<PAGE>
T. Rowe Price
--------------------------------------------------------------------------------
Semiannual Report
European Stock Fund
--------------------------------------------------------------------------------
April 30, 2000
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REPORT HIGHLIGHTS
================================================================================
EUROPEAN STOCK FUND
-------------------
* Europe's markets performed well, but gains were concentrated in a few
technology-related sectors.
* Your fund's strong six-month gain exceeded the benchmark but fell
behind peers with more technology exposure.
* Weakness in the euro muted returns for U.S. investors.
* The fund's technology holdings drove performance, although merger
activity in other sectors contributed to gains.
* We anticipate additional volatility in the near term, but are
enthusiastic about Europe's economic and corporate strength.
================================================================================
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
-------------------
Europe's investing environment improved considerably during the six months
ended April 30, 2000, as economic growth rates accelerated while inflation
remained subdued. Yet stock market performance centered almost exclusively
around "new economy" sectors -- the technology, media, and telecommunications
stocks now being called "TMT" by the region's investors. Your fund was aided by
its exposure to these stocks, although some competitors benefited more.
******************************************************************
PERFORMANCE COMPARISON
----------------------
Periods Ended 4/30/00 6 Months 12 Months
--------------------- -------- ---------
European Stock Fund 12.94% 14.38%
MSCI Europe Index 8.45 10.28
Lipper European Funds Average 21.51 25.29
******************************************************************
<PAGE>
After struggling for much of 1999, the fund posted six-month results of
12.94% -- strong in absolute terms and also relative to the MSCI Europe Index's
8.45% return. However, it was disappointing when compared to our Lipper peer
group average. The difference owed to TMT exposure. Although we have been
modestly overweight in the technology-related sectors compared with the index,
our competitors clearly had much larger bets. The six-month performance
disparity also shows up in the fund's 12-month relative results.
MARKET ENVIRONMENT
------------------
Europe's economic growth accelerated noticeably during the period thanks to
good domestic demand an d a booming export sector. GDP growth in the euro zone
should comfortably exceed 4% this year, yet there are no signs of inflation.
Despite a very severe hike in oil prices, inflation remained close to the
European Central Bank (ECB) target of 2%. Consumption improved as consumer
confidence remained high and unemployment fell; meanwhile, export companies got
a huge boost from the large and rapid fall in the value of the euro.
Throughout the region, new economy stocks soared on the coattails of the
dramatic rise by these same sectors in the U.S. As investors focused on growth,
technology stocks rose 68%, media 53%, and telecoms 25%. A large majority of the
other sectors in the market, from autos to utilities, had negative returns over
the same period. Investors were apparently willing to sell at any price to
switch into the new economy. For that reason, performance was divided between
big winners and some significant losers.
Country returns varied considerably, depending more on each country's
component of technology issues than on local factors. The SWEDISH and FINNISH
markets were strongest, up 53% and 81% in U.S. dollar terms, respectiv ely, due
mostly to the gains of technology leaders ERICSSON and NOKIA.
Stocks in GERMANY rose 16% (more than 33% in local currency terms) as its
large technology and telecom stocks soared. In FRANCE, technology and media
accounted for much of the market's 15% rise in dollar terms and 32% in local
currency. The U.K. and SWITZERLAND, with fewer technology and telecom companies,
were the weakest major markets, falling 3% and 8%, respectively, in dollar
terms. Poorer performance from financial services companies and pharmaceuticals
held back their returns.
***************************************************
T. ROWE PRICE BECOMES SOLE OWNER OF INTERNATIONAL INVESTMENT MANAGER
As an international investor, you may be
aware that the T. Rowe Price international
and global stock and bond funds have always
been managed by Rowe Price-Fleming
International, Inc., a joint venture formed
in 1979 between T. Rowe Price Associates and
London-based Robert Fleming Holdings,
Limited.
<PAGE>
On April 11, 2000, T. Rowe Price announced an
agreement to purchase the 50% of the joint
venture owned by Flemings, thus becoming the
sole owner of the management company. In due
course, the name of Rowe Price-Fleming
International will be changed to reflect its
new status.
The change in ownership structure will not
affect the investment approach or operations
of our international funds. We expect Rowe
Price-Fleming's leadership and professional
staff to remain in place, together with the
substantial resources and expertise built up
over the past 20 years. Likewise, there will
be no change in the offices in London, Hong
Kong, Tokyo, Singapore, Buenos Aires, Paris,
and Baltimore.
Under the U.S. securities laws, the
assignment of the funds' investment
management contract to a new entity is
subject to shareholder approval. Accordingly,
after the purchase is concluded later this
year, we will set a date for a shareholder
meeting and send you a proxy with voting
information.
The formation of Rowe Price-Fleming 20 years
ago opened the way for T. Rowe Price to
expand the investment services offered to
shareholders and clients. As an integral part
of T. Rowe Price, this very successful
international investment manager will provide
significant opportunities to enhance those
services.
***************************************************
The euro's 13% decline against the dollar over the past six months was
attributed to several factors. One theory held that investments flowing out of
the euro zone were weakening the currency, as European companies acquired U.S.
counterparts. Other commentators noted the persistent gap between exceptionally
strong U.S. growth and th e more moderate growth in Europe, as well as to higher
U.S. interest rates. Regardless of the reasons, the falling euro spelled bad
news for U.S. investors: when foreign currencies decline, investmen ts
denominated in those currencies lose value when translated into dollars.
Although the effect of currency movements tends to even out over time, during
short periods the effect can be unpleasant. The Market Performance table shows
how the largely robust gains in Europe were trimmed by the euro's decline. Even
those countries not currently using the euro, such as the U.K., experienced
notable currency weakness. Only Sweden's soaring market survived the effects of
a weak currency to post an excellent gain in U.S. dollar terms.
<PAGE>
**********************************************************
MARKET PERFORMANCE
------------------
Six Months Local Local Currency U.S.
Ended 4/30/00 Currency vs. U.S. Dollars Dollars
------------- -------- ---------------- -------
Belgium -8.97% -13.30% -21.08%
France 32.23 -13.30 14.64
Germany 33.25 -13.30 15.53
Italy 26.37 -13.30 9.56
Netherlands 17.19 -13.30 1.60
Spain 24.68 -13.30 8.10
Sweden 66.38 -7.98 53.09
Switzerland 4.18 -11.44 -7.73
United Kingdom 1.57 -4.64 -3.14
Source: RIMES Online, using MSCI indices.
**********************************************************
Toward the end of the period, an important new trend emerged. An abundant
supply of new technology-related issues appeared to saturate the market for (and
reduce the value of) Internet-related investments. Invest ors also seemed more
concerned about excessive valuations in these sectors, and began to turn their
attention to growth in other areas. As a result, pharmaceuticals, consumer
cyclicals, and financials started to rally in March and April.
PORTFOLIO REVIEW
----------------
The technology sector exploded as investors focused on the tremendous
growth prospects for mobile phone handsets and infrastructure and other
communications-related equipment. The fund's overweight positions in Nokia
(Finland), STMICROELECTRONICS (France), EPCOS (Germany), and NETHERLANDS stocks
PHILIPS ELECTRONICS and ASM LITHOGRAPHY benefited as they are important
suppliers of this hardware. However, our low weighting in Ericsson (Sweden) hurt
us as the market ignored the poor performance of its handset division and
focused instead on its successful infrastructure operation.
The acquisition of Time Warner by AOL in the U.S. acted as a catalyst for
media companies throughout Euroland. Their strong advance highlighted the
growing value not just of the Internet itself, but of firms that can supply
Internet content. Our longstanding holdings in REED INTERNATIONAL and UNITED
NEWS & MEDIA in the U.K. rebounded strongly on this news. However, investors
soured on another old favorite, WOLTERS KLUWER in the Netherlands, as its
chairman resigned unexpectedly and internal expansion of its Internet
capabilities promised to offset profit growth for two years.
<PAGE>
***************************************************
INDUSTRY DIVERSIFICATION
------------------------
Percent of Net Assets
10/31/94 4/30/00
-------- -------
Services 28.9% 37.8%
Finance 23.8 16.8
Consumer Goods 21.4 16.8
Capital Equipment 10.9 11.0
Energy 10.0 8.6
Materials 2.6 1.8
Multi-industry 0.7 0.3
Reserves 1.7 4.7
Other Assets Less Liabilities -- 2.2
Total 100.0% 100.0%
***************************************************
Our top position in the media sector was TELEVISION FRANCAISE, the largest
private TV channel in France. The stock was a very strong performer as the
company could not satisfy demand for its advertising space. Advertising
expenditures have been quite low in countries such as France, ITALY, and SPAIN
compared with the U.S. and U.K, but, because of the general growth in
advertising expenditure globally, we anticip ate improvement in this trend. We
have therefore added to MEDIASET in Italy and WPP GROUP in the U.K.
The telecom sector also rose strongly as investors focused on the lucrative
potential of broadband services in both fixed-line and wireless phone systems.
The greater capacity of broadband will allow data to be transmitte d at much
faster speeds, so that individuals may use mobile phones to access the Internet
for information, to make transactions, or even to pay for purchases. Our
overweight positions in wireless (mobile) telecoms, principally MANNESMANN in
Germany and TIM in Italy, were positives as investors bid up the companies in
anticipation of significant revenue growth. During the period, Mannesmann was
the subject of the first-ever hostile bid in Germany by VODAFONE AIRTOUCH
(U.K.). The company was subsequently acquired for stock in Europe's largest
corporate transaction to date.
We also saw a large rise in the value of our telecom holding KPNQWEST
following its IPO. The firm is building a pan-European Internet protocol (IP)
network to offer telephone services at significantly lower cost than the
traditional telephone companies, such as France Telecom and Deutsche Telecom,
can offer. We have been reluctant to invest in these high-quality old-line
companies because we think they will experience serious domestic price
competition thanks to increased deregulation. We also expect that they will
struggle to offset revenue lost in their fixed-line business despite their
development of mobile and Internet businesses. The market, however, still has
faith in their Internet initiatives, and their shares performed very well over
the period.
<PAGE>
***************************************************
[Geographic Diversification, Pie chart with following segments -- United
Kingdom 29%; France 16%; Netherlands 11%; Germany, 8%; Switzerland 6%; Italy 7%;
Sweden 6%; Other and Reserves 17%.]
***************************************************
KPNQwest was only one of many initial public offerings during the six-month
period. We participated in a number of them, including TERRA NETWORKS in Spain,
which was a partial spin-off by Telefonica of their Internet activities in Spain
and Latin America, and LYCOS EUROPE and WORLD ONLINE INTERNATIONAL, additions to
our Internet service provider holdings. However, toward the end of March we
became increasingly concerned at the valuations of these stocks and reduced our
exposure significantly by selling our holdings outright or retaining only a very
small position.
Outside of the new economy sectors, performance was generally weak, and our
notable positions in financials and steady-growth consumer stocks hurt
performance. The retail, banking, and food and household sectors each suffered
double-digit declines. Several of our large holdings in these sectors had sharp
drops, despite the high quality of their businesses. For example, British
retailer KINGFISHER fell 23% while Dutch financial company FORTIS slid 27%. In
most cases, these stocks and sectors were sold aggressively not because of
current problems but because investors assumed that Internet competitors would
significantly pressure their future growth potential. These concerns may have
been overinflated, however. As interest rates rose in the U.S. and valuations on
new economy stocks became extreme, the market became more defensive and the
traditional growth sectors rallied strongly in March and April.
*********************************
Industry consolidation and
corporate restructuring remained
critical underpinnings of
investor confidence in Europe.
*********************************
Industry consolidation and corporate restructuring remained critical
underpinnings of investor confidence in Europe. Consolidation in particular
accelerated during the period, especially in the financial and pharmaceutical
sectors. In the U.K., one of our largest ho ldings, NATIONAL WESTMINSTER BANK,
was the subject of two hostile bids and was eventually purchased by the Royal
Bank of Scotland. In Spain, Banco Bilbao Vizcaya merged with ARGENTARIA BANCA DE
ESPANA while in Scandinavia, NORDIC BALTIC HOLDINGS (formerly Merita Nordbanken)
acquired UNIDANMARK in DENMARK. However, in Germany, the proposed acquisition of
DRESDNER BANK by DEUTSCHE BANK broke down due to management differences.
<PAGE>
Britain's GLAXO WELLCOME and SMITHKLINE BEECHAM finally announced their
long anticipated merger in January, which is expected to create one of the
world's largest pharmaceuticals firms. We added to our already significant
position in Glaxo Wellcome in anticipation of the merger. Their pipeline of new
products is already strong, and enhanced research and development resources
after the merger should ensure attractive revenue and profit growth over the
next few years. A focus on shareholder value was also a driving force when
Sweden's ASTRAZENECA GROUP and Switzerland's NOVARTIS announced they would
combine their respective agrochemicals businesses and seek a separate stock
listing.
Consolidation also appeared in the technology, telecom, and media sectors.
United News & Media's strong performance was bolstered by a proposed merger with
Carlton Communications in the U.K. In technology, two of our holdings were
involved in large acquisitions. CAP GEMINI in France, which provides software
consulting services, announced the acquisition of Ernst & Young's consulting arm
in order to improve its weak position in the U.S. Also in France, ALCATEL
ALSTHOM purchased Canadian firm Newbridge Networks for stock to boost its
presence in the important North American market.
OUTLOOK
-------
The past six months were difficult for the fund as our "growth at a
reasonable price" strategy took a back seat in the market stampede to pricey new
economy stocks. Although we think these companies have many attractive features,
we remain only modestly overweight in them (compared with our benchmark) as
their very high absolute valuations remain a concern for us.
More broadly, we believe that the important and valuable structural changes
taking place in Europe, including deregulation, restructuring, and corporate
consolidation, will continue to bring significant economic ben efits to the
region. Economic growth is accelerating rapidly across Europe, which will boost
demand for many European companies. In additi on, the convergence of information
and communication technologies, when applied effectively, should improve the
earnings outlooks of traditional businesses and provide catalysts for further
market gains.
<PAGE>
Following a year of speculation in Internet and technology stocks, we
welcome a return to selectivity and a focus on financial fundamentals. After
this period of volatility and consolidation among technology companies is over,
the firms that can compete and flourish in this changing environment will emerge
as winners. With this transition taking place and interest rates rising, we
expect stock market volatility to continue during the next few months. As
always, we remain committed to core holdings offering steady growth at
attractive valuations for long-term investment. We believe this approach will
continue to serve our shareholders well over the long term.
Respectfully submitted,
/s/
Martin G. Wade
Chairman
/s/
John R. Ford
President
May 25, 2000
***************************************************
NEW PRESIDENT OF T. ROWE PRICE INTERNATIONAL FUNDS
After more than 20 years as president of T. Rowe
Price International Funds, Inc., Martin G. Wade
has passed the baton to his colleague, John R.
Ford. John Ford has been associated with T. Rowe
Price's international investment management arm
since 1984. He currently serves on the Investment
Advisory Committees of all the T. Rowe Price
international equity funds.
Mr. Wade was instrumental in the launching of T.
Rowe Price's first foreign stock offering, the
International Stock Fund, in 1980, and played a
key role thereafter in the company's increasing
presence as an international asset manager. He
remains associated with the International Funds as
chairman and is also a member of the Board of
Directors of T. Rowe Price Associates.
<PAGE>
================================================================================
T. Rowe Price European Stock Fund
--------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
4/30/00
----------
Nokia, Finland 5.1%
Vodafone Airtouch, United Kingdom 4.5
Total Fina, France 2.8
Television Francaise, France 2.7
Royal Bank of Scotland Group, United Kingdom 2.4
Glaxo Wellcome, United Kingdom 2.4
Vivendi, France 2.3
Philips Electronics, Netherlands 2.2
Shell Transport & Trading, United Kingdom 2.1
Telecom Italia Mobile, Italy 2.1
Cable & Wireless, United Kingdom 2.1
SmithKline Beecham, United Kingdom 2.0
Telefonica, Spain 1.7
INGGroep, Netherlands 1.7
Adecco, Switzerland 1.6
SAP, Germany 1.5
Compass Group, United Kingdom 1.4
AstraZeneca Group, United Kingdom 1.4
Roche Holdings, Switzerland 1.4
LM Ericsson, Sweden 1.4
Nestle, Switzerland 1.2
Reed International, United Kingdom 1.2
STMicroelectronics, France 1.2
Telecom Italia, Italy 1.2
Kingfisher, United Kingdom 1.2
Total 50.8%
Note: Table excludes reserves.
<PAGE>
================================================================================
T. Rowe Price European Stock Fund
--------------------------------------------------------------------------------
PERFORMANCE COMPARISON
----------------------
This chart shows the value of a hypothetical $10,000 investment in the fund
over the past 10 fiscal year periods or since inception (for funds lacking
10-year records). The result is compared with 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.
MSCI EMF Latin Lipper Latin America Latin America
Date America Index Funds Average Fund
---- ------------- ------------- -------------
4/30/90 10,000 10,000 10,000
4/91 10,436 9,553 9,885
4/92 11,680 10,160 10,815
4/93 11,915 9,801 10,578
4/94 14,566 12,151 13,003
4/95 15,977 12,411 14,185
4/96 18,602 14,684 17,297
4/97 22,587 17,345 20,428
4/98 32,960 24,748 28,110
4/99 34,826 24,946 29,813
4/00 38,518 30,671 34,100
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.
Periods Ended 4/30/00 1 Year 3 Year 5 Years 10 Years
--------------------- ------ ------ ------- --------
European Stock Fund 14.38% 18.62% 19.18% 13.05%
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 European Stock Fund
--------------------------------------------------------------------------------
Unaudited For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
-------------------- 6 Months Year
Ended Ended
4/30/00 10/31/99 10/31/98 10/31/97 10/31/96 10/31/95
------- -------- -------- -------- -------- --------
NET ASSET VALUE
---------------
Beginning of period $ 22.29 $ 22.38 $ 19.84 $ 16.93 $ 14.35 $ 12.72
--------------------------------------------------------------------------------
Investment activities
Net investment
income (loss) 0.02 0.23 0.28 0.25 0.25 0.20
Net realized and
unrealized gain (loss) 2.78 2.14 3.52 3.12 2.79 1.60
--------------------------------------------------------------------------------
Total from
investment activities 2.80 2.37 3.80 3.37 3.04 1.80
--------------------------------------------------------------------------------
Distributions
Net investment income (0.14) (0.28) (0.25) (0.26) (0.21) (0.12)
Net realized gain (1.90) (2.18) (1.01) (0.20) (0.25) (0.05)
--------------------------------------------------------------------------------
Total distributions (2.04) (2.46) (1.26) (0.46) (0.46) (0.17)
--------------------------------------------------------------------------------
NET ASSET VALUE
---------------
End of period $ 23.05 $ 22.29 $ 22.38 $ 19.84 $ 16.93 $ 14.35
--------------------------------------------------------------------------------
<PAGE>
RATIOS/SUPPLEMENTAL DATA
------------------------
Total return* 12.94% 11.44% 20.12% 20.30% 21.76% 14.41%
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.01%+ 1.05% 1.05% 1.06% 1.12% 1.20%
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.14%+ 0.97% 1.39% 1.41% 1.81% 1.75%
--------------------------------------------------------------------------------
Portfolio turnover rate 37.3%+ 15.7% 26.8% 17.5% 14.1% 17.2%
--------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 1,384 $ 1,382 $ 1,412 $ 984 $ 705 $ 491
--------------------------------------------------------------------------------
* 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.
+ Annualized
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price European Stock Fund
--------------------------------------------------------------------------------
Unaudited April 30, 2000
PORTFOLIO OF INVESTMENTS Shares Value
------------------------ In thousands
----------------------
BELGIUM 1.1%
-------------
COMMON STOCKS 1.1%
Dexia (EUR) 45,292 $ 5,872
--------------------------------------------------------------------------------
Fortis B (EUR) 231,799 5,852
--------------------------------------------------------------------------------
Societe Europeenne des Satellites (Class A) (EUR) 8,000 1,215
--------------------------------------------------------------------------------
UCB (EUR) 82,950 2,790
--------------------------------------------------------------------------------
Total Belgium (Cost $9,777) 15,729
----------
DENMARK 0.3%
------------
COMMON STOCKS 0.3%
Tele Danmark A/S 50,380 3,689
--------------------------------------------------------------------------------
Total Denmark (Cost $1,787) 3,689
----------
<PAGE>
FINLAND 5.1%
------------
COMMON STOCKS 5.1%
Nokia (EUR) 1,240,160 71,141
--------------------------------------------------------------------------------
Total Finland (Cost $6,109) 71,141
----------
FRANCE 17.0%
------------
COMMON STOCKS 17.0%
Alcatel Alsthom (EUR) 62,718 14,539
--------------------------------------------------------------------------------
Altran Technologies (EUR) 49,146 10,044
--------------------------------------------------------------------------------
Aventis (EUR) 43,892 2,370
--------------------------------------------------------------------------------
AXA (EUR) 102,028 15,165
--------------------------------------------------------------------------------
Banque National de Paris (EUR) 110,720 8,948
--------------------------------------------------------------------------------
Cap Gemini (EUR) 29,620 5,814
--------------------------------------------------------------------------------
Carrefour (EUR) 31,092 2,015
--------------------------------------------------------------------------------
Cie de St. Gobain (EUR) 47,729 6,513
--------------------------------------------------------------------------------
Danone (EUR) 13,012 2,845
--------------------------------------------------------------------------------
Hermes (EUR) 17,890 2,553
--------------------------------------------------------------------------------
L'Oreal (EUR) 3,170 2,190
--------------------------------------------------------------------------------
Lafarge (EUR) 22,776 1,934
--------------------------------------------------------------------------------
Legrand (EUR) 26,490 4,942
--------------------------------------------------------------------------------
LVMH (EUR) 8,216 3,448
--------------------------------------------------------------------------------
Rhoen Klinikum (EUR) 125,537 6,905
--------------------------------------------------------------------------------
Sanofi Synthelabo (EUR) 303,626 $ 11,331
--------------------------------------------------------------------------------
Schneider Electric (EUR) 37,213 2,436
--------------------------------------------------------------------------------
Societe Generale (EUR) 17,234 3,569
--------------------------------------------------------------------------------
Sodexho Alliance (EUR) 15,505 2,323
--------------------------------------------------------------------------------
<PAGE>
STMicroelectronics (EUR) 86,711 16,491
--------------------------------------------------------------------------------
Television Francaise (EUR) 55,030 37,671
--------------------------------------------------------------------------------
Total Fina (Class B) (EUR) 251,986 38,233
--------------------------------------------------------------------------------
Trader.com (EUR) * 58,240 969
--------------------------------------------------------------------------------
Vivendi (EUR) 317,541 31,408
--------------------------------------------------------------------------------
Total France (Cost $136,063) 234,656
----------
GERMANY 7.9%
------------
COMMON STOCKS 7.9%
Allianz (EUR) 30,880 11,883
--------------------------------------------------------------------------------
Bayer (EUR) 164,112 6,838
--------------------------------------------------------------------------------
Bayerische Vereinsbank (EUR) 208,358 12,899
--------------------------------------------------------------------------------
Deutsche Bank (EUR) 152,804 10,266
--------------------------------------------------------------------------------
Deutsche Telekom (EUR) 181,004 11,747
--------------------------------------------------------------------------------
Epcos (EUR) 66,784 9,441
--------------------------------------------------------------------------------
Gehe (EUR) 228,053 7,091
--------------------------------------------------------------------------------
Infineon Technologies (EUR) * 68,554 4,721
--------------------------------------------------------------------------------
Rhoen Klinikum (EUR) 74,683 2,753
--------------------------------------------------------------------------------
SAP (EUR) 44,350 20,764
--------------------------------------------------------------------------------
Siemens (EUR) 44,452 6,587
--------------------------------------------------------------------------------
Veba (EUR) 73,445 3,686
--------------------------------------------------------------------------------
Total Germany (Cost $82,660) 108,676
----------
GREECE 0.3%
-----------
COMMON STOCKS 0.3%
Panafon Hellenic Telecom 324,640 3,904
--------------------------------------------------------------------------------
Total Greece (Cost $3,297) 3,904
----------
<PAGE>
HUNGARY 0.1%
------------
COMMON STOCKS 0.1%
EGIS 7,048 309
--------------------------------------------------------------------------------
OTPBank GDR(USD)* 25,000 1,120
--------------------------------------------------------------------------------
Total Hungary (Cost $1,386) 1,429
----------
IRELAND 0.4%
------------
COMMON STOCKS 0.4%
SmartForce ADR (USD) * 124,789 $ 6,006
--------------------------------------------------------------------------------
Total Ireland (Cost $3,801) 6,006
----------
ITALY 7.1%
----------
COMMON STOCKS 7.1%
Alleanza Assicurazioni (EUR) 1,068,000 11,049
--------------------------------------------------------------------------------
Banca Intesa (EUR) 417,816 1,538
--------------------------------------------------------------------------------
Banca Popolare di Brescia (EUR) 87,000 7,909
--------------------------------------------------------------------------------
ENI (EUR) 1,633,276 8,122
--------------------------------------------------------------------------------
Mediaset (EUR) 329,000 5,339
--------------------------------------------------------------------------------
Mediolanum (EUR) 410,000 6,802
--------------------------------------------------------------------------------
Sanpaolo IMI (EUR) 288,844 4,044
--------------------------------------------------------------------------------
Tecnost (EUR) 579,000 2,032
--------------------------------------------------------------------------------
Telecom Italia (EUR) 1,176,080 16,444
--------------------------------------------------------------------------------
Telecom Italia Mobile (EUR) 3,096,435 29,557
--------------------------------------------------------------------------------
Unicredito (EUR) 1,360,931 5,518
--------------------------------------------------------------------------------
Total Italy (Cost $65,542) 98,354
----------
<PAGE>
NETHERLANDS 9.8%
----------------
COMMON STOCKS 9.8%
KPN (EUR) 54,757 5,518
--------------------------------------------------------------------------------
ABN Amro (EUR) 99,988 2,059
--------------------------------------------------------------------------------
Akzo Nobel (EUR) 50,548 2,069
--------------------------------------------------------------------------------
ASM Lithography (EUR) 410,100 16,031
--------------------------------------------------------------------------------
CSM (EUR) 120,049 2,063
--------------------------------------------------------------------------------
Equant (EUR) * 180,626 13,982
--------------------------------------------------------------------------------
Fortis NI (EUR) 288,380 7,251
--------------------------------------------------------------------------------
ING Groep (EUR) 439,669 23,990
--------------------------------------------------------------------------------
KPNQwest (EUR) 35,960 1,494
--------------------------------------------------------------------------------
Lycos Europe (EUR) * 60,800 929
--------------------------------------------------------------------------------
Philips Electronics (EUR) 680,976 30,378
--------------------------------------------------------------------------------
Royal Dutch Petroleum (EUR) 226,526 13,056
--------------------------------------------------------------------------------
TNT Post Groep (EUR) 32,998 $ 720
--------------------------------------------------------------------------------
United Pan-Europe Communications (EUR) * 111,236 4,048
--------------------------------------------------------------------------------
Wolters Kluwer (EUR) 406,170 9,586
--------------------------------------------------------------------------------
World Online International (EUR) * 168,470 2,267
--------------------------------------------------------------------------------
Total Netherlands (Cost $89,844) 135,441
----------
NORWAY 0.4%
-----------
COMMON STOCKS 0.4%
Norsk Hydro 47,730 1,745
--------------------------------------------------------------------------------
Orkla (Class A) 272,222 4,209
--------------------------------------------------------------------------------
Total Norway (Cost $4,404) 5,954
----------
PORTUGAL 0.2%
-------------
COMMON STOCKS 0.2%
Jeronimo Martins (EUR) 147,694 2,634
--------------------------------------------------------------------------------
Total Portugal (Cost $1,244) 2,634
----------
<PAGE>
SPAIN 4.3%
----------
COMMON STOCKS 4.3%
Banco Bilbao Vizcaya Argentaria (EUR) 588,123 8,020
--------------------------------------------------------------------------------
Banco Santander Central Hispano (EUR) 1,214,916 12,669
--------------------------------------------------------------------------------
Empresa Nacional de Electricidad (EUR) 242,181 5,253
--------------------------------------------------------------------------------
Gas Natural (EUR) 54,240 906
--------------------------------------------------------------------------------
Iberdrola (EUR) 218,429 2,802
--------------------------------------------------------------------------------
Repsol (EUR) 298,293 6,102
--------------------------------------------------------------------------------
Telefonica (EUR) 1,084,633 24,138
--------------------------------------------------------------------------------
Total Spain (Cost $37,127) 59,890
----------
SWEDEN 5.5%
-----------
COMMON STOCKS 5.5%
ABB 47,498 5,298
--------------------------------------------------------------------------------
Assa Abloy (Class B) 70,461 1,430
--------------------------------------------------------------------------------
Atlas Copco (Class B) 164,610 3,764
--------------------------------------------------------------------------------
Electrolux (Class B) 490,520 $ 8,288
--------------------------------------------------------------------------------
Hennes & Mauritz (Class B) 402,510 10,684
--------------------------------------------------------------------------------
LM Ericsson 210,580 18,719
--------------------------------------------------------------------------------
Nordic Baltic Holding 1,597,625 10,068
--------------------------------------------------------------------------------
Nordic Baltic Holding (DKK) * 303,498 1,889
--------------------------------------------------------------------------------
Sandvik (Class B) 126,500 3,019
--------------------------------------------------------------------------------
Securitas (Class B) 526,584 13,626
--------------------------------------------------------------------------------
Total Sweden (Cost $49,677) 76,785
----------
<PAGE>
SWITZERLAND 6.3%
----------------
COMMON STOCKS 6.3%
ABB 79,389 8,908
--------------------------------------------------------------------------------
Adecco 27,204 22,321
--------------------------------------------------------------------------------
Credit Suisse Group 43,345 7,829
--------------------------------------------------------------------------------
Nestle 9,506 16,757
--------------------------------------------------------------------------------
Roche Holdings 1,818 18,986
--------------------------------------------------------------------------------
Swisscom 6,672 2,352
--------------------------------------------------------------------------------
UBS 40,178 9,843
--------------------------------------------------------------------------------
Total Switzerland (Cost $58,581) 86,996
----------
UNITED KINGDOM 29.5%
--------------------
COMMON STOCKS 29.5%
Abbey National 275,864 3,148
--------------------------------------------------------------------------------
AstraZeneca Group 462,237 19,352
--------------------------------------------------------------------------------
BG Group 449,933 2,706
--------------------------------------------------------------------------------
BP Amoco 916,000 7,908
--------------------------------------------------------------------------------
Cable & Wireless 1,726,410 28,627
--------------------------------------------------------------------------------
Cadbury Schweppes 1,913,306 13,107
--------------------------------------------------------------------------------
Centrica 526,640 1,878
--------------------------------------------------------------------------------
Compass Group 1,380,000 19,595
--------------------------------------------------------------------------------
David S. Smith 593,416 1,257
--------------------------------------------------------------------------------
Diageo 1,923,297 15,556
--------------------------------------------------------------------------------
Electrocomponents 569,000 5,714
--------------------------------------------------------------------------------
GKN 190,000 2,633
--------------------------------------------------------------------------------
Glaxo Wellcome 1,094,540 33,435
--------------------------------------------------------------------------------
Hays 132,000 913
--------------------------------------------------------------------------------
Hilton Group 412,000 $ 1,726
--------------------------------------------------------------------------------
John Laing (Class A) 302,152 1,021
--------------------------------------------------------------------------------
<PAGE>
Kingfisher 1,981,462 16,220
--------------------------------------------------------------------------------
Marconi 536,950 6,688
--------------------------------------------------------------------------------
Reed International 2,407,569 16,711
--------------------------------------------------------------------------------
Rio Tinto 456,848 7,077
--------------------------------------------------------------------------------
Royal Bank of Scotland Group 2,186,221 33,902
--------------------------------------------------------------------------------
Safeway 284,600 959
--------------------------------------------------------------------------------
Serco Group 663,000 4,738
--------------------------------------------------------------------------------
Shell Transport & Trading 3,652,000 29,567
--------------------------------------------------------------------------------
SmithKline Beecham 2,030,460 27,710
--------------------------------------------------------------------------------
Standard Chartered 368,600 4,976
--------------------------------------------------------------------------------
Tesco 2,003,500 6,808
--------------------------------------------------------------------------------
Tomkins 2,708,426 8,318
--------------------------------------------------------------------------------
Unilever * 1,775,607 10,643
--------------------------------------------------------------------------------
United News & Media 622,390 8,091
--------------------------------------------------------------------------------
Vodafone Airtouch 13,638,892 62,537
--------------------------------------------------------------------------------
WPP Group 276,000 4,448
--------------------------------------------------------------------------------
Total United Kingdom (Cost $362,242) 407,969
----------
SHORT-TERM INVESTMENTS 4.4%
---------------------------
MONEY MARKET FUNDS 4.4%
Reserve Investment Fund, 6.18% # 60,936,764 60,937
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $60,937) 60,937
----------
Total Investments in Securities
99.7% of Net Assets (Cost $974,478) $ 1,380,190
----------
<PAGE>
FUTURES CONTRACTS
-----------------
In thousands
Contract Unrealized
Expiration Value Gain (Loss)
---------- --------- -----------
Long, 125 FTSE 100 Index Contracts
$740,000 of cash pledged as initial margin 6/00 $ 12,425 $ (702)
Long, 39 DAX Index Contracts,
$450,000 of cash pledged as initial margin 6/00 6,613 (363)
Long, 99 CAC 40 Index Contracts,
$315,000 of cash pledged as initial margin 6/00 5,784 76
Long, 12 MIB 30 Index Contracts,
$285,000 of cash pledged as initial margin 6/00 2,492 (100)
Long, 133 OMX Index Contracts,
$25,000 of cash pledged as initial margin 5/00 2,125 182
Long, 21 IBEX 35 Index Contracts,
$235,000 of cash pledged as initial margin 5/00 2,205 (20)
Net payments (receipts) of variation
margin to date 1,840
----------
Variation margin receivable
(payable) on open futures contracts 913
----------
Other Assets Less Liabilities 2,780
----------
NET ASSETS $ 1,383,883
----------
* Non-income producing
# Seven-day yield
ADR American depository receipt
EUR Euro
GDR Global depository receipt
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price European Stock Fund
--------------------------------------------------------------------------------
Unaudited April 30, 2000
STATEMENT OF ASSETS AND LIABILITIES
----------------------------------- In thousands
ASSETS
------
Investments in securities, at value (cost $974,478) $ 1,380,190
Securities lending collateral 372,115
Other assets 9,842
----------
Total assets 1,762,147
----------
<PAGE>
LIABILITIES
-----------
Obligation to return securities lending collateral 372,115
Other liabilities 6,149
----------
Total liabilities 378,264
----------
NET ASSETS $ 1,383,883
----------
NET ASSETS CONSIST OF:
----------------------
Accumulated net investment income - net of distributions $ 1,017
Accumulated net realized gain/loss - net of distributions 113,441
Net unrealized gain (loss) 404,523
Paid-in-capital applicable to 60,034,009 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 864,902
----------
NET ASSETS $ 1,383,883
----------
NET ASSET VALUE PER SHARE $ 23.05
----------
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price European Stock Fund
--------------------------------------------------------------------------------
Unaudited
STATEMENT OF OPERATIONS
-----------------------
In thousands 6 Months
Ended
4/30/00
-------
INVESTMENT INCOME (LOSS)
------------------------
INCOME
Dividend (net of foreign taxes of $953) $ 6,856
Interest 1,016
Securities lending 564
----------
Total income 8,436
----------
<PAGE>
EXPENSES
Investment management 5,961
Shareholder servicing 1,019
Custody and accounting 251
Prospectus and shareholder reports 99
Registration 37
Legal and audit 10
Directors 4
Miscellaneous 8
----------
Total expenses 7,389
----------
Net investment income (loss) 1,047
----------
REALIZED AND UNREALIZED GAIN (LOSS)
-----------------------------------
NET REALIZED GAIN (LOSS)
Securities 118,143
Futures 892
Foreign currency transactions (1,037)
Net realized gain (loss) 117,998
----------
Change in net unrealized gain or loss
Securities 64,804
Futures (927)
Other assets and liabilities
denominated in foreign currencies (228)
----------
Change in net unrealized gain or loss 63,649
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) 181,647
----------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 182,694
----------
The accompanying notes are an integral part of these financial statements.
<PAGE>
================================================================================
T. Rowe Price European Stock Fund
--------------------------------------------------------------------------------
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
----------------------------------
In thousands
6 Months Year
Ended Ended
4/30/00 10/31/99
------- --------
INCREASE (DECREASE) IN NET ASSETS
---------------------------------
Operations
Net investment income (loss) $ 1,047 $ 14,076
Net realized gain (loss) 117,998 115,710
Change in net unrealized gain or loss 63,649 24,512
-------------------------
Increase (decrease) in net assets from operations 182,694 154,298
-------------------------
Distributions to shareholders
Net investment income (8,554) (17,725)
Net realized gain (116,259) (138,004)
Decrease in net assets from distributions (124,813) (155,729)
-------------------------
Capital share transactions *
Shares sold 296,821 504,968
Distributions reinvested 119,275 149,017
Shares redeemed (472,262) (682,394)
-------------------------
Increase (decrease) in net assets from capital
share transactions (56,166) (28,409)
-------------------------
NET ASSETS
----------
Increase (decrease) during period 1,715 (29,840)
Beginning of period 1,382,168 1,412,008
-------------------------
END OF PERIOD $ 1,383,883 $ 1,382,168
-------------------------
*Share information
Shares sold 12,575 23,161
Distributions reinvested 5,390 7,202
Shares redeemed (19,936) (31,438)
-------------------------
Increase (decrease) in shares outstanding (1,971) (1,075)
The accompanying notes are an integral part of these financial statements.
<PAGE>
================================================================================
T. Rowe Price European Stock Fund
--------------------------------------------------------------------------------
Unaudited April 30, 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 European Stock Fund (the fund), a
diversified, open-end management investment company, is one of the portfolios
established by the corporation and commenced operations on February 28, 1990.
The fund seeks long-term growth of capital and, secondarily, current income by
investing primarily in the common stocks of large and small European companies.
The accomkanying financial statements are prepared in accordance with
generally accepted accounting principles for the investment company industry;
these principles may require the use of estimates by fund management.
VALUATION Equity securities are valued at the last quoted sales price at
the time the valuations are made. A security which is listed or traded on more
than one exchange is valued at the quotation on the exchange determined to be
the primary market for such security.
Investments in mutual funds are valued at the closing net asset value per
share of the mutual fund on the day of valuation. Financial futures contracts
are valued at closing settlement prices.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
CURRENCY TRANSLATION Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains and losses is reflected as a component of such gains and losses.
<PAGE>
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 those determined in accordance with generally
accepted accounting principles. Credits earned on daily uninvested cash balances
at the custodian are used to reduce the fund's custody charges. Payments ("va
riation margin") made or received by the fund to settle the daily fluctuations
in the value of futures contracts are recorded as unrealized gains or losses
until the contracts are closed. Unrealized gains and losses on futures contracts
are included in Other assets and Other liabilities, respectively, and in Change
in net unrealized gain or loss in the accompanying financial statements.
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.
FUTURES CONTRACTS April 30, 2000, the fund was a party to futures
contracts, which provide for the future sale by one party and purchase by
another of a specified amount of a specific financial instrument at an agreed
upon price, date, time, and place. Risks arise from possible illiquidity of the
futures market and from movements in security and currency values.
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 April 30, 2000, the value of
loaned securities was $362,665,000; aggregate collateral consisted of
$372,115,000 in the securities lending collateral pool and U.S. government
securities valued at $542,000.
OTHER Purchases and sales of portfolio securities, other than short-term
securities, aggregated $223,957,000 and $447,367,000, respectively, for the six
months ended April 30, 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.
At April 30, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled $974,478,000.
Net unrealized gain aggregated $405,712,000 at period-end, of which $458,209,000
related to appreciated investments and $52,497,000 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 and withheld from
dividend and interest income.
NOTE 5 - RELATED PARTY TRANSACTIONS
The fund is managed by Rowe Price-Fleming International, Inc. (the
manager), which is owned by subsidiaries of T. Rowe Price Associates, Inc.
(Price Associates) and Robert Fleming Holdings Limited (Fleming). Price
Associates has entered into an agreement with Fleming to purchase Fleming's
interest in the manager.
The investment management agreement between the fund and the manager
provides for an annual investment management fee, of which $934,000 was payable
at April 30, 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 April 30, 2000, and for the six months 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. prov ides subaccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $848,000 for the six months
ended April 30, 2000, of which $191,000 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, T. Rowe Price, and, in the case of T. Rowe Price Spectrum
International, Rowe Price-Fleming International. Spectrum International Fund
held approximately 2.0% of the outstanding shares of the fund at April 30, 2000.
For the six months then ended, the fund was allocated $32,000 of Spectrum
expenses, $6,000 of which was payable at period-end.
<PAGE>
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the six months ended April 30, 2000, totaled
$974,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the six months ended April 30, 2000, the fund, in the ordinary
course of business, placed security purchase and sale orders aggregating
$33,950,000 with certain affiliates of the manager and paid commissions of
$50,000 related thereto.
NOTE 6 - INTERFUND BORROWING LENDING
Pursuant to the fund's prospectus, the fund may borrow up to 33 1/3% of its
total assets. The fund is party to an interfund borrowing agreement between the
fund and other T. Rowe Price-sponsored mutual funds, which permits it to borrow
or lend cash, at rates beneficial to both the borrowing and lending funds. Loans
totaling 10% or more of a borrowing fund's total assets are collateralized at
102% of the value of the loan; loans of less than 10% are unsecured. During the
six months ended April 30, 2000, the fund borrowed amounts ranging from
$2,900,000to $20,600,000, on 8 days, at a weighted average rate of 5.95%. There
were no borrowings outstanding at April 30, 2000.
================================================================================
T. ROWE PRICE SHAREHOLDER SERVICES
----------------------------------
INVESTMENT SERVICES AND INFORMATION
-----------------------------------
KNOWLEDGEABLE SERVICE REPRESENTATIVES
-------------------------------------
BY PHONE 1-800-225-5132 Available Monday through Friday from 8
a.m. to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
IN PERSON Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
----------------
CHECKING Available on most fixed income funds ($500 minimum).
AUTOMATIC INVESTING From your bank account or paycheck.
AUTOMATIC WITHDRAWAL Scheduled, automatic redemptions.
DISTRIBUTION OPTIONS Reinvest all, some, or none of your
distributions.
AUTOMATED 24-HOUR SERVICES Including Tele*AccessRegistration Mark
and the T. Rowe Price Web site on the Internet. Address:
www.troweprice.com
<PAGE>
BROKERAGE SERVICES*
-------------------
INDIVIDUAL INVESTMENTS Stocks, bonds, options, precious metals,
and other securities at a savings over full-service commission
rates. **
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 September 1999 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
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
<PAGE>
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Tax-Efficient Growth
Total Equity Market Index
Value
INTERNATIONAL/GLOBAL
Emerging Markets Stock
European Stock
Global Stock
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
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
<PAGE>
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 Short-Term Tax-Free Bond
Virginia Tax-Free Bond
INTERNATIONAL/GLOBAL
Emerging Markets Bond
Global 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
<PAGE>
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. 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.
================================================================================
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.trowep
rice.com.
<PAGE>
ADVISORY SERVICES
-----------------
T. ROWE PRICE RETIREMENT INCOME MANAGERsm hel ps 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
INSIGHTS REPORTS
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
SOFTWARE PACKAGES
T. Rowe Price Retirement Planning
AnalyzerTM 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 AnalyzerTM
CD-ROM or diskette, free. To order,
please call 1-800-469-5304.
<PAGE>
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.
================================================================================
OR 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
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.
<PAGE>
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site
BALTIMORE AREA
DOWNTOWN
101 East Lombard Street
OWINGS MILLS
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
4410 ArrowsWest Drive
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. F79-051 4/30/00
