<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price
- --------------------------------------------------------------------------------
SemiAnnual Report
U.S. Treasury Funds
- --------------------------------------------------------------------------------
November 30, 1996
- --------------------------------------------------------------------------------
Report Highlights
================================================================================
* The bond market rebounded over the last six months as the economy slowed
and inflation fears subsided.
* The U.S. Treasury Money Fund performed essentially in line with its peers,
returning 2.32% and 4.81% for the 6- and 12-month periods ended November
30, respectively.
* The U.S. Treasury Intermediate Fund gained a solid 5.92% over the last six
months, but only 4.34% for the 12 months ended November 30, slightly
trailing its peer group in both periods.
* The U.S. Treasury Long-Term Fund posted an excellent return of 10.64% over
the last half year, bolstered by its aggressive maturity posture. However,
the same aggressive stance limited its 12-month return to only 2.96% due to
rising interest rates earlier in 1996.
* Economic growth and inflation should remain moderate in coming months. We
expect the 30-year Treasury bond to yield between 6% and 7%.
- --------------------------------------------------------------------------------
Fellow Shareholders
================================================================================
After a dismal start to 1996, the bond market rebounded over the last six months
as the economy slowed and inflation fears subsided, allowing interest rates to
settle into a narrow range. The U.S. Treasury Intermediate and Long-Term Funds
posted robust gains for this period, but lower returns for the full year ending
November 30. The Money Fund performed well in both periods.
- --------------------------------------------------------------------------------
MARKET ENVIRONMENT
================================================================================
Although interest rates ended at roughly the same levels as a year ago, there
was a lot of action in between. On November 30, the yield on the bellwether
30-year Treasury bond was less than one-half percentage point higher than a year
ago. However, as the chart below attests, interest rates were on a roller
coaster all year, rising sharply in early 1996 before leveling off and then
declining over the last six months. Bond prices, which move in the opposite
direction of rates, fell and then rose. However, since most bonds did not recoup
all their losses, prices finished little changed over the year, and bond returns
came from income.
<PAGE>
[ A 3-line chart showing interest rate levels on the 30-year Treasury bond,
5-year Treasury note, and 90-day Treasury bill from 11/30/95 through 11/30/96.]
The bond market quickly turned bleak early in 1996 after balanced budget talks
collapsed and economic growth rose to worrisome levels. The economy grew at a
robust 4.7% annualized rate in the second calendar quarter, leading the bond
market to assume that the Federal Reserve would raise short-term interest rates
to corral growth. However, the widely anticipated tightening never came to pass,
as economic growth slowed to about 2% in the third quarter and inflation
remained largely under control. As shown in the chart, after rising to 7% as
recently as August, the 30-year Treasury yield dropped back to 6.4% by the end
of November. The Fed left its key policy instrument, the federal funds target,
unchanged at 5.25%, where it has been since January.
The responsiveness of the bond market to the economic climate, as evidenced by
the shifts in interest rates over the last year, helped the Fed keep the economy
on a moderate growth track. The 30-year Treasury yield has generally fluctuated
between 6% and 7% since the spring of 1995. Until the economy or inflation veers
significantly off its current course, the long bond should remain within this
range.
- --------------------------------------------------------------------------------
PERFORMANCE AND STRATEGY REVIEW
================================================================================
- --------------------------------------------------------------------------------
U.S. TREASURY MONEY FUND
================================================================================
Despite the uncertainty over monetary policy, your fund's yield was relatively
steady over the last six months, ending at 4.79% (as shown in the table
following this letter). The fund's return was essentially in line with the
average U.S. Treasury money fund as measured by Lipper Analytical Services. For
the 12 months ended November 30, the fund produced favorable absolute and
relative performance, as shown in the chart.
- --------------------------------------------------------------------------------
Performance Comparison
================================================================================
Periods Ended 11/30/96 6 Months 12 Months
- --------------------------------------------------------------------------------
U.S. Treasury Money Fund 2.32% 4.81%
Lipper U.S. Treasury
Money Market Funds Average 2.33 4.76
- --------------------------------------------------------------------------------
<PAGE>
The apparent stability of your fund's average maturity, declining by only one
day between May and November, masks the wide range it covered. When economic
growth appeared strong and rates rose earlier in the period, we bought
shorter-maturity issues that could be quickly rolled over into higher-yielding
securities. Conversely, when the economy weakened and rates fell back in recent
months, we purchased instruments with longer maturities to enhance yield and
delay the rollover of assets into lower-yielding securities. As a result of this
strategy, average maturity ranged between a low of 46 days and a high of 69 days
over the last six months. We ended the period near the upper end of that range,
in line with our competitor funds, given our belief that the Fed would not raise
short-term rates in the near future.
- --------------------------------------------------------------------------------
U.S. TREASURY INTERMEDIATE FUND
================================================================================
Your fund produced a solid gain over the last six months, rebounding from losses
suffered earlier in 1996. However, results for the 12 months ended November 30
were modest due to the prior losses. The fund slightly underperformed its peer
group average in both periods.
- --------------------------------------------------------------------------------
Performance Comparison
================================================================================
Periods Ended 11/30/96 6 Months 12 Months
- --------------------------------------------------------------------------------
U.S. Treasury Intermediate Fund 5.92% 4.34%
Lipper Average of Intermediate
U.S. Treasury Funds 6.31 4.43
- --------------------------------------------------------------------------------
As intermediate rates fell in recent months, we raised the fund's effective
duration to 3.9 years from 3.7 years last May, basically in line with our
competitor funds. (Duration is a measure of a fund's price sensitivity to
interest rate changes. For example, a fund with a duration of five years would
rise or fall about 5% in price for each one percentage point move in interest
rates.) A longer duration enhances the fund's price appreciation when interest
rates fall.
We trimmed our position in GNMAs to around 14% of net assets as mortgage
securities lagged behind Treasuries over the last six months. However, GNMAs
outperformed Treasuries for the full year ended November 30 due to their higher
level of income, benefiting fund performance. They should continue to play an
integral role in bolstering your fund's total return.
<PAGE>
- --------------------------------------------------------------------------------
U.S. TREASURY LONG-TERM FUND
================================================================================
Despite the volatility in long-term rates over the last six months, we
maintained the average maturity of the fund at the upper limit of its usual
range, ending at 24 years on November 30 versus 23.4 years in May. This
aggressive posture served the fund well as rates fell in recent months, leading
to excellent results over the last half year, well ahead of our peer group
average. However, as rates rose earlier in 1996, this positioning hindered
absolute and relative performance for the 12-month period.
- --------------------------------------------------------------------------------
Performance Comparison
================================================================================
Periods Ended 11/30/96 6 Months 12 Months
- --------------------------------------------------------------------------------
U.S. Treasury Long-Term Fund 10.64% 2.96%
Lipper Average of General
U.S. Treasury Funds 8.27 4.30
- --------------------------------------------------------------------------------
Our decision to maintain an aggressive stance is motivated by our belief that
the 30-year Treasury yield may be in a range of around 6% to 7% for some time.
While the fund could be hurt by rising interest rates in the short run, over the
long term it should produce good returns due to its higher level of income and
greater potential for price appreciation when rates drop. Any further slowing in
the economy could move the 30-year Treasury yield down by year-end. We increased
fund exposure to GNMA securities nearly to the 15% limit allowed by the fund's
investment program. As mentioned, we expect GNMAs to perform well, and their
higher levels of income compared with Treasuries should further enhance
performance.
- --------------------------------------------------------------------------------
OUTLOOK
================================================================================
The economy has settled into a moderate growth pattern, all but eliminating
concerns of a Fed tightening in the near term. Since growth in the fourth
calendar quarter will be pivotal in determining the direction of monetary
policy, the Fed has apparently adopted a wait-and-see approach.
The bond market rallied in the wake of the presidential election, seemingly
heartened by the political balance between the Clinton White House and the
Republican-controlled Congress. Indeed, as the century draws to a close, hopes
run high for meaningful progress toward a balanced budget, which apparently
enjoys bipartisan support in Washington. Of course, it remains to be seen
whether it will actually come to pass.
<PAGE>
In coming months, as the current economic expansion approaches its sixth
anniversary, bonds should at least earn their coupons as long as growth remains
moderate and inflation stays in check.
Respectfully submitted,
[signature]
Peter Van Dyke
President
December 20, 1996
- --------------------------------------------------------------------------------
Portfolio Highlights
================================================================================
Key statistics
5/31/96 11/30/96
------- --------
U.S. Treasury Money Fund
- -----------------------------
Price Per Share $ 1.00 $ 1.00
Dividends Per Share
For 6 months 0.024 0.023
For 12 months 0.050 0.047
Dividend Yield (7-Day Compound) * 4.68% 4.79%
Weighted Average Maturity (days) 66 65
Weighted Average Quality ** First Tier First Tier
<PAGE>
U.S. Treasury Intermediate Fund
- ------------------------------------
Price Per Share $ 5.11 $ 5.25
Dividends Per Share
For 6 months 0.16 0.16
For 12 months 0.33 0.32
Dividend Yield *
For 6 months 6.16% 6.23%
For 12 months 6.30 6.29
Weighted Average Maturity (years) 4.8 4.9
Weighted Average Effective Duration (years) 3.7 3.9
Weighted Average Quality *** AAA AAA
U.S. Treasury Long-Term Fund
- -----------------------------------
Price Per Share $ 10.02 $ 10.75
Dividends Per Share
For 6 months 0.32 0.32
For 12 months 0.65 0.64
Dividend Yield *
For 6 months 6.05% 6.29%
For 12 months 6.20 6.26
Weighted Average Maturity (years) 23.4 24.0
Weighted Average Effective Duration (years) 10.2 11.1
Weighted Average Quality *** AAA AAA
- --------------------------------------------------------------------------------
* Dividends earned and reinvested for the periods indicated are annualized
and divided by the average daily net asset values per share for the same
period.
** All securities purchased in the money fund are rated in the two highest
categories (tiers) as established by national rating agencies or, if
unrated, are deemed of comparable quality by T. Rowe Price.
*** Based on T. Rowe Price research.
Note:Investments in the U.S. Treasury Funds are neither insured nor
guaranteed by the U.S. government.
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price U.S. Treasury Funds
================================================================================
These charts show the value of a hypothetical $10,000 investment in each 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.
[SEC Graph for U.S. Treasury Money Fund shown here. Periods 11\86 thru 11\96.
U.S. Treasury Money Fund $16,636 and Lipper U.S. Treasury Money Market Funds
Average $16,807]
[SEC Graph for U.S. Treasury Intermediate Fund shown here. Periods 9\29\89 thru
11\96. U.S. Treasury Intermediate Fund $17,331 and Salomon 1-7 year Treasury
Index $17,460]
[SEC Graph for U.S. Tresury Long-Term Fund shown here. Periods 9\29\89 thru
11\96. U.S. Treasury Long-Term Fund $18,733 and Salomon Treasury Index $18,288
- --------------------------------------------------------------------------------
AVERAGE ANNUAL COMPOUND TOTAL RETURN
================================================================================
This table shows how the funds would have performed each year if their actual
(or cumulative) returns for the periods shown had been earned at a constant
rate.
Since Inception
Periods Ended 11/30/96 1 Year 5 Years 10 Years Inception Date
- --------------------------------------------------------------------------------
U.S. Treasury Money Fund 4.81% 3.84% 5.22% 6.05% 6/28/82
U.S. Treasury Intermediate Fund 4.34 6.69 - 7.97 9/29/89
U.S. Treasury Long-Term Fund 2.96 8.77 - 9.15 9/29/89
Investment return represents past performance and will vary. Shares of
the bond funds may be worth more or less at redemption than at original
purchase. The Money Fund's $1.00 share price is not guaranteed.
- --------------------------------------------------------------------------------
<PAGE>
Financial Highlights
================================================================================
Unaudited
<TABLE>
T. Rowe Price U.S. Treasury Money Fund
--------------------------------------
For a share outstanding throughout each period
<S> <C> <C> <C> <C> <C> <C> <C>
6 Months Year 3 Months++ Year
Ended Ended Ended Ended
11/30/96 5/31/96 5/31/95 5/31/94 2/28/94 2/28/93 2/29/92
-------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE
Beginning of period .... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Investment activities
Net investment income .. 0.023 0.050 0.045 0.007 0.025 0.029 0.049
Distributions
Net investment income .. (0.023) (0.050) (0.045) (0.007) (0.025) (0.029) (0.049)
NET ASSET VALUE
End of period .......... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Ratios/Supplemental Data
Total return ........... 2.32% 5.08% 4.58% 0.73% 2.51% 2.97% 5.06%
Ratio of expenses to
average net assets ..... 0.59%+ 0.53% 0.56% 0.57%+ 0.64% 0.65% 0.68%
Ratio of net investment
income to average
net assets 4.61%+ 4.93% 4.51% 2.87%+ 2.48% 2.92% 4.93%
Net assets, end of period
(in thousands) $ 802,890 $ 760,010 $ 719,215 $ 654,837 $ 613,583 $ 606,153 $ 562,664
- --------------------------------------------------------------------------------
+ Annualized.
++ The fund's fiscal year-end was changed to May 31.
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
================================================================================
Unaudited
<TABLE>
T. Rowe Price U.S. Treasury Intermediate Fund
---------------------------------------------
For a share outstanding throughout each period
<S> <C> <C> <C> <C> <C> <C> <C>
6 Months Year 3 Months++ Year
Ended Ended Ended Ended
11/30/96 5/31/96 5/31/95 5/31/94 2/28/94 2/28/93 2/29/92
-------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE
Beginning of period ...... $ 5.11 $ 5.25 $ 5.11 $ 5.32 $ 5.42 $ 5.28 $ 5.10
Investment activities
Net investment income .... 0.16 0.33 0.31 0.08 0.29 0.32 0.36*
Net realized and
unrealized gain (loss) ... 0.14 (0.14) 0.14 (0.19) (0.09) 0.27 0.21
Total from
investment activities .... 0.30 0.19 0.45 (0.11) 0.20 0.59 0.57
Distributions
Net investment income .... (0.16) (0.33) (0.31) (0.08) (0.29) (0.32) (0.36)
Net realized gain ........ -- -- -- (0.02) (0.01) (0.13) (0.03)
Total distributions ...... (0.16) (0.33) (0.31) (0.10) (0.30) (0.45) (0.39)
NET ASSET VALUE
End of period ............ $ 5.25 $ 5.11 $ 5.25 $ 5.11 $ 5.32 $ 5.42 $ 5.28
Ratios/Supplemental Data
Total return ............. 5.92% 3.52% 9.29% (2.16)% 3.80% 11.77% 11.54%*
Ratio of expenses to
average net assets ....... 0.66%+ 0.65% 0.69% 0.70%+ 0.79% 0.80% 0.80%*
Ratio of net investment
income to average
net assets ............... 6.14%+ 6.14% 6.19% 5.78%+ 5.41% 5.98% 6.80%*
Portfolio turnover rate .. 58.8%+ 40.7% 81.1% 45.5%+ 20.2% 22.8% 91.4%
Net assets, end of period
(in thousands) $ 188,115 $ 174,176 $ 172,666 $ 181,231 $ 175,953 $ 163,480 $ 123,807
</TABLE>
* Excludes expenses in excess of a 0.80% voluntary expense limitation in
effect through 2/28/95.
+ Annualized.
++ The fund's fiscal year-end was changed to May 31.
================================================================================
For a share outstanding throughout each period
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
================================================================================
Unaudited
<TABLE>
T. Rowe Price U.S. Treasury Long-Term Fund
-------------------------------------------
For a share outstanding throughout each period
<S> <C> <C> <C> <C> <C> <C> <C>
6 Months Year 3 Months++ Year
Ended Ended Ended Ended
11/30/96 5/31/96 5/31/95 5/31/94 2/28/94 2/28/93 2/29/92
-------- ------- ------- ------- ------- ------- -------
NET ASSET VALUE
Beginning of period ....... $ 10.02 $ 10.54 $ 9.81 $ 10.46 $ 10.79 $ 10.39 $ 10.03
Investment activities
Net investment income 0.32* 0.65* 0.68* 0.17* 0.68* 0.70* 0.78*
Net realized and
unrealized gain (loss) 0.73 (0.52) 0.73 (0.64) (0.04) 0.68 0.36
Total from
investment activities 1.05 0.13 1.41 (0.47) 0.64 1.38 1.14
Distributions
Net investment income (0.32) (0.65) (0.68) (0.17) (0.68) (0.70) (0.78)
Net realized gain .... -- -- -- (0.01) (0.29) (0.28) --
Total distributions .. (0.32) (0.65) (0.68) (0.18) (0.97) (0.98) (0.78)
NET ASSET VALUE
End of period $ 10.75 $ 10.02 $ 10.54 $ 9.81 $ 10.46 $ 10.79 $ 10.39
Ratios/Supplemental Data
Total return 10.64%* 1.02%* 15.24%* (4.50)%* 5.89%* 14.11%* 11.86%*
Ratio of expenses to
average net assets 0.80%*+ 0.80%* 0.80%* 0.80%*+ 0.80%* 0.80%* 0.80%*
Ratio of net investment
income to average
net assets 6.21%*+ 6.05%* 7.05%* 6.75%*+ 6.17%* 6.75%* 7.66%*
Portfolio turnover rate 58.5%+ 60.1% 99.3% 246.9%+ 59.4% 165.4% 162.4%
Net assets, end of period
(in thousands) $75,775 $70,326 $ 65,284 $ 54,237 $ 56,632 $ 64,685 $ 52,926
- --------------------------------------------------------------------------------
* Excludes expenses in excess of a 0.80% voluntary expense limitation in
effect through 5/31/97.
+ Annualized.
++ The fund's fiscal year-end was changed to May 31.
- --------------------------------------------------------------------------------
</TABLE>
================================================================================
<PAGE>
Statement of Net Assets
================================================================================
Unaudited November 30, 1996
T. Rowe Price U.S. Treasury Money Fund
--------------------------------------
Par/Shares Value
---------- -----
U.S. GOVERNMENT OBLIGATIONS 97.7%
U.S. Treasury Obligations 97.7%
U.S. Treasury Bills
4.99%, 12/12/96 $ .................................. $ 24,981 $ 24,943
5.00%, 12/12/96 - 2/20/97 .......................... 49,662 49,279
5.01%, 2/6/97 ...................................... 25,000 24,767
5.015%, 2/20/97 - 3/6/97 ........................... 50,000 49,387
5.02%, 1/23/97 - 4/3/97 ............................ 22,558 22,366
5.025%, 1/9/97 - 2/6/97 ............................ 36,219 36,017
5.03%, 5/8/97 ...................................... 1,982 1,938
5.045%, 2/13/97 .................................... 25,000 24,741
5.06%, 4/3/97 ...................................... 975 958
5.065%, 1/9/97 - 4/3/97 ............................ 20,754 20,463
5.07%, 12/12/96 - 4/17/97 .......................... 15,187 14,986
5.08%, 5/8/97 ...................................... 1,573 1,538
5.085%, 1/16/97 .................................... 5,331 5,296
5.09%, 12/19/96 .................................... 2,198 2,192
5.105%, 12/19/96 ................................... 923 921
5.11%, 12/19/96 .................................... 3,703 3,694
5.115%, 1/16/97 .................................... 4,526 4,496
5.135%, 12/19/96 ................................... 45,000 44,884
5.14%, 12/19/96 - 1/9/97 ........................... 49,197 49,014
5.145%, 12/19/96 ................................... 36,285 36,192
5.17%, 12/5/96 ..................................... 25,000 24,986
5.29%, 12/12/96 .................................... 10,000 9,984
U.S. Treasury Notes
6.50%, 4/30/97 - 5/15/97 ........................... 37,000 37,177
6.625%, 3/31/97 .................................... 25,000 25,089
6.875%, 2/28/97 - 4/30/97 .......................... 95,000 95,373
7.50%, 12/31/96 - 1/31/97 .......................... 157,000 157,416
8.50%, 7/15/97 ..................................... 16,000 16,305
Total U.S. Government Obligations (Cost $784,402) 784,402
Total Investments in Securities
97.7% of Net Assets (Cost $784,402) $ 784,402
==== ======== =========
Other Assets Less Liabilities 18,488
NET ASSETS $ 802,890
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 81
Accumulated net realized gain/loss - net of distributions 127
Paid-in-capital applicable to 802,760,360 shares of $0.01 par
value capital stock outstanding; 1,000,000,000 shares
of the Corporation authorized 802,682
NET ASSETS $ 802,890
=========
NET ASSET VALUE PER SHARE $ 1.00
======
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<PAGE>
Statement of Net Assets
================================================================================
Unaudited November 30, 1996
T. Rowe Price U.S. Treasury Intermediate Fund
---------------------------------------------
Par/Shares Value
---------- -----
U.S. GOVERNMENT OBLIGATIONS 84.2%
U.S. Treasury Obligations 84.2%
U.S. Treasury Notes
5.75%, 8/15/03 ............................................. $ 8,600 $ 8,511
6.25%, 2/15/03 ............................................. 41,345 42,081
6.375%, 1/15/00 - 8/15/02 .................................. 31,550 32,188
6.50%, 8/31/01 ............................................. 5,000 5,135
6.75%, 4/30/00 ............................................. 2,175 2,241
6.875%, 7/31/99 - 8/31/99 .................................. 4,210 4,333
7.125%, 9/30/99 ............................................ 720 747
7.50%, 10/31/99 - 5/15/02 .................................. 39,275 42,053
7.75%, 11/30/99 ............................................ 6,000 6,332
7.875%, 8/15/01 ............................................ 7,850 8,503
8.25%, 7/15/98 ............................................. 5,945 6,191
Total U.S. Government Obligations (Cost $153,004) 158,315
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 14.6%
U.S. Government Guaranteed Obligations 14.6%
Government National Mortgage Assn.
I
6.50%, 8/15/02 - 10/15/02 .............................. 407 402
7.00%, 7/15/16 - 9/15/16 ............................... 2,064 2,081
7.50%, 6/15/08 - 11/15/17 .............................. 1,698 1,745
8.00%, 2/15/08 - 10/15/25 .............................. 3,282 3,418
8.50%, 8/15/04 - 4/15/23 ............................... 1,915 2,036
9.00%, 10/15/02 - 11/15/25 ............................. 195 209
9.50%, 12/15/24 - 5/15/25 .............................. 1,639 1,780
10.00%, 8/15/19 ........................................ 225 249
10.50%, 2/15/14 - 11/15/14 ............................. 355 395
11.00%, 12/15/09 - 12/15/19 ............................ 1,480 1,673
11.50%, 3/15/10 - 11/15/18 ............................. 2,871 3,307
12.50%, 1/15/11 - 3/15/15 .............................. 303 361
II
8.50%, 10/20/26 ........................................ 2,870 2,984
9.00%, 10/20/16 ........................................ 14 15
9.50%, 1/20/25 - 11/20/25 .............................. 531 572
10.50%, 12/20/15 - 6/20/19 ............................. 1,173 1,316
11.00%, 9/20/99 ...................................... 12 13
GPM, I, 11.00%, 9/15/10 .................................... 210 240
<PAGE>
Midget, I
6.00%, 3/15/11 ......................................... 977 956
7.50%, 8/15/10 ......................................... 1,721 1,767
9.00%, 11/15/03 ........................................ 541 567
9.50%, 1/15/98 - 12/15/05 .............................. 654 695
10.00%, 11/15/00 - 9/15/05 ............................. 277 293
10.50%, 11/15/97 - 9/15/04 ............................. 67 71
11.00%, 8/15/00 ........................................ 39 42
11.50%, 4/15/98 - 7/15/00 .............................. 171 182
Midget, II, 11.50%, 12/20/98 - 10/20/00 .................... 26 27
Total U.S. Government Mortgage-Backed Securities (Cost $26,869) 27,396
REPURCHASE AGREEMENTS 0.6%
Investments in Repurchase Agreements through a joint account,
5.51%, 12/2/96 ...................................... 1,221 1,221
Total Repurchase Agreements (Cost $1,221) 1,221
Total Investments in Securities
99.4% of Net Assets (Cost $181,094) $ 186,932
Other Assets Less Liabilities 1,183
NET ASSETS $ 188,115
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 250
Accumulated net realized gain/loss - net of distributions (3,371)
Net unrealized gain (loss) 5,838
Paid-in-capital applicable to 35,813,453 shares of $0.01 par
value capital stock outstanding; 1,000,000,000 shares
of the Corporation authorized 185,398
NET ASSETS $ 188,115
=========
NET ASSET VALUE PER SHARE $ 5.25
======
GPM Graduated Payment Mortgage
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<PAGE>
Statement of Net Assets
================================================================================
Unaudited November 30, 1996
T. Rowe Price U.S. Treasury Long-Term Fund
---------------------------------------------
Par/Shares Value
---------- -----
U.S. GOVERNMENT OBLIGATIONS 84.4%
U.S. Treasury Obligations 84.4%
U.S. Treasury Bonds
6.00%, 2/15/26 ............................................. $ 9,000 $ 8,487
6.25%, 8/15/23 ............................................. 12,500 12,121
6.875%, 8/15/25 ............................................ 4,000 4,221
7.125%, 2/15/23 ............................................ 13,000 14,028
7.50%, 11/15/24 ............................................ 11,000 12,447
7.625%, 2/15/25 ............................................ 6,000 6,897
11.25%, 2/15/15 ............................................ 3,800 5,780
Total U.S. Government Obligations (Cost $58,584) 63,981
U.S. GOVERNMENT MORTGAGE-BACKED
SECURITIES 14.2%
U.S. Government Guaranteed Obligations 14.2%
Government National Mortgage Assn ..........................
I
6.00%, 3/15/26 ..................................... 1,004 954
6.50%, 12/15/23 .................................... 429 422
7.00%, 6/15/26 ..................................... 1,006 1,000
8.00%, 10/15/16 - 3/15/17 .......................... 291 306
8.50%, 5/15/26 - 6/15/26 ........................... 1,958 2,047
9.00%, 7/15/16 - 5/15/21 ........................... 939 1,010
9.25%, 6/15/16 - 4/15/21 ........................... 139 149
9.50%, 8/15/09 ..................................... 71 77
10.00%, 12/15/17 - 8/15/19 ......................... 505 557
10.50%, 1/15/98 - 7/15/19 .......................... 439 488
11.50%, 10/15/10 - 8/15/15 ......................... 273 314
II, 9.25%, 2/20/16 ..................................... 183 196
GPM, I
9.25%, 12/15/16 - 5/15/21 .......................... 562 602
9.50%, 9/15/09 - 10/15/09 .......................... 307 334
10.25%, 1/15/18 - 3/15/18 .......................... 133 148
11.00%, 8/15/10 - 9/15/10 .......................... 11 12
11.25%, 11/15/15 ................................... 23 26
11.50%, 2/15/13 - 6/15/13 .......................... 54 63
REMIC
6.50%, 10/16/24 .................................. 2,000 1,849
Interest Only, 8.00%, 6/16/23** .................... 1,235 180
Total U.S. Government Mortgage-Backed Securities (Cost $10,310) 10,734
<PAGE>
REPURCHASE AGREEMENTS 0.5%
Investments in Repurchase Agreements through a joint account,
5.51%, 12/2/96 ..................................... 366 366
Total Repurchase Agreements (Cost $366) 366
Total Investments in Securities
99.1% of Net Assets (Cost $69,260) $ 75,081
Other Assets Less Liabilities 694
NET ASSETS $ 75,775
========
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 12
Accumulated net realized gain/loss - net of distributions (1,004)
Net unrealized gain (loss) 5,821
Paid-in-capital applicable to 7,047,045 shares of $0.01 par
value capital stock outstanding; 1,000,000,000 shares
of the Corporation authorized 70,946
NET ASSETS $ 75,775
========
NET ASSET VALUE PER SHARE $ 10.75
=======
- --------------------------------------------------------------------------------
** For Interest Only securities, par represents notional principal, on
which the fund receives interest
GPM Graduated Payment Mortgage
REMIC Real Estate Mortgage Investment Conduit
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<PAGE>
Statement of Operations
================================================================================
In thousands
Unaudited
T. Rowe Price U.S. Treasury Funds
---------------------------------
Money Intermediate Long-Term
Fund Fund Fund
- --------------------------------------------------------------------------------
6 Months 6 Months 6 Months
Ended Ended Ended
11/30/96 11/30/96 11/30/96
-------- -------- --------
Investment Income
Interest income ....................... . $ 20,186 $ 6,104 $ 2,615
Expenses
Investment management .................... 1,280 340 141
Shareholder servicing .................... 866 158 80
Custody and accounting ................... 66 56 45
Prospectus and shareholder reports ....... 29 10 6
Registration ............................. 29 14 14
Legal and audit .......................... 8 7 7
Directors ................................ 5 3 3
Miscellaneous ............................ 4 4 2
Total expenses ........................... 2,287 592 298
Net investment income .................... 17,899 5,512 2,317
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on securities ... 3 (861) (329)
Change in net unrealized gain or loss
on securities ............................ -- 5,854 5,604
Net realized and unrealized gain (loss) .. 3 4,993 5,275
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS .................... $ 17,902 $ 10,505 $ 7,592
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<PAGE>
Statement of Changes in Net Assets
================================================================================
In thousands
Unaudited
T. Rowe Price U.S. Treasury Money Fund
--------------------------------------
6 Months Year
Ended Ended
11/30/96 5/31/96
-------- -------
Increase (Decrease) in Net Assets
- ---------------------------------
Operations
Net investment income .................................. $17,899 $36,792
Net realized gain (loss) ............................... 3 66
Change in net unrealized gain or loss .................. -- 61
Increase (decrease) in net assets from operations ...... 17,902 36,919
Distributions to shareholders
Net investment income .................................. (17,899) (36,792)
Capital share transactions *
Shares sold ....................................... 1,095,921 1,183,840
Distributions reinvested .......................... 17,207 35,150
Shares redeemed ................................... (1,070,251) (1,178,322)
Increase (decrease) in net assets from capital
share transactions ............................... 42,877 40,668
Net Assets
- ----------
Increase (decrease) during period 42,880 40,795
Beginning of period 760,010 719,215
End of period $ 802,890 $ 760,010
=========== ===========
*Share information
Shares sold 1,095,921 1,183,840
Distributions reinvested 17,206 35,150
Shares redeemed (1,070,251) (1,178,322)
Increase (decrease) in shares outstanding 42,876 40,668
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<PAGE>
Statement of Changes in Net Assets
================================================================================
In thousands
Unaudited
T. Rowe Price U.S. Treasury Intermediate Fund
-----------------------------------------------
6 Months Year
Ended Ended
11/30/96 5/31/96
-------- -------
Increase (Decrease) in Net Assets
- ---------------------------------
Operations
Net investment income ............................ $ 5,512 $ 10,871
Net realized gain (loss) ......................... (861) (14)
Change in net unrealized gain or loss ............ 5,854 (4,800)
Increase (decrease) in net assets from operations. 10,505 6,057
Distributions to shareholders
Net investment income ............................ (5,512) (10,871)
Capital share transactions *
Shares sold ...................................... 55,589 56,067
Distributions reinvested ......................... 4,436 9,045
Shares redeemed .................................. (51,079) (58,788)
Increase (decrease) in net assets from capital
share transactions ............................... 8,946 6,324
Net Assets
Increase (decrease) during period ................ 13,939 1,510
Beginning of period .............................. 174,176 172,666
End of period ................................... $ 188,115 $ 174,176
*Share information
Shares sold ..................................... 10,847 10,638
Distributions reinvested ........................ 860 1,718
Shares redeemed ................................. (9,969) (11,161)
Increase (decrease) in shares outstanding ....... 1,738 1,195
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<PAGE>
Statement of Changes in Net Assets
================================================================================
In thousands
Unaudited
T. Rowe Price U.S. Treasury Long-Term Fund
-------------------------------------------
6 Months Year
Ended Ended
11/30/96 5/31/96
-------- -------
Increase (Decrease) in Net Assets
- ---------------------------------
Operations
Net investment income .............................. $ 2,317 $ 3,995
Net realized gain (loss) ........................... (329) 1,166
Change in net unrealized gain or loss .............. 5,604 (5,395)
Increase (decrease) in net assets from operations .. 7,592 (234)
Distributions to shareholders
Net investment income ............................. (2,317) (3,995)
Capital share transactions *
Shares sold ...................................... 17,298 54,802
Distributions reinvested ......................... 1,942 3,312
Shares redeemed .................................. (19,066) (48,843)
Increase (decrease) in net assets from capital
share transactions ............................... 174 9,271
Net Assets
Increase (decrease) during period ................ 5,449 5,042
Beginning of period .............................. 70,326 65,284
End of period .................................... $ 75,775 $ 70,326
======== ========
*Share information
Shares sold ...................................... 1,708 5,095
Distributions reinvested ......................... 190 312
Shares redeemed .................................. (1,866) (4,589)
Increase (decrease) in shares outstanding ........ 32 818
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
================================================================================
Unaudited November 30, 1996
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
================================================================================
T. Rowe Price U.S. Treasury Funds, Inc., (the corporation) is registered under
the Investment Company Act of 1940. The U.S. Treasury Money Fund (the Money
Fund), the U.S. Treasury Intermediate Fund (the Intermediate Fund), and the U.S.
Treasury Long-Term Fund (the Long-Term Fund), diversified, open-end management
investment companies, are the three portfolios established by the corporation
and commenced operations on June 28, 1982, September 29, 1989, and September 29,
1989, respectively.
Valuation Except for securities held by the Money Fund, securities are valued
based upon market quotations. When market quotations are not readily available,
these securities are valued at a representative bid price or yield equivalent as
quoted by dealers who make markets in such securities. Securities held by the
Money Fund are valued at amortized cost.
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 each
fund, as authorized by the Board of Directors.
Premiums and Discounts Premiums and discounts on debt securities, other than
mortgage-backed securities, are amortized for both financial reporting and tax
purposes. Premiums and discounts on mortgage-backed securities are recognized
upon principal repayment as gain or loss for financial reporting purposes and as
ordinary income for 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. Distributions to shareholders are
recorded by each 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.
<PAGE>
- --------------------------------------------------------------------------------
NOTE 2 - INVESTMENT TRANSACTIONS
================================================================================
Consistent with their investment objectives, the funds engage in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of each fund are
described more fully in each fund's prospectus and Statement of Additional
Information.
Repurchase Agreements The Intermediate and Long-Term Funds, and other affiliated
funds, may transfer uninvested cash into a joint account, the daily aggregate
balance of which is invested in one or more overnight repurchase agreements
collateralized by U.S. government securities. Collateral is in the possession of
each fund's custodian and is evaluated daily by each fund to ensure that its
market value exceeds the delivery value of the repurchase agreements at
maturity. All repurchase agreements purchased by the joint account satisfy each
fund's criteria as to quality, yield, and liquidity.
Securities Lending To earn additional income, the Intermediate and Long-Term
Funds lend securities to approved brokers. At November 30, 1996, the market
value of securities on loan by the Intermediate and Long-Term Funds was
$1,528,000 and $1,238,000, respectively, which was fully collateralized with
cash. Although the risk is mitigated by the collateral, each fund could
experience a delay in recovering its securities and a possible loss of income or
value if the borrower fails to return them.
Other Purchases and sales of U.S. government securities, excluding short-term
securities, for the six months ended November 30, 1996, were as follows:
================================================================================
Intermediate Fund Long-Term Fund
----------------- --------------
U.S. government securities
Purchases $ 69,610,000 $ 23,272,000
Sales 51,253,000 20,875,000
- --------------------------------------------------------------------------------
NOTE 3 - FEDERAL INCOME TAXES
================================================================================
No provision for federal income taxes is required since each fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income. The Intermediate Fund has unused realized capital loss
carryforwards for federal income tax purposes of $1,458,000, of which $156,000
expires in 2003, and $1,302,000 in 2004. The Long-Term Fund has an unused
realized capital loss carryforward for federal income tax purposes of $161,000
which expires in 2003. Each fund intends to retain gains realized in future
periods that may be offset by available capital loss carryforwards. At November
30, 1996, the aggregate costs of investments for the Money, Intermediate, and
Long-Term Funds for federal income tax and financial reporting purposes were
$784,402,000, $181,094,000, and $69,260,000, respectively. For the Money Fund,
amortized cost is equivalent to value; and for the Intermediate Fund and
Long-Term Funds, net unrealized gain (loss) on investments was as follows:
<PAGE>
================================================================================
Intermediate Fund Long-Term Fund
----------------- --------------
Appreciated investments $ 5,896,000 $ 5,906,000
Depreciated investments (58,000) (85,000)
Net unrealized gain (loss) $ 5,838,000 $ 5,821,000
- --------------------------------------------------------------------------------
NOTE 4 - RELATED PARTY TRANSACTIONS
================================================================================
The investment management agreement between each fund and T. Rowe Price
Associates, Inc. (the manager) provides for an annual investment management fee,
of which $214,000, $58,000, and $23,000 were payable at November 30, 1996 by the
Money, Intermediate, and Long-Term Funds, respectively. The fee is computed
daily and paid monthly, and consists of an individual fund fee equal to 0.05% of
average daily net assets for the Intermediate and Long-Term Funds, and a group
fee. The Money Fund does not have an individual fee, only 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 0.305% for assets
in excess of $50 billion. At November 30, 1996, and for the six months then
ended, the effective annual group fee rate was 0.33%. Each fund pays a pro-rata
share of the group fee based on the ratio of its net assets to those of the
group.
Under the terms of the investment management agreement, the manager is required
to bear any expenses through May 31, 1997, which would cause the Long-Term
Fund's ratio of expenses to average net assets to exceed 0.80%. Thereafter,
through May 31, 1999, the Long-Term Fund is required to reimburse the manager
for these expenses, provided that average net assets have grown or expenses have
declined sufficiently to allow reimbursement without causing the fund's ratio of
expenses to average net assets to exceed 0.80%. Pursuant to this agreement,
$23,000 of unaccrued fees from the prior period remain subject to reimbursement.
Additionally, $147,000 of unaccrued management fees related to a previous
agreement are subject to reimbursement through February 28, 1997.
In addition, each fund has entered into agreements with the manager and two
wholly owned subsidiaries of the manager, pursuant to which each fund receives
certain other services. The manager computes the daily share price and maintains
the financial records of each fund. T. Rowe Price Services, Inc. is each fund's
transfer and dividend disbursing agent and provides shareholder and
administrative services to the funds. T. Rowe Price Retirement Plan Services,
Inc., provides subaccounting and recordkeeping services for certain retirement
accounts invested in each fund. The Money, Intermediate, and Long-Term Funds
incurred expenses pursuant to these related party agreements totaling
approximately $769,000, $154,000, and $91,000, respectively, for the six months
ended November 30, 1996, of which $135,000, $31,000, and $19,000, respectively,
were payable at period-end.
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price Shareholder Services
================================================================================
================================================================================
Investment Services And Information
- --------------------------------------------------------------------------------
Knowledgeable Service Representatives
================================================================================
By Phone Shareholder service representatives are available from 8 a.m. to 10
p.m. ET Monday through Friday and from 8:30 a.m. to 5 p.m. ET on weekends. Call
1-800-225-5132 to speak directly with a representative who will be able to
assist you with your accounts.
In Person Visit one of our investor center
locations to meet with a representative who will be able to assist you with your
accounts. While there, you can drop off applications or obtain prospectuses and
other literature.
- --------------------------------------------------------------------------------
Automated 24-Hour Services
================================================================================
Tele*Access(Registration mark) Call 1-800-638-2587 to obtain information such as
account balance, date and amount of your last transaction, latest dividend
payment, fund prices, and yields. Additionally, you have the ability to request
prospectuses, statements, and account and tax forms; to reorder checks; and to
initiate purchase, redemption, and exchange orders for identically registered
accounts.
T. Rowe Price OnLine Through a personal computer via dial-up modem,
you can replicate all the services available on Tele*Access plus conduct
transactions in your Discount Brokerage and Variable Annuity accounts.
- --------------------------------------------------------------------------------
Account Services
================================================================================
Checking Write checks for $500 or more on any money market and most
bond fund accounts (except the High Yield and Emerging Markets Bond Funds).
Automatic Investing Build your account over time by investing directly from your
bank account or paycheck with Automatic Asset Builder. Additionally, Automatic
Exchange enables you to set up systematic investments from one fund account into
another, such as from a money fund into a stock fund. A low, $50 minimum makes
it easy to get started.
<PAGE>
Automatic Withdrawal If you need money from your fund account on a regular
basis, you can establish scheduled, automatic redemptions.
Dividend and Capital Gains Payment Options Reinvest all or some of your
distributions, or take them in cash. We give you maximum flexibility and
convenience.
- --------------------------------------------------------------------------------
Discount Brokerage *
================================================================================
Investments Available You can trade stocks, bonds, options, precious metals, and
other securities at a savings over regular commission rates.
To Open an Account
Call a shareholder service representative for more information.
- --------------------------------------------------------------------------------
Investment Information
================================================================================
Combined Statement A comprehensive overview of your T. Rowe Price accounts is
provided. The summary page gives you earnings by tax category, provides total
portfolio value, and lists your investments by type--stock, bond, and money
market. Detail pages itemize account transactions by fund.
Shareholder Reports Portfolio managers review the performance of the funds in
plain language and discuss T. Rowe Price's economic outlook.
The T. Rowe Price Report This is a quarterly newsletter with relevant articles
on market trends, personal financial planning, and T. Rowe Price's economic
perspective.
Performance Update This quarterly report reviews recent market developments and
provides comprehensive performance information for every T. Rowe Price fund.
Insights This library of information includes reports on mutual fund tax issues,
investment strategies, and financial markets.
Detailed Investment Guides Our widely acclaimed Asset Mix Worksheet, College
Planning Kit, Retirees Financial Guide, and Retirement Planning Kit (also
available on disk for PC use) can help you determine and reach your investment
goals.
* A division of T. Rowe Price Investment Services, Inc. Member NASD/SIPC.
================================================================================
<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price Mutual Funds
================================================================================
Mutual Funds
- --------------------------------------------------------------------------------
Stock Funds
- -------------------------
Domestic
- -------------------------
Balanced
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Dividend Growth
Equity Income
Equity Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era New Horizons *
OTC
Science & Technology
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
================================================================================
<PAGE>
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
================================================================================
<PAGE>
Money Market
- -----------------------------
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
- -----------------------------
Personal Strategy Income
Personal Strategy Balanced
Personal Strategy Growth
T. Rowe Price No-Load Variable Annuity
- ----------------------------------------
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
*Closed to new investors.
================================================================================
- --------------------------------------------------------------------------------
T. Rowe Price Discount Brokerage
================================================================================
- --------------------------------------------------------------------------------
Discount Brokerage
================================================================================
A Division of T. Rowe Price Investment Services, Inc., Member NASD/SIPC
- --------------------------------------------------------------------------------
This low-cost service gives you the opportunity to easily consolidate all your
investments with one company. Through T. Rowe Price Discount Brokerage, you can
buy and sell individual securities-stocks, bonds, options, and others-at
considerable commission savings. We also provide a wide range of services,
including:
Automated Telephone and Computer Services You can enter trades, access quotes,
and review account information 24 hours a day, seven days a week. Any trades
executed through these programs save you an additional 10% on commissions.*
Investor Information A variety of informative reports, such as our Brokerage
Insights series, S&P Market Month newsletter, and optional S&P Stock Reports,
can help you better evaluate economic trends and investment opportunities.
Dividend Reinvestment Service Virtually all stocks held in customer accounts are
eligible for this service, free of charge.
- --------------------------------------------------------------------------------
*Discount applies to our current commission schedule; subject to our $35
minimum commission.
================================================================================
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
625-6500 Baltimore area
<PAGE>
To open a Discount Brokerage
account or obtain information,
call: 1-800-638-5660 toll free
Internet address:
http://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 U.S. Treasury Funds (R).
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
T. Rowe Price Investment Services, Inc., Distributor
RPRTUSC 11/30/96
