PRICE T ROWE TAX EXEMPT MONEY FUND INC
497K3B, 2000-05-11
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   FUND PROFILE
 April 15, 2000

T. Rowe Price Prime Reserve Fund--PLUS ClassTax-Exempt Money Fund--PLUS Class

 Money market funds seeking preservation of capital and liquidity, as well as
 income. The PLUS class of shares offers unlimited no-minimum checkwriting and a
 VISA/(R)/ Gold ATM & Check Card.

 This profile summarizes key information about each fund that is included in
 each fund's prospectus. The fund's prospectus includes additional information
 about the fund, including a more detailed description of the risks associated
 with investing in the fund that you may want to consider before you invest. You
 may obtain the prospectus and other information about each fund at no cost by
 calling 1-877-746-3567 or by visiting our Web site at www.troweprice.com.


   A Word About the Funds' Names and Structures. The Prime Reserve Fund - PLUS
   Class (Prime Reserve PLUS) and the Tax-Exempt Money Fund - PLUS Class
   (Tax-Exempt Money PLUS) are share classes of the T. Rowe Price Prime Reserve
   Fund and the T. Rowe Price Tax-Exempt Money Fund, respectively. The PLUS
   classes are not separate mutual funds; they have the same portfolio as their
   related funds but carry a different set of services (such as unlimited,
   no-minimum checkwriting and a VISA Gold ATM & Check Card) and different
   expenses, as discussed later in this profile.


 1. What is each fund's objective?

   Each fund's goals are preservation of capital, liquidity, and, consistent
   with these, the highest possible current income. Tax-Exempt Money PLUS
   additionally seeks to provide income exempt from federal income taxes.
LOGO
<PAGE>

 2. What is each fund's principal investment strategy?

   Prime Reserve is managed to provide a stable share price of $1.00. The fund
   invests in high-quality, U.S. dollar-denominated money market securities.
   Tax-Exempt Money is also managed to provide a stable share price of $1.00,
   and to provide income that is exempt from federal income taxes. The fund
   invests in high-quality, municipal money market securities.

   For both funds, average weighted maturity will not exceed 90 days, and yield
   will fluctuate with changes in short-term interest rates. In selecting
   securities, fund managers may examine the relationships among yields on
   various types and maturities of money market securities in the context of
   their outlook for interest rates. If rates are expected to fall, longer
   maturities may be purchased, which typically have higher yields than shorter
   maturities, to try to preserve the fund's income level. Conversely, shorter
   maturities may be favored if rates are expected to rise.


   The funds may sell holdings for a variety of reasons, such as to adjust the
   portfolio's average maturity or quality, or to shift assets into
   higher-yielding securities.

   Further information about each fund's investments, including a review of
   market conditions and fund strategies and their impact on performance, is
   available in the annual and semiannual shareholder reports. To obtain free
   copies of any of these documents, call 1-877-746-3567.


 3. What are the main risks of investing in the funds?

   Since they are managed to maintain a $1.00 share price, money market funds
   should have little risk of principal loss. However, there is no assurance the
   funds will avoid principal losses in the rare event that particular holdings
   default or interest rates rise sharply in an unusually short period. Because
   they are exempt from federal income tax, municipal securities held by
   Tax-Exempt Money are also subject to the risk that a significant decline in
   tax rates, a restructuring of the tax system, or even serious discussion of
   these topics in Congress, could cause their prices to fall. There is also
   geographic risk since adverse developments in a particular state could result
   in price declines.

   The funds' yields will vary; they are not fixed for a specific period like
   the yield on a bank certificate of deposit. This should be an advantage when
   interest rates are rising but not when rates are falling. An investment in
   the funds is not insured or guaranteed by the Federal Deposit Insurance
   Corporation 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. Additionally, there is no guarantee
   that the funds' returns will equal or exceed the rate of inflation.
<PAGE>

   As with any mutual fund, there can be no guarantee the funds will achieve
   their objectives.


 4. How can I tell which fund is most appropriate for me?

   Prime Reserve PLUS is a new class of shares of the Prime Reserve Fund, and
   Tax-Exempt Money PLUS is a new class of shares of the Tax-Exempt Money Fund.
   Like their related funds, these classes of shares are appropriate if you have
   some money for which safety and accessibility are more important than total
   return. Over time, money market securities have shown greater stability and
   lower returns than bonds or stocks. Additionally, the higher your tax
   bracket, the more likely that tax-exempt securities are appropriate.

   Both Prime Reserve PLUS and Tax-Exempt Money PLUS offer services that include
   unlimited, no-minimum checkwriting and a VISA Gold ATM & Check Card. The cost
   of these services will raise the expense ratio of the PLUS classes above that
   of a typical money fund that does not offer these expanded features.


 5. How has each fund performed in the past?

   Both Prime Reserve PLUS and Tax-Exempt Money PLUS began operations on October
   31, 1998, and therefore have a limited performance history. As a point of
   comparison, however, the following bar charts and tables show 10 calendar
   years of returns for the Prime Reserve Fund and the Tax-Exempt Money Fund,
   which have the same management programs and investment portfolios as Prime
   Reserve PLUS and Tax-Exempt Money PLUS, respectively. (Note that prior to the
   inception of the PLUS classes, neither related fund had any other share
   classes.)

   Because the PLUS classes have higher expenses than the Prime Reserve and
   Tax-Exempt Money Funds, their performance, had they existed over this period,
   would have been lower than what is shown. Nevertheless, the bar charts and
   tables indicate risk by showing how much returns can differ over time. Of
   course, past performance is no guarantee of future returns.
<PAGE>

<TABLE>
 INSERT PRF BAR
CHART HERE
<CAPTION>
  Calendar Year Total Returns
 -------------------------------
 <S>          <C>
  1989              8.90%
  1990              7.73
  1991              5.67
  1992              3.34
  1993              2.60
  1994              3.74
  1995              5.48
  1996              4.90
  1997              5.10
  1998              5.13
 -------------------------------
</TABLE>



<TABLE>
 INSERT TEM BAR
CHART HERE
<CAPTION>
 Calendar Year Total Returns
 ------------------------------
 <S>           <C>
  1989              5.93%
  1990              5.38
  1991              3.89
  1992              2.53
  1993              2.01
  1994              2.46
  1995              3.40
  1996              3.05
  1997              3.24
  1998              3.08
 ------------------------------
</TABLE>



   The related funds have also experienced short-term performance swings. The
   Prime Reserve Fund's best calendar quarter return during the years depicted
   in the chart was 2.30% in the second quarter of 1989, and the worst was 0.62%
   in the second quarter of 1993. The Tax-Exempt Money Fund's best calendar
   quarter return was 1.58% in the second quarter of 1989, and the worst was
   0.45% in the first quarter of 1993.
<PAGE>


<TABLE>
 Average Annual Total Returns
<CAPTION>
  Periods ended March 31, 2000
                                      1 year     5 years     10 years
 <S>                                 <C>        <C>         <C>         <S>

   Prime Reserve Fund                  5.01%      5.07%       4.78%
  Lipper Money Market Funds Average    4.72       4.93        4.73
                                     -----------------------------------
   Tax-Exempt Money Fund               3.03       3.12        3.14
  Lipper Tax-Exempt Money Market
  Funds Average                        2.83       3.00        3.10
  Lipper Tax-Exempt Money Market       2.98       3.12        3.21
  Funds Index
 ----------------------------------------------------------------------------
</TABLE>




 These figures include changes in principal value, reinvested dividends, and
   capital gain distributions, if any.


 6. What fees or expenses will I pay?

   The funds are 100% no load. There are no fees or charges to buy or sell fund
   shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
   are no 12b-1 fees.

   The PLUS classes charge you for use of your VISA Gold ATM & Check Card. You
   will be charged $1 for each automated teller machine (ATM) withdrawal using
   the card; this fee is waived for the first two such transactions in each
   month. This fee does not include any third-party fees charged at the ATM
   machine.


   The numbers in the next table provide an estimate of how much it will cost to
   operate the PLUS classes for a year, based on estimated expenses for the
   Prime Reserve PLUS and Tax-Exempt Money PLUS shares. These are costs you pay
   indirectly because they are deducted from the fund's total assets before the
   daily share price is calculated and before distributions are made.


<TABLE>
 Fees and Expenses of the Funds
<CAPTION>
                                        Annual fund operating expenses
                                 (expenses that are deducted from fund assets)
                                                Total annual
                         Management   Other    fund operating   Fee waiver      Net
                            fee      expenses     expenses     reimbursement  expenses
 <S>                     <C>         <C>       <C>             <C>            <C>       <S>

  Prime Reserve PLUS       0.37%      0.45%        0.82%/a/          --        0.82%
                         ---------------------------------------------------------------
  Tax-Exempt Money PLUS    0.42       0.72         1.14/a/         0.14%       1.00
 --------------------------------------------------------------------------------------------
</TABLE>



 /a/
   To limit the fund's expenses during its initial period of operations, T. Rowe
   Price agreed to bear any expenses through April 30, 1999, to the extent such
   expenses would cause the ratio of expenses to average net assets to exceed
   1.00%. Effective May 1, 1999, T. Rowe Price agreed to extend this expense
   limitation for a period of one year through April 30, 2000. Fees waived or
   expenses paid or assumed under these agreements are subject to reimbursement
   to T. Rowe Price by the fund whenever the fund's expense ratio is below
   1.00%; however, no reimbursement will be made after April 30, 2000 (for the
   first agreement), or April 30, 2002 (for the second agreement), or if it
   would result in the expense ratio exceeding 1.00%. Any amounts reimbursed
   will have the effect of increasing fees otherwise paid by the fund.
<PAGE>

   Example.  The following table gives you a rough idea of how expense ratios
   may translate into dollars and helps you to compare the cost of investing in
   these funds with that of other funds. Although your actual costs may be
   higher or lower, the table shows how much you would pay if operating expenses
   remain the same, the expense limitations currently in place are not renewed,
   you invest $10,000, you earn a 5% annual return, and you hold the investment
   for the following periods:


<TABLE>
<CAPTION>
                              1 year  3 years  5 years  10 years
                                                                  -----
    <S>                       <C>     <C>      <C>      <C>       <C>
     Prime Reserve PLUS        $102    $280     $473     $1,030
                              ------------------------------------
     Tax-Exempt Money PLUS      102     348      614      1,374
    -------------------------------------------------------------------
</TABLE>




   In addition to typical fund expenses Prime Reserve PLUS class and Tax-Exempt
   Money PLUS class shareholders may be assessed fees for use of their VISA Gold
   ATM & Check Card. You will be charted $1 for each ATM withdrawal using the
   card; the fee is waived for the first two such transactions in each month.
   These fees do not include any third-party fees charged at the ATM machine.



 7. Who manages the funds?

   Each fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
   Rowe Price and its affiliates manage investments for individual and
   institutional accounts. The company offers a comprehensive array of stock,
   bond, and money market funds directly to the investing public.

   Edward A. Wiese manages Prime Reserve day-to-day and has been chairman of the
   fund's Investment Advisory Committee since its inception. He joined T. Rowe
   Price in 1984 and has been managing investments since 1985.

   Patrice Berchtenbreiter Ely manages Tax-Exempt Money day-to-day and has been
   chairman of the fund's Investment Advisory Committee since its inception. She
   joined T. Rowe Price in 1972 and has been managing investments since 1987.


 8. How can I purchase shares?

   Fill out and return a New Account Form in the postpaid envelope, along with
   your check. The minimum initial purchase is $2,500. There is no subsequent
   purchase minimum. You can also open an account by bank wire or by
   transferring assets from another financial institution.


 9. How can I sell shares?

   You may redeem or sell any portion of your account on any business day.
   Simply write to us or call. You can also access your account at any time via
   our automated voice response unit or our Web site. We offer exchange among
   our entire family of domestic and international funds. Restrictions may apply
   in special circumstances, and some redemption requests need a signature
   guarantee. A $5 fee is charged for wire redemptions under $5,000.
<PAGE>

 10. When will I receive income and capital gain distributions?

   Each fund distributes income monthly; normally there are no capital gain
   distributions for money market funds. For Prime Reserve PLUS, income
   dividends are taxable at ordinary income rates. For Tax-Exempt Money PLUS,
   income dividends are ordinarily exempt from federal taxes. For both funds,
   any capital gain distributions are taxable. Distributions are reinvested
   automatically in additional shares unless you choose another option, such as
   receiving a check.


 11. What services are available?

   Prime Reserve PLUS and Tax-Exempt Money PLUS offer features not normally
   available from other mutual funds. Subject to T. Rowe Price approval, which
   may include a credit review, you may access your account as follows:

   Checkwriting You can write an unlimited number of checks against your account
   to meet personal expenses. There is no minimum amount requirement for the
   checks you write.


   VISA Gold ATM & Check Card You may use your ATM & Check Card to purchase
   merchandise or services at participating establishments or to obtain cash
   advances from any participating bank. You may also obtain cash using your
   card and personal identification number (PIN) from ATMs displaying the VISA
   or Plus System/(R)/ name and logo. Use of your card results in an immediate
   reduction of your available balance.
<PAGE>

To Open an Asset Manager Account
    1-877-746-3567

For Fund Information and Account Transactions on the Internet
 www.troweprice.com

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

Colorado Springs
 4410 ArrowsWest Drive

Los Angeles Area
 Warner Center, Plaza 5 21800 Oxnard Street, Suite 270 Woodland Hills

Tampa
 4200 West Cypress Street 10th Floor

Washington, D.C.
 Farragut Square 900 17th Street, N.W.

Headquarters
 100 East Pratt Street Baltimore, MD 21202


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