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July 1, 2000
FUND PROFILE
T. ROWE PRICE
Emerging Markets Stock Fund
A stock fund seeking long-term capital growth through investments in developing
countries.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.
TROWEPRICELOGO
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FUND PROFILE
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What is the fund's objective?
The fund seeks long-term growth of capital through investments primarily in
the common stocks of companies located (or with primary operations) in
emerging markets.
What is the fund's principal investment strategy?
Normally, the fund expects to invest substantially all of its assets across
emerging markets in Latin America, Asia, Europe, Africa, and the Middle East.
An emerging market includes any country defined as emerging or developing by
the International Bank for Reconstruction and Development (World Bank), the
International Finance Corporation, or the United Nations.
Countries in which the fund may invest are listed below and others will be
added as opportunities develop:
. Asia: China, Hong Kong, Indonesia, India, Korea, Malaysia, Pakistan,
Philippines, Singapore, Sri Lanka, Taiwan, Thailand, and Vietnam.
. Latin America: Argentina, Belize, Brazil, Chile, Colombia, Mexico, Panama,
Peru, and Venezuela.
. Europe: Croatia, Czech Republic, Estonia, Greece, Hungary, Latvia,
Lithuania, Poland, Romania, Russia, Slovakia, Slovenia, and Turkey.
. Africa and the Middle East: Botswana, Egypt, Israel, Jordan, Mauritius,
Morocco, Nigeria, South Africa, Tunisia, and Zimbabwe.
Selection of common stocks reflects a growth style. Rowe Price-Fleming
International, Inc. ("Price-Fleming") employs in-depth fundamental research
in an effort to identify companies capable of achieving and sustaining
above-average, long-term earnings growth. We seek to purchase such stocks at
reasonable prices in relation to present or anticipated earnings, cash flow,
or book value, and valuation factors often influence our allocations among
large-, mid-, or small-cap shares.
While we invest with an awareness of the global economic backdrop and our
outlook for individual countries, bottom-up stock selection is the focus of
our decision-making. Country allocation is driven largely by stock selection,
though we may limit investments in markets that appear to have poor overall
prospects.
In selecting stocks, we generally favor companies with one or more of the
following characteristics:
. leading market position;
. attractive business niche;
. strong franchise or natural monopoly;
. technological leadership or proprietary advantages;
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. seasoned management;
. earnings growth and cash flow sufficient to support growing dividends;
and
. healthy balance sheet with relatively low debt.
Normally, the fund invests primarily (at least 65% of total assets) in common
stocks. To a lesser extent, the fund may also purchase other securities,
including futures and options, in keeping with the fund's objective.
The fund may sell securities for a variety of reasons, such as to secure
gains, limit losses, or redeploy assets into more promising opportunities.
Further information about the fund's investments, including a review of
market conditions and fund strategies and their impact on performance, is
available in the annual and semiannual shareholder reports. To obtain free
copies of any of these documents, call 1-800-638-5660.
What are the main risks of investing in the fund?
As with all stock funds, this fund's share price can fall because of weakness
in one or more of its primary equity markets, a particular industry, or
specific holdings. Stock markets can decline for many reasons, including
adverse political or economic developments, changes in investor psychology,
or heavy institutional selling. The prospects for an industry or company may
deteriorate because of a variety of factors, including disappointing earnings
or changes in the competitive environment. In addition, our assessment of
companies held in the fund may prove incorrect, resulting in losses or poor
performance even in rising markets.
Funds that invest overseas generally carry more risk than funds that invest
strictly in U.S. assets. Even investments in countries with highly developed
economies are subject to significant risks. Some particular risks affecting
this fund include the following:
. Currency risk This refers to a decline in the value of a foreign currency
versus the U.S. dollar, which reduces the dollar value of securities
denominated in that currency. The overall impact on a fund's holdings can be
significant and long-lasting depending on the currencies represented in the
portfolio, how each one appreciates or depreciates in relation to the U.S.
dollar, and whether currency positions are hedged. Under normal conditions,
the fund does not engage in extensive foreign currency hedging programs.
Further, exchange rate movements are unpredictable and it is not possible to
effectively hedge the currency risks of many developing countries.
. Emerging market risk Investments in emerging markets are subject to abrupt
and severe price declines. The economic and political structures of
developing nations, in most cases, do not compare favorably with the U.S. or
other developed countries in terms of wealth and stability, and their
financial mar-
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kets often lack liquidity. These economies may rely heavily on particular
industries and be more vulnerable to the ebb and flow of international trade,
trade barriers, and other protectionist or retaliatory measures. Some
countries have legacies of hyperinflation and currency devaluations.
Investments in countries or regions that have recently begun moving away from
central planning and state-owned industries toward free markets should be
regarded as speculative. While some countries have made progress in economic
growth, liberalization, fiscal discipline, and political and social
stability, there is no assurance these trends will continue. Some countries
have histories of instability and upheaval that could cause their governments
to act in a detrimental or hostile manner toward private enterprise or
foreign investment. Significant external risks currently affect some emerging
countries.
Governments in many emerging market countries participate to a significant
degree in their economies and securities markets. The volatility of emerging
markets may be heightened by the actions of a few major investors. For
example, substantial increases or decreases in cash flows of mutual funds
investing in these markets could significantly affect local stock prices and,
therefore, fund share prices. These factors make investing in such countries
significantly riskier than in other countries and any one of them could cause
a fund's share price to decline.
. Other risks of foreign investing Other risks result from the varying stages
of economic and political development, the differing regulatory environments,
trading days, and accounting standards, and higher transaction costs of
non-U.S. markets. Investments outside the United States could be subject to
actions such as capital or currency controls, nationalizing a company or
industry, expropriating assets, or imposing punitive taxes which would have
an adverse effect on the fund.
. Futures/options risk To the extent the fund uses futures and options, it is
exposed to additional volatility and potential losses.
As with any mutual fund, there can be no guarantee the fund will achieve its
objective.
. The fund's share price may decline, so when you sell your shares, you may
lose money. An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency.
How can I tell if the fund is appropriate for me?
Consider your investment goals, your time horizon for achieving them, and
your tolerance for the inherent risk of common stock and emerging market
investments. Your decision should take into account whether you have any
other foreign stock investments. If you want to further diversify a portfolio
of
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U.S. and developed-country foreign stocks, and can accept the additional
risks of investing in developing nations in an effort to achieve potentially
greater capital appreciation, the fund could be an appropriate part of your
overall investment strategy.
The fund can be used in both regular and tax-deferred accounts, such as IRAs.
. The fund should not represent your complete investment program or be used
for short-term trading purposes.
How has the fund performed in the past?
The bar chart showing calendar year returns and the average annual total
return table indicate risk by illustrating how much returns can differ from
one year to the next and over time. Fund past performance is no guarantee of
future returns.
The fund can also experience short-term performance swings, as shown by the
best and worst calendar quarter returns during the years depicted in the
chart.
LOGO
<TABLE>
<CAPTION>
Calendar Year Total Returns
"96" "97" "98" "99"
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<S> <C> <C> <C>
11.82 1.23 -28.75 87.44
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</TABLE>
Quarter ended Total return
Best quarter 12/31/99 44.10%
Worst quarter 9/30/98 -25.20%
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<TABLE>
Table 1 Average Annual Total Returns
<CAPTION>
Periods ended 06/30/2000
/ //Since //i//nception/
1 year 5 years (03/31/1995)
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<S> <C> <C> <C>
Emerging Markets Stock
Fund 37.44% 7.55% 9.24%
MSCI Emerging Markets
Free Index 9.47 0.99 2.86
Lipper Emerging Markets 15.81 2.93 4.70
Funds Average/ /
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</TABLE>
These figures include changes in principal value, reinvested dividends, and
capital gain distributions, if any.
What fees or expenses will I pay?
The fund is 100% no load. The fund charges a 2% redemption fee, payable to
the fund, on shares purchased and held less than one year. There are no other
fees or charges to buy or sell fund shares, reinvest dividends, or exchange
into other T. Rowe Price funds. There are no 12b-1 fees.
<TABLE>
Table 2 Fees and Expenses of the Fund
<CAPTION>
Shareholder fees (fees paid directly from your investment)
Redemption fee (for shares held less than one year) 2%
Annual fund operating expenses
(expenses that are deducted from fund assets)
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<S> <C>
Management fee 1.07%/a/
Other expenses 0.69%
Total annual fund operating expenses 1.76%/a/
Fee waiver/reimbursement 0.01%
Net expenses 1.75%
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</TABLE>
/a/Price-Fleming is contractually obligated to waive its fees and bear any
expenses through October 31, 1998, that would cause the fund's ratio of
expenses to average net assets to exceed 1.75%. Effective November 1, 1998,
Price-Fleming agreed to extend this limitation through October 31, 1999.
Effective November 1, 1999, Price-Fleming agreed to extend this limitation
through October 31, 2001. Fees waived or expenses paid or assumed under these
agreements are subject to reimbursement to Price-Fleming by the fund whenever
the fund's expense ratio is below 1.75%. However, no reimbursement will be
made after October 31, 2000 (for the first agreement); or October 31, 2001
(for the second agreement); or October 31, 2003 (for the third agreement); or
if it would result in the expense ratio exceeding 1.75%. Any amounts
reimbursed have the effect of increasing fees otherwise paid by the fund.
Example. The following table gives you a rough idea of how expense ratios
may translate into dollars and helps you to compare the cost of investing in
this fund with that of other funds. Although your actual costs may be higher
or lower, the table shows how much you would pay if operating expenses remain
the same, the expense limitation currently in place is not renewed, you
invest $10,000, you earn a 5% annual return, and you hold the investment for
the following periods:
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<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
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<S> <C> <C> <C>
$178 $550 $946 $2,053
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</TABLE>
Who manages the fund?
The fund is managed by Rowe Price-Fleming International, Inc., a joint
venture between T. Rowe Price Associates, Inc. ("T. Rowe Price") and the
London-based Robert Fleming Holdings, Ltd. ("Flemings"). Flemings
includes Robert Fleming and Jardine Fleming. Established in 1979,
Price-Fleming manages investments for individual and institutional accounts,
including 12 no-load mutual funds sold directly to the public. On April 11,
2000, T. Rowe Price entered into an agreement with Flemings and certain of
its subsidiaries (collectively "Fleming Companies") to purchase the Fleming
Companies' 50% interest in Price-Fleming. As a result of this purchase,
shareholders will be asked to approve a new investment management agreement
for the fund.
The fund has an Investment Advisory Group that has day-to-day responsibility
for managing the portfolio and developing and executing its investment
program. The advisory group consists of John R. Ford, who joined Price-
Fleming in 1982 and has worked in research and portfolio management since
that time; Christopher D. Alderson, who joined Price-Fleming in 1988 and has
14 years of experience in research and portfolio management; Frances Dydasco,
who joined Price-Fleming in 1996 and has 11 years of experience in research
and financial analysis; Mark J.T. Edwards, who joined Price-Fleming in 1987
and has 18 years of experience in financial analysis; and Benedict R.F.
Thomas, who joined Price-Fleming in 1988 and has 11 years of portfolio
management experience.
Note: The following questions and answers about buying and selling shares and
services do not apply to employer-sponsored retirement plans. If you are a
participant in one of these plans, please call your plan's toll-free number for
additional information.
How can I purchase shares?
Fill out the New Account Form and return it with your check in the postpaid
envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
or transfers to minors). The minimum subsequent investment is $100 ($50 for
IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
open an account by bank wire, by exchanging from another T. Rowe Price fund,
or by transferring assets from another financial institution.
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How can I sell shares?
You may redeem or sell any portion of your account on any business day.
Simply write to us or call. You can also access your account at any time via
Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
entire family of domestic and international funds. Restrictions may apply in
special circumstances, and some redemption requests need a signature
guarantee. A $5 fee is charged for wire redemptions under $5,000.
When will I receive income and capital gain distributions?
The fund distributes income and net capital gains, if any, at year-end. For
regular accounts, income and short-term gains are taxable at ordinary income
rates, and long-term gains are taxable at the capital gains rate.
Distributions are reinvested automatically in additional shares unless you
choose another option, such as receiving a check. Distributions paid to IRAs
and employer-sponsored retirement plans are automatically reinvested.
What services are available?
A wide range, including but not limited to:
. retirement plans for individuals and large and small businesses;
. automated information and transaction services by telephone or computer;
. electronic transfers between fund and bank accounts;
. automatic investing and automatic exchange;
. brokerage services; and
. asset manager accounts.
T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F05-035
T. Rowe Price Investment Services, Inc., Distributor
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