<PAGE>
================================================================================
T. Rowe Price
- --------------------------------------------------------------------------------
Annual Report
Blue Chip Growth Fund
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
REPORT HIGHLIGHTS
================================================================================
BLUE CHIP GROWTH FUND
- ---------------------
* As global economic growth accelerated and interest rates rose, technology
stocks rallied while defensive and interest rate-sensitive stocks lagged.
* The fund's 6- and 12-month results were good but trailed the returns of
peers with more exposure to technology, foreign stocks, and certain
cyclical companies.
* Several technology, media, telecommunications, and retail holdings
delivered strong returns.
* Concerns about inflation and higher interest r ates may spur more
volatility, but corporate earnings growth could drive further stock gains.
================================================================================
UPDATES AVAILABLE
- -----------------
For updates on T. Rowe Price funds following the end of each calendar
quarter, please see our Web site at www.troweprice.com.
================================================================================
FELLOW SHAREHOLDERS
- -------------------
A rebound in foreign economies and accelerating U.S. growth drove brisk
appreciation in many sectors, particularly technology stocks. World markets
rallied around a belief that technology, telecommunications, and the Internet
would enable, enhance, and perhaps prolong world growth while limiting
inflation. However, financial markets were sometimes unstable as investors were
periodically vexed by the threat of inflation and the Federal Reserve's three
interest rate hikes.
********************************************************************************
<PAGE>
PERFORMANCE COMPARISON
----------------------
Periods Enhded 12/31/99 6 Months 12 Months
----------------------- -------- ---------
Blue Chip Growth Fund 9.25% 20.00%
S&P500 7.71 21.04
Lipper Large-Cap Core
Funds Average 9.96 22.35
********************************************************************************
In this volatile but favorable environment, your fund's 9.25% six-month
total return surpassed the Standard & Poor's 500 Stock Index and led to a 20%
one-year gain. With this report, we are introducing the fund's new Lipper
category in their revised classification system. Previously, Lipper Inc.
assigned a fund to a category based on its objective as outlined in its
prospectus. The new categories are based on the major characteristics of each
fund's actual portfolio holdings, such as market capitalizatio n, price/earnings
ratios, and other valuation measures. On this basis, Lipper placed your fund
(and many other growth funds) in the Large-Cap Core Funds category. This Lipper
group returned 9.96% over the past six months and 22.35% for the year. These
results are in keeping with, though slightly ahead of, your fund's gains over
the same periods. Technology, foreign, and certain cyclical stocks, which are
held more commonly by our competitors, benefited most from the robust economic
environment, while pharmaceuticals and financials, two large sectors in this
fund, posted mediocre performance.
YEAR-END DISTRIBUTIONS
- ----------------------
On December 14, 1999, your Board of Directors declared an income dividend
of $0.03 per share and a long-term capital gain distribution of $0.33 per share
to shareholders of record on that date. This was paid on December 16. You should
already have received your check or statement reflecting these distributions, as
well as Form 1099-DIV summarizing this information for 1999 tax purposes.
MARKET ENVIRONMENT
- ------------------
During the past six months, U.S. corporations continued to benefit from
strong GDP growth, low inflation, and improvement in many international
economies. Japan and the rest of Asia enjoyed economic and stock market
recoveries, and European markets as a whole also began to improve. These
developments greatly benefited large U.S. firms with global operations, and
added fuel to a longstanding bull market in U.S. equities. The S&P 500 has now
returned more than 20% in each of the last five years, and its compound annual
growth rate N and your fund's N exceeded 28% over that time period.
<PAGE>
Investors have been especially bullish that a technology-led "new economy"
can allow superior economic, corporate, and market growth with only modest
inflation. To date, that belief has been accurate, and we agree there is some
reason for optimism. The Internet will continue to drive sharper price
competition and a dramatic improvement in internal and business-to-business
efficiency. In fact, many large-cap stocks were punished because of a perceived
vulnerability to Internet competition. As the year progressed, many blue chip
companies proved to investors that they, also, were adept at using the Internet
as a marketing and distribution tool as well as a powerful mechanism for
improving internal efficiency.
********************************
. . . It will take time to
fully gauge the long-term
beneficiaries (and casualties)
of the growth of the Internet.
********************************
Nonetheless, there is much in this environment that concerns us. In our
opinion, the striking increase in the value of many technology stocks is
warranted in many cases but has been severely overdone in others. A series of
weak earnings reports early in 2000 led to considerable volatility in tech stock
prices. The real risk is that a normal correction meant to reprice only
unprofitable or speculative issues could lead to a more widespread and
devastating correction in technology stocks and ultimately the entire market. In
addition, it will take time to fully gauge the long-term beneficiaries (and
casualties) of the growth of the Internet.
Inflation is another perplexing issue. During the past spring and summer,
economic data hinted at an increase in inflationary pressure. Unemployment
figures have been persistently low, and the prices of some raw materials
increased. The price of oil, for example, more than doubled from $10 to $25 a
barrel during 1999. Yet actual inflation measures, notably the consumer and
producer price indices, remained subdued. The Fed chose to raise the federal
funds target rate three times for a total of 75 basis points (100 basis points
equal one percent), and the 30-year Treasury bond yield increased from below 5%
to nearly 6.5%.
In this complex (and sometimes confusing) environment, investors reacted by
bidding up the value of technology and some cyclical stocks, which offer the
potential for sharp earnings growth. However, the stocks of more-traditional
growth companies, such as pharmaceuticals, and interest rate-sensitive stocks,
like financials, generally struggled. In other areas, such as the retail and
energy sectors, many stocks performed well but were overshadowed by the
technology bull market. However, we believe that the rules of investing have not
changed. Durable, sustainable earnings and cash-flow growth drives investment
values over the long term.
<PAGE>
PORTFOLIO REVIEW
- ----------------
Although your fund has a considerable stake in technology, its exposure to
the sector is somewhat lower than the average growth fund, and tech holdings
performed particularly well in the second half of 1999. However, we had
meaningful positions in several strong stocks in this sector. ORACLE was the top
contributor to fund performance in the past six months, and we more than tripled
our investment in the company. This supplier of database systems has a powerful
new set of products for Internet applications. Long-time tech holdings
MICROSOFT, CISCO SYSTEMS, SUN MICROSYSTEMS, and INTEL rounded out the top-five
contributors list in the second half.
EMC, the leading maker of data storage systems, as well as semiconductor
firms TEXAS INSTRUMENTS, MAXIM INTEGRATED PRODUCTS, and XILINx also turned in
stellar performances; these are positions we have held for several years. Two
new investments in the software area more than doubled: VERITAS SOFTWARE, a top
provider of software solutions for data storage, and CITRIX SYSTEMS, which makes
very popular programs that allow a remote computer user to access all systems in
a network efficiently. Both companies are solidly profitable and sell to rapidly
growing multi-billion dollar markets.
In the technology area, we have been drawn to companies that are well
positioned to benefit from the Internet but have good growth prospects
independent of the Internet's rise. However, our limited investments directly in
Internet companies were strong contributors in 1999. A substantial position in
AMERICA ONLINE continued to generate superior returns. YAHOO! was added as a
relatively modest investment in the second half but grew to be a more
substantive position by year-end. The company now represents 0.8% of the S&P
500.
[A pie chart based on net assets as of 12/31/99 with the following
segments: Business services and transportation, 15%. Capital equipment, process
industries, and basic materials, 7%. Technology, 19%. Consumer services and
cyclicals, 17%. Financial, 17%. Energy and utilities, 6%. Consumer nondurables,
15%. Reserves, 4%.]
Media and telecommunication stocks were also valuable contributors to
performance. Long-time holding CORNING expanded its position as a leader in the
supply of fiber optic cable and related transmission components, and the stock
was revalued up substantially. NOKIA , the Finnish maker of cellular handsets
and telecom infrastructure, continued to take market share from rivals, and its
stock was a top-10 contributor to second-half performance. NEXTEL, a provider of
personal telecommunication services, used its valuable two-way direct-call
feature to drive very strong subscriber growth among business users. SPRINT,
which agreed to be acquired by MCI WORLDCOM at a premium, did well for a time.
However, the transaction may encounter regulatory impediments, and neither stock
has performed well recently.
<PAGE>
Although rising interest rates dampened the performance of many financial
stocks, some were quite strong throughout the year. CITIGROUP did well in the
six-month period, and was a top contributor for the whole of 1999. AMERICAN
EXPRESS also appeared to be capitalizing on its strong global franchise and
technology prowess to generate new products and, ultimately, growth. MARSH &
MCLENNAN has carefully built leadership positions in insurance risk management
as well as brokerage and investment management with its Putnam subsidiary. The
stock appreciated steadily from our purchase price and surpassed the market
averages by a wide margin.
Entertainment and media also did well despite their below-average
sensitivity to improving foreign economies. Television and radio operator CBS
was again a major contributor to fund performance. Its merger with Viacom should
result in a media powerhouse with dominant positions in radio (Infinity
Broadcasting) and cable programming. CLEAR CHANNEL is another giant in radio; it
sustained a sterling record of operating cash flow growth and strong stock
performance throughout the year. OMNICOM, a provider of advertising services,
continued to expand its Internet-related services and investments, and the stock
was a leader in its industry. COMCAST (an East Coast cable operator and a new
holding) and TRIBUNE (owner of the various newspapers and the WB broadcasting
group) each produced solid gains as their managements built on a history of
creating well-diversified, high-quality media companies.
We would be remiss if we did not recognize the outstanding showing of
several retail holdings. WAL-MART and HOME DEPOT were top contributors to
second-half returns, and DAYTON HUDSON generated solid performance. We were
pleased with these results since many other retailers were mauled by a
perception (in some cases a reality) that their strategy or positioning was no
longer competitive in an Internet world. It is also appropriate to mention GE, a
traditional company that is reinventing itself using the Internet. We added
aggressively to our position in this holding when it declined during the year,
and it turned in a very strong second-half performance, becoming a top
second-half performer.
As always, some stocks produced disappointing results. WASTE MANAGEMENT was
our largest loser in the six-month period. This was remarkable and disappointing
because we cut our position significantly as fundamental problems unfolded at
the company. The problems proved to be pervasive and indicative of poor
operating control and unreliable financial reporting. The company has new
management, and the stock is attractively valued if the estimated earnings power
of the company is correct. However, the company must rebuild reporting systems
and also regain market share and credibility. We will meet with the new
management and monitor the progress of the company, but we eliminated all but a
minor portion of our investment.
*****************************
Ironically, several negative
contributors were companies
that generally had very
solid operating results.
*****************************
<PAGE>
Ironically, several negative contributors were companies that generally had
very solid operating results. TYCO INTERNATIONAL has been a holding for several
years and has performed quite well. The company has been an aggressive acquirer
of various businesses, but it has built leadership roles in fire control systems
and security (ADT), telecommunications equipment (AMP and ATT transoceanic cable
business), and hospital supply (US Surgical and several other businesses). The
company was the subject of significant controversy in the second half as certain
short sellers argued that it had employed aggressive and improper accounting for
acquisitions. The company, its independent accountants, and several external
accountants vigorously defended the propriety of Tyco's accounting. Ultimately
the SEC elected to address the controversy by conducting an informal, voluntary
inquiry that should take several months. The company is cooperating with the SEC
and claims to welcome the chance to settle the issue. However, as might be
expected, the stock performed poorly until rebounding recently. Until the
inquiry is complete, the stock is probably in limbo, and we sold a small amount
of our holding for that reason. However, we think the inquiry will not reveal
major problems, and, perhaps more important, Tyco appears to be gen-erating
excellent growth, is run efficiently, and will generate several billion dollars
of free cash flow this year N it generated $900 million in free cash flow in the
most recent quarter alone. Consequently, while respectful of the pain that
accounting controversy can bring, we want to maintain a meaningful position in
Tyco.
Three more major losers were FREDDIE MAC, SAFEWAY, and KROGER. Freddie Mac
produced substantial losses for the fund because it was a large position hurt
badly by the increase in interest rates in 1999. However, this company N a
favorite of Warren Buffet N has been a significant holding of the fund since
inception in 1993. It and Fannie Mae form an oligopoly in the
mortgage-securitization industry. While both companies are plagued from time to
time by interest rate and political concerns, they generate consistent
double-digit earnings growth and greater than 20% return on equity. We have
invested in both stocks before when they were out of favor with ultimately good
results. In our view, now is a good time to go against the crowd.
Safeway and Kroger are leading supermarket chains, and while we are not as
confident that food retailing is a great growth business, we have seen returns
(and growth) steadily improve. These companies, and drugstores like CVS, have
been punished because investors have preferred more cyclical investments and
have feared that Internet-based businesses would take away significant market
share. Safeway and Kroger (and CVS, for that matter) have an outstanding record
of earnings growth and stock performance for much of the 1990s. We are confident
that these companies will not only deal with the Internet but will ultimately
use it and other competitive weapons to continue to thrive.
STRATEGY
- --------
Our investment strategy continues 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 received
was invested opportunistically in existing holdings. For example, additions to
Microsoft, Sprint, FIRSTAR, America Online, DELL COMPUTER, WARNER-LAMBERT,
KIMBERLY CLARK, and GE were significant enough to be included in the 10-largest
purchases list for the past six months.
<PAGE>
However, among our major purchases we did establish two new positions.
COMPUTER ASSOCIATES is a leading provider of computer software and services. It
has a solid long-term growth record and generates substantial cash flow which it
has used to make acquisitions. Perhaps more important, the company (along with
Oracle) is well positioned to benefit from the growth of the Internet and
related electronic commerce.
ROYAL DUTCH PETROLEUM was also a major purchase. The company is a blue chip
energy firm with perhaps the best reserves and long-term operating results in
the sector. It is now restructuring to eliminate lower-return activities --
something it has not traditionally done -- and has a renewed, comprehensive
focus on efficiency. We have learned from our investments in giants EXXON MOBIL
and BRITISH PETROLEUM that when a management team becomes serious about
improving efficiency and returns, it can yield powerful results -- particularly
in an environment of stronger energy prices.
OUTLOOK
- -------
As outlined in the Market Environment section, the market faces several
challenges, including high valuations and an uncertain business and inflation
environment. However, risk also creates substantial opportunity. In general, we
expect corporate earnings to be even stronger than our fairly optimistic
projections. In addition, the rotation toward high-growth and technology stocks
has created interesting values in some high-quality traditional growth stocks.
********************************
In general, we expect corporate
earnings to be even stronger
than our fairly optimistic
projections.
********************************
As always, we will try to limit the time spent on economic prediction and
focus our energy on finding blue chip companies with leading market positions,
seasoned management, and strong financial fundamentals. This is the area where
we have some expertise and feel we can add the most value. For example, although
pharmaceutical stocks have underperformed in the last six months, many of them
still have solid business models and are growth stocks worthy of ownership. If
we can buy or hold them when others are selling due to concerns unrelated to the
companies, we should be able to add to performance over time.
Currently, we see several reasons that the outlook for U.S. stocks and your
fund remains favorable:
* Inflation and interest rate data are positive. Despite widespread concern
about the economic boom and the potential for inflation, actual data
suggest that the economy is growing moder ately and that the Fed has been
effective in keeping inflation under control. On balance, we believe that
inflation and interest rates will increase but at a manageable pace.
* Earnings growth continues to be very strong at many high- quality U.S.
companies, and the valuations of selected companies remain reasonable.
<PAGE>
* Our investment universe offers investors top-notch, entrepreneurial
management that prioritizes shareholder interests, as well as sound
business models that have proved very profitable to date.
* Many of our holdings generate significant free cash flow that has been used
to repurchase shares or make acquisitions in a manner that benefits
shareholders. This attribute of the companies in your fund may prove
particularly advantageous in a challenging market environment.
We believe we can enhance returns and lower risk over time by investing in
"all season" growth companies -- ones that can generate earnings growth
regardless of the economic or interest rate environment N and by striving to buy
such companies at reasonable valuations. We appreciate your continued support in
this endeavor.
Respectfully submitted,
/s/
Larry J. Puglia
President and Chairman of the Investment Advisory Committee
January 19, 2000
================================================================================
T. Rowe Price Blue Chip Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
TWENTY-FIVE LARGEST HOLDINGS
- ----------------------------
Percent of
Net Assets
12/31/99
- --------------------------------------------------------------------------------
Microsoft 3.9%
- --------------------------------------------------------------------------------
Citigroup 3.1
- --------------------------------------------------------------------------------
GE 2.4
- --------------------------------------------------------------------------------
Cisco Systems 2.1
- --------------------------------------------------------------------------------
Freddie Mac 2.0
- --------------------------------------------------------------------------------
Tyco International 2.0
- --------------------------------------------------------------------------------
Intel 1.8
- --------------------------------------------------------------------------------
Wal-Mart 1.8
- --------------------------------------------------------------------------------
Warner-Lambert 1.8
- --------------------------------------------------------------------------------
<PAGE>
CBS 1.8
- --------------------------------------------------------------------------------
MCI WorldCom 1.7
- --------------------------------------------------------------------------------
Oracle 1.6
- --------------------------------------------------------------------------------
America Online 1.6
- --------------------------------------------------------------------------------
Home Depot 1.6
- --------------------------------------------------------------------------------
Corning 1.4
- --------------------------------------------------------------------------------
Bristol-Myers Squibb 1.4
- --------------------------------------------------------------------------------
Wells Fargo 1.3
- --------------------------------------------------------------------------------
Time Warner 1.3
- --------------------------------------------------------------------------------
Dell Computer 1.3
- --------------------------------------------------------------------------------
American Express 1.2
- --------------------------------------------------------------------------------
Exxon Mobil 1.2
- --------------------------------------------------------------------------------
Kimberly-Clark 1.2
- --------------------------------------------------------------------------------
Nokia 1.2
- --------------------------------------------------------------------------------
Fannie Mae 1.2
- --------------------------------------------------------------------------------
Lucent Technologies 1.1
- --------------------------------------------------------------------------------
Total 43.0%
Note: Table excludes reserves.
================================================================================
T. Rowe Price Blue Chip Growth Fund
- --------------------------------------------------------------------------------
PORTFOLIO HIGHLIGHTS
- --------------------
MAJOR PORTFOLIO CHANGES
- -----------------------
Listed in descending order of size
6 Months Ended 12/31/99
TEN LARGEST PURCHASES
- ---------------------
Microsoft
Computer Associates *
Sprint
FirStar
Royal Dutch Petroleum *
America Online
Dell Computer
Warner-Lambert
Kimberly-Clark
GE
<PAGE>
TEN LARGEST SALES
- -----------------
Honeywell International
Bank of America
BMCSoftware
SPX**
Biogen
MCIWorldCom
H&RBlock **
Compuware **
Cardinal Health **
Sun Microsystems
* Position added
** Position eliminated
================================================================================
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 benchmarks, which may include a
broad-based market index and a peer group average or index. Market indexes do
not include expenses, which are deducted from fund returns as well as mutual
fund averages and indexes.
*******************************
SEC Chart shown here; as of 12/31/99 Blue Chip Growth Fund $40,039; S&P 500
$53,278.
*******************************
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 12/31/99 1 Year 3 Years 5 Years Inception Date
- ---------------------- ------ ------- ------- --------- ----
Blue Chip Growth Fund 20.00% 25.40% 28.28% 23.78% 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
- -----------------------------------
Financimal Highlights For a share outstanding throughout each period
- --------------------------------------------------------------------------------
Year
Ended
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
NET ASSET VALUE
- ---------------
Beginning of period $ 30.60 $ 24.17 $ 19.06 $ 15.09 $ 11.11
- --------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.03 0.11 0.13 0.14 0.16*
Net realized and
unrealized gain (loss) 6.07 6.82 5.12 4.05 4.05
- --------------------------------------------------------------------------------
Total from
investment activities 6.10 6.93 5.25 4.19 4.21
- --------------------------------------------------------------------------------
Distributions
Net investment income (0.03) (0.11) (0.12) (0.14) (0.15)
Net realized gain (0.33) (0.39) (0.02) (0.08) (0.08)
- --------------------------------------------------------------------------------
Total distributions (0.36) (0.50) (0.14) (0.22) (0.23)
- --------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 36.34 $ 30.60 $ 24.17 $ 19.06 $ 15.09
==Ratios/Supplemental=Data======================================================
Total return** 20.00% 28.84% 27.56% 27.75% 37.90%*
- --------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.91% 0.91% 0.95% 1.12% 1.25%*
- --------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 0.10% 0.43% 0.86% 0.87% 1.27%*
- --------------------------------------------------------------------------------
Portfolio turnover rate 41.3% 34.5% 23.7% 26.3% 38.1%
- --------------------------------------------------------------------------------
Net assets, end of period
(in millions) $ 6,709 $ 4,330 $ 2,345 $ 540 $ 146
- --------------------------------------------------------------------------------
** 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
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE BLUE CHIP GROWTH FUND
- ----------------------------------- December 31, 1999
STATEMENT OF NET ASSETS
- -----------------------
Shares Value
In thousands
Common=Stocks==96.5%
FINANCIAL==17.1%================================================================
Bank and Trust 5.3%
Bank of America 470,000 $ 23,588
- --------------------------------------------------------------------------------
Bank of New York 1,700,000 68,000
- --------------------------------------------------------------------------------
Chase Manhattan 520,000 40,397
- --------------------------------------------------------------------------------
FirStar 2,200,000 46,475
- --------------------------------------------------------------------------------
Mellon Financial 1,750,000 59,609
- --------------------------------------------------------------------------------
State Street 332,000 24,257
- --------------------------------------------------------------------------------
Wells Fargo 2,230,000 90,176
- --------------------------------------------------------------------------------
352,502
- --------------------------------------------------------------------------------
Insurance 2.1%
ACE Limited 1,150,000 19,191
- --------------------------------------------------------------------------------
American General 100,000 7,587
- --------------------------------------------------------------------------------
American International Group 300,000 32,437
- --------------------------------------------------------------------------------
Marsh & McLennan 575,000 55,020
- --------------------------------------------------------------------------------
UnumProvident 40,000 1,283
- --------------------------------------------------------------------------------
XL Capital (Class A) 550,000 28,531
- --------------------------------------------------------------------------------
144,049
- --------------------------------------------------------------------------------
<PAGE>
Financial Services 9.7%
American Express 500,000 83,125
- --------------------------------------------------------------------------------
Associates First Capital (Class A) 828,500 22,732
- --------------------------------------------------------------------------------
Capital One Financial 1,100,000 53,006
- --------------------------------------------------------------------------------
Citigroup 3,740,748 207,845
- --------------------------------------------------------------------------------
Fannie Mae 1,250,000 78,047
- --------------------------------------------------------------------------------
Freddie Mac 2,875,000 135,305
- --------------------------------------------------------------------------------
Goldman Sachs Group 121,300 11,425
- --------------------------------------------------------------------------------
Morgan Stanley Dean Witter 406,000 57,957
- --------------------------------------------------------------------------------
649,442
- --------------------------------------------------------------------------------
Total Financial 1,145,993
- --------------------------------------------------------------------------------
UTILITIES==2.7%=================================================================
Telephone 2.7%
ALLTEL 340,000 28,114
- --------------------------------------------------------------------------------
AT&T Liberty Group Media * 550,000 31,212
- --------------------------------------------------------------------------------
GTE 220,000 15,524
- --------------------------------------------------------------------------------
Nextel Communications * 300,000 30,928
- --------------------------------------------------------------------------------
SBC Communications 485,000 $ 23,644
- --------------------------------------------------------------------------------
Sprint 770,000 51,830
- --------------------------------------------------------------------------------
Total Utilities 181,252
- --------------------------------------------------------------------------------
CONSUMER=NONDURABLES==15.5%=====================================================
Cosmetics 0.0%
Gillette 10,000 412
- --------------------------------------------------------------------------------
412
- --------------------------------------------------------------------------------
Beverages 1.0%
Coca-Cola 300,000 17,475
- --------------------------------------------------------------------------------
PepsiCo 1,420,000 50,055
- --------------------------------------------------------------------------------
67,530
- --------------------------------------------------------------------------------
Food Processing 0.0%
Quaker Oats 40,000 2,625
- --------------------------------------------------------------------------------
2,625
- --------------------------------------------------------------------------------
<PAGE>
Hospital Supplies/Hospital Management 0.6%
Baxter International 590,000 37,059
- --------------------------------------------------------------------------------
Medtronic 50,000 1,822
- --------------------------------------------------------------------------------
38,881
- --------------------------------------------------------------------------------
Pharmaceuticals 10.0%
American Home Products 1,100,000 43,381
- --------------------------------------------------------------------------------
Amgen * 575,000 34,518
- --------------------------------------------------------------------------------
Biogen * 50,000 4,223
- --------------------------------------------------------------------------------
Bristol-Myers Squibb 1,450,000 93,072
- --------------------------------------------------------------------------------
Eli Lilly 725,000 48,213
- --------------------------------------------------------------------------------
Genetech * 370,000 49,765
- --------------------------------------------------------------------------------
Johnson & Johnson 740,000 68,912
- --------------------------------------------------------------------------------
Merck 1,135,000 76,116
- --------------------------------------------------------------------------------
Pfizer 2,270,000 73,633
- --------------------------------------------------------------------------------
Schering-Plough 1,400,000 59,063
- --------------------------------------------------------------------------------
Warner-Lambert 1,450,000 118,809
- --------------------------------------------------------------------------------
669,705
- --------------------------------------------------------------------------------
Health Care Services 1.9%
CIGNA 100,000 8,056
- --------------------------------------------------------------------------------
IMS Health 700,000 19,031
- --------------------------------------------------------------------------------
United HealthCare 1,300,000 69,063
- --------------------------------------------------------------------------------
Wellpoint Health Networks * 440,000 29,013
- --------------------------------------------------------------------------------
125,163
- --------------------------------------------------------------------------------
Miscellaneous Consumer Products 2.0%
Colgate-Palmolive 425,000 $ 27,625
- --------------------------------------------------------------------------------
Hasbro 500,000 9,531
- --------------------------------------------------------------------------------
NIKE (Class B) 520,000 25,772
- --------------------------------------------------------------------------------
Philip Morris 1,150,000 26,666
- --------------------------------------------------------------------------------
Procter & Gamble 430,000 47,112
- --------------------------------------------------------------------------------
136,706
- --------------------------------------------------------------------------------
Total Consumer Nondurables 1,041,022
- --------------------------------------------------------------------------------
<PAGE>
CONSUMER=SERVICES==14.5%========================================================
General Merchandisers 2.4%
Dayton Hudson 600,000 44,063
- --------------------------------------------------------------------------------
Wal-Mart 1,745,000 120,623
- --------------------------------------------------------------------------------
164,686
- --------------------------------------------------------------------------------
Specialty Merchandisers 3.8%
CVS 1,200,000 47,925
- --------------------------------------------------------------------------------
Home Depot 1,522,500 104,386
- --------------------------------------------------------------------------------
Kroger * 2,200,000 41,525
- --------------------------------------------------------------------------------
Safeway * 1,790,000 63,657
- --------------------------------------------------------------------------------
257,493
- --------------------------------------------------------------------------------
Entertainment and Leisure 1.7%
Carnival (Class A) 100,000 4,781
- --------------------------------------------------------------------------------
Disney 100,000 2,925
- --------------------------------------------------------------------------------
McDonald's 820,000 33,056
- --------------------------------------------------------------------------------
MediaOne Group * 935,000 71,820
- --------------------------------------------------------------------------------
112,582
- --------------------------------------------------------------------------------
Media and Communications 6.6%
CBS * 1,850,000 118,284
- --------------------------------------------------------------------------------
Clear Channel Communications * 712,000 63,546
- --------------------------------------------------------------------------------
Comcast (Class A Special) 610,000 30,824
- --------------------------------------------------------------------------------
Fox Entertainment Group (Class A) * 700,000 17,456
- --------------------------------------------------------------------------------
Infinity Broadcasting (Class A) * 1,180,000 42,701
- --------------------------------------------------------------------------------
Time Warner 1,200,000 86,925
- --------------------------------------------------------------------------------
Tribune 520,000 28,633
- --------------------------------------------------------------------------------
Vodafone Airtouch ADR 1,060,000 52,470
- --------------------------------------------------------------------------------
440,839
- --------------------------------------------------------------------------------
Total Consumer Services 975,600
- --------------------------------------------------------------------------------
<PAGE>
CONSUMER=CYCLICALS==2.4%========================================================
Building and Real Estate 0.3%
Starwood Hotels & Resorts Worldwide, REIT 860,000 $ 20,210
- --------------------------------------------------------------------------------
20,210
- --------------------------------------------------------------------------------
Miscellaneous Consumer Durables 2.1%
Corning 730,000 94,124
- --------------------------------------------------------------------------------
Eastman Kodak 275,000 18,219
- --------------------------------------------------------------------------------
Masco 1,000,000 25,375
- --------------------------------------------------------------------------------
137,718
- --------------------------------------------------------------------------------
Total Consumer Cyclicals 157,928
- --------------------------------------------------------------------------------
TECHNOLOGY==18.5%===============================================================
Electronic Components 6.3%
Altera * 650,000 32,216
- --------------------------------------------------------------------------------
Analog Devices * 40,000 3,720
- --------------------------------------------------------------------------------
EMC * 340,000 37,145
- --------------------------------------------------------------------------------
Intel 1,500,000 123,422
- --------------------------------------------------------------------------------
Maxim Integrated Products * 1,600,000 75,450
- --------------------------------------------------------------------------------
Motorola 300,000 44,175
- --------------------------------------------------------------------------------
Texas Instruments 700,000 67,812
- --------------------------------------------------------------------------------
Xilinx * 880,000 40,013
- --------------------------------------------------------------------------------
423,953
- --------------------------------------------------------------------------------
Electronic Systems 3.8%
Applied Materials * 532,000 67,381
- --------------------------------------------------------------------------------
Hewlett-Packard 560,000 63,805
- --------------------------------------------------------------------------------
Nokia ADR 412,000 78,280
- --------------------------------------------------------------------------------
Solectron * 440,000 41,855
- --------------------------------------------------------------------------------
251,321
- --------------------------------------------------------------------------------
Information Processing 1.4%
Dell Computer * 1,650,000 84,098
- --------------------------------------------------------------------------------
IBM 100,000 10,800
- --------------------------------------------------------------------------------
94,898
- --------------------------------------------------------------------------------
<PAGE>
Office Automation 0.1%
Ceridian * 300,000 6,469
- --------------------------------------------------------------------------------
6,469
- --------------------------------------------------------------------------------
Specialized Computer 0.7%
Sun Microsystems * 640,000 49,540
- --------------------------------------------------------------------------------
49,540
- --------------------------------------------------------------------------------
Telecommunications 5.6%
3Com * 100,000 $ 4,697
- --------------------------------------------------------------------------------
Cisco Systems * 1,330,000 142,435
- --------------------------------------------------------------------------------
Lucent Technologies 1,030,150 77,068
- --------------------------------------------------------------------------------
MCI WorldCom * 2,100,000 111,366
- --------------------------------------------------------------------------------
Tellabs * 200,000 12,831
- --------------------------------------------------------------------------------
Uniphase * 154,000 24,842
- --------------------------------------------------------------------------------
373,239
- --------------------------------------------------------------------------------
Aerospace and Defense 0.6%
Honeywell International 700,000 40,381
- --------------------------------------------------------------------------------
40,381
- --------------------------------------------------------------------------------
Total Technology 1,239,801
- --------------------------------------------------------------------------------
CAPITAL=EQUIPMENT==5.0%=========================================================
Electrical Equipment 4.3%
GE 1,021,000 158,000
- --------------------------------------------------------------------------------
Tyco International 3,400,000 132,175
- --------------------------------------------------------------------------------
290,175
- --------------------------------------------------------------------------------
Machinery 0.7%
Danaher 880,000 42,460
- --------------------------------------------------------------------------------
42,460
- --------------------------------------------------------------------------------
Total Capital Equipment 332,635
- --------------------------------------------------------------------------------
<PAGE>
BUSINESS=SERVICES=AND===========================================================
TRANSPORTATION==15.2%===========================================================
Computer Service and Software 13.3%
America Online * 1,400,000 105,612
- --------------------------------------------------------------------------------
Automatic Data Processing 1,100,000 59,262
- --------------------------------------------------------------------------------
BMC Software * 820,000 65,523
- --------------------------------------------------------------------------------
Citrix Systems * 290,000 35,661
- --------------------------------------------------------------------------------
Computer Associates 860,000 60,146
- --------------------------------------------------------------------------------
First Data 1,150,106 56,715
- --------------------------------------------------------------------------------
Lexmark International Group (Class A) * 140,000 12,670
- --------------------------------------------------------------------------------
Microsoft * 2,270,000 264,952
- --------------------------------------------------------------------------------
Oracle * 970,000 108,670
- --------------------------------------------------------------------------------
Parametric Technology * 1,111,000 30,032
- --------------------------------------------------------------------------------
VERITAS Software * 300,000 $ 42,928
- --------------------------------------------------------------------------------
Yahoo! * 115,000 49,763
- --------------------------------------------------------------------------------
891,934
- --------------------------------------------------------------------------------
Distribution Services 0.1%
U.S. Foodservice * 610,000 10,218
- --------------------------------------------------------------------------------
10,218
- --------------------------------------------------------------------------------
Railroads 0.5%
Kansas City Southern Industries 440,000 32,835
- --------------------------------------------------------------------------------
32,835
- --------------------------------------------------------------------------------
Miscellaneous Business Services 1.3%
Omnicom 730,000 73,000
- --------------------------------------------------------------------------------
United Parcel Service 130,000 8,970
- --------------------------------------------------------------------------------
Waste Management 300,000 5,156
- --------------------------------------------------------------------------------
87,126
- --------------------------------------------------------------------------------
Total Business Services and Transportation 1,022,113
- --------------------------------------------------------------------------------
<PAGE>
ENERGY==3.6%====================================================================
Energy Services 0.4%
Halliburton 700,000 28,175
- --------------------------------------------------------------------------------
28,175
- --------------------------------------------------------------------------------
Integrated Petroleum - International 3.2%
BP Amoco ADR 790,000 46,857
- --------------------------------------------------------------------------------
Chevron 560,000 48,510
- --------------------------------------------------------------------------------
Exxon Mobil 1,030,115 82,989
- --------------------------------------------------------------------------------
Royal Dutch Petroleum ADR 632,000 38,196
- --------------------------------------------------------------------------------
216,552
- --------------------------------------------------------------------------------
Total Energy 244,727
- --------------------------------------------------------------------------------
PROCESS=INDUSTRIES==1.4%========================================================
Specialty Chemicals 0.2%
Great Lakes Chemical 400,000 15,275
- --------------------------------------------------------------------------------
15,275
- --------------------------------------------------------------------------------
Paper and Paper Products 1.2%
Kimberly-Clark 1,200,000 78,300
- --------------------------------------------------------------------------------
78,300
- --------------------------------------------------------------------------------
Total Process Industries 93,575
- --------------------------------------------------------------------------------
MISCELLANEOUS==0.6%=============================================================
Berkshire Hathaway (Class A) * 100 $ 5,610
- --------------------------------------------------------------------------------
Other Miscellaneous Common Stocks 35,724
- --------------------------------------------------------------------------------
Total Miscellaneous 41,334
- --------------------------------------------------------------------------------
Total Common Stocks (Cost $4,430,168) 6,475,980
================================================================================
Short-Term=Investments==4.0%====================================================
Money Market Funds 4.0%
Reserve Investment Fund, 6.16% #+ 263,813,513 263,814
- --------------------------------------------------------------------------------
Total Short-Term Investments (Cost $263,814) 263,814
================================================================================
<PAGE>
=Total=Investments=in=Securities================================================
100.5% of Net Assets (Cost $4,693,982) $ 6,739,794
Other Assets Less Liabilities (30,831)
================================================================================
NET ASSETS $ 6,708,963
================================================================================
Net Assets Consist of:
Accumulated net investment income - net
of distributions $ (43)
Accumulated net realized gain/loss - net
of distributions 105,971
Net unrealized gain (loss) 2,045,812
Paid-in-capital applicable to 184,591,935
shares of $0.0001 par value capital stock
outstanding; 1,000,000,000 shares authorized 4,557,223
- --------------------------------------------------------------------------------
NET ASSETS $ 6,708,963
================================================================================
NET ASSET VALUE PER SHARE $ 36.34
================================================================================
# Seven-day yield
+ Affiliated company
* Non-income producing
ADR American Depository Receipt
REIT Real Estate Investment Trust
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE BLUE CHIP GROWTH FUND
- -----------------------------------
STATEMENT OF OPERATIONS
- ----------------------- In thousands
Year
Ended
12/31/99
Investment Income (Loss)
Income
Dividend $ 44,308
Interest (includes $11,567 from affiliated companies) 11,586
- -------------------------------------------------------------------------------
Total income 55,894
- -------------------------------------------------------------------------------
Expenses
Investment management 34,536
Shareholder servicing 14,721
Prospectus and shareholder reports 501
Registration 439
Custody and accounting 257
Legal and audit 18
Directors 17
Miscellaneous 37
- -------------------------------------------------------------------------------
Total expenses 50,526
Expenses paid indirectly (72
- -------------------------------------------------------------------------------
Net expenses 50,454
- -------------------------------------------------------------------------------
Net investment income (loss) 5,440
- -------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 157,760
Foreign currency transactions (10
- -------------------------------------------------------------------------------
Net realized gain (loss) 157,750
Change in net unrealized gain or loss on securities 902,436
- -------------------------------------------------------------------------------
Net realized and unrealized gain (loss) 1,060,186
- -------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,065,626
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE BLUE CHIP GROWTH FUND
- -----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------- In thousands
Year
Ended
12/31/99 12/31/98
-------- --------
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ 5,440 $ 13,909
Net realized gain (loss) 157,750 66,217
Change in net unrealized gain or loss 902,436 754,612
- --------------------------------------------------------------------------------
Increase (decrease) in net assets
from operations 1,065,626 834,738
- --------------------------------------------------------------------------------
Distributions to shareholders
Net investment income (5,483) (15,078)
Net realized gain (60,286) (53,457)
- --------------------------------------------------------------------------------
Decrease in net assets from distributions (65,769) (68,535)
- --------------------------------------------------------------------------------
Capital share transactions *
Shares sold 2,780,647 1,971,557
Distributions reinvested 64,447 67,284
Shares redeemed (1,466,122) (819,465)
- --------------------------------------------------------------------------------
Increase (decrease) in net assets from capital
share transactions 1,378,972 1,219,376
- --------------------------------------------------------------------------------
Net Assets
Increase (decrease) during period 2,378,829 1,985,579
Beginning of period 4,330,134 2,344,555
- --------------------------------------------------------------------------------
End of period $ 6,708,963 $ 4,330,134
================================================================================
* Share information
Shares sold 86,086 72,851
Distributions reinvested 1,870 2,377
Shares redeemed (44,881) (30,731)
- --------------------------------------------------------------------------------
Increase (decrease) in shares outstanding 43,075 44,497
The accompanying notes are an integral part of these financial statements.
================================================================================
<PAGE>
T. ROWE PRICE BLUE CHIP GROWTH FUND
- ----------------------------------- December 31, 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.
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.
Assets and liabilities for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by or under the supervision of the officers of the
fund, as authorized by the Board of Directors.
Affiliated Companies As defined by the Investment Company Act of 1940, an
affiliated company is one in which the fund owns at least 5% of the outstanding
voting securities.
Currency Translation Assets and liabilities are translated into U.S.
dollars at the prevailing exchange rate at the end of the reporting period.
Purchases and sales of securities and income and expenses are translated into
U.S. dollars at the prevailing exchange rate on the dates of such transactions.
The effect of changes in foreign exchange rates on realized and unrealized
security gains and losses is reflected as a component of such gains and losses.
Other Income and expenses are recorded on the accrual basis.
Investment transactions are accounted for on the trade date. Realized gains
and losses are reported on the identified cost basis. Dividend income and
distributions to shareholders are recorded by the fund on the ex-dividend date.
Income and capital gain distributions are determined in accordance with federal
income tax regulations and may differ from those determined in accordance with
generally accepted accounting principles. Expenses paid indirectly reflect
credits earned on daily uninvested cash balances at the custodian and are used
to reduce the fund's custody charges.
<PAGE>
NOTE 2 - INVESTMENT TRANSACTIONS
- --------------------------------
Purchases and sales of portfolio securities, other than short-term
securities, aggregated $3,450,972,000 and $2,211,892,000, respectively, for the
year ended December 31, 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 December 31, 1999, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$4,693,982,000. Net unrealized gain aggregated $2,045,812,000 at period-end, of
which $2,168,839,000 related to appreciated investments and $123,027,000 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 $3,406,000 was payable at December 31, 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 0.295% for assets in excess of $120 billion. At
December 31, 1999, 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 suba ccounting and recordkeeping services for certain retirement
accounts invested in the fund. The fund incurred expenses pursuant to these
related party agreements totaling approximately $11,505,000 for the year ended
December 31, 1999, of which $1,069,000 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 4.3% of the outstanding shares of the fund at December 31, 1999.
For the year then ended, the fund was allocated $745,000 of Spectrum expenses,
$93,000 of which was payable at period-end.
<PAGE>
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, 1999, totaled
$11,567,000 and are reflected as interest income in the accompanying Statement
of Operations.
During the year ended December 31, 1999, the fund, in the ordinary course
of business, placed security purchase and sale orders aggregating $5,122,000
with certain affiliates of the manager and paid commissions of $5,000 related
thereto.
================================================================================
T. ROWE PRICE BLUE CHIP GROWTH FUND
- -----------------------------------
Report of Independent Accountants
To the Board of Directors and Shareholders of
T. Rowe Price Blue Chip 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 Blue Chip Growth Fund, Inc. (the "Fund") at December 31, 1999, 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
accounting principles generally accepted in the United States. 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 auditing
standards generally accepted in the United States, 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
stateme nts, 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, 1999 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 20, 2000
================================================================================
<PAGE>
T. ROWE PRICE BLUE CHIP GROWTH FUND
- -----------------------------------
Tax Information (Unaudited) for the Tax Year Ended 12/31/99
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 include $60,286,000 from
long-term capital gains, subject to the 20% rate gains category.
For corporate shareholders, $19,483,000 of the fund's distributed income
and short-term capital gains qualified for the dividends-received deduction.
================================================================================
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 [RegistrationMark] 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 September 1999 survey for representative-assisted
stock trades. Services vary by firm, and commissions may vary
depending on size of order.
================================================================================
T. Rowe Price Mutual Funds
- --------------------------
STOCK FUNDS
- -----------
DOMESTIC
- --------
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500 Extended Equity Market Index Financial Services Growth & Income
Growth Stock Health Sciences Media & Telecommunications Mid-Cap Growth Mid-Cap
Value New America Growth New Era New Horizons* Real Estate Science & Technology
Small-Cap Stock Small-Cap Value Spectrum Growth Tax-Efficient Growth Total
Equity Market Index Value <PAGE>
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
<PAGE>
MONEY MARKET FUNDS
- ------------------
TAXABLE
- -------
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
TAX-FREE
- --------
California Tax-Free Money
New York Tax-Free Money
Summit Municipal Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
- -------------------
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
- ---------------------
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Closed to new investors.
Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in the
funds.
Please call for a prospectus. 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>
FOR FUND AND ACCOUNT INFORMATION OR TO CONDUCT TRANSACTIONS, 24 HOURS, 7 DAYS A
WEEK By touch-tone telephone TELE*ACCESS 1-800-638-2587 By Account Access on the
Internet WWW.TROWEPRICE.COM/ACCESS
FOR ASSISTANCE
WITH YOUR EXISTING
FUND ACCOUNT, CALL:
Shareholder Service Center
1-800-225-5132
TO OPEN A BROKERAGE ACCOUNT
OR OBTAIN INFORMATION, CALL:
1-800-638-5660
INTERNET ADDRESS:
www.troweprice.com
PLAN ACCOUNT LINES FOR RETIREMENT
PLAN PARTICIPANTS:
The appropriate 800 number appears on
your retirement account statement.
T. Rowe Price Associates
100 East Pratt Street
Baltimore, Maryland 21202
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.
WALK-IN INVESTOR CENTERS:
For directions, call 1-800-225-5132
or visit our Web site
BALTIMORE AREA
DOWNTOWN
101 East Lombard Street
OWINGS MILLS
Three Financial Center
4515 Painters Mill Road
BOSTON AREA
386 Washington Street
Wellesley
COLORADO SPRINGS
4410 ArrowsWest Drive
LOS ANGELES AREA
Warner Center
21800 Oxnard Street, Suite 270
Woodland Hills
TAMPA
4200 West Cypress Street
10th Floor
WASHINGTON, D.C.
900 17th Street N.W.
Farragut Square
T. Rowe Price Investment Services, Inc., Distributor. F93-050 12/31/99
