<PAGE>
Semiannual Report
SMALL-CAP
VALUE FUND
- -------------
June 30, 1997
- -------------
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price
<PAGE>
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
Small-Cap Value Fund
. Led by large-cap stocks, the market advanced strongly during the first half,
with most gains occurring in the second quarter.
. The fund's strong return for the six-month period exceeded the Russell 2000
and also its Lipper peer group index.
. Drawing on our proprietary research, we established new positions in several
companies, including Fabri-Centers of America and North Face. We sold a major
contributor, Keane, because its market cap grew beyond the fund's range.
. Mergers and acquisitions continued to benefit the portfolio, as several
holdings were acquired.
. The market's pace seems unlikely to be sustained, but small-cap stocks could
be poised for better relative performance.
<PAGE>
Fellow Shareholders
In a continuation of a multiyear trend, the stock market enjoyed a powerful
rally during the first half of 1997. Large companies led the way with returns
nearly double those of smaller companies. Virtually all gains occurred in the
second quarter as the economy's more moderate pace convinced investors that the
Federal Reserve would not soon raise interest rates again.
Your fund rose 11.25%, slightly ahead of the small-cap Russell 2000 Index and
outstripping the Lipper Small Cap Fund Index, but well behind the 20.61% return
of the unmanaged Standard & Poor's 500 Stock Index. The fund's 12-month return
of 23.33% was nearly as good as that of the 12 months ending June 30, 1996
(24.99%), marking the ninth consecutive "June year" of positive returns since
the fund's beginning in June 1988. (See additional performance information on
page 6.)
- -----------------------
Performance Comparison
- -----------------------------------------------------
<TABLE>
<CAPTION>
Periods Ended 6/30/97 6 Months 12 Months
- -----------------------------------------------------
<S> <C> <C>
Small-Cap Value Fund 11.25% 23.33%
.....................................................
S&P 500 20.61 34.70
.....................................................
Russell 2000 Index 10.20 16.33
.....................................................
Lipper Small Cap Fund Index 6.04 6.35
.....................................................
</TABLE>
We want to point out a change in the benchmarks shown in the Performance
Comparison table. We have swapped the Nasdaq Composite for the Lipper Small Cap
Fund Index because the Nasdaq's average capitalization has far exceeded that of
our fund. We feel the Lipper index, which includes the Small-Cap Value Fund as
one of its components, is more representative of our market segment. The Russell
2000 is the standard market (as opposed to mutual fund) benchmark for small-
caps, and we always show the S&P 500 to represent the overall stock market.
Market Environment
The year began on a far less optimistic note amid investor concerns about
interest rates and corporate earnings. The S&P 500 struggled during the first
quarter to post a 3% gain, but smaller stocks did far worse. The Russell 2000
lost over 5% in the quarter with emerging
1
<PAGE>
growth stocks the worst performers. At their trough in April, some technology
stocks were down over 20% from the start of the year. Because of its focus on
lower-risk value stocks, the Small-Cap Value Fund declined only about 1% during
the quarter. Following signs that the Federal Reserve would postpone raising
short-term interest rates again, the stock market began to surge in mid-April in
one of the most relentless rallies seen in years. As I write this letter in mid-
July, the S&P 500 and Russell 2000 indices have risen 25% and 20%, respectively,
from their April lows.
What is behind record stock prices? Certainly the United States is enjoying a
confluence of favorable economic factors: solid real economic growth, low
inflation, record employment, and rising consumer confidence, all combined with
an imposing strength internationally in both economic and political spheres.
Demographics also play a part. Baby boomers are beginning to save in increasing
numbers for retirement, and much of this saving has been dedicated to stocks.
Corporations flush with cash continue to buy back their own stock, and merger
mania is as robust as ever. The resulting demand for stocks has pushed up their
prices, which are then justified by the favorable economic background.
Portfolio Activity
The Major Portfolio Changes table that follows this letter shows the 10 largest
purchases and sales during the past six months. The five new names span a wide
variety of industries. Golden Star Resources is a gold mining company
headquartered in Denver with major land holdings in South America. Carbo
Ceramics makes and distributes ceramic materials used to enhance oil and gas
well production. Fabri-Centers of America is one of the country's largest fabric
and craft retailers, while North Face makes and sells specialized outdoor
apparel. Republic Group is a Kansas-based producer of recycled paperboard and
gypsum wallboard. Each of these companies met our strict criteria when we first
bought them: they had a small capitalization (share price times number of shares
outstanding); were undervalued; and possessed a catalyst to spur realization of
their value. Apropos of our discussion elsewhere in this letter about Wall
Street interest, these companies are followed by an average of only three
analysts, one reason we believe they are undervalued.
Among the sales, it is worth noting that Sinter Metals, ERO, and TPC were all
sold because they were taken over by other companies. Even with the stock market
at record levels, we continue to find values
2
<PAGE>
among small companies that prove quite attractive to larger acquirers. We also
want to highlight Keane, a splendid company whose stock made the fund many
multiples of its cost. We finally sold Keane this year when its market
capitalization soared well past $1 billion. Our thanks go to John Keane and his
management team for their stewardship over our six-year holding period.
- ------------------------------------------------------
Why We Do Our Own Research
- --------------------------------------------------------------------------------
I was asked recently why we felt it necessary to devote so much analytical time
and effort researching companies when "the market is efficient." The questioner
referred to the academic hypothesis that stock prices efficiently reflect all
the information available on a company, making it theoretically impossible to
gain an edge by acquiring and analyzing more information.
In looking at the entire stock market, it is hard to deny that stock prices
quickly and efficiently change to reflect new information, such as an earnings
report or a Federal Reserve pronouncement. But what happens if the information
is not widely known? When Microsoft announces a major new product, the press
disseminates the news widely, legions of Wall Street analysts assess the
product's possible impact on revenues and earnings, and tens of thousands of
investors vote with their wallets. But when Analogic (the fund's fifth-largest
holding) introduced a powerful new medical imaging system, the news was heard as
loudly as the proverbial tree falling in the woods.
Merrill Lynch studied the relationship between a company's market value and the
number of Wall Street analysts carrying earnings estimates on the company. On
average, large companies (with over $2.7 billion in market value) were covered
by 22 analysts; small companies, such as those owned by the Small-Cap Value
Fund, were covered by four analysts. In our experience, there are literally
thousands of companies with no Wall Street analytical coverage, period.
In the case of Analogic, T. Rowe Price analysts studied the company's published
reports, interviewed management, visited customer sites, and called competitors.
We analyzed the mosaic of information thus developed and concluded that
Analogic's revenues and earnings were likely to rise significantly over a three-
year period. We felt the stock price reflected only what the company's results
to date might justify, but gave no credit for what might come. In my view, the
information was not widely known because the company enjoyed no Wall Street
coverage or sponsorship. And without wide dissemination of the information,
Analogic was "inefficiently" priced, in this case in the undervalued direction.
Analogic is one of several dozen examples I could cite that justify why T. Rowe
Price invests so much in its analytical staff.
Outlook
How high can the market go? We are as amazed as most observers at
the strength of the stock market's rally, at its duration (since 1990), and at
current valuation levels. We are also puzzled that small-cap
3
<PAGE>
stocks -- while up substantially -- have lagged large stock returns for the past
two years. We caution shareholders not to count on these returns during 1997's
second half -- not because they are impossible, but because a repeat is
improbable based on the past 70 years of stock market history. We are somewhat
less cautious about the small-cap value sector, where we see attractive
valuations particularly relative to those of large companies. Should the market
retreat, we expect to invest our 10% cash reserves aggressively in a wide
variety of inexpensive small stocks.
Respectfully submitted,
/s/ Preston G. Athey
Preston G. Athey
President and Chairman of the Investment Advisory Committee
July 17, 1997
- ----------------------
Portfolio Highlights
- --------------------------------------------------------------------------------
MAJOR PORTFOLIO CHANGES
Listed In Descending Order Of Size
6 Months Ended 6/30/97
<TABLE>
<CAPTION>
Ten Largest Purchases Ten Largest Sales
- --------------------------------------------------------------------------------
<S> <C>
Golden Star Resources * Keane **
Carbo Ceramics * Sinter Metals **
Fabri-Centers of America * TPC **
Republic Group * ERO **
Nichols Research EZ Communications ***
American Radio Systems * Pacific Sunwear **
Giant Cement American Radio Systems
North Face * Farm Family Holdings **
LSI Industries Stein Mart
Cell Genesys Instron
</TABLE>
* Position added
** Position eliminated
*** Acquired by another company
4
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
- ----------------------
Portfolio Highlights
- --------------------------------------------------------------------------------
TWENTY-FIVE LARGEST HOLDINGS
<TABLE>
<CAPTION>
Percent of
Net Assets
6/30/97
- --------------------------------------------------------------------------------
<S> <C>
Suiza Foods 1.6%
................................................................................
McGrath RentCorp 1.6
................................................................................
Electro Rent 1.5
................................................................................
Silicon Valley Bancshares 1.5
................................................................................
Analogic 1.5
- --------------------------------------------------------------------------------
Poe & Brown 1.4
................................................................................
Community First Bankshares 1.4
................................................................................
CSS Industries 1.3
................................................................................
Hancock Fabrics 1.2
................................................................................
UICI 1.1
- --------------------------------------------------------------------------------
Commercial Federal 1.1
................................................................................
CORT Business 1.1
................................................................................
Furon 1.0
................................................................................
Columbus Realty Trust 1.0
................................................................................
Grey Advertising 1.0
- --------------------------------------------------------------------------------
Seattle Filmworks 1.0
................................................................................
PXRE 1.0
................................................................................
Unitog 1.0
................................................................................
Puerto Rican Cement 0.9
................................................................................
Saga Communications 0.9
- --------------------------------------------------------------------------------
Analysts International 0.9
................................................................................
Landauer 0.9
................................................................................
First Republic Bancorp 0.9
................................................................................
Sun Communities 0.8
................................................................................
TBC 0.8
- --------------------------------------------------------------------------------
Total 28.4%
</TABLE>
5
<PAGE>
T. Rowe Price Small-Cap Value 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 a broad-based average or index. The index
return does not reflect expenses, which have been deducted from the fund's
return.
[LINE GRAPH APPEARS HERE]
SMALL-CAP VALUE FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Index Fund-Line Fund-Area
<S> <C> <C> <C>
6/30/88 10,000 10,000 10,000
6/89 11,273 10,775 10,775
6/90 11,617 11,870 11,870
6/91 11,760 12,369 12,369
6/92 13,470 14,317 14,317
6/93 16,966 18,259 18,259
6/94 17,714 19,739 19,739
6/95 21,269 23,106 23,106
6/96 26,357 28,879 28,879
6/97 30,678 35,616 35,616
</TABLE>
- ------------------------------------
Average Annual Compound Total Return
- --------------------------------------------------------------------------------
This table shows how the fund would have performed if its actual (or cumulative)
returns for the periods shown had been earned at a constant rate each year.
<TABLE>
<CAPTION>
Since Inception
Periods Ended 6/30/97 1 Year 3 Years 5 Years Inception Date
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Small-Cap Value Fund 23.33% 21.74% 19.99% 15.16% 6/30/88
................................................................................
</TABLE>
Income return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
6
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
Unaudited
- --------------------
Financial Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
6/30/97 12/31/96 12/31/95 12/31/94 12/31/93 12/31/92
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 19.56 $ 16.53 $ 13.40 $ 14.68 $ 12.28 $10.37
................................................................................
Investment activities
Net investment income 0.09 0.22 0.18 0.13 0.12 0.11
Net realized and
unrealized gain (loss) 2.11 3.84 3.74 (0.35) 2.73 2.05
................................................................................
Total from
investment activities 2.20 4.06 3.92 (0.22) 2.85 2.16
................................................................................
Distributions
Net investment income - (0.23) (0.18) (0.14) (0.10) (0.10)
Net realized gain - (0.80) (0.61) (0.92) (0.35) (0.15)
................................................................................
Total distributions - (1.03) (0.79) (1.06) (0.45) (0.25)
NET ASSET VALUE
End of period $ 21.76 $ 19.56 $ 16.53 $ 13.40 $ 14.68 $12.28
--------------------------------------------------------------------------------
Ratios/Supplemental Data
Total return 11.25% 24.61% 29.29% (1.38)% 23.30% 20.87%
...............................................................................................................
Ratio of expenses to
average net assets 0.89%+ 0.94% 0.98% 0.97% 1.05% 1.25%
...............................................................................................................
Ratio of net investment
income to average
net assets 0.92%+ 1.28% 1.59% 0.93% 0.91% 0.98%
...............................................................................................................
Portfolio turnover rate 14.0%+ 15.2% 18.1% 21.4% 11.8% 12.1%
...............................................................................................................
Average commission
rate paid $ 0.0425 $ 0.0296 - - - -
...............................................................................................................
Net assets, end of period
(in millions) $ 1,658 $ 1,410 $ 936 $ 408 $ 452 $ 264
...............................................................................................................
</TABLE>
+ Annualized.
The accompanying notes are an integral part of these financial statements.
7
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
Unaudited June 30, 1997
<TABLE>
<CAPTION>
- ------------------------
Portfolio of Investments Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Common Stocks & Warrants 86.0%
FINANCIAL 14.7%
Bank and Trust 6.2%
Commercial Federal 487,500 $ 18,098
................................................................................
Community First Bankshares 600,000 22,950
................................................................................
First Bell Bancorp + 550,000 9,075
................................................................................
First National Bank of Anchorage 5,000 9,125
................................................................................
First Republic Bancorp +* 639,400 14,866
................................................................................
Glacier Bancorp 198,000 3,589
................................................................................
Silicon Valley Bancshares +* 545,000 24,661
................................................................................
102,364
.............
Insurance 6.3%
Financial Security Assurance 150,000 5,841
................................................................................
Markel * 55,000 7,040
................................................................................
Medical Assurance * 261,320 10,616
................................................................................
NYMAGIC 500,000 10,312
................................................................................
Poe & Brown + 652,900 23,749
................................................................................
Presidential Life 400,000 7,763
................................................................................
PXRE 546,700 16,811
................................................................................
SCPIE Holdings 37,000 1,029
................................................................................
Sphere Drake Holdings 300,000 2,569
................................................................................
UICI * 640,000 18,840
................................................................................
104,570
.............
Financial Services 2.2%
Allied Capital Commercial 500,000 12,062
................................................................................
Allied Capital II 210,000 4,463
................................................................................
Allied Capital Lending 140,000 2,083
................................................................................
Medallion Financial 280,000 5,302
................................................................................
Quick & Reilly 208,125 4,839
................................................................................
Sirrom Capital 250,000 8,625
................................................................................
37,374
.............
Total Financial 244,308
.............
CONSUMER NONDURABLES 10.2%
Beverages 0.1%
Chalone Wine Group *++ 175,000 1,990
................................................................................
</TABLE>
8
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Chalone Wine Group, Warrants, 7/19/98 *++ 142,857 $ 469
................................................................................
2,459
.............
Food Processing 1.9%
Suiza Foods * 655,000 26,214
................................................................................
Sylvan +* 530,000 5,731
................................................................................
31,945
.............
Hospital Supplies/Hospital Management 2.1%
Allied Healthcare Products +* 526,000 3,550
................................................................................
IGEN * 100,000 763
................................................................................
Landauer + 650,000 15,072
................................................................................
Lunar * 100,000 2,150
................................................................................
Owens & Minor 600,000 8,962
................................................................................
Safeguard Health +* 425,000 4,569
................................................................................
35,066
.............
Pharmaceuticals 0.8%
Bone Care International +* 325,000 4,387
................................................................................
COR Therapeutics * 325,000 3,494
................................................................................
Immulogic Pharmaceuticals * 200,000 625
................................................................................
Nexstar Pharmaceuticals * 65,900 931
................................................................................
Quidel +* 1,200,000 3,825
................................................................................
13,262
.............
Biotechnology 0.3%
Cell Genesys +* 900,000 4,388
................................................................................
4,388
.............
Miscellaneous Consumer Products 5.0%
American Safety Razor * 525,000 9,450
................................................................................
Applied Extrusion Technologies +* 850,000 10,094
................................................................................
Boston Acoustics 220,000 5,253
................................................................................
BWAY +* 500,000 11,625
................................................................................
Chic by H.I.S. +* 650,000 4,306
................................................................................
Culp 514,800 9,331
................................................................................
Fab Industries + 316,300 9,904
................................................................................
Horace Small Apparel ADR * 200,000 1,325
................................................................................
Martin Industries 400,000 2,400
................................................................................
QuikSilver * 86,400 2,754
................................................................................
Rival + 800,000 11,450
................................................................................
Superior Surgical Mfg. 400,000 4,700
................................................................................
82,592
.............
Total Consumer Nondurables 169,712
.............
</TABLE>
9
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
CONSUMER SERVICES 11.5%
General Merchandisers 0.3%
Fred's (Class A) 320,000 $ 4,780
................................................................................
4,780
.............
Specialty Merchandisers 5.3%
BMC West * 400,000 4,850
................................................................................
CompuCom Systems * 400,000 2,800
................................................................................
CSS Industries +* 699,000 22,106
................................................................................
Designs * 400,000 1,900
................................................................................
Fabri-Centers of America (Class B) +* 473,700 11,073
................................................................................
Frederick's of Hollywood (Class A) 102,600 609
................................................................................
Frederick's of Hollywood (Class B) 265,000 1,573
................................................................................
Genovese Drug Stores (Class A) 298,630 5,879
................................................................................
Hancock Fabrics + 1,450,000 19,938
................................................................................
Haverty Furniture + 450,000 5,681
................................................................................
S & K Famous Brands +* 425,000 4,755
................................................................................
Stein Mart * 200,000 6,025
................................................................................
87,189
.............
Entertainment and Leisure 3.6%
Carmike Cinemas (Class A) * 300,000 9,825
................................................................................
Consolidated Products * 731,487 13,624
................................................................................
Fresh Choice +* 540,000 2,025
................................................................................
North Face * 200,000 3,625
................................................................................
Rare Hospitality International * 305,000 3,765
................................................................................
Ruby Tuesday * 300,000 6,731
................................................................................
Seattle Filmworks +* 1,425,000 16,833
................................................................................
Uno Restaurant * 527,800 3,728
................................................................................
60,156
.............
Media and Communications 2.3%
American Radio Systems (Class A) * 50,000 1,994
................................................................................
Courier + 130,000 2,323
................................................................................
Grey Advertising 51,865 16,908
................................................................................
Price Communications * 300,000 2,625
................................................................................
Saga Communications (Class A) * 820,312 15,176
................................................................................
39,026
.............
Total Consumer Services 191,151
.............
</TABLE>
10
<PAGE>
T. Rowe Price Small-Cap Value Fund
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------
In thousands
<S> <C> <C>
CONSUMER CYCLICALS 8.2%
Automobiles and Related 1.7%
Littelfuse * 90,000 $ 2,520
...........................................................................
Myers Industries 300,000 5,062
...........................................................................
R & B * 352,000 2,860
...........................................................................
Republic Automotive Parts +* 275,000 3,919
...........................................................................
Republic Automotive Parts +*++ 25,500 327
...........................................................................
TBC +* 1,650,000 14,025
...........................................................................
28,713
.............
Building and Real Estate 5.1%
Columbus Realty Trust, REIT + 750,000 17,063
...........................................................................
Glenborough Realty Trust, REIT 350,000 8,838
...........................................................................
Innkeepers USA, REIT 700,000 10,500
...........................................................................
National Health Investors, REIT 300,000 11,775
...........................................................................
Pacific Gulf Properties, REIT 250,000 5,500
...........................................................................
Skyline, REIT 335,000 8,249
...........................................................................
Sun Communities, REIT 418,600 14,049
...........................................................................
United Dominion Realty Trust, REIT 570,000 8,087
...........................................................................
84,061
.............
Miscellaneous Consumer Durables 1.4%
Chromcraft Revington +* 450,000 12,881
...........................................................................
Ellett Brothers + 300,000 1,556
...........................................................................
Juno Lighting 300,000 4,838
...........................................................................
Stanley Furniture * 175,000 4,047
...........................................................................
23,322
.............
Total Consumer Cyclicals 136,096
.............
TECHNOLOGY 6.7%
Electronic Components 2.5%
Analogic + 709,000 24,328
...........................................................................
Badger Meter + 122,000 3,614
...........................................................................
PCD +* 300,000 5,100
...........................................................................
Pioneer-Standard Electronics 217,100 2,944
...........................................................................
Planar Systems +* 560,000 5,740
...........................................................................
41,726
.............
Electronic Systems 0.2%
CEM +* 325,000 2,803
...........................................................................
</TABLE>
11
<PAGE>
T. Rowe Price Small-Cap Value Fund
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------
In thousands
<S> <C> <C>
Instron 50,000 $ 712
...........................................................................
3,515
.............
Information Processing 0.6%
DH Technology +* 575,000 9,272
...........................................................................
9,272
.............
Telecommunications Equipment 0.4%
Mosaix * 375,000 5,156
...........................................................................
Syntellect +* 700,000 1,838
...........................................................................
6,994
.............
Aerospace and Defense 3.0%
COMARCO +* 294,400 5,612
...........................................................................
DONCASTERS ADR +* 100,000 2,313
...........................................................................
Nichols Research * 465,000 9,620
...........................................................................
Raven Industries + 371,000 8,927
...........................................................................
Tech-Sym * 200,000 6,675
...........................................................................
TransTechnology 219,000 4,982
...........................................................................
Woodward Governor 330,000 11,921
...........................................................................
50,050
.............
Total Technology 111,557
.............
CAPITAL EQUIPMENT 3.5%
Electrical Equipment 1.5%
Holophane +* 650,000 12,756
...........................................................................
LSI Industries 312,500 4,160
...........................................................................
Thomas Industries 250,000 7,188
...........................................................................
24,104
.............
Machinery 1.8%
Alamo Group + 600,000 12,487
...........................................................................
Farrel 268,000 921
...........................................................................
K-Tron +* 250,000 3,688
...........................................................................
Scotsman Industries 300,000 8,550
...........................................................................
Versa Technologies + 325,000 4,956
...........................................................................
30,602
.............
Other Capital Equipment 0.2%
OmniQuip International * 125,000 2,887
...........................................................................
2,887
.............
Total Capital Equipment 57,593
</TABLE>
12
<PAGE>
T. Rowe Price Small-Cap Value Fund
- ---------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- ---------------------------------------------------------------------------
In thousands
<S> <C> <C>
BUSINESS SERVICES AND
TRANSPORTATION 14.9%
Computer Service and Software 1.8%
Analysts International 450,000 $ 15,075
...........................................................................
State of the Art * 370,000 4,058
...........................................................................
Systems & Computer Technology * 225,000 5,991
...........................................................................
VMARK Software +* 650,000 5,119
...........................................................................
30,243
.............
Distribution Services 1.3%
Allou Health & Beauty * 450,000 3,150
...........................................................................
JP Foodservice * 172,500 4,948
...........................................................................
Richardson Electronics + 550,000 4,606
...........................................................................
Sullivan Dental Products 250,000 4,594
...........................................................................
VWR * 287,000 4,628
...........................................................................
21,926
.............
Environmental 0.8%
BHA Group (Class A) + 520,300 9,886
...........................................................................
EMCON +* 600,000 2,250
...........................................................................
Fluor Daniel / GTI * 58,651 414
...........................................................................
TRC * 325,000 1,300
...........................................................................
13,850
.............
Transportation Services 2.0%
Builders Transport +* 445,000 1,182
...........................................................................
Frozen Food Express 552,000 4,795
...........................................................................
International Shipholding + 650,000 11,091
...........................................................................
KLLM Transport * 90,000 1,103
...........................................................................
M.S. Carriers * 200,000 5,000
...........................................................................
Midwest Express Holdings * 199,350 5,457
...........................................................................
Transport Corp of America +* 358,500 4,840
...........................................................................
33,468
.............
Miscellaneous Business Services 9.0%
Aaron Rents (Class A) 17,400 209
...........................................................................
Aaron Rents (Class B) 750,000 9,891
...........................................................................
AMRESCO * 350,000 7,547
...........................................................................
Business Resource Group +* 380,000 1,354
...........................................................................
CORT Business * 600,000 17,700
...........................................................................
Electro Rent +* 1,000,000 24,875
...........................................................................
Insituform Technologies (Class A) * 700,000 4,331
...........................................................................
Leasing Solutions * 320,000 4,840
...........................................................................
</TABLE>
13
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
McGrath RentCorp + 1,298,000 $ 25,960
................................................................................
Mine Safety Appliances 100,600 6,212
................................................................................
MYR Group + 260,000 4,680
................................................................................
Right Management Consultants +* 500,000 5,687
................................................................................
Sealright + 700,000 8,312
................................................................................
Tab Products + 400,000 3,950
................................................................................
UniFirst 340,000 6,800
................................................................................
Unitog + 592,000 15,910
................................................................................
148,258
............
Total Business Services and Transportation 247,745
............
ENERGY 3.2%
Energy Services 1.7%
Carbo Ceramics 471,700 12,972
................................................................................
Newpark Resources * 100,000 3,375
................................................................................
Offshore Logistics * 425,000 8,128
................................................................................
Pitt-DesMoines 95,700 3,110
................................................................................
27,585
............
Exploration and Production 1.2%
Cross Timbers Oil 20,000 385
................................................................................
Devon Energy 130,800 4,807
................................................................................
HS Resources * 750,000 10,594
................................................................................
Ocean Energy * 100,000 4,625
................................................................................
20,411
............
Gas Transmission 0.3%
Atrion + 300,000 4,650
................................................................................
4,650
............
Total Energy 52,646
............
PROCESS INDUSTRIES 6.1%
Diversified Chemicals 0.7%
Aceto + 400,000 5,900
................................................................................
LeaRonal 200,000 5,700
................................................................................
11,600
............
Specialty Chemicals 2.7%
Furon + 550,000 17,256
................................................................................
Hauser +* 600,000 3,300
................................................................................
</TABLE>
14
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Sybron Chemical +* 450,000 $ 8,775
................................................................................
Synalloy 279,000 4,813
................................................................................
Tuscarora + 719,000 11,055
................................................................................
45,199
............
Paper and Paper Products 1.0%
Mosinee Paper 450,000 10,940
................................................................................
Republic Group 270,900 5,452
................................................................................
16,392
............
Building and Construction 1.7%
Giant Cement +* 650,000 12,066
................................................................................
Puerto Rican Cement + 470,000 15,304
................................................................................
27,370
............
Total Process Industries 100,561
............
BASIC MATERIALS 4.4%
Metals 2.1%
Cold Metal Products +* 550,000 3,094
................................................................................
Gibraltar Steel * 428,700 9,753
................................................................................
Lone Star Technologies * 354,000 10,133
................................................................................
Material Sciences * 500,000 7,719
................................................................................
Steel Technologies 350,000 3,719
................................................................................
34,418
............
Mining 0.9%
Dayton Mining * 1,700,000 6,481
................................................................................
Golden Star Resources * 600,000 4,875
................................................................................
SAMAX Gold (144a) (CAD) * 240,000 999
................................................................................
TVX Gold * 300,000 1,594
................................................................................
13,949
............
Miscellaneous Materials 1.4%
Oil-Dri + 500,000 8,031
................................................................................
Penn Virginia 211,600 10,474
................................................................................
Synthetic Industries * 237,000 5,140
................................................................................
23,645
............
Total Basic Materials 72,012
............
INVESTMENT COMPANIES 0.5%
First Financial Fund 429,690 7,412
................................................................................
Total Investment Companies 7,412
............
</TABLE>
15
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
<S> <C> <C>
MISCELLANEOUS 2.1%
Western Water * 335,200 $ 4,525
................................................................................
Other Miscellaneous Common Stocks 30,777
................................................................................
Total Miscellaneous 35,302
.............
Total Common Stocks & Warrants (Cost $979,884) 1,426,095
.............
Preferred Stocks 0.3%
Prime Retail, Cum., 10.50%, Series A, REIT 180,000 4,590
................................................................................
Total Preferred Stocks (Cost $3,454) 4,590
.............
Convertible Preferred Stocks 1.2%
Cross Timbers Oil, (Series A) 344,400 10,719
................................................................................
Prime Retail, (Series B), REIT, 8.50% 300,000 7,275
................................................................................
Western Water, (Series C) 2,000 1,915
................................................................................
Miscellaneous Convertible Preferred Stocks 912
................................................................................
Total Convertible Preferred Stocks (Cost $14,499) 20,821
.............
Convertible Bonds 0.6%
Builders Transport, Deb.
6.50%, 5/1/11 +* $ 1,158,000 457
............................................................................
8.00%, 8/15/05 +* 1,700,000 808
............................................................................
Glycomed, Sub. Deb., 7.50%, 1/1/03 * 2,000,000 1,750
................................................................................
Leasing Solutions, Sub. Notes, 6.875%, 10/1/03 2,000,000 1,648
................................................................................
Offshore Logistics, Sub. Notes, (144a), 6.00%,
12/15/03 3,000,000 3,256
................................................................................
PerSeptive Biosystems, Sub. Notes, (144a)
8.25%, 8/15/01 2,000,000 1,570
................................................................................
Richardson Electronics, 7.25%, 12/15/06 + 500,000 388
................................................................................
Total Convertible Bonds (Cost $10,196) 9,877
.............
Corporate Bonds 0.1%
Owens & Minor, Sub. Notes, 10.875%, 6/1/06 2,000,000 2,230
................................................................................
Total Corporate Bonds (Cost $2,032) 2,230
.............
</TABLE>
16
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- --------------------------------------------------------------------------------------
In thousands
<S> <C> <C>
Short-Term Investments 12.3%
Certificates of Deposit 4.2%
ABN AMRO, 5.81%, 8/29/97 $10,000,000 $ 10,003
......................................................................................
Bayerische Vereinsbank, (London), 5.63%, 8/5/97 10,000,000 10,000
......................................................................................
Caisse National De Credit Agricole, 5.63%, 8/11/97 10,000,000 10,000
......................................................................................
Creditanstalt Bankverien, 5.57%, 9/3/97 10,000,000 9,999
......................................................................................
Deutsche Bank AG, 5.56%, 7/21/97 10,000,000 10,000
......................................................................................
MBNA, 5.63%, 7/2/97 10,000,000 10,000
......................................................................................
Societe Generale, 5.92%, 9/17/97 10,000,000 10,006
......................................................................................
70,008
............
Commercial Paper 6.8%
Abbey National, 5.55%, 8/12/97 10,000,000 9,935
......................................................................................
Caisse des Depots et Consignations, 4(2), 5.55%, 9/18/97 10,000,000 9,878
......................................................................................
Corporate Asset Funding, 4(2), 5.55%, 9/10/97 10,000,000 9,891
......................................................................................
Delaware Funding, 4(2), 5.56%, 7/15/97 10,000,000 9,978
......................................................................................
Dover Funding, 4(2), 5.57%, 7/14/97 10,000,000 9,980
......................................................................................
Ford Motor Credit Company, 5.57%, 7/18/97 10,000,000 9,974
......................................................................................
International Lease Finance, 5.50%, 7/7/97 10,000,000 9,991
......................................................................................
Merrill Lynch & Co., 5.57%, 8/20/97 10,000,000 9,923
......................................................................................
New Center Asset Trust, 5.62%, 7/2/97 10,000,000 9,998
......................................................................................
Westdeutsche Landesbank, 5.53%, 7/10/97 10,000,000 9,986
......................................................................................
Investments in Commercial Paper through a Joint Account
6.05 - 6.20%, 7/1/97 13,446,525 13,447
......................................................................................
112,981
............
Medium-Term Notes 0.6%
Morgan Stanley Group, VR, 6.05%, 9/17/97 10,000,000 10,023
......................................................................................
10,023
............
Structured Investment Vehicles 0.6%
Short Term Card Account Trust, VR, (144a)
5.71%, 1/15/98 10,000,000 10,000
......................................................................................
10,000
............
U.S. Government Obligations 0.1%
U.S. Treasury Bills, 5.61%, 4/2/98 1,000,000 957
......................................................................................
957
............
Total Short-Term Investments (Cost $203,969) 203,969
............
</TABLE>
17
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
- ---------------------------------------------------------------------------------------------------------
In thousands
<S> <C>
Total Investments in Securities
100.5% of Net Assets (Cost $1,214,034) $ 1,667,582
Futures Contracts
In thousands
<CAPTION>
Contract Unrealized
Expiration Value Gain (Loss)
---------- ---------- -----------
<S> <C> <C> <C> <C>
Long, 150 Russell 2000 Stock Index
contracts, $1,000,000 of U.S. Treasury Bills
pledged as initial margin 9/97 $ 29,918 $ 620
Net payments (receipts) of variation
margin to date (477)
...........
Variation margin receivable
(payable) on open
futures contracts 143
Other Assets Less Liabilities (9,262)
............
NET ASSETS $ 1,658,463
------------
</TABLE>
+ Affiliated company
* Non-income producing
++ Securities contain some restrictions as to public resale--total of
such securities at period-end amounts to 0.17% of net assets.
REIT Real Estate Investment Trust
VR Variable rate
4(2) Commercial paper sold within terms of a private placement memorandum,
exempt from registration under section 4.2 of the Securities Act of
1933, as amended, and may be sold only to dealers in that program or
other "accredited investors."
144a Security was purchased pursuant to Rule 144a under the Securities Act
of 1933 and may not be resold subject to that rule except to qualified
institutional buyers -- total of such securities at period-end amounts
to 0.89% of net assets.
CAD Canadian dollar
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
Unaudited June 30, 1997
- -----------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<S> <C>
Assets
Investments in securities, at value
Affiliated companies (cost $463,688) $ 622,460
Other companies (cost $750,346) 1,045,122
.............
Total investments in securities 1,667,582
Other assets 10,009
.............
Total assets 1,677,591
.............
Liabilities
Total liabilities 19,128
.............
NET ASSETS $ 1,658,463
-------------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 6,901
Accumulated net realized gain/loss - net of distributions 65,666
Net unrealized gain (loss) 454,168
Paid-in-capital applicable to 76,230,904 shares of
$0.01 par value capital stock outstanding;
1,000,000,000 shares authorized 1,131,728
.............
NET ASSETS $ 1,658,463
-------------
NET ASSET VALUE PER SHARE $ 21.76
-------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
Unaudited
- -----------------------
Statement of Operations
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
6 Months
Ended
6/30/97
<S> <C>
Investment Income
Income
Dividend (including $3,506 from affiliated companies) $ 8,637
Interest (including $10 from affiliated companies) 4,870
........
Total income 13,507
........
Expenses
Investment management 5,023
Shareholder servicing 1,378
Prospectus and shareholder reports 87
Custody and accounting 71
Registration 66
Legal and audit 8
Directors 7
Miscellaneous 6
........
Total expenses 6,646
........
Net investment income 6,861
........
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities (including $7,851 from affiliated companies) 45,960
Futures 592
Foreign currency transactions (42)
........
Net realized gain (loss) 46,510
........
Change in net unrealized gain or loss
Securities 111,025
Futures 563
Other assets and liabilities
denominated in foreign currencies 3
........
Change in net unrealized gain or loss 111,591
........
Net realized and unrealized gain (loss) 158,101
........
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $164,962
--------
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
Unaudited
- ----------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
6/30/97 12/31/96
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ 6,861 $ 15,340
Net realized gain (loss) 46,510 61,605
Change in net unrealized gain or loss 111,591 188,653
.........................
Increase (decrease) in net assets from
operations 164,962 265,598
.........................
Distributions to shareholders
Net investment income - (15,749)
Net realized gain - (54,759)
.........................
Decrease in net assets from distributions - (70,508)
.........................
Capital share transactions *
Shares sold 231,472 467,160
Distributions reinvested - 67,615
Shares redeemed (147,849) (256,974)
Redemption fees received 49 513
.........................
Increase (decrease) in net assets from capital
share transactions 83,672 278,314
.........................
Net Assets
Increase (decrease) during period 248,634 473,404
Beginning of period 1,409,829 936,425
.........................
End of period $1,658,463 $1,409,829
-------------------------
*Share information
Shares sold 11,575 26,142
Distributions reinvested - 3,482
Shares redeemed (7,418) (14,216)
.........................
Increase (decrease) in shares outstanding 4,157 15,408
</TABLE>
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
Unaudited June 30, 1997
- -----------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Small-Cap Value 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 June 30, 1988.
Valuation Equity securities are valued at the last quoted sales price on the day
the valuations are made. A security which 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. Listed securities not traded on a particular day and
securities regularly traded in the over-the-counter market are valued at the
mean of the latest bid and asked prices.
Debt securities are generally traded in the over-the-counter market and are
valued at a price deemed best to reflect fair value as quoted by dealers who
make markets in these securities or by an independent pricing service. Short-
term debt securities are valued at amortized cost which, when combined with
accrued interest, approximates fair value. Financial futures contracts are
valued at closing settlement prices.
For purposes of determining the fund's net asset value per share, the U.S.
dollar value of all assets and liabilities initially expressed in foreign
currencies is determined by using the mean of the bid and offer prices of such
currencies against U.S. dollars quoted by a major bank.
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.
Affiliated Companies Investments in companies 5% or more of whose outstanding
voting securities are held by the fund are defined as "Affiliated Companies" in
Section 2(a)(3) of the Investment Company Act of 1940.
Currency Translation Assets and liabilities are translated into U.S. dollars at
the prevailing exchange rate at the end of the reporting period. 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.
22
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
Premiums and Discounts Premiums and discounts on debt securities are amortized
for both financial reporting and tax purposes.
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 those determined in accordance with generally
accepted accounting principles. 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 or
Liabilities, respectively, and in Change in net unrealized gain or loss in the
accompanying financial statements.
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 June 30, 1997, 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.
Commercial Paper Joint Account The fund, and other affiliated funds, may
transfer uninvested cash into a commercial paper joint account, the daily
aggregate balance of which is invested in high-grade commercial paper. All
securities purchased by the joint account satisfy the fund's criteria as to
quality, yield, and liquidity.
Other Purchases and sales of portfolio securities, other than short-term
securities, aggregated $168,189,000 and $93,149,000, respectively, for the six
months ended June 30, 1997.
23
<PAGE>
T. Rowe Price Small-Cap Value Fund
- --------------------------------------------------------------------------------
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.
At June 30, 1997, the aggregate cost of investments for federal income tax and
financial reporting purposes was $1,214,034,000, and net unrealized gain
aggregated $453,548,000, of which $496,588,000 related to appreciated
investments and $43,040,000 to depreciated investments.
NOTE 4 - 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 $893,000 was payable at June 30, 1997. The fee is computed daily and
paid monthly, and consists of an individual fund fee equal to 0.35% 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 Rowe Price-Fleming
International, Inc. (the group). The group fee rate ranges from 0.48% for the
first $1 billion of assets to 0.30% for assets in excess of $80 billion. At June
30, 1997, and for the six months then ended, the effective annual group fee rate
was 0.33%. 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 two
wholly owned subsidiaries 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. 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 $1,225,000 for the six months
ended June 30, 1997, of which $222,000 was payable at period-end.
24
<PAGE>
T. Rowe Price Mutual Funds
- --------------------------------------------------------------------------------
STOCK FUNDS
.............................
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
Science & Technology
Small-Cap Stock**
Small-Cap Value*
Spectrum Growth
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
.............................
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Insured
Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Insured
Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
.............................
International/Global
Global Government Bond
Emerging Markets Bond
International Bond
MONEY MARKET FUNDS
.............................
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
.............................
Balanced
Personal Strategy Income
Personal Strategy Balanced
Personal Strategy Growth
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
.............................
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
*Closed to new investors.
**Formerly the OTC Fund.
Please call for a prospectus. Read it carefully before you invest or send money.
The T. Rowe Price No-Load Variable Annuity [#V6021] is issued by Security
Benefit Life Insurance Company. In New York, it [#FSB201(11-96)] is issued by
First Security Benefit Life Insurance Company of New York, White Plains, NY.
T. Rowe Price refers to the underlying portfolios' investment managers and the
distributors, T. Rowe Price Investment Services, Inc.; T. Rowe Price Insurance
Agency, Inc.; and T. Rowe Price Insurance Agency of Texas, Inc. The Security
Benefit Group of Companies and the T. Rowe Price companies are not affiliated.
The variable annuity may not be available in all states. The contract has
limitations. Call a representative for costs and complete details of the
coverage.
25
<PAGE>
For yield, price, last transaction,
current balance, or to conduct
transactions, 24 hours, 7 days
a week, call Tele*Access/(R)/:
1-800-638-2587 toll free
For assistance
with your existing
fund account, call:
Shareholder Service Center
1-800-225-5132 toll free
410-625-6500 Baltimore area
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
www.troweprice.com
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 of the
T. Rowe Price Small-Cap Value Fund.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor.
