N-Q 1 poi_inf.txt N-Q~INTERNATIONAL FUNDS, INC. Item 1. Schedule of Investments. T. Rowe Price Emerging Europe & Mediterranean Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) CANADA 1.9% Common Stocks 1.9% Telesystem International Wireless (USD) *ss. 166,100 1,769 Total Canada (Cost $1,578) 1,769 CZECH REPUBLIC 4.1% Common Stocks 4.1% Komercni Banka 29,276 2,984 Zentiva, 144A * 41,000 812 Total Czech Republic (Cost $3,420) 3,796 EGYPT 12.6% Common Stocks 12.6% Commercial International Bank 768,000 3,091 Egyptian Company for Mobile Services 98,115 1,411 Orascom Construction Industries * 213,700 3,492 Orascom Telecommunications * 174,200 3,562 Total Egypt (Cost $9,845) 11,556 ESTONIA 1.8% Common Stocks 1.8% Hansabank (EUR) 201,976 1,672 Total Estonia (Cost $1,190) 1,672 ISRAEL 33.2% Common Stocks 33.2% Bank Hapoalim 1,659,000 4,523 Bank Leumi 813,100 1,622 Check Point Software Technologies (USD) * 130,415 2,594 Lipman Electronic Engineering (USD) *ss. 88,800 2,131 Makhteshim-Agan Industries 610,400 2,604 NICE Systems ADR (USD) *ss. 70,200 1,510 Orbotech (USD) *ss. 100,800 1,715 Partner Communications ADR (USD) * 333,790 2,370 Radware (USD) * 126,400 2,260 Teva Pharmaceutical ADR (USD) ss. 312,960 9,264 Total Israel (Cost $29,225) 30,593 KAZAKHSTAN 4.7% Common Stocks 4.7% PetroKazakhstan (USD) ss. 135,807 4,298 Total Kazakhstan (Cost $3,808) 4,298 RUSSIA 29.4% Common Stocks 29.4% AO VimpelCom ADR (USD) * 54,200 4,740 Gazprom ADR (USD) 86,800 2,561 Lukoil (USD) 57,130 1,557 Lukoil ADR (USD) 68,550 7,472 MMC Norilsk Nickel (USD) 68,000 3,427 Mobile Telesystems ADR (USD) 41,131 4,814 Sibneft ADR (USD) 15,600 394 YUKOS ADR (USD) ss. 120,845 2,069 Total Russia (Cost $21,262) 27,034 TURKEY 11.3% Common Stocks 11.3% Akbank 617,161,961 2,543 Anadolu Efes Biracilik ve Malt Sanayii 93,887,750 1,291 Arcelik * 110,921,700 593 Dogan Yayin Holding * 320,605,030 1,092 Dogus Otomotiv Servis ve Ticaret (Dogus Otomotiv) * 169,098,100 639 Hurriyet Gazete * 550,745,781 1,003 Turkcell Iletisim Hizmetleri * 357,669,940 1,461 Turkcell Iletisim Hizmetleri ADR (USD) ss. 6,300 188 Turkiye Garanti Bankasi * 509,284,008 1,578 Total Turkey (Cost $6,621) 10,388 SHORT-TERM INVESTMENTS 0.0% Money Market Funds 0.0% T. Rowe Price Reserve Investment Fund, 1.33% # 1,000 1 Total Short-Term Investments (Cost $1) 1 SECURITIES LENDING COLLATERAL 16.4% Money Market Pooled Account 16.4% Investment in money market pooled account managed by JP Morgan Chase Bank, London, 1.32% # 15,079,537 15,080 Total Securities Lending Collateral (Cost $15,080) 15,080 Total Investments in Securities 115.4% of Net Assets (Cost $92,030) $ 106,187 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $812 and represents 0.9% of net assets ADR American Depository Receipts EUR Euro USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Emerging Europe & Mediterranean Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Emerging Europe & Mediterranean Fund (the fund), a nondiversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of companies in the emerging market countries of Europe and the Mediterranean region. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Emerging Markets The fund may invest in securities of companies located in emerging markets. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $15,010,000; aggregate collateral consisted of $15,080,000 in the money market pooled account. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $92,030,000. Net unrealized gain aggregated $14,151,000 at period-end, of which $16,263,000 related to appreciated investments and $2,112,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price Emerging Markets Stock Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) EUROPE/FAR EAST 1.3% Common Stocks 1.3% iShares MSCI Emerging Markets Index Fund ss. 40,100 6,246 Total Europe/Far East (Cost $6,294) 6,246 ARGENTINA 0.8% Common Stocks 0.8% Quilmes Industrial ADR (USD) 57,900 884 Tenaris ADR (USD) 77,700 2,763 Total Argentina (Cost $3,176) 3,647 Common Stocks 8.4% Cia De Concessoes Rodoviaria 99,100 1,084 Companhia de Bebidas ADR (USD) ss. 131,097 2,695 Companhia Siderurgica Nacional 204,766 2,976 Companhia Vale do Rio Doce ADR (1 ADR represents 1 common share) (USD) ss. 45,800 2,469 Companhia Vale do Rio Doce ADR (USD) 40,700 1,795 Embraer Aircraft ADR (USD) 42,405 1,213 Gol-Linhas Aereas Inteligentes ADR (USD) * 27,000 459 Natura Cosmeticos * 66,800 1,147 Petroleo Brasileiro (Petrobras) ADR (USD) 465,590 11,943 Petroleo Brasileiro (Petrobras) ADR (1 ADR represents 1 common share) (USD) 35,900 1,015 Tele Centro Oeste Celular ADR (USD) ss. 1 0 Tele Norte Leste Participacoes * 249,440,700 3,069 Tele Norte Leste Participacoes ADR (USD) ss. 258,600 3,377 Telesp Celular Participacoes ADR (USD) *ss. 570,900 3,768 Votorantim Celulose ADR (USD) ss. 103,700 3,708 40,718 Preferred Stocks 2.4% Banco Itau Holding Financeira 51,215,800 4,771 Caemi Mineracao e Metalurgica * 2,091,200 926 Cia Energetica Minas Gerais (Cemig) 200,905,000 3,696 Cia Suzano de Papel e Celulose 455,500 2,105 11,498 Total Brazil (Cost $47,390) 52,216 CHINA 4.1% Common Stocks 4.1% China Insurance (HKD) 3,976,000 1,644 China Resources Enterprise (HKD) ss. 1,784,000 2,196 China Telecom, 144A (HKD) * 5,480,000 1,809 China Telecom (H shares) (HKD) 6,854,000 2,263 Cnooc (HKD) 10,253,000 4,929 Pacific Basin Shipping, 144A (HKD) * 2,685,000 792 Panva Gas Holdings (HKD) * 5,199,000 2,233 Shanghai Forte Land Company (H shares) (HKD) *ss. 6,712,000 1,540 tom.com (HKD) *ss. 10,198,000 2,340 Total China (Cost $20,039) 19,746 CZECH REPUBLIC 0.7% Common Stocks 0.7% Komercni Banka 24,134 2,460 Zentiva 144A, *ss. 49,800 986 Total Czech Republic (Cost $3,118) 3,446 EGYPT 0.9% Common Stocks 0.9% Commercial International Bank 39,758 160 Egyptian Company for Mobile Services 104,721 1,506 Orascom Construction Industries * 145,300 2,374 Orascom Telecommunications * 9,070 186 Total Egypt (Cost $4,041) 4,226 INDIA 7.3% Common Stocks 7.3% Arvind Mills * 1,774,157 2,915 Ballarpur Industries GDR, 144A * 652,650 915 HDFC Bank 294,000 2,378 Hindalco Industries 65,780 1,559 I-Flex Solutions * 179,620 2,049 I-Flex Solutions, 144A * 58,800 671 ITC 128,160 2,860 Kotak Mahindra Finance 328,850 2,523 Mahindra & Mahindra 240,800 2,342 Oil & Natural Gas * 82,000 1,263 Oil & Natural Gas, (Regulation S shares) * 83,600 1,288 Petronet LNG * 3,795,500 1,805 Power Trading 1,372,600 1,475 Tata Tea 287,200 2,600 UTI Bank 915,400 2,524 Zee Telefilms 1,949,300 5,906 Total India (Cost $32,230) 35,073 INDONESIA 1.0% Common Stocks 1.0% Indosat 6,477,500 2,925 Telekom Indonesia * 2,301,000 1,952 Total Indonesia (Cost $3,839) 4,877 ISRAEL 7.5% Common Stocks 7.5% Bank Hapoalim 2,187,098 5,963 Check Point Software Technologies (USD) * 182,414 3,628 Lipman Electronic Engineering (USD) * 93,600 2,246 Makhteshim-Agan Industries 1,190,400 5,078 NICE Systems ADR (USD) *ss. 89,900 1,934 Orbotech (USD) * 134,600 2,291 Partner Communications ADR (USD) *ss. 559,930 3,976 Radware (USD) * 129,900 2,323 Teva Pharmaceutical ADR (USD) ss. 302,480 8,953 Total Israel (Cost $35,886) 36,392 KAZAKHSTAN 1.3% Common Stocks 1.3% PetroKazakhstan (USD) ss. 198,447 6,281 Total Kazakhstan (Cost $5,659) 6,281 MALAYSIA 6.4% Common Stocks 6.4% Astro All Asia * 2,327,600 2,805 Astro All Asia (Regulation S shares) * 536,000 646 Berjaya Sports Toto 2,505,600 2,440 CIMB Berhad 1,770,200 2,516 Hong Leong Bank 1,776,100 2,384 IJM 1,706,200 2,119 Magnum 3,719,700 2,369 Malayan Banking Berhad 1,336,600 3,764 Malaysian Industrial Development Finance Berhad 4,793,100 1,514 MK Land Holdings 3,340,900 2,224 Multi Purpose Holdings, Warrants, 2/26/09 * 355,350 46 Multi-Purpose Holdings * 3,487,100 1,074 Public Bank BHD 1,123,900 2,070 Sime Darby 1,319,000 1,944 Symphony House * 3,789,750 877 Symphony House, Warrants, 4/28/09 * 667,290 52 Telekom Malaysia 624,000 1,691 Telekom Malaysia (Regulation S shares) 184,000 499 Total Malaysia (Cost $31,032) 31,034 MEXICO 8.6% Common Stocks 8.6% America Movil ADR, Series L (USD) 356,040 12,721 Cemex 481,372 2,722 Consorcio ARA * 794,800 2,160 Grupo Aeroportuario del Sureste ADR (USD) 64,200 1,367 Grupo Financiero Banorte 642,700 2,366 Grupo Modelo, Series C 859,000 2,127 Grupo Televisa ADR (USD) 110,569 5,197 Telmex ADR (USD) 104,751 3,235 Urbi Desarrollos Urbanos * 612,500 2,116 Wal-Mart de Mexico, Series V 2,456,627 7,494 Total Mexico (Cost $35,368) 41,505 PERU 0.3% Common Stocks 0.3% Compania de Minas Buenaventura ADR, Series B (USD) ss. 70,700 1,522 Total Peru (Cost $1,444) 1,522 RUSSIA 6.3% Common Stocks 6.3% AO VimpelCom ADR (USD) * 88,000 7,696 Gazprom ADR (USD) ss. 66,900 1,973 Lukoil (USD) 86,520 2,358 Lukoil ADR (USD) 52,160 5,685 MMC Norilsk Nickel (USD) 79,100 3,987 Mobile Telesystems ADR (USD) 51,660 6,047 YUKOS ADR (USD) ss. 145,704 2,495 Total Russia (Cost $26,254) 30,241 SOUTH AFRICA 9.7% Common Stocks 9.7% ABSA Group 475,900 3,879 African Bank Investments 2,029,081 3,757 Anglo American 237,410 5,048 Impala Platinum Holdings 102,860 8,142 Investec 109,100 2,018 Naspers (N shares) 1,006,500 7,229 Pick 'N Pay Stores 678,700 1,977 SABMiller 270,600 3,449 Sanlam 3,792,750 5,297 Sappi 142,029 2,019 Standard Bank Group 598,600 4,099 Total South Africa (Cost $38,750) 46,914 SOUTH KOREA 15.7% Common Stocks 14.2% Amorepacific 24,320 4,325 Hanaro Telecom * 705,685 1,478 Kookmin Bank * 285,936 7,861 Kookmin Bank ADR (USD) * 19,900 549 Korean Air Lines * 139,100 1,695 Kumgang Korea Chemical 37,260 3,536 LG Chemical 58,870 1,961 LG Electronics *ss. 33,090 1,378 LG Home Shopping 32,251 979 Lotte Chilsung Beverage 6,410 3,798 NCsoft * 28,300 2,069 Plenus 143,800 1,105 S Oil ss. 123,970 5,470 Samsung Electronics 43,665 15,569 Shinhan Financial 222,400 3,242 Shinsegae ss. 21,650 5,045 SK Corporation * 86,310 3,491 South Korea Telecom 35,980 4,892 68,443 Preferred Stocks 1.5% Hyundai Motor 226,140 5,066 Samsung Electronics 8,200 2,020 7,086 Total South Korea (Cost $65,381) 75,529 SWITZERLAND 0.8% Common Stocks 0.8% Compagnie Financiere Richemont (10 depositary receipts represent one A unit) (ZAR) 1,452,100 3,757 Total Switzerland (Cost $3,148) 3,757 TAIWAN 9.1% Common Stocks 9.1% Acer * 2,567,065 3,293 Advantech 1,199,075 2,346 Basso Industry * 1,124,000 2,166 Catcher Technology * 343,000 888 Cathay Financial Holding 4,493,000 7,402 Cheng Shin Rubber Industry * 1,597,968 2,036 China Trust Finance 5,158,201 5,266 EVA Airways 5,774,699 2,141 Evergreen Marine 1,664,220 1,224 Far Eastern Department Stores 358,000 163 Far Eastern Textile * 2,980,000 1,587 First Financial Holdings * 2,747,000 1,818 Formosa Plastic * 20,344 28 Quanta Computer * 1,319,414 2,135 Taishin Financial Holdings * 4,157,000 3,180 Taiwan Cellular 1,941,001 1,748 Taiwan Semiconductor Manufacturing 3,753,416 4,737 Via Technologies 2,749,000 1,973 Total Taiwan (Cost $46,519) 44,131 THAILAND 1.9% Common Stocks 1.9% Bangkok Bank NVDR *ss. 987,300 2,198 C.P. 7-Eleven 1,020,900 1,557 Kasikornbank Public NVDR *ss. 1,238,600 1,401 Shin 2,804,500 2,528 Siam Commercial Bank 1,534,600 1,690 True Corp., Rights 187,357 0 Total Thailand (Cost $8,483) 9,374 TURKEY 3.0% Common Stocks 3.0% Akbank 493,252,397 2,032 Anadolu Efes Biracilik ve Malt Sanayii 106,246,000 1,461 Dogan Yayin Holding * 687,707,690 2,341 Dogus Otomotiv Servis ve Ticaret (Dogus Otomotiv) * 257,370,800 973 Hurriyet Gazete * 1,664,946,255 3,033 Turkcell Iletisim Hizmetleri * 483,894,054 1,977 Turkcell Iletisim Hizmetleri ADR (USD) ss. 12,600 376 Turkiye Garanti Bankasi * 752,858,940 2,333 Total Turkey (Cost $12,005) 14,526 SHORT-TERM INVESTMENTS 0.0% Money Market Funds 0.0% T. Rowe Price Reserve Investment Fund, 1.33% # 1,000 1 Total Short-Term Investments (Cost $1) 1 SECURITIES LENDING COLLATERAL 6.9% Money Market Pooled Account 6.9% Investment in money market pooled account managed by JP Morgan Chase Bank, London, 1.32% # 33,312,632 33,313 Total Securities Lending Collateral (Cost $33,313) 33,313 Total Investments in Securities 104.4% of Net Assets (Cost $463,370) $ 503,997 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $3,591 and represents 0.5% of net assets ADR American Depository Receipts GDS Global Depository Shares USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Emerging Markets Stock Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Emerging Markets Stock Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of companies located (or with primary operations) in emerging markets. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Emerging Markets The fund may invest in securities of companies located in emerging markets or denominated in or linked to the currencies of emerging market countries. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $38,289,000; aggregate collateral consisted of $33,313,000 in the money market pooled account and U.S. government securities valued at $8,825,000. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $463,370,000. Net unrealized gain aggregated $40,589,000 at period-end, of which $61,498,000 related to appreciated investments and $20,909,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price European Stock Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) AUSTRIA 0.4% Common Stocks 0.4% Erste Bank 74,000 2,871 Total Austria (Cost $1,226) 2,871 BELGIUM 1.5% Common Stocks 1.5% Colruyt 28,700 3,715 Dexia 121,360 2,027 Fortis ss. 101,969 2,198 UCB 78,229 3,600 Total Belgium (Cost $6,055) 11,540 DENMARK 0.6% Common Stocks 0.6% Novo Nordisk ADR, Series B 89,700 4,559 Total Denmark (Cost $2,713) 4,559 FINLAND 1.2% Common Stocks 1.2% Nokia 802,622 9,203 Total Finland (Cost $2,693) 9,203 FRANCE 19.1% Common Stocks 19.1% Aventis ss. 85,760 6,655 AXA 354,356 7,277 BNP Paribas ss. 184,042 10,712 Compagnie de Saint-Gobain 100,492 4,909 Credit Agricole ss. 456,709 10,770 Essilor International 28,688 1,762 France Telecom * 355,070 8,791 Groupe Danone ss. 46,728 3,851 Hermes 29,044 5,605 L'Oreal 22,807 1,634 Lafarge ss. 20,877 1,788 LVMH 63,219 4,313 Neopost 91,039 5,279 Publicis ss. 29,800 807 Sanofi-Synthelabo ss. 220,491 14,616 Schneider Electric 104,847 6,667 Societe Generale ss. 50,955 4,181 Societe Television Francaise 1 ss. 289,103 8,240 Sodexho Alliance ss. 71,255 1,937 Thomson ss. 49,900 929 Total ss. 142,280 27,611 Veolia Environnement 45,400 1,210 Vivendi Universal * 64,738 1,618 Zodiac 62,845 2,155 Total France (Cost $87,741) 143,317 GERMANY 4.6% Common Stocks 4.6% Allianz 16,458 1,590 Bayer 96,382 2,572 Bayerische Hypo-und Vereinsbank * 151,126 2,436 Depfa Bank 227,500 3,107 Deutsche Bank 64,639 4,491 E.On 55,031 3,915 Hypo Real Estate * 271,226 8,412 Medion ss. 48,341 1,044 Rhoen-Klinikum 36,736 1,878 SAP 18,038 2,891 Siemens 26,888 1,886 Total Germany (Cost $26,305) 34,222 GREECE 0.3% Common Stocks 0.3% National Bank of Greece 98,543 2,099 Total Greece (Cost $2,201) 2,099 IRELAND 1.0% Common Stocks 1.0% Bank of Ireland 478,100 6,258 Irish Life & Permanent 100,100 1,520 Total Ireland (Cost $7,144) 7,778 ITALY 6.7% Common Stocks 6.7% Alleanza Assicurazioni 787,240 8,430 Banca Intesa 942,897 3,494 Banco Popolare di Verona e Novara 204,300 3,407 ENI 658,737 13,552 Mediaset 327,590 3,492 Mediolanum ss. 287,110 1,758 Snam Rete Gas 375,500 1,613 Telecom Italia 599,949 1,779 Telecom Italia Mobile 983,835 5,232 Telecom Italia-RNC 781,861 1,679 UniCredito Italiano 1,295,898 6,205 Total Italy (Cost $35,547) 50,641 KAZAKHSTAN 0.5% Common Stocks 0.5% PetroKazakhstan (USD) 117,798 3,728 Total Kazakhstan (Cost $3,338) 3,728 NETHERLANDS 7.8% Common Stocks 7.8% Akzo Nobel 39,578 1,306 ASML Holding *ss. 296,290 4,231 Fortis, (Unified shares) ss. 145,180 3,163 ING Groep GDS 475,488 11,029 Koninklijke Numico *ss. 174,412 5,437 Philips Electronics 493,730 11,963 Reed Elsevier ss. 96,230 1,230 Royal Dutch Petroleum ss. 139,906 7,014 Royal KPN 503,800 3,722 Royal KPN 144A 139,700 1,032 STMicroelectronics ss. 217,142 4,034 Trader.com, Class A * 47,112 528 Versatel Telecom *ss. 377,500 631 Wolters Kluwer GDS 209,430 3,522 Total Netherlands (Cost $44,586) 58,842 NORWAY 0.2% Common Stocks 0.2% Orkla, Series A 48,742 1,173 Total Norway (Cost $272) 1,173 PORTUGAL 0.3% Common Stocks 0.3% Portugal Telecom ss. 204,621 2,097 Total Portugal (Cost $1,378) 2,097 RUSSIA 1.6% Common Stocks 1.6% AO VimpelCom ADR (USD) *ss. 55,500 4,853 Lukoil ADR (USD) 13,540 1,476 Lukoil ADR 144A (USD) 8,230 897 MMC Norilsk Nickel (USD) 29,800 1,502 Mobile Telesystems ADR (USD) 5,200 609 Mobile Telephone ADR 144A (USD) * 14,200 1,662 YUKOS ADR (USD) ss. 63,200 1,082 Total Russia (Cost $10,930) 12,081 SPAIN 7.9% Common Stocks 7.9% Banco Bilbao Vizcaya Argentaria ss. 735,385 9,785 Banco Santander Central Hispano ss. 499,477 4,747 Cortefiel ss. 410,200 4,565 Endesa ss. 226,579 4,122 Gamesa ss. 409,472 5,754 Gas Natural ss. 112,450 2,596 Gestevision Telecino * 353,858 5,590 Inditex ss. 100,600 2,302 Promotora de Informaciones ss. 62,700 1,011 Repsol 151,297 3,211 Sogecable *ss. 111,300 4,118 Telefonica ss. 797,721 11,622 Total Spain (Cost $40,582) 59,423 SWEDEN 3.4% Common Stocks 3.4% Electrolux, Series B 169,549 2,960 Hennes & Mauritz, Series B 231,910 5,968 LM Ericsson * 1,508,174 4,029 Sandvik, Series A 63,500 2,180 Securitas, Series B 635,084 7,158 SKF, Series B 44,200 1,679 Tele2, Series B ss. 48,200 1,916 Total Sweden (Cost $20,016) 25,890 SWITZERLAND 9.5% Common Stocks 9.5% Adecco ADR ss. 224,470 10,424 Compagnie Financiere Richemont, Equity Units, Class A 208,000 5,374 Credit Suisse Group * 342,720 10,999 Nestle 73,088 18,685 Roche Holding, (Participation certificates) 91,440 9,043 UBS 246,868 16,521 Total Switzerland (Cost $43,478) 71,046 TURKEY 0.1% Common Stocks 0.1% Turkiye Garanti Bankasi * 213,974,000 663 Total Turkey (Cost $746) 663 UNITED KINGDOM 32.5% Common Stocks 32.5% Abbey National 78,492 810 AstraZeneca 300,474 13,452 Autonomy * 110,987 337 BHP Billiton PLC 354,600 3,232 British Sky Broadcast 159,173 1,750 Cadbury Schweppes 263,991 2,162 Capita 212,100 1,181 Carnival 28,334 1,386 Centrica 860,240 3,701 Compass 2,022,200 11,763 David S. Smith 421,243 1,218 Diageo 900,401 11,163 Electrocomponents 238,600 1,423 GlaxoSmithKline 1,299,130 26,398 Hays 2,775,052 6,159 Hilton Group 298,000 1,413 ITV 512,551 974 Kesa Electricals 666,583 3,407 Kingfisher 3,029,111 15,650 Logica CMG 357,800 1,071 MFI Furniture Group 640,000 1,537 Reed Elsevier 963,926 8,540 Rio Tinto 99,324 2,589 Royal Bank of Scotland Group 1,110,866 31,242 Sage Group 694,927 2,184 Shell Transport & Trading 2,492,950 18,072 Standard Chartered 293,000 4,848 Taylor Nelson 1,474,017 5,685 Tesco 1,323,500 6,127 Tomkins ADR 1,149,626 5,275 Unilever 814,377 7,193 United Business Media ADR 339,690 3,053 Vodafone Group 13,339,882 28,939 William Morrison Supermarkets 1,392,300 4,584 WPP Group 583,550 5,398 Total United Kingdom (Cost $222,764) 243,916 SHORT-TERM INVESTMENTS 0.6% Money Market Funds 0.6% T. Rowe Price Reserve Investment Fund, 1.33% # 4,455,863 4,456 Total Short-Term Investments (Cost $4,456) 4,456 SECURITIES LENDING COLLATERAL 14.6% Money Market Pooled Account 14.6% Investment in money market pooled account managed by JP Morgan Chase Bank, London (USD), 1.32% # 109,446,939 109,447 Total Securities Lending Collateral (Cost $109,447) 109,447 Total Investments in Securities 114.4% of Net Assets (Cost $673,618) $ 858,992 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $3,591 and represents 0.5% of net assets ADR American Depository Receipts GDS Global Depository Shares USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price European Stock Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The European Stock Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of European companies. Current income is a secondary objective. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $104,519,000; aggregate collateral consisted of $109,447,000 in the money market pooled account. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $673,618,000. Net unrealized gain aggregated $185,377,000 at period-end, of which $228,805,000 related to appreciated investments and $43,428,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price Global Stock Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) AUSTRALIA 0.7% Common Stocks 0.3% BHP Billiton 28,117 260 260 Preferred Stocks 0.4% News Corporation 32,434 262 262 Total Australia (Cost $419) 522 AUSTRIA 0.7% Common Stocks 0.7% Erste Bank 12,800 497 Total Austria (Cost $429) 497 BRAZIL 0.8% Common Stocks 0.8% Petroleo Brasileiro (Petrobras) ADR (USD) 10,807 277 Tele Norte Leste Participacoes ADR (USD) 26,700 349 Total Brazil (Cost $536) 626 CHINA 0.3% Common Stocks 0.3% China Mengnui Dairy, 144A (HKD) * 54,000 34 China Telecom, 144A (HKD) * 532,000 176 Total China (Cost $185) 210 DENMARK 0.5% Common Stocks 0.5% Novo Nordisk, Series B 7,185 365 Total Denmark (Cost $237) 365 FRANCE 5.2% Common Stocks 5.2% Atos Origin * 5,000 295 AXA 29,500 606 Credit Agricole 13,689 323 France Telecom * 10,800 267 Groupe Danone 2,400 198 Hermes 1,823 352 Neopost 8,930 518 Publicis ss. 7,700 208 Societe Television Francaise 1 ss. 7,569 215 Total, Series B 3,714 721 Zodiac 6,100 209 Total France (Cost $3,395) 3,912 GERMANY 2.3% Common Stocks 2.3% Bayerische Hypo-und Vereinsbank * 22,084 356 BMW 3,200 142 Depfa Bank 37,800 516 Hypo Real Estate * 24,100 748 Total Germany (Cost $1,890) 1,762 GREECE 0.2% Common Stocks 0.2% Greek Organization of Football Prognostics 8,900 172 Total Greece (Cost $177) 172 INDIA 0.9% Common Stocks 0.9% Balaji Telefilms 64,571 105 I-Flex Solutions * 13,700 156 Kotak Mahindra Finance 20,500 157 Zee Telefilms 77,500 235 Total India (Cost $666) 653 IRELAND 1.5% Common Stocks 1.5% Bank of Ireland 28,700 376 CRH 15,900 359 Irish Life & Permanent 24,400 370 Total Ireland (Cost $1,210) 1,105 ITALY 2.5% Common Stocks 2.5% Bulgari 45,300 445 ENI 14,939 307 Lottomatica 18,200 457 RCS MediaGroup 85,300 349 UniCredito Italiano 73,530 352 Total Italy (Cost $1,732) 1,910 JAPAN 9.8% Common Stocks 9.8% Amano 15,000 127 Bridgestone 7,000 126 Canon 3,800 186 Credit Saison 6,700 203 Eisai 5,200 153 Hitachi 20,000 122 Honda Motor 4,500 219 House Foods 9,800 130 Ito-Yokado 3,000 117 Itochu * 29,000 112 Keihin Electric Express Railway ss. 37,000 218 Kokuyo 12,900 153 Komatsu ss. 19,000 112 Kyocera 1,600 123 Marui 15,300 185 Matsushita Electric Industrial 12,000 160 Mitsubishi Heavy Industries 42,000 110 Mitsubishi Tokyo Financial 21 188 Mitsui Sumitomo Insurance 19,000 176 Mizuho Financial Group 35 133 Murata Manufacturing 1,800 89 NEC 22,000 137 Nintendo 1,100 122 Nippon Express 30,000 159 Nippon Kayaku 31,000 168 Nippon Oil 13,000 80 Nippon Steel 99,000 201 Nippon Telegraph & Telephone 23 115 Nissan Motor 13,400 145 Nitto Denko 2,200 92 Nomura 13,000 178 NTT DoCoMo 79 138 Okumura 28,000 132 Resona Holdings *ss. 58,000 89 Rohm 1,200 128 Sanyo Electric ss. 25,000 95 Sapporo Breweries ss. 42,000 157 Seven-Eleven Japan 3,000 92 Sharp ss. 8,000 116 Softbank ss. 1,900 67 Sony 5,000 175 Sumitomo Metal Mining 11,000 66 Sumitomo Mitsui Financial ss. 25 151 Takeda Chemical Industries 4,600 215 TDK 2,200 152 TEPCO 8,700 197 Tokyo Gas 49,000 175 Toyota Motor 11,100 446 UFJ * 23 92 Yamanouchi Pharmaceutical 3,400 117 Total Japan (Cost $6,874) 7,339 MEXICO 0.9% Common Stocks 0.9% America Movil ADR, Series L (USD) 8,800 314 Grupo Televisa ADR (USD) 1,800 85 Wal-Mart de Mexico, Series V 78,726 240 Total Mexico (Cost $467) 639 NETHERLANDS 0.6% Common Stocks 0.6% Koninklijke Numico *ss. 8,126 253 Royal Dutch Petroleum 4,470 224 Total Netherlands (Cost $367) 477 NORWAY 0.4% Common Stocks 0.4% DnB Holding 48,000 329 Total Norway (Cost $325) 329 RUSSIA 0.3% Common Stocks 0.3% AO VimpelCom ADR (USD) * 2,900 254 Total Russia (Cost $269) 254 SINGAPORE 0.4% Common Stocks 0.4% United Overseas Bank 38,232 305 Total Singapore (Cost $240) 305 SOUTH AFRICA 0.5% Common Stocks 0.5% Investec 18,900 350 Total South Africa (Cost $382) 350 SOUTH KOREA 0.2% Common Stocks 0.2% Samsung Electronics 491 175 Total South Korea (Cost $29) 175 SPAIN 4.1% Common Stocks 4.1% Acerinox ss. 26,800 371 Aldeasa 12,700 365 Banco Bilbao Vizcaya Argentaria 26,790 357 Cortefiel 26,700 297 Gamesa 15,000 211 Gestevision Telecino * 26,900 425 Promotora de Informaciones 31,200 503 Sogecable *ss. 14,200 525 Total Spain (Cost $2,693) 3,054 SWEDEN 1.0% Common Stocks 1.0% Alfa Laval 23,300 372 LM Ericsson, Series B * 64,880 173 SKF, Series B 5,400 205 Total Sweden (Cost $715) 750 SWITZERLAND 3.8% Common Stocks 3.8% Compagnie Financiere Richemont, Equity Units, Class A 17,000 439 Credit Suisse Group * 10,165 326 Nestle 2,757 705 Novartis 6,000 269 UBS 12,800 857 Zurich Financial Services * 1,600 226 Total Switzerland (Cost $2,389) 2,822 TAIWAN 0.7% Common Stocks 0.7% China Trust Finance 196,840 201 Quanta Computer * 125,448 203 Taishin Financial Holdings * 118,000 90 Total Taiwan (Cost $584) 494 UNITED KINGDOM 7.2% Common Stocks 7.2% AstraZeneca 5,843 262 Bodycote 72,600 195 British Sky Broadcast 40,765 448 Capita 74,300 414 Carnival 8,223 402 Compass 74,770 435 Dixons 69,300 202 GlaxoSmithKline 32,106 652 Hays 166,067 369 HSBC (HKD) ss. 8,000 118 Kesa Electricals 29,105 149 Kingfisher 101,759 526 Reckitt Benckiser 5,954 163 Royal Bank of Scotland Group 23,533 662 Signet Group 212,800 420 Total United Kingdom (Cost $4,865) 5,417 UNITED STATES 51.4% Common Stocks 51.4% Accenture, Class A * 27,300 672 ACE 7,100 288 Adobe Systems 7,800 329 Affiliated Computer Services, Class A * 8,700 452 Altria Group 7,300 347 American Express 16,200 814 American International Group 14,900 1,053 AmeriTrade * 23,100 256 Amgen * 11,600 660 Analog Devices 7,800 310 Anthem * 7,700 635 Apollo Group, Class A * 8,200 685 Applied Materials * 14,200 241 Baker Hughes 17,700 713 Best Buy 9,100 438 Boston Scientific * 5,600 214 Cardinal Health 700 31 Carnival 10,900 508 Cendant 20,100 460 Cisco Systems * 30,300 632 Citigroup 40,700 1,794 Coca-Cola 9,800 430 Comcast, Class A * 23,600 632 Corning * 20,200 250 Danaher 14,200 719 Dell * 26,100 926 eBay * 5,200 407 EchoStar Communications, Class A * 21,900 607 Exxon Mobil 20,808 963 Family Dollar Stores 7,700 215 Fannie Mae 6,400 454 First Data 6,400 286 Fiserv * 12,800 439 Forest Laboratories * 6,900 347 GE 38,200 1,270 Gilead Sciences * 4,700 304 Guidant 500 28 Harley-Davidson 4,600 275 Hartford Financial Services 5,200 339 Home Depot 16,550 558 InterActiveCorp * 14,700 401 Intel 15,600 380 International Game Technology 13,800 446 Johnson & Johnson 8,300 459 Juniper Networks * 6,100 140 Liberty Media, Class A * 53,200 451 Medtronic 7,000 348 Mellon Financial 17,900 492 Mercury Interactive * 4,200 154 Merrill Lynch 10,100 502 Microsoft 64,300 1,830 Nextel Communications, Class A * 25,500 580 Nucor 6,300 527 Oracle * 12,000 126 Pfizer 30,410 972 QUALCOMM 1,600 111 Red Hat * 6,400 110 Schlumberger 8,100 521 Scripps, Class A 4,200 430 SLM Corporation 15,400 584 State Street 20,300 869 Stryker 8,000 381 Sysco 11,000 379 Target 19,000 828 Tyco International 21,600 670 U.S. Bancorp 20,100 569 UnitedHealth Group 18,000 1,132 Univision Communications, Class A * 9,900 287 UPS, Class B 6,900 497 VERITAS Software * 9,200 175 Viacom, Class B 11,500 386 Wal-Mart 12,200 647 Walgreen 12,200 444 Wyeth 4,000 142 Xilinx 7,200 212 Yahoo! * 12,000 370 Total United States (Cost $31,195) 38,533 SHORT-TERM INVESTMENTS 3.5% Money Market Funds 3.5% T. Rowe Price Reserve Investment Fund, 1.33% # 2,640,933 2,641 Total Short-Term Investments (Cost $2,641) 2,641 SECURITIES LENDING COLLATERAL 2.6% Money Market Pooled Account 2.6% Investment in money market pooled account managed by JP Morgan Chase Bank, London, 1.32% # 1,918,962 1,919 Total Securities Lending Collateral (Cost $1,919) 1,919 Total Investments in Securities 103.0% of Net Assets (Cost $66,830) $ 77,232 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $210 and represents 0.3% of net assets ADR American Depository Receipts HKD Hong Kong dollar USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Global Stock Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Global Stock Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of established companies throughout the world, including the U.S. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $1,827,000; aggregate collateral consisted of $1,919,000 in the money market pooled account. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $66,830,000. Net unrealized gain aggregated $10,401,000 at period-end, of which $12,341,000 related to appreciated investments and $1,940,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price International Discovery Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) AUSTRALIA 5.9% Common Stocks 5.9% Aristocrat Leisure ss. 3,518,300 12,744 Challenger Financial Services Group * 5,565,600 1,879 Downer EDI 1,886,300 4,378 GRD NL 1,540,157 2,091 Independent Practitioner * 33,682,400 1,587 Lihir Gold * 5,634,200 4,320 Minara Resources * 2,884,000 4,544 Oceana Gold * 2,543,144 1,538 Oceana Gold (Regulation S shares) * 2,950,100 1,784 Tap Oil * 3,329,100 3,817 United Group ss. 896,445 3,367 Unwired Australia * 5,076,793 2,214 Unwired Group * 1,000,000 436 Worley Group 144A 1,217,400 2,826 Total Australia (Cost $40,362) 47,525 BELGIUM 1.8% Common Stocks 1.8% Melexis 314,379 3,298 Telindus Group 359,200 2,960 UCB 178,270 8,204 Total Belgium (Cost $10,446) 14,462 CHINA 1.3% Common Stocks 1.3% China Insurance (HKD) 6,888,000 2,848 Panva Gas Holdings (HKD) 144A * 5,847,000 2,511 Shanghai Forte Land Company (H shares) (HKD) ss.* 7,498,000 1,721 tom.com (HKD) ss.* 15,404,000 3,535 Total China (Cost $13,206) 10,615 DENMARK 0.5% Common Stocks 0.5% Ringkjoebing Landbobank 14,014 4,292 Total Denmark (Cost $3,869) 4,292 FINLAND 3.1% Common Stocks 3.1% CapMan Oyj ss. 1,622,900 3,124 Elisa, Series A * 493,066 6,347 Pohjola Group ss. 354,150 3,549 Rapala VMC 1,039,118 7,314 Vacon 336,700 4,452 Total Finland (Cost $21,394) 24,786 FRANCE 6.2% Common Stocks 6.2% Acadomia Group 38,700 2,089 Avenir Telecom * 1,009,134 1,481 Boiron 132,000 3,367 Camaieu 38,010 3,439 Cegedim 48,935 3,512 Clarins 3,616 239 Gl Trade 40,083 1,446 Gl Trade (Regulation S shares) 60,000 2,165 ILOG * 359,700 3,808 Ipsos 71,023 7,212 Lectra 60,800 475 Neopost 164,015 9,511 Oeneo * 369,428 1,169 Oeneo, Warrants, 8/26/06 * 169,728 31 Spir Communication 62,017 9,901 Total France (Cost $39,429) 49,845 GERMANY 8.1% Common Stocks 6.9% AWD Holding ss. 117,800 4,126 Boewe Systec 88,377 4,099 Dis Deutscher 144A 325,000 9,423 Evotec OAI * 596,342 2,117 GFK 398,581 10,885 IDS Scheer 468,100 8,532 K&S 343,800 12,727 Medion ss. 193,995 4,189 56,098 Preferred Stocks 1.2% Draegerwerk 94,700 5,059 Rheinmetall 117,800 4,592 9,651 Total Germany (Cost $54,222) 65,749 GREECE 1.6% Common Stocks 1.6% Folli-Follie 142,700 4,715 Germanos, Restricted 144A * 300,000 7,904 Total Greece (Cost $11,482) 12,619 HONG KONG 3.6% Common Stocks 3.6% Dickson Concepts 4,119,000 4,515 Giordano 7,846,000 4,753 Grande Holdings 2,960,000 2,657 Lifestyle International ss.* 3,220,500 4,397 Linmark Group ss. 10,067,000 3,614 Moulin International Holdings 144A 2,782,000 1,641 Next Media ss.* 6,442,000 2,395 Oriental Press Group 7,944,000 3,030 Varitronix ss. 2,728,000 2,553 Total Hong Kong (Cost $25,415) 29,555 INDIA 4.9% Common Stocks 4.9% Arvind Mills * 1,871,700 3,075 Balaji Telefilms 1,471,100 2,379 Bombay Dyeing 748,000 2,452 CESC * 973,300 2,366 Colgate-Palmolive (India) 757,600 2,393 Gujarat Mineral Development 372,000 1,530 HDFC Bank 272,000 2,200 Himatsingka Seide 112,000 824 Hindalco Industries 45,648 1,082 I-Flex Solutions * 127,550 1,455 I-Flex Solutions 144A * 104,456 1,191 Indian Hotels 309,200 2,394 Kotak Mahindra Finance 314,000 2,409 Petronet LNG * 4,571,693 2,174 Power Trading 1,835,200 1,973 Tata Tea 160,900 1,457 Uti Bank 927,800 2,559 Welspun Gujarat Stahl * 2,213,900 1,554 Welspun India * 948,850 1,752 Zee Telefilms 948,000 2,872 Total India (Cost $34,186) 40,091 IRELAND 0.7% Common Stocks 0.7% Icon ADR (USD) * 151,720 5,606 Total Ireland (Cost $2,277) 5,606 ISRAEL 0.6% Common Stocks 0.6% Partner Communications ADR (USD) * 720,296 5,114 Total Israel (Cost $13,851) 5,114 ITALY 1.8% Common Stocks 1.8% Immsi 2,902,000 5,038 Sorin ss.* 3,303,860 9,361 Total Italy (Cost $10,660) 14,399 JAPAN 20.4% Common Stocks 20.4% Aica Kogyo 267,000 3,301 Air Water 795,000 5,261 Arisawa Manufacturing 91,400 3,750 Arnest One 188,500 5,585 As One Corporation * 115,700 3,080 Axell Corporation 308 1,961 BSL Corporation 872,000 1,777 Central Glass 584,000 4,410 Century Leasing System 264,900 2,861 Culture Convenience 237,600 2,987 D&M Holdings * 543,000 1,521 Doshisha 103,200 4,374 Hisamitsu Pharmaceutical 257,000 4,567 I Rom 1,366 3,066 JSP Corporation 213,200 2,902 Kanto Denka Kogyo 679,000 3,286 Leopalace21 ss. 272,100 5,411 Macromill * 46 308 Meiko Electronics 73,100 1,949 NHK Spring 677,000 4,340 Nichi-iko Pharmaceutuical 288,000 3,155 Nihon International Electronics 190,000 1,638 Nihon Kohden 214,000 2,765 Nihon Parkerizing 240,000 1,696 Nihon Trim 36,300 2,705 Nissan Shatai 86,000 550 Nissen 155,800 3,036 Nitori 72,550 4,475 NTN ss. 910,000 4,731 Okinawa Cellular Telephone 341 3,276 Paltac 197,600 3,566 Phoenix Electric * 62,800 2,825 Point Inc. 58,400 1,421 Point Inc. (new issued shares) * 52,350 1,274 Roland DG Corporation 60,100 2,633 Ryobi 1,056,000 3,954 Sanei-International 65,000 2,329 Sansui Electric (Ordinary shares) * 1,480,000 399 SEIKO 419,000 2,919 Shoei Company 117,200 1,869 SMBS Friend Securities * 979,000 6,065 Sumitomo Heavy Industries ss.* 1,519,000 4,173 Sumitomo Rubber Industries 491,000 4,267 Takamatsu 58,000 1,536 Tohokushinsha Film 93,700 2,650 Tokyo Steel Manufacturing ss. 161,000 2,457 Tomen Electronics 51,900 2,540 Toyota Tsusho 436,000 4,541 Tsumura & Company ss. 280,000 4,043 U's BMB Entertainment 661,000 3,211 USS ss. 90,320 7,299 Yamato Kogyo 390,000 4,713 Total Japan (Cost $155,545) 165,408 LIECHTENSTEIN 0.3% Common Stocks 0.3% Verwaltungs-und Privat-Bank (CHF) 19,850 2,696 Total Liechtenstein (Cost $2,127) 2,696 MALAYSIA 1.7% Common Stocks 1.7% Berjaya Sports Toto 1,330,250 1,295 CIMB Berhad 803,600 1,142 Hong Leong Bank 1,915,000 2,570 IJM 1,381,900 1,717 Magnum 2,389,300 1,522 Pos Malaysia & Services Holdings 1,356,300 764 Symphony House * 5,842,950 1,353 Symphony House, Warrants, 4/28/09 * 1,028,850 80 Transmile Group 1,696,700 3,259 Total Malaysia (Cost $12,049) 13,702 NETHERLANDS 1.1% Common Stocks 1.1% Van der Moolen Holding ss.* 762,500 4,825 Versatel Telecom ss.* 2,423,400 4,053 Total Netherlands (Cost $11,709) 8,878 NEW ZEALAND 0.9% Common Stocks 0.9% Fisher & Paykel Healthcare ss. 560,604 4,826 Sky Network Television ss.* 717,000 2,410 Total New Zealand (Cost $4,654) 7,236 NORWAY 0.8% Common Stocks 0.8% Norwegian Air Shuttle * 884,500 1,553 Visma ASA ss. 572,600 5,110 Total Norway (Cost $10,358) 6,663 SINGAPORE 1.0% Common Stocks 1.0% Creative Technology 205,600 2,092 GES International 4,114,000 1,627 Goodpack 4,271,000 2,385 Keppel 479,000 2,034 Total Singapore (Cost $7,394) 8,138 SOUTH KOREA 1.4% Common Stocks 1.4% Amorepacific 16,130 2,869 Handsome 211,960 1,631 LG Ad 154,900 2,570 NCsoft * 31,740 2,320 Plenus 278,450 2,140 Total South Korea (Cost $12,999) 11,530 SPAIN 1.2% Common Stocks 1.2% Baron de Ley ss.* 99,455 3,911 Cortefiel ss. 492,300 5,479 Total Spain (Cost $7,963) 9,390 SWEDEN 2.8% Common Stocks 2.8% Bergman & Beving 658,415 4,633 D. Carnegie 549,000 4,489 Observer 991,725 3,334 Proffice, Series B * 1,179,600 2,705 Teleca ss.* 1,650,400 7,914 Total Sweden (Cost $23,999) 23,075 SWITZERLAND 2.0% Common Stocks 2.0% Bachem Holding, Class B 75,100 4,169 Baloise ss. 125,100 4,905 Basilea Pharmaceut * 81,400 4,531 TEMENOS Group * 353,559 2,888 Total Switzerland (Cost $18,338) 16,493 TAIWAN 2.1% Common Stocks 2.1% Advantech 1,402,714 2,744 Basso Industry * 1,084,000 2,089 Far Eastone Telecom * 3,264,270 3,227 Merry Electronics * 1,767,471 3,822 Min Aik Technology 980,100 1,485 Taiflex Scientific * 768,000 1,310 Test Rite * 4,548,000 2,382 Total Taiwan (Cost $17,086) 17,059 THAILAND 0.2% Common Stocks 0.2% C.P. 7-Eleven 1,165,900 1,778 Total Thailand (Cost $1,954) 1,778 UNITED KINGDOM 14.2% Common Stocks 14.2% 3i Group 813,500 8,450 Arena Leisure * 4,918,756 3,780 Benfield Group 1,823,800 7,747 BRIT Insurance Holdings 2,676,800 3,944 Cairn Energy * 325,500 8,379 Carphone Warehouse 1,873,800 4,619 Close Brothers Group 335,400 4,070 Collins Stewart Tullett 591,600 3,734 Dignity Caring Funeral Service * 1,377,200 6,727 Eidos * 3,730,453 6,549 Galen 527,743 5,760 Incepta Group 3,344,700 4,959 Investec 298,100 5,640 ITE Group 3,476,800 4,064 Marlborough Stirling 8,544,273 7,461 Merchant Retail Group 2,500,000 6,435 Moneybox * 4,590,700 3,466 N Brown 1,597,022 3,087 PHS Group 4,809,400 6,562 Pinewood Shepperton * 984,200 3,491 Taylor Nelson 1,631,792 6,293 Total United Kingdom (Cost $112,970) 115,217 UNITED STATES 0.6% Common Stocks 0.6% deCODE GENETICS * 753,200 5,159 Total Common Stocks (Cost $3,634) 5,159 SHORT-TERM INVESTMENTS 7.0% Money Market Funds 7.0% T. Rowe Price Reserve Investment Fund, 1.33% # 56,281,026 56,281 Total Short-Term Investments (Cost $56,281) 56,281 SECURITIES LENDING COLLATERAL 7.7% Money Market Pooled Account 7.7% Investment in money market pooled account managed by JP Morgan Chase Bank, London (USD), 1.32% # 62,078,317 62,078 Total Securities Lending Collateral (Cost $62,078) 62,078 Total Investments in Securities 105.5% of Net Assets (Cost $801,937) $ 855,439 # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $25,496 and represents 3.1% of net assets ADR American Depository Receipts CHF Swiss franc HKD Hong Kong dollar USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price International Discovery Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The International Discovery Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of rapidly growing, small to medium-sized companies outside the U.S. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Emerging Markets The fund may invest in securities of companies located in emerging markets or denominated in or linked to the currencies of emerging market countries. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $59,478,000; aggregate collateral consisted of $62,078,000 in the money market pooled account and U.S. government securities valued at $436,000. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $801,937,000. Net unrealized gain aggregated $53,353,000 at period-end, of which $117,888,000 related to appreciated investments and $64,535,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price International Growth & Income Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) AUSTRALIA 6.5% Common Stocks 6.5% Australia & New Zealand Banking 148,033 1,880 Bluescope Steel ss. 464,743 2,419 Boral 421,009 2,147 Coles Myer 143,948 900 Downer EDI 220,561 512 Insurance Australia Group 321,532 1,126 Macquarie Bank ss. 54,952 1,276 Mirvac 302,337 968 National Australia Bank 118,839 2,229 Nufarm 211,675 907 Oil Search 666,158 633 Publishing & Broadcasting 153,196 1,455 Qantas Airways 233,190 572 QBE Insurance ss. 182,434 1,601 Santos 384,359 1,960 Westfield Group, REIT *ss. 120,609 1,285 Westpac Banking 94,562 1,121 Total Australia (Cost $20,732) 22,991 AUSTRIA 0.7% Common Stocks 0.7% Bank Austria Creditanstalt ss. 29,334 1,730 Voestalpine ss. 12,130 573 Total Austria (Cost $2,078) 2,303 BELGIUM 0.8% Common Stocks 0.8% Dexia 58,053 970 KBC Bank 19,391 1,094 Umicore 10,218 637 Total Belgium (Cost $2,445) 2,701 BRAZIL 0.6% Common Stocks 0.6% Petroleo Brasileiro (Petrobras) ADR (USD) 47,300 1,213 Tele Norte Leste Participacoes ADR (USD) 56,800 742 Total Brazil (Cost $1,916) 1,955 CHILE 0.1% Common Stocks 0.1% Banco Santander Chile ADR (USD) 16,400 436 Total Chile (Cost $402) 436 CHINA 0.6% Common Stocks 0.6% China Overseas Land (HKD) 4,166,000 823 China Unicom (HKD) ss. 982,000 736 Semiconductor Manufacturing ADR (USD) * 29,700 322 TCL (HKD) 1,024,000 305 Total China (Cost $2,621) 2,186 DENMARK 0.6% Common Stocks 0.6% Danske Bank 59,411 1,368 TDC 26,987 878 Total Denmark (Cost $2,218) 2,246 EUROPE/FAR EAST 0.5% Common Stocks 0.5% iShares MSCI EAFE (USD) 13,200 1,807 Total Europe/Far East (Cost $1,816) 1,807 FINLAND 0.5% Common Stocks 0.5% Kesko 82,871 1,593 Total Finland (Cost $1,357) 1,593 FRANCE 9.3% Common Stocks 9.3% Accor 28,857 1,225 Aventis ss. 22,355 1,735 BNP Paribas 60,727 3,535 Bouygues 60,486 2,032 CNP Assurances ss. 19,138 1,078 Compagnie de Saint-Gobain 24,408 1,192 Lafarge ss. 14,612 1,252 Pernod-Ricard 9,058 1,084 Pinault Printemps Redoute 8,480 827 Publicis ss. 57,651 1,562 Renault 57,304 4,519 Sanofi-Synthelabo ss. 40,472 2,683 Societe Generale 33,727 2,767 Thomson 75,670 1,409 Total 29,196 5,666 TotalFinaElf ADR (USD) 600 58 Total France (Cost $30,577) 32,624 GERMANY 8.4% Common Stocks 7.9% Allianz 27,650 2,671 Altana 30,906 1,673 BASF 25,629 1,365 Celesio 19,752 1,260 DaimlerChrysler 33,696 1,504 Deutsche Bank 16,525 1,148 E.On 45,170 3,213 Hannover Rueckversicherung ss. 17,838 567 Hypo Real Estate * 78,407 2,432 Jenoptik *ss. 27,805 251 MAN 19,113 709 METRO 62,465 2,866 Munich Re 16,534 1,587 RWE 32,572 1,595 SAP 7,413 1,188 Siemens 46,123 3,236 Volkswagen 13,061 530 27,795 Preferred Stocks 0.5% Fresenius 8,360 619 Hugo Boss ss. 48,987 1,144 1,763 Total Germany (Cost $28,485) 29,558 HONG KONG 2.8% Common Stocks 2.8% Esprit Holdings 168,500 752 Hang Lung Development 816,000 1,166 Hong Kong Electric 310,000 1,331 Hutchison Whampoa 548,800 3,694 Smartone Telecommunications 458,000 499 Wheelock 686,000 893 Yue Yuen Industrial ss. 542,500 1,346 Total Hong Kong (Cost $9,842) 9,681 IRELAND 0.7% Common Stocks 0.7% Anglo Irish Bank 95,117 1,499 DCC 60,396 1,050 Total Ireland (Cost $2,226) 2,549 ITALY 4.3% Common Stocks 4.3% Banche Poplari Unite 48,176 786 ENI 267,281 5,499 ENI S.P.A. ADR (USD) 1,500 154 Milano Assicurazioni * 279,207 1,075 Mondadori ss. 96,861 901 Saipem 67,292 640 San Paolo IMI 70,678 808 San Paolo IMI ADR (USD) 1,500 34 Telecom Italia Mobile 385,829 2,051 UniCredito Italiano 423,043 2,030 Unipol ss. 324,205 1,186 Total Italy (Cost $14,614) 15,164 JAPAN 20.2% Common Stocks 20.2% Alpine Electronics ss. 49,000 647 Bank of Yokohama ss. 491,000 2,667 Canon 49,000 2,393 Dai Nippon Printing 101,000 1,430 Denki Kagaku Kogyo Kabushiki Kaisha 243,000 792 Fuji Heavy Industries ss. 247,000 1,353 Glory ss. 43,000 579 Goldcrest ss. 21,010 1,358 Heiwa 30,500 464 Honda Motor 36,100 1,757 Kaneka 129,000 1,130 KDDI 344 1,757 Kirin Brewery ss. 153,000 1,497 Kobayashi Pharmaceutical 24,100 645 Koito Manufacturing ss. 144,000 1,143 Mitsubishi 177,000 1,704 Mitsubishi Heavy Industries 650,000 1,698 Mitsui Sumitomo Insurance 204,000 1,887 NEC 144,000 899 NEC Fielding ss. 22,200 498 NEC Soft ss. 34,400 834 Nippon Express 376,000 1,989 Nippon Mining Holdings ss. 254,500 1,069 Nippon Yusen ss. 492,000 2,257 Nipponkoa Insurance ss. 129,000 795 Nipro 55,000 823 Nomura 44,000 604 Noritsu Koki 16,000 348 Promise 29,600 1,919 Shimadzu 340,000 1,526 Sony 52,900 1,857 Sony ADR (USD) 1,500 52 Sumitomo 234,000 1,635 Sumitomo Mitsui Financial ss. 255 1,536 Takeda Chemical Industries 60,300 2,821 TDK 12,300 850 TDK ADR (USD) 500 35 Teijin ss. 422,000 1,466 Terumo ss. 73,600 1,784 The 77 Bank 154,000 971 Toho Gas 487,000 1,561 Tohoku Electric Power 168,800 2,774 Tonen General Sekiyu ss. 196,000 1,572 Toppan Forms ss. 73,000 939 Toyota Motor 197,700 7,952 Uniden ss. 28,000 576 World Company ss. 19,000 534 Yamaha 63,200 959 Yamanouchi Pharmaceutical 63,300 2,171 York-Benimaru 22,000 578 Total Japan (Cost $67,279) 71,085 MALAYSIA 0.1% Common Stocks 0.1% Astro All Asia * 153,000 184 Astro All Asia 144A * 84,200 102 Total Malaysia (Cost $283) 286 MEXICO 1.3% Common Stocks 1.3% America Movil ADR, Series L (USD) 26,100 933 Cemex 132,975 752 Grupo Financiero Banorte 258,800 953 Telmex ADR (USD) 30,100 929 Wal-Mart de Mexico, Series B 278,300 849 Total Mexico (Cost $4,065) 4,416 NETHERLANDS 3.6% Common Stocks 3.6% ABN Amro ADR (USD) 3,000 63 ABN Amro Holdings ss. 89,988 1,884 Akzo Nobel 28,755 949 Corio 28,434 1,213 DSM ss. 22,707 1,139 European Aeronautic Defense & Space ss. 70,051 1,930 Fortis, (Unified shares) ss. 66,835 1,456 ING Groep GDS 42,467 985 Koninklijke Wessanen GDS ss. 64,687 896 OCE 20,178 304 Philips Electronics 79,849 1,935 Total Netherlands (Cost $11,978) 12,754 NORWAY 1.5% Common Stocks 1.5% Norsk Hydro 22,245 1,407 Statoil ASA 302,692 3,792 Yara International * 17,498 155 Total Norway (Cost $4,710) 5,354 SINGAPORE 1.6% Common Stocks 1.6% Creative Technology 80,200 816 Fraser & Neave 191,700 1,583 Sembcorp 1,764,000 1,324 Singapore Press 252,250 631 United Overseas Bank 180,336 1,437 Total Singapore (Cost $5,657) 5,791 SOUTH KOREA 0.6% Common Stocks 0.6% SK Telecom ADR (USD) 119,960 2,119 Total South Korea (Cost $2,476) 2,119 SPAIN 2.2% Common Stocks 2.2% Acciona 29,436 1,758 Banco Santander Central Hispano ss. 289,349 2,750 Banco Santander Central Hispano ADR (USD) 4,100 39 Enagas 78,049 856 Gestevision Telecino * 13,032 206 Iberdrola 65,577 1,341 Indra Sistemas 56,302 718 Total Spain (Cost $7,659) 7,668 SWEDEN 4.6% Common Stocks 4.6% Autoliv GDR 43,500 1,808 Electrolux, Series B 71,761 1,253 ForeningsSparbanken, Series A 68,260 1,227 Nobia 67,465 765 NORDEA 685,105 4,664 Peab 125,115 771 SKF, Series B 32,875 1,249 SSAB Svenskt Stal, Series A 94,030 1,685 Svenska Handelsbanken, Series A 104,813 1,953 Tele2, Series B ss. 21,160 841 Total Sweden (Cost $15,841) 16,216 SWITZERLAND 4.3% Common Stocks 4.3% Kaba Holding 1,857 363 Nestle 17,243 4,408 Novartis 102,997 4,610 Swisscom 3,982 1,295 UBS 59,269 3,967 UBS (Registered shares) (USD) 316 21 Vontobel 22,495 431 Total Switzerland (Cost $14,732) 15,095 THAILAND 0.1% Common Stocks 0.1% Total Access Communications (USD) * 188,000 519 Total Thailand (Cost $458) 519 UNITED KINGDOM 22.3% Common Stocks 22.3% Aegis 588,399 896 Alliance & Leicester 60,282 930 Alliance UniChem 98,671 1,185 AMEC 226,952 1,124 Anglo American 104,429 2,219 Associated British Foods 225,084 2,580 AstraZeneca ADR (USD) 39,600 1,779 Aviva 204,024 2,078 Barclays 12,549 105 Barclays ADR (USD) 126,100 4,265 BBA 225,790 1,076 BP ADR (USD) 200,800 11,317 Bradford & Bingley 189,528 927 Cadbury Schweppes ADR (USD) 57,100 1,887 Centrica 301,968 1,299 Close Brothers Group 32,082 389 Compass 120,580 701 Dixons 625,645 1,827 Galen 73,850 806 GlaxoSmithKline ADR (USD) 79,700 3,264 Guinness Peat Group (NZD) 344,051 432 Hanson 91,527 636 HBOS 191,969 2,488 Hilton Group 404,688 1,920 HSBC 270,409 3,972 Imperial Chemical 179,017 739 Imperial Chemical ADR (USD) 2,600 43 J Sainsbury 131,300 644 Kesa Electricals 63,847 326 Marks & Spencer ss. 173,420 1,095 Mitchells & Butlers 159,915 785 mm02 * 1,930,074 3,142 Persimmon 80,574 857 Pilkington 463,482 809 Prudential 78,979 652 Rolls-Royce Group 485,137 2,129 Royal & Sun Alliance 562,686 791 Royal Bank of Scotland Group 195,268 5,492 Shell Transport & Trading ADR (USD) 109,400 4,792 Tesco 320,647 1,484 United Utilities 77,379 726 United Utilities, Class A 19,244 115 Vodafone ADR (USD) 179,800 3,907 Total United Kingdom (Cost $74,435) 78,630 SHORT-TERM INVESTMENTS 4.6% Money Market Funds 4.6% T. Rowe Price Reserve Investment Fund, 1.33% # 16,114,745 16,115 Total Short-Term Investments (Cost $16,115) 16,115 SECURITIES LENDING COLLATERAL 9.6% Money Market Pooled Account 9.6% Investment in money market pooled account managed by JP Morgan Chase Bank, London, 1.32% (USD) # 33,747,928 33,748 Total Securities Lending Collateral (Cost $33,748) 33,748 Total Investments in Securities 113.0% of Net Assets (Cost $380,765)$ 397,590 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $102 and represents 0.03% of net assets ADR American Depository Receipts GDR Global Depository Receipts GDS Global Depository Shares HKD Hong Kong dollar NZD New Zealand dollar REIT Real Estate Investment Trust USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price International Growth & Income Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The International Growth & Income Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital and reasonable income through investments primarily in the common stocks of well-established, dividend-paying non-U.S. companies. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $32,279,000; aggregate collateral consisted of $33,748,000 in the money market pooled account. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $380,765,000. Net unrealized gain aggregated $16,823,000 at period-end, of which $24,382,000 related to appreciated investments and $7,559,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price International Stock Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) AUSTRALIA 1.2% Common Stocks 0.7% BHP Billiton 3,684,207 34,153 34,153 Preferred Stocks 0.5% News Corporation ss. 2,825,772 22,797 22,797 Total Australia (Cost $38,640) 56,950 BELGIUM 0.3% Common Stocks 0.3% Fortis 266,312 5,742 UCB 163,043 7,503 Total Belgium (Cost $5,099) 13,245 BRAZIL 1.0% Common Stocks 1.0% Petroleo Brasileiro (Petrobras) ADR (USD) ss. 778,631 19,972 Tele Norte Leste Participacoes ADR (USD) ss. 2,089,700 27,291 Total Brazil (Cost $37,948) 47,263 CANADA 0.3% Common Stocks 0.3% Research In Motion (USD) *ss. 272,800 16,824 Total Canada (Cost $10,648) 16,824 CHINA 0.3% Common Stocks 0.3% China Telecom (HKD) 144A * 37,930,000 12,522 China Telecom (H shares) (HKD) 13,916,000 4,594 Total China (Cost $15,313) 17,116 DENMARK 0.6% Common Stocks 0.6% Novo Nordisk, Series B 581,294 29,544 Total Denmark (Cost $17,352) 29,544 FINLAND 0.9% Common Stocks 0.9% Nokia 3,656,820 41,927 Total Finland (Cost $4,680) 41,927 FRANCE 14.0% Common Stocks 14.0% Aventis ss. 555,556 43,111 AXA 1,410,276 28,963 BNP Paribas ss. 897,116 52,217 Compagnie de Saint-Gobain 599,408 29,279 Credit Agricole ss. 1,822,486 42,976 France Telecom * 1,942,000 48,083 Groupe Danone ss. 295,480 24,351 Hermes 183,020 35,319 L'Oreal 245,331 17,577 Lafarge ss. 61,452 5,264 LVMH ss. 489,941 33,422 Sanofi-Synthelabo ss. 880,759 58,386 Schneider Electric 542,788 34,513 Societe Generale ss. 276,219 22,664 Societe Television Francaise 1 ss. 1,282,837 36,563 Sodexho Alliance ss. 845,799 22,987 Thomson ss. 624,600 11,632 Total ss. 650,267 126,191 Vivendi Universal * 389,876 9,742 Total France (Cost $423,132) 683,240 GERMANY 2.5% Common Stocks 2.5% Allianz 129,567 12,517 Bayer 256,332 6,840 Bayerische Hypo-und Vereinsbank * 302,973 4,884 Deutsche Bank 248,112 17,239 E.On 178,271 12,682 Hypo Real Estate * 828,772 25,705 Rhoen-Klinikum ss. 191,564 9,795 SAP 147,990 23,716 Siemens 121,471 8,522 Total Germany (Cost $92,519) 121,900 HONG KONG 1.0% Common Stocks 1.0% Cheung Kong Holdings 2,362,000 17,413 Li & Fung 9,892,000 13,697 Sun Hung Kai Properties 2,380,000 20,139 Total Hong Kong (Cost $49,298) 51,249 INDIA 1.0% Common Stocks 1.0% Infosys Technologies 492,000 16,468 Oil & Natural Gas * 351,800 5,420 Oil & Natural Gas (Regulation S shares) * 226,300 3,487 Zee Telefilms 7,768,300 23,535 Total India (Cost $42,714) 48,910 ISRAEL 0.2% Common Stocks 0.2% Check Point Software Technologies (USD) * 429,360 8,540 Total Israel (Cost $7,975) 8,540 ITALY 4.7% Common Stocks 4.7% Alleanza Assicurazioni ss. 2,470,690 26,455 Banca Intesa 3,016,100 11,176 Banco Popolare di Verona e Novara ss. 639,500 10,664 ENI 3,163,738 65,088 Mediaset 946,471 10,089 Mediolanum ss. 1,326,725 8,125 Telecom Italia 1,172,249 3,476 Telecom Italia Mobile 5,438,712 28,921 Telecom Italia-RNC 8,850,011 19,006 UniCredito Italiano ss. 9,959,698 47,690 Total Italy (Cost $127,571) 230,690 JAPAN 22.4% Common Stocks 22.4% Canon 1,186,900 57,973 Credit Saison 371,900 11,253 Dai Nippon Printing 2,088,000 29,565 Daikin Industries 662,000 16,316 Daito Trust Construction ss. 702,500 26,176 Daiwa Securities ss. 3,486,000 22,880 Denso 675,400 16,555 Fanuc 510,000 29,398 Fujisawa Pharmaceutical 742,200 17,993 Funai Electric 171,800 24,064 Hoya 212,400 21,836 JSR 1,041,900 17,260 KDDI 8,534 43,599 Keyence 76,900 16,267 Kirin Brewery ss. 1,338,000 13,095 Kyocera 269,300 20,794 Marui 1,137,500 13,737 Matsui Securities ss. 362,200 9,951 Mitsubishi 4,168,000 40,118 Mitsubishi Estate 1,485,000 16,893 Mitsui Fudosan ss. 4,228,000 46,997 Mitsui Trust ss. 2,466,000 17,270 NEC 4,019,000 25,079 Nidec 102,500 9,525 Nissan Motor 2,860,000 30,866 Nomura 3,832,000 52,573 Oji Paper ss. 2,046,000 13,116 Orix ss. 117,000 12,648 Rohm 212,400 22,732 Secom 1,178,000 47,596 Seven-Eleven Japan 1,137,000 34,914 Shin-Etsu Chemical 807,000 27,389 SMC 118,200 11,568 Softbank ss. 473,900 16,680 Sumitomo Metal Industries 13,175,000 14,195 Sumitomo Mitsui Financial ss. 7,955 47,926 Suzuki Motor 1,139,000 20,249 Takefuji ss. 186,180 13,373 Teijin ss. 3,546,000 12,322 Toyota Motor 1,045,000 42,035 Trend Micro ss. 301,000 12,324 UFJ *ss. 7,655 30,723 Uniden ss. 738,000 15,174 USS 99,360 8,029 Yamanouchi Pharmaceutical 809,800 27,775 Yamato Transport 856,000 13,627 Total Japan (Cost $1,008,269) 1,092,428 KAZAKHSTAN 0.4% Common Stocks 0.4% PetroKazakhstan (USD) ss. 579,594 18,344 Total Kazakhstan (Cost $15,901) 18,344 MALAYSIA 0.2% Common Stocks 0.2% Astro All Asia (Ordinary shares) * 5,079,300 6,122 Astro All Asia (Regulation S shares) * 3,619,000 4,362 Total Malaysia (Cost $9,953) 10,484 MEXICO 1.7% Common Stocks 1.7% America Movil ADR, Series L (USD) 636,500 22,742 Grupo Modelo, Series C 7,299,000 18,076 Grupo Televisa ADR (USD) ss. 378,700 17,799 Wal-Mart de Mexico, Series B ss. 8,781,872 26,790 Total Mexico (Cost $67,619) 85,407 NETHERLANDS 4.5% Common Stocks 4.5% Akzo Nobel 66,178 2,183 ASML Holding *ss. 1,447,680 20,674 Fortis (Unified shares) ss. 430,837 9,387 ING Groep GDS ss. 2,103,490 48,792 Koninklijke Numico *ss. 932,918 29,081 Philips Electronics 1,520,567 36,844 Reed Elsevier ss. 556,290 7,108 Royal Dutch Petroleum ss. 295,286 14,804 Royal KPN 3,008,600 22,225 Royal KPN, 144A 886,400 6,548 STMicroelectronics ss. 644,608 11,974 Wolters Kluwer GDS 757,534 12,741 Total Netherlands (Cost $134,883) 222,361 NORWAY 0.2% Common Stocks 0.2% Orkla, Series A ss. 465,994 11,211 Total Norway (Cost $3,220) 11,211 RUSSIA 1.2% Common Stocks 1.2% AO VimpelCom ADR (USD) *ss. 146,100 12,777 Lukoil ADR (1 ADR represents 4 common shares) (USD) ss. 47,600 5,189 Lukoil ADR (USD) 144A 147,260 16,051 Norilsk Nickel ADR (USD) ss. 322,000 16,583 YUKOS ADR (USD) ss. 380,224 6,511 Total Russia (Cost $56,656) 57,111 SINGAPORE 1.0% Common Stocks 1.0% MobileOne Limited 12,239,000 11,033 United Overseas Bank 4,505,592 35,899 Total Singapore (Cost $36,824) 46,932 SOUTH KOREA 1.4% Common Stocks 1.4% Kookmin Bank * 696,620 19,150 Samsung Electronics 83,907 29,918 South Korea Telecom 129,700 17,634 Total South Korea (Cost $50,650) 66,702 SPAIN 4.2% Common Stocks 4.2% Banco Bilbao Vizcaya Argentaria ss. 3,589,707 47,766 Banco Santander Central Hispano ss. 3,103,919 29,501 Endesa ss. 1,019,731 18,550 Gas Natural ss. 833,060 19,233 Gestevision Telecino *ss. 539,500 8,522 Inditex ss. 974,600 22,302 Repsol ss. 526,826 11,181 Telefonica 2,344,569 34,159 Telefonica ADR (USD) 323,301 14,118 Total Spain (Cost $151,099) 205,332 SWEDEN 2.6% Common Stocks 2.6% Electrolux, Series B 647,262 11,301 Hennes & Mauritz, Series B 1,219,830 31,392 LM Ericsson * 4,925,931 13,158 Sandvik, Series A 84,870 2,914 Securitas, Series B 4,238,936 47,777 Tele2, Series B ss. 567,500 22,554 Total Sweden (Cost $123,003) 129,096 SWITZERLAND 6.4% Common Stocks 6.4% Adecco ss. 1,236,937 57,442 Credit Suisse Group * 1,466,940 47,078 Nestle 372,902 95,332 Roche Holding 272,990 26,998 UBS 1,257,990 84,187 Total Switzerland (Cost $161,431) 311,037 TAIWAN 0.8% Common Stocks 0.8% China Trust Finance 9,227,370 9,420 Taiwan Semiconductor Manufacturing 22,710,862 28,664 Total Taiwan (Cost $43,725) 38,084 UNITED KINGDOM 23.4% Common Stocks 23.4% Abbey National 736,934 7,601 AstraZeneca 1,492,157 66,803 Autonomy * 615,263 1,869 British Sky Broadcast 1,968,393 21,646 Cadbury Schweppes 1,191,674 9,761 Capita 1,149,500 6,399 Carnival 221,940 10,861 Centrica 4,730,668 20,353 Compass 11,988,380 69,733 David S. Smith 1,911,072 5,528 Diageo 2,391,934 29,654 Electrocomponents 2,879,510 17,168 GlaxoSmithKline 7,799,875 158,493 Hays 10,552,923 23,421 Hilton Group 1,723,470 8,175 Kesa Electricals 1,711,460 8,749 Kingfisher 13,186,440 68,126 MFI Furniture Group 5,891,800 14,148 Reed Elsevier 5,530,866 48,999 Rio Tinto ss. 1,570,253 40,934 Royal Bank of Scotland Group 4,421,420 124,348 Shell Transport & Trading 11,285,033 81,809 Standard Chartered 879,700 14,555 Tesco 6,819,672 31,573 Tomkins 4,659,724 21,383 Unilever 3,589,387 31,701 United Business Media 1,883,809 16,929 Vodafone Group 55,048,946 119,420 William Morrison Supermarkets 5,551,000 18,277 WPP Group 4,750,501 43,944 Total United Kingdom (Cost $965,462) 1,142,360 SHORT-TERM INVESTMENTS 1.3% Money Market Funds 1.3% T. Rowe Price Reserve Investment Fund, 1.33% # 63,629,198 63,629 Total Short-Term Investments (Cost $63,629) 63,629 SECURITIES LENDING COLLATERAL 14.4% Money Market Pooled Account 14.4% Investment in money market pooled account managed by JP Morgan Chase Bank, London (USD), 1.32% # 703,374,490 703,374 Total Securities Lending Collateral (Cost $703,374) 703,374 Total Investments in Securities 114.1% of Net Assets (Cost $4,468,587)$ 5,571,290 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $35,121 and represents 0.7% of net assets ADR American Depository Receipts GDS Global Depository Shares HKD Hong Kong dollar USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price International Stock Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The International Stock Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of established, non-U.S. companies. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Emerging Markets The fund may invest in securities of companies located in emerging markets or denominated in or linked to the currencies of emerging market countries. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $714,404,000; aggregate collateral consisted of $703,374,000 in the money market pooled account and U.S. government securities valued at $41,317,000. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $4,468,587,000. Net unrealized gain aggregated $1,102,399,000 at period-end, of which $1,360,567,000 related to appreciated investments and $258,168,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price Japan Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) JAPAN 95.3% Common Stocks 95.3% Consumer Discretionary 26.0% Aisin Seiki 115,700 2,530 As One Corporation * 57,500 1,531 Casio Computer ss. 169,000 2,290 Culture Convenience 114,400 1,438 D&M Holdings * 428,000 1,199 Doshisha 51,400 2,178 Fast Retailing 3,300 233 Fields Corporation * 85 392 NHK Spring 328,000 2,103 Nihon Trim 18,200 1,356 Nissan Motor 435,400 4,699 Nissan Shatai 42,000 268 Nissen 81,400 1,586 Nitori 37,550 2,316 Paltac 83,500 1,507 Point 35,000 852 Point (New shares) * 21,850 532 Sanei-International 28,500 1,021 SEIKO 247,000 1,721 Sumitomo Rubber Industries ss. 237,000 2,060 Suzuki Motor 123,000 2,187 Takamatsu 21,400 567 Tohokushinsha Film 45,100 1,275 Toyota Motor 303,900 12,225 U's BMB Entertainment 306,000 1,486 USS 40,840 3,300 Yamaha Motor ss. 137,000 2,097 Total Consumer Discretionary 54,949 Financial 16.4% AIFUL 22,200 2,089 Arnest One (Ordinary shares) 89,900 2,664 BSL Corporation 405,000 826 Century Leasing System 121,500 1,312 Daiwa Securities 195,000 1,280 Leopalace21 ss. 123,500 2,456 Matsui Securities ss. 73,000 2,006 Mitsubishi Tokyo Financial 261 2,336 Mitsui Trust 323,000 2,262 Shoei Company 61,700 984 SMBS Friend Securities * 503,000 3,116 Sumitomo Mitsui Financial ss. 725 4,368 T&D Holdings * 81,650 3,790 Takefuji 48,560 3,488 UFJ * 398 1,597 Total Financial 34,574 Health Care 8.4% Hisamitsu Pharmaceutical ss. 123,000 2,185 I Rom 644 1,445 Kuraya Sanseido ss. 155,200 2,156 Nichi-iko Pharmaceutical 136,000 1,490 Nihon Kohden 101,000 1,305 Takeda Chemical Industries 71,100 3,326 Tsumura & Company ss. 123,000 1,776 Yamanouchi Pharmaceutical 121,600 4,171 Total Health Care 17,854 Industrials & Business Services 13.2% Aica Kogyo ss. 143,000 1,768 Central Glass 303,000 2,288 Daikin Industries 94,000 2,317 Kawasaki Kisen Kaisha 495,000 2,480 Mitsubishi 272,000 2,618 Mitsubishi Electric 544,000 2,481 NTN ss. 434,000 2,256 Phoenix Electric * 31,200 1,404 Ryobi 524,000 1,962 Secom 62,500 2,525 Sumitomo Heavy Industries *ss. 799,000 2,195 Tomen Electronics 24,300 1,189 Toyota Tsusho ss. 224,000 2,333 Total Industrials & Business Services 27,816 Information Technology 15.8% Axell Corporation 163 1,038 Canon 147,400 7,200 Citizen Watch ss. 229,000 2,278 Hoya 47,000 4,832 Keyence ss. 11,300 2,390 Konica Minolta Holdings 167,500 2,191 Macromill * 23 154 Meiko Electronics 34,800 928 Nidec ss. 26,600 2,472 Nihon International Electronics 94,000 810 Roland DG Corporation 30,200 1,323 Softbank ss. 55,700 1,961 Trend Micro ss. 89,000 3,644 Yahoo Japan *ss. 286 2,270 Total Information Technology 33,491 Materials 10.4% Air Water 408,000 2,700 Arisawa Manufacturing 45,200 1,855 Asahi Kasei 461,000 2,024 JFE Holdings ss. 140,200 3,355 JSP Corporation ss. 105,700 1,439 JSR 120,600 1,998 Kanto Denka Kogyo 351,000 1,699 Nihon Parkerizing 129,000 911 Tokyo Steel Manufacturing ss. 86,700 1,323 Toray Industries 500,000 2,370 Yamato Kogyo 186,000 2,248 Total Materials 21,922 Telecommunication Services 5.1% KDDI 586 2,994 Nippon Telegraph & Telephone 443 2,208 NTT DoCoMo 2,230 3,884 Okinawa Cellular Telephone 183 1,758 Total Telecommunication Services 10,844 Total Common Stocks (Cost $190,741) 201,450 SHORT-TERM INVESTMENTS 4.1% Money Market Funds 4.1% T. Rowe Price Reserve Investment Fund, 1.33% # 8,632,465 8,632 Total Short-Term Investments (Cost $8,632) 8,632 SECURITIES LENDING COLLATERAL 14.5% Money Market Pooled Account 14.5% Investment in money market pooled account managed by JP Morgan Chase Bank, London, 1.32% # 30,726,207 30,726 Total Securities Lending Collateral (Cost $30,726) 30,726 Total Investments in Securities 113.9% of Net Assets (Cost $230,099) $ 240,808 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Japan Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Japan Fund (the fund), a diversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments in the common stocks of companies located (or with primary operations) in Japan. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that both the NYSE and the Tokyo Stock Exchange are open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004 the value of loaned securities was $28,984,000; aggregate collateral consisted of $30,726,000 in the money market pooled account. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004 the cost of investments for federal income tax purposes was $230,099,000. Net unrealized gain aggregated $10,698,000 at period-end, of which $17,543,000 related to appreciated investments and $6,845,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price Latin America Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) ARGENTINA 2.4% Common Stocks 2.4% Quilmes Industrial ADR (USD), Class B 75,700 1,156 Tenaris ADR (USD) ss. 103,300 3,673 Total Argentina (Cost $3,889) 4,829 BRAZIL 47.9% Common Stocks 35.9% Cia de Concessoes Rodoviaria 105,300 1,152 Companhia de Bebidas ADR (USD) ss. 281,624 5,790 Companhia Siderurgica Nacional 230,708 3,353 Companhia Vale do Rio Doce ADR (1 ADR represents 1 common share) (USD) ss. 109,200 5,886 Companhia Vale do Rio Doce ADR (1 ADR represents 1 preference A share) (USD) ss. 135,900 5,993 Embraer Aircraft ADR (USD) ss. 110,082 3,148 Gol - Linhas Aereas Inteligentes ADR (USD) *ss. 21,500 366 Grupo Pao de Acucar ADR (USD) ss. 18,900 358 Natura Cosmeticos * 53,200 914 Petroleo Brasileiro (Petrobras) ADR (1 ADR represents 1 preference share) (USD) 945,757 24,259 Petroleo Brasileiro (Petrobras) ADR (1 ADR represents 1 common share) (USD) ss. 70,000 1,979 Tele Centro Oeste Celular ADR (USD) ss. 70,966 640 Tele Norte Leste Participacoes * 268,001,100 3,298 Tele Norte Leste Participacoes ADR (USD) ss. 483,400 6,313 Telesp Celular Participacoes ADR (USD) *ss. 648,200 4,278 Votorantim Celulose ADR (USD) ss. 127,400 4,556 72,283 Preferred Stocks 12.0% Banco Bradesco 99,291 4,602 Banco Itau Holding Financeira 108,343,300 10,093 Caemi Mineracao e Metalurgica * 4,498,000 1,991 Cia Energetica Minas Gerais (Cemig) 247,555,000 4,554 Cia Suzano de Papel e Celulose 413,200 1,910 Gerdau 66,900 954 24,104 Total Brazil (Cost $81,166) 96,387 CHILE 3.2% Common Stocks 3.2% Banco Santander Chile ADR (USD) ss. 155,766 4,144 Empresa Nacional de Electricidad ADR (USD) *ss. 100,400 1,322 Enersis ADR (USD) *ss. 81,000 482 Vina Concha Y Toro ADR (USD) ss. 10,900 535 Total Chile (Cost $5,519) 6,483 MEXICO 40.5% Common Stocks 40.5% America Movil ADR, Series L (USD) 623,776 22,288 Cemex 1,095,926 6,197 Consorcio ARA * 1,011,700 2,749 Controladora Comercial Mexicana 2,160,000 2,177 Grupo Aeroportuario del Sureste ADR (USD) 186,100 3,964 Grupo Financiero Banorte 839,500 3,090 Grupo Modelo, Series C 1,991,200 4,931 Grupo Televisa ADR (USD) ss. 197,800 9,297 Kimberly-Clark de Mexico, Series A 438,241 1,179 Telmex ADR (USD) ss. 349,376 10,789 Urbi Desarrollos Urbanos * 810,700 2,800 Wal-Mart de Mexico, Series B 3,886,474 11,856 Total Mexico (Cost $54,758) 81,317 PERU 1.8% Common Stocks 1.8% Compania de Minas Buenaventura ADR, Series B (USD) 169,600 3,651 Total Peru (Cost $1,437) 3,651 SHORT-TERM INVESTMENTS 4.2% Money Market Funds 4.2% T. Rowe Price Reserve Investment Fund, 1.33% # 8,353,179 8,353 Total Short-Term Investments (Cost $8,353) 8,353 SECURITIES LENDING COLLATERAL 10.9% Money Market Pooled Account 10.9% Investment in money market pooled account managed by JP Morgan Chase Bank, London (USD), 1.32% # 21,995,668 21,996 Total Securities Lending Collateral (Cost $21,996) 21,996 Total Investments in Securities 110.9% of Net Assets (Cost $177,118) $ 223,016 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 ADR American Depository Receipts USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price Latin America Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Latin America Fund (the fund), a nondiversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments primarily in the common stocks of companies located (or with primary operations) in Latin America. Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Emerging Markets The fund may invest in securities of companies located in emerging markets. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $21,587,000; aggregate collateral consisted of $21,996,000 in the money market pooled account. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $177,118,000. Net unrealized gain aggregated $45,895,000 at period-end, of which $48,628,000 related to appreciated investments and $2,733,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. T. Rowe Price New Asia Fund (Unaudited) July 31, 2004 PORTFOLIO OF INVESTMENTS (1) Shares Value (Cost and value in $ 000s) CHINA 6.2% Common Stocks 6.2% China Insurance (HKD) 10,628,000 4,394 China Resources Enterprise (HKD) ss. 5,304,000 6,528 China Telecom (HKD) 144A * 11,854,000 3,913 China Telecom (H shares) (HKD) 13,890,000 4,586 Cnooc (HKD) 22,331,000 10,736 Comba Telecom Systems (HKD) 3,254,000 1,742 Pacific Basin Shipping (HKD) 144A * 5,662,000 1,670 Pacific Basin Shipping (HKD) * 5,318,000 1,568 Panva Gas Holdings (HKD) 144A * 7,347,000 3,155 Panva Gas Holdings (HKD) * 4,279,000 1,838 Shanghai Forte Land Company (H shares) (HKD) ss.* 18,566,000 4,261 tom.com (HKD) ss.* 26,182,000 6,009 Total China (Cost $49,699) 50,400 HONG KONG 15.1% Common Stocks 15.1% Dah Sing Bank (Regulation S shares) * 2,984,000 5,394 Dah Sing Banking (Reserved shares) * 106,880 193 Dah Sing Financial 534,400 3,289 Esprit Holdings 1,933,001 8,624 Giordano 14,126,000 8,557 Grande Holdings 144A 4,556,000 4,089 Grande Holdings (Restricted Shares) 1,084,000 973 Great Eagle ss. 2,959,000 5,330 Henderson Land Development ss. 2,277,000 10,013 Johnson Electric 4,263,500 4,318 Li & Fung 5,646,000 7,818 Lifestyle International * 3,776,500 5,157 Moulin International Holdings 144A 1,736,000 1,024 Moulin International Holdings (Restricted shares) 4,894,000 2,886 New World Development 10,578,199 8,544 Next Media * 9,738,000 3,621 Oriental Press Group 12,592,000 4,803 PCCW Limited * 12,039,000 8,258 Shun Tak Holdings ss. 9,660,000 4,830 Swire Pacific ADR, Series A 1,817,500 12,117 Television Broadcast 1,705,000 6,995 Varitronix 5,465,000 5,115 Total Hong Kong (Cost $116,225) 121,948 INDIA 15.2% Common Stocks 15.2% Arvind Mills * 3,942,000 6,477 Balaji Telefilms 2,480,923 4,012 Ballarpur Industries 2,609,338 3,657 Bombay Dyeing 1,604,100 5,258 CESC * 1,283,300 3,120 Colgate-Palmolive (India) 1,987,468 6,279 Gujarat Mineral Development 510,797 2,100 HDFC Bank 1,473,872 11,920 Himatsingka Seide 167,604 1,232 Hindalco Industries 191,290 4,533 I-Flex Solutions * 223,423 2,549 I-Flex Solutions 144A * 287,270 3,277 Indian Hotels 815,690 6,316 Kotak Mahindra Finance 1,333,667 10,231 Mahindra & Mahindra 461,300 4,486 Moschip Semiconductor * 1,243,431 861 Oil & Natural Gas * 243,000 3,744 Oil & Natural Gas (Regulation S shares) * 157,000 2,419 Petronet LNG * 8,481,596 4,033 Power Trading 2,419,900 2,601 State Trading Corp of India 386,233 587 Tata Tea 673,800 6,101 Televison Eighteen India *+ 958,451 3,309 Uti Bank 1,896,000 5,229 Welspun Gujarat Stahl * 3,728,845 2,617 Welspun India * 1,889,154 3,489 Zee Telefilms 3,973,371 12,038 Total India (Cost $98,126) 122,475 INDONESIA 0.9% Common Stocks 0.9% INDOSAT 15,489,500 6,994 Total Indonesia (Cost $6,585) 6,994 JAPAN 0.1% Common Stocks 0.1% Sansui Electric (Ordinary shares) * 2,820,000 760 Total Japan (Cost $874) 760 MALAYSIA 9.5% Common Stocks 9.5% Astro All Asia (Ordinary shares) * 3,846,400 4,636 Astro All Asia (Regulation S shares) * 1,845,000 2,224 Berjaya Sports Toto 6,193,250 6,030 CIMB Berhad 3,480,600 4,946 Hong Leong Bank 3,987,900 5,352 Hwang-DBS (Malaysia) 6,000,000 2,510 IJM 3,603,600 4,476 Magnum 7,057,600 4,494 Malayan Banking Berhad 2,219,600 6,250 MK Land Holdings 6,450,800 4,295 Multi Purpose Holdings, Warrants, 2/26/09 * 1,081,790 141 Multi-Purpose Holdings * 9,904,700 3,050 Pos Malaysia & Services Holdings 4,390,600 2,473 Public Bank BHD 2,978,450 5,487 Redtone International 6,291,200 3,261 Sime Darby 3,122,600 4,602 Symphony House * 7,945,500 1,840 Symphony House, Warrants, 4/28/09 * 1,399,080 109 Telekom Malaysia 1,626,000 4,407 Telekom Malaysia (Regulation S shares) 685,000 1,857 Transmile Group 2,181,700 4,191 Total Malaysia (Cost $73,197) 76,631 SINGAPORE 8.5% Common Stocks 8.5% Ascendas, REIT 3,642,000 3,114 Ascendas, REIT (Regulation S shares) * 1,700,000 1,453 Ascendas, REIT 144A 5,905,000 5,048 Capitamall Trust, REIT 6,726,500 6,611 Creative Technology 404,200 4,114 DBS Group 1,004,000 9,051 GES International 10,700,000 4,232 Goodpack 6,792,000 3,792 Keppel 1,536,000 6,521 Sembcorp 4,136,000 3,103 United Overseas Bank 1,907,000 15,194 Venture Manufacturing 656,000 6,181 Total Singapore (Cost $61,865) 68,414 SOUTH KOREA 23.3% Common Stocks 20.7% Amorepacific 60,870 10,826 CJ Home Shopping 147,840 3,224 Hanaro Telecom ADR * 1,237,768 2,593 Hyundai Fire Marin ss. 1,019,300 3,138 Kookmin Bank * 605,546 16,647 Kookmin Bank ADR (USD) * 68,800 1,898 Korean Air Lines * 314,600 3,833 Kumgang Korea Chemical 82,990 7,877 LG Ad 231,730 3,844 LG Chemical 138,820 4,623 LG Electronics ss.* 92,050 3,833 LG Home Shopping 74,500 2,261 Lotte Chilsung Beverage 13,480 7,988 NCsoft * 63,610 4,650 Plenus 322,900 2,482 S Oil 206,970 9,132 Samsung Electronics ss. 122,972 43,847 Shinhan Financial ss. 546,200 7,963 Shinsegae ss. 36,190 8,433 SK Corporation * 192,100 7,769 South Korea Telecom 73,290 9,964 166,825 Preferred Stocks 2.6% Hyundai Motor 463,310 10,379 Samsung Electronics 42,930 10,572 20,951 Total South Korea (Cost $138,857) 187,776 TAIWAN 13.7% Common Stocks 13.7% Acer * 5,670,442 7,274 Advantech 2,370,023 4,637 Basso Industry * 2,063,000 3,975 Cathay Financial Holding 8,945,000 14,737 Cheng Shin Rubber Industry * 4,417,976 5,628 China Trust Finance 10,018,516 10,228 EVA Airways 10,024,851 3,716 Evergreen Marine 3,725,460 2,740 Far Eastern Department Stores 606,000 276 Far Eastern Textile * 5,853,000 3,117 Far Eastone Telecom * 3,485,730 3,446 First Financial Holdings * 7,313,000 4,841 Formosa Plastic * 43,940 61 Merry Electronics * 2,583,960 5,588 Quanta Computer * 2,896,329 4,687 Taishin Financial Holdings * 8,985,000 6,873 Taiwan Cellular 4,359,000 3,924 Taiwan Semiconductor Manufacturing 10,647,188 13,438 Test Rite * 8,187,000 4,287 Via Technologies 6,821,000 4,897 Waffer Technology * 959,000 1,693 Total Taiwan (Cost $111,987) 110,063 THAILAND 3.2% Common Stocks 3.2% Bangkok Bank NVDR ss.* 1,904,200 4,240 C.P. 7-Eleven 3,479,400 5,305 Jasmine * 102,875,000 1,793 Jasmine, Warrants, 1/30/09 * 102,875,000 871 Kasikornbank Public NVDR ss.* 4,053,500 4,586 Shin ss. 6,884,100 6,206 Siam Commercial Bank 2,907,200 3,201 True Corp., Rights * 1,597,894 0 Total Thailand (Cost $17,358) 26,202 UNITED KINGDOM 0.5% Common Stocks 0.5% HSBC (HKD) ss. 266,034 3,922 Total United Kingdom (Cost $3,780) 3,922 SHORT-TERM INVESTMENTS 2.0% Money Market Funds 2.0% T. Rowe Price Reserve Investment Fund, 1.33% # 15,950,655 15,951 Total Short-Term Investments (Cost $15,951) 15,951 SECURITIES LENDING COLLATERAL 3.7% Money Market Pooled Account 3.7% Investment in money market pooled account managed by JP Morgan Chase Bank, London (USD), 1.32% # 30,068,288 30,068 Total Securities Lending Collateral (Cost $30,068) 30,068 Total Investments in Securities 101.9% of Net Assets (Cost $724,572) $ 821,604 (1) Denominated in currency of country of incorporation unless otherwise noted # Seven-day yield * Non-income producing ss. All or a portion of this security is on loan at July 31, 2004 - See Note 2 + Affiliated company - See Note 2. 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers -- total value of such securities at period-end amounts to $22,176 and represents 2.8% of net assets ADR American Depository Receipts HKD Hong Kong dollar NVDR Non Voting Depository Receipt REIT Real Estate Investment Trust USD U.S. dollar The accompanying notes are an integral part of this Portfolio of Investments. T. Rowe Price New Asia Fund Unaudited July 31, 2004 Notes To Portfolio of Investments NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The New Asia Fund (the fund), a nondiversified, open-end management investment company, is one portfolio established by the corporation. The fund seeks long-term growth of capital through investments in companies located (or with primary operations) in Asia (excluding Japan). Valuation The fund values its investments and computes its net asset value per share at the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day that the NYSE is open for business. Equity securities listed or regularly traded on a securities exchange or in the over-the-counter market are valued at the last quoted sale price or, for certain markets, the official closing price at the time the valuations are made, except for OTC Bulletin Board securities, which are valued at the mean of the latest bid and asked prices. A security that 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 are valued at the mean of the latest bid and asked prices for domestic securities and the last quoted sale price for international securities. Investments in mutual funds are valued at the mutual fund's closing net asset value per share on the day of valuation. Other investments and those 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 the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. Most foreign markets close before the close of trading on the NYSE. If the fund determines that developments between the close of a foreign market and the close of the NYSE will, in its judgment, materially affect the value of some or all of its portfolio securities, which in turn will affect the fund's share price, the fund will adjust the previous closing prices to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by the T. Rowe Price Valuation Committee, established by the fund's Board of Directors. A fund may also fair value securities in other situations, such as when a particular foreign market is closed but the fund is open. In deciding whether to make fair value adjustments, the fund reviews a variety of factors, including developments in foreign markets, the performance of U.S. securities markets, and the performance of instruments trading in U. S. markets that represent foreign securities and baskets of foreign securities. The fund uses outside pricing services to provide it with closing market prices and information used for adjusting those prices. The fund cannot predict how often it will use closing prices and how often it will adjust those prices. As a means of evaluating its fair value process, the fund routinely compares closing market prices, the next day's opening prices in the same markets, and adjusted prices. Investment Transactions Investment transactions are accounted for on the trade date. 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. Emerging Markets The fund may invest in securities of companies located in emerging markets or denominated in or linked to the currencies of emerging market countries. Future economic or political developments could adversely affect the liquidity or value, or both, of such securities. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. At July 31, 2004, the value of loaned securities was $60,945,000; aggregate collateral consisted of $30,068,000 in the money market pooled account and U.S. government securities valued at $36,895,000. Affiliated Companies The fund may invest in certain securities that are considered affiliated companies. As defined by the 1940 Act, an affiliated company is one in which the fund owns 5% or more of the outstanding voting securities. At July 31, 2004, the value of affiliated companies totaled $3,309,000, representing 0.4% of the value of the fund's investments in securities. NOTE 3 - FEDERAL INCOME TAXES At July 31, 2004, the cost of investments for federal income tax purposes was $724,572,000. Net unrealized gain aggregated $96,925,000 at period-end, of which $143,296,000 related to appreciated investments and $46,371,000 related to depreciated investments. NOTE 4 - RELATED PARTY TRANSACTIONS The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe Price Government Reserve Investment Fund (collectively, the Reserve Funds), open-end management investment companies managed by Price Associates. The Reserve Funds are offered as cash management options to mutual funds, trusts, and other accounts managed by Price Associates and/or its affiliates, and are not available for direct purchase by members of the public. Item 2. Controls and Procedures. (a) The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized, and reported timely. (b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3. Exhibits. Separate certifications by the registrant's principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. T. Rowe Price International Funds, Inc. By /s/ James S. Riepe James S. Riepe Principal Executive Officer Date September 17, 2004 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By /s/ James S. Riepe James S. Riepe Principal Executive Officer Date September 17, 2004 By /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer Date September 17, 2004