Annual Report
Corporate
Income
Fund
------------
May 31, 2000
------------
[LOGO]
T. ROWE PRICE
<PAGE>
Report Highlights
--------------------------------------------------------------------------------
Corporate Income Fund
o The strong economy and rising interest rates limited returns for bonds and
your fund.
o Fund results for the 6- and 12-month periods were slightly negative but
compared favorably with the benchmark index and competing funds.
o Higher-quality bonds outperformed lower-quality securities during the
period.
o We remained focused on finding attractive yields and broadly diversifying
the portfolio.
o Corporate bond yields currently look attractive compared with other
fixed-income sectors.
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.
<PAGE>
FELLOW SHAREHOLDERS
The U.S. economy continued on its path of high employment, robust economic
growth, and strong consumer confidence during the past year. With the pool of
available workers in the U.S. shrinking and the outlook for global economic
growth also improving, the Federal Reserve raised the federal funds target rate
six times since June 1999 in a preemptive strike against higher inflation. The
powerful economy created a negative environment for fixed-income investments. As
a result, corporate bonds and your fund posted slightly negative results for the
past six months and year.
MARKET ENVIRONMENT
The year ended May 31, 2000, was volatile for corporate bond
markets, largely due to aggressive Fed tightening designed to cool
an economy that continues to expand strongly. Lower-quality
corporate bonds, including BBB, high-yield, and split-rated bonds
(those rated BBB and BB by different rating agencies) significantly
underperformed both Treasuries and higher-quality corporate
securities - although returns were modest for them as well. (See
table on page 2.) During the past six months, the Treasury yield
curve inverted, meaning that yields on longer-term obligations were
lower than those on shorter-term Treasuries. The 30-year Treasury
yield fell from 6.30% six months ago to 6.01% at the end of May,
while the rate on two-year Treasury notes rose from 6.01% to 6.67%.
For the first time in recent history, the Treasury curve inversion
occurred in response to larger-than-expected Federal budget
surpluses and a reduction in outstanding long-term Treasury bonds,
rather
--------------------
INTEREST RATE LEVELS
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[GRAPHIC OMITTED]
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1
<PAGE>
------------------------------
CORPORATE BONDS
TOTAL RETURN BY CREDIT QUALITY
--------------------------------------------------------------------------------
[GRAPHIC OMITTED]
--------------------------------------------------------------------------------
Source: Solomon Smith Barney Holdings, Inc.
than to concerns about a possible recession or credit-market
upheaval. Yields on corporate bonds, particularly lower-quality
bonds, continued to rise as investors demanded higher yields in
return for taking on greater risk. Together, these factors resulted
in weaker returns for intermediate and longer-term corporate bonds
versus comparable Treasuries.
The environment for investment-grade corporate bonds (those rated
BBB and higher) was challenging through most of the past year, but
higher-rated bonds and those representing significant components of
the major benchmarks outperformed lower-quality and less-liquid
securities. Yankee bonds (foreign securities denominated in U.S.
dollars) were also relatively strong. Toward the end of the
reporting period, there were signs that the sizable yield advantage
offered by lower-quality corporate bonds was beginning to attract
investors to this part of the corporate bond market.
PERFORMANCE AND STRATEGY REVIEW
----------------------
PERFORMANCE COMPARISON
--------------------------------------------------------------------------------
Periods Ended 5/31/00 6 Months 12 Months
================================================================================
Corporate Income Fund -0.08% -0.63%
--------------------------------------------------------------------------------
Lehman Baa Corporate
Bond Index -1.23 -0.99
--------------------------------------------------------------------------------
Lipper Corporate Debt
BBB Funds Average -0.37 -0.67
--------------------------------------------------------------------------------
Your fund posted slightly negative returns for the 6- and 12-month
periods ended May 31, 2000. However, results were ahead of those
provided by both the Lehman Baa Corporate Bond Index and the Lipper
Corporate Debt BBB Funds Average. Fund performance for the past six
months reflected a decline in the share price from $9.15 last
November to $8.80 at the end of May, which
2
<PAGE>
was mostly offset by dividend income of $0.34 per share. For the
12-month period, the drop in share price of $0.74 per share was
partly offset by $0.68 in dividend income.
The fund's performance advantage over the benchmarks was
attributable to good results from Yankee bonds. We had taken
positions in Brazilian and Mexican bonds prior to the latter's
credit upgrade from Moody's Investors Service, which led to a rally
in those bonds. In addition, our holdings of convertible preferred
securities and some high-yielding stocks recovered during the past
few months, aiding performance. Their yields are attractive and
offer some protection against further price declines, as well as the
potential for long-term capital appreciation.
Some of our smaller holdings developed problems during the past
year, including the bonds of Rite-Aid, which we sold, and Safelite
Glass, which we will continue to hold until the company's strategy
for recovery becomes clearer.
-----------------------
QUALITY DIVERSIFICATION
--------------------------------------------------------------------------------
[The following table was depicted as a pie chart in the printed material.]
B Rated 8%
BB Rated 17%
BBB Rated 48%
A Rated and above 27%
--------------------------------------------------------------------------------
Given our outlook for continued U.S. economic expansion and rising
rates, we maintained a neutral duration relative to the Lehman index
during the past six months. (Duration is a measure of a bond fund's
sensitivity to interest rates. For example, a fund with a duration
of six years would fall or rise about 6% in price in response to a
one-percentage-point rise or fall in interest rates.) Also, in a
portfolio strategy shift, we elected to diversify our assets among a
greater number of holdings in response to investors' growing
intolerance for negative news about portfolio companies. We sold
some issues and reinvested the proceeds in more widely held issues
within the BBB sector, which should further improve the portfolio's
liquidity and allow us to take better advantage of opportunities
when they arise.
As always, our primary strategy emphasizes fundamental credit
analysis of the companies and sectors we invest in, which enables us
to buy higher-yielding bonds with stable-to-improving credit
outlooks.
3
<PAGE>
OUTLOOK
While the U.S. economy remains strong, there have been some early
indications that growth may be slowing. Stocks have retreated from their
lofty levels, and fixed-income investors are waiting for clues about
whether the Fed is nearing the end of its tightening cycle. However, with
the attractive yields available at present, we believe investors in
corporate bonds are being adequately compensated for the risk of further
short-term rate hikes.
Going forward, we do not expect the degree of volatility and lack of
liquidity experienced last year to continue much longer. The risk premiums
built into the yields of BBB, split-rated, and high-yield securities
appear to have discounted additional rate hikes, and we expect the yield
difference between lower- and high-quality corporate bonds to narrow,
resulting in good returns for lower-quality bonds. In our view, the
corporate bond market currently offers an attractive opportunity for
investors.
Thank you for investing with T. Rowe Price.
Respectfully submitted,
/s/ Robert M. Rubino
Robert M. Rubino
Chairman of the Investment Advisory Committee
June 16, 2000
4
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
--------------------
PORTFOLIO HIGHLIGHTS
--------------------------------------------------------------------------------
KEY STATISTICS
11/30/99 5/31/00
==========================================================================
Price Per Share $ 9.15 $ 8.80
--------------------------------------------------------------------------
Dividends Per Share
--------------------------------------------------------------------------
For 6 months 0.34 0.34
---------------------------------------------------------------------
For 12 months 0.67 0.68
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Dividend Yield *
--------------------------------------------------------------------------
For 6 months 7.35% 7.75%
---------------------------------------------------------------------
For 12 months 7.28 7.69
---------------------------------------------------------------------
30-Day Standardized Yield 8.13 8.98
--------------------------------------------------------------------------
Weighted Average Maturity (years) 13.2 11.7
--------------------------------------------------------------------------
Weighted Average Effective Duration (years) 5.8 5.5
--------------------------------------------------------------------------
Weighted Average Quality ** BBB+ BBB+
==========================================================================
* Dividends earned and reinvested for the periods indicated are
annualized and divided by the fund's net asset value at the end of
the period.
** Based on T. Rowe Price research.
5
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
--------------------
PORTFOLIO HIGHLIGHTS
--------------------------------------------------------------------------------
SECTOR DIVERSIFICATION
Percent of Percent of
Net Assets Net Assets
11/30/99 5/31/00
==========================================================================
Banking 11% 12%
--------------------------------------------------------------------------
Energy and Petroleum 9 8
--------------------------------------------------------------------------
Foreign Government and Municipalities -- 6
--------------------------------------------------------------------------
Long Distance 4 5
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Media and Communications 6 5
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Paper and Paper Products 5 4
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Money Market Funds* 4 4
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Aerospace and Defense 3 4
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Food and Tobacco 4 3
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Railroads 2 3
--------------------------------------------------------------------------
Airlines 2 3
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U.S. Treasury Obligations 2 3
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Services 2 3
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GNMA -- 2
--------------------------------------------------------------------------
Wireless Communications 1 2
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Transportation Services -- 2
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Electric Utilities 3 2
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All Other 40 29
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Other Assets Less Liabilities 2 --
==========================================================================
Total 100% 100%
* See notes at end of financial statements.
6
<PAGE>
T. ROWE PRICE CORPORATE INCOME 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.
CORPORATE INCOME FUND
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[GRAPHIC OMITTED]
--------------------------------------------------------------------------
------------------------------------
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 5/31/00 1 Year 3 Years Inception Date
==========================================================================
Corporate Income Fund -0.63% 3.81% 4.73% 10/31/95
--------------------------------------------------------------------------
Investment return and principal value represent past performance and will
vary. Shares may be worth more or less at redemption than at original
purchase.
7
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
--------------------
FINANCIAL HIGHLIGHTS For a share outstanding throughout each period
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year 10/31/95
Ended Through
5/31/00 5/31/99 5/31/98 5/31/97 5/31/96
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE
Beginning of period $ 9.54 $ 10.39 $ 9.81 $ 9.58 $ 10.00
----------------------------------------------------------------------------------
Investment activities
Net investment income (loss) 0.68* 0.70* 0.75* 0.73* 0.44*
Net realized and
unrealized gain (loss) (0.74) (0.83) 0.59 0.23 (0.42)
----------------------------------------------------------------------------------
Total from
investment activities (0.06) (0.13) 1.34 0.96 0.02
----------------------------------------------------------------------------------
Distributions
Net investment income (0.68) (0.70) (0.76) (0.73) (0.44)
Net realized gain -- (0.02) -- -- --
----------------------------------------------------------------------------------
Total distributions (0.68) (0.72) (0.76) (0.73) (0.44)
----------------------------------------------------------------------------------
NET ASSET VALUE
End of period $ 8.80 $ 9.54 $ 10.39 $ 9.81 $ 9.58
==================================================================================
</TABLE>
--------------------------------------------------------------------------------
Ratios/Supplemental Data
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C> <C> <C> <C>
Total return ^ (0.63%)* (1.21%)* 13.96%* 10.35%* 0.09%*
------------------------------------------------------------------------------------------------------------------------
Ratio of total expenses to
average net assets 0.80%* 0.80%* 0.80%* 0.80%* 0.80%*+
------------------------------------------------------------------------------------------------------------------------
Ratio of net investment
income (loss) to average
net assets 7.44%* 7.12%* 7.33%* 7.55%* 7.56%*+
------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 90.9% 140.8% 146.0% 119.5% 70.5%+
------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $ 43,725 $ 50,822 $ 42,829 $ 20,732 $ 12,461
------------------------------------------------------------------------------------------------------------------------
</TABLE>
^ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
* Excludes expenses in excess of a 0.80% voluntary expense limitation in
effect through 5/31/01.
+ Annualized
The accompanying notes are an integral part of these financial statements.
8
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
May 31, 2000
-----------------------
STATEMENT OF NET ASSETS Par/Shares Value
--------------------------------------------------------------------------------
In thousands
-------------------------------
CORPORATE BONDS AND NOTES 83.5%
-------------------------------
Aerospace & Defense 3.7%
Lockheed Martin, 8.20%, 12/1/09 $ 800 $ 781
--------------------------------------------------------------------------
Newport News Shipbuilding, Sr. Notes,
8.625%, 12/1/06 400 384
--------------------------------------------------------------------------
Raytheon, 5.70%, 11/1/03 500 465
--------------------------------------------------------------------------
1,630
-------
Banking 12.1%
Banco Generale, Sr. Sub. Notes, (144a),
7.70%, 8/1/02 900 849
--------------------------------------------------------------------------
Banco Santiago, Sub. Notes, 7.00%, 7/18/07 1,000 868
--------------------------------------------------------------------------
Bank United, MTN, 8.00%, 3/15/09 750 662
--------------------------------------------------------------------------
Imperial Bank, Sub. Notes, 8.50%, 4/1/09 725 656
--------------------------------------------------------------------------
M&I Marshall & Ilsley Bank, Sr. Sub. Notes,
7.875%, 3/15/10 450 438
--------------------------------------------------------------------------
MBNA America Bank, Sub. Notes, 6.75%, 3/15/08 900 799
--------------------------------------------------------------------------
Sanwa Finance Aruba, Gtd. Notes, 8.35%, 7/15/09 500 504
--------------------------------------------------------------------------
Sumitomo Bank, 8.50%, 6/15/09 500 508
5,284
-------
Beverages 0.8%
Coca Cola Femsa, 8.95%, 11/1/06 375 365
--------------------------------------------------------------------------
365
-------
Broadcasting 0.6%
Chancellor Media
Sr. Notes, 8.00%, 11/1/08 125 125
----------------------------------------------------------------------
Sub. Notes, 8.125%, 12/15/07 125 125
----------------------------------------------------------------------
250
-------
Building and Real Estate 1.4%
Lennar, Sr. Notes, (144a), 9.95%, 5/1/10 150 143
--------------------------------------------------------------------------
Regency Centers, 7.40%, 4/1/04 500 473
--------------------------------------------------------------------------
616
-------
Cable Operators 1.5%
Lenfest Communications, Sr. Sub. Notes,
10.50%, 6/15/06 250 270
--------------------------------------------------------------------------
Northland Cable Television, Sr. Sub. Notes,
10.25%, 11/15/07 250 222
--------------------------------------------------------------------------
Rogers Cablesystems, Sr. Sub. Deb.,
11.00%, 12/1/15 150 161
--------------------------------------------------------------------------
653
-------
Conglomerates 1.7%
Hutchison Whampoa Finance, (144a),
7.45%, 8/1/17 850 749
--------------------------------------------------------------------------
749
-------
Container 1.0%
Ball, Sr. Notes, 7.75%, 8/1/06 300 277
--------------------------------------------------------------------------
9
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Par/Shares Value
--------------------------------------------------------------------------------
In thousands
Consolidated Container, Sr. Sub. Notes,
10.125%, 7/15/09 $ 150 $ 148
--------------------------------------------------------------------------
425
--------
Electric Utilities 2.1%
Korea Electric Power, 7.00%, 10/1/02 500 483
--------------------------------------------------------------------------
South Carolina Electric & Gas, 1st Mtg. Bonds,
6.125%, 3/1/09 490 425
--------------------------------------------------------------------------
908
--------
Energy 5.8%
Amerigas Partners, Sr. Notes, 10.125%, 4/15/07 200 200
--------------------------------------------------------------------------
Energy Corporation of America, Sr. Sub. Notes,
9.50%, 5/15/07 100 66
--------------------------------------------------------------------------
Offshore Logistics, Sr. Notes, (144a),
7.875%, 1/15/08 100 90
--------------------------------------------------------------------------
PDVSA Finance Limited, 6.80%, 11/15/08 500 397
--------------------------------------------------------------------------
Pride Petroleum Services, Sr. Notes, 9.375%, 5/1/07 200 194
--------------------------------------------------------------------------
YPF Sociedad Anonima, 10.00%, 11/2/28 1,500 1,603
--------------------------------------------------------------------------
2,550
--------
Entertainment and Leisure 1.0%
Premier Parks, Sr. Notes, 9.75%, 6/15/07 100 96
--------------------------------------------------------------------------
Time Warner, 8.11%, 8/15/06 350 349
--------------------------------------------------------------------------
445
--------
Food and Tobacco 3.5%
Doane Pet Care, Sr. Sub. Notes, 9.75%, 5/15/07 250 218
--------------------------------------------------------------------------
Keebler, Sr. Sub. Notes, 10.75%, 7/1/06 250 266
--------------------------------------------------------------------------
Philip Morris, 7.00%, 7/15/05 450 418
--------------------------------------------------------------------------
UST, Sr. Sub. Notes, (144a) 8.80%, 3/15/05 650 631
--------------------------------------------------------------------------
1,533
--------
Foreign Government and Municipalities 6.2%
Korea Development Bank, 7.125%, 4/22/04 600 572
--------------------------------------------------------------------------
Petroleos Mexicanos, Gtd. Notes, 9.25%, 3/30/18 750 688
--------------------------------------------------------------------------
Republic of Brazil, 11.625%, 4/15/04 455 450
--------------------------------------------------------------------------
United Mexican States, 9.875%, 2/1/10 1,000 993
--------------------------------------------------------------------------
2,703
--------
Gaming 1.9%
Harrahs, Gtd. Sr. Sub. Notes, 7.875%, 12/15/05 250 230
--------------------------------------------------------------------------
International Game Technology, Sr. Notes,
8.375%, 5/15/09 150 139
--------------------------------------------------------------------------
Mohegan Tribal Gaming, Sr. Notes, 8.125%, 1/1/06 250 233
--------------------------------------------------------------------------
Park Place Entertainment, Sr. Sub. Notes,
7.875%, 12/15/05 250 228
--------------------------------------------------------------------------
830
--------
Health Care Services 0.4%
Tenet Healthcare, Sr. Notes, 8.00%, 1/15/05 200 187
--------------------------------------------------------------------------
187
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10
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Par/Shares Value
--------------------------------------------------------------------------------
In thousands
Insurance 1.9%
Fairfax Financial, 8.25%, 10/1/15 $ 500 $ 420
--------------------------------------------------------------------------
Frank Russell, (144a), 5.625%, 1/15/09 500 431
--------------------------------------------------------------------------
851
-------
Internet Service Providers 0.6%
PSINet, Sr. Notes, 10.00%, 2/15/05 300 265
--------------------------------------------------------------------------
265
-------
Investment Dealers 1.1%
Paine Webber, 6.45%, 12/1/03 500 469
--------------------------------------------------------------------------
469
-------
Lodging 0.1%
Courtyard by Marriott II, Sr. Notes,
10.75%, 2/1/08 50 49
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49
-------
Long Distance 5.5%
AT&T, 6.50%, 3/15/29 725 591
--------------------------------------------------------------------------
Qwest Communications International, Sr. Notes,
7.25%, 11/1/08 500 458
--------------------------------------------------------------------------
Sprint Capital, Sr. Notes, 6.875%, 11/15/28 1,000 838
--------------------------------------------------------------------------
Williams Communications Group, Sr. Notes,
10.875%, 10/1/09 500 502
--------------------------------------------------------------------------
2,389
-------
Manufacturing 0.6%
Tyco International, 6.125%, 11/1/08 300 259
--------------------------------------------------------------------------
259
-------
Media and Communications 4.6%
News America, 6.75%, 1/9/38 1,500 1,297
--------------------------------------------------------------------------
Seagrams, Sr. Notes, 6.80%, 12/15/08 800 704
--------------------------------------------------------------------------
2,001
-------
Metals and Mining 1.7%
Cyprus Amax Minerals, Sr. Notes, 7.375%, 5/15/07 500 462
--------------------------------------------------------------------------
P&L Coal, Sr. Notes, 8.875%, 5/15/08 300 273
--------------------------------------------------------------------------
735
-------
Miscellaneous Consumer Products 0.6%
Herff Jones, Sr. Sub. Notes, 11.00%, 8/15/05 250 257
--------------------------------------------------------------------------
257
-------
Oil Field Services 0.8%
Halliburton, 5.625%, 12/1/08 400 348
--------------------------------------------------------------------------
348
-------
Paper and Paper Products 4.4%
Abitibi Consolidated, 6.95%, 4/1/08 400 353
--------------------------------------------------------------------------
Bowater, 9.375%, 12/15/21 500 516
--------------------------------------------------------------------------
11
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Par/Shares Value
--------------------------------------------------------------------------------
In thousands
Celulosa Arauco Y Constitucion, 7.50%, 9/15/17 $ 725 $ 592
--------------------------------------------------------------------------
Packaging Corp. of America, Sr. Sub. Notes,
9.625%, 4/1/09 250 245
--------------------------------------------------------------------------
Repap New Brunswick, Sr. Sec. Notes, 11.50%, 6/1/04 200 200
--------------------------------------------------------------------------
1,906
-------
Petroleum 0.7%
Phillips Petroleum, 8.75%, 5/25/10 300 306
--------------------------------------------------------------------------
306
-------
Printing and Publishing 0.6%
Hollinger International Publishing, Sr. Sub. Notes,
9.25%, 3/15/07 250 243
--------------------------------------------------------------------------
243
-------
Railroads 2.7%
Norfolk Southern, Sr. Notes, 8.625%, 5/15/10 650 659
--------------------------------------------------------------------------
Union Pacific, 6.625%, 2/1/08 600 543
--------------------------------------------------------------------------
1,202
-------
Retail 0.0%
Safelite Glass, Sr. Sub. Notes, 9.875%, 12/15/06 100 1
--------------------------------------------------------------------------
1
-------
Savings and Loan 1.3%
Bank United, 10.25%, 12/31/26 700 588
--------------------------------------------------------------------------
588
-------
Services 2.5%
Coinmach, Sr. Notes, 11.75%, 11/15/05 250 238
--------------------------------------------------------------------------
Intertek Finance, Sr. Sub. Notes, 10.25%, 11/1/06 75 62
--------------------------------------------------------------------------
Mastec, Sr. Sub. Notes, 7.75%, 2/1/08 250 230
--------------------------------------------------------------------------
Waste Management, 7.70%, 10/1/02 600 573
--------------------------------------------------------------------------
1,103
-------
Specialty Chemicals 1.3%
American Pacific, Sr. Notes, 9.25%, 3/1/05 175 173
--------------------------------------------------------------------------
ISP Holdings, Sr. Notes, 9.75%, 2/15/02 200 194
--------------------------------------------------------------------------
Octel, Sr. Notes, 10.00%, 5/1/06 200 185
--------------------------------------------------------------------------
552
-------
Telephones 0.9%
BellSouth Telecommunications, 6.375%, 6/1/28 500 401
--------------------------------------------------------------------------
401
-------
Textiles and Apparel 0.4%
Westpoint Stevens, Sr. Notes, 7.875%, 6/15/05 200 168
--------------------------------------------------------------------------
168
-------
Transportation (excluding Railroads) 1.3%
Allied Holdings, Gtd. Sr. Sub. Notes, 8.625%, 10/1/07 125 111
--------------------------------------------------------------------------
12
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Par/Shares Value
--------------------------------------------------------------------------------
In thousands
TravelCenters of America, Sr. Sub. Notes,
10.25%, 4/1/07 $ 250 $ 236
--------------------------------------------------------------------------
Westinghouse Air Brake, Sr. Notes,
9.375%, 6/15/05 250 241
--------------------------------------------------------------------------
588
--------
Transportation Services 2.2%
Amerco, Sr. Notes, 8.80%, 2/4/05 1,000 946
--------------------------------------------------------------------------
946
--------
Wireless Communications 2.3%
Rogers Cantel
Sr. Secured Deb.
9.375%, 6/1/08 125 125
------------------------------------------------------------------
9.75%, 6/1/16 125 131
------------------------------------------------------------------
Vodafone Airtouch, (144a), 7.75%, 2/15/10 500 485
--------------------------------------------------------------------------
VoiceStream Wireless, Sr. Notes,
10.375%, 11/15/09 250 253
--------------------------------------------------------------------------
994
--------
Wireline Communications 1.7%
Intermedia Communications, Sr. Notes,
9.50%, 3/1/09 250 229
--------------------------------------------------------------------------
Metronet Communications, Sr. Disc. Notes
STEP, 0%, 6/15/08 400 320
--------------------------------------------------------------------------
Nextlink Communications, Sr. Disc. Notes
STEP, 0%, 6/1/09 350 200
--------------------------------------------------------------------------
749
--------
Total Corporate Bonds and Notes (Cost $38,694) 36,498
--------
----------------------------
ASSET-BACKED SECURITIES 5.3%
----------------------------
Airlines 2.7%
Atlas Air
ETC, 8.77%, 1/2/11 957 929
----------------------------------------------------------------------
(144a), 9.702%, 1/2/10 250 248
--------------------------------------------------------------------------
1,177
--------
Banking 1.1%
MBNA Master Credit Card Trust, Sub. Notes,
6.65%, 7/17/06 500 476
--------------------------------------------------------------------------
476
--------
Petroleum 1.5%
Pemex Finance Limited, (144a), 9.03%, 2/15/11 675 659
--------------------------------------------------------------------------
659
--------
Total Asset-Backed Securities (Cost $2,381) 2,312
--------
13
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Par/Shares Value
--------------------------------------------------------------------------------
In thousands
--------------------------------
U.S. GOVERNMENT OBLIGATIONS 2.6%
--------------------------------
U.S. Treasury Obligations 2.6%
U.S. Treasury Bonds, 6.125%, 8/15/29 $ 610 $ 608
--------------------------------------------------------------------------
U.S. Treasury Inflation-Indexed Notes,
3.375%, 1/15/07 540 514
--------------------------------------------------------------------------
Total U.S. Government Obligations (Cost $1,130) 1,122
--------
-----------------------------------------------
U.S. GOVERNMENT MORTGAGE-BACKED SECURITIES 2.3%
-----------------------------------------------
U.S. Government Guaranteed Obligations 2.3%
Government National Mortgage Assn., I, 6.50%,
1/15/30 1,100 1,029
--------------------------------------------------------------------------
Total U.S. Government Mortgage-Backed Securities
(Cost $1,023) 1,029
--------
--------------------------------------
EQUITY AND CONVERTIBLE SECURITIES 2.1%
--------------------------------------
Building and Real Estate 1.6%
Crescent Real Estate Equities, REIT, Cv. Pfd.,
(Series A), 6.75% 6 93
--------------------------------------------------------------------------
Equity Residential Properties Trust, REIT,
Cv. Pfd., 7.25% 8 174
--------------------------------------------------------------------------
Kimco Realty, REIT, Cv. Pfd. 4 102
--------------------------------------------------------------------------
Reckson Associates Realty, REIT, Cv. Pfd.,
(Series A), 7.625% 15 305
--------------------------------------------------------------------------
674
--------
Electric Utilities 0.5%
Potomac Electric Power, Common 5 124
--------------------------------------------------------------------------
Scottish Power ADR, Common 3 84
--------------------------------------------------------------------------
208
--------
Miscellaneous Consumer Products 0.0%
UST, Common 1 15
--------------------------------------------------------------------------
15
--------
Total Equity and Convertible Securities (Cost $908) 897
--------
----------------------
CONVERTIBLE BONDS 0.3%
----------------------
Miscellaneous Business Services 0.3%
Waste Management, 4.00%, 2/1/02 150 136
--------------------------------------------------------------------------
Total Convertible Bonds (Cost $129) 136
--------
-----------------------
MONEY MARKET FUNDS 3.7%
-----------------------
Reserve Investment Fund, 6.48%# 1,633 1,633
--------------------------------------------------------------------------
Total Money Market Funds (Cost $1,633) 1,633
--------
14
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Par/Shares Value
--------------------------------------------------------------------------------
In thousands
-------------------------------
Total Investments in Securities
-------------------------------
99.8% of Net Assets (Cost $45,898) $ 43,627
-------------------------------
Futures Contracts
-------------------------------
In thousands
Contract Unrealized
Expiraton Value Gain (Loss)
--------- -------- -----------
Short, 2 U.S. Agency 10-year
contracts, $2,400 par of BellSouth
bonds pledged as initial margin 9/00 $ (179) $ --
Short, 9 U.S. Treasury 5-year
contracts, $11,250 of BellSouth
bonds pledged as initial margin 9/00 (878) (1)
Net payments (receipts) of variation
margin to date (2)
-----------
Variation margin receivable
(payable) on open futures contracts (3)
-----------------------------
Other Assets Less Liabilities 101
----------------------------- --------
--------
NET ASSETS $ 43,725
--------
Net Assets Consist of:
Accumulated net investment income - net of distributions $ 58
Accumulated net realized gain/loss - net of distributions (4,848)
Net unrealized gain (loss) (2,272)
Paid-in-capital applicable to 4,968,417 shares of $0.0001 par
value capital stock outstanding; 1,000,000,000 shares authorized 50,787
--------
--------
NET ASSETS $ 43,725
--------
--------
NET ASSET VALUE PER SHARE $ 8.80
--------
# Seven-day yield
ADR American Depository Receipt
ETC Equipment Trust Certificates
MTN Medium Term Note
REIT Real Estate Investment Trust
STEP Stepped coupon note for which the interest rate will adjust on specified
future date(s).
144a Security was purchased pursuant to Rule 144a under the Securities Act of
1933 and may not be resold subject to that rule except to qualified
institutional buyers--total of such securities at period-end amounts to
9.8% of net assets.
The accompanying notes are an integral part of these financial statements.
15
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
-----------------------
STATEMENT OF OPERATIONS
--------------------------------------------------------------------------------
In thousands
Year
Ended
5/31/00
------------------------
Investment Income (Loss)
------------------------
Income
Interest $ 4,032
Dividend 70
-------
Total income 4,102
-------
Expenses
Investment management 112
Shareholder servicing 111
Custody and accounting 105
Prospectus and shareholder reports 23
Registration 21
Legal and audit 17
Directors 6
Miscellaneous 4
-------
Total expenses 399
Expenses paid indirectly (2)
-------
Net expenses 397
-------
Net investment income (loss) 3,705
-------
-----------------------------------
Realized and Unrealized Gain (Loss)
-----------------------------------
Net realized gain (loss)
Securities (2,732)
Futures 7
-------
Net realized gain (loss) (2,725)
Change in net unrealized gain (loss)
Securities (1,278)
Futures (1)
-------
Change in net unrealized gain or loss (1,279)
-------
Net realized and unrealized gain (loss) (4,004)
-------
INCREASE (DECREASE) IN NET -------
ASSETS FROM OPERATIONS $ (299)
=======
The accompanying notes are an integral part of these financial statements.
16
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
----------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
In thousands
<TABLE>
<CAPTION>
Year
Ended
5/31/00 5/31/99
<S> <C> <C>
---------------------------------
Increase (Decrease) in Net Assets
---------------------------------
Operations
Net investment income (loss) $ 3,705 $ 3,662
Net realized gain (loss) (2,725) (2,881)
Change in net unrealized gain or loss (1,279) (1,191)
----------------------
Increase (decrease) in net assets from operations (299) (410)
----------------------
Distributions to shareholders
Net investment income (3,707) (3,654)
Net realized gain -- (110)
----------------------
Decrease in net assets from distributions (3,707) (3,764)
----------------------
Capital share transactions *
Shares sold 24,511 44,593
Distributions reinvested 2,230 2,468
Shares redeemed (29,832) (34,894)
----------------------
Increase (decrease) in net assets from capital
share transactions (3,091) 12,167
----------------------
---------------------------------
Net Assets
---------------------------------
Increase (decrease) during period (7,097) 7,993
Beginning of period 50,822 42,829
----------------------
---------------------------------
End of period $ 43,725 $ 50,822
--------------------------------- ======================
*Share information
Shares sold 2,666 4,525
Distributions reinvested 244 252
Shares redeemed (3,271) (3,570)
----------------------
Increase (decrease) in shares outstanding (361) 1,207
</TABLE>
The accompanying notes are an integral part of these financial statements.
17
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
May 31, 2000
-----------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
Note 1 - Significant Accounting Policies
T. Rowe Price Corporate Income 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 31, 1995. The fund
seeks to provide high income and some capital growth by investing
primarily in both investment-grade and noninvestment-grade corporate debt
securities of U.S. and foreign companies.
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 Debt securities are generally traded in the over-the-counter
market. Investments in securities with original maturities of one year or
more are stated at fair value as furnished by dealers who make markets in
such securities or by an independent pricing service, which considers
yield or price of bonds of comparable quality, coupon, maturity, and type,
as well as prices quoted by dealers who make markets in such securities.
Securities with original maturities of less than one year are stated at
fair value, which is determined by using a matrix system that establishes
a value for each security based on money market yields.
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 T. Rowe
Price Corporate Income Fundvalue per share of the mutual fund on the day
of valuation. Financial futures contracts are valued at closing settlement
prices.
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.
18
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Premiums and Discounts Premiums and discounts on debt securities, other
than mortgage-backed securities (MBS), are amortized for both financial
reporting and tax purposes. Premiums and discounts on all MBS are
recognized upon dispositon or principal repayment as gain or loss for
financial reporting purposes. For tax purposes, premiums and discounts on
MBS acquired on or before June 8, 1997, are recognized upon dispositon or
principal repayment as ordinary income. For MBS acquired after June 8,
1997, premiums are recognized as gain or loss; discounts are recognized as
gain or loss, except to the extent of accrued market discount.
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. Payments
("variation margin") made or received by the fund to settle the daily
fluctuations in the value of futures contracts are recorded as unrealized
gains or losses until the contracts are closed. Unrealized gains and
losses on futures contracts are included in Change in net unrealized gain
or loss in the accompanying financial statements.
Note 2 - Investment Transactions
Consistent with its investment objective, the fund engages in the
following practices to manage exposure to certain risks or enhance
performance. The investment objective, policies, program, and risk factors
of the fund are described more fully in the fund's prospectus and
Statement of Additional Information.
Noninvestment-Grade Debt Securities At May 31, 2000, the fund held
investments in noninvestment-grade debt securities, commonly referred to
as "high-yield" or "junk" bonds. A real or perceived economic downturn or
higher interest rates could adversely affect the liquidity or value, or
both, of such securities because such events could lessen the ability of
issuers to make principal and interest payments.
19
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
Futures Contracts At May 31, 2000, the fund was a party to futures
contracts, which provide for the future sale by one party and purchase by
another of a specified amount of a specific financial instrument at an
agreed upon price, date, time, and place. Risks arise from possible
illiquidity of the futures market and from movements in security values
and interest rates.
Other Purchases and sales of portfolio securities, other than short-term
and U.S. government securities, aggregated $38,393,000 and $41,013,000
respectively, for the year ended May 31, 2000. Purchases and sales of U.S.
government securities aggregated $4,622,000 end $4,987,000, respectively,
for the year ended May 31, 2000.
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. As of May 31, 2000, the fund has capital loss
carryforwards for federal income tax purT. Rowe Price Corporate Income
Fundposes of $3,799,000, of which $815,000 expires in 2007 and $2,984,000
in 2008. The fund intends to retain gains realized in future periods that
may be offset by available capital loss carryforwards.
At May 31, 2000, the cost of investments for federal income tax purposes
was substantially the same as for financial reporting and totaled
$45,898,000. Net unrealized loss aggregated $2,271,000 at period-end, of
which $184,000 related to appreciated investments and $2,455,000 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 $9,000 was payable at May 31, 2000. The fee is
computed daily and paid monthly, and consists of an individual fund fee
equal to 0.15% 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%
20
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
for the first $1 billion of assets to 0.295% for assets in excess of $120
billion. At May 31, 2000, 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.
Under the terms of the investment management agreement, the manager is
required to bear any expenses through May 31, 2001, which would cause the
fund's ratio of total expenses to average net assets to exceed 0.80%.
Thereafter, through May 31, 2003, the fund is required to reimburse the
manager for these expenses, provided that average net assets have grown or
expenses have declined sufficiently to allow reimbursement without causing
the fund's ratio of total expenses to average net assets to exceed 0.80%.
Pursuant to this agreement, $121,000 of management fees were not accrued
by the fund for the year ended May 31, 2000. Additionally, $320,000 of
fees and expenses related to a previous expense limitation are subject to
reimbursement through May 31, 2001.
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 $169,000 for the year ended May 31,
2000, of which $17,000 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
May 31, 2000, totaled $93,000 and are reflected as interest income in the
accompanying Statement of Operations.
21
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
---------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
--------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
T. Rowe Price Corporate Income 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 Corporate Income Fund, Inc. (the "Fund") at May
31, 2000, 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 May 31, 2000 by correspondence with
the custodian and brokers, provide a reasonable basis for the opinion
expressed above.
PricewaterhouseCoopers LLP
Baltimore, Maryland
June 19, 2000
22
<PAGE>
T. ROWE PRICE CORPORATE INCOME FUND
================================================================================
----------------------------------------------------------
TAX INFORMATION (UNAUDITED) FOR THE TAX YEAR ENDED 5/31/00
--------------------------------------------------------------------------------
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.
For corporate shareholders, $8,000 of the fund's distributed income and
short-term capital gains qualified for the dividends-received deduction.
--------------------------------------------------------------------------------
23
<PAGE>
T. ROWE PRICE SHAREHOLDER SERVICES
================================================================================
INVESTMENT SERVICES AND INFORMATION
KNOWLEDGEABLE SERVICE REPRESENTATIVES
By Phone 1-800-225-5132 Available Monday through Friday from 8 a.m.
to 10 p.m. ET and weekends from 8:30 a.m. to 5 p.m. ET.
In Person Available in T. Rowe Price Investor Centers.
ACCOUNT SERVICES
Checking Available on most fixed income funds ($500 minimum).
Automatic Investing From your bank account or paycheck.
Automatic Withdrawal Scheduled, automatic redemptions.
Distribution Options Reinvest all, some, or none of your
distributions.
Automated 24-Hour Services Including Tele*Access(R)and the T. Rowe
Price Web site on the Internet. Address: www.troweprice.com
BROKERAGE SERVICES*
Individual Investments Stocks, bonds, options, precious metals, and
other securities at a savings over full-service commission rates. **
INVESTMENT INFORMATION
Combined Statement Overview of all your accounts with T. Rowe Price.
Shareholder Reports Fund managers' reviews of their strategies and
results.
T. Rowe Price Report Quarterly investment newsletter discussing
markets and financial strategies.
Performance Update Quarterly review of all T. Rowe Price fund
results.
Insights Educational reports on investment strategies and financial
markets.
Investment Guides Asset Mix Worksheet, College Planning Kit,
Diversifying Overseas: A Guide to International Investing, Personal
Strategy Planner, Retirees Financial Guide, and Retirement Planning
Kit.
* T. Rowe Price Brokerage is a division of T. Rowe Price
Investment Services, Inc., Member NASD/SIPC.
** Based on a September 1999 survey for representative-assisted
stock trades. Services vary by firm, and commissions may vary
depending on size of order.
24
<PAGE>
T. ROWE PRICE MUTUAL FUNDS
================================================================================
STOCK FUNDS
-------------------------
Domestic
Blue Chip Growth
Capital Appreciation
Capital Opportunity
Diversified Small-Cap Growth
Dividend Growth
Equity Income
Equity Index 500
Extended Equity Market Index
Financial Services
Growth & Income
Growth Stock
Health Sciences
Media & Telecommunications
Mid-Cap Growth
Mid-Cap Value
New America Growth
New Era New Horizons*
Real Estate Science & Technology
Small-Cap Stock
Small-Cap Value
Spectrum Growth
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.
25
<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
Invest With Confidence(R) [LOGO]
T. Rowe Price
T. Rowe Price Investment Services, Inc., Distributor. F03-050 5/31/00
