43,226
..............................................................................
Sears 1,440,000 1,425
..............................................................................
Shell Transport & Trading 18,952,000 134,182
..............................................................................
SmithKline Beecham 17,904,280 169,720
..............................................................................
T & N 5,116,000 21,598
..............................................................................
Tesco 5,467,395 43,778
..............................................................................
Tomkins 15,317,430 78,638
..............................................................................
United News & Media 5,914,430 74,375
..............................................................................
Total United Kingdom (Cost $1,221,662) 1,808,905
...........
</TABLE>
26
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ------------------------------------------------------------------------------
In thousands
<S> <C> <C>
VENEZUELA 0.1%
Common Stocks 0.1%
Compania Anonima Nacional Telefonos de Venezuela
(Class D) ADR (USD) 204,610 $ 8,952
...............................................................................
Total Venezuela (Cost $4,706) 8,952
.........
SHORT-TERM INVESTMENTS 3.2%
Certificates of Deposit 0.6%
Hessische Landesbank-Girozentrale, 6.13%, 4/7/98 $ 9,000,000 8,996
...............................................................................
National Bank of Canada New York, 6.01%, 6/23/98 40,000,000 40,020
...............................................................................
Rabobank Nederland N.V., 6.20%, 4/9/98 15,000,000 14,995
...............................................................................
64,011
.........
Money Market Funds 2.1%
Reserve Investment Fund, Inc., 5.65% 210,239,773 210,240
...............................................................................
210,240
.........
Other 0.5%
First America Bank, BN, 6.15%, 3/27/98 15,000,000 14,998
...............................................................................
Morgan Stanley Group, Floating Rate MTN,
5.989%, 5/18/98 10,000,000 10,035
...............................................................................
SMM Trust, VR Note (144a), 5.656%, 3/26/98 25,000,000 25,000
...............................................................................
50,033
.........
Total Short-term Investments (Cost $324,284) 324,284
.........
</TABLE>
27
<PAGE>
T. Rowe Price International Stock Fund
Value
In thousands
<TABLE>
<CAPTION>
Total Investments in Securities
<S> <C>
99.8% of Net Assets (Cost $8,408,622) $ 9,982,229
Other Assets Less Liabilities 22,941
............
NET ASSETS $10,005,170
------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 131,889
Accumulated net realized gain/loss - net of distributions 344,126
Net unrealized gain (loss) 1,573,862
Paid-in-capital applicable to 707,704,259 shares of $0.01 par
value capital stock outstanding; 2,000,000,000 shares
of the Corporation authorized 7,955,293
............
NET ASSETS $10,005,170
------------
NET ASSET VALUE PER SHARE $ 14.14
-----------
</TABLE>
* Non-income producing
++ Securities contain some restrictions as to public resale -- total of such
securities at year-end amounts to 0.1% of net assets.
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers -- total of such securities at year-end amounts to
0.6% of net assets.
ADR American depository receipt
ADS American depository share
BN Bankers note
BEF Belgian franc
GDR Global depository receipt
GDS Global depository share
MTN Medium-term note
USD U.S. dollar
VR Variable Rate
VVPR Entitles holders to a reduced rate of foreign withholding tax.
The accompanying notes are an integral part of these financial statements.
28
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
Year
Ended
10/31/97
Investment Income
<S> <C>
Income
Dividend (net of foreign taxes of $ 26,165) $188,096
Interest 30,273
..........
Total income 218,369
..........
Expenses
Investment management 67,678
Shareholder servicing 12,116
Custody and accounting 3,747
Prospectus and shareholder reports 648
Registration 436
Legal and audit 37
Directors 25
Miscellaneous 67
..........
Total expenses 84,754
..........
Net investment income 133,615
..........
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 377,784
Foreign currency transactions (12,304)
..........
Net realized gain (loss) 365,480
..........
Change in net unrealized gain or loss
Securities 185,058
Other assets and liabilities
denominated in foreign currencies 472
..........
Change in net unrealized gain or loss 185,530
..........
Net realized and unrealized gain (loss) 551,010
..........
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $684,625
----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
29
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
- ----------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
Year Year
Ended Ended
10/31/97 10/31/96
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 133,615 $ 121,411
Net realized gain (loss) 365,480 120,277
Change in net unrealized gain or loss 185,530 758,308
...........................
Increase (decrease) in net assets from 684,625 999,996
operations ...........................
Distributions to shareholders
Net investment income (118,692) (95,687)
Net realized gain (131,885) (106,311)
...........................
Decrease in net assets from distributions (250,577) (201,998)
...........................
Capital share transactions *
Shares sold 3,077,870 2,646,210
Distributions reinvested 232,168 187,694
Shares redeemed (2,514,652) (1,242,071)
...........................
Increase (decrease) in net assets from capital
share transactions 795,386 1,591,833
...........................
Net Assets
Increase (decrease) during period 1,229,434 2,389,831
Beginning of period 8,775,736 6,385,905
...........................
End of period $10,005,170 $ 8,775,736
---------------------------
*Share information
Shares sold 212,623 204,384
Distributions reinvested 17,059 15,334
Shares redeemed (173,550) (96,325)
...........................
Increase (decrease) in shares outstanding 56,132 123,393
</TABLE>
The accompanying notes are an integral part of these financial statements.
30
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
October 31, 1997
- -----------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price International Funds, Inc. (the corporation) is registered
under the Investment Company Act of 1940. The International Stock Fund (the
fund), a diversified, open-end management investment company, is one of the
portfolios established by the corporation and commenced operations on May
9, 1980.
The accompanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company
industry; these principles may require the use of estimates by fund
management.
Valuation Equity securities 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.
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 amortized 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.
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.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses
are reported on the identified cost basis. Dividend income and
distributions to shareholders are recorded by the fund on the ex-dividend
date. Income and
31
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
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 or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Securities Lending The fund lends its securities to approved brokers to
earn additional income and takes cash and U.S. Treasury securities as
collateral to secure the loans. Collateral is maintained at not less than
100% of the value of loaned securities. At October 31, 1997, the value of
securities on loan was $1,015,297,000. Although the risk is mitigated by
the collateral, the fund could experience a delay in recovering its
securities and a possible loss of income or value if the borrower fails to
return them.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $2,292,514,000 and $1,499,107,000, respectively, for
the year ended October 31, 1997.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of
its taxable income.
For federal income tax purposes, fund distributions included $112,102,000
($0.17 per share) of long-term capital gains, which were paid to
shareholders of record on December 26, 1996. The fund intends to elect to
pass through foreign source income of $127,367,000 and foreign taxes paid
of $23,638,000 for its tax year ended October 31, 1977; the per share
effect of these pass-throughs is $0.18 and $0.03 respectively, based on
fund shares outstanding on October 31, 1997. These amounts may differ from
amounts reported in the accompanying financial statements due to
differences in financial statement and federal income tax reporting
requirements.
32
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
At October 31, 1997, the aggregate cost of investments for federal income
tax and financial reporting purposes was $8,408,622,000, and net unrealized
gain aggregated $1,573,607,000, of which $2,384,913,000 related to
appreciated investments and $811,306,000 to depreciated investments.
NOTE 4 - RELATED PARTY TRANSACTIONS
The fund is managed by Rowe Price-Fleming International, Inc. (the
manager), 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 the manager
provides for an annual investment management fee, of which $6,155,000 was
payable at October 31, 1997. The fee is computed daily and paid monthly,
and consists of an individual fund fee equal to 0.35% of average daily net
assets and a group fee. The group fee is based on the combined assets of
certain mutual funds sponsored by the manager or Price Associates (the
group). The group fee rate ranges from 0.48% for the first $1 billion of
assets to 0.30% for assets in excess of $80 billion. At October 31, 1997,
and for the year then ended, the effective annual group fee rate was 0.32%.
The fund pays a pro-rata share of the group fee based on the ratio of its
net assets to those of the group.
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 approximately $8,902,000 for the year ended October 31, 1997, of
which $796,000 was payable at period-end.
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds
(Spectrum) may invest. Spectrum does not invest in the underlying funds for
the purpose of exercising management or control. Expenses associated with
the operation of Spectrum are borne by each underlying fund to the extent
of estimated savings to it and in proportion to the average daily value of
its shares owned by Spectrum, pursuant to special servicing agreements
between and among
33
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
Spectrum, the underlying funds, T. Rowe Price, and, in the case of T. Rowe
Price Spectrum International, Rowe Price-Fleming International. Spectrum
Growth Fund and Spectrum International Fund held approximately 4.9% of the
outstanding shares of the International Stock Fund at October 31, 1997. For
the year then ended, the fund was allocated $1,272,000 of Spectrum
expenses, $82,000 of which was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve
Funds are offered as cash management options only to mutual funds and other
accounts managed by T. Rowe Price and its affiliates and are not available
to the public. The Reserve Funds pay no investment management fees.
Distributions from the Reserve Funds to the fund for the year ended October
31, 1997, totaled $2,558,000 and are reflected as interest income in the
accompanying Statement of Operations.
During the year ended October 31, 1997, the fund, in the ordinary course of
business, placed security purchase and sale orders aggregating $197,824,000
with certain affiliates of the manager and paid commissions of $589,000
related thereto.
34
<PAGE>
T. Rowe Price International Stock Fund
- --------------------------------------------------------------------------------
- ---------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
The Board of Directors and Shareholders of
T. Rowe Price International Stock Fund
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position
of T. Rowe Price International Stock Fund (one of the portfolios
constituting T. Rowe Price International Funds, Inc., hereafter referred to
as the "Fund") at October 31, 1997, and the results of its operations, the
changes in its net assets and the financial highlights for each of the
fiscal periods presented, in conformity with generally accepted accounting
principles. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the Fund's
management; our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards which
require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at October 31,
1997 by correspondence with custodians and brokers and, where appropriate,
the application of alternative auditing procedures for unsettled security
transactions, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE LLP
Baltimore, Maryland
November 19, 1997
35
<PAGE>
T. Rowe Price Shareholder Services
- --------------------------------------------------------------------------------
Investment Services And Information
KNOWLEDGEABLE SERVICE REPRESENTATIVES
By Phone 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your
distributions.
Automated 24-Hour Services Including Tele*Access(R) and
T. Rowe Price OnLine.
DISCOUNT BROKERAGE*
Individual Investments Stocks, bonds, options, precious metals,
and other securities at a savings over regular commission rates.
INVESTMENT INFORMATION
Combined Statement Overview of your T. Rowe Price accounts.
Shareholder Reports Fund managers' reviews of their strategies and
results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund
results.
Insights Educational reports on investment strategies and financial
markets.
Investment Guides Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing, Personal
Strategy Planner, Retirees Financial Guide, and Retirement Planning
Kit.
*A division of T. Rowe Price Investment Services, Inc. Member
NASD/SIPC.
36
<PAGE>
T. Rowe Price Mutual Funds
- --------------------------------------------------------------------------------
STOCK FUNDS
.................................
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications*
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons**
Real Estate
Science & Technology
Small-Cap Stock***
Small-Cap Value**
Spectrum Growth
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
.................................
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Insured
Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured
Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Government Bond
International Bond
MONEY MARKET FUNDS
.................................
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
.................................
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
.................................
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Formerly the closed-end New Age Media Fund; converted to open-end status on
7/28/97.
** Closed to new investors.
*** Formerly the OTC Fund.
Please call for a prospectus. Read it carefully before you invest or send money.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY.
T. Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
37
<PAGE>
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access(R):
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for
distribution only to shareholders
and to others who have received
a copy of the prospectus of the
T. Rowe Price International Stock Fund.(R)
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. F37-050 10/31/97
