<PAGE>
T. Rowe Price
--------------------------------------------------------------------------------
Annual Report
Japan Fund
--------------------------------------------------------------------------------
October 31, 2000
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REPORT HIGHLIGHTS
-----------------
JAPAN FUND
----------
* Japan's markets suffered a significant setback as investors fretted over
corporate earnings and government policies.
* Reflecting market weakness, the fund posted a 20.12% six-month decline
after the superb gains of 1999.
* Despite the poor market, we were encouraged by better-than-expected
earnings in several industries and continued corporate restructuring.
* Technology, media, and telecommunications stocks remain at the heart of the
portfolio.
================================================================================
UPDATES AVAILABLE
-----------------
For updates on T. Rowe Price funds following the end of each calendar
quarter, please see our Web site at www.troweprice.com.
FELLOW SHAREHOLDERS
-------------------
After the exceptional gains of 1999, Japan's market retrenched in the six
months ended October 31, 2000. While attempts at corporate reform remained
positive, the "medicine" that will, over time, improve the health of the
business sector -- bankruptcies of weak businesses, rising unemployment, and
heavy stock selling by banks looking to reduce their crossholdings -- weighed
the local indices down. International factors, such as weakness in global
technology demand and selling by foreign investors, also depressed stock prices.
Your fund was not spared the damage, falling more than 20% for the period.
Weakness was broadly based, and only a few cyclical and defensive sectors rose.
Banks, pharmaceuticals, and consumer goods declined moderately, but telecom and
technology stocks fell more sharply. Fortunately, strong gains by your fund at
the end of 1999 and early in 2000 helped trim losses for the full year to 14.61%
-- disappointing, certainly, but better than our benchmark indices and our
Lipper peer group.
<PAGE>
MARKET REVIEW
-------------
PERFORMANCE COMPARISON
----------------------
Periods Ended 10/31/00 6 Months 12 Months
---------------------- -------- ---------
Japan Fund -20.12% -14.61%
TSE First Section Index -17.16 -15.66
TSE Second Section Index -18.80 -17.15
Lipper Japanese Funds Average -20.04 -16.10
Japan continues to exhibit significant complexity in the economic,
corporate, and political spheres, which has proven daunting not just to
international investors, but also to Japan's consumers and shareholders. Yet the
process of reform, which helped to drive the market's triple-digit advance in
1999, remains in place and is visibly benefiting the economy and corporate
earnings in some sectors.
For example, Japan is no longer technically in recession, since the economy
grew in the first and second quarters of 2000. Annualized second-quarter GDP was
higher than anticipated, and industrial production was solid in the third
quarter. However, strength was limited to major manufacturers. The Bank of
Japan's quarterly Tankan Survey in September confirmed that business confidence
among large manufacturing firms was better than expected, in contrast to that of
nonmanufacturi ng and smaller firms. Capital expenditure was also heavily skewed
toward large manufacturers. Nonetheless, perceiving the economy to be stable
enough to withstand a slight interest rate increase, The Bank of Japan raised
rates from near 0% to 0.25% in August.
Corporate earnings expectations for the current fiscal year were repeatedly
revised upward throughout the summer and were a major source of encouragement.
This was especially true among technology companies, with NEC, Toshiba, and
Kyocera, among others, raising their forecasts. While retail figures remain
weak, demand for digital consumer products such as cameras (Canon), DVD players
(MEI), and camcorders and game consoles (Sony) are buoyant and seem poised for
further strong growth into 2001.
Corporate Reforms Continue
--------------------------
The fiscal year 1999 earnings results released this past spring confirmed
that corporate Japan, at least at the top echelon, has been generally successful
in cutting costs and moving forward in restructuring efforts. For example, the
issuance of stock options for senior employees grew rapidly. Of the 200 largest
public firms by market capitalization, 60 now offer stock option schemes,
compared with 29 in 1998 and only 14 in 1997. Many previously conservative firms
have introduced stock options as part of wholesale restructuring plans, notably
Kyocera, Hitachi, and Shiseido.
<PAGE>
*******************************
there are clear signs that
corporate restructuring
and merger and acquisition
activity are shifting . . .
to more meaningful and
longer-lasting corporate
reengineering efforts.
*******************************
Our review of recent annual reports confirmed to us that Japan's top
corporations have embraced critical accounting changes, such as more efficient
tax accounting and tighter pension funding. Taken together, these changes are a
material step toward improving corporate transparency and narrowing an
accounting credibility gap between Japan and the U.S. In addition, sales of bank
cross-shareholdings accelerated. The Tokyo banks have used these sales to help
cover the costs of increased information technology investment and a new round
of bad debt provisions. Total stock sales during the current fiscal year are
estimated to reach between three and four trillion yen.
Finally, there are clear signs that corporate restructuring and merger and
acquisition activity are shifting away from mere cost-cutting or defensive
exercises to more meaningful and longer-lasting corporate reengineering efforts.
Companies have absorbed affiliates and acquired competitors more overtly and
with a clearer purpose than ever before. Sony has absorbed affiliates including
Sony Music Entertainment, Sony Chemicals, and Sony Precision while making
strategic acquisitions of Tokyu Cable Television and Fujitsu Hitachi Plasma.
Investors Remain Unsettled
--------------------------
Despite these improvements, the economy and markets still suffered from
weak consumer sentiment. Japanese families have been reluctant to loosen their
purse strings, as corporate restructurings and rising bankruptcies have kept
unemployment above historic levels. Consumers have also become suspicious of the
national pension and health plans' ability to meet the growing demands of
Japan's sizable over-55 population.
The continuing fragility of economic recovery led the government to
announce an economic stimulus package of 11 trillion yen ($105 billion) in
October. However, the package only attracted criticism from the international
investment community because Japan's debt is already 130% of GDP, and fiscal
spending is only a short-term fix that postpones painful, but essential,
structural changes. Ultimately, ratings agency Moody's downgraded Japanese
government debt.
Investor sentiment became correspondingly fragile, weighed down further by
concerns over the yen, rising U.S. interest rates, an increasingly unpopular
coalition government, and weakness among international technology stocks.
Consequently, foreign investors were net sellers of $20 billion in Japanese
equities in the past six months.
<PAGE>
The Government Loses Footing
----------------------------
In the political arena, local opinion of the Liberal Democratic Party (LDP)
coalition led by Prime Minister Yoshio Mori has gone from bad to worse. In Lower
House elections in June, the LDP coalition lost its parliamentary majority and
only barely won an effective majority and control of key parliamentary
committees. Yet the government persists in unpopular efforts to bail out
debt-riddled companies, particularly in the construction industries. These
negotiations smacked of old-style political expediency, given that the
construction industry is both a major employer and a key pillar of support for
the LDP.
Furthermore, the coalition has been plagued by scandals this year,
resulting in the resignation of former Prime Minister Noboru Takeshita and, more
recently, the chief cabinet secretary, Hidenao Nakagawa. Polls show that popular
support for Mori has fallen below 15%. Though the LDP leadership does not admit
it publicly, the underlying political machine appears to be accelerating toward
a change of leadership.
Update on New Markets
---------------------
Japan continues to develop its small and mid-cap technology markets. Nasdaq
Japan, a joint venture between the U.S. Nasdaq and Softbank, started trading in
June and has experienced early success. Although the pace of new listings may be
somewhat tempered in the current environment, the CEO confidently predicted that
120 companies will be trading in this market by next summer, including those
expected to move from existing markets such as Jasdaq. The scope of Nasdaq Japan
is potentially vast, with the possibility of truly global trading.
So far, listings on the TSE's Mothers market created in December 1999 have
performed much worse, due to investor wariness toward new Japanese companies and
low trading liquidity. In many cases, the companies in this market are still in
their infancy and lack profits and liquidity. The absence of stricter listing
requirements (unlike Nasdaq Japan) has invited abuse, as confirmed by the recent
arrest of the former president of Liquid Audio Japan.
PORTFOLIO STRATEGY
------------------
Given the overvaluation of the Japanese equity market at the beginning of
this year, and particularly the technology, media, and telecommunication
sectors, our portfolio strategy was conservative. We rigorously reviewed
holdings in an effort to reduce our risk against the market. As a result, we
trimmed the portfolio from 75 stocks at the end of April to 66.
We continued to seek stocks with sustainable earnings growth prospects at
reasonable valuations. We added KANEKA, a resins and synthetic fibers specialist
that has longer-term growth potential in the intermediary drug business. We also
added to our holdings in YAKULT HONSHA, a dairy products maker, and established
a position in BANYU PHARMACEUTICAL, the Merck-affiliated pharmaceutical company
in Japan.
<PAGE>
****************************************************************
Industry Diversification pie chart here. Capital Equipment 28%, Consumer
Goods 26%, Services 16%, Financial 20%, Materials 4%, Other and Reserves 6%.
Based on net assets as of 10/31/00.
****************************************************************
We remained light in construction stocks. The recent flurry of
announcements and rumors of debt forgiveness for construction firms did not
change the industry's fundamental unattractiveness. Significant overcapacity,
continued ownership of unprofitable golf courses, hotels, and real estate
developments, and over-reliance on public-sector contracts were structural
impediments to sustainable growth. Aggregate net debt for the 24 major
construction firms at the end of the period stood at 6.2 trillion yen, creating
an average net debt/equity ratio of a scary 326%.
BRIDGESTONE was hit hard in August by U.S. government inquiries and
subsequent lawsuits alleging auto fatalities caused by faulty Firestone branded
tires (Firestone is Bridgestone's U.S. subsidiary). We sold out of our already
reduced position in Bridgestone early in the scandal as we felt the Japanese
media and the equity market underestimated the seriousness of the allegations.
We trimmed exposure to telecommunications, media, and technology stocks,
although we kept core holdings such as CANON, MURATA MANUFACTURING, and KYOCERA.
Hardware component makers were hurt by concerns about demand for PCs,
semiconductors, and mobile-telecom related parts. Suppliers including Kyocera,
Murata, TOSHIBA, and NEC announced better-than-expected results and raised their
forecasts, but fears about the future caused their stocks to fall over the
six-month period. We established a position in Toshiba during the recent
weakness.
The electronics giants were relatively strong. Canon gained market share as
competitors such as Xerox struggled and was a leader for the past year.
MATSUSHITA ELECTRIC INDUSTRIAL, better known in the U.S. under the brand name
Panasonic, performed strongly for the six months. SONY, however, disappointed
investors by revealing that the eagerly awaited U.S. launch of its new games
console, PlayStation 2 (PS2), was halved due to component shortages. Quarterly
results were correspondingly weak, and the stock suffered.
We kept a close eye on Japan's government-controlled telecom NIPPON
TELEGRAPH & Telephone and mobile subsidiary NTT DOCOMO, though we were
underweighted in NTT. NTT experienced some regulatory pressure on its rates, and
continued government sales of its shares kept the stock price down over the
period, even though the company acquired U.S. Web-host firm Verio. The
government's stake in NTT is now down to 46%. Subscriptions to the
Internet-compatible "i-mode" service of N TT DoCoMo outstripped forecasts, and
the firm expanded abroad, buying stakes in Dutch and U.K. mobile telecom
operators, as well as signing a strategic alliance with AOL and acquiring
control of AOL's Japanese subsidiary.
<PAGE>
Bankruptcies by companies holding large loans pushed bank stocks down
again. We mostly avoided the Tokyo banks, although we added modestly to our
holdings during recent weakness. As investors continued to avoid telecom and
technology stocks, the banking sector recovered gently. We also maintained our
positions in brokerage companies NOMURA SECURITIES and COSMO SECURITIES even
though prices fell because we believe that brokerages will benefit from
increased consumer interest in newly developed investment and retirement savings
products.
OUTLOOK
-------
We anticipate the Japanese economy will grow modestly over the next six to
12 months. The government projects GDP growth for this fiscal year of 2.0% to
2.5%, but we think the Economic Planning Agency's more cautious estimate of 1.5%
is more appropriate. We are bullish on the outlook for corporate capital
expenditures, but we expect personal consumption to remain lackluster and
government spending to be constrained by increased fiscal restraint. The fund
reflects these assumptions, as we are cautious in our exposure to cyclical
sectors such as retail, housing, building materials, steel, forestry and paper,
and construction.
We remain positive on electronics stocks because the current technology
cycle seems far from over. Among new technologies, Bluetooth is particularly
interesting. It allows electronic devices to communicate with each other over
short distances using short-wave radio frequencies. The primary applications for
Bluetooth will be cellular handsets, wireless headsets, PCs, notebooks, laptops,
and PDAs. Over 1,900 companies have now signed up to use and market Bluetooth.
Japanese beneficiaries of Bluetooth held in our portfolios include Toshiba, a
founding member of the Bluetooth consortium, and Sony, TDK, MATSUSHITA
COMMUNICATION INDUSTRIAL, SHARP, and FUJITSU.
Market volatility may continue as investors' preferences shift between
established but slower-growth companies and those with more exciting, but less
certain, prospects. Uncertainty in the technology sector and high oil prices
could aggravate stock market nervousness.
However, valuations reflect these uncertainties, and once markets complete
their adjustments, we look for performance to improve. We anticipate that the
best companies will emphasize fundamentals and maintain a renewed respect for
sustainable earnings and strong management. As always, we will focus on
identifying, researching, and tracking such companies.
Respectfully submitted,
/s/
John R. Ford
President, T. Rowe Price International Funds, Inc.
November 24, 2000
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
10/31/00
-----------------------------------------------------------------------------
NTT DoCoMo 3.9%
-----------------------------------------------------------------------------
Sony 3.2
-----------------------------------------------------------------------------
Canon 3.2
-----------------------------------------------------------------------------
Yakult Honsha 3.2
-----------------------------------------------------------------------------
Kyocera 2.8
-----------------------------------------------------------------------------
Sanyo Electric 2.7
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Nomura Securities 2.7
-----------------------------------------------------------------------------
Sanwa Bank 2.4
-----------------------------------------------------------------------------
Rohm 2.3
-----------------------------------------------------------------------------
Murata Manufacturing 2.2
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Matsushita Electric Industrial 2.1
-----------------------------------------------------------------------------
Matsushita Communication Industrial 2.1
-----------------------------------------------------------------------------
Koyo Seiko 2.1
-----------------------------------------------------------------------------
Honda Motor 2.0
-----------------------------------------------------------------------------
Mitsui Fudosan 2.0
-----------------------------------------------------------------------------
Tokyo Electron 2.0
-----------------------------------------------------------------------------
Nippon Telegraph & Telephone 1.9
-----------------------------------------------------------------------------
Aiful 1.7
-----------------------------------------------------------------------------
Toys "R" Us-Japan 1.7
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Daiwa Securities 1.6
-----------------------------------------------------------------------------
<PAGE>
Toyo Information 1.6
-----------------------------------------------------------------------------
Toshiba 1.6
-----------------------------------------------------------------------------
Kaneka 1.6
-----------------------------------------------------------------------------
Fanuc 1.6
-----------------------------------------------------------------------------
Goldcrest 1.6
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Total 55.8%
Note: Table excludes reserves.
================================================================================
T. Rowe Price Japan 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 benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
TSE First Lipper Japanese
Section Index Funds Average Japan Fund
------------- ------------- ----------
12/30/91 10000 10000 10000
10/31/92 7560 7886 8580
10/31/93 10944 10974 11580
10/31/94 11901 12338 12652
10/31/95 10049 10533 11024
10/31/96 9925 10428 10589
10/31/97 7731 8512 9357
10/31/98 6471 7304 7889
10/31/99 10911 13020 15990
10/31/00 9202 11107 13653
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.
Since Inception
Periods Ended 10/31/00 1 Year 3 Years 5 Years Inception Date
---------------------- ------ ------- ------- --------- ----
Japan Fund -14.61% 13.42% 4.37% 3.59% 12/30/91
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
--------------------
Year
Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96
NET ASSET VALUE
Beginning of period $ 13.62 $ 6.72 $ 7.97 $ 9.02 $ 9.39
------------------------------------------------------------------------------
Investment activities
Net investment
income(loss) (0.06) (0.02) (0.03) (0.03) (0.05)
Net realized and
unrealized gain (loss) (1.92) 6.92 (1.22) (1.02) (0.32)
------------------------------------------------------------------------------
Total from
investment activities (1.98) 6.90 (1.25) (1.05) (0.37)
------------------------------------------------------------------------------
Distributions
Net realized gain (0.05) - - - -
------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 11.59 $ 13.62 $ 6.72 $ 7.97 $ 9.02
Ratios/Supplemental Data
Total return** (14.61)% 102.68% (15.68)% (11.64)% (3.94)%
------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 1.09% 1.14% 1.32% 1.24% 1.32%
------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets (0.38)% (0.27)% (0.37)% (0.39)% (0.48)%
------------------------------------------------------------------------------
Portfolio turnover rate 59.5% 58.8% 66.9% 32.3% 29.8%
------------------------------------------------------------------------------
Net assets,end of period
(in thousands) $ 309,686 $ 513,739 $ 150,949 $ 170,830 $ 167,118
------------------------------------------------------------------------------
** Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------ October 31, 2000
PORTFOLIO OF INVESTMENTS
------------------------ In thousands
Shares Value
------ -----
JAPAN 93.8%
Common Stocks 93.8%
Capital Equipment 27.5%
Canon 247,000 $ 9,802
--------------------------------------------------------------------------------
Fanuc 54,700 4,913
--------------------------------------------------------------------------------
Fujitsu 210,000 3,741
--------------------------------------------------------------------------------
Funai Electric * 15,000 1,133
--------------------------------------------------------------------------------
Hirose Electric 28,800 3,326
--------------------------------------------------------------------------------
Hitachi 18,000 193
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Koyo Seiko 922,000 6,523
--------------------------------------------------------------------------------
Kyocera 66,800 8,693
--------------------------------------------------------------------------------
Matsushita Communication Industrial 50,000 6,553
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Murata Manufacturing 56,000 6,703
--------------------------------------------------------------------------------
NEC 223,000 4,251
--------------------------------------------------------------------------------
Nidec 32,900 2,017
--------------------------------------------------------------------------------
Nissho Electronics 144,000 3,035
--------------------------------------------------------------------------------
Rohm 28,600 7,210
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Sanden 390,000 1,880
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Shimadzu 586,000 2,078
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TDK 19,500 1,966
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Tokyo Electron 78,000 6,105
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Toshiba 700,000 5,004
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Total Capital Equipment 85,126
--------------------------------------------------------------------------------
<PAGE>
Consumer Goods 25.8%
Banyu Pharmaceutical 159,000 3,410
--------------------------------------------------------------------------------
e-LUX * 518,000 1,614
--------------------------------------------------------------------------------
Honda Motor 178,000 6,150
--------------------------------------------------------------------------------
Kao 106,000 3,177
--------------------------------------------------------------------------------
Matsushita Electric Industrial 229,000 6,653
--------------------------------------------------------------------------------
Santen Pharmaceutical 194,000 3,831
--------------------------------------------------------------------------------
Sanyo Electric 1,117,000 8,497
--------------------------------------------------------------------------------
Sharp 289,000 $ 3,682
--------------------------------------------------------------------------------
Shiseido 287,000 3,709
--------------------------------------------------------------------------------
Sony 123,200 9,846
--------------------------------------------------------------------------------
Sumitomo Rubber Industries 724,000 3,450
--------------------------------------------------------------------------------
Takeda Chemical Industries 44,000 2,899
--------------------------------------------------------------------------------
Toys "R" Us-Japan * 38,000 5,189
--------------------------------------------------------------------------------
Yakult Honsha 857,000 9,770
--------------------------------------------------------------------------------
Yamaha Motor 529,000 4,116
--------------------------------------------------------------------------------
Yamanouchi Pharmaceutical 85,000 3,848
--------------------------------------------------------------------------------
Total Consumer Goods 79,841
--------------------------------------------------------------------------------
Financial 20.5%
Aiful 65,900 5,194
--------------------------------------------------------------------------------
Cosmo Securities * 3,022,000 4,653
--------------------------------------------------------------------------------
Daiwa Securities 459,000 5,086
--------------------------------------------------------------------------------
Goldcrest 52,100 4,885
--------------------------------------------------------------------------------
Mitsui Fudosan 505,000 6,118
--------------------------------------------------------------------------------
Mizuho Holdings * 617 4,744
--------------------------------------------------------------------------------
Nomura Securities 397,000 8,423
--------------------------------------------------------------------------------
Sakura Bank * 338,000 2,463
--------------------------------------------------------------------------------
Sanwa Bank 842,000 7,485
--------------------------------------------------------------------------------
<PAGE>
Shohkoh Fund 14,230 1,168
--------------------------------------------------------------------------------
Sumitomo Bank 396,000 4,809
--------------------------------------------------------------------------------
Suruga Bank 342,000 4,695
--------------------------------------------------------------------------------
Takefuji 36,700 3,632
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Total Financial 63,355
--------------------------------------------------------------------------------
Materials 3.7%
Kaneka 507,000 4,925
--------------------------------------------------------------------------------
Pacific Metals * 1,623,000 2,142
--------------------------------------------------------------------------------
Shin-Etsu Chemical 110,000 4,517
--------------------------------------------------------------------------------
Total Materials 11,584
--------------------------------------------------------------------------------
Services 16.3%
Fuji Television Network 329 3,618
--------------------------------------------------------------------------------
Internet Initiative ADR (USD) * 107,979 2,720
--------------------------------------------------------------------------------
Ito-Yokado 76,000 3,434
--------------------------------------------------------------------------------
Japan Business Computer 77,000 $ 1,581
--------------------------------------------------------------------------------
Mitsubishi 332,000 2,738
--------------------------------------------------------------------------------
Nippon Telegraph & Telephone 650 5,915
--------------------------------------------------------------------------------
NTT DoCoMo 484 11,932
--------------------------------------------------------------------------------
Secom 47,000 3,351
--------------------------------------------------------------------------------
Softbank 50,400 3,025
--------------------------------------------------------------------------------
Sumisho Electronic 22,000 268
--------------------------------------------------------------------------------
Sumitomo 318,000 2,798
<PAGE>
--------------------------------------------------------------------------------
Sunkus & Associates 67,300 2,005
--------------------------------------------------------------------------------
Tomen Electronics 23,500 1,055
--------------------------------------------------------------------------------
Toyo Information 74,000 5,019
--------------------------------------------------------------------------------
Trend Micro * 11,000 1,038
--------------------------------------------------------------------------------
Total Services 50,497
--------------------------------------------------------------------------------
Total Japan (Cost $262,073) 290,403
--------------------------------------------------------------------------------
Short-Term Investments 6.8%
Money Market Funds 6.8%
Reserve Investment Fund, 6.68% # 21,079,489 21,079
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $21,079) 21,079
Total Investments in Securities
100.6% of Net Assets (Cost $283,152) $ 311,482
Other Assets Less Liabilities (1,796)
NET ASSETS $ 309,686
# Seven-day yield
* Non-income producing
ADR American depository receipt
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------ October 31, 2000
STATEMENT OF ASSETS AND LIABILITIES
----------------------------------- In thousands
ASSETS
------
Investments in securities, at value (cost $283,152) $ 311,482
Securities lending collateral 43,168
Other assets 17,693
Total assets 372,343
LIABILITIES
-----------
Obligation to return securities lending collateral 43,168
Other liabilities 19,489
Total liabilities 62,657
NET ASSETS $ 309,686
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions $ 30,520
Net unrealized gain (loss) 28,304
Paid-in-capital applicable to 26,724,339 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 250,862
NET ASSETS $ 309,686
NET ASSET VALUE PER SHARE $ 11.59
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Japan Fund
------------------------
STATEMENT OF OPERATIONS
----------------------- In thousands
Year
Ended
10/31/00
--------
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $310) $ 1,758
Interest 1,172
Securities lending 285
--------------------------------------------------------------------------------
Total income 3,215
--------------------------------------------------------------------------------
<PAGE>
Expenses
Investment management 3,735
Shareholder servicing 789
Custody and accounting 261
Prospectus and shareholder reports 85
Registration 43
Legal and audit 27
Directors 7
Miscellaneous 6
--------------------------------------------------------------------------------
Total expenses 4,953
Expenses paid indirectly (3)
--------------------------------------------------------------------------------
Net expenses 4,950
--------------------------------------------------------------------------------
Net investment income (loss) (1,735)
--------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 68,772
Futures 2
Foreign currency transactions 892
--------------------------------------------------------------------------------
Net realized gain (loss) 69,666
--------------------------------------------------------------------------------
Change in net unrealized gain or loss
Securities (112,093)
Other assets and liabilities
denominated in foreign currencies (31)
--------------------------------------------------------------------------------
Change in net unrealized gain or loss (112,124)
--------------------------------------------------------------------------------
Net realized and unrealized gain (loss) (42,458)
--------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ (44,193)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------
STATEMENT OF CHANGES IN NET ASSETS
---------------------------------- In thousands
Year
Ended
10/31/00 10/31/99
-------- --------
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ (1,735) $ (762)
Net realized gain (loss) 69,666 43,843
Change in net unrealized gain or loss (112,124) 161,407
------------------------------------------------------------------------------
Increase (decrease) in net assets from operations (44,193) 204,488
------------------------------------------------------------------------------
Distributions to shareholders
Net realized gain (1,876) -
------------------------------------------------------------------------------
Capital share transactions *
Shares sold 439,185 439,514
Distributions reinvested 1,822 -
Shares redeemed (598,991) (281,212)
------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (157,984) 158,302
------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period (204,053) 362,790
Beginning of period 513,739 150,949
------------------------------------------------------------------------------
End of period $ 309,686 $ 513,739
==============================================================================
*Share information
Shares sold 31,432 42,892
Distributions reinvested 125 -
Shares redeemed (42,545) (27,654)
------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (10,988) 15,238
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------ October 31, 2000
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 Japan Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the corporation, and commenced operations on December 30, 1991.
The fund seeks long-term growth of capital through investments in common stocks
of companies located, or with primary operations, in Japan.
The accompanying financial statements were prepared in accordance with
generally accepted accounting principles, which require the use of estimates
made by fund management.
VALUATION Equity securities are valued at the last quoted sales price at
the time the valuations are made. A security that 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.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation.
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 denominated in foreign
currencies are translated into U.S. dollar values each day at the prevailing
exchange rate, using the mean of the bid and offer prices of such currencies
against U.S. dollars quoted by a major bank. 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
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from net investment income and realized gains
determined in accordance with generally accepted accounting principles. Expenses
paid indirectly reflect credits earned on daily uninvested cash balances at the
custodian and are used to reduce the fund's custody charges.
<PAGE>
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 receives cash and U.S. government securities as
collateral against the loans. Cash collateral received is invested in a money
market pooled account by the fund's lending agent. Collateral is maintained over
the life of the loan in an amount not less than 100% of the value of loaned
securities. Although 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. At October 31, 2000, the value of
loaned securities was $41,007,000; aggregate collateral consisted of $43,168,000
in the securities lending collateral pool.
OTHER Purchases and sales of portfolio securities, other than short-term
securities, aggregated $257,925,000 and $401,947,000, respectively, for the year
ended October 31, 2000.
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. In 2000, the fund utilized all of its $3,384,000 of capital loss
carryforwards for federal income tax purposes.
In order for the fund's capital accounts and distributions to shareholders
to reflect the tax character of certain transactions, the following
reclassifications were made during the year ended October 31, 2000. The
reclassifications relate primarily to a tax practice that treats a portion of
the proceeds from each redemption of capital shares as a distribution of taxable
net investment income and/or realized capital gain. The results of operations
and net assets were not affected by the increases/(decreases) to these accounts.
Undistributed net investment income $ 1,735,000
Undistributed net realized gain (32,404,000)
Paid-in-capital 30,669,000
At October 31, 2000, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$283,152,000. Net unrealized gain aggregated $28,330,000 at period-end, of which
$55,103,000 related to appreciated investments and $26,773,000 to depreciated
investments.
<PAGE>
NOTE 4 - FOREIGN TAXES
----------------------
The fund is subject to foreign income taxes imposed by certain countries in
which it invests. Foreign income taxes are accrued by the fund as a reduction of
dividend and interest income.
NOTE 5 - RELATED PARTY TRANSACTIONS
-----------------------------------
The fund is managed by T. Rowe Price International, Inc. (the manager), a
wholly owned subsidiary of T. Rowe Price Associates, Inc. (Price Associates).
The investment management agreement between the fund and the manager provides
for an annual investment management fee, of which $232,000 was payable at
October 31, 2000. The fee is computed daily and paid monthly, and consists of an
individual fund fee equal to 0.50% 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 0.295% for assets in excess of $120
billion. At October 31, 2000, 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. 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 $690,000 for the year ended
October 31, 2000, of which $60,000 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 Spectrum, the
underlying funds, Price Associates, and, in the case of T. Rowe Price Spectrum
International, T. Rowe Price International. Spectrum International Fund held
approximately 1.7% of the outstanding shares of the Japan Fund at October 31,
2000. For the year then ended, the fund was allocated $19,000 of Spectrum
expenses, $2,000 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 Price Associates. The Reserve Funds are offered
as cash management options only to mutual funds and other accounts managed by
Price Associates or T. Rowe Price International, 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, 2000, totaled
$1,168,000 and are reflected as interest income in the accompanying Statement of
Operations.
<PAGE>
During the year ended October 31, 2000, the fund, in the ordinary course of
business, placed security purchase and sale orders aggregating $70,694,000 with
certain affiliates of the manager and paid commissions of $104,000 related
thereto.
================================================================================
T. Rowe Price Japan Fund
------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
TO THE BOARD OF DIRECTORS OF T. ROWE PRICE INTERNATIONAL FUNDS, INC.
AND SHAREHOLDERS OF JAPAN FUND
In our opinion, the accompanying statement of assets and
liabilities, including the portfolio of investments, 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 Japan Fund (one of the portfolios comprising T. Rowe Price
International Funds, Inc., hereafter referred to as the "Fund") at
October 31, 2000, 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 accounting principles generally accepted in
the United States of America. 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
auditing standards generally accepted in the United States of America,
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, 2000 by correspondence with the custodian,
provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 17, 2000
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------
ANNUAL MEETING RESULTS
----------------------
The T. Rowe Price Japan Fund held an annual meeting on October 25, 2000, to
approve a new investment management agreement, elect directors to the fund, and
ratify the Board of Directors' selection of PricewaterhouseCoopers LLP as the
fund's independent accountants.
The results of voting were as follows (by number of shares):
FOR APPROVAL OF A NEW INVESTMENT MANAGEMENT AGREEMENT:
Affirmative: 17,488,360.604
Against: 413,019.864
Abstain: 322,501.381
Total: 18,223,881.849
FOR NOMINEES TO THE BOARD OF DIRECTORS OF THE JAPAN FUND:
M. DAVID TESTA
Affirmative: 17,721,521.031
Withhold: 502,360.818
Total: 18,223,881.849
MARTIN G. WADE
Affirmative: 17,718,278.455
Withhold: 505,603.394
Total: 18,223,881.849
ANTHONY W. DEERING
Affirmative: 17,734,805.074
Withhold: 489,076.775
Total: 18,223,881.849
DONALD W. DICK, JR.
Affirmative: 17,740,428.231
Withhold: 483,453.618
Total: 18,223,881.849
PAUL M. WYTHES
Affirmative: 17,717,693.424
Withhold: 506,188.425
Total: 18,223,881.849
TO RATIFY THE APPOINTMENT OF PRICEWATERHOUSECOOPERS
LLP AS INDEPENDENT ACCOUNTANTS:
Affirmative: 17,746,355.871
Against: 239,940.410
Abstain: 237,585.568
Total: 18,223,881.849
================================================================================
<PAGE>
T. Rowe Price Japan Fund
------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 10/31/00
-----------------------------------------------------------
We are providing this information as required by the Internal Revenue Code.
The amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund's distributions to shareholders included:
* $ 4,305,000 from short-term capital gains,
* $28,243,000 from long-term capital gains, subject to the
20% rate gains category.
The fund will pass through foreign source income of $1,846,000 and
foreign taxes paid of $194,000.
================================================================================
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 8:30a.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[Reg Mark]
and the T. Rowe Price Web site on the Internet.
Address: www.troweprice.com.
BROKERAGE SERVICES*
-------------------
INDIVIDUAL INVESTMENTS Stocks, bonds, options, precious
metals, and other securities at a savings over full-service
commission rates. **
<PAGE>
INVESTMENT INFORMATION
----------------------
COMBINED STATEMENT Overview of all your accounts with
T. Rowe Price.
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.
* T. Rowe Price Brokerage is a division of T. Rowe Price
Investment Services, Inc., Member NASD/SIPC.
** Based on a July 2000 survey for representative-assisted
stock trades. Services vary by firm, and commissions may
vary depending on size of order.
================================================================================
T. Rowe Price Mutual Funds
--------------------------
STOCK FUNDS
-----------
DOMESTIC
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Developing Technologies
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
<PAGE>
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Tax-Efficient Growth
Total Equity Market Index
Value
INTERNATIONAL/GLOBAL
Emerging Europe & Mediterranean
Emerging Markets Stock
European Stock
Global Stock
Global Technology
International Discovery*
International Growth & Income
International Stock Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
----------
DOMESTIC TAXABLE
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Spectrum Income
Summit GNMA
U.S. Treasury Intermediate
U.S. Treasury Long-Term
DOMESTIC TAX-FREE
California Tax-Free Bond
Florida 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 Intermediate Bond
Tax-Free Short-Intermediate
Virginia Tax-Free Bond
<PAGE>
INTERNATIONAL/GLOBAL
Emerging Markets 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
*Closed to new investors.
+Investments in the funds are not insured or guaranteed by the FDIC or any other
government agency. Although the funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
funds.
Please call for a prospectus, which contains complete information,
including fees and expenses. Read it carefully before investing.
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.
================================================================================
<PAGE>
T. Rowe Price Advisory Services and Retirement Resources
--------------------------------------------------------
ADVISORY SERVICES, RETIREMENT RESOURCES
--------------------------------------------------------------------------------
T. Rowe Price is your full-service retirement
specialist. We have developed unique advisory
services that can help you meet the most difficult
retirement challenges. Our broad array of
retirement plans is suitable for individuals, the
self-employed, small businesses, corporations, and
nonprofit organizations. We also provide
recordkeeping, communications, and investment
management services, and our educational
materials, self-help planning guides, and software
tools are recognized as among the industry's best.
For information or to request literature, call us
at 1-800-638-5660, or visit our Web site at
WWW.TROWEPRICE.COM.
--------------------------------------------------------------------------------
ADVISORY SERVICES
T. ROWE PRICE RETIREMENT INCOME MANAGER SM helps
retirees or those within two years of retirement
determine how much income they can take in
retirement. The program uses extensive statistical
analysis and the input of financial planning
professionals to suggest an income plan that best
meets your objectives.
T. ROWE PRICE ROLLOVER INVESTMENT SERVICE offers
asset allocation advice to those planning a major
change in their qualified retirement plans, such
as a 401(k) rollover from a previous employer or
an IRA transfer.
RETIREMENT RESOURCES AT T. ROWE PRICE
--------------------------------------------------------------------------------
Traditional, Roth, and Rollover IRAs
SEP-IRA and SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase
Pension and Profit Sharing Plans)
401(k) and 403(b)
457 Deferred Compensation
PLANNING AND INFORMATIONAL GUIDES
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
<PAGE>
INSIGHTS REPORTS
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
SOFTWARE PACKAGES
T. Rowe Price Retirement Planning
Analyzer [TM] CD-ROM or diskette $19.95.
To order, please call 1-800-541-5760.
Also available on the Internet for $9.95.
T. Rowe Price Variable Annuity Analyzer [TM]
CD-ROM or diskette, free. To
order, please call 1-800-469-5304.
T. ROWE PRICE IMMEDIATE VARIABLE ANNUITY (INCOME ACCOUNT)
INVESTMENT KITS
We will be happy to send you one of our
easy-to-follow investment kits when you are ready
to invest in any T. Rowe Price retirement vehicle,
including IRAs, qualified plans, small-business
plans, or our no-load variable annuities.
================================================================================
T. Rowe Price Insights Reports
------------------------------
THE FUNDAMENTALS OF INVESTING
--------------------------------------------------------------------------------
Whether you are unsure how to get started or are
saving for a specific goal, such as retirement or college, the
T. Rowe Price Insights series can help you make informed
investment decisions. These reports, written in plain English
about fundamental investment topics, can be useful at every
stage of your investment journey. They cover a range of topics,
from the basic, such as getting started with mutual funds, to
the more advanced, such as managing risk through diversification
or buying individual securities through a broker. To request one
or more Insights, call us at 1-800-638-5660.
<PAGE>
INSIGHTS REPORTS
--------------------------------------------------------------------------------
GENERAL INFORMATION
The ABCs of Giving
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
INVESTMENT STRATEGIES
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
Managing Risk Through Diversification
The Power of Compounding
Value Investing
TYPES OF SECURITIES
The Basics of International Stock
Investing The Basics of Tax-Free
Investing The Fundamentals of Fixed-Income
Investing Global Bond Investing
Investing in Common Stocks
Investing in Emerging Growth Stocks
Investing in Financial Services Stocks
Investing in Health Care Stocks
Investing in High-Yield Municipal Bonds
Investing in Money Market Securities
Investing in Mortgage-Backed Securities
Investing in Natural Resource Stocks
Investing in Science and Technology Stocks
Investing in Small-Company Stocks
Understanding Derivatives
Understanding High-Yield "Junk" Bonds
BROKERAGE INSIGHTS
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
INSIGHTS REPORTS
================================================================================
<PAGE>
T. Rowe Price Brokerage
-----------------------
BROKERAGE SERVICES
------------------
T. Rowe Price Brokerage is a division of T. Rowe Price
Investment Services, Inc., Member NASD/SIPC.
T. Rowe Price Brokerage provides high-quality services and
financial tools you can use to manage your investments
effectively and conveniently. We also offer commission savings
over full-service brokerages on a number of transactions.*
INTERNET AND AUTOMATED SERVICES You can enter
trades, access quotes, and review account information
24 hours a day, seven days a week, by telephone or
computer. We offer a flat-rate commission of $19.95 on
stock trades placed through our Internet-Trader
service.**
RESEARCH SERVICES To help you make informed
investment decisions, we offer access to several
sources of data. You can research your investments
using our Online Research & News Service, provided by
Thomson Investors Network, which includes company
profiles, intraday and 12-month interactive charting,
and analysts' ratings and earnings estimates. Using our
Research On Call service, you can request reports from
Standard & Poor's, Vicker's, Lipper, and other
well-known research providers to be delivered by fax or
by mail.
DIVIDEND REINVESTMENT SERVICE This service helps
keep more of your money working for you. Cash dividends
(of $10 or greater) from your eligible securities will
be invested automatically in additional shares of the
same company, free of charge. Most stocks listed on
national securities exchanges or Nasdaq are eligible
for this service.
* Based on a July 2000 survey for
representative-assisted stock
trades. Services vary by firm, and
commissions may vary depending on
size of order.
** $19.95 per trade for up to 1,000
shares plus an additional $.02 for
each share over 1,000 shares. Visit
our Web site for a complete
commission schedule or call for
rates on representative-assisted
and other non-Internet trades.
================================================================================
<PAGE>
FOR FUND AND ACCOUNT INFORMATION
OR TO CONDUCT TRANSACTIONS,
24 HOURS, 7 DAYS A WEEK
By touch-tone telephone
TELE*ACCESS 1-800-638-2587
By Account Access on the Internet
WWW.TROWEPRICE.COM/ACCESS
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132
TO OPEN A BROKERAGE ACCOUNT
OR OBTAIN INFORMATION, CALL:
1-800-638-5660
FOR THE HEARING IMPAIRED, CALL:
1-800-367-0763
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears
on your retirement account statement.
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
appropriate to the fund or funds
covered in this report.
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site.
BALTIMORE AREA
Downtown - new address
105 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
<PAGE>
COLORADO SPRINGS
2260 Briargate Parkway
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
SAN FRANCISCO AREA
1990 North California Boulevard
Suite 100
Walnut Creek
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. F62-050 10/31/00
