<PAGE>
- --------------------------------------------------------------------------------
T. Rowe Price
- --------------------------------------------------------------------------------
Semiannual Report
Blue Chip Growth Fund
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
================================================================================
BLUE CHIP GROWTH FUND
- ---------------------
* Strong economic growth and emerging inflation fears pushed up interest
rates and helped cyclicals outperform steady growth stocks.
* The fund posted strong gains, although it modestly trailed the S&P 500
and its peer group average.
* Although the fund did not benefit from the market shift to cyclicals,
its technology, media, and telecommunications holdings performed well.
* Valuations in our market remain high, but excellent corporate earnings
and a favorable investing environment could lead to continued stock
gains.
================================================================================
FELLOW SHAREHOLDERS
================================================================================
The first half of 1999 saw a significant shift in investor sentiment.
Stability returned to Asia and other foreign economies, but as the U.S. economy
thrived, the threat of inflation intensified. Interest rates rose across the
board during the period, and the Federal Reserve made one increase in the
federal funds target rate on June 30. Yet investors remained positive on the
earnings outlook for many companies, and stocks posted solid gains.
<PAGE>
================================================================================
PERFORMANCE COMPARISON
================================================================================
Periods Ended 6/30/99 6 Months 12 Months
--------------------- -------- ---------
Blue Chip Growth Fund 9.84% 20.48%
S&P500 12.38 22.76
Lipper Growth Funds Average 11.65 18.87
================================================================================
In this environment, your fund continued to perform reasonably well,
generating solid gains over the past year as well as over the three- and
five-year periods. However, for the six months ended June 30, the fund trailed
its peer group average and the unmanaged Standard & Poor's 500 Stock Index.
Performance during this period was somewhat lackluster as cyclical, energy, and
technology stocks surged (and pharmaceutical and financial stocks
underperformed) in the robust economic environment. It is worth noting that
small- and mid-cap stocks outpaced large-caps in the second quarter -- an
unusual occurrence during the past several years. For the 12-month period, your
fund surpassed the peer group average but lagged the S&P 500.
================================================================================
MARKET ENVIRONMENT
================================================================================
Once again, we learned that the market environment and investor perceptions
can turn on a dime. Six months ago, investors were preoccupied with problems in
Asian and Latin American economies, the Long-Term Capital hedge fund, global
deflation, and recession. Investors also feared that a general slowdown in
economic activity and a flood of cheap imports due to the devaluation of foreign
currencies would result in severe pricing pressures and problematic deflation in
the U.S., particularly in many commodity-based industries.
<PAGE>
As 1999 progressed, however, investors seemed more concerned that improved
growth in foreign economies, coupled with buoyant U.S. growth, could lead to
meaningful increases in inflation. Inflation concerns were aggravated by a sharp
rise in oil prices. Oil essentially doubled from $10 to $20 per barrel over the
last few months due to efforts by OPEC to limit production. These pressures
helped produce some increases in inflation although the most recent consumer
price index data showed no increase.
Interest rates rose significantly to reflect inflation fears, with the
30-year Treasury bond yield increasing from 5% to around 6% during the period.
Yet the Federal Reserve (and investors) had to grapple with conflicting data. In
addition to the rise in energy prices and the strength of economic data, labor
markets were very tight and average hourly wages rose. On the other hand,
productivity continued to improve and inflation reports were inconsistent but
generally favorable. Growth could moderate if the increase in rates slows the
housing market and if consumers cease spending in excess of disposable personal
income. The Fed has also taken note of the dramatic growth of the Internet and
its favorable effect on price competition and efficiency.
<PAGE>
INFORMATION ON YEAR-END DISTRIBUTIONS
-------------------------------------
To help you with tax planning, we try to give
you a good idea of the per-share income and
capital gain amounts our funds may distribute
near year-end. In late October, we will
provide estimates of these amounts, which
will be paid on December 16, 1999, to
shareholders of record on December 14. These
preliminary numbers will be included in The
Price Report mailing to shareholders in late
October and will also be available on our Web
site - www.troweprice.com. We hope that these
preliminary numbers will be useful to you in
approximating the income and capital gains
taxes you may pay on distributions to taxable
accounts. If your fund distributed any
capital gains earlier in 1999, you can find
the amounts on your statements and should
include them in your tax planning
calculations. Please keep in mind that the
numbers are not final and are likely to be
revised before the December 14 declaration
and record date. As the fall progresses, you
may want to check our Web site for revisions.
If you would like information on tax matters
relating to mutual funds, please visit our
Web site to download our Insights report, Tax
Information for Mutual Fund Investors, or
call 1-800-225-5132 to request a copy.
=============================================
<PAGE>
Investors reacted by bidding up the value of cyclical and technology
stocks, which should fare well in a technology-driven economic upswing.
Meanwhile, the stocks of more defensive steady-growth companies, such as
pharmaceuticals, and interest rate sensitive stocks, such as financials,
generally struggled. Earnings were once again a critical component of
performance: generally speaking, quarterly earnings among the blue chips met or
exceeded expectations, but investors continued to punish stocks that missed
their targets even by small amounts.
PORTFOLIO REVIEW
Your fund has less exposure to the technology sector than the average
growth fund, and technology holdings performed very well in the first half of
1999. However, we did have several investments that participated in the tech
stock rally. MICROSOFT, AMERICA ONLINE, HEWLETT-PACKARD, TEXAS INSTRUMENTS, and
CISCO SYSTEMS were all among the top 10 contributors to performance in the first
half. ASCEND COMMUNICATIONS, recently acquired by LUCENT TECHNOLOGIES, MAXIM
INTEGRATED PRODUCTS, a leading maker of analog semiconductors, BMC Software, a
software provider for mainframe computers, Sun Microsystems, and EMC, a data
storage equipment and software firm, were also stellar performers.
Telecommunication stocks also added meaningfully to returns. MCI WORLDCOM
made progress toward integrating MCI and produced strong operating results: it
was a top-10 contributor to performance. Long time holding AIRTOUCH
COMMUNICATIONS augmented results when it merged with Vodaphone to form the
largest global cellular telephone service provider. NOKIA, the Finnish maker of
cellular handsets and telecom infrastructure, continued to take market share
from rivals and its stock appreciated sharply. TELLABS, a supplier of cross
connects and other telecom switching gear, continued to post strong growth. Its
new product offerings in the optical switching area have also caused investors
to bid the stock higher. ALLTEL, among the largest providers of cellular and
local phone service in the Southeast, has been a strong, steady grower -- the
company has a multi-decade record of dividend increases -- and continued to help
your fund's performance.
<PAGE>
Although rising interest rates dampened the gains of many financial stocks,
some companies in this area rallied in the second quarter and ultimately were
top-flight performers. CITIGROUP was our top contributor. This company has been
a major holding since the fund's inception in 1993, and we are pleased to have
added to the position consistently, particularly when the stock was very much
out of favor in the second half of 1998. CAPITAL ONE, a rapidly growing provider
of credit card financing and services, generated high-quality earnings growth
and strong stock performance. Long time holdings BANKAMERICA (the successor to
Nationsbank) and AMERICAN EXPRESS created some anxiety with investors as the
Asian crisis and new business initiatives challenged their growth. However,
earnings prospects have improved and the stocks have appreciated slowly but
steadily. Although your fund does not own many industrial/ cyclical stocks,
three positions in this area were noteworthy contributors. Top-10 holding Tyco
International, which we have written about in previous reports, did very well
and now has a market value of over $80 billion. ALLIEDSIGNAL rewarded our
patience as its stock has periodically been a mediocre performer over the last
several years, but soared in the first half of 1999 and was our fifth best
stock. CORNING has also been inconsistent, but its dominance of the markets for
glass fiber and other equipment used in telecommunications is now bearing fruit.
[Sector Diversification pie chart here showing (based on net assets as of
6/30/99): Business services and transportation, 12%. Capital equipment and
process industries, 7%. Technology, 17%. Consumer services and consumer
cyclicals, 18%. Financial, 20%. Energy and utilities, 5%. Consumer nondurables,
19%. Reserves, 2%.]
Although they weren't the largest story of the first half, entertainment
and media stocks also did well. CBS, a major television and radio operator, was
an important contributor to fund performance. Its Infinity broadcasting unit
controls the former Westinghouse radio broadcasting group and has the dominant
position in most urban markets. Management has also been able to steer the
television group to the top of the network rankings while also establishing
important interests in various Internet-based businesses and companies. Media
giant TIME WARNER, with significant cable interests, and MEDIAONE GROUP, a top
cable and media operator that agreed to be acquired by AT&T, were also
outstanding.
<PAGE>
As always, some stocks produced disappointing results. NETWORK ASSOCIATES
was our largest loser. The company is the leading provider of virus control and
other data security software. It had a consistent, multiyear record of internal
growth and had grown rapidly through acquisition. However, it appeared to have
trouble effectively managing all of its acquired businesses, and strong
competitors began to challenge it in the lucrative area of data security. The
company missed its earnings growth targets, and management does not appear to be
in control of the problems. Because we lost confidence in management and the
competition in this area is growing more intense, we eliminated the position.
MCKESSONHBOC faced a similar situation. The management of McKesson, a drug
distributor, championed its purchase of HBOC, which produces health care
information systems to hospitals and other health care providers, claiming that
the combination would rapidly create solutions to help lower health care costs.
In our opinion, the strategy has some merit. Unfortunately, it appears to us
that HBOC was a motivated and dishonest seller of its business. It improperly
recorded revenues on several software contracts, and the managements of both
HBOC and McKesson have now been removed by the board. Fortunately, because our
analyst was concerned that year 2000 issues would meaningfully slow the firm's
software installations, we sold a substantial portion of our position before its
sharp decline. After analyzing the situation, we concluded that the problems
would take some time to fix (and we did not know the new management well enough
to have confidence in them). Thus, we sold the rest of our position at prices
well above the current price.
<PAGE>
================================================================================
STRATEGY
================================================================================
Our investment strategy continued to focus on maintaining positions in core
holdings as long as the fundamentals remain strong and the valuations are
reasonable. Consequently, much of the substantial cash flow the fund has
received continued to be invested opportunistically in existing holdings. For
example, additions to FREDDIE MAC, Microsoft, Citigroup, Ascend Communications
(now Lucent), MediaOne Group, PFIZER, and INTEL were significant enough to be
included in the 10 largest purchases of the fund for the past six months.
However, we did establish some new major positions. MARSH & MCLENNAN is the
leading insurance brokerage operation in the world and also has a significant
stake in asset management (Putnam) and consulting (Mercer). The company is very
profitable with top-tier return on equity and also possesses a strong long-term
earnings and dividend growth record. The stock has been strong since our
purchase.
As noted earlier, Corning has stumbled from time to time, but its long-term
growth record is well above average (strong double-digit growth over the last 20
years). More important, management has sold consumer businesses with lower
returns to focus its time, energy, and substantial research spending on new
telecom products. Its LEAF fiber is state of the art and is being adopted by
most of the major telecom carriers that are installing fiber networks. The
company is well positioned to participate as the telecom area expands.
NIKE has been a less satisfying new purchase. The earnings outlook for the
company is quite good, and continued improvement in foreign economies should
ensure that the earnings rebound is sustainable. However, the company's apparel
business is struggling as management eliminates excess inventory and streamlines
its product offerings. Although the company is highly profitable and a leader in
its businesses, we are reluctant to increase our modest position until we obtain
further evidence that the apparel business will not offset the powerful
improvement under way in the footwear operations.
<PAGE>
================================================================================
OUTLOOK
================================================================================
Currently, the market appears to face the risk that a synchronized global
economic boom will lead to sharp increases in inflation and interest rates.
However, just six months ago, the fear was that global recession and deflation
would crush corporate earnings. The fleeting nature of market perception is why
we limit time spent on economic prediction and focus on finding solid companies
with above-average growth prospects. This is where we believe we have some
expertise and where we feel we can add the most value, particularly if those who
focus on economic predictions and sector rotation sell growth companies at
reasonable valuations because their sector is out of favor.
===================================
The fleeting nature of market
perception is why we limit time
spent on economic prediction and
focus on finding solid companies
with above-average growth
prospects.
===================================
However, as we have noted in previous letters, the most serious challenge
to continued gains may be that stocks have performed so well. Said another way,
even some of the "out of favor" sectors in which we have been purchasing stocks
(pharmaceuticals, financials) are not cheap by historical absolute standards.
However, sound investing must take into account the outlook for the general
investment environment, future company earnings, and an assessment of reasonable
valuations. Considering these factors, we believe the outlook for U.S. stocks
and your fund remains favorable:
<PAGE>
* Inflation and interest rate data remain attractive. Despite inflation
concerns, data continue to support the thesis that the economy is
growing at a manageable pace.
* Earnings growth is very strong at many high-quality U.S. companies,
and the valuations of selected companies remain reasonable. The
rotation toward cyclicals has created especially interesting
opportunities in some high-quality growth stocks.
* The blue chip universe is fortunate to have numerous top-notch,
entrepreneurial management teams implementing sound business models.
Many of these teams have improved the competitiveness of their
businesses as well as the durability and predictability of earnings.
* Many of our holdings generate significant free cash flow, and
shareholder-oriented managements typically use this cash to repurchase
shares or make acquisitions in a manner that might enhance stock
performance over time. This may prove to be particularly advantageous
if a challenging environment causes stock weakness for these companies
or potential acquisitions.
<PAGE>
As always, we seek blue chip companies with leading market positions,
seasoned management, and strong financial fundamentals that can generate
earnings growth regardless of the economic or interest rate environment. We
believe we can enhance returns and lower risk over time by investing in such
"all season" growth companies especially when they are at reasonable valuations.
Although the market may not always go up, we continue to believe that this
strategy will provide highly attractive investment results over time. We
appreciate your continued support in this endeavor.
Respectfully submitted,
/s/
Larry J. Puglia
President and Chairman of the Investment Advisory Committee
July 22, 1999
================================================================================
<PAGE>
T. Rowe Price Blue Chip Growth Fund
================================================================================
TWENTY-FIVE LARGEST HOLDINGS
- ----------------------------
Portfolio Highlights
Percent of
Net Assets
6/30/99
- --------------------------------------------------------------------
Citigroup 2.9%
- --------------------------------------------------------------------
Tyco International 2.8
- --------------------------------------------------------------------
Microsoft 2.7
- --------------------------------------------------------------------
MCI WorldCom 2.4
- --------------------------------------------------------------------
Freddie Mac 2.4
- --------------------------------------------------------------------
Bristol-Myers Squibb 1.9
- --------------------------------------------------------------------
Wells Fargo 1.7
- --------------------------------------------------------------------
AlliedSignal 1.5
- --------------------------------------------------------------------
GE 1.5
- --------------------------------------------------------------------
<PAGE>
United HealthCare 1.5
- --------------------------------------------------------------------
Pfizer 1.4
- --------------------------------------------------------------------
Intel 1.4
- --------------------------------------------------------------------
Merck 1.4
- --------------------------------------------------------------------
Time Warner 1.4
- --------------------------------------------------------------------
Waste Management 1.3
- --------------------------------------------------------------------
Bank of America 1.3
- --------------------------------------------------------------------
Warner-Lambert 1.3
- --------------------------------------------------------------------
Safeway 1.3
- --------------------------------------------------------------------
CBS 1.3
- --------------------------------------------------------------------
Hewlett-Packard 1.3
- --------------------------------------------------------------------
Fannie Mae 1.2
- --------------------------------------------------------------------
BMC Software 1.2
- --------------------------------------------------------------------
Wal-Mart 1.2
- --------------------------------------------------------------------
Danaher 1.2
- --------------------------------------------------------------------
Mobil 1.1
- --------------------------------------------------------------------
Total 40.6%
Note: Table excludes reserves.
================================================================================
<PAGE>
T. Rowe Price Blue Chip Growth Fund
- -----------------------------------
Portfolio Highlights
MAJOR PORTFOLIO CHANGES
- -----------------------
Listed in descending order of size
6 Months Ended 6/30/99
- ----------------------
Freddie Mac McKessonHBOC **
- ----------------------------------------------------------------------------
Microsoft AT&T **
- ----------------------------------------------------------------------------
Citigroup First Union **
- ----------------------------------------------------------------------------
Ascend Communications America Online
- ----------------------------------------------------------------------------
Marsh & McLennan * Sara Lee **
- ----------------------------------------------------------------------------
MediaOne Group SBCCommunications
- ----------------------------------------------------------------------------
Corning * Newell Rubbermaid
- ----------------------------------------------------------------------------
NIKE* Nokia
- ----------------------------------------------------------------------------
Pfizer Oracle
- ----------------------------------------------------------------------------
Intel Guidant **
- --------------------------------------------------------------------------------
* Position added
** Position eliminated
================================================================================
<PAGE>
T. Rowe Price Blue Chip 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. An index
return does not reflect expenses, which have been deducted from the fund's
return.
[SEC chart for Blue Chip Growth shown here]
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 6/30/99 1 Year 3 Years 5 Years Inception Date
- --------------------- ------ ------- ------- --------- ----
Blue Chip Growth Fund 20.48% 27.50% 27.15% 24.17% 6/30/93
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original purchase.
================================================================================
<PAGE>
T. Rowe Price Blue Chip Growth Fund
- -----------------------------------
Unaudited
For a share outstanding throughout each period
FINANCIAL HIGHLIGHTS
- --------------------
6 Months Year
Ended Ended
6/30/99 12/31/98 12/31/97 12/31/96 12/31/95 12/31/94
-----------------------------------------------------
NET ASSET VALUE
Beginning of period $ 30.60 $ 24.17 $ 19.06 $15.09 $11.11 $11.24
- -------------------------------------------------------------------------------
Investment activities
Net investment income 0.03 0.11 0.13 0.14 0.16* 0.12*
Net realized and
unrealized gain (loss) 2.98 6.82 5.12 4.05 4.05 (0.03)
- -------------------------------------------------------------------------------
Total from
investment activities 3.01 6.93 5.25 4.19 4.21 0.09
- -------------------------------------------------------------------------------
Distributions
Net investment income - (0.11) (0.12) (0.14) (0.15) (0.10)
Net realized gain - (0.39) (0.02) (0.08) (0.08) (0.12)
- -------------------------------------------------------------------------------
Total distributions - (0.50) (0.14) (0.22) (0.23) (0.22)
- -------------------------------------------------------------------------------
NET ASSET VALUE
===============================================================================
End of period $ 33.61 $ 30.60 $ 24.17 $ 19.06 $15.09 $11.11
Ratios/Supplemental Data
Total return** 9.84% 28.84% 27.56% 27.75% 37.90%* 0.80%*
- -------------------------------------------------------------------------------
Ratio of total expenses
to average net assets 0.92%+ 0.91% 0.95% 1.12% 1.25%* 1.25%*
- -------------------------------------------------------------------------------
Ratio of net investment
income to average
net assets 0.19%+ 0.43% 0.86% 0.87% 1.27%* 1.05%*
- -------------------------------------------------------------------------------
Portfolio turnover rate 40.6%+ 34.5% 23.7% 26.3% 38.1% 75.0%
- -------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 5,804 $ 4,330 $ 2,345 $ 540 $ 146 $ 39
- -------------------------------------------------------------------------------
** 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 12/31/96.
+ Annualized
The accompanying notes are an integral part of these financial statements.
<PAGE>
===========================================================================
T. Rowe Price Blue Chip Growth Fund
- -----------------------------------
Unaudited June 30, 1999
Statement of Net Assets
Shares Value
In thousands
Common Stocks 97.7%
- -------------------
FINANCIAL 19.6%
- ---------------
Bank and Trust 6.4%
Bank of America 1,060,000 $ 77,711
- ------------------------------------------------------------------------------
Bank of New York 1,700,000 62,369
- ------------------------------------------------------------------------------
Bank One 100,000 5,956
- ------------------------------------------------------------------------------
Chase Manhattan 485,000 42,013
- ------------------------------------------------------------------------------
Mellon Bank 1,700,000 61,838
- ------------------------------------------------------------------------------
State Street 250,000 21,344
- ------------------------------------------------------------------------------
Wells Fargo 2,375,000 101,531
- ------------------------------------------------------------------------------
372,762
- ------------------------------------------------------------------------------
INSURANCE 3.3%
ACE Limited 1,100,000 31,075
- ------------------------------------------------------------------------------
American International Group 170,000 19,901
- ------------------------------------------------------------------------------
Fairfax Financial (CAD) * 61,100 16,390
<PAGE>
- ------------------------------------------------------------------------------
Marsh & McLennan 520,000 39,260
- ------------------------------------------------------------------------------
Travelers Property Casualty (Class A) 640,000 25,040
- ------------------------------------------------------------------------------
UNUM 440,000 24,090
- ------------------------------------------------------------------------------
XL Capital (Class A) 622,300 35,160
- ------------------------------------------------------------------------------
190,916
- ------------------------------------------------------------------------------
Financial Services 9.9%
American Express 470,000 61,159
- ------------------------------------------------------------------------------
Associates First Capital (Class A) 1,030,000 45,642
- ------------------------------------------------------------------------------
Capital One Financial 825,000 45,942
- ------------------------------------------------------------------------------
Citigroup 3,535,748 167,948
- ------------------------------------------------------------------------------
Fannie Mae 1,060,000 72,477
- ------------------------------------------------------------------------------
Freddie Mac 2,375,000 137,750
- ------------------------------------------------------------------------------
Goldman Sachs Group * 121,300 8,764
- ------------------------------------------------------------------------------
Morgan Stanley Dean Witter 310,000 31,775
- ------------------------------------------------------------------------------
571,457
- ------------------------------------------------------------------------------
Total Financial 1,135,135
- ------------------------------------------------------------------------------
<PAGE>
=UTILITIES==1.8%==============================================================
Telephone 1.8%
ALLTEL 463,300 33,126
- ------------------------------------------------------------------------------
GTE 300,000 22,725
- ------------------------------------------------------------------------------
SBC Communications 700,000 $ 40,600
- ------------------------------------------------------------------------------
Sprint 200,000 10,562
- ------------------------------------------------------------------------------
Total Utilities 107,013
- ------------------------------------------------------------------------------
=CONSUMER=NONDURABLES==19.2%==================================================
Cosmetics 0.2%
Gillette 350,000 14,350
- ------------------------------------------------------------------------------
14,350
- ------------------------------------------------------------------------------
Beverages 1.0%
Coca-Cola 140,000 8,750
- ------------------------------------------------------------------------------
PepsiCo 1,300,000 50,294
- ------------------------------------------------------------------------------
59,044
- ------------------------------------------------------------------------------
Food Processing 0.4%
Heinz 500,000 25,063
- ------------------------------------------------------------------------------
25,063
- ------------------------------------------------------------------------------
<PAGE>
Hospital Supplies/Hospital Management 1.2
Baxter International 300,000 18,188
- ------------------------------------------------------------------------------
Boston Scientific * 691,900 30,400
- ------------------------------------------------------------------------------
Medtronic 25,000 1,947
- ------------------------------------------------------------------------------
Wellpoint Health Networks * 200,000 16,975
- ------------------------------------------------------------------------------
67,510
- ------------------------------------------------------------------------------
Pharmaceuticals 10.7%
American Home Products 880,000 50,600
- ------------------------------------------------------------------------------
Amgen * 300,000 18,253
- ------------------------------------------------------------------------------
Biogen * 470,000 30,242
- ------------------------------------------------------------------------------
Bristol-Myers Squibb 1,565,000 110,235
- ------------------------------------------------------------------------------
Eli Lilly 700,000 50,137
- ------------------------------------------------------------------------------
Johnson & Johnson 640,000 62,720
- ------------------------------------------------------------------------------
Merck 1,090,000 80,660
- ------------------------------------------------------------------------------
Pfizer 740,000 81,215
- ------------------------------------------------------------------------------
Schering-Plough 1,120,000 59,360
- ------------------------------------------------------------------------------
Warner-Lambert 1,100,000 76,312
- ------------------------------------------------------------------------------
619,734
- ------------------------------------------------------------------------------
<PAGE>
Health Care Services 2.3%
Aetna 325,000 29,067
- ------------------------------------------------------------------------------
CIGNA 185,000 16,465
- ------------------------------------------------------------------------------
United HealthCare 1,360,000 85,170
- ------------------------------------------------------------------------------
130,702
- ------------------------------------------------------------------------------
Miscellaneous Consumer Products 3.4%
Colgate-Palmolive 200,000 $ 19,750
- ------------------------------------------------------------------------------
Hasbro 1,060,000 29,614
- ------------------------------------------------------------------------------
Mattel 860,000 22,736
- ------------------------------------------------------------------------------
Newell Rubbermaid 250,000 11,625
- ------------------------------------------------------------------------------
NIKE (Class B) 550,000 34,822
- ------------------------------------------------------------------------------
Philip Morris 1,180,000 47,421
- ------------------------------------------------------------------------------
Procter & Gamble 340,000 30,345
- ------------------------------------------------------------------------------
196,313
- ------------------------------------------------------------------------------
Total Consumer Nondurables 1,112,716
- ------------------------------------------------------------------------------
<PAGE>
=CONSUMER=SERVICES==14.8%=====================================================
General Merchandisers 2.1%
Dayton Hudson 340,000 22,100
- ------------------------------------------------------------------------------
Saks * 820,000 23,677
- ------------------------------------------------------------------------------
Wal-Mart 1,420,000 68,515
- ------------------------------------------------------------------------------
Warnaco Group (Class A) 300,000 8,025
- ------------------------------------------------------------------------------
122,317
- ------------------------------------------------------------------------------
Specialty Merchandisers 4.5%
CVS 1,120,524 56,867
- ------------------------------------------------------------------------------
Federated Department Stores * 140,000 7,411
- ------------------------------------------------------------------------------
Home Depot 880,000 56,705
- ------------------------------------------------------------------------------
Kroger * 2,240,000 62,580
- -----------------------------------------------------------------------------
Safeway * 1,540,000 76,230
- -----------------------------------------------------------------------------
259,793
- -----------------------------------------------------------------------------
Entertainment and Leisure 2.2%
Carnival (Class A) 370,000 17,945
- -----------------------------------------------------------------------------
Disney 250,000 7,703
- -----------------------------------------------------------------------------
McDonald's 1,012,000 41,808
- -----------------------------------------------------------------------------
MediaOne * 820,000 60,988
- -----------------------------------------------------------------------------
128,444
- -----------------------------------------------------------------------------
<PAGE>
Media and Communications 6.0%
CBS * 1,700,000 73,844
- -----------------------------------------------------------------------------
Clear Channel Communications * 590,000 40,673
- -----------------------------------------------------------------------------
Fox Entertainment Group (Class A) * 1,270,000 34,211
- -----------------------------------------------------------------------------
Infinity Broadcasting (Class A) * 1,300,000 38,675
- -----------------------------------------------------------------------------
Time Warner 1,090,000 80,115
- -----------------------------------------------------------------------------
Tribune 385,000 33,543
- -----------------------------------------------------------------------------
Vodafone ADR 235,000 $ 46,295
- -----------------------------------------------------------------------------
347,356
- -----------------------------------------------------------------------------
Total Consumer Services 857,910
- -----------------------------------------------------------------------------
=CONSUMER=CYCLICALS==2.7%====================================================
Automobiles and Related 0.6%
SPX * 400,000 33,400
- -----------------------------------------------------------------------------
33,400
- -----------------------------------------------------------------------------
Building and Real Estate 0.5%
Starwood Hotels & Resorts, REIT 1,060,000 32,396
- -----------------------------------------------------------------------------
32,396
- -----------------------------------------------------------------------------
<PAGE>
Miscellaneous Consumer Durables 1.6%
Corning 610,000 42,776
- -----------------------------------------------------------------------------
Eastman Kodak 250,000 16,938
- -----------------------------------------------------------------------------
Masco 1,120,000 32,340
- -----------------------------------------------------------------------------
92,054
- -----------------------------------------------------------------------------
Total Consumer Cyclicals 157,850
- -----------------------------------------------------------------------------
=TECHNOLOGY==16.6%===========================================================
Electronic Components 5.1%
Altera * 550,000 20,230
- ------------------------------------------------------------------------------
EMC * 590,000 32,450
- ------------------------------------------------------------------------------
Intel 1,360,000 80,877
- ------------------------------------------------------------------------------
Linear Technology 200,000 13,463
- ------------------------------------------------------------------------------
Maxim Integrated Products * 550,000 36,575
- ------------------------------------------------------------------------------
Motorola 310,000 29,372
- ------------------------------------------------------------------------------
Texas Instruments 356,000 51,620
- ------------------------------------------------------------------------------
Xilinx * 520,000 29,786
- ------------------------------------------------------------------------------
294,373
- ------------------------------------------------------------------------------
<PAGE>
Electronic Systems 2.8%
Applied Materials * 470,000 34,707
- ------------------------------------------------------------------------------
Hewlett-Packard 730,000 73,365
- ------------------------------------------------------------------------------
Nokia ADR 325,000 29,758
- ------------------------------------------------------------------------------
Solectron * 380,000 25,341
- ------------------------------------------------------------------------------
163,171
- ------------------------------------------------------------------------------
Information Processing 1.1%
Dell Computer * 910,000 33,642
- ------------------------------------------------------------------------------
IBM 262,000 33,863
- ------------------------------------------------------------------------------
67,505
- ------------------------------------------------------------------------------
Office Automation 0.2%
Ceridian * 400,000 $ 13,075
- ------------------------------------------------------------------------------
13,075
- ------------------------------------------------------------------------------
Specialized Computer 0.6%
Sun Microsystems * 475,000 32,731
- ------------------------------------------------------------------------------
32,731
- ------------------------------------------------------------------------------
Telecommunications Equipment 5.0%
Cisco Systems * 1,000,000 64,406
- ------------------------------------------------------------------------------
Lucent Technologies 843,150 56,860
- ------------------------------------------------------------------------------
<PAGE>
MCI WorldCom * 1,650,000 141,951
- ------------------------------------------------------------------------------
Tellabs * 380,000 25,686
- ------------------------------------------------------------------------------
288,903
- ------------------------------------------------------------------------------
Aerospace and Defense 1.8%
AlliedSignal 1,400,000 88,200
- ------------------------------------------------------------------------------
Raytheon (Class B) 210,000 14,779
- ------------------------------------------------------------------------------
102,979
- ------------------------------------------------------------------------------
Total Technology 962,737
- ------------------------------------------------------------------------------
=CAPITAL=EQUIPMENT==5.5%======================================================
Electrical Equipment 4.3%
GE 770,000 87,010
- ------------------------------------------------------------------------------
Tyco International 1,730,331 163,949
- ------------------------------------------------------------------------------
250,959
- ------------------------------------------------------------------------------
Machinery 1.2%
Danaher 1,150,000 66,843
- ------------------------------------------------------------------------------
66,843
- ------------------------------------------------------------------------------
Total Capital Equipment 317,802
- ------------------------------------------------------------------------------
<PAGE>
=BUSINESS=SERVICES=AND=TRANSPORTATION==12.2%
Computer Service and Software 8.4%
America Online * 412,000 45,526
- ------------------------------------------------------------------------------
Automatic Data Processing 1,000,000 44,000
- ------------------------------------------------------------------------------
BMC Software * 1,300,000 70,159
- ------------------------------------------------------------------------------
Compuware * 950,000 30,192
- ------------------------------------------------------------------------------
First Data 1,045,106 51,145
- ------------------------------------------------------------------------------
Galileo International 640,700 34,238
- ------------------------------------------------------------------------------
Microsoft * 1,735,000 156,367
- ------------------------------------------------------------------------------
Oracle * 440,000 16,335
- ------------------------------------------------------------------------------
Parametric Technology * 1,500,000 $ 20,859
- ------------------------------------------------------------------------------
SunGard Data Systems * 500,000 17,250
- ------------------------------------------------------------------------------
486,071
- ------------------------------------------------------------------------------
Distribution Services 0.7%
Cardinal Health 470,630 30,179
- ------------------------------------------------------------------------------
U.S. Foodservice * 300,620 12,814
- ------------------------------------------------------------------------------
42,993
- ------------------------------------------------------------------------------
<PAGE>
Miscellaneous Business Services 3.1%
Cendant * 500,000 10,250
- ------------------------------------------------------------------------------
Equifax 200,000 7,138
- ------------------------------------------------------------------------------
H&R Block 600,000 30,000
- ------------------------------------------------------------------------------
Omnicom 650,000 52,000
- ------------------------------------------------------------------------------
Waste Management 1,450,000 77,937
- ------------------------------------------------------------------------------
177,325
- ------------------------------------------------------------------------------
Total Business Services and Transportation 706,389
=ENERGY==3.0%
Energy Services 0.5%
Halliburton 700,000 31,675
- ------------------------------------------------------------------------------
31,675
- ------------------------------------------------------------------------------
Integrated Petroleum - International 2.5%
BP Amoco ADR 361,000 39,168
- ------------------------------------------------------------------------------
Chevron 416,000 39,598
- ------------------------------------------------------------------------------
Mobil 667,000 66,033
- ------------------------------------------------------------------------------
144,799
- ------------------------------------------------------------------------------
Total Energy 176,474
<PAGE>
=PROCESS=INDUSTRIES==1.1%
Specialty Chemicals 0.3%
Great Lakes Chemical 415,000 19,116
- ------------------------------------------------------------------------------
19,116
- ------------------------------------------------------------------------------
Paper and Paper Products 0.8%
Kimberly-Clark 770,000 43,890
- ------------------------------------------------------------------------------
43,890
- ------------------------------------------------------------------------------
Total Process Industries 63,006
=MISCELLANEOUS==1.2%
Conglomerates 0.2%
Berkshire Hathaway (Class A) * 200 $ 13,780
- ------------------------------------------------------------------------------
13,780
- ------------------------------------------------------------------------------
Other Miscellaneous Common Stocks 1.0% 58,873
- ------------------------------------------------------------------------------
Total Miscellaneous 72,653
- ------------------------------------------------------------------------------
==============================================================================
Total Common Stocks (Cost $4,118,053) 5,669,685
==============================================================================
<PAGE>
=SHORT-TERM=INVESTMENTS==2.8%
Money Market Funds 2.8%
Reserve Investment Fund, 5.05% + # 166,466,524 166,467
Total Short-Term Investments (Cost $166,467) 166,467
=Total=Investments=in=Securities
100.5% of Net Assets (Cost $4,284,520) $ 5,836,152
Other Assets Less Liabilities (31,693)
NET ASSETS $ 5,804,459
Net Assets Consist of:
Accumulated net investment income -
net of distributions $ 4,884
Accumulated net realized gain/loss -
net of distributions 83,538
Net unrealized gain (loss) 1,551,632
Paid-in-capital applicable to 172,712,800
shares of $0.0001 par
value capital stock outstanding; 1,000,000,000
shares authorized 4,164,405
NET ASSETS $ 5,804,459
NET ASSET VALUE PER SHARE $ 33.61
# Seven-day yield
+ Affiliated company
* Non-income producing
ADR American Depository Receipt
CAD Canadian dollar
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Blue Chip Growth Fund
Unaudited
Statement of Operations
In thousands
6 Months
Ended
6/30/99
==Investment=Income==========================================
Income
Dividend $ 21,170
Interest (including $6,912 from
affiliated companies) 6,915
- -------------------------------------------------------------
Total income 28,085
- -------------------------------------------------------------
Expenses
Investment management 15,619
Shareholder servicing 6,878
Prospectus and shareholder reports 297
Registration 261
Custody and accounting 127
Directors 9
Legal and audit 7
Miscellaneous 27
- -------------------------------------------------------------
Total expenses 23,225
Expenses paid indirectly (24)
- -------------------------------------------------------------
Net expenses 23,201
- -------------------------------------------------------------
Net investment income 4,884
<PAGE>
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 75,037
Foreign currency transactions (6)
- -------------------------------------------------------------
Net realized gain (loss) 75,031
Change in net unrealized gain or
loss on securities 408,256
- -------------------------------------------------------------
Net realized and unrealized gain (loss) 483,287
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 488,171
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. Rowe Price Blue Chip Growth Fund
Unaudited
STATEMENT OF CHANGES IN NET ASSETS
In thousands
6 Months Year
Ended Ended
6/30/99 12/31/98
Increase=(Decrease)=in=Net=Assets
Operations
Net investment income $ 4,884 $ 13,909
Net realized gain (loss) 75,031 66,217
Change in net unrealized gain or loss 408,256 754,612
- -------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations 488,171 834,738
- -------------------------------------------------------------------------------
Distributions to shareholders
Net investment income - (15,078)
Net realized gain - (53,457)
- -------------------------------------------------------------------------------
Decrease in net assets from distributions - (68,535)
- -------------------------------------------------------------------------------
Capital share transactions*
Shares sold 1,646,390 1,971,557
Distributions reinvested - 67,284
Shares redeemed (660,236) (819,465)
- -------------------------------------------------------------------------------
Increase (decrease) in net assets
from capital share transactions 986,154 1,219,376
<PAGE>
Net=Assets
Increase (decrease) during period 1,474,325 1,985,579
Beginning of period 4,330,134 2,344,555
End of period $5,804,459 $ 4,330,134
*Share information
Shares sold 52,034 72,851
Distributions reinvested - 2,377
Shares redeemed (20,838) (30,731)
Increase (decrease) in
shares outstanding 31,196 44,497
The accompanying notes are an integral part of these financial statements.
================================================================================
T. Rowe Price Blue Chip Growth Fund
Unaudited June 30, 1999
NOTES TO FINANCIAL STATEMENTS
- -----------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
- ----------------------------------------
T. Rowe Price Blue Chip 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, 1993.
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.
<PAGE>
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.
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.
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains and losses is reflected as a component of such gains and losses.
Other Income and expenses are recorded on the accrual basis. Investment
transactions are accounted for on the trade date. Realized gains and losses are
reported on the identified cost basis. Dividend income and distributions to
shareholders are recorded by the fund on the ex-dividend date. Income and
capital gain distributions are determined in accordance with federal income tax
regulations and may differ from those determined in accordance with generally
accepted accounting principles. Expenses paid indirectly reflect credits earned
on daily, uninvested cash balances at the custodian, used to reduce the fund's
custody charges.
<PAGE>
NOTE 2 - INVESTMENT TRANSACTIONS
- --------------------------------
Purchases and sales of portfolio securities, other than short-term
securities, aggregated $1,993,070,000 and $983,389,000, respectively, for the
six months ended June 30, 1999.
NOTE 3 - FEDERAL INCOME TAXES
- -----------------------------
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company and distribute all of its
taxable income.
At June 30, 1999, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$4,284,520,000. Net unrealized gain aggregated $1,151,632,000 at period-end, of
which $1,573,000,000 related to appreciated investments and $21,368,000 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 $2,828,000 was payable at June 30, 1999. The fee is computed daily and
paid monthly, and consists of an individual fund fee equal to 0.30% of average
daily net assets and a group fee. The group fee is based on the combined assets
of certain mutual funds sponsored by the manager or Rowe Price-Fleming
International, Inc. (the group). The group fee rate ranges from 0.48% for the
first $1 billion of assets to 0.30% for assets in excess of $80 billion. At June
30, 1999, and for the six months then ended, the effective annual group fee rate
was 0.32%. The fund pays a pro-rata share of the group fee based on the ratio of
its net assets to those of the group.
<PAGE>
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 $5,232,000 for the six months
ended June 30, 1999, of which $977,000 was payable at period-end.
Additionally, the fund is one of several T. Rowe Price-sponsored mutual
funds (underlying funds) in which the T. Rowe Price Spectrum Funds (Spectrum)
may invest. Spectrum does not invest in the underlying funds for the purpose of
exercising management or control. Expenses associated with the operation of
Spectrum are borne by each underlying fund to the extent of estimated savings to
it and in proportion to the average daily value of its shares owned by Spectrum,
pursuant to special servicing agreements between and among Spectrum, the
underlying funds, T. Rowe Price, and, in the case of T. Rowe Price Spectrum
International, Rowe Price-Fleming International. Spectrum Growth Fund held
approximately 5.7% of the outstanding shares of the fund at June 30, 1999. For
the six months then ended, the fund was allocated $407,000 of Spectrum expenses,
$99,000 of which was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve Funds
are offered as cash management options only to mutual funds and other accounts
managed by T. Rowe Price and its affiliates and are not available to the public.
The Reserve Funds pay no investment management fees. Distributions from the
Reserve Funds to the fund for the six months ended June 30, 1999, totaled
$6,912,000 and are reflected as interest income in the accompanying Statement of
Operations.
During the six months ended June 30, 1999, the fund, in the ordinary course
of business, placed security purchase and sale orders aggregating $2,028,000
with certain affiliates of the manager and paid commissions of $1,000 related
thereto.
================================================================================
<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 (Registration Mark)
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.**
<PAGE>
INVESTMENT INFORMATION
COMBINED STATEMENT Overview of all your accounts with T. Rowe
Price.
SHAREHOLDER REPORTS Fund managers' reviews of their strategies
and results.
T. ROWE PRICE Report Quarterly investment newsletter discussing
markets and financial strategies.
PERFORMANCE UPDATE Quarterly review of all T. Rowe Price fund
results.
INSIGHTS Educational reports on investment strategies and
financial markets.
INVESTMENT GUIDES Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing,
Personal Strategy Planner, Retirees Financial Guide, and
Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment
Services, Inc., Member NASD/SIPC.
** Based on a January 1999 survey for representative-assisted stock
trades. Services vary by firm, and commissions may vary depending
on size of order.
================================================================================
<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
<PAGE>
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
<PAGE>
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
- ----------------------------------------
<PAGE>
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Closed to new investors.
** Formerly named Florida Insured Intermediate Tax-Free.
*** Formerly named Tax-Free Insured Intermediate Bond.
+ Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
Please call for a prospectus. 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.
===========================================================================
<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
<PAGE>
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 [Registration Mark] From T. Rowe Price
The T. Rowe Price 401(k) Century Plan [Registration Mark] (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
<PAGE>
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.
===========================================================================
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.
<PAGE>
INSIGHTS REPORTS
----------------
GENERAL INFORMATION
The ABCs of Y2K
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
<PAGE>
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.
================================================================================
FOR YIELD, PRICE, LAST
TRANSACTION, CURRENT BALANCE,
OR TO CONDUCT TRANSACTIONS, 24
HOURS, 7 DAYS A WEEK, CALL
TELE*ACCESS [REGISTRATION
MARK:] 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
<PAGE>
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
appropriate to the fund or
funds covered in this report.
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
4200 West Cypress St.
10th Floor
Tampa, FL 33607
4410 ArrowsWest Drive
Colorado Springs, CO 80907
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills, CA 91367
T. Rowe Price Investment Services, Inc., Distributor. F93-051 6/30/99
