<PAGE>
T. Rowe Price
--------------------------------------------------------------------------------
Annual Report
European Stock Fund
--------------------------------------------------------------------------------
October 31, 2000
================================================================================
REPORT HIGHLIGHTS
-----------------
EUROPEAN STOCK FUND
-------------------
* A declining euro and losses among technology-related sectors hurt
Europe' s markets.
* Your fund declined for the period, but modest exposure to technology
and telecommunications helped limit the damage.
* The fund's best results came from steady-growth sectors, such as
financials, food and beverage, and pharmaceuticals.
* We envision positive change in Europe, but we are still concerned
about high valuations.
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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
-------------------
Persistent weakness in the euro and a sharp letdown among technology,
media, and telecommunications stocks weighed heavily on Europe's stock markets.
Your fund declined for the six-month period, but significantly helped its
showing by limiting exposure to high-priced tech issues.
PERFORMANCE COMPARISON
----------------------
Periods Ended 10/31/00 6 Months 12 Months
---------------------- -------- ---------
European Stock Fund -5.90% 6.28%
MSCI Europe Index -6.68 1.21
Lipper European Funds Average -8.22 12.53
Our -5.90% return for the past six months was better than both the MSCI
Europe Index and our Lipper peer group average. Yet this is only a modest
consolation for investors. Losses can be principally accounted for by the very
weak performance of the euro, which declined nearly 7% in value against the U.S.
dollar (see the story on page 2 of this report for more details). Without this
negative currency translation, your fund's results would have been in the black.
Our superior showing against our peers for the six months owed mostly to a
decision last year not to purchase technology, media, and telecom stocks that we
felt were excessively priced, regardless of their potential or short-term gains.
This policy clearly put us behind our peers at the end of 1999 and early in
2000, and is still evident in the fund's 12-month results. As the increases in
these sectors unwound over the last six months, however, we came to feel that
our caution was prudent in the longer term, and results have borne this out.
<PAGE>
Although the euro has waged a losing battle so far to keep its value, one
of the intended effects of its introduction has come to pass: a declining
emphasis on national borders. In part because of the euro, but also because of
the pressures of globalization, the performance of a stock is increasingly
determined by its industry sector rather than its country of origin. For that
reason, our reports on the fund will highlight sector activity, with less stress
on the performance of specific country markets within Europe.
***********************************************************
CAN THE EURO ALSO RISE?
-----------------------
Understanding why the euro has been weak helps
explain why it should recover. Several factors
have pushed the euro--the common currency for 11
countries in Continental Europe--down 27% since
its launch on January 1, 1999. Chris Rothery, a
portfolio manager at T. Rowe Price International
(TRPI), thinks each of these factors could
moderate or reverse in the next year.
Capital flows into the U.S. have risen sharply in
recent years as European companies acquired an
unprecedented number of U.S. businesses and as
Europeans invested in U.S. financial assets. Both
trends are moderating, however. This year's
weakness in the U.S. stock market has made
investment here less attractive. "The Nasdaq
bubble appears to have been pricked, which should
also take some steam out of the dollar," says
Rothery.
The persistent strength of the U.S. economy has
also hurt the euro, as it makes the U.S. a more
attractive place to invest. But U.S. growth has
showed signs of slowing recently, narrowing the
advantage over European growth.
Higher-yielding U.S. government bonds also lured
investors. Recently, however, long-term U.S. rates
have declined while those in the euro zone have
remained stable.
Since the euro's launch, oil prices have more than
tripled, and Europe's demand for the dollars
needed to pay for oil has surged. But oil prices
are stabilizing and expected to trend lower.
<PAGE>
While the Federal Reserve is respected and well
established, the European Central Bank (ECB) has
less than two years' experience. ECB officials
have aggravated investors' uncertainty by making
confusing remarks. Lately, ECB officials have
become more politically astute and are expected to
make more careful statements.
Though TRPI portfolio managers have been surprised
by the extent of the euro's decline, they point
out that markets often overshoot. It would be a
mistake for U.S. investors to shun euro assets,
says Rothery.
John Ford, TRPI's chief investment officer, sees
Europe at an earlier stage of the economic cycle
than the U.S., with greater room for productivity
improvement. "If we can get into a virtuous cycle,
then investors can benefit from better economic
performance, higher returns on capital, and a
strong chance of currency appreciation to boot,"
Ford says.
[Chart shows the euro--the common currency of 11
countries in Continental Europe--has declined
steadily in value versus the U.S. dollar since
its January 1, 1999, launch.]
***********************************************************
MARKET AND PORTFOLIO REVIEW
---------------------------
Economic indicators suggest that, after accelerating in the early part of
2000, activity in Europe is gently slowing in the second half. Euro zone GDP
growth peaked in the second quarter, rising 3.7% year-over-year. Rising oil
prices and currency weakness have spurred higher prices for some products across
Europe, but fundamental inflation pressures remain subdued as global competition
continues to soften prices. Even so, the European Central Bank raised interest
rates. In part, its goals were to intervene in the markets and support the euro,
but the effort had little effect. The euro's weakness was exacerbated by large
capital flows from Europe to the U.S. to support corporate acquisitions, such as
Unilever's purchase of American-based Best Foods for $24 billion.
<PAGE>
MARKET PERFORMANCE
------------------
Six Months Local Local Currency U.S.
Ended 10/31/00 Currency vs. U.S. Dollars Dollars
-------------- -------- ---------------- -------
Belgium 12.34% -6.98% 4.50%
France 0.66 -6.99 -6.37
Germany -5.58 -6.98 -12.18
Italy 9.53 -6.98 1.88
Netherlands 6.37 -6.98 -1.06
Spain -4.07 -6.98 -10.77
Sweden -18.52 -10.65 -27.19
Switzerland 7.27 -4.32 2.65
United Kingdom 4.74 -7.20 -2.81
Source: RIMES Online, using MSCI indices.
Telecommunications
------------------
Investor attention continued to be focused on the technology, media, and
telecom sectors even as they weakened during the period. Telecoms were plagued
by investor concerns and plummeted dramatically. The selling was triggered as
European governments began to auction off the licenses that telecom operators
need to provide third-generation, Internet-compatible mobile telephone services.
In the U.K. and Germany, companies paid unexpectedly high prices, and,
particularly in Germany, more licenses than expected were sold, indicating
intense future competition. Stocks such as Germany's DEUTSCHE TELEKOM, in which
we have a small position, fell as investors worried about the high costs for
services that will not be rolled out until 2002. In addition, there were fears
that until the new services are launched, mobile telecom growth may slow because
European penetration is already around 50%. Finally, investors and credit rating
agencies frowned on the debt load that the telecoms have taken on.
Diversified telecoms performed significantly worse than mobile telecoms
because earnings from traditional fixed-line services have fallen. Fortunately,
your portfolio had a relatively limited exposure to fixed-line services. Mobile
telecoms, including the U.K's VODAFONE GROUP and Italy's TELECOM ITALIA MOBILE,
had strong market positions and subscriber growth and held up far better.
However, we recently trimmed our rising exposure to Vodafone on concerns over
its ability to deliver the expected profits when subscriber growth slows in
2001.
<PAGE>
Technology
----------
INDUSTRY DIVERSIFICATION
------------------------
Percent of Net Assets
4/30/00 10/31/00
------- --------
Services 37.8% 28.6%
Finance 16.8 22.1
Consumer Goods 16.8 16.7
Capital Equipment 11.0 16.5
Energy 8.6 9.2
Materials 1.8 2.0
All Other 2.5 1.7
Reserves 4.7 3.2
Total 100.0% 100.0%
The challenges to telecom company growth and profitability had direct
implications for technology hardware companies that have enjoyed strong demand
from telecom-company customers. Mobile handset suppliers, component
manufacturers, and equipment and infrastructure producers declined after
extended periods of extraordinary gains. Despite increasing its market share,
Finland's world-leading handset manufacturer Nokia, our second-largest holding,
fell when it announced it would miss third-quarter earnings estimates. The stock
rebounded when it became clear that the company was back on track to reach
fourth-quarter targets. Results for the handset businesses at Sweden's LM
Ericsson and the Netherlands' Philips Electronics were disappointing, and news
from other players in the market also indicated that demand for handsets, though
healthy, was softening.
A weaker outlook for handsets and reports of poor PC sales in Europe hurt
businesses that produce components, such as semiconductors. Netherlands
semiconductor equipment manufacturers ASM Lithography and Philips (which has a
major semiconductor business), as well as French semiconductor producer
STMicroelectronics, all fell. Despite excellent results and full order books,
disappointments from technology bellwethers such as Intel in the U.S. adversely
affected their performance. Optical network equipment producers performed
somewhat better, and while there are a limited number of such companies to
choose from in Europe, France's Alcatel benefited fund results. It is worth
noting that, interim disappointments aside, the earnings growth of Europe's
technology companies in general remained far superior to that of companies in
other sectors.
Media
-----
Media stocks also suffered after their strong rise at the beginning of the
year. Investors were chiefly concerned with the sustainability of ad revenues in
this sector for two main reasons: first, the "dot-com" phenomenon, where vast
amounts of money were being spent on advertising and promotion, collapsed;
second, Europe's economy appears to be in a slowing trend for the remainder of
2000. French broadcaster Societe Television Francaise 1 fell from its lofty
perch, but we believe it will continue to benefit from improving market
dynamics. U.K. publisher Reed International, which had performed poorly six
months ago due to its lack of Internet services, rose strongly in the recent
period. New management, progress in migrating publications to the Web, and the
proposed acquisition of U.S. company Harcourt all supported Reed's rise. Longer
term, the liberalization of advertising in Europe and increasing demand for
market research and entertainment media bode well for the sector.
<PAGE>
Financial Services
------------------
Our insistence on building a portfolio around companies with demonstrable
growth and reasonable valuations was of little help during last year's
technology craze, but it significantly cushioned performance this year. Among
the leading performers during the period were financial stocks. Financial
companies continued to restructure and make acquisitions. Meanwhile, rising
interest rates allowed them to improve their margins while lending growth
remained buoyant. Strong results lifted Royal Bank of Scotland Group, our
largest holding in the sector, as it reaped the benefits of restructuring and
cost-cutting after last year's acquisition of U.K. bank NatWest. In Italy, banks
Banca Intesa and UniCredito Italiano performed well. Banca Intesa has a new,
highly regarded CEO and has gained full control of a large subsidiary, enabling
the company to integrate its businesses, cut costs, and reap synergies.
***********************************************************
Geographic Diversification as of 10/31/00. Pie chart with following
segments - United Kingdom 33%; France 17%; Netherlands 9%; Germany, 7%;
Switzerland 7%; Italy 8%; Sweden 5%; Other and Reserves 14%.
***********************************************************
Other European banks also made acquisitions to strengthen their market
positions and leverage their expertise. For example, Dutch banking and insurance
group ING Groep acquired U.S. insurer Reliastar and Aetna's financial services
businesses, giving it an inside track in U.S. life and annuity premiums. Swiss
bank UBS acquired U.S. financial services group PaineWebber for $12 billion,
while Spanish banks Banco Santander Central Hispano and Banco Bilbao Vizcaya
Argentaria acquired Mexican banks to extend their presence in the rapidly
growing Latin American market.
Other Sectors
-------------
With tech stocks mired in uncertainty, investors showed a pronounced
preference for steady-growth stocks in sectors such as pharmaceuticals and food
and beverage. Our pharmaceutical holdings, particularly the U.K.'s AstraZeneca
Group and France's Sanofi-Synthelabo, rose strongly. Healthy sales growth and
cost-cutting pushed Sanofi higher, while AstraZeneca climbed as new drugs with
encouraging prospects were approved or launched.
Our food and beverage stocks, such as Switzerland's Nestle, France's Groupe
Danone, and the U.K.'s Diageo, also advanced. These companies' inexpensive
valuations attracted investors, especially as prospects in the sector improved.
For example, increased demand from emerging markets, together with cost-cutting
and sales of noncore, lower-return businesses, helped Nestle's earnings. Diageo
announced plans to merge its U.S. food business, Pillsbury, with General Mills
to form the largest publicly owned U.S. food business and the world's
fourth-largest food company.
<PAGE>
OUTLOOK
-------
Despite recent negative returns, fundamental change is taking place in
Europe. We expect that an inexpensive euro, falling unemployment, and looser
fiscal policy going forward will contribute to healthy growth into 2001.
Furthermore, structural changes are spreading in the region: for example,
Germany's lead in fiscal and pension reforms is now being followed in France and
Italy. We expect this trend to continue, with related positive effects on the
region's long-term global competitiveness. We also think that, eventually,
economic fundamentals will support a strengthening of the euro. Even so, we
remain concerned about valuations in the short term, particularly in
tech-related sectors. Since growth expectations are being downgraded throughout
the region and within many sectors, we remain somewhat cautiously positioned.
Respectfully submitted,
/s/
John R. Ford
President, T. Rowe Price International Funds, Inc.
November 24, 2000
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T. Rowe Price European Stock Fund
---------------------------------
PORTFOLIO HIGHLIGHTS
--------------------
TWENTY-FIVE LARGEST HOLDINGS
----------------------------
Percent of
Net Assets
10/31/00
-------------------------------------------------------------------------
Vodafone Group, United Kingdom 4.7%
-------------------------------------------------------------------------
Nokia, Finland 3.8
-------------------------------------------------------------------------
Royal Bank of Scotland Group, United Kingdom 3.6
-------------------------------------------------------------------------
TotalFinaElf, France 2.9
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Glaxo Wellcome, United Kingdom 2.5
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Shell Transport & Trading, United Kingdom 2.4
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ING Groep, Netherlands 2.3
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Philips Electronics, Netherlands 2.2
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<PAGE>
Telecom Italia Mobile, Italy 2.1
-------------------------------------------------------------------------
SmithKline Beecham, United Kingdom 2.1
-------------------------------------------------------------------------
Cable & Wireless, United Kingdom 2.0
-------------------------------------------------------------------------
Societe Television Francaise 1, France 1.9
-------------------------------------------------------------------------
Vivendi, France 1.9
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Reed International, United Kingdom 1.8
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AstraZeneca Group, United Kingdom 1.7
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LM Ericsson, Sweden 1.6
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Nestle, Switzerland 1.6
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Alcatel, France 1.5
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Adecco, Switzerland 1.5
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Telefonica, Spain 1.5
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Diageo, United Kingdom 1.5
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Roche Holding, Switzerland 1.3
-------------------------------------------------------------------------
Sanofi-Synthelabo, France 1.3
-------------------------------------------------------------------------
Fortis, Netherlands/Belgium 1.3
-------------------------------------------------------------------------
AXA, France 1.2
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Total 52.2%
Note: Table excludes reserves.
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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.
<PAGE>
Lipper European
MSCI Europe Index Funds Average European Stock Fund
10/31/90 10000 10000 10000
10/31/91 10747 10197 10224
10/31/92 10597 9583 9795
10/31/93 13372 12045 12113
10/31/94 14930 13442 13609
10/31/95 16972 14820 15569
10/31/96 20017 17649 18958
10/31/97 25302 21656 22806
10/31/98 31229 25180 27396
10/31/99 35242 28796 30530
10/31/00 35669 31000 32447
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 10/31/00 1 Year 3 Years 5 Years 10 Years
---------------------- ------ ------- ------- --------
European Stock Fund 6.28% 12.47% 15.82% 12.49%
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
T. Rowe Price European Stock 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 $ 22.29 $ 22.38 $ 19.84 $ 16.93 $ 14.35
--------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.18 0.23 0.28 0.25 0.25
Net realized and
unrealized gain (loss) 1.26 2.14 3.52 3.12 2.79
--------------------------------------------------------------------------------
Total from
investment activities 1.44 2.37 3.80 3.37 3.04
--------------------------------------------------------------------------------
Distributions
Net investment income (0.14) (0.28) (0.25) (0.26) (0.21)
Net realized gain (1.90) (2.18) (1.01) (0.20) (0.25)
--------------------------------------------------------------------------------
Total distributions (2.04) (2.46) (1.26) (0.46) (0.46)
--------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 21.69 $ 22.29 $ 22.38 $ 19.84 $ 16.93
<PAGE>
Ratios/Supplemental Data
------------------------
Total return* 6.28% 11.44% 20.12% 20.30% 21.76%
--------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 1.02% 1.05% 1.05% 1.06% 1.12%
--------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.71% 0.97% 1.39% 1.41% 1.81%
--------------------------------------------------------------------------------
Portfolio turnover rate 24.5% 15.7% 26.8% 17.5% 14.1%
--------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 1,250 $ 1,382 $ 1,412 $ 984 $ 705
--------------------------------------------------------------------------------
* 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.
================================================================================
T. Rowe Price European Stock Fund
--------------------------------- October 31, 2000
PORTFOLIO OF INVESTMENTS
------------------------ Shares Value
In thousands
BELGIUM 1.4%
Common Stocks 1.4%
Dexia (EUR) 45,292 $ 6,807
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Fortis B (EUR) 224,939 6,891
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Societe Europeenne des Satellites (Class A) (EUR) 7,537 1,004
--------------------------------------------------------------------------------
UCB (EUR) 82,950 2,956
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Total Belgium (Cost $9,568) 17,658
--------------------------------------------------------------------------------
DENMARK 0.2%
Common Stocks 0.2%
Tele Danmark 50,380 2,384
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Total Denmark (Cost $1,787) 2,384
--------------------------------------------------------------------------------
FINLAND 3.8%
Common Stocks 3.8%
Nokia (EUR) 1,159,670 47,719
--------------------------------------------------------------------------------
Total Finland (Cost $4,001) 47,719
--------------------------------------------------------------------------------
<PAGE>
FRANCE 16.9%
Common Stocks 16.9%
Alcatel (EUR) 313,590 19,133
--------------------------------------------------------------------------------
Altran Technologies (EUR) 43,680 8,929
--------------------------------------------------------------------------------
Aventis (EUR) 123,677 8,921
--------------------------------------------------------------------------------
Aventis (DAX Exchange) (EUR) 42,112 3,020
--------------------------------------------------------------------------------
AXA (EUR) 117,599 15,568
--------------------------------------------------------------------------------
BNP Paribas (EUR) 109,190 9,414
--------------------------------------------------------------------------------
Cap Gemini (EUR) 26,270 4,191
--------------------------------------------------------------------------------
Compagnie de Saint Gobain (EUR) 45,559 6,027
--------------------------------------------------------------------------------
Groupe Danone (EUR) 24,014 3,358
--------------------------------------------------------------------------------
Hermes International (EUR) 17,890 2,414
--------------------------------------------------------------------------------
L'Oreal (EUR) 29,260 2,235
--------------------------------------------------------------------------------
Lafarge (EUR) 21,276 1,571
--------------------------------------------------------------------------------
Legrand (EUR) 26,490 4,271
--------------------------------------------------------------------------------
LVMH (EUR) 30,630 2,235
--------------------------------------------------------------------------------
Sanofi-Synthelabo (EUR) 303,626 15,975
--------------------------------------------------------------------------------
Schneider Electric (EUR) 35,403 $ 2,306
--------------------------------------------------------------------------------
Societe Generale (EUR) 68,936 3,914
--------------------------------------------------------------------------------
Societe Television Francaise 1 (EUR) 440,500 24,036
--------------------------------------------------------------------------------
Sodexho Alliance (EUR) 15,505 2,428
--------------------------------------------------------------------------------
STMicroelectronics (EUR) 229,223 11,564
--------------------------------------------------------------------------------
TotalFinaElf (Class B) (EUR) 251,986 36,053
--------------------------------------------------------------------------------
Trader.com (EUR) * 58,240 491
--------------------------------------------------------------------------------
Vivendi (EUR) 323,361 23,242
--------------------------------------------------------------------------------
Total France (Cost $130,150) 211,296
--------------------------------------------------------------------------------
<PAGE>
GERMANY 6.6%
Common Stocks 6.6%
Allianz (EUR) 30,880 10,470
--------------------------------------------------------------------------------
Bayer (EUR) 164,112 7,123
--------------------------------------------------------------------------------
Bayerische Hypo-und Vereinsbank (EUR) 208,358 11,440
--------------------------------------------------------------------------------
Deutsche Bank (EUR) 151,094 12,370
--------------------------------------------------------------------------------
Deutsche Telekom (EUR) 48,042 1,804
--------------------------------------------------------------------------------
E.On (EUR) 73,445 3,732
--------------------------------------------------------------------------------
Epcos (EUR) * 66,784 5,072
--------------------------------------------------------------------------------
Gehe (EUR) 214,553 7,811
--------------------------------------------------------------------------------
Rhoen-Klinikum (EUR) 52,303 2,852
--------------------------------------------------------------------------------
SAP (EUR) 86,960 14,309
--------------------------------------------------------------------------------
Siemens (EUR) 44,452 5,660
--------------------------------------------------------------------------------
Total Germany (Cost $63,472) 82,643
--------------------------------------------------------------------------------
GREECE 0.3%
Common Stocks 0.3%
Cosmote Mobile Communication * 259,690 1,947
--------------------------------------------------------------------------------
Panafon Hellenic Telecom 240,300 1,997
--------------------------------------------------------------------------------
Total Greece (Cost $4,470) 3,944
--------------------------------------------------------------------------------
HUNGARY 0.1%
Common Stocks 0.1%
OTP Bank GDR (USD) 25,000 1,150
--------------------------------------------------------------------------------
Total Hungary (Cost $1,024) 1,150
--------------------------------------------------------------------------------
IRELAND 0.3%
Common Stocks 0.3%
SmartForce ADR (USD) * 61,988 $ 3,111
--------------------------------------------------------------------------------
Total Ireland (Cost $1,033) 3,111
--------------------------------------------------------------------------------
<PAGE>
ITALY 8.4%
Common Stocks 8.4%
Alleanza Assicurazioni (EUR) 1,062,000 14,086
--------------------------------------------------------------------------------
Banca Intesa (EUR) 3,229,737 13,402
--------------------------------------------------------------------------------
Bipop-Carire (EUR) 852,000 6,739
--------------------------------------------------------------------------------
ENI (EUR) 1,609,276 8,713
--------------------------------------------------------------------------------
Mediaset (EUR) 329,000 4,760
--------------------------------------------------------------------------------
Mediolanum (EUR) 410,000 6,009
--------------------------------------------------------------------------------
Olivetti (EUR) 1,323,844 4,011
--------------------------------------------------------------------------------
San Paolo IMI (EUR) 186,844 3,028
--------------------------------------------------------------------------------
Tecnost (EUR) * 489,000 1,647
--------------------------------------------------------------------------------
Telecom Italia (EUR) 775,280 8,980
--------------------------------------------------------------------------------
Telecom Italia Mobile (EUR) 3,072,435 26,125
--------------------------------------------------------------------------------
UniCredito Italiano (EUR) 1,333,931 6,792
--------------------------------------------------------------------------------
Total Italy (Cost $76,175) 104,292
--------------------------------------------------------------------------------
NETHERLANDS 9.0%
Common Stocks 9.0%
ABN Amro Holding (EUR) 99,988 2,316
--------------------------------------------------------------------------------
Akzo Nobel (EUR) 50,548 2,301
--------------------------------------------------------------------------------
ASM Lithography (EUR) * 382,040 10,443
--------------------------------------------------------------------------------
CSM (EUR) 34,832 795
--------------------------------------------------------------------------------
Equant (EUR) * 75,156 2,516
--------------------------------------------------------------------------------
Fortis (EUR) 288,380 8,810
--------------------------------------------------------------------------------
ING Groep (EUR) 422,139 28,988
--------------------------------------------------------------------------------
KPN (EUR) 110,278 2,234
--------------------------------------------------------------------------------
KPNQwest (EUR) * 35,960 871
--------------------------------------------------------------------------------
Philips Electronics (EUR) 688,726 27,066
--------------------------------------------------------------------------------
<PAGE>
Royal Dutch Petroleum (EUR) 226,526 13,435
--------------------------------------------------------------------------------
United Pan-Europe Communications (EUR) * 111,236 $ 1,949
--------------------------------------------------------------------------------
Wolters Kluwer (EUR) 401,440 9,034
--------------------------------------------------------------------------------
World Online International (EUR) * 168,470 2,023
--------------------------------------------------------------------------------
Total Netherlands (Cost $74,891) 112,781
--------------------------------------------------------------------------------
NORWAY 0.5%
Common Stocks 0.5%
Norsk Hydro 47,730 1,898
--------------------------------------------------------------------------------
Orkla (Class A) 260,742 4,707
--------------------------------------------------------------------------------
Total Norway (Cost $4,245) 6,605
--------------------------------------------------------------------------------
PORTUGAL 0.1%
Common Stocks 0.1%
Jeronimo Martins (EUR) 147,694 1,424
--------------------------------------------------------------------------------
Total Portugal (Cost $1,244) 1,424
--------------------------------------------------------------------------------
SPAIN 4.1%
Common Stocks 4.1%
Banco Bilbao Vizcaya Argentaria (EUR) 740,405 9,864
--------------------------------------------------------------------------------
Banco Santander Central Hispano (EUR) 1,036,700 10,047
--------------------------------------------------------------------------------
Empresa Nacional de Electricidad (EUR) 429,981 7,006
--------------------------------------------------------------------------------
Gamesa (EUR) * 47,614 878
--------------------------------------------------------------------------------
Repsol (EUR) 298,293 4,738
--------------------------------------------------------------------------------
Telefonica (EUR) * 963,643 18,375
--------------------------------------------------------------------------------
Total Spain (Cost $37,187) 50,908
--------------------------------------------------------------------------------
<PAGE>
SWEDEN 5.3%
Common Stocks 5.3%
Assa Abloy 73,279 1,349
--------------------------------------------------------------------------------
Atlas Copco (Class B) 164,610 3,402
--------------------------------------------------------------------------------
Electrolux (Class B) 470,840 5,937
--------------------------------------------------------------------------------
Hennes & Mauritz (Class B) 402,510 7,533
--------------------------------------------------------------------------------
LM Ericsson (Class B) * 1,461,690 19,455
--------------------------------------------------------------------------------
Nordic Baltic Holding 1,597,625 11,992
--------------------------------------------------------------------------------
Nordic Baltic Holding (DKK) * 303,498 $ 2,284
--------------------------------------------------------------------------------
Sandvik 126,500 2,791
--------------------------------------------------------------------------------
Securitas (Class B) 526,584 11,225
--------------------------------------------------------------------------------
Total Sweden (Cost $56,962) 65,968
--------------------------------------------------------------------------------
SWITZERLAND 6.8%
Common Stocks 6.8%
ABB 79,389 7,055
--------------------------------------------------------------------------------
ABB (SEK) 47,498 4,221
--------------------------------------------------------------------------------
Adecco 27,204 18,811
--------------------------------------------------------------------------------
Credit Suisse Group 42,175 7,907
--------------------------------------------------------------------------------
Nestle 9,386 19,450
--------------------------------------------------------------------------------
Roche Holding 1,818 16,606
--------------------------------------------------------------------------------
UBS 80,356 11,131
--------------------------------------------------------------------------------
Total Switzerland (Cost $59,003) 85,181
--------------------------------------------------------------------------------
UNITED KINGDOM 33.0%
Common Stocks 33.0%
Abbey National 275,864 3,831
--------------------------------------------------------------------------------
AstraZeneca Group 453,237 21,333
--------------------------------------------------------------------------------
Autonomy Corporation * 14,000 715
--------------------------------------------------------------------------------
<PAGE>
BG Group 402,933 1,625
--------------------------------------------------------------------------------
BP Amoco 884,000 7,497
--------------------------------------------------------------------------------
Cable & Wireless 1,726,410 24,473
--------------------------------------------------------------------------------
Cadbury Schweppes 1,847,306 11,465
--------------------------------------------------------------------------------
Centrica 526,640 1,824
--------------------------------------------------------------------------------
David S. Smith Holdings 519,416 1,146
--------------------------------------------------------------------------------
Diageo 1,923,297 18,160
--------------------------------------------------------------------------------
Dimension Data * 166,987 1,461
--------------------------------------------------------------------------------
Electrocomponents 521,000 5,231
--------------------------------------------------------------------------------
GKN 190,000 2,201
--------------------------------------------------------------------------------
Glaxo Wellcome 1,082,540 31,179
--------------------------------------------------------------------------------
Granada Compass * 1,667,000 14,440
--------------------------------------------------------------------------------
Granada Media * 270,576 1,586
--------------------------------------------------------------------------------
Hays 244,000 1,332
--------------------------------------------------------------------------------
Hilton Group 377,000 $ 1,049
--------------------------------------------------------------------------------
Kingfisher 1,981,462 11,903
--------------------------------------------------------------------------------
Lattice Group * 402,933 857
--------------------------------------------------------------------------------
Marconi 536,950 6,798
--------------------------------------------------------------------------------
Reed International 2,380,569 21,899
--------------------------------------------------------------------------------
Regus * 841,000 3,822
--------------------------------------------------------------------------------
Rio Tinto 435,848 7,051
--------------------------------------------------------------------------------
Royal Bank of Scotland Group 2,002,365 44,946
--------------------------------------------------------------------------------
Serco Group 663,000 6,089
--------------------------------------------------------------------------------
Shell Transport & Trading 3,652,000 29,409
--------------------------------------------------------------------------------
SmithKline Beecham 1,994,460 25,755
--------------------------------------------------------------------------------
Standard Chartered 421,600 6,087
--------------------------------------------------------------------------------
<PAGE>
Tesco 2,047,500 7,813
--------------------------------------------------------------------------------
Tomkins 2,708,426 6,494
--------------------------------------------------------------------------------
Unilever 1,765,607 11,957
--------------------------------------------------------------------------------
United News & Media 622,390 7,750
--------------------------------------------------------------------------------
Vodafone Group 14,107,892 58,953
--------------------------------------------------------------------------------
WPP Group 349,000 4,702
--------------------------------------------------------------------------------
Total United Kingdom (Cost $367,236) 412,833
--------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 0.6%
Money Market Funds 0.6%
Reserve Investment Fund, 6.68% # 7,408,822 7,409
--------------------------------------------------------------------------------
Total Short-Term Investments (Cost $7,409) 7,409
Total Investments in Securities
97.4% of Net Assets (Cost $899,857) $ 1,217,306
Futures Contracts
In thousands
Contract Unrealized
Expiration Value Gain (Loss)
---------- ----- -----------
Long, 83 OMX Stock Index Contracts,
$106,459 of cash pledged
as initial margin 11/00 $ 977 $ (4)
Long, 13 IBEX 35 Plus Contracts,
$77,132 of cash pledged
as initial margin 11/00 1,148 13
Long, 7 MIB 30 Index Contracts,
$106,509 of cash pledged
as initial margin 12/00 1,422 (7)
Long, 56 CAC 40 Index Contracts,
$130,530 of cash pledged
as initial margin 12/00 3,068 (110)
Long, 24 DAX Index Contracts,
$183,082 of cash pledged
as initial margin 12/00 3,627 15
Long, 72 FTSE 100 Index Contracts,
$313,654 of cash pledged
as initial margin 12/00 6,780 (79)
Net payments (receipts)
of variation
margin to date 388
--------------------------------------------------------------------------------
Variation margin receivable
(payable) on open futures contracts 216
Other Assets Less Liabilities 32,708
NET ASSETS $ 1,250,230
* Non-income producing
# Seven-day yield
ADR American Depository Receipt
DKK Danish krone
EUR Euro
GDR Global depository receipt
SEK Swedish krona
USD U.S. dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
--------------------------------- October 31, 2000
STATEMENT OF ASSETS AND LIABILITIES In thousands
-----------------------------------
ASSETS
Investments in securities, at value (cost $899,857) $ 1,217,306
Securities lending collateral 135,741
Other assets 37,995
Total assets 1,391,042
LIABILITIES
Obligation to return securities lending collateral 135,741
Other liabilities 5,071
Total liabilities 140,812
NET ASSETS $ 1,250,230
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 8,967
Accumulated net realized gain/loss - net of distributions 77,919
Net unrealized gain (loss) 317,063
Paid-in-capital applicable to 57,641,109 shares of
$0.01 par value capital stock outstanding;
2,000,000,000 shares of the Corporation authorized 846,281
NET ASSETS $ 1,250,230
NET ASSET VALUE PER SHARE $ 21.69
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
---------------------------------
STATEMENT OF OPERATIONS
----------------------- In thousands
Year
Ended
10/31/00
Investment Income (Loss)
Income
Dividend (net of foreign taxes of $2,598) $ 20,516
Interest 2,803
Securities lending 1,072
-------------------------------------------------------------------------------
Total income 24,391
-------------------------------------------------------------------------------
Expenses
Investment management 11,543
Shareholder servicing 2,049
Custody and accounting 499
Prospectus and shareholder reports 184
Registration 48
Legal and audit 28
Directors 8
Miscellaneous 42
-------------------------------------------------------------------------------
Total expenses 14,401
Expenses paid indirectly (1)
-------------------------------------------------------------------------------
Net expenses 14,400
-------------------------------------------------------------------------------
Net investment income (loss) 9,991
-------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 124,340
Futures (999)
Foreign currency transactions (5,198)
-------------------------------------------------------------------------------
Net realized gain (loss) 118,143
-------------------------------------------------------------------------------
Change in net unrealized gain or loss
Securities (23,459)
Futures (172)
Other assets and liabilities
denominated in foreign currencies (180)
-------------------------------------------------------------------------------
Change in net unrealized gain or loss (23,811)
-------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 94,332
-------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 104,323
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock 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) $ 9,991 $ 14,076
Net realized gain (loss) 118,143 115,710
Change in net unrealized gain or loss (23,811) 24,512
--------------------------------------------------------------------------------
Increase (decrease) in net assets from operations 104,323 154,298
--------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (8,549) (17,725)
Net realized gain (116,259) (138,004)
--------------------------------------------------------------------------------
Decrease in net assets from distributions (124,808) (155,729)
--------------------------------------------------------------------------------
Capital share transactions *
Shares sold 601,104 504,968
Distributions reinvested 119,275 149,017
Shares redeemed (831,832) (682,394)
--------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions (111,453) (28,409)
--------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period (131,938) (29,840)
Beginning of period 1,382,168 1,412,008
--------------------------------------------------------------------------------
End of period $1,250,230 $1,382,168
*Share information
Shares sold 25,999 23,161
Distributions reinvested 5,390 7,202
Shares redeemed (35,753) (31,438)
--------------------------------------------------------------------------------
Increase (decrease) in shares outstanding (4,364) (1,075)
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price European Stock 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 European Stock Fund (the fund), a
nondiversified, 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 through investments primarily in the
common stocks of European companies; current income is a secondary objective.
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. Financial futures contracts
are valued at closing settlement prices.
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. Payments
("variation 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.
<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.
Futures Contracts At October 31, 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 values 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 October 31, 2000, the value of
loaned securities was $132,104,000; aggregate collateral consisted of
$135,741,000 in the securities lending collateral pool.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $279,498,000 and $529,473,000, 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 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 $ (999,000)
Undistributed net realized gain (35,667,000)
Paid-in-capital 36,666,000
<PAGE>
At October 31, 2000, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$899,857,000. Net unrealized gain aggregated $317,449,000 at period-end, of
which $380,056,000 related to appreciated investments and $62,607,000 to
depreciated investments.
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 $846,000 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 $1,706,000 for the year ended
October 31, 2000, of which $159,000 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 2.1% of the outstanding shares of the European Stock Fund at
October 31, 2000. For the year then ended, the fund was allocated $80,000 of
Spectrum expenses, $4,000 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 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
$2,278,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the year ended October 31, 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
----------------------------
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
year ended October 31, 2000, the fund borrowed amounts ranging from $2,900,000
to $20,600,000, on 11 days, at a weighted average rate of 6.17%. There were no
borrowings outstanding at October 31, 2000.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
---------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
---------------------------------
To the Board of Directors of T. Rowe Price International Funds, Inc.
and Shareholders of European Stock 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 European Stock 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 and broker, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
November 17, 2000
================================================================================
T. Rowe Price European Stock 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:
* $3,060,000 from short-term capital gains,
* $148,866,000 from long-term capital gains, subject to the 20%
rate gains category.
The fund will pass through foreign source income of $19,915,000 and foreign
taxes paid of $2,230,000.
================================================================================
<PAGE>
T. Rowe Price European Stock Fund
---------------------------------
ANNUAL MEETING RESULTS
----------------------
The T. Rowe Price European Stock 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: 35,948,003.087
Against: 517,773.645
Abstain: 908,816.954
Total: 37,374,593.686
For nominees to the Board of Directors of the European Stock Fund:
M. David Testa
Affirmative: 36,448,875.246
Withhold: 925,718.440
Total: 37,374,593.686
Martin G. Wade
Affirmative: 36,575,854.630
Withhold: 798,739.056
Total: 37,374,593.686
Anthony W. Deering
Affirmative: 36,494,327.056
Withhold: 880,266.630
Total: 37,374,593.686
Donald W. Dick, Jr.
Affirmative: 36,475,314.555
Withhold: 899,279.131
Total: 37,374,593.686
Paul M. Wythes
Affirmative: 36,574,031.247
Withhold: 800,562.439
Total: 37,374,593.686
To ratify the appointment of PricewaterhouseCoopers LLP as independent
accountants:
Affirmative:36,418,830.315
Against: 356,369.427
Abstain: 599,393.944
Total: 37,374,593.686
================================================================================
<PAGE>
T. Rowe Price Shareholder Services
----------------------------------
INVESTMENT SERVICES AND INFORMATION
-----------------------------------
KNOWLEDGEABLE SERVICE REPRESENTATIVES
------------- ------- ---------------
BY PHONE 1-800-225-5132 Available Monday through Friday from
8 a.m. to 10 p.m. ET and weekends from 8:30a.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.
================================================================================
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
<PAGE>
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
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. F79-050 10/31/00
