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October 1, 2000
FUND PROFILE
T. ROWE PRICE
Japan Fund
A stock fund seeking long-term capital growth through investments primarily in
Japanese companies.
TROWEPRICELOGO
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.
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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 in common
stocks of companies located (or with primary operations) in Japan.
What is the fund's principal investment strategy?
Normally, the fund expects to invest substantially all of its assets across a
wide range of Japanese industries and companies. Stock selection reflects a
growth style. T. Rowe Price International, Inc. ("T. Rowe Price
International") 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 Japan itself, bottom-up stock selection
is the focus of our decision-making.
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;
. 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
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FUND PROFILE
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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.
. Geographic risk Funds that are less diversified across geographic regions,
countries, industries, or individual companies are generally riskier than
more diversified funds. Thus, for example, investors in the fund are fully
exposed to Japan's economic cycles, stock market valuations, and currency
exchange rates which could increase its risks compared with a more
diversified fund. In addition, investors in Japan should be aware of specific
problems, including tax laws that discourage consumer spending and dampen
growth, deflation, a banking system burdened with bad loans, and the
government's unsatisfactory progress in effecting credible solutions to these
problems.
. 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. In addition, the Tokyo Stock Exchange is open
on days when the fund does not compute its share price. As a result, the
fund's net asset value may be significantly affected by trading on days when
shareholders cannot make transactions.
. 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.
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FUND PROFILE
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. 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 international
investments. A single-country fund such as this one is most appropriately
used to supplement more-diversified "core" holdings. If you want additional
exposure to Japan and can accept the fund's additional risks 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
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<TABLE>
<CAPTION>
Calendar Year Total Returns
"92" "93" "94" "95" "96" "97" "98" "99"
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<S> <C> <C> <C> <C> <C> <C> <C>
-13.40 20.61 15.09 -3.12 -10.99 -22.08 9.16 112.71
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</TABLE>
Quarter ended Total return
Best quarter 12/31/98 25.17%
Worst quarter 12/31/97 -20.55%
<TABLE>
Table 1 Average Annual Total Returns
<CAPTION>
Periods ended 09/30/2000
Since inception
1 year 5 years (12/30/1991)
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<S> <C> <C> <C> <S>
Japan Fund 0.50% 5.87% 4.91%
TSE First Section Index
(TOPIX) -3.83 -1.36 -0.11
TSE Second Section Index -7.39 3.10 1.43
Lipper Japanese Funds -3.81 4.53 1.39
Average
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</TABLE>
These figures include changes in principal value, reinvested dividends, and
capital gain distributions.
What fees or expenses will I pay?
The fund is 100% no load. There are no 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>
Annual fund operating expenses
(expenses that are deducted from fund assets)
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<S> <C>
Management fee 0.82%/ // /
Other expenses 0.32%
Total annual fund operating 1.14%/ // /
expenses
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</TABLE>
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, you invest $10,000, you earn a 5% annual return, and you hold the
investment for the following periods:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
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<S> <C> <C> <C>
$116 $362 $628 $1,386
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</TABLE>
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Who manages the fund?
T. Rowe Price International is responsible for the selection and management
of the fund's portfolio investments. The company, a wholly owned subsidiary
of T. Rowe Price Associates, is the successor to Rowe Price-Fleming
International ("Price-Fleming"), a joint venture established in 1979 between
T. Rowe Price Associates and Robert Fleming Holdings ("Flemings"). In 2000,
T. Rowe Price became the sole owner of Rowe Price-Fleming and renamed the
company T. Rowe Price International. The U.S. office of T. Rowe Price
International is located at 100 East Pratt Street, Baltimore, Maryland 21202.
Offices are also located in London, Tokyo, Singapore, Hong Kong, Buenos
Aires, and Paris.
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 20 years of experience with the Fleming Group in
research and portfolio management; Ian J. MacDonald, who joined Price-
Fleming in 1998 and has 15 years of experience in equity research and
portfolio management; and David J.L. Warren, who joined Price-Fleming in 1983
and has 19 years of experience in equity research, fixed-income research, and
portfolio management.
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.
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.
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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.
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FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com
LOGO
RPS F62-035
T. Rowe Price Investment Services, Inc., Distributor
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