PRICE T ROWE CAPITAL OPPORTUNITY FUND INC
497K3B, 2000-04-19
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                                                               April 1, 2000
 FUND PROFILE
T. ROWE PRICE
CapitalOpportunity Fund

 An aggressively managed stock fund seeking superior capital appreciation
 through a flexible investment strategy.
This profile summarizes key information about the fund that is included in the
fund's prospectus. The fund's prospectus includes additional information about
the fund, including a more detailed description of the risks associated with
investing in the fund that you may want to consider before you invest. You may
obtain the prospectus and other information about the fund at no cost by calling
1-800-638-5660, or by visiting our Web site at www.troweprice.com.

TROWEPRICELOGO
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                                                                           1

FUND PROFILE
- ---------------------------------------------------------
 What is the fund's objective?

   The fund seeks superior capital appreciation over time by investing primarily
   in U.S. common stocks.


 What is the fund's principal investment strategy?

   We will invest primarily in the common stocks of U.S. companies that appear
   to offer the best opportunities for capital appreciation at any given time,
   based on the proprietary research of T. Rowe Price. The managers will pursue
   a flexible strategy in the selection of stocks, not limited by any particular
   investment style, industry, or company size. For example, the fund may pursue
   a growth or value approach in selecting investments, or a combination of
   both.

   Drawing on its research, the fund will generally seek to invest in companies:

  . expected to achieve accelerating earnings growth, perhaps due to strong
   demand for their products or services;

  . whose securities appear undervalued based on various measures such as
   earnings, and book value, etc.;

  . undergoing financial restructuring;

  . involved in takeover or arbitrage situations;

  . expected to benefit from evolving market cycles or changing economic
   conditions; or

  . that represent special situations, such as changes in management or
   favorable regulatory developments, which are expected to lead to higher
   earnings and share prices.

   While most assets will be invested in U.S. common stocks, other securities
   may also be purchased, including foreign stocks, futures, and options, in
   keeping with fund objectives.

   The fund may sell securities for a variety of reasons, such as to secure
   gains, limit losses, or redeploy assets into more promising opportunities.

   Further information about the fund's investments, including a review of
   market conditions and fund strategies and their impact on performance, is
   available in the annual and semiannual shareholder reports. To obtain free
   copies of any of these documents, call 1-800-638-5660.


 What are the main risks of investing in the fund?

   As with all equity funds, this fund's share price can fall because of
   weakness in the broad market, a particular industry, or specific holdings.
   The market as a whole can decline for many reasons, including adverse
   political or economic developments here or abroad, changes in investor
   psychology, or heavy institutional selling. The prospects for an industry or
   company may deteriorate
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                                                                               2


                                                                           2

FUND PROFILE
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   because of a variety of factors, including disappointing earnings or changes
   in the competitive environment. In addition, our assessment of companies held
   in the fund may prove incorrect, resulting in losses or poor performance even
   in a rising market. Finally, the fund's investment approach could fall out of
   favor with the investing public, resulting in lagging performance versus
   other types of stock funds.

   The fund's potential investments in growth stocks could result in greater
   volatility because of the generally higher valuations of these stocks. The
   fund's potential use of the value approach carries the risk that the market
   will not recognize a security's intrinsic value for a long time, or that a
   stock judged to be undervalued may actually be appropriately priced. Small
   and medium-sized companies held by the fund should generally be more volatile
   than larger companies. Also, there is no guarantee that the fund's flexible
   approach will succeed.

   To the extent that the fund invests in foreign stocks, it is also subject to
   the risk that some holdings may lose value because of declining foreign
   currencies or adverse political or economic events overseas. If the fund uses
   futures and options, it is exposed to additional volatility and potential
   losses.

   As with any mutual fund, there can be no guarantee the fund will achieve its
   objective.


   3 The fund's share price may decline, so when you sell your shares, you may
     lose money. An investment in the fund is not a deposit of a bank and is not
     insured or guaranteed by the Federal Deposit Insurance Corporation or any
     other government agency.


 How can I tell if the fund is appropriate for me?

   Consider your investment goals, your time horizon for achieving them, and
   your tolerance level for risk. If you can accept the greater risk of
   investing in an aggressively managed fund in an effort to achieve superior
   capital appreciation, the fund may be an appropriate part of your overall
   investment strategy. The fund should not represent your complete investment
   program or be used for short-term trading purposes.

   The fund can be used in both regular and tax-deferred accounts, such as IRAs.


   3 Equity investors should have a long-term investment horizon and be willing
     to wait out bear markets.
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                                                                           3

FUND PROFILE
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 How has the fund performed in the past?

   The bar chart and the average annual total return table indicate risk by
   illustrating how much returns can differ from one year to the next. The
   fund's past performance is no guarantee of its future returns.

   The fund can also experience short-term performance swings, as shown by the
   best and worst calendar quarter returns during the years depicted in the
   chart.
LOGO


<TABLE>
<CAPTION>
                    Calendar Year Total Returns
            "95"      "96"      "97"      "98"      "99"
 ----------------------------------------------------------------
 <S>      <C>       <C>       <C>       <C>       <C>       <S>
           46.51     16.76     15.87     14.70
                                                  11.50
 ----------------------------------------------------------------
</TABLE>



          Quarter ended              Total return

 Best quarter                           12/31/98 21.97%

 Worst quarter                           9/30/98 -18.00%



<TABLE>
 Table 1  Average Annual Total Returns
<CAPTION>
                                             Periods ended 3/31/00
                                                               Since inception
                                      1 year      5 years       (11/30/1994)
 -----------------------------------
 <S>                                <C>          <C>          <C>
  Capital Opportunity Fund               22.44%       18.33%          21.06%

  S&P 500 Stock Index                    17.94        26.76           27.46
  Lipper Multi-Cap Core Funds            25.51        21.96           22.34
  Average
 ------------------------------------------------------------------------------
</TABLE>


 These figures include changes in principal value, reinvested dividends, and
 capital gain distributions, if any.
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                                                                               4


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FUND PROFILE
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 What fees or expenses will I pay?

   The fund is 100% no load. There are no fees or charges to buy or sell fund
   shares, reinvest dividends, or exchange into other T. Rowe Price funds. There
   are no 12b-1 fees.

<TABLE>
 Table 2  Fees and Expenses of the Fund
<CAPTION>
                                               Annual fund operating expenses
                                        (expenses that are deducted from fund assets)
 -------------------------------------------------------------------------------------
 <S>                                   <C>
  Management fee                                           0.67%/a// /
  Other expenses                                           0.52%
  Total annual fund operating                              1.19%/a// /
  expenses
 -------------------------------------------------------------------------------------
</TABLE>


 /a/The management fee and total annual fund operating expenses have been
   restated as a result of the expiration of an expense reimbursement agreement
   on December 31, 1998, and a decrease in the management fee from 0.77% to
   0.67%. In the absence of this restatement, the management fee and operating
   expenses would have been 0.83% and 1.35%, respectively.


   Example.  The following table gives you a rough idea of how expense ratios
   may translate into dollars and helps you to compare the cost of investing in
   this fund with that of other funds. Although your actual costs may be higher
   or lower, the table shows how much you would pay if operating expenses remain
   the same, you invest $10,000, you earn a 5% annual return, and you hold the
   investment for the following periods:
<TABLE>
<CAPTION>
   1 year      3 years      5 years       10 years
 ----------------------------------------------------
 <S>         <C>          <C>          <C>
    $121        $378         $654          $1,443
 ----------------------------------------------------
</TABLE>



 Who manages the fund?

   The fund is managed by T. Rowe Price Associates, Inc. Founded in 1937, T.
   Rowe Price and its affiliates manage investments for individual and
   institutional accounts. The company offers a comprehensive array of stock,
   bond, and money market funds directly to the investing public.

   The fund has an Investment Advisory Committee with the following members:
   William J. Stromberg, Chairman, John F. Wakeman, and Richard T. Whitney.
   Day-to-day responsibility for managing the fund's investments is shared by
   the Advisory Committee and a group of T. Rowe Price equity research analysts.


 Note: The following questions and answers about buying and selling shares and
 services do not apply to employer-sponsored retirement plans. If you are a
 participant in one of these plans, please call your plan's toll-free number for
 additional information.
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FUND PROFILE
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 How can I purchase shares?

   Fill out the New Account Form and return it with your check in the postpaid
   envelope. The minimum initial purchase is $2,500 ($1,000 for IRAs and gifts
   or transfers to minors). The minimum subsequent investment is $100 ($50 for
   IRAs, gifts or transfers to minors, or Automatic Asset Builder). You can also
   open an account by bank wire, by exchanging from another T. Rowe Price fund,
   or by transferring assets from another financial institution.


 How can I sell shares?

   You may redeem or sell any portion of your account on any business day.
   Simply write to us or call. You can also access your account at any time via
   Tele*Access /(R)/ or our Web site. We offer convenient exchange among our
   entire family of domestic and international funds. Restrictions may apply in
   special circumstances, and some redemption requests need a signature
   guarantee. A $5 fee is charged for wire redemptions under $5,000.


 When will I receive income and capital gain distributions?

   The fund distributes income and net capital gains, if any, at year-end. For
   regular accounts, income and short-term gains are taxable at ordinary income
   rates, and long-term gains are taxable at the capital gains rate.
   Distributions are reinvested automatically in additional shares unless you
   choose another option, such as receiving a check. Distributions paid to IRAs
   and employer-sponsored retirement plans are automatically reinvested.


 What services are available?

   A wide range, including but not limited to:

  . retirement plans for individuals and large and small businesses;

  . automated information and transaction services by telephone or computer;

  . electronic transfers between fund and bank accounts;

  . automatic investing and automatic exchange;

  . brokerage services; and

  . asset manager accounts.
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FUND PROFILE
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T. Rowe Price Associates, Inc.
100 East Pratt Street
Baltimore, MD 21202
www.troweprice.com

LOGO

                                                                 RPS F08-035

 T. Rowe Price Investment Services, Inc., Distributor
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