<PAGE>
Semiannual Report
SMALL-CAP
VALUE FUND
-------------
JUNE 30, 2000
-------------
T. ROWE PRICE
<PAGE>
REPORT HIGHLIGHTS
--------------------------------------------------------------------------------
Small-Cap Value Fund
. After a roller-coaster ride, small-cap stocks ended the first half of 2000
with a modest gain.
. The fund performed significantly better than its benchmarks for the
six-month period, as investors recognized the solid values of many
portfolio holdings.
. Takeovers continued to dominate portfolio activity, resulting in strong
gains for the fund.
. New positions came from a broad range of industries, including oil
services, financial services, furniture retailing, and transportation.
. The fund should benefit from investors' renewed attention to stock
fundamentals, especially in the long-ignored small-cap sector.
UPDATES AVAILABLE
For updates on T. Rowe Price funds following the end of each calendar quarter,
please see our Web site at www.troweprice.com.
<PAGE>
FELLOW SHAREHOLDERS
Small-cap stocks had a roller-coaster ride during the first half of 2000. As
measured by the Russell 2000, small-caps rose 22% to their year-to-date peak in
March, then fell 28% within the next six weeks, before rebounding to finish the
first half up 3%. Small-cap value stocks were substantially less volatile, and,
as noted below, concluded the period with returns up nearly 6%. While not
robust, small-caps nevertheless did better than the S&P 500, which provided a
negative return (-0.43%) for the six-month period.
----------------------
PERFORMANCE COMPARISON
--------------------------------------------------------------------------------
Periods Ended 6/30/00 6 Months 12 Months
--------------------------------------------------------------------------------
Small-Cap Value Fund 9.59% 6.25%
Russell 2000 Index 3.04 14.32
Russell 2000 Value Index 5.85 -0.94
Lipper Small-Cap Value Fund Index 4.96 1.05
The Small-Cap Value Fund had a solid first half, surpassing all of its
benchmarks for both the second quarter and the full six months. We were
especially helped by good performance among our largest holdings, including
Silicon Valley Bancshares (up 72%), Cross Timbers Oil (up 144%), and HS
Resources (up 74%). In addition, the fund had no exposure to Internet stocks, a
stance that hurt last year but helped us in 2000 after the Internet group began
a steep correction. Returns were constrained by poor performance of some
holdings, particularly Medical Assurance (down 44%), and IT Group (down 47%). In
both cases, we believe that deterioration in the companies' operating results is
transitory, so we have held our positions in their stocks.
The improved results for small-cap stocks relative to large-caps continued a
pattern that began in April 1999. Prior to that, small-caps had lagged for
nearly five years, causing many investors to become disenchanted with small
companies and move their capital to the better-performing large-cap group. Led
by bellwether names such as General Electric, Microsoft, and Cisco Systems, the
S&P 500 index enjoyed five years of double-digit returns.
1
<PAGE>
But small stocks began to rebound last year, so that investors are now willing
to consider this group on at least an equal footing with large stocks.
Small-company earnings growth has risen and valuations remain historically
attractive. But perhaps the most salient change is that the favored large
companies are not "bulletproof," as evidenced by the government's antitrust
litigation against Microsoft. Faced with a choice, investors today will consider
the merits of the small-cap group, and if history is a guide, may increasingly
shift assets into small stocks to try to catch their currently superior results.
PORTFOLIO ACTIVITY
Once again, takeovers dominated our sales activity during the first half of
2000. Five of the 10 largest sales (Cameron Ashley, OEA, CEM, Savoir Technology,
and MYR Group) were the targets of takeovers. In all but one case, the merger
price was at least 35% above the stock price immediately prior to the takeover
announcement. We also trimmed our holdings in Silicon Valley Bancshares and Lone
Star Technologies, stocks that have done well for the fund over the past several
months.
Our largest purchases comprised companies in a broad range of industries from
oil services (Compagnie Generale de Geophysique and Trico Marine) to financials
(UCBH Holdings and American Capital Strategies) to furniture retailing (Haverty
Furniture). The largest purchase was Circle International Group, a
transportation logistics company specializing in freight forwarding and customs
brokerage. We bought Circle in May at about $20 per share following a drop in
the stock caused by the departure of the company's CEO. Our analysis concluded
that Circle's position in its industry and its strong relations with customers
suggested an intrinsic value for the company 30% to 50% higher than the stock
price and more in line with the stock's high of $30 over the previous year. In
this case, our view was confirmed more quickly than usual by an early-July
merger offer from a competitor worth about $30 a share.
THE CYCLE TURNS
In our 1999 year-end report, we described the enormous gap in relative
performance that had occurred between small-cap growth and value stocks over the
previous 16 months. During that period,
2
<PAGE>
small growth stocks (as measured by the Russell 2000 Growth Index) outperformed
small value stocks by a huge 81 percentage points. During January and February
of this year, that trend continued. Then, with the rapid correction in
technology that occurred in March through May, the tables turned, and small
value began to do better (see table below).
-------------------------------
SMALL-CAP STOCKS:
PERFORMANCE OF GROWTH VS. VALUE
-------------------------------
8/31/98 2/29/00
to to
2/29/00 6/30/00
--------------------------------------------------------------------------------
Russell 2000 Growth 137.95% -17.11%
................................................................................
Russell 2000 Value 17.31 2.43
................................................................................
Performance cycles between growth and value are common and have been observed
ever since the Frank Russell Company began providing small-cap indices in 1979.
What was different in the most recent period was the extent of the growth stock
outperformance: 120 percentage points versus the previous high mark of 58
percentage points for the period July 1979 to November 1980. We can identify a
few reasons for growth's good results: 1) Internet stocks exploded on the scene
and had a major impact on growth portfolio results; 2) technology stocks broadly
enjoyed one of their best periods in years; and 3) small-cap value names,
burdened in some cases with debt in a rising interest rate environment, suffered
in comparison to the rapid earnings growth shown by many of their growth peers.
By their nature, cycles eventually reverse. The change in relative results since
February may or may not signal the end of growth's ascendancy for this cycle,
but it certainly gives pause to following an investment strategy that emphasizes
growth and stock price momentum over valuations.
OUTLOOK
This year has so far proven to be a period of volatility and speculative
activity followed by a sobering correction. The Federal Reserve's tightening of
the money supply seems to be working both to slow the economy and to discourage
speculation. In this environment, we are rapidly returning to what feels like
"normal" investment conditions.
3
<PAGE>
Once again, earnings and dividends, high-confidence growth prospects, and
reasonable valuations have become important to investors chastened by the
collapse of the Internet bubble. The kinds of value companies we buy -- steady,
cheap, almost boring in some cases -- are receiving a fresh look. The takeover
activity experienced by some of our stocks tells us they were good values in the
eyes of knowledgeable and sophisticated buyers. Now, for the first time in
several years, the general public is beginning to see the attractiveness of
those same names.
Cash flow into small-cap value funds has recently turned positive after several
quarters of outflows. Our results are similarly favorable. I'm increasingly
bullish on our value sector, even recognizing the continued uncertainties facing
the overall stock market. If past patterns repeat, we may be entering a period
of better relative performance for small-cap value stocks and for your fund.
Respectfully submitted,
/S/ Preston G. Athey
Preston G. Athey
President and Chairman of the Investment Advisory Committee
July 19, 2000
---------------------------
ADVISOR SHARE CLASS CREATED
--------------------------------------------------------------------------------
T. Rowe Price has introduced a new class of shares for certain funds, including
this one. The new Advisor Class shares will be sold exclusively by financial
intermediaries, such as brokers and financial advisers, and will enhance our
ability to reach a new group of investors through this expanding channel. Since
the new share class has a modest 12b-1 fee (a distribution fee paid to the sales
intermediary), its performance will likely vary somewhat from your fund shares
even though both invest in the same portfolio.
We want to emphasize that the new class will have no impact whatsoever on your
investment in the fund or on the returns provided to you by the fund. The daily
net asset value and expenses for the existing shares and the Advisor Class
shares are calculated separately. In due course, you will see the Advisor Class
share prices listed in newspapers and other print and electronic media. Certain
expenses associated with the Advisor Class shares will be itemized in financial
statements in your fund's shareholder reports.
4
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
--------------------
PORTFOLIO HIGHLIGHTS
--------------------------------------------------------------------------------
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
Company 6/30/00
--------------------------------------------------------------------------------
Silicon Valley Bancshares 4.2%
Insituform Technologies 3.5
Brown and Brown 3.4
Cross Timbers Oil 2.4
Analogic 2.2
--------------------------------------------------------------------------------
Saga Communications 2.2
HS Resources 2.2
Electro Rent 2.0
McGrath RentCorp 1.8
Allied Capital 1.8
--------------------------------------------------------------------------------
Bone Care International 1.6
Community First Bankshares 1.4
Littelfuse 1.3
Ruby Tuesday 1.2
Sun Communities 1.2
--------------------------------------------------------------------------------
Pacific Gulf Properties 1.2
Neurocrine Biosciences 1.2
Puerto Rican Cement 1.0
Penn Virginia 1.0
Richardson Electronics 1.0
--------------------------------------------------------------------------------
First Republic Bank 1.0
Chromcraft Revington 1.0
COMARCO 0.9
Markel 0.9
CSS Industries 0.9
--------------------------------------------------------------------------------
Total 42.5%
Note: Table excludes reserves.
5
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
--------------------
PORTFOLIO HIGHLIGHTS
--------------------------------------------------------------------------------
MAJOR PORTFOLIO CHANGES
Listed in descending order of size
6 Months Ended 6/30/00
Ten Largest Purchases Ten Largest Sales
--------------------------------------------------------------------------------
SCP Pool* Silicon Valley Bancshares
Circle International Group* CORT Business Services**
Metro Information MYR Group**
BWAY* Ardent Software**
Companie Generale de Geophysique* OEA**
Trico Marine Services* Cameron Ashley**
UCBH Holdings Landstar Systems
Waste Connections Lone Star Technologies
Texas Regional Bancshares* Coulter Pharmaceutical**
ebix.com London Pacific Group**
* Position added
** Position eliminated
6
<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 benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
[GRAPH]
[PLOT POINTS TO COME]
------------------------------------
AVERAGE ANNUAL COMPOUND TOTAL RETURN
--------------------------------------------------------------------------------
This table shows how the fund would have performed each year if its actual (or
cumulative) returns for the periods shown had been earned at a constant rate.
Periods Ended 6/30/00 1 Year 3 Years 5 Years 10 Years
--------------------------------------------------------------------------------
Small-Cap Value Fund 6.25% 3.73% 11.46% 12.85%
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
7
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Unaudited
--------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
Small-Cap Value shares
<TABLE>
<CAPTION>
6 Months Year
Ended Ended
6/30/00 12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 17.62 $ 18.97 $ 23.40 $ 19.56 $ 16.53 $ 13.40
Investment activities
Net investment
income (loss) 0.09 0.17 0.25 0.21 0.22 0.18
Net realized and
unrealized gain (loss) 1.60 -- (3.23) 5.22 3.84 3.74
Total from
investment activities 1.69 0.17 (2.98) 5.43 4.06 3.92
Distributions
Net investment income -- (0.17) (0.25) (0.20) (0.23) (0.18)
Net realized gain -- (1.35) (1.20) (1.39) (0.80) (0.61)
Total distributions -- (1.52) (1.45) (1.59) (1.03) (0.79)
NET ASSET VALUE
End of period $ 19.31 $ 17.62 $ 18.97 $ 23.40 $ 19.56 $ 16.53
===============================================================================
Ratios/Supplemental Data
Total return* 9.59% 1.19% (12.47)% 27.92% 24.61% 29.29%
Ratio of total expenses to
average net assets 0.92%+ 0.92% 0.87% 0.87% 0.94% 0.98%
Ratio of net investment
income (loss) to average
net assets 0.91%+ 0.84% 1.02% 1.01% 1.28% 1.59%
Portfolio turnover rate 5.4%+ 7.3% 17.3% 14.6% 15.2% 18.1%
Net assets, end of period
(in millions) $ 1,206 $ 1,262 $ 1,632 $ 2,088 $ 1,410 $ 936
</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 and payment of no redemption or account fees.
+ Annualized
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
-------------------------------------------------------------------------------
Unaudited
--------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
-------------------------------------------------------------------------------
Small-Cap Value Advisor Class shares
3/31/00
Through
6/30/00
NET ASSET VALUE
Beginning of period $ 18.23
----------
Investment activities
Net investment income (loss) 0.03
Net realized and
unrealized gain (loss) 1.05
----------
Total from
investment activities 1.08
----------
NET ASSET VALUE
End of period $ 19.31
==========
Ratios/Supplemental Data
Total return * 5.92%
Ratio of total expenses to
average net assets 0.78%+
Ratio of net investment
income (loss) to average
net assets 3.46%+
Portfolio turnover rate 5.4%+
Net assets, end of period
(in thousands) $ 88
==========
* 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 and payment of no redemption or account fees.
+ Annualized
The accompanying notes are an integral part of these financial statements.
9
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Unaudited June 30, 2000
------------------------
PORTFOLIO OF INVESTMENTS Shares/Par Value
--------------------------------------------------------------------------------
In thousands
COMMON STOCKS 93.7%
FINANCIAL 16.3%
Bank and Trust 7.6%
Community First Bankshares 1,000,000 $ 16,344
First International Bancorp 350,000 2,838
First Republic Bank of San Francisco * + 600,000 11,963
Glacier Bancorp 286,165 3,747
Silicon Valley Bancshares * 1,197,700 51,089
Texas Regional Bancshares 50,000 1,281
UCBH Holdings 150,000 3,999
-------------
91,261
-------------
Insurance 6.2%
Brown and Brown + 800,000 41,600
Hilb, Rogal and Hamilton 30,300 1,051
Markel * 80,000 11,330
Medical Assurance 913,500 10,277
NYMAGIC 200,000 2,850
Presidential Life 150,000 2,077
Triad Guaranty * 275,000 6,299
-------------
75,484
-------------
Financial Services 2.5%
Allied Capital 1,247,000 21,238
American Capital Strategies 325,000 7,373
Delta Financial * 428,600 697
Medallion Financial 70,000 1,078
-------------
30,386
-------------
Total Financial 197,131
-------------
UTILITIES 4.0%
Telephone 0.6%
Rural Cellular (Class A) * 86,800 6,648
-------------
6,648
-------------
Electric Utilities 3.4%
Black Hills 375,000 8,461
Cleco 275,000 9,213
Northwestern Public Service 300,000 6,938
10
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Otter Tail Power 500,000 $ 10,453
Vectren 366,575 6,323
-------------
41,388
-------------
Total Utilities 48,036
-------------
CONSUMER NONDURABLES 10.3%
Beverages 0.2%
Chalone Wine Group * 250,000 1,992
-------------
1,992
-------------
Food Processing 0.5%
Natrol * 400,000 1,350
Sylvan * + 520,000 4,778
-------------
6,128
-------------
Hospital Supplies/Hospital Management 2.5%
Allied Healthcare Products * 198,000 637
Atrion * + 200,000 2,475
Intelligent Medical Imaging * 275,000 10
IRIDEX * 275,000 3,438
Landauer + 522,900 8,138
Minntech + 650,000 4,316
Owens & Minor 550,000 9,453
Sterile Recoveries * 250,000 1,969
-------------
30,436
-------------
Pharmaceuticals 2.6%
Bone Care International * + 825,000 19,465
NPS Pharmaceuticals * 300,000 8,062
Quidel * 700,000 3,686
-------------
31,213
-------------
Biotechnology 1.2%
Neurocrine Biosciences * 400,000 14,163
-------------
14,163
-------------
Miscellaneous Consumer Products 3.3%
Applied Extrusion Technologies * + 750,000 4,090
BWAY * + 775,000 5,134
CSS Industries * + 550,000 11,241
Culp + 600,000 3,075
Dan River * 400,000 1,900
11
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Home Products International * 320,600 $ 1,232
Liqui-Box 139,200 6,690
Martin Industries 400,000 588
Ocular Sciences * 125,000 1,465
Superior Uniform Group 50,000 434
Velcro Industries 358,000 4,050
-------------
39,899
-------------
Total Consumer Nondurables 123,831
-------------
CONSUMER SERVICES 10.1%
Restaurants 4.0%
Consolidated Products 979,000 8,811
Fresh Choice * + 549,500 1,666
Garden Fresh Restaurant * + 400,000 4,200
PJ America * 160,000 1,580
Rare Hospitality International * 377,200 10,715
Ruby Tuesday 1,200,000 15,075
Taco Cabana * 200,000 1,287
Uno Restaurant 500,000 5,344
-------------
48,678
-------------
General Merchandisers 0.2%
Bon-Ton Stores * 325,000 741
Fred's (Class A) 128,100 2,326
-------------
3,067
-------------
Specialty Merchandisers 2.7%
Building Materials * 450,000 3,966
Compucom Systems * 400,000 669
Goody's Family Clothing * 300,000 1,626
Hancock Fabrics + 1,500,000 6,375
Haverty Furniture 550,000 4,675
Jo Ann Stores * 25,000 176
Jo Ann Stores (Class B) * 625,000 4,766
S & K Famous Brands * + 400,000 2,869
Stein Mart * 700,000 7,065
-------------
32,187
-------------
Entertainment and Leisure 0.3%
Photoworks * + 1,169,200 3,544
-------------
3,544
-------------
12
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Media and Communications 2.9%
Big City Radio (Class A) * 200,000 $ 1,013
Courier + 234,000 6,640
Saga Communications (Class A) * 1,225,000 26,950
-------------
34,603
-------------
Total Consumer Services 122,079
-------------
CONSUMER CYCLICALS 11.3%
Automobiles and Related 3.0%
Keystone Automotive * 250,000 1,742
Littelfuse * 325,000 16,067
Myers Industries 150,000 1,612
R & B * 400,000 1,063
Strattec Security * + 275,000 9,075
TBC * + 1,400,000 6,431
-------------
35,990
-------------
Building and Real Estate 6.1%
Capital Senior Living * 250,000 734
First Washington Realty Trust, REIT 400,000 8,825
Glenborough Realty Trust, REIT 550,000 9,591
Innkeepers USA, REIT 850,000 7,756
Kilroy Realty, REIT 100,000 2,594
National Health Realty, REIT + 550,000 4,434
Pacific Gulf Properties, REIT 600,000 15,038
Skyline, REIT + 435,000 9,353
Sun Communities, REIT 450,000 15,047
Western Water * + 664,500 311
-------------
73,683
-------------
Miscellaneous Consumer Durables 2.2%
Chromcraft Revington * + 1,000,000 11,625
CompX 250,000 5,078
Juno Lighting * + 221,800 1,317
Stanley Furniture * + 402,200 8,798
-------------
26,818
-------------
Total Consumer Cyclicals 136,491
-------------
13
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
TECHNOLOGY 6.3%
Electronic Components 2.9%
Analogic + 680,600 $ 26,990
Badger Meter 105,000 2,651
PCD * 356,700 2,770
Planar Systems * 200,000 2,563
34,974
Electronic Systems 0.5%
EDO 200,000 1,262
FLIR Systems * 325,000 2,092
Perceptron * + 650,000 2,245
5,599
Specialized Computer 0.3%
ebix.com * + 700,000 3,587
3,587
Telecommunications 0.3%
Syntellect * + 672,500 4,298
4,298
Aerospace and Defense 2.3%
COMARCO * + 350,000 11,331
DONCASTERS ADR * 100,000 1,087
Raven Industries + 350,000 4,966
TransTechnology 299,000 3,289
Woodward Governor 250,000 6,977
27,650
Total Technology 76,108
CAPITAL EQUIPMENT 2.4%
Electrical Equipment 1.5%
Franklin Electric 100,000 6,750
LSI Industries 400,000 6,075
Thomas Industries 325,000 5,748
18,573
Machinery 0.9%
Alamo Group + 550,000 6,875
K-Tron * + 256,323 4,029
10,904
Total Capital Equipment 29,477
14
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
BUSINESS SERVICES AND
TRANSPORTATION 17.4%
Computer Service and Software 1.4%
Analysts International 620,000 $ 5,735
Metro Information Services * 306,600 3,042
SPSS * 300,400 8,730
17,507
Distribution Services 1.3%
Richardson Electronics + 550,000 8,817
SCP Pool * 112,500 2,629
Sunsource * 300,000 1,519
Valley National Gases * + 682,200 3,326
16,291
Environmental 1.7%
BHA Group (Class A) + 605,000 5,937
IT Group * 900,000 4,387
TETRA Technologies * 330,000 4,682
Waste Connections * 125,000 2,465
Waterlink * + 1,166,350 2,916
20,387
Transportation Services 2.2%
Circle International Group 100,000 2,509
Frozen Food Express 300,800 888
Hub Group (Class A) * 175,000 2,620
International Shipholding + 664,000 5,810
Landstar Systems * 150,000 8,935
M.S. Carriers * 110,000 1,942
Transport Corp. of America * + 540,000 3,628
26,332
Miscellaneous Business Services 10.3%
Aaron Rents (Class A) 34,100 533
Aaron Rents (Class B) 821,400 10,319
Business Resource Group * + 450,000 2,826
Children's Comprehensive Services * 200,000 619
Electro Rent * + 2,000,000 23,750
Insituform Technologies (Class A) * + 1,550,000 42,383
Ivex Packaging * 400,000 4,450
McGrath RentCorp + 1,298,000 21,660
15
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Packaged Ice * 550,000 $ 2,269
Rainbow Rentals * + 359,800 4,115
Right Management Consultants * + 500,000 5,344
StaffMark * 225,000 1,501
Tab Products + 325,000 1,300
Trico Marine Services * 175,000 2,237
UniFirst 50,000 394
123,700
Airlines 0.5%
Midwest Express Holdings * 275,025 5,913
5,913
Total Business Services and Transportation 210,130
ENERGY 4.9%
Energy Services 1.4%
Carbo Ceramics 150,000 5,269
Compagnie Generale Des Geophysique * 144,100 1,963
Newpark Resources * 350,000 3,303
Pitt-DesMoines 300,000 5,700
16,235
Exploration and Production 3.5%
Brigham Exploration * 550,000 1,427
Chieftain International * 325,000 6,195
Cross Timbers Oil 300,000 6,637
Forest Oil * 50,000 797
HS Resources * 875,000 26,250
Key Energy * 100,000 963
42,269
Total Energy 58,504
PROCESS INDUSTRIES 4.9%
Diversified Chemicals 1.2%
Aceto + 575,000 6,343
Arch Chemicals 359,250 7,859
14,202
Specialty Chemicals 1.2%
Eco Soil Systems * 270,000 498
16
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
Hauser * 150,000 $ 253
Synalloy + 445,000 3,059
Tuscarora + 730,000 11,178
14,988
Paper and Paper Products 0.8%
Republic Group 451,400 4,063
Wausau-Mosinee Paper 600,000 5,137
9,200
Building and Construction 1.7%
CorrPro * 300,000 975
Layne Christensen * + 600,000 2,775
Puerto Rican Cement + 446,000 12,404
U.S. Aggregates 260,000 4,713
20,867
Total Process Industries 59,257
BASIC MATERIALS 4.6%
Metals 2.2%
Cold Metal Products + 400,000 1,350
Gibraltar Steel 448,800 6,409
Lone Star Technologies * 200,000 9,250
Material Sciences * 620,000 6,200
Shiloh Industries * 290,000 2,819
26,028
Mining 0.2%
Gold Fields Limited (AUD) 105,000 86
Gold Fields Limited (ZAR) 749,922 2,940
3,026
Miscellaneous Materials 2.2%
Ameron International + 225,000 8,044
Oil-Dri + 500,000 4,500
Penn Engineering & Manufacturing (Class A) 60,000 1,935
Penn Virginia + 500,000 12,312
26,791
Total Basic Materials 55,845
17
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Shares/Par Value
--------------------------------------------------------------------------------
In thousands
INVESTMENT COMPANIES 0.4%
Investment Companies 0.4%
First Financial Fund 550,000 $ 4,503
Total Investment Companies 4,503
MISCELLANEOUS 0.8%
Integrated Water Technology * + 200,000 234
Other Miscellaneous Common Stocks 9,299
Total Miscellaneous 9,533
Total Common Stocks (Cost $945,495) 1,130,925
PREFERRED STOCKS 0.2%
Prime Retail (Series A) Cum. 10.50% 260,100 2,520
Total Preferred Stocks (Cost $4,536) 2,520
CONVERTIBLE PREFERRED STOCKS 2.3%
Chieftain Intl., $1.8125 40,000 1,045
Cross Timbers Oil (Series A) 480,390 22,578
IT Group, 7.00% 165,000 2,728
OHM 29,000 24
Prime Retail (Series B) 8.50% 200,000 1,400
Western Water (Series C) * + 2,259 64
Total Convertible Preferred Stocks (Cost $20,768) 27,839
CORPORATE BONDS 0.3%
BWAY, Sr. Sub. Notes, 10.25%, 4/15/07 + $ 2,000,000 1,900
Delta Financial, 9.50%, 8/1/04 3,000,000 1,350
Total Corporate Bonds (Cost $4,789) 3,250
18
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Value
--------------------------------------------------------------------------------
In thousands
CONVERTIBLE BONDS 0.5%
Builders Transport, 6.50%, 5/1/11 * $ 1,158,000 $ 0
Builders Transport, 8.00%, 8/15/05 * 1,700,000 0
Glycomed, 7.50%, 1/1/03 1,000,000 859
Offshore Logistics, (144a), 6.00%, 12/15/03 2,000,000 1,842
Richardson Electronics, 7.25%, 12/15/06 + 3,516,000 3,322
Total Convertible Bonds (Cost $7,603) 6,023
SHORT-TERM INVESTMENTS 3.1%
Money Market Funds 3.1%
Reserve Investment Fund, 6.68% # 37,547,416 37,547
Total Short-Term Investments (Cost $37,547) 37,547
Total Investments in Securities
100.1% of Net Assets (Cost $1,020,738) $ 1,208,104
Other Assets Less Liabilities (1,655)
NET ASSETS $ 1,206,449
# Seven-day yield
+ Affiliated company
* Non-income producing
ADR American depository receipt
REIT Real Estate Investment Trust
AUD Australian dollar
ZAR South African rand
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Unaudited June 30, 2000
-----------------------------------
STATEMENT OF ASSETS AND LIABILITIES
--------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value
Affiliated companies (cost $395,166) $ 454,631
Other companies (cost $625,572) 753,473
------------
Total investments in securities 1,208,104
Other assets 4,914
------------
Total assets 1,213,018
------------
Liabilities
Total liabilities 6,569
------------
NET ASSETS $ 1,206,449
============
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 5,850
Accumulated net realized gain/loss - net of distributions 94,066
Net unrealized gain (loss) 187,366
Paid-in-capital applicable to 62,483,675 shares of
$0.01 par value capital stock outstanding;
1,000,000,000 shares authorized 919,167
------------
NET ASSETS $ 1,206,449
============
NET ASSET VALUE PER SHARE
Small-Cap Value shares
($1,206,361,033/62,479,116 shares outstanding) $ 19.31
============
Small-Cap Value Advisor Class shares
($88,013/4,559 shares outstanding) $ 19.31
============
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Unaudited
-----------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
6 Months
Ended
6/30/00
Investment Income (Loss)
Income
Dividend (including $3,033 from affiliated companies) $ 8,963
Interest 1,906
------------
Total income 10,869
------------
Expenses
Investment management 3,982
Shareholder servicing
Small-Cap Value shares 1,309
Small-Cap Value Advisor Class shares -
Custody and accounting 73
Prospectus and shareholder reports
Small-Cap Value shares 55
Small-Cap Value Advisor Class shares -
Registration 23
Legal and audit 14
Directors 5
Miscellaneous 5
------------
Total expenses 5,466
Expenses paid indirectly (4)
------------
Net expenses 5,462
------------
Net investment income (loss) 5,407
------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 50,689
Futures 851
------------
Net realized gain (loss) 51,540
------------
Change in net unrealized gain or loss on securities
(including $21,721 from affiliated companies) 51,977
------------
Net realized and unrealized gain (loss) 103,517
------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 108,924
============
The accompanying notes are an integral part of these financial statements.
21
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Unaudited
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
In thousands
6 Months Year
Ended Ended
6/30/00 12/31/99
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 5,407 $ 11,529
Net realized gain (loss) 51,540 119,186
Change in net unrealized gain or loss 51,977 (131,399)
-------------------------
Increase (decrease) in net assets from operations 108,924 (684)
-------------------------
Distributions to shareholders
Net investment income
Small-Cap Value shares - (11,457)
Net realized gain
Small-Cap Value shares - (90,988)
-------------------------
Decrease in net assets from distributions - (102,445)
-------------------------
Capital share transactions *
Shares sold
Small-Cap Value shares 138,115 320,585
Small-Cap Value Advisor Class shares 86 -
-------------------------
Increase in net assets from shares sold 138,201 320,585
Distributions reinvested
Small-Cap Value shares - 96,507
Shares redeemed
Small-Cap Value shares (302,984) (683,860)
Redemption fees received
Small-Cap Value shares 76 189
-------------------------
Increase (decrease) in net assets from
capital share transactions (164,707) (266,579)
Net Assets
Increase (decrease) during period (55,783) (369,708)
Beginning of period 1,262,232 1,631,940
-------------------------
End of period $1,206,449 $ 1,262,232
=========================
*Share information
Shares sold
Small-Cap Value shares 7,589 17,358
Small-Cap Value Advisor Class shares 5 -
Distributions reinvested
Small-Cap Value shares - 5,677
Shares redeemed
Small-Cap Value shares (16,731) (37,430)
-------------------------
Increase (decrease) in shares outstanding (9,137) (14,395)
The accompanying notes are an integral part of these financial statements.
22
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
Unaudited June 30, 2000
-----------------------------
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. The fund has two classes of shares - Small-Cap Value, offered since
June 30, 1988, and Small-Cap Value Advisor Class, first offered on March 31,
2000. Small-Cap Value Advisor Class sells its shares only through financial
intermediaries, which it compensates for distribution and certain administrative
services under a Board-approved Rule 12b-1 plan. Each class has exclusive voting
rights on matters related solely to that class, separate voting rights on
matters that relate to both classes, and, in all other respects, the same rights
and obligations as the other class. The fund seeks long-term capital growth by
investing primarily in small companies whose common stocks are believed to be
undervalued.
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 Equity securities listed or regularly traded on a securities exchange
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. Other equity securities are valued at a price within the limits of
the latest bid and asked prices deemed by the Board of Directors, or by persons
delegated by the Board, best to reflect fair value.
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.
Investments in mutual funds are valued at the closing net asset value per share
of the mutual fund on the day of valuation.
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.
23
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
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 As defined by the Investment Company Act of 1940, an
affiliated company is one in which the fund owns at least 5% of the outstanding
voting securities.
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.
Premiums and Discounts Premiums and discounts on debt securities are amortized
for both financial reporting and tax purposes.
Class Accounting The Small-Cap Value Advisor Class pays distribution and
administrative expenses, in the form of Rule 12b-1 fees, in an amount not
exceeding 0.25% of the class's average net assets. Shareholder servicing,
prospectus, and shareholder report expenses are charged directly to the class to
which they relate. Expenses common to both classes, investment income, and
realized and unrealized gains and losses are allocated to the classes based upon
the relative daily net assets of each class. For non-daily dividend funds Income
distributions are declared and paid by each class on an annual basis. Capital
gain distributions are declared and paid 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. 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. Expenses paid indirectly reflect credits earned
on daily uninvested cash balances at the custodian and are used to reduce the
fund's custody charges.
24
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $31,486,000 and $160,444,000, respectively, for the six months ended
June 30, 2000.
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, 2000, the cost of investments for federal income tax purposes was
substantially the same as for financial reporting and totaled $1,020,738,000.
Net unrealized gain aggregated $187,366,000 at period-end, of which $398,018,000
related to appreciated investments and $210,652,000 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 $652,000 was payable at June 30, 2000. 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 0.295% for assets in excess of $120 billion. At
June 30, 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.
The manager has agreed to bear any expenses through December 31, 2001, which
would cause Small-Cap Value Advisor Class's ratio of total expenses to average
net assets to exceed 1.15%. Thereafter, through December 31, 2003, Small-Cap
Value Advisor Class is required to reimburse the manager for these expenses,
provided that its average net assets have grown or expenses have declined
sufficiently to allow reimbursement without causing its ratio of total expenses
to average net assets to exceed 1.15%.
25
<PAGE>
T. ROWE PRICE SMALL-CAP VALUE FUND
--------------------------------------------------------------------------------
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 $1,153,000 for the six months
ended June 30, 2000, of which $225,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the six months ended June 30, 2000, totaled
$1,327,000 and are reflected as interest income in the accompanying Statement of
Operations.
26
<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.
27
<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 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Tax-Efficient Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery*
International Growth & Income
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 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 Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond*
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global 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 Balanced
Personal Strategy Growth
Personal Strategy Income
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.
+ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
the funds.
Please call for a prospectus, which contains complete information, including
fees and expenses. Read it carefully before investing.
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.
28
<PAGE>
T. ROWE PRICE ADVISORY SERVICES AND RETIREMENT RESOURCES
--------------------------------------------------------------------------------
ADVISORY SERVICES, RETIREMENT RESOURCES
T. Rowe Price is your full-service retirement specialist. We have developed
unique advisory services that can help you meet the most difficult retirement
challenges. Our broad array of retirement plans is suitable for individuals, the
self-employed, small businesses, corporations, and nonprofit organizations. We
also provide recordkeeping, communications, and investment management services,
and our educational materials, self-help planning guides, and software tools are
recognized as among the industry's best. For information or to request
literature, call us at 1-800-638-5660, or visit our Web site at
www.troweprice.com.
ADVISORY SERVICES
T. Rowe Price Retirement Income ManagerSM helps retirees or those within two
years of retirement determine how much income they can take in retirement. The
program uses extensive statistical analysis and the input of financial planning
professionals to suggest an income plan that best meets your objectives.
T. Rowe Price Rollover Investment Service offers asset allocation advice to
those planning a major change in their qualified retirement plans, such as a
401(k) rollover from a previous employer or an IRA transfer.
RETIREMENT RESOURCES AT T. ROWE PRICE
--------------------------------------------------------------------------------
Traditional, Roth, and Rollover IRAs
SEP-IRA and SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase
Pension and Profit Sharing Plans)
401(k) and 403(b)
457 Deferred Compensation
Planning and Informational Guides
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
Insights Reports
The Challenge of Preparing for Retirement
Financial Planning After Retirement
The Roth IRA: A Review
Software Packages
T. Rowe Price Retirement Planning Analyzer(TM) CD-ROM or diskette $19.95. To
order, please call 1-800-541-5760. Also available on the Internet for $9.95.
T. Rowe Price Variable Annuity Analyzer(TM) CD-ROM or diskette, free. To order,
please call 1-800-469-5304.
T. Rowe Price Immediate Variable Annuity (Income Account)
Investment Kits
We will be happy to send you one of our easy-to-follow investment kits when you
are ready to invest in any T. Rowe Price retirement vehicle, including IRAs,
qualified plans, small-business plans, or our no-load variable
annuities.
29
<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
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
Walk-In Investor Centers:
For directions, call 1-800-225-5132
or visit our Web site.
Baltimore Area
Downtown
101 East Lombard Street
Owings Mills
Three Financial Center
4515 Painters Mill Road
Boston Area
386 Washington Street
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
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.
[LOGO OF T. ROWE PRICE]
T. Rowe Price Investment Services, Inc., Distributor. F46-051 6/30/00
