Annual
Report
Media &
Telecommunications
Fund
December 31, 1999
T. Rowe Price
Report Highlights
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Media & Telecommunications Fund
o Stocks recorded their fifth consecutive year of stellar gains, and media
and telecommunications stocks participated in the powerful advance for
technology.
o The fund posted extraordinary results for 6- and 12-month periods ended
December 31, 1999, nearly doubling in value over the year.
o Heated mergers and acquisitions continued apace with several holdings
involved in deals.
o Industry allocations changed slightly as powerful performance drove up our
technology component.
o A repeat of 1999's gains is unlikely in 2000, but we are optimistic about
the fund's long-term potential.
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
The U.S. stock market recorded its fifth consecutive year of substantial gains,
with the major indices closing at record levels. Consumed by Internet mania and
an insatiable appetite for technology stocks, investors drove the
technology-heavy Nasdaq Composite to an astonishing 85.6% gain for the year.
Media stocks and your fund benefited and provided excellent results for the past
six months and year.
Performance Comparison
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Periods Ended 12/31/99 6 Months 12 Months
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Media & Telecommunications
Fund 48.64% 93.09%
S&P 500 7.71 21.04
Lipper Science & Technology
Funds Average 73.24 134.77
Fund returns far exceeded those of the unmanaged Standard & Poor's 500
Stock Index during the 6- and 12-month periods ended December 31, 1999, but
trailed the returns of the Lipper Science & Technology Funds Average in
both periods. As discussed in past reports, Lipper has placed the fund in
the technology category even though technology stocks ordinarily represent
a quarter or less of fund assets. As a result, our performance often varies
from the Lipper average. This was the case in 1997 when technology stocks
lagged significantly and fund results far surpassed the Lipper average, and
it was true last year when the fund trailed the broader average.
CAPITAL GAIN DISTRIBUTION
Your fund's Board of Directors declared a total capital gain of $3.22 per
share for 1999, of which $2.24 was long term and $0.98 was short term. The
distribution was paid on December 16, 1999, to shareholders of record on
December 14. Your check or statement confirming the distribution was mailed
in early January, and Form 1099-DIV, with complete tax information, was
mailed toward month-end.
MARKET ENVIRONMENT
The amount of capital raised last year in initial public offerings hit a
record $69 billion, far surpassing the $37 billion raised in 1998 and the
previous record of $50 billion set in 1996. Merger and acquisition activity
climbed 7% to $1.75 trillion in the U.S. and doubled in Europe to $1.23
trillion. However, in sharp contrast to the powerful equities market, bonds
experienced their worst year since 1994 with the bellwether 30-year
Treasury falling substantially in price. Factors behind the poor fixed
income market performance include inflation fears related to the strong
U.S. economy, competition for capital from the surging equity markets, and
some early concerns about Year 2000-related disruptions that never
materialized.
Media and telecommunications stocks were nothing short of explosive in
1999, particularly during the second half. After shunning them in August,
investors returned in droves to the media, telecommunications, and
technology sectors. Internet initial public offerings captured headlines
with their eye-popping returns and astronomical valuations. Heated merger
and acquisition activity also played a significant role. Viacom and CBS
announced a $39 billion merger in September, which was followed by the $114
billion marriage between MCI WorldCom and Sprint. These unions were topped
by Vodafone's $125 billion offer for Mannesmann in November. While the
specific factors behind these transactions vary, they all share the central
theme of enabling the participants to prosper in a world where scale and
brand name are keys to success. We exited 1999 on a cautious note.
Valuations are at extreme levels in key growth areas such as technology and
telecommunications. Internet euphoria may be exhilarating because of the
stocks' stellar returns, but it is also disconcerting considering the
sector's unrealistic stock valuations.
STRATEGY REVIEW
The fund's sector allocations changed moderately in the second half. The
percentage of assets in the content sector fell from 26% at the end of June
to 21% at the end of December; distribution stocks decreased from 44% to
40%; technology rose from 18% to 26%; and international holdings were
stable at 6%.
The decline in the content weighting was largely due to the segment's
performance relative to other sectors, as our media and entertainment
holdings were largely unchanged. During the summer swoon in Internet
stocks, we initiated a position in Yahoo!, the leading nonsubscription
Internet portal. We also added to SFX Entertainment, a leading provider of
entertainment such as concerts, off-Broadway theatricals, and motor sports.
Major contributors in the sector included Yahoo! and AT&T Liberty Group
Media. Among the portfolio's laggards were Premier Parks and SFX
Entertainment.
Sector Diversification
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Content 21
Distribution 40
Technology 26
International 6
Other and Reserves 7
Based on net assets as of 12/31/99.
Although distribution holdings fell, we continued to increase exposure to
the growth available through data communications and the deployment of
broadband communications. New positions in this area include Allegiance
Telecom and McLeodUSA, two competitive telecommunications carriers, and
Digex, a provider of Web hosting services. Mergers and acquisitions
continued apace in broadcasting with the completion of the acquisition of
Outdoor Systems by Infinity Broadcasting and the proposed acquisition of
AMFM by Clear Channel Communications. Major contributors to performance in
this segment included cellular services provider Omnipoint, which agreed to
be acquired by VoiceStream; satellite television services provider Pegasus
Communications; and Sprint, which agreed to merge with MCI WorldCom.
The fund's allotment to technology went up because of the sector's
outstanding performance, and also because of some additional purchases.
They included semiconductor manufacturers Analog Devices and Texas
Instruments; networking equipment vendors Nortel Networks and 3Com; and
VERITAS Software, a provider of data management software, which made a
significant contribution to fund results, as did software vendor Oracle.
INVESTMENT OUTLOOK
Given the stunning returns of the past 12 months, we are cautious about
prospects for media and telecommunications stocks in 2000. Trees don't grow
to the sky, and the ground under the Internet world is far from settled.
Electronic commerce, interactive television, and the formation of broadband
communications networks are still in their infancy, but investors have been
anointing winners with little financial justification. In pursuing our
investment objectives, we will continue to look for companies that are best
positioned to benefit from growth in the media and telecommunications
sectors, and we will also attempt to take advantage of corrections to
accumulate potentially rewarding stocks with appealing valuations. While
the returns generated in 1999 are not likely to be repeated, we remain
optimistic about the long-term prospects for the fund. We appreciate your
continuing support and your confidence in T. Rowe Price.
Respectfully submitted,
James S. Riepe
Chairman of the Board of the Media & Telecommunications Fund
Robert N. Gensler
Chairman of the Investment Advisory Committee
January 21, 2000
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Robert N. Gensler was named the new Chairman of the fund's Investment Advisory
Committee and assumed day-to-day responsibility for managing the fund. He
replaced Brian D. Stansky, who stepped down as Chairman of the fund's
Investment Advisory Committee effective January 14, 2000, to pursue interests
outside of T. Rowe Price. We wish Mr. Stansky well in his new endeavors. Mr.
Gensler joined T. Rowe Price in 1993 as an investment analyst with the Equity
Research Division, focusing on the media and telecommunications industries.
Previously, Rob was a specialty situation analyst in Salomon Brothers' risk
arbitrage department. He has an MBA from Stanford, a B.S. in economics from
the University of Pennsylvania's Wharton School, and studied at the London
School of Economics. Mr. Gensler has been a member of the fund's Investment
Advisory Committee working closely with Mr. Stansky.
This updates the Media & Telecommunication Fund's prospectus dated May 1, 1999.
T. Rowe Price Media & Telecommunications Fund
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Portfolio Highlights
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TWENTY-FIVE LARGEST HOLDINGS
Percent of
Net Assets
12/31/99
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Yahoo! 3.5%
AT&T Liberty Group Media 3.4
Sprint/Sprint PCS 3.2
Microsoft 3.0
AMFM 2.7
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Omnipoint 2.6
Oracle 2.4
SFX Entertainment 2.1
Pegasus Communications 2.1
Cisco Systems 2.0
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Dell Computer 1.9
NTL 1.8
CBS 1.7
Cox Communications 1.7
Nokia 1.6
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BMC Software 1.6
PanAmSat 1.6
McLeod USA 1.6
Crown Castle International 1.5
Solectron 1.5
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3Com 1.5
Global Crossing Limited 1.5
Lamar Advertising 1.5
Disney 1.4
Comcast 1.4
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Total 50.8%
Note: Table excludes reserves.
T. Rowe Price Media & Telecommunications Fund
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Portfolio Highlights
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CONTRIBUTIONS TO THE CHANGE IN NET ASSET VALUE PER SHARE
6 Months Ended 12/31/99
Ten Best Contributors
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Omnipoint 109(cents)
Yahoo! * 95
Oracle 75
Pegasus Communications 62
Sprint 51
AT&T Liberty Group Media 48
AMFM 41
Nokia 39
VERITAS Software * 37
McLeod USA * 36
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Total 593(cents)
Ten Worst Contributors
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Premier Parks -11(cents)
Amazon.com *** 8
Penton Media ** 7
SFX Entertainment 6
MCI WorldCom 6
SBC Communications 6
MediaOne Group 5
Fox Entertainment Group 5
Time Warner 4
GTE 4
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Total -62(cents)
12 Months Ended 12/31/99
Ten Best Contributors
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Omnipoint * 127(cents)
Yahoo! * 95
Pegasus Communications 89
Sprint * 82
AT&T Liberty Group Media 79
Oracle * 75
Adobe Systems ** 64
Western Wireless 61
Nokia 56
AMFM 54
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Total 782(cents)
Ten Worst Contributors
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Network Associates ** -41(cents)
Brightpoint ** 19
Sterling Commerce ** 13
Amazon.com *** 8
Electronic Arts 7
Imax 6
NEXTLINK Communications *** 4
SBC Communications 4
Texas Instruments * 3
Fox Entertainment Group 2
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Total -107(cents)
* Position added
** Position eliminated
*** Position added and eliminated
T. Rowe Price Media & Telecommunications Fund
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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.
MEDIA & TELECOMMUNICATIONS FUND
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Lipper
Science & Media &
S&P 500 Technology Telecommunications
Stock Index Funds Average Fund
10/13/93 10.000 10.000 10.000
12/93 10.168 10.186 9.742
12/94 10.302 11.695 9.654
12/95 14.174 16.581 13.833
12/96 17.428 19.651 14.079
12/97 23.243 21.528 18.027
12/98 29.882 32.374 24.362
12/99 36.173 63.082 47.041
Average Annual Compound Total Return
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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
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Media &
Telecommunications Fund 93.09% 49.50% 37.26% 28.29% 10/13/93
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase. Formerly the closed-end New Age Media Fund. Converted to open-end
status on 7/25/97 and operates under a different expense structure.
T. Rowe Price Media & Telecommunications Fund
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Financial Highlights For a share outstanding throughout each period
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Year
Ended
12/31/99 12/31/98 12/31/97 12/31/96 12/31/95
NET ASSET VALUE
Beginning of period $ 22.54 $ 17.40 $ 15.22 $ 17.99 $ 13.44
Investment activities
Net investment
income (loss) (0.05) (0.07) (0.01) (0.11) (0.04)
Net realized and
unrealized gain (loss) 20.72 6.07 4.22 0.36 5.79
Total from
investment activities 20.67 6.00 4.21 0.25 5.75
Distributions
Net investment income -- -- -- -- (0.07)
Net realized gain (3.22) (0.86) (2.05) (3.09) (1.13)
Total distributions (3.22) (0.86) (2.05) (3.09) (1.20)
Share repurchases -- -- 0.02 0.07 --
NET ASSET VALUE
End of Period $ 39.99 $ 22.54 $ 17.40 $ 15.22 $ 17.99
----------------------------------------------------
Ratios/Supplemental Data
Total return (diamond)@ 93.09% 35.14% 28.05% 1.78% 43.29%
Ratio of total expenses
to average net assets 0.93% 1.03% 1.21% 1.22% 1.25%
Ratio of net investment
income (loss) to average
net assets (0.24)% (0.38)% (0.06)% (0.55)% (0.25)%
Portfolio turnover rate 57.6% 48.9% 38.6% 102.9% 118.9%
Net assets, end of period
(in thousands) $930,147 $246,088 $133,913 $222,556 $268,782
(diamond) 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.
@ Based on net asset value, for periods prior and subsequent to
conversion to open-end status on 7/25/97.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Media & Telecommunications Fund
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December 31, 1999
Portfolio of Investments Shares Value
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In thousands
Common Stocks 93.4%
CONTENT 20.6%
America Online * 155,000 $ 11,693
AT&T Liberty Group Media * 550,000 31,212
Disney 450,000 13,163
E-Stamp *+ 242,482 3,219
First Data * 190,000 9,369
Fox Entertainment Group (Class A) * 255,000 6,359
Gannett * 115,000 9,380
Knight-Ridder 100,000 5,950
News ADR 190,000 6,353
Omnicom * 65,000 6,500
Premier Parks * 215,000 6,208
SFX Entertainment (Class A) * 550,000 19,903
Time Warner * 140,000 10,141
Tribune * 150,000 8,259
Wink Communications * 50,000 3,002
Yahoo! * 75,000 32,454
Young & Rubicam * 125,000 8,844
Total Content 192,009
DISTRIBUTION 39.3%
Allegiance Telecom * 115,000 10,566
AMFM * 325,000 25,431
CBS * 250,000 15,984
Clear Channel Communications * 125,000 11,156
Comcast (Class A Special) 250,000 12,633
Cox Communications (Class A) * 300,000 15,450
Crown Castle International * 446,500 14,316
Digex * 130,000 8,905
Global Crossing Limited * 275,000 13,741
GTE * 135,000 9,526
Infinity Broadcasting (Class A) * 326,500 11,815
Lamar Advertising * 225,000 13,605
MCI WorldCom * 187,500 9,943
McLeod USA * 250,000 $ 14,703
MediaOne Group * 125,000 9,602
Omnipoint * 200,000 24,088
PanAmSat * 255,000 15,101
Pegasus Communications * 200,000 19,375
Pinnacle Holdings * 276,000 11,799
PSINet * 200,000 12,369
Qwest Communications International * 225,000 9,668
SBC Communications 200,000 9,750
Sprint * 250,000 16,828
Sprint PCS * 125,000 12,813
Time Warner Telecom (Class A) 200,000 9,956
Tritel * 63,000 1,996
Univision Communications * 70,000 7,153
Western Wireless * 150,000 10,003
Young Broadcasting (Class A) * 148,300 7,559
Total Distribution 365,834
TECHNOLOGY 26.0%
3Com * 300,000 14,091
Analog Devices * 125,000 11,625
BMC Software * 190,000 15,182
Cisco Systems * 175,000 18,741
Computer Associates * 150,000 10,491
Dell Computer * 350,000 17,839
Electronic Arts * 110,000 9,247
EMC * 100,000 10,925
Intuit * 195,000 11,682
Lucent Technologies 125,000 9,352
Maxim Integrated Products * 230,000 10,846
Microsoft * 240,000 28,013
Next Level Communications * 21,000 1,574
Nortel Networks * 95,000 9,595
Oracle * 200,000 22,406
Solectron * 150,000 14,269
Synopsys * 100,000 6,659
Texas Instruments 85,000 8,234
VERITAS Software * 75,000 $ 10,732
Total Technology 241,503
INTERNATIONAL 6.2%
AT & T (Class B) * 275,000 11,052
Imax * 150,000 4,111
KPNQwest * 35,000 2,236
Nokia ADR 80,000 15,200
NTL * 135,000 16,824
Vodafone Airtouch ADR 163,300 8,083
Total International 57,506
Miscellaneous Common Stocks 1.3% 12,318
Total Common Stocks (Cost $497,784) 869,170
Short-Term Investments 10.4%
Money Market Funds 10.4%
Government Reserve
Investment Fund, 4.80% ! 96,260,910 96,261
Total Short-Term Investments (Cost $96,261) 96,261
Total Investments in Securities
103.8% of Net Assets (Cost $594,045) $ 965,431
Other Assets Less Liabilities (35,284)
NET ASSETS $ 930,147
----------
# Seven-day yield
! Affiliated company
+ Securities contain some restrictions as to public resale-total of such
securities at period-end amounts to 0.3% of net assets
* Non-income producing
ADR American Depository Receipt
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Media & Telecommunications Fund
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December 31, 1999
Statement of Assets and Liabilities
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In thousands
Assets
Investments in securities, at value
Affiliated companies (cost $96,261) $ 96,261
Other companies (cost $497,784) 869,170
Total investments in securities 965,431
Other assets 10,073
Total assets 975,504
Liabilities
Total liabilities 45,357
NET ASSETS $ 930,147
----------
Net Assets Consist of:
Accumulated net realized gain/loss
- - net of distributions $ 13,699
Net unrealized gain (loss) 371,386
Paid-in-capital applicable to 23,257,060
shares of $0.0001 par value capital stock
outstanding; 1,000,000,000 shares authorized 545,062
NET ASSETS $ 930,147
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NET ASSET VALUE PER SHARE $ 39.99
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The accompanying notes are an integral part of these financial statements.
T. Rowe Price Media & Telecommunications Fund
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Statement of Operations
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In thousands
Year
Ended
12/31/99
Investment Income (Loss)
Income
Interest (including $2,319
from affiliated companies) $ 2,332
Dividend 899
Total income 3,231
Expenses
Investment management 3,144
Shareholder servicing 923
Custody and accounting 105
Prospectus and shareholder reports 94
Registration 81
Legal and audit 11
Directors 7
Miscellaneous 4
Total expenses 4,369
Expenses paid indirectly (1)
Net expenses 4,368
Net investment income (loss) (1,137)
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 78,879
Foreign currency transactions (45)
Net realized gain (loss) 78,834
Change in net unrealized gain or loss on securities 283,821
Net realized and unrealized gain (loss) 362,655
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 361,518
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The accompanying notes are an integral part of these financial statements.
T. Rowe Price Media & Telecommunications Fund
Statement of Changes in Net Assets
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In thousands
Year
Ended
12/31/99 12/31/98
Increase (Decrease) in Net Assets
Operations
Net investment income (loss) $ (1,137) $ (732)
Net realized gain (loss) 78,834 8,185
Change in net unrealized gain or loss 283,821 44,012
Increase (decrease) in net
assets from operations 361,518 51,465
Distributions to shareholders
Net realized gain (65,787) (9,007)
Capital share transactions *
Shares sold 484,784 143,977
Distributions reinvested 59,343 7,242
Shares redeemed (155,799) (81,502)
Increase (decrease) in net
assets from capital
share transactions 388,328 69,717
Net Assets
Increase (decrease) during period 684,059 112,175
Beginning of period 246,088 133,913
End of period $ 930,147 $ 246,088
-----------------------------
*Share information
Shares sold 15,813 7,065
Distributions reinvested 1,628 364
Shares redeemed (5,100) (4,209)
Increase (decrease) in
shares outstanding 12,341 3,220
The accompanying notes are an integral part of these financial statements.
T. Rowe Price Media & Telecommunications Fund
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December 31, 1999
Notes to Financial Statements
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NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price Media & Telecommunications 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 October
13, 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.
NOTE 2 - INVESTMENT TRANSACTIONS
Purchases and sales of portfolio securities, other than short-term and U.S.
government securities, aggregated $523,464,000 and $251,571,000,
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.
In order for the fund's capital accounts and distributions to shareholders
to reflect the tax character of certain transactions, the following
reclassifications were made during the year ended December 31, 1999. The
results of operations and net assets were not affected by the
increases/(decreases) to these accounts.
---------------------------------------------------------------------------
Undistributed net investment income $1,137,000
Undistributed net realized gain (1,137,000)
At December 31, 1999, the cost of investments for federal income tax
purposes was substantially the same as for financial reporting and totaled
$594,045,000. Net unrealized gain aggregated $371,386,000 at period-end, of
which $372,116,000 related to appreciated investments and $730,000 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 $469,000 was payable at December 31, 1999. The fee is
computed daily and paid monthly, and consists of an individual fund fee
equal to 0.35% of average daily net assets and a group fee. The group fee
is based on the combined assets of certain mutual funds sponsored by the
manager or Rowe Price-Fleming International, Inc. (the group). The group
fee rate ranges from 0.48% for the first $1 billion of assets to 0.295% for
assets in excess of $120 billion. At 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 subaccounting and recordkeeping
services for certain retirement accounts invested in the fund. The fund
incurred expenses pursuant to these related party agreements totaling
approximately $803,000 for the year ended December 31, 1999, of which
$81,000 was payable at period-end.
The fund may invest in the Reserve Investment Fund and Government Reserve
Investment Fund (collectively, the Reserve Funds), open-end management
investment companies managed by T. Rowe Price Associates, Inc. The Reserve
Funds are offered as cash management options only to mutual funds and other
accounts managed by T. Rowe Price and its affiliates and are not available
to the public. The Reserve Funds pay no investment management fees.
Distributions from the Reserve Funds to the fund for the year ended
December 31, 1999, totaled $2,319,000 and are reflected as interest income
in the accompanying Statement of Operations.
T. Rowe Price Media & Telecommunications Fund
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Report of Independent Accountants
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To the Board of Directors and Shareholders of
T. Rowe Price Media & Telecommunications Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, 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 Media & Telecommunications 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
statements, assessing the accounting principles used and significant
estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 1999 by correspondence with the
custodian, provide a reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 20, 2000
T. Rowe Price Media & Telecommunications Fund
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Tax Information (Unaudited) for the Tax Year Ended 12/31/99
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We are providing this information as required by the Internal Revenue Code. The
amounts shown may differ from those elsewhere in this report because of
differences between tax and financial reporting requirements.
The fund's distributions to shareholders included:
o $20,022,000 from short-term capital gains,
o $45,765,000 from long-term capital gains, subject to the 20% rate gains
category.
For corporate shareholders, $788,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
T. Rowe Price Shareholder Services
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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(registered trademark) and
the T. Rowe Price Web site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
Individual Investments Stocks, bonds, options, precious metals, and other
securities at a savings over full-service commission rates.**
INVESTMENT INFORMATION
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund results.
Insights Educational reports on investment strategies and financial markets.
Investment Guides Asset Mix Worksheet, College Planning Kit, Diversifying
Overseas: A Guide to International Investing, Personal Strategy Planner,
Retirees Financial Guide, and Retirement Planning Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price Investment Services,
Inc., Member NASD/SIPC.
** Based on a 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
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STOCK FUNDS
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era
New Horizons*
Real Estate
Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
Tax-Efficient Growth
Total Equity Market Index
Value
International/Global
Emerging Markets Stock
European Stock
Global Stock
International Discovery
International Growth & Income
International Stock
Japan
Latin America
New Asia
Spectrum International
BOND FUNDS
Domestic Taxable
Corporate Income
GNMA
High Yield
New Income
Short-Term Bond
Short-Term U.S. Government
Spectrum Income
Summit GNMA
Summit Limited-Term Bond
U.S. Treasury Intermediate
U.S. Treasury Long-Term
Domestic Tax-Free
California Tax-Free Bond
Florida Intermediate Tax-Free
Georgia Tax-Free Bond
Maryland Short-Term
Tax-Free Bond
Maryland Tax-Free Bond
New Jersey Tax-Free Bond
New York Tax-Free Bond
Summit Municipal Income
Summit Municipal Intermediate
Tax-Free High Yield
Tax-Free Income
Tax-Free Intermediate Bond
Tax-Free Short-Intermediate
Virginia Short-Term
Tax-Free Bond
Virginia Tax-Free Bond
International/Global
Emerging Markets Bond
Global Bond
International Bond
MONEY MARKET FUNDS!
Taxable
Prime Reserve
Summit Cash Reserves
U.S. Treasury Money
Tax-Free
California Tax-Free Money
New York Tax-Free Money
Summit Municipal
Money Market
Tax-Exempt Money
BLENDED ASSET FUNDS
Balanced
Personal Strategy Balanced
Personal Strategy Growth
Personal Strategy Income
Tax-Efficient Balanced
T. ROWE PRICE NO-LOAD
VARIABLE ANNUITY
Equity Income Portfolio
International Stock Portfolio
Limited-Term Bond Portfolio
Mid-Cap Growth Portfolio
New America Growth Portfolio
Personal Strategy Balanced Portfolio
Prime Reserve Portfolio
* Closed to new investors.
! Investments in the funds are not insured or guaranteed by the FDIC or any
other government agency. Although the funds seek to preserve the value of
your investment at $1.00 per share, it is possible to lose money by
investing in the funds.
Please call for a prospectus. 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.
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, Invest with Confidence (registered trademark)
T. Rowe Price Investment Services, Inc., Distributor. F21-050 12/31/99
