Exhibit to Accompany
Item 77J
Form N-SAR
Wasatch Funds, Inc.
(the "Funds")
In accordance to the provisions of Statement of Position 93 -
2 (SOP 93 - 2) "Determination, Disclosure and Financial
Statement Presentation of Income, Capital Gain and Return
of Capital Distributions by Investment Companies," the
Funds are required to report the accumulated net investment
income (loss) and accumulated net capital gain (loss)
accounts to approximate amounts available for future
distributions on a tax basis (or to offset future realized
capital gains). Accordingly, reclassifications were recorded
to increase undistributed net investment income by
$3,277,692, $271,294, $1,571,636, $1,869,712, $524,904 and $10 and to
decrease undistributed net realized gain on investments by
$6,716,239, $512,250, $4,819,750, $2,913,065, $1,561,544 and $10
and to increase paid-in-capital in excess of par by
$3,438,547, $240,956, $3,248,114, $1,043,353, $1,036,640 and $0 for
the Micro Cap, Small Cap Value, Small Cap Growth, Core Growth, Ultra
Growth and U.S. Treasury Funds, respectively, for the fiscal year
ended September 30, 2000.
The reclassification has no impact on the net asset value of
the Fund and is designed to present the Funds' capital
accounts on a tax basis.
