To the Shareholders and
Board of Directors of
Wasatch Funds, Inc.:
We have audited the accompanying statements of assets and liabilities of
Wasatch Funds, Inc. (the "Funds" or the "Company", a Minnesota
corporation, which includes the Wasatch Micro Cap Fund, Wasatch
Small Cap Value Fund, Wasatch Small Cap Growth Fund, Wasatch Core
Growth Fund, Wasatch Ultra Growth Fund and Wasatch-Hoisington U.S.
Treasury Fund), including the schedules of investments, as of September
30, 2000, and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in
the periods then ended, and the financial highlights for each of the
periods indicated therein. These financial statements and financial
highlights are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements and
financial highlights. Our procedures included confirmation of securities
owned as of September 30, 2000, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Wasatch Funds, Inc. as of September 30, 2000, the results of its
operations for the year then ended, the changes in its net assets for each
of the two years in the periods then ended, and the financial highlights
for each of the periods indicated therein, in conformity with accounting
principles generally accepted in the United States.
Arthur Andersen LLP
Milwaukee, Wisconsin
October 11, 2000
