<PAGE>
Annual Report
Mid-Cap
Growth
Fund
------------------
December 31, 1998
------------------
[ARTWORK APPEARS HERE]
T. Rowe Price
<PAGE>
REPORT HIGHLIGHTS
- --------------------------------------------------------------------------------
Mid-Cap Growth Fund
. Led again by large-cap stocks, the market notched a record fourth
consecutive year of double-digit returns.
. The fund delivered a solid 12-month return of 22.00%, exceeding its Lipper
peer group index and the major mid-cap stock indices.
. Our largest industry allocations continue to be in the business services
and consumer sectors. Technology increased slightly due to new purchases
and appreciation.
. Leading contributors included Netscape and Biogen; laggards were led by
Warnaco, in the weak apparel sector, and Security Capital Group, hurt by
weakness in commercial real estate.
. With mid-cap valuations close to historic lows relative to large-caps, we
believe the fund is well positioned to achieve attractive long-term
returns.
<PAGE>
Fellow Shareholders
Despite the market's increased volatility during the year, investors enjoyed
strong stock market gains once again in 1998. The S&P 500 Stock Index of
large capitalization stocks soared 28.57%, a record fourth consecutive year of
returns in excess of 20%. Large, blue chip companies continued to lead the
advance.
Although mid-cap stocks lagged large-caps, the S&P MidCap Index rebounded
sharply after a plunge of 30% to finish 1998 with a 19.11% gain. The Mid-Cap
Growth Fund outperformed two passive benchmarks, the S&P MidCap Index and the
Russell Midcap Growth Index, for the year, though we lagged slightly in the
second half. The fund easily beat a peer group of other mid-cap funds for both
periods. Since the fund's inception in 1992, it has gained 300.52%,
significantly better than the S&P MidCap Index's 213.63% increase over that
period. (For a chart of the fund's performance since inception, please turn to
page 10.)
- ----------------------
Performance Comparison
- --------------------------------------------------------------------------------
Periods Ended 12/31/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Mid-Cap Growth Fund 4.62% 22.00%
................................................................................
S&P MidCap Index 9.64 19.11
................................................................................
Russell Midcap Growth Index 5.36 17.86
................................................................................
Lipper Mid Cap Fund Index 1.53 13.92
................................................................................
YEAR-END DISTRIBUTIONS
Your Board of Directors declared a short-term capital gain of $0.02 per share
and a long-term capital gain of $0.71 per share. Both were paid on December 17
to shareholders of record on December 15. You should already have received a
check or statement reflecting these distributions as well as our Form 1099-DIV
reporting them for tax purposes.
MARKET ENVIRONMENT
The primary concern entering the year was the collapse of many of the Asian
economies, and the effect that this might have on the U.S. economy and stock
market. In retrospect, the economic and political dislocations in Asia have been
even greater than many anticipated, yet their
1
<PAGE>
- ----------------------------------------------------------------
Preparing For The Year 2000
- --------------------------------------------------------------------------------
The Year 2000 draws closer every day, and it holds special meaning beyond the
arrival of a new millennium. The issue for investors is that many computer
programs throughout the world use two digits instead of four to identify the
year and may assume the next century starts with 1900. If these programs are not
modified, they will not be able to correctly handle the century change when the
year changes from "99" to "00" on January 1, 2000, and they will no longer be
able to perform necessary functions. The Year 2000 issue affects all companies
and organizations.
T. Rowe Price has been taking steps to assure that its computer systems and
processes are capable of functioning in the Year 2000. Detailed plans for
remediation efforts have been developed and are currently being executed.
OUR PLAN OF ACTION
We began to address these issues several years ago by requiring that all new
systems process and store four-digit years. All critical systems have been
reprogrammed (including business applications required to service our customers
and processing infrastructure necessary to ensure the integrity of customer data
and investments), and they are currently being tested. Because we exchange data
electronically with customers and vendors, we are working with them to assess
the adequacy of their own compliance efforts. Our goal is to ensure the
continuation of the same level of service to all our mutual fund shareholders
and clients after December 31, 1999.
We are asking all vendors and companies we do business with for a Year 2000
compliance status, with the expectation that some organizations will not be able
to modify their interface files prior to December 31, 1999. In addition, we are
scheduling tests for critical vendors and companies that claim Year 2000
compliance to ensure that time-related data and calculations function properly
as we move into the next century.
SMOOTH TRANSITION PLANNED
We believe our programs and initiatives will provide a smooth transition into
the next millennium. We are assessing all systems providing products or services
to our retail mutual fund shareholders, retirement plan sponsors, and
participants, and we have modified them where necessary for the Year 2000.
The Securities Industry Association (SIA) is coordinating Year 2000 testing to
assure that securities markets, clearing corporations, depositories, and third
party service providers can send, receive, and process files and transactions
accurately. In late July 1998, the SIA completed a beta test of Year 2000
readiness. The test was considered successful in terms of transactions completed
and will serve as the basis for the SIA's industry-wide approach. During October
1998, T. Rowe Price completed its beta test of Year 2000 readiness with the SIA
and is ready for the industry-wide test that is scheduled for March and April
1999.
For a more detailed discussion of our Year 2000 effort, as well as continuing
updates on our progress, please check our Web site (www.troweprice.com).
2
<PAGE>
effects on the U.S. have been less than feared. However, the changed perception
of the risks in emerging markets has reverberated around the world. The Russian
economy collapsed in late summer, taking several hedge funds with it and
triggering a bailout of one by a group of financial institutions coordinated by
the Federal Reserve. A brief credit crunch ensued but was alleviated by three
successive reductions in interest rates by the Fed between September 30 and
November 18.
The stock market started the year with a strong gain in the first several
months, but suffered a significant correction in the summer and early fall,
particularly in the small- and mid-cap sectors, before rallying strongly in the
fourth quarter. The domestic economic backdrop was very supportive: GDP grew
moderately, powered by low unemployment and strong consumer confidence;
inflation continued to decline to almost negligible levels, spurred by excess
supplies of many commodities; and long-term interest rates fell from about 5.9%
at the beginning of 1998 to 5.1% at year-end. The extraordinarily long domestic
economic expansion has turned a massive federal government deficit into an
annual surplus in just several years. Washington was consumed by President
Clinton's legal and political problems in 1998, but most investors ignored his
actual impeachment.
For the fifth consecutive year, mid- and small-cap stocks lagged the S&P 500
Index as investors continued to gravitate toward large, blue chip companies.
Commodity-dependent stocks suffered all year long. Technology stocks were the
year's best performers, led by manic speculation in the Internet sector.
PORTFOLIO REVIEW
- ------------------------
Mid-Cap Stock Returns
- --------------------------------------------------------------------------------
Periods Ended 12/31/98 6 Months 12 Months
- --------------------------------------------------------------------------------
Russell Midcap Index 0.88% 10.09%
................................................................................
Russell Midcap Growth Index 5.36 17.86
................................................................................
Russell Midcap Value Index -1.94 5.08
................................................................................
After leading the plunge in stock prices in the third quarter, technology stocks
staged a ferocious rally in the fourth quarter and represented five of the top
10 contributors to the fund for the second half of 1998. Acquisition targets led
the list: Netscape Communications, a leading Internet software company that we
purchased near the market lows in October, subsequently accepted an offer from
America Online;
3
<PAGE>
and Berg Electronics, an electronic connector manufacturer, was acquired by a
French company for a healthy premium.
The other industry sector that contributed significantly to second half
performance was biotechnology. The fund's top contributor for both the half and
the year was Biogen, which gained significant market share after the launch of
its multiple sclerosis drug, Avonex. The second-best contributor to performance
in the second half of the year was Agouron Pharmaceuticals, which rebounded
strongly as its drug for treating HIV became the leading seller in its class.
MORE THAN A DOZEN OF THE FUND'S HOLDINGS HAVE BEEN ACQUIRED . . .
IN THE LAST 12 MONTHS . . .
The worst contributor to the fund's performance in the second half was Warnaco
Group, a leading apparel vendor to department stores, which suffered a slight
earnings disappointment in the third quarter because of sluggish sales to Asia.
Warnaco's stock was cut in half as the shortfall coincided with negative
investor sentiment toward the apparel sector in general. We continue to like the
company's prospects, and we feel its valuation is modest. Two communications
stocks, Paging Network, the largest U.S. paging-service provider, and Omnipoint,
a wireless phone service company, both experienced operating difficulties and
saw their stocks punished as a result. The most deleterious contributor to the
fund's performance for 1998 as a whole was Security Capital Group, a commercial
real estate investment advisory company; commercial property stocks were
pummeled this year, and the company fell well short of investors' earnings
expectations.
As we noted in our midyear report, the current merger boom has not entirely
passed us by. More than a dozen of the fund's holdings have been acquired or
announced they were being acquired in the last 12 months, including Netscape,
Jacor Communications, Fred Meyer, and Culligan Water Technologies, to name a
few. While we never invest in a company simply because we think it might be an
acquisition candidate, our valuation discipline tends to lead us to companies
that are often attractive to corporate acquirers.
The fund remains well diversified across industry sectors. Our exposure to
technology, an area we've traditionally underweighted relative to many other
growth funds, increased a little in recent months, due partly to an increase in
emphasis during the early fall sell-off, but mostly due to appreciation. We also
increased our exposure to the consumer sector recently with the purchase of new
positions in companies such as Whole Foods Market, Family Dollar Stores, Saks,
and Jones Apparel Group.
4
<PAGE>
INVESTMENT STRATEGY AND OUTLOOK
There are many investment crosscurrents as we enter 1999. The U.S. economy is
growing, though not as fast as a few quarters ago.
European growth appears to be slackening, but some Asian economies seem to be
bottoming. The U.S. is teetering on the cusp of deflation, driven by lower
commodity prices, yet the labor market is very tight, raising the potential for
higher inflation in the not-too-distant future. With inflation low and profit
margins close to historic highs, it is possible that corporate earnings may
stall or decline; in fact, this process may have already started.
- -------------------------
Sector Diversification
- ----------------------------------------------------------------------------
6/30/98 12/31/98
- ----------------------------------------------------------------------------
Financial 11% 10%
............................................................................
Health Care 14 11
............................................................................
Consumer 17 20
............................................................................
Technology 11 15
............................................................................
Business Services 29 29
............................................................................
Energy 4 2
............................................................................
Industrial 4 4
............................................................................
Basic Materials 1 -
............................................................................
Reserves 9 9
- ----------------------------------------------------------------------------
Total 100% 100%
Though absolute stock market valuations are high, the current beneficent
environment--low inflation, declining interest rates, and high consumer
confidence--could persist for some time. However, we have experienced a long
period of prosperity, and history tells us that booms do not last forever.
The most disquieting aspect of the current environment is the Internet stock
mania. It is worth stating that we view the Internet as one of the great
technological advances of the modern age. Time will tell, but it may change
paradigms across industries in ways every bit as profound as the development of
national transportation and communications networks and the introduction of
electricity in the late 19th century. Many industries and companies may
experience great leaps in efficiency that will dramatically change business
processes, alter pricing structures, and upset the status quo.
For example, as recently as five years ago, most individuals wishing to invest
in specific stocks would go to a full-service broker charging 25 cents or more
per share for a 1,000 share trade. A minority would trade through a discount
broker, at perhaps half the price. The
5
<PAGE>
Internet, however, has dramatically changed the economics of the discount
brokerage business because it provides the communications tools for individuals
to interface directly with the broker's computers. In effect, client service,
the most significant cost factor in this segment, has largely been automated. As
prices for Internet trades have plunged to 3 cents per share or less (well below
what large institutions typically pay), the individual investor has reemerged as
a factor in the stock market, which had been dominated for years by
institutional trading.
While the ascendancy of the individual investor may be the start of a long-term
trend, in the short term it is also being accompanied by speculation of a
magnitude not seen in many years, focused on--you guessed it--Internet stocks.
In this buying frenzy, day traders rule, Internet IPO's double and triple on
their first day as public companies, announcements of Web sites are greeted with
exaggerated upward stock movements, and Internet chat rooms and bulletin boards
provide forums for the tumultuous exchange of views by professionals,
individuals, corporate insiders, speculators, and hucksters alike. Stocks get
pushed to valuations that discount the hereafter.
The most recent speculative parallel is probably the frenzy in biotechnology
stocks in the early 1990s, but the Internet frenzy has already gone much
further. The lessons from the biotechnology craze and other speculative bouts
like it are that, ultimately, corporate profitability and return on invested
capital matter. If previous manias are any indication, many of today's
highfliers will never achieve profitability and will go out of business. Others
will be acquired. A select few will emerge to become blue chip companies of the
next decade. But many of the rewards will accrue to companies that haven't even
been formed or dreamt of yet. Obviously, we are taking a very cautious approach
to the Internet sector at this juncture, but we look forward to becoming more
active after the speculative bubble bursts.
THE MOST DISQUIETING ASPECT OF THE CURRENT ENVIRONMENT IS THE INTERNET STOCK
MANIA.
As an aside, the Internet sector has waylaid many institutional investors,
including us. For example, though we owned America Online when it was a mid-cap
company (and admittedly sold it much, much too early), it began 1998 as a $10
billion market capitalization company, double the upper threshold of what we
consider to be mid-cap but still in the S&P MidCap Index. As the stock rose
almost seven-fold during the year, it contributed more than seven percentage
points of the index's 19.11% gain for 1998, vastly exceeding the contribution
6
<PAGE>
of any other stock to a major U.S. stock index. In contrast, the single largest
contributor to the S&P 500 was Microsoft, which was responsible for just 1.39
percentage points of the index's 28.57% gain. Ironically, AOL's influence on the
mid-cap index was magnified by the news that it was being removed from the
index! AOL jumped 9% on New Year's Eve as it was about to leave the S&P MidCap
Index and join the S&P 500. Its market capitalization (share price multiplied by
shares outstanding) was $73 billion at year-end.
The stock market wasted little time recovering from the extreme pessimism of
late summer to set new record highs in late November and again in early January.
The market now trades once again in the upper reaches of its historic valuation
range, as we described in our last report. The failure of small- and mid-cap
stocks to exert leadership at this late stage of the market and economic cycle
remains a puzzle. Even though we expect these companies to grow their earnings
significantly faster than their large-cap counterparts over the next several
years, their valuations are at record lows relative to the S&P 500 stocks. We
continue to believe the Mid-Cap Growth Fund is well positioned to achieve
attractive returns over the long term.
Respectfully submitted,
/s/ Brian W.H. Berghuis
Brian W.H. Berghuis
President and Chairman of the Investment Advisory Committee
January 19, 1999
7
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
- -----------------------
Portfolio Highlights
- --------------------------------------------------------------------------------
TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
12/31/98
- --------------------------------------------------------------------------------
Affiliated Computer Services 1.9%
...............................................................................
U.S. Foodservice 1.8
...............................................................................
Suiza Foods 1.8
...............................................................................
Galileo International 1.7
...............................................................................
Circuit City Stores 1.7
- --------------------------------------------------------------------------------
Warnaco Group 1.6
...............................................................................
Gilead Sciences 1.6
...............................................................................
Outdoor Systems 1.5
...............................................................................
Analog Devices 1.5
...............................................................................
Waddell & Reed 1.5
- --------------------------------------------------------------------------------
Univision Communications 1.4
...............................................................................
Danaher 1.4
...............................................................................
Xilinx 1.4
...............................................................................
Covance 1.4
...............................................................................
Allied Waste Industries 1.3
- -------------------------------------------------------------------------------
Saville Systems 1.3
...............................................................................
Network Associates 1.3
...............................................................................
Premier Parks 1.3
...............................................................................
FINOVA Group 1.3
...............................................................................
Western Wireless 1.3
- --------------------------------------------------------------------------------
Synopsys 1.3
...............................................................................
Whole Foods Market 1.2
...............................................................................
Romac International 1.2
...............................................................................
Biogen 1.2
...............................................................................
The CIT Group 1.2
- --------------------------------------------------------------------------------
Total 36.1%
8
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
- ------------------------
Portfolio Highlights
- --------------------------------------------------------------------------------
CONTRIBUTIONS TO THE CHANGE IN NET ASSET VALUE PER SHARE
6 Months Ended 12/31/98
Ten Best Contributors Ten Worst Contributors
- --------------------------------------------------------------------------------
Biogen 30(cents) Warnaco Group -28(cents)
...................................... .......................................
Agouron Pharmaceuticals 27 Paging Network 26
...................................... .......................................
Netscape Communications * 26 Omnipoint 22
...................................... .......................................
Xilinx 23 Corporate Express ** 21
...................................... .......................................
Berg Electronics ** 21 Security Capital Group ** 20
...................................... .......................................
U.S. Foodservice 20 Renaissance Worldwide 19
...................................... .......................................
Danaher 18 Ocean Energy 18
...................................... .......................................
Gilead Sciences 15 General Nutrition 18
...................................... .......................................
Network Associates 15 Quorum Health Group 18
...................................... .......................................
Analog Devices 14 AMRESCO ** 17
- -------------------------------------- ---------------------------------------
Total 209(cents) Total -207(cents)
12 Months Ended 12/31/98
Ten Best Contributors Ten Worst Contributors
- -------------------------------------------------------------------------------
Biogen 46(cents) Security Capital Group ** -26(cents)
...................................... ......................................
Capital One Financial 41 Omnipoint 24
...................................... ......................................
Affiliated Computer Services 31 AMRESCO ** 24
...................................... ......................................
Agouron Pharmaceuticals 29 Ocean Energy * 23
...................................... ......................................
Outdoor Systems 28 Smith International 22
...................................... ......................................
Network Associates 26 Gymboree ** 20
...................................... ......................................
Netscape Communications * 26 Corporate Express ** 19
...................................... ......................................
Galileo International 25 Corrections Corp of America**18
...................................... ......................................
Danaher 25 Quorum Health Group 17
...................................... ......................................
Xilinx 23 General Nutrition 17
- -------------------------------------- --------------------------------------
Total 300(cents) Total -210(cents)
* Position added
** Position eliminated
9
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
- -----------------------
Performance Comparison
- --------------------------------------------------------------------------------
This chart shows the value of a hypothetical $10,000 investment in the fund over
the past 10 fiscal year periods or since inception (for funds lacking 10-year
records). The result is compared with a broad-based average or index. The index
return does not reflect expenses, which have been deducted from the fund's
return.
[LINE GRAPH APPEARS HERE]
MID-CAP GROWTH FUND
- ------------------------------------------------------------
S&P MidCap Lipper Mid Cap Mid-Cap
Index Fund Index Growth Fund
----- ---------- -----------
6/30/92 $10,000 $10,000 $10,000
12/92 $11,609 $11,802 $12,454
12/93 $13,229 $13,615 $15,721
12/94 $12,755 $13,340 $15,767
12/95 $16,702 $17,753 $22,224
12/96 $19,909 $20,647 $27,744
12/97 $26,330 $24,253 $32,830
12/98 $31,363 $27,629 $40,052
- -------------------------------------
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.
Since Inception
Periods Ended 12/31/98 1 Year 3 Years 5 Years Inception Date
- --------------------------------------------------------------------------------
Mid-Cap Growth Fund 22.00% 21.69% 20.57% 23.79% 6/30/92
................................................................................
Investment return and principal value represent past performance and will vary.
Shares may be worth more or less at redemption than at original purchase.
10
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
- ---------------------
Financial Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year
Ended
12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 28.60 $ 24.43 $ 20.13 $ 14.85 $ 15.18
..................................................................................
Investment activities
Net investment income (0.03) (0.03) (0.01) - -*
Net realized and
unrealized gain (loss) 6.24 4.50 5.00 6.07 0.04
..................................................................................
Total from
investment activities 6.21 4.47 4.99 6.07 0.04
..................................................................................
Distributions
Net realized gain (0.73) (0.30) (0.69) (0.79) (0.37)
..................................................................................
NET ASSET VALUE
End of period $ 34.08 $ 28.60 $ 24.43 $ 20.13 $ 14.85
----------------------------------------------------------------------------------
Ratios/Supplemental Data
Total return+ 22.00% 18.33% 24.84% 40.95% 0.29%*
.........................................................................................................................
Ratio of expenses to
average net assets 0.91% 0.95% 1.04% 1.25% 1.25%*
.........................................................................................................................
Ratio of net investment
income to average
net assets (0.14)% (0.14)% (0.11)% (0.01)% 0.02%*
.........................................................................................................................
Portfolio turnover rate 46.7% 42.6% 38.1% 57.5% 48.7%
.........................................................................................................................
Net assets, end of period
(in millions) $ 3,310 $ 1,839 $ 1,021 $ 264 $ 101
.........................................................................................................................
</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.
* Excludes expenses in excess of a 1.25% voluntary expense limitation in
effect through 12/31/95.
The accompanying notes are an integral part of these financial statements.
11
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
December 31, 1998
- -------------------------
Portfolio of Investments Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Common Stocks 91.2%
FINANCIAL 10.2%
Bank and Trust 1.1%
North Fork Bancorporation 1,500,000 $ 35,906
................................................................................
35,906
.............
Insurance 3.5%
ACE Limited 750,000 25,828
................................................................................
Fairfax Financial (CAD) * 64,000 22,611
................................................................................
Fairfax Financial, Rights (144a) (CAD) * 11,000 3,692
................................................................................
PartnerRe Holdings 675,000 30,881
................................................................................
Protective Life 800,000 31,850
................................................................................
114,862
.............
Financial Services 5.6%
Capital One Financial 350,000 40,250
................................................................................
FINOVA Group 775,000 41,801
................................................................................
Franklin Resources 500,000 16,000
................................................................................
The CIT Group (Class A) 1,275,000 40,561
................................................................................
Waddell & Reed Financial (Class A) 1,425,000 33,755
................................................................................
Waddell & Reed Financial (Class B) * 637,900 14,831
................................................................................
187,198
..............
Total Financial 337,966
..............
HEALTH CARE 10.8%
Pharmaceuticals 1.8%
ALZA (Class A) * 465,000 24,296
................................................................................
Teva Pharmaceutical Industries ADR 825,000 33,645
................................................................................
57,941
..............
Biotechnology 4.6%
Agouron Pharmaceuticals * 425,000 24,955
................................................................................
BioChem Pharma * 507,400 14,556
................................................................................
Biogen * 493,700 40,946
................................................................................
Gilead Sciences * 1,275,000 52,315
................................................................................
MedImmune * 200,000 19,938
................................................................................
152,710
..............
12
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Medical Instruments and Devices 1.2%
Sybron International * 1,450,000 $ 39,422
................................................................................
39,422
..............
Health Care Services 3.2%
Covance * 1,550,000 45,144
................................................................................
Omnicare 600,000 20,850
................................................................................
Quorum Health Group * 950,000 12,261
................................................................................
Total Renal Care Holdings * 979,900 28,968
................................................................................
107,223
..............
Total Health Care 357,296
..............
CONSUMER 19.8%
Soft Goods Retailers 2.1%
Family Dollar Stores 1,650,000 36,300
................................................................................
Saks * 1,075,000 33,930
................................................................................
70,230
..............
Hard Goods Retailers 9.6%
AutoZone * 1,100,000 36,231
................................................................................
BJ's Wholesale Club * 875,000 40,523
................................................................................
Borders Group * 802,700 20,017
................................................................................
Circuit City Stores 1,125,000 56,180
................................................................................
Costco Companies * 485,000 35,087
................................................................................
Fred Meyer * 650,000 39,163
................................................................................
General Nutrition * 1,200,000 19,463
................................................................................
Shopko Stores * 897,900 29,855
................................................................................
Whole Foods Market * 850,000 41,225
................................................................................
317,744
..............
Consumer Non-Durables 1.6%
Warnaco Group (Class A) 2,100,000 53,025
................................................................................
53,025
..............
Restaurants 1.1%
Outback Steakhouse * 900,000 35,831
................................................................................
35,831
..............
Food and Beverages 1.8%
Suiza Foods * 1,150,000 58,578
................................................................................
58,578
..............
13
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Entertainment 2.5%
Premier Parks * 1,400,000 $ 42,350
................................................................................
Royal Caribbean Cruises 1,075,000 39,775
................................................................................
82,125
..............
Consumer Cyclicals 1.1%
Jones Apparel Group * 1,754,400 38,706
................................................................................
38,706
..............
Total Consumer 656,239
..............
TECHNOLOGY 14.9%
Semiconductors & Components 6.0%
Analog Devices * 1,550,000 48,631
................................................................................
KLA-Tencor * 625,000 27,129
................................................................................
Maxim Integrated Products * 825,000 36,016
................................................................................
PMC-Sierra * 550,000 34,667
................................................................................
Sanmina * 113,200 7,061
................................................................................
Xilinx * 700,000 45,566
................................................................................
199,070
..............
Networking and Telecom Equipment 0.4%
Anixter International * 675,000 13,711
................................................................................
13,711
..............
Computer Service and Software 6.3%
BMC Software * 375,000 16,723
................................................................................
Intuit * 275,000 19,937
................................................................................
Netscape Communications * 350,000 21,164
................................................................................
Network Associates * 650,000 43,123
................................................................................
Parametric Technology * 2,075,000 33,719
................................................................................
Synopsys * 768,200 41,627
................................................................................
The Learning Company * 1,275,000 33,070
................................................................................
209,363
..............
E-Commerce 2.2%
Checkfree Holdings * 900,000 20,981
................................................................................
E*TRADE * 300,000 14,035
................................................................................
Sterling Commerce * 799,000 35,955
................................................................................
70,971
..............
Total Technology 493,115
..............
14
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
BUSINESS SERVICES 29.0%
Telecom Services 3.9%
Comcast (Class A Special) 675,000 $ 39,635
................................................................................
Cox Communications (Class A) * 475,000 32,834
................................................................................
Omnipoint * 1,210,800 11,389
................................................................................
Paging Network * 1,004,800 4,679
................................................................................
Western Wireless * 1,900,000 41,741
................................................................................
130,278
..............
Computer Services 9.3%
Acxiom * 900,000 27,844
................................................................................
Affiliated Computer Services (Class A) * 1,425,000 64,125
................................................................................
CIBER * 112,100 3,132
................................................................................
DST Systems * 650,000 37,090
................................................................................
Galileo International 1,310,300 56,998
................................................................................
National Data 800,000 38,950
................................................................................
Saville Systems ADR * + 2,275,000 43,154
................................................................................
SunGard Data Systems * 952,500 37,802
................................................................................
309,095
..............
Distribution 3.7%
Henry Schein * 850,000 37,984
................................................................................
MSC * 1,134,700 25,673
................................................................................
U.S. Foodservice * 1,200,000 58,800
................................................................................
122,457
..............
Transportation 0.7%
Viad 711,300 21,606
................................................................................
21,606
..............
Media and Advertising 4.7%
Catalina Marketing * 400,000 27,350
................................................................................
Jacor Communications * 440,000 28,463
................................................................................
Outdoor Systems * 1,686,900 50,607
................................................................................
Univision Communications * 1,325,000 47,948
................................................................................
154,368
..............
Environmental 2.0%
Allied Waste Industries * 1,850,000 43,706
................................................................................
Waste Management 473,500 22,077
................................................................................
65,783
..............
15
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
Shares/Par Value
- --------------------------------------------------------------------------------
In thousands
Miscellaneous Business Services 4.7%
Gartner Group (Class A) * 1,750,000 $37,187
................................................................................
Interim Services * 1,455,400 34,020
................................................................................
NOVA * 1,090,000 37,809
................................................................................
Renaissance Worldwide * 1,030,400 6,376
................................................................................
Romac International * 1,850,000 41,047
................................................................................
156,439
...............
Total Business Services 960,026
...............
ENERGY 2.2%
Energy Services 2.0%
BJ Services * 1,875,000 29,297
................................................................................
Smith International * 1,382,400 34,819
................................................................................
64,116
...............
Exploration and Production 0.2%
Ocean Energy * 1,160,900 7,328
................................................................................
7,328
...............
Total Energy 71,444
...............
INDUSTRIAL 4.0%
Defense and Aerospace 0.8%
BE Aerospace * 1,325,000 27,784
................................................................................
27,784
...............
Specialty Chemicals 0.6%
Great Lakes Chemical 523,400 20,936
................................................................................
20,936
...............
Machinery 2.6%
Danaher 875,000 47,523
................................................................................
Teleflex 806,700 36,806
................................................................................
84,329
...............
Total Industrial 133,049
...............
16
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares/Par Value
- -----------------------------------------------------------------------------------
In thousands
<S> <C> <C>
BASIC MATERIALS 0.3%
Mining 0.3%
Battle Mountain Gold 2,193,600 $ 9,049
................................................................................
Total Basic Materials 9,049
..............
Total Common Stocks (Cost $2,239,938) 3,018,184
..............
Short-Term Investments 8.3%
U.S. Government Obligations 0.0%
U.S. Treasury Bills, 4.34%, 1/21/99 $ 450,000 449
................................................................................
449
Money Market Funds 8.3%
Government Reserve Investment Fund, 4.76% # + 274,848,959 274,849
274,849
..............
Total Short-Term Investments (Cost $275,298) 275,298
..............
Total Investments in Securities
99.5% of Net Assets (Cost $2,515,236) 3,293,482
Other Assets Less Liabilities 16,693
..............
NET ASSETS $ 3,310,175
--------------
</TABLE>
# Seven-day yield
+ Affiliated company
* Non-income producing
ADR American Depository Receipt
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers N total of such securities at period-end amounts to
0.11% of net assets.
CAD Canadian dollar
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
December 31, 1998
- -----------------------------------
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
In thousands
Assets
Investments in securities, at value
Affiliated companies (cost $347,567) $ 345,787
Other companies (cost $2,167,669) 2,947,695
..............
Total investments in securities 3,293,482
Other assets 72,653
..............
Total assets 3,366,135
Liabilities
Total liabilities 55,960
..............
NET ASSETS $ 3,310,175
--------------
Net Assets Consist of:
Accumulated net realized gain/loss - net of distributions 27,903
Net unrealized gain (loss) 778,246
Paid-in-capital applicable to 97,126,495 shares of
$0.01 par value capital stock outstanding;
1,000,000,000 shares authorized 2,504,026
..............
NET ASSETS $ 3,310,175
--------------
NET ASSET VALUE PER SHARE $ 34.08
--------------
The accompanying notes are an integral part of these financial statements.
18
<PAGE>
<TABLE>
<CAPTION>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------------
- -----------------------
Statement of Operations
- --------------------------------------------------------------------------------------
In thousands
Year
Ended
12/31/98
<S> <C>
Investment Income
Income
Interest (including $12,914 from affiliates) $ 12,920
Dividend 6,412
..............
Total income 19,332
..............
Expenses
Investment management 16,692
Shareholder servicing 5,096
Registration 415
Prospectus and shareholder reports 303
Custody and accounting 147
Legal and audit 14
Directors 13
Miscellaneous 23
..............
Total expenses 22,703
..............
Net investment income (3,371)
..............
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 78,292
Futures 9
Foreign currency transactions 7
..............
Net realized gain (loss) 78,308
Change in net unrealized gain or loss on securities 418,865
..............
Net realized and unrealized gain (loss) 497,173
..............
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $493,802
--------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
19
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
- ----------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
Year
Ended
12/31/98 12/31/97
<S> <C> <C>
Increase (Decrease) in Net Assets
Operations
Net investment income $ (3,371) $ (1,974)
Net realized gain (loss) 78,308 35,684
Change in net unrealized gain or loss 418,865 210,970
...........................
Increase (decrease) in net assets from operations 493,802 244,680
...........................
Distributions to shareholders
Net realized gain (68,042) (19,049)
...........................
Capital share transactions*
Shares sold 1,717,440 1,031,810
Distributions reinvested 65,226 18,314
Shares redeemed (736,903) (458,141)
...........................
Increase (decrease) in net assets from capital
share transactions 1,045,763 591,983
...........................
Net Assets
Increase (decrease) during period 1,471,523 817,614
Beginning of period 1,838,652 1,021,038
...........................
End of period $3,310,175 $1,838,652
---------------------------
*Share information
Shares sold 55,088 39,733
Distributions reinvested 2,129 657
Shares redeemed (24,377) (17,896)
...........................
Increase (decrease) in shares outstanding 32,840 22,494
</TABLE>
The accompanying notes are an integral part of these financial statements.
20
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
December 31, 1998
- ------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Mid-Cap Growth Fund, Inc. (the fund) is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company and commenced operations on June 30, 1992.
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.
Short-term debt securities are valued at amortized cost which, when combined
with accrued interest, approximates fair value.
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.
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
21
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
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.
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.
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities, other than short-term and U.S.
government securities, aggregated $1,877,836,000 and $1,051,993,000,
respectively, for the year ended December 31, 1998.
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.
In order for the fund's capital accounts and distributions to shareholders to
reflect the tax character of certain transactions, the following
reclassifications were made during the year ended December 31, 1998. The results
of operations and net assets were not affected by the increases/(decreases) to
these accounts.
- --------------------------------------------------------------------------------
Undistributed net investment income $ 3,371,000
Undistributed net realized gain (5,423,000)
Paid-in-capital 2,052,000
22
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
At December 31, 1998, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$2,515,236,000. Net unrealized gain aggregated $778,246,000 at period-end, of
which $878,963,000 related to appreciated investments and $100,717,000 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 $1,715,000 was payable at December 31, 1998. The fee is computed daily
and paid monthly, and consists of an individual fund fee equal to 0.35% of
average daily net assets and a group fee. The group fee is based on the combined
assets of certain mutual funds sponsored by the manager or Rowe Price-Fleming
International, Inc. (the group). The group fee rate ranges from 0.48% for the
first $1 billion of assets to 0.30% for assets in excess of $80 billion. At
December 31, 1998, and for the year 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.
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 $3,999,000 for the year ended
December 31, 1998, of which $403,000 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 year ended December 31, 1998, totaled
$12,914,000 and are reflected as interest income in the accompanying Statement
of Operations.
23
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
- ----------------------------------
Report of Independent Accountants
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
T. Rowe Price Mid-Cap Growth Fund, Inc.
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
T. Rowe Price Mid-Cap Growth Fund, Inc. (the "Fund") at December 31, 1998, and
the results of its operations, the changes in its net assets and the financial
highlights for each of the fiscal periods presented, in conformity with
generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at December 31, 1998 by
correspondence with custodians, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 21, 1999
24
<PAGE>
T. Rowe Price Mid-Cap Growth Fund
- --------------------------------------------------------------------------------
- -------------------------------------------------------------
Tax Information (Unaudited) for the Tax Year Ended 12/31/98
- --------------------------------------------------------------------------------
We are providing this information as required by the Internal Revenue Code. The
amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund's distributions to shareholders included:
. $1,866,000 from short-term capital gains,
. $66,176,000 from long-term capital gains, subject to the 20% rate gains
category.
For corporate shareholders, $5,106,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
25
<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.
26
<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
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
* Formerly named Equity Index.
** Closed to new investors.
*** Formerly named Florida Insured Intermediate Tax-Free.
+ Formerly named Tax-Free Insured Intermediate Bond.
++ Formerly named Global Government Bond.
+++ Neither the funds nor their share prices are insured or guaranteed by the
U.S. government.
Please call for a prospectus. 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.
27
<PAGE>
T. Rowe Price Retirement Plans and Resources
- --------------------------------------------------------------------------------
Retirement Plans and Resources
We recognize that saving for retirement is the number one investment goal for
most Americans. We can help you meet your retirement needs, whether you are
starting an IRA or designing a retirement program for your employees. T. Rowe
Price offers an assortment of retirement plans for individuals, the self-
employed, small businesses, corporations, and nonprofit organizations. We
provide recordkeeping, communications, and investment management services, as
well as a variety of educational materials, self-help planning guides, and
software tools to help you choose and implement a retirement plan appropriate
for you. For information or to request literature, call us at 1-800-638-5660.
IRAs AND QUALIFIED PLANS
................................................................................
Traditional IRA
Roth IRA
Rollover IRA
SEP-IRA
SIMPLE IRA
Profit Sharing
Money Purchase Pension
"Paired" Plans (Money Purchase Pension and Profit Sharing Plans)
401(k)
403(b)
457 Deferred Compensation
RETIREMENT RESOURCES AT T. ROWE PRICE
................................................................................
Planning and Informational Guides
Minimum Required Distributions Guide
Retirement Planning Kit
Retirees Financial Guide
Tax Considerations for Investors
Investment Kits
The IRA Investing Kit
Roth IRA Conversion Kit
Rollover IRA Kit
The T. Rowe Price SIMPLE IRA Plan Kit
The T. Rowe Price SEP-IRA Plan
The Simplified Keogh Plan(R) From T. Rowe Price
The T. Rowe Price 401(k) Century Plan(R) (for small businesses)
Money Purchase Pension/Profit Sharing Plan Kit
Investing for Retirement in Your 403(b) Account
The T. Rowe Price No-Load Variable Annuity Information Kit
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.
Many of these resources are also available for viewing or ordering on the
Internet at www.troweprice.com.
28
<PAGE>
T. Rowe Price Insights Reports
- --------------------------------------------------------------------------------
The Fundamentals of Investing
Whether you are unsure how to get started or are saving for a specific goal,
such as retirement or college, the T. Rowe Price Insights series can help you
make informed investment decisions. These reports, written in plain English
about fundamental investment topics, can be useful at every stage of your
investment journey. They cover a range of topics, from the basic, such as
getting started with mutual funds, to the more advanced, such as managing risk
through diversification or buying individual securities through a broker. To
request one or more Insights, call us at 1-800-638-5660.
INSIGHTS REPORTS
................................................................................
General Information
The ABCs of Giving
Back to Basics: The ABCs of Investing
The Challenge of Preparing for Retirement
Financial Planning After Retirement
Getting Started: Investing With Mutual Funds
The Roth IRA: A Review
Tax Information for Mutual Fund Investors
Investment Strategies
Conservative Stock Investing
Dollar Cost Averaging
Equity Index Investing
Growth Stock Investing
Investing for Higher Yield
Managing Risk Through Diversification
The Power of Compounding
Value Investing
Types of Securities
The Basics of International Stock Investing
The Basics of Tax-Free Investing
The Fundamentals of Fixed Income Investing
Global Bond Investing
Investing in Common Stocks
Investing in Emerging Growth Stocks
Investing in Financial Services Stocks
Investing in Health Care Stocks
Investing in High-Yield Municipal Bonds
Investing in Money Market Securities
Investing in Mortgage-Backed Securities
Investing in Natural Resource Stocks
Investing in Science and Technology Stocks
Investing in Small-Company Stocks
Understanding Derivatives
Understanding High-Yield "Junk" Bonds
Brokerage Insights
Combining Individual Securities With Mutual Funds
Getting Started: An Introduction to Individual Securities
What You Should Know About Bonds
What You Should Know About Margin and Short-Selling
What You Should Know About Options
What You Should Know About Stocks
T. Rowe Price Insights are also available for reading or downloading on the
Internet at www.troweprice.com.
29
<PAGE>
For yield, price, last transaction, current balance, or to conduct transactions,
24 hours, 7 days a week, call Tele*Access(R): 1-800-638-2587 toll free
For assistance with your existing fund account, call: Shareholder Service Center
1-800-225-5132 toll free 410-625-6500 Baltimore area
To open a brokerage account or obtain information, call: 1-800-638-5660 toll
free
Internet address: www.troweprice.com
T. Rowe Price Associates 100 East Pratt Street Baltimore, Maryland 21202 This
report is authorized for distribution only to shareholders and to others who
have received a copy of the prospectus of the T. Rowe Price Mid-Cap Growth Fund.
Investor Centers:
101 East Lombard St.
Baltimore, MD 21202
T. Rowe Price
Financial Center
10090 Red Run Blvd.
Owings Mills, MD 21117
Farragut Square
900 17th Street, N.W.
Washington, D.C. 20006
ARCO Tower
31st Floor
515 South Flower St.
Los Angeles, CA 90071
4200 West Cypress St.
10th Floor
Tampa, FL 33607
[LOGO OF T. ROWE PRICE APPEARS HERE]
T. Rowe Price Investment Services, Inc., Distributor. F64-050 12/31/98
