<PAGE>
Semiannual Report - Financial Statements T. ROWE PRICE
TAX-EXEMPT
MONEY FUND
AUGUST 31, 2000
PORTFOLIO HIGHLIGHTS
SECTOR Diversification
Percent of Percent of
Net Assets Net Assets
2/29/00 8/31/00
--------------------------------------------------------------------------------
Hospital Revenue 30% 30%
Educational Revenue 12 21
General Obligation - Local 11 15
General Obligation - State 20 11
Prerefunded Bonds 8 6
Industrial and Pollution Control Revenue 5 4
Housing Finance Revenue 1 3
Water and Sewer Revenue 2 3
Lease Revenue - 2
All Other 9 4
Other Assets Less Liabilities 2 1
Total 100% 100%
1
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY FUND
Unaudited
--------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
Tax-Exempt shares
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
8/31/00 2/29/00 2/28/99 2/28/98 2/28/97 2/29/96
<C> <S> <S> <S> <S> <S> <S>
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment
income (loss) 0.018 0.029 0.029 0.032 0.030 0.033
Distributions
Net investment income (0.018) (0.029) (0.029) (0.032) (0.030) (0.033)
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Ratios/Supplemental Data
Total return* 1.85% 2.94% 2.97% 3.24% 3.05% 3.38%
Ratio of total expenses
to average net assets 0.53%+ 0.53% 0.52% 0.52% 0.55% 0.56%
Ratio of net investment
income (loss) to average
net assets 3.64%+ 2.91% 2.93% 3.20% 3.00% 3.33%
Net assets, end of period
(in thousands) $665,142 $669,615 $710,569 $740,757 $678,135 $679,143
</TABLE>
* 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.
2
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY FUND
Unaudited
--------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
Tax-Exempt PLUS shares
6 Months Year 11/1/98
Ended Ended Through
8/31/00 2/29/00 2/28/99
NET ASSET VALUE
Beginning of period $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment income (loss) 0.017 0.028 0.007
Distributions
Net investment income (0.017) (0.028) (0.007)
NET ASSET VALUE
End of period $ 1.000 $ 1.000 $ 1.000
Ratios/Supplemental Data
Total return* 1.73% 2.79% 0.74%
Ratio of total expenses
to average net assets 0.76%+ 0.67% 0.99%+
Ratio of net investment
income (loss) to average
net assets 3.41%+ 2.81% 2.01%+
Net assets, end of period
(in thousands) $ 17,058 $ 17,694 $ 4,208
* Total return reflects the rate that an investor would have earned on an
investment in the fund during the period, assuming reinvestment of all
distributions.
+ Annualized
The accompanying notes are an integral part of these financial statements.
3
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
Unaudited August 31, 2000
-----------------------
STATEMENT OF NET ASSETS Par Value
--------------------------------------------------------------------------------
In thousands
ALABAMA 5.5%
Alabama, GO, 5.50%, 10/1/00 $ 3,000 $ 3,003
Birmingham, GO
VRDN (Currently 4.25%) 6,100 6,100
Capital Improvement, VRDN (Currently 4.25%) 10,000 10,000
Port City Medical Clinic, Infirmary Health
VRDN (Currently 4.25%)
(AMBAC Insured) 11,130 11,130
Tuscaloosa County Board of Ed., Capital Outlay
VRDN (Currently 4.30%) 6,490 6,490
Univ. of Alabama, VRDN (Currently 4.25%) (AMBAC Insured) 1,000 1,000
---------
Total Alabama (Cost $37,723) 37,723
---------
ARIZONA 0.9%
Univ. of Arizona
Variable Main Campus & Research
VRDN (Currently 4.20%)
(AMBAC Insured) 5,000 5,000
Student Union Bookstore
VRDN (Currently 4.20%) (AMBAC Insured) 1,000 1,000
---------
Total Arizona (Cost $6,000) 6,000
---------
COLORADO 1.1%
Colorado HFA, Health Systems
7.25%, 2/15/16 (FSA Insured)
(Prerefunded 2/15/01+) 5,000 5,162
Denver, IDR, W. W. Grainger, VRDN (Currently 4.40%) 2,190 2,190
---------
Total Colorado (Cost $7,352) 7,352
---------
DISTRICT OF COLUMBIA 1.0%
District of Columbia
American Univ., VRDN (Currently 4.35%) 1,000 1,000
Howard Univ., 7.25%, 10/1/11
(Prerefunded 10/1/00+) 1,000 1,022
Multimodal Smithsonian, VRDN (Currently 4.20%) 5,000 5,000
---------
Total District of Columbia (Cost $7,022) 7,022
---------
4
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
Par Value
--------------------------------------------------------------------------------
In thousands
FLORIDA 1.1%
Alachua County HFA, Shands Teaching Hosp
VRDN (Currently 4.25%) (MBIA Insured) $ 4,100 $ 4,100
Jacksonville Electric Auth., Bulk Power Supply
6.75%, 10/1/16 (Prerefunded 10/1/00+) 500 509
Orange County IDA, W. W. Grainger, VRDN (Currently 4.40%) 1,185 1,185
Tampa Bay Water, Utility Systems
VRDN (Currently 4.33%) (FGIC Insured) 2,000 2,000
---------
Total Florida (Cost $7,794) 7,794
---------
GEORGIA 7.7%
Atlanta Water & Sewer, VRDN (Currently 4.33%) (FGIC Insured) 3,995 3,995
Clayton County Dev. Auth., Delta Air Lines
VRDN (Currently 4.25%) 1,000 1,000
Cobb County School Dist., GO, 6.00%, 2/1/01 1,000 1,007
Dalton Combined Utilities, 4.75%, 1/1/01 (MBIA Insured) 4,450 4,457
DeKalb County Hosp. Auth., DeKalb Medical Center
VRDN (Currently 4.30%) 10,000 10,000
DeKalb County Water & Sewer, 5.75%, 10/1/00 4,195 4,199
Downtown Savannah Auth., GO, Public Ed
VRDN (Currently 4.30%) 1,000 1,000
Fulton-DeKalb Private Hosp. Auth
Children's Health, VRDN (Currently 4.25%) 1,000 1,000
Egleston Childrens Hosp.,VRDN (Currently 4.25%) 10,000 10,000
Georgia
6.20%, 2/1/04 (Prerefunded 2/1/01+) 1,000 1,027
Georgia, GO
7.00%, 11/1/00 1,000 1,005
7.25%, 9/1/00 2,000 2,000
Georgia Private Colleges & Univ. Auth., Emory Univ
VRDN (Currently 4.15%) 1,000 1,000
VRDN (Currently 4.25%) 9,000 9,000
Gwinnett County Hosp. Auth
VRDN (Currently 4.25%) (MBIA Insured) 1,000 1,000
Municipal Electric Auth. of Georgia
VRDN (Currently 4.15%) (MBIA Insured) 1,000 1,000
---------
Total Georgia (Cost $52,690) 52,690
---------
5
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
Par Value
--------------------------------------------------------------------------------
In thousands
HAWAII 0.6%
Hawaii, GO
6.00%, 2/1/03 (Prerefunded 2/1/01+) $ 2,100 $ 2,135
7.125%, 9/1/10 (Prerefunded 9/1/00+) 1,700 1,717
---------
Total Hawaii (Cost $3,852) 3,852
---------
ILLINOIS 10.1%
Chicago, GO, 11.60%, 1/1/01 (FGIC Insured) 520 532
Chicago Metropolitan Water Reclamation Dist., GO
5.30%, 12/1/00 1,625 1,629
Chicago Park Dist., GO, 5.10%, 1/1/01 (FGIC Insured) 750 752
Illinois, GO, 4.75%, 10/1/00 1,500 1,501
Illinois Dev. Fin. Auth
Palos Community Hosp
VRDN (Currently 4.20%) 30,300 30,300
Illinois EFA
Northwestern Univ
VRDN (Currently 4.25%) 4,750 4,750
VRDN (Currently 4.30%) 9,900 9,900
4.75%, 12/1/00 1,150 1,151
Univ. of Chicago
TECP, 4.75%, 1/26/01 5,000 5,000
Illinois HFA, Little Co. of Mary Hosp
VRDN (Currently 4.29%)
(MBIA Insured) 12,615 12,615
Niles Village, IDR, W. W. Grainger, VRDN (Currently 4.40%) 1,000 1,000
---------
Total Illinois (Cost $69,130) 69,130
---------
INDIANA 2.7%
Colorado River Municipal Water Dist
6.75%, 1/1/11 (AMBAC Insured)
(Prerefunded 1/1/01+) 2,500 2,520
Gary, IDR, W. W. Grainger, VRDN (Currently 4.40%) 730 730
Indiana EFA, Univ. of Notre Dame, VRDN (Currently 4.25%) 10,000 10,000
Indiana Bond Bank, TAN
Advanced Funding Program, 4.75%, 1/18/01 5,000 5,011
---------
Total Indiana (Cost $18,261) 18,261
---------
6
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
Par Value
--------------------------------------------------------------------------------
In thousands
IOWA 0.6%
Iowa Fin. Auth., Iowa Health System
VRDN (Currently 4.25%)
(AMBAC Insured) $ 1,000 $ 1,000
Sheldon, Sioux Valley Hosp., VRDN (Currently 4.30%) 3,200 3,200
---------
Total Iowa (Cost $4,200) 4,200
---------
KANSAS 1.7%
Kansas City Dev. Fin Auth., Chesapeake Apartments
VRDN (Currently 4.28%) 11,000 11,000
Wichita, GO, 6.30%, 9/1/00 475 475
---------
Total Kansas (Cost $11,475) 11,475
---------
KENTUCKY 0.1%
Univ. of Kentucky, Consolidated Ed. Buildings
6.60%, 5/1/08 (Prerefunded 5/1/01+) 500 517
---------
Total Kentucky (Cost $517) 517
---------
LOUISIANA 5.2%
Jefferson Sales Tax Dist., 5.00%, 12/1/00 (FSA Insured) 1,000 1,002
Lake Charles Harbor and Terminal Dist., Conoco
VRDN (Currently 4.20%) 1,000 1,000
Louisiana, GO
7.125%, 9/1/10 (Prerefunded 9/1/00+) 3,510 3,580
7.25%, 9/1/06 (Prerefunded 9/1/00+)
(FSA Insured) 540 551
Louisiana PFA, Willis Knighton Medical Center
VRDN (Currently 4.30%)
(AMBAC Insured) 19,900 19,900
New Orleans Aviation Board
VRDN (Currently 4.30%)
(MBIA Insured) 1,800 1,800
Plaquemines Port, Harbor and Terminal
Chevron
3.50%, 9/1/00 5,000 4,974
4.30%, 9/4/01 2,360 2,357
---------
Total Louisiana (Cost $35,164) 35,164
---------
7
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
Par Value
--------------------------------------------------------------------------------
In thousands
MARYLAND 11.0%
Baltimore County, TECP, BAN, GO, 4.15%, 9/7/00 $ 7,900 $ 7,900
Carroll County, GO, County Commissioners
Public Improvement, 5.00%, 12/1/00 1,230 1,233
Gaithersburg Economic Dev., Asbury Methodist
VRDN (Currently 4.30%) (MBIA Insured) 8,200 8,200
Howard County Metropolitan Dist
6.625%, 2/15/21 (Prerefunded 2/15/01+) 500 509
Maryland, GO
7.00%, 10/15/02 (Prerefunded 10/15/00+) 1,000 1,009
State & Local Fac
4.50%, 10/15/00 500 500
5.00%, 10/15/00 1,000 1,001
Maryland HHEFA
Johns Hopkins Univ
6.20%, 7/1/01 10,255 10,255
TECP, 4.05%, 10/17/00 11,096 11,096
TECP, 4.10%, 9/7/00 3,295 3,295
Pooled Loan Program, VRDN (Currently 4.20%) 17,900 17,900
Maryland Water Quality Fin. Admin., Revolving Loan Fund
7.25%, 9/1/11 (Prerefunded 9/1/00+) 1,295 1,321
Maryland, DOT
4.00%, 9/15/00 1,000 1,000
6.10%, 9/1/01 (Prerefunded 9/1/00+) 2,000 2,015
6.20%, 9/1/02 (Prerefunded 9/1/00+) 1,000 1,010
6.25%, 9/1/03 (Prerefunded 9/1/00+) 1,000 1,013
Montgomery County, TECP, GO, BAN, 4.20%, 11/10/00 5,000 5,000
Montgomery County Economic Dev. Auth
Howard Hughes Medical Fac
VRDN (Currently 4.22%) 1,000 1,000
---------
Total Maryland (Cost $75,257) 75,257
---------
MASSACHUSETTS 0.6%
Boston, GO
5.25%, 10/1/00 (MBIA Insured) 400 400
5.00%, 11/1/00 (FGIC Insured) 620 621
8
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
Par Value
--------------------------------------------------------------------------------
In thousands
Massachusetts, GO, 7.00%, 12/1/10 (Prerefunded 12/1/00+) $ 1,190 $ 1,198
Massachusetts IDA, Cape Cod Health Systems
8.50%, 11/15/20 (Prerefunded 11/15/00+) 1,550 1,594
---------
Total Massachusetts (Cost $3,813) 3,813
---------
MICHIGAN 0.2%
Michigan Building Auth., Fac. Program, 5.00%, 10/15/00 1,000 1,000
---------
Total Michigan (Cost $1,000) 1,000
---------
MINNESOTA 2.7%
Minnesota, GO, VRDN (Currently 4.33%) 3,400 3,400
Minnesota Public Fac. Auth., Water Pollution
VRDN (currently 4.33%) 2,800 2,800
Rochester Health Care Fac., Mayo Medical Center
TECP, 4.25%, 10/12 - 11/13/00 7,900 7,900
7.45%, 11/15/06 (Prerefunded 11/15/00+) 4,000 4,024
---------
Total Minnesota (Cost $18,124) 18,124
---------
MISSISSIPPI 0.2%
Rankin County, PCR, Siemens Energy and Automation
VRDN (Currently 4.30%) 1,600 1,600
---------
Total Mississippi (Cost $1,600) 1,600
---------
MISSOURI 2.2%
Missouri HEFA
Medical Research Fac
VRDN (currently 4.20%) (MBIA Insured) 10,000 10,000
St. Anthony's Medical Center
VRDN (Currently 4.25%) 1,000 1,000
St. Louis, GO, TRAN, 5.25%, 6/28/01 3,000 3,016
Univ. of Missouri, Univ. Systems Fac., VRDN
(Currently 4.15%) 1,000 1,000
---------
Total Missouri (Cost $15,016) 15,016
---------
9
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
----------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
NEW YORK 0.3%
New York City Municipal Water Fin. Auth
Water & Sewer System
VRDN (Currently 4.30%) (FGIC Insured) $ 2,000 $ 2,000
---------
Total New York (Cost $2,000) 2,000
---------
NORTH CAROLINA 5.8%
Charlotte Mecklenburg Hosp. Auth., North Carolina Health Care
VRDN (Currently 4.20%) 18,480 18,480
North Carolina Ed. Fac. Fin. Agency
Wake Forest Univ., VRDN (Currently 4.20%) 5,000 5,000
North Carolina EFA, Bowman Gray School of Medicine
VRDN (Currently 4.20%) 950 950
Winston Salem, VRDN (Currently 4.30%) 9,500 9,500
Winston Salem, GO
VRDN (Currently 4.30%) 500 500
COP, VRDN (Currently 4.30%) 5,150 5,150
---------
Total North Carolina (Cost $39,580) 39,580
---------
OHIO 1.0%
Cleveland Water & Sewer, 5.00%, 1/1/01 (MBIA Insured) 1,500 1,503
Cuyahoga County Hosp., Univ. Hosp
VRDN (Currently 4.25%)
(AMBAC Insured) 5,000 5,000
Ohio Public Fac. Commission, Higher Ed., 4.625%, 12/1/00 500 501
---------
Total Ohio (Cost $7,004) 7,004
---------
OREGON 0.2%
Oregon, GO, Veterans' Welfare, VRDN (Currently 4.20%) 1,100 1,100
---------
Total Oregon (Cost $1,100) 1,100
---------
PENNSYLVANIA 2.9%
Doylestown Hosp. Auth
VRDN (Currently 4.35%)
(AMBAC Insured) 4,000 4,000
</TABLE>
10
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
Par Value
--------------------------------------------------------------------------------
In thousands
Montgomery County, IDA, W. W. Grainger
VRDN (Currently 4.40%) 1,230 1,230
Northampton County Higher Ed., Lafayette College
VRDN (Currently 4.35%) $ 6,300 $ 6,300
Philadelphia HEFA, Jefferson Health, 4.40%, 3/27/01 5,000 5,000
Wilkins Area IDA, Fairview Extended Care
10.25%, 1/1/21 (Prerefunded 1/1/01+) 3,300 3,460
---------
Total Pennsylvania (Cost $19,990) 19,990
---------
RHODE ISLAND 1.0%
Rhode Island, GO
VRDN (Currently 4.20%) 1,000 1,000
Consolidated Capital Dev. Loan
VRDN (Currently 4.20%) 5,000 5,000
Multi-Modal, VRDN (Currently 4.15%) 1,000 1,000
---------
Total Rhode Island (Cost $7,000) 7,000
---------
SOUTH CAROLINA 0.9%
Spartanburg County, Siemens Energy & Automation
VRDN (Currently 4.30%) 6,400 6,400
---------
Total South Carolina (Cost $6,400) 6,400
---------
SOUTH DAKOTA 4.6%
South Dakota HEFA
VRDN (Currently 4.30%) 5,300 5,300
Avera Health, VRDN (Currently 4.30%)
(MBIA Insured) 7,295 7,295
Sioux Valley Hosp., VRDN (Currently 4.30%) 18,555 18,555
---------
Total South Dakota (Cost $31,150) 31,150
---------
TENNESSEE 5.9%
Clarksville Public Building Auth., Pooled Loan, GO
VRDN (Currently 4.25%) (MBIA Insured) 2,360 2,360
Metropolitan Nashville & Davidson County
Vanderbilt Univ
VRDN (Currently 4.20%) 3,100 3,100
4.15%, 1/15/01 4,750 4,742
11
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
-------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Shelby County, GO, TECP, 4.25 - 4.35%, 9/8 - 10/13/00 $25,000 $25,000
Tennessee Housing Dev. Agency, Homeownership
4.70%, 3/15/01 5,155 5,155
---------
Total Tennessee (Cost $40,357) 40,357
---------
TEXAS 11.8%
Colorado River Municipal Water Dist., Water Transmission Fac
8.50%, 12/1/09 (AMBAC Insured)
(Prerefunded 1/1/01+) 1,150 1,166
Dallas County Community College Dist
VRDN (Currently 4.25%) 13,200 13,200
Dallas-Fort Worth Airport, Int'l. Airport
4.70%, 11/1/00 (MBIA Insured) 4,700 4,700
Gulf Coast IDA, Amoco Oil, 4.60%, 12/1/00 5,000 5,000
Harris County, GO
VRDN (Currently 4.20%) 1,000 1,000
VRDN (Currently 4.30%) 2,000 2,000
Harris County Flood Control Dist., GO, 5.50%, 10/1/00 2,000 2,002
Harris County Health Fac., Texas Childrens Hosp
VRDN (Currently 4.30%) (MBIA Insured) 6,800 6,800
Houston, GO, TECP, 4.15 - 4.35%, 11/10/00 - 1/11/01 9,000 9,000
Lower Colorado River Auth
6.40%, 1/1/01 (AMBAC Insured)
(Escrowed to Maturity) 1,000 1,005
Midland, IDR, W. W. Grainger, VRDN (Currently 4.40%) 775 775
Southwest Higher Ed. Auth
Southern Methodist Univ. Project, VRDN (Currently 4.20%) 7,900 7,900
Texas, GO, 4.45%, 9/5 - 9/7/00 10,000 10,000
Texas PFA, GO
5.00%, 10/1/00 1,300 1,301
9.00%, 10/1/00 6,600 6,626
TECP, 4.20%, 11/16/00 5,000 5,000
Texas Public Fin. Auth., TECP, 4.25%, 10/6/00 2,700 2,700
---------
Total Texas (Cost $80,175) 80,175
---------
</TABLE>
12
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
-----------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
UTAH 1.9%
Intermountain Power Agency
VRDN (Currently 4.33%) (MBIA Insured) $ 5,000 $ 5,000
Utah, GO
VRDN (Currently 4.20%) 1,000 1,000
VRDN (Currently 4.20%)
(AMBAC Insured) 6,050 6,050
Utah Board of Regents, Auxiliary and Campus Fac
VRDN (Currently 4.20%) 1,000 1,000
---------
Total Utah (Cost $13,050) 13,050
---------
VERMONT 0.3%
Vermont Ed. and Health Buildings Fin. Agency
Middlebury College, 4.35%, 5/1/01 2,000 2,000
---------
Total Vermont (Cost $2,000) 2,000
---------
VIRGINIA 2.0%
Charlottesville Ind. Dev., Martha Jefferson Hosp. Project
7.25%, 10/1/05 (Prerefunded 10/1/00+) 1,000 1,023
Chesterfield County, GO, 5.00%, 1/1/01 3,210 3,213
Henrico County Economic Dev.
Refunding Regional Jail Project, 5.00%, 11/1/00 685 686
Madison County IDA, Woodberry Forest School
VRDN (Currently 4.25%) 8,750 8,750
---------
Total Virginia (Cost $13,672) 13,672
---------
WASHINGTON 2.2%
Clark County School Dist., GO
7.125%, 12/1/09 (Prerefunded 12/1/00+) 1,900 1,913
Seattle, Metropolitan Seattle Sewer, 5.00%, 1/1/01 (FGIC Insured) 1,720 1,725
Washington, GO
4.625%, 1/1/01 6,330 6,338
5.50%, 9/1/00 1,000 1,000
6.10%, 9/1/00 (Escrowed to Maturity) 1,905 1,905
Washington Housing Fin. Commission
</TABLE>
13
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY Fund
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Par Value
---------------------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Single Family, 4.35%, 4/1/01 2,350 2,350
---------
Total Washington (Cost $15,231) 15,231
---------
WISCONSIN 3.4%
Wisconsin, GO
4.20%, 11/1/00 $ 1,500 $ 1,501
TECP, 4.20 - 4.30%, 10/17 - 11/10/00 22,000 22,000
---------
Total Wisconsin (Cost $23,501) 23,501
---------
Total Investments in Securities
99.4% of Net Assets (Cost $678,200) $678,200
Other Assets Less Liabilities 4,001
--------
NET ASSETS $682,201
--------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 179
Paid-in-capital applicable to 682,229,951 shares of $0.01 par
value capital stock outstanding; 5,000,000,000 shares authorized 682,022
--------
NET ASSETS $682,201
--------
NET ASSET VALUE PER SHARE
Tax-Exempt Money shares
($665,142,307/665,171,689 shares outstanding) $ 1.00
Tax-Exempt PLUS shares
($17,058,414/17,058,262 shares outstanding) $ 1.00
--------
</TABLE>
+ Used in determining portfolio maturity
AMBAC AMBAC Indemnity Corp.
BAN Bond Anticipation Note
COP Certificates of Participation
DOT Department of Transportation
EFA Educational Facility Authority
FGIC Financial Guaranty Insurance Company
FSA Financial Security Assurance Corp.
GO General Obligation
HEFA Health & Educational Facility Authority
HFA Health Facility Authority
HHEFA Health & Higher Educational Facility Authority
IDA Industrial Development Authority
IDR Industrial Development Revenue
MBIA Municipal Bond Investors Assurance Corp.
PCR Pollution Control Revenue
PFA Public Facility Authority
TAN Tax Anticipation Note
TECP Tax-Exempt Commercial Paper
TRAN Tax Revenue Anticipation Note
VRDN Variable Rate Demand Note
The accompanying notes are an integral part of these financial statements.
14
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY FUND
--------------------------------------------------------------------------------
UNAUDITED
-----------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
6 Months
Ended
8/31/00
Investment Income (Loss)
Interest income $ 14,415
Expenses
Investment management 1,437
Shareholder servicing
Tax-Exempt shares 243
Tax-Exempt PLUS shares 25
Custody and accounting 77
Registration 25
Prospectus and shareholder reports
Tax-Exempt shares 19
Tax-Exempt PLUS shares --
Legal and audit 9
Directors 5
Miscellaneous 27
Total expenses 1,867
Expenses paid indirectly (2)
Net expenses 1,865
Net investment income (loss) 12,550
Realized Gain (Loss)
Net realized gain (loss) on securities --
INCREASE (DECREASE) IN NET ----------
ASSETS FROM OPERATIONS $ 12,550
----------
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY FUND
--------------------------------------------------------------------------------
UNAUDITED
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
8/31/00 2/29/00
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 12,550 $ 19,577
Net realized gain (loss) -- 3
Increase (decrease) in net assets from operations 12,550 19,580
Distributions to shareholders
Net investment income
Tax-Exempt shares (12,266) (19,210)
Tax-Exempt PLUS shares (284) (367)
Decrease in net assets from distributions (12,550) (19,577)
Capital share transactions *
Shares sold
Tax-Exempt shares 283,238 632,661
Tax-Exempt PLUS shares 26,804 44,835
Distributions reinvested
Tax-Exempt shares 11,625 18,234
Tax-Exempt PLUS shares 272 361
Shares redeemed
Tax-Exempt shares (299,335) (691,852)
Tax-Exempt PLUS shares (27,712) (31,710)
Increase (decrease) in net assets from capital share
transactions (5,108) (27,471)
Net Assets
Increase (decrease) during period (5,108) (27,468)
Beginning of period 687,309 714,777
--------------------------
End of period $ 682,201 $ 687,309
--------------------------
</TABLE>
*Capital share transactions at net asset value of $1.00 per share
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY FUND
--------------------------------------------------------------------------------
Unaudited August 31, 2000
-----------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Tax-Exempt Money Fund, Inc. (the fund) is registered under
the Investment Company Act of 1940 as a diversified, open-end management
investment company and commenced operations on April 8, 1981. The fund
seeks preservation of capital, liquidity and, consistent with these
objectives, the highest current income exempt from federal income taxes by
investing in high-quality municipal securities with maturities of 397 days
or less. The fund offers two classes of shares, Tax Exempt and Tax-Exempt
PLUS. Tax-Exempt PLUS Shares were first offered on November 1, 1998, and
provide expanded shareholder services, the cost of which is borne by the
PLUS shareholders. Each class has exclusive voting rights on matters
related solely to that class, separate voting rights on matters which
relate to both classes, and, in all other respects, the same rights and
obligations as the other class.
The accompanying 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 Securities are valued at amortized cost. Assets and liabilities
for which such valuation procedures 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.
Premiums and Discounts Premiums and original issue discounts on municipal
securities are amortized for both financial reporting and tax purposes.
Market discounts are recognized upon disposition of the security as gain
or loss for financial reporting purposes and as ordinary income for tax
purposes.
Class Accounting Shareholder servicing expenses are charged directly to
the class to which they relate. Expenses common to both classes,
investment income, and realized gains and losses are allocated to the
classes based upon the relative daily net assets of each class. Income
distributions are declared by each class on a daily basis, and paid
monthly. Capital gain distributions, if any, are declared by the fund on
an annual basis.
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. Distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are
17
<PAGE>
T. ROWE PRICE TAX-EXEMPT MONEY FUND
--------------------------------------------------------------------------------
determined in accordance with federal income tax regulations and may
differ from those 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.
NOTE 2 - 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 income.
At August 31, 2000, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$678,200,000.
NOTE 3 - RELATED PARTY TRANSACTIONS
The investment management agreement between the fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment
management fee, of which $240,000 was payable at August 31, 2000. The fee
is computed daily and paid monthly, and consists of an individual fund fee
equal to 0.10% 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 T. Rowe Price International, Inc. (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 August 31, 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 the manager and a
wholly owned subsidiary of the manager, pursuant to which the fund
receives certain other services. The manager 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. The fund
incurred expenses pursuant to these related party agreements totaling
approximately $261,000 for the six months ended August 31, 2000, of which
$52,000 was payable at period-end.
18
<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 8:30 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*Access(R)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. **
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.
19
<PAGE>
For fund and account information or to conduct transactions, 24 hours, 7 days a
week By touch-tone telephone Tele*Access 1-800-638-2587 By Account Access on the
Internet www.troweprice.com/access
For assistance with your existing fund account, call:
Shareholder Service Center
1-800-225-5132
To open a brokerage account or obtain information, call:
1-800-638-5660
For the hearing impaired, call: 1-800-367-0763
Internet address:
www.troweprice.com
Plan Account Lines for retirement plan participants:
The appropriate 800 number appears on your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
This report is authorized for distribution only to shareholders and to others
who have received a copy of the prospectus appropriate to the fund or funds
covered in this report.
Walk-In Investor Centers:
For directions, call 1-800-225-5132 or visit our Web site.
Baltimore Area
Downtown - new address
105 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
Wellesley
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
[LOGO OF T. ROWE PRICE]
T. Rowe Price Investment Services, Inc., Distributor. F52-051 8/31/00
