-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, C0uLFqCwkPleC3QBmYqguJBU2G0qp11CkLx7zjVyTPLoSKX0xu+Y1E8Rirxc5eJA EzHVoz/WloV2zP9yHjLgvw== 0000730200-04-000003.txt : 20040421 0000730200-04-000003.hdr.sgml : 20040421 20040421154641 ACCESSION NUMBER: 0000730200-04-000003 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040229 FILED AS OF DATE: 20040421 EFFECTIVENESS DATE: 20040421 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRICE T ROWE TAX FREE SHORT INTERMEDIATE FUND INC CENTRAL INDEX KEY: 0000730200 IRS NUMBER: 521316470 FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03872 FILM NUMBER: 04745514 BUSINESS ADDRESS: STREET 1: 100 EAST PRATT ST CITY: BALTIMORE STATE: MD ZIP: 21202 BUSINESS PHONE: 4105472000 N-CSR 1 tfs.txt T. ROWE PRICE TAX-FREE SHORT-INTERMEDIATE FUND Item 1. Report to Shareholders T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- February 29, 2004 Certified Annual Report This report is certified under the Sarbanes-Oxley Act of 2002, which requires that public companies, including mutual funds, affirm that the information provided in their annual and semiannual shareholder reports fully and fairly represents their financial position. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report Performance Comparison - -------------------------------------------------------------------------------- This chart shows the value of a hypothetical $10,000 investment in the fund over the past 10 fiscal year periods or since inception (for funds lacking 10-year records). The result is compared with benchmarks, which may include a broad-based market index and a peer group average or index. Market indexes do not include expenses, which are deducted from fund returns as well as mutual fund averages and indexes. [Graphic Omitted] TAX-FREE SHORT-INTERMEDIATE FUND - -------------------------------------------------------------------------------- As of 2/29/04 Tax-Free Short-Intermediate Fund $15,787 Lipper Short-Intermediate Municipal Debt Funds Average $15,648 Lipper Short-Intermediate Tax-Free Municipal Debt Funds Average Short-Intermediate Fund 2/94 10,000 10,000 2/95 10,159 10,291 2/96 10,913 10,998 2/97 11,343 11,440 2/98 12,000 12,044 2/99 12,567 12,634 2/00 12,486 12,718 2/01 13,469 13,731 2/02 14,201 14,544 2/03 14,999 15,263 2/04 15,648 15,787 Average Annual Compound Total Return - -------------------------------------------------------------------------------- Periods Ended 2/29/04 1 Year 5 Years 10 Years - -------------------------------------------------------------------------------- Tax-Free Short-Intermediate Fund 3.43% 4.56% 4.67% Lipper Short-Intermediate Municipal Debt Funds Average 3.92 4.31 4.57 Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. Past performance cannot guarantee future results. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report Dear Shareholder, We are pleased to report that your fund posted a respectable return of 3.43% during the 12 months ended February 29, 2004, trailing the Lipper Short-Intermediate Municipal Debt Funds Average during the period, as shown in the table on the preceding page. While fund performance was good, results would have been better had we not taken actions to offset the portfolio's increasing duration. As you know, the fund seeks to provide, consistent with modest price fluctuation, a high level of income that is exempt from federal income taxes by investing primarily in short- and intermediate-term investment-grade municipal bonds. The fund's weighted average maturity normally ranges from two to five years. Major Index Returns - -------------------------------------------------------------------------------- Period Ended 2/29/04 12-Month Return - -------------------------------------------------------------------------------- Lehman Brothers U.S. Aggregate Index 4.54% Lehman Brothers Municipal Bond Index 6.30 Lehman Brothers High Yield Municipal Bond Index 16.15 The Major Index Returns table shows how various quality bonds performed over the fund's fiscal year. High-yield municipal bonds far outperformed their higher-rated counterparts--the types of securities in which we invest--in both the tax-exempt and taxable markets over the 12-month period. Top 5 Sectors - -------------------------------------------------------------------------------- Percent of Percent of Net Assets Net Assets Periods Ended 2/28/03 2/29/04 - -------------------------------------------------------------------------------- General Obligation - State 14.2% 15.7% General Obligation - Local 11.8 14.1 Electric Revenue 13.5 12.3 Dedicated Tax Revenue 13.6 12.2 Air and Sea Transportation Revenue 10.0 6.2 The Top 5 Sectors table shows how portfolio assets were allocated during the reporting period. State and local general obligation securities accounted for 15.7% and 14.1% of fund assets, respectively, followed by electric revenue bonds at 12.3%, dedicated tax revenue bonds at 12.2%, and air and sea transportation securities at 6.2%. The Portfolio Characteristics table shows various portfolio details as of February 29, 2004, compared with one year earlier. The weighted average maturity of the portfolio increased marginally from 3.8 to 3.9 years, the 30-day standardized yield to maturity slipped from 1.77% to 1.65% as rates declined in general, and the portfolio's weighted average quality remained stable at AA. Portfolio Characteristics - -------------------------------------------------------------------------------- Periods Ended 2/28/03 2/29/04 Price Per Share $5.53 $5.54 Dividends Per Share for 12 Months 0.19 0.17 30-Day Standardized Yield to Maturity 1.77% 1.65% Weighted Average Maturity (years) 3.8 3.9 Weighted Average Effective Duration (years) 3.1 3.2 Weighted Average Quality * AA AA * Based on T. Rowe Price research. Note: Yield will vary and is not guaranteed. Finally, I'm sure you are aware that mutual fund companies have recently come under scrutiny for their trading policies. The investigations have led to allegations that executives of several mutual fund companies permitted or engaged in improper mutual fund trading. In addition, certain intermediaries that process fund transactions are alleged to have assisted some investors in executing improper mutual fund trades. I want T. Rowe Price shareholders to know that we emphatically condemn the abuses that have been revealed or alleged against other firms in our industry. Our firm has not entered and will not enter into any agreements with any investors or intermediaries that authorize after-hours trading or excessive short-term trading in any of our funds. T. Rowe Price investors can be assured that our firm unequivocally opposes illegal or inappropriate trading of any nature and has policies and procedures in place designed to protect the best interests of our long-term shareholders. We have reviewed trading by T. Rowe Price personnel in the T. Rowe Price mutual funds over the last several years and did not uncover the existence of any of the abusive trading practices described in recent regulatory enforcement actions relating to fund portfolio managers and senior fund executives. You may find out more about our trading policies and the steps we take to protect your interests by visiting our Web site (troweprice.com). These policies are also spelled out in your fund's prospectus. We thank you for your continued support. Respectfully, James S. Riepe Chairman March 19, 2004 T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report Financial Highlights For a share outstanding throughout each period - -------------------------------------------------------------------------------- Year Ended 2/29/04 2/28/03 2/28/02 2/28/01 2/29/00 NET ASSET VALUE Beginning of period $ 5.53 $ 5.48 $ 5.38 $ 5.20 $ 5.39 Investment activities Net investment income (loss) 0.17 0.19 0.21 0.23 0.21 Net realized and unrealized gain (loss) 0.02 0.07 0.10 0.18 (0.18) Total from investment activities 0.19 0.26 0.31 0.41 0.03 Distributions Net investment income (0.17) (0.19) (0.21) (0.23) (0.21) Net realized gain (0.01) (0.02) -- -- (0.01) Total distributions (0.18) (0.21) (0.21) (0.23) (0.22) NET ASSET VALUE End of period $ 5.54 $ 5.53 $ 5.48 $ 5.38 $ 5.20 ------------------------------------------------------- Ratios/Supplemental Data Total return^ 3.43% 4.94% 5.92% 7.97% 0.67% Ratio of total expenses to average net assets 0.51% 0.52% 0.52% 0.53% 0.53% Ratio of net investment income (loss) to average net assets 3.03% 3.54% 3.92% 4.27% 4.07% Portfolio turnover rate 41.6% 29.7% 30.0% 40.7%(Ckmk.) 49.7% Net assets, end of period (in thousands) $ 600,153 $ 581,009 $ 471,780 $ 415,813 $ 404,634 ^ Total return reflects the rate that an investor would have earned on an investment in the fund during each period, assuming reinvestment of all distributions. (Ckmk.) Excludes the effect of the acquisition of the Virginia Short-Term Bond Funds assets. The accompanying notes are an integral part of these financial statements. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report February 29, 2004 Portfolio of Investments (ss.) Par Value - -------------------------------------------------------------------------------- ($ 000s) ALABAMA 2.4% Alabama Federal Highway Fin. Auth., 5.00%, 3/1/08 (MBIA Insured) 5,000 5,577 Decatur Ind. Dev. Board IDRB, BP Amoco VRDN (Currently 1.03%) # 500 500 Huntsville Solid Waste Disposal Auth., 5.75%, 10/1/05 (MBIA Insured) # 985 1,055 Jefferson County Sewer, 5.50%, 2/1/40 (Prerefunded 2/1/11!) (FGIC Insured) 6,405 7,589 Total Alabama (Cost $13,792) 14,721 ALASKA 1.8% Alaska, GO, 5.00%, 7/15/05 6,465 6,812 Alaska HFC, 5.35%, 12/1/07 # 1,580 1,661 Alaska Student Loan Corp., 5.50%, 7/1/05 (AMBAC Insured) # 2,500 2,635 Total Alaska (Cost $10,856) 11,108 ARIZONA 2.8% Arizona School Fac. Board, 5.50%, 7/1/13 1,910 2,219 Arizona Transportation Board, 5.00%, 7/1/10 3,290 3,753 Salt River Agricultural Improvement & Power 5.00%, 1/1/08 2,625 2,919 5.00%, 1/1/09 5,000 5,625 5.75%, 1/1/08 2,000 2,279 Total Arizona (Cost $15,941) 16,795 CALIFORNIA 3.3% California, GO 5.00%, 6/1/07 1,475 1,601 5.00%, 2/1/08 3,590 3,913 5.00%, 2/1/09 1,600 1,753 5.75%, 10/1/09 1,520 1,736 California Dept. of Water Resources 5.50%, 5/1/10 3,000 3,421 5.50%, 5/1/11 675 774 California Public Works Board, Dept. of Corrections, 5.00%, 6/1/07 3,000 3,252 California Statewide CDA, Kaiser Permanente 3.70%, 11/1/29 (Tender 6/1/05) 2,000 2,050 San Francisco City & County, GO, 5.00%, 6/15/06 (MBIA Insured) 1,125 1,220 Total California (Cost $19,289) 19,720 COLORADO 0.9% Colorado DOT, 5.75%, 6/15/07 (AMBAC Insured) 4,950 5,594 Total Colorado (Cost $5,463) 5,594 CONNECTICUT 1.0% Connecticut, 5.375%, 10/1/12 (FSA Insured) 2,500 2,899 Connecticut, GO, 5.25%, 6/15/09 1,800 2,060 Mohegan Tribe Indians, 5.50%, 1/1/06 870 913 Total Connecticut (Cost $5,573) 5,872 DELAWARE 0.2% Delaware, GO, 5.25%, 4/1/05 1,120 1,172 Total Delaware (Cost $1,125) 1,172 DISTRICT OF COLUMBIA 3.6% District of Columbia, GO 5.00%, 6/1/06 (AMBAC Insured) 5,430 5,862 5.00%, 6/1/07 (AMBAC Insured) 5,000 5,514 5.50%, 6/1/08 (FSA Insured) 2,235 2,542 Metropolitan Washington D.C. Airports Auth. 5.50%, 10/1/05 # 1,750 1,858 5.50%, 10/1/07 (FGIC Insured) # 4,000 4,470 5.50%, 10/1/12 (FGIC Insured) # 965 1,100 Total District of Columbia (Cost $20,755) 21,346 FLORIDA 9.5% Broward County Airport Systems 5.00%, 10/1/05 (FGIC Insured) 2,630 2,785 5.00%, 10/1/07 (FGIC Insured) 1,900 2,106 Broward County Resource Recovery, 5.00%, 12/1/05 4,650 4,941 Broward County School Dist., GO, 5.00%, 2/15/06 2,500 2,678 Collier County, 5.00%, 6/1/09 (AMBAC Insured) 2,000 2,262 Florida Ed. Lottery 5.25%, 7/1/05 (FGIC Insured) 1,940 2,048 5.50%, 7/1/08 (FGIC Insured) 5,185 5,927 Florida Board of Ed., GO 5.00%, 6/1/07 2,425 2,678 Public Ed., 5.00%, 6/1/06 1,000 1,080 Florida Dept. of Environmental Protection 5.00%, 7/1/06 (FGIC Insured) 3,000 3,248 Florida Dept. of Natural Resources 5.00%, 7/1/12 (AMBAC Insured) 4,000 4,424 6.00%, 7/1/09 (AMBAC Insured) 5,000 5,900 Florida DOT, Florida Turnpike, 5.25%, 7/1/08 (FSA Insured) 3,000 3,398 Hillsborough County Aviation Auth. 5.50%, 10/1/09 (MBIA Insured) # 1,985 2,268 Jacksonville Electric Auth., 5.00%, 10/1/09 (AMBAC Insured) 8,000 9,092 Kissimmee Utility Auth., 5.25%, 10/1/09 (FSA Insured) 870 1,000 Volusia County School Dist., 5.00%, 8/1/06 (FGIC Insured) 1,400 1,519 Total Florida (Cost $55,579) 57,354 GEORGIA 1.8% Athens-Clarke County Unified Gov't. Dev. Auth., Univ. of Georgia Athletic Assoc., VRDN (Currently 1.00%) 1,300 1,300 Atlanta Airport Fac., 6.50%, 1/1/06 (AMBAC Insured) 500 546 Atlanta Water & Sewer, 5.25%, 1/1/27 (Prerefunded 1/1/07!) (FGIC Insured) 5,300 5,891 Fulton-DeKalb Private Hosp. Auth., Egleston Childrens Hosp. VRDN (Currently 0.94%) 1,000 1,000 Georgia, GO, 7.20%, 3/1/05 2,000 2,124 Total Georgia (Cost $10,725) 10,861 HAWAII 1.9% Hawaii, GO, 5.25%, 9/1/09 (FSA Insured) 3,400 3,904 Hawaii Airports, 6.125%, 7/1/05 (FGIC Insured) # 4,000 4,255 Honolulu, 5.60%, 4/1/07 (Escrowed to Maturity) 2,995 3,358 Total Hawaii (Cost $11,138) 11,517 ILLINOIS 2.2% Chicago, GO, Neighborhoods Alive 5.00%, 1/1/09 (MBIA Insured) ++ 1,350 1,513 Illinois 5.00%, 6/15/07 3,500 3,872 5.50%, 6/15/05 4,195 4,434 Illinois, GO, 5.50%, 8/1/16 (MBIA Insured) 1,650 1,899 Southwestern Dev. Auth. Anderson Hosp. 5.25%, 8/15/05 485 505 5.25%, 8/15/06 510 540 5.50%, 8/15/07 535 577 Total Illinois (Cost $12,890) 13,340 INDIANA 0.5% Indianapolis Airport Auth., IDRB Federal Express, 7.10%, 1/15/17 # 3,000 3,127 Total Indiana (Cost $3,083) 3,127 KANSAS 2.3% Kansas DOT 5.40%, 3/1/08 1,835 2,075 5.40%, 3/1/08 (Escrowed to Maturity) 3,015 3,417 5.50%, 9/1/08 4,000 4,594 7.25%, 3/1/05 (Escrowed to Maturity) 3,500 3,719 Total Kansas (Cost $13,313) 13,805 KENTUCKY 2.2% Kenton County Airport 5.00%, 3/1/08 (MBIA Insured) # 1,785 1,965 5.00%, 3/1/09 (MBIA Insured) # 1,250 1,382 Kentucky Property & Building Commission, 5.00%, 8/1/04 7,170 7,291 Louisville & Jefferson County Regional Airport, United Parcel Service of America, VRDN (Currently 1.00%) # 2,450 2,450 Total Kentucky (Cost $12,926) 13,088 LOUISIANA 2.4% Louisiana, GO 5.50%, 4/15/05 (AMBAC Insured) 3,000 3,150 5.50%, 4/15/07 (AMBAC Insured) 7,000 7,819 Plaquemines Parish, BP Amoco, VRDN (Currently 1.03%) # 2,050 2,050 West Feliciana Parish PCR, Entergy, 5.65%, 9/1/28 (Tender 9/1/04) 1,225 1,248 Total Louisiana (Cost $13,669) 14,267 MARYLAND 7.5% Anne Arundel County, GO, 5.00%, 3/1/12 4,750 5,425 Maryland, GO, State & Local Fac. 5.00%, 7/15/06 1,500 1,631 5.25%, 7/15/06 8,000 8,745 Maryland DOT 5.50%, 9/1/06 1,265 1,394 5.50%, 2/1/09 7,370 8,478 Maryland Economic Dev. Corp., Maryland Aviation Admin. 5.00%, 6/1/09 (FSA Insured) # 3,250 3,628 Maryland Stadium Auth., Sports Fac. Leasing VRDN (Currently 0.99%) # 640 640 Northeast Maryland Waste Disposal Auth., Waste Management Resco Retrofit, 5.50%, 4/1/11 (AMBAC Insured) # 6,000 6,861 Northeast Maryland Waste Disposal Auth., IDRB Solid Waste Disposal, 4.75%, 1/1/12 # 1,000 1,040 Prince Georges County, GO, Public Improvement, 5.00%, 10/1/07 1,500 1,675 Univ. of Maryland, Auxiliary Fac. & Tuition, 5.00%, 4/1/06 5,000 5,383 Total Maryland (Cost $43,021) 44,900 MASSACHUSETTS 2.0% Massachusetts 5.25%, 1/1/13 (Prerefunded 1/1/06!) (MBIA Insured) 3,290 3,561 5.75%, 6/1/20 (Prerefunded 6/1/10!) 2,545 3,032 Massachusetts, GO, 5.00%, 8/1/07 4,425 4,892 Massachusetts Dev. Fin. Agency, Massachusetts General Hosp. Biomedical Research, 5.75%, 8/1/04 500 510 Total Massachusetts (Cost $11,741) 11,995 MICHIGAN 3.1% Michigan Comprehensive Transportation Fund 5.25%, 5/15/07 (FSA Insured) 1,240 1,379 5.25%, 5/15/09 (FSA Insured) 4,800 5,487 Michigan Building Auth., 5.00%, 10/15/06 (MBIA Insured) 1,000 1,093 Michigan Municipal Bond Auth., Clean Water, 5.50%, 10/1/04 1,310 1,346 Michigan Public Power Agency, Belle River 5.25%, 1/1/08 (MBIA Insured) 5,130 5,750 Wayne Charter County Airport, 5.25%, 12/1/11 (MBIA Insured) # 3,000 3,358 Total Michigan (Cost $17,916) 18,413 MINNESOTA 1.6% Minneapolis-St. Paul Metropolitan Airport Commission 5.50%, 1/1/10 (Tender 4/1/05) (FGIC Insured) # 3,305 3,758 Minneapolis-St. Paul Metropolitan Airport Commission IDRB Northwest Airlines, 6.50%, 4/1/25 # 1,000 953 Minnesota, GO 5.25%, 8/1/09 2,575 2,964 5.75%, 8/1/05 2,000 2,134 Total Minnesota (Cost $9,392) 9,809 MISSISSIPPI 0.3% Mississippi Hosp. Equipment Fac. Auth., North Mississippi Health Services, VRDN (Currently 0.94%) 1,600 1,600 Total Mississippi (Cost $1,600) 1,600 MISSOURI 0.7% Missouri Highway & Transportation Commission, 5.00%, 2/1/08 3,550 3,958 Total Missouri (Cost $3,893) 3,958 NEBRASKA 0.8% Omaha Public Power Dist., 5.40%, 2/1/06 800 862 Univ. of Nebraska Fac. Corp., 5.25%, 7/15/06 3,720 4,058 Total Nebraska (Cost $4,587) 4,920 NEVADA 1.2% Clark County Airport 5.00%, 7/1/06 (AMBAC Insured) # 200 215 5.00%, 7/1/07 (AMBAC Insured) # 1,200 1,313 Clark County IDRB, PCR, Southwest Gas 5.80%, 3/1/38 (Tender 3/1/13) # 2,300 2,517 Reno, GO, Capital Improvement, 5.00%, 4/1/05 (FGIC Insured) 2,825 2,946 Total Nevada (Cost $6,724) 6,991 NEW JERSEY 2.7% New Jersey, GO, 5.25%, 3/1/08 1,040 1,168 New Jersey Transit Corp. 5.50%, 2/1/06 (AMBAC Insured) 5,000 5,393 COP, 5.00%, 9/15/04 (AMBAC Insured) 2,025 2,069 New Jersey Transportation Trust Fund Auth. 5.75%, 6/15/11 (Escrowed to Maturity) 2,350 2,814 6.00%, 6/15/07 (Escrowed to Maturity) 4,000 4,560 Total New Jersey (Cost $14,903) 16,004 NEW MEXICO 1.7% Bernalillo County, 5.75%, 4/1/26 (Prerefunded 4/1/06!) 5,000 5,460 Farmington PCR, Public Service Company of New Mexico 2.75%, 4/1/33 (Tender 4/1/04) 2,650 2,653 New Mexico Ed. Assistance Foundation, 5.50%, 11/1/10 # 1,750 1,839 Total New Mexico (Cost $9,397) 9,952 NEW YORK 9.9% Long Island Power Auth., Solid Waste Disposal, 5.00%, 12/1/06 4,000 4,349 Metropolitan Transportation Auth., 5.375%, 7/1/27 (Tender 7/1/09) 5,000 5,802 Nassau County, GO, 7.00%, 3/1/04 2,810 2,812 New York City, GO 5.00%, 8/1/06 4,000 4,324 5.25%, 8/1/10 3,820 4,323 5.25%, 8/1/11 1,200 1,354 6.75%, 8/1/04 6,900 7,066 New York City Transitional Fin. Auth., 5.00%, 2/1/10 4,850 5,478 New York State Thruway Auth. Highway & Bridge, 5.25%, 4/1/10 (MBIA Insured) 5,000 5,753 Transportation, 5.50%, 3/15/13 3,500 4,055 New York State Urban Dev. Corp., Corrections & Youth Fac. 5.25%, 1/1/21 (Tender 1/1/09) 5,000 5,611 Tobacco Settlement Fin. Corp. 5.00%, 6/1/06 5,210 5,576 5.25%, 6/1/13 2,500 2,718 Total New York (Cost $57,467) 59,221 NORTH CAROLINA 0.4% North Carolina Eastern Municipal Power Agency, 7.00%, 1/1/08 2,210 2,547 Total North Carolina (Cost $2,409) 2,547 OHIO 2.9% Cuyahoga County, GO, 5.50%, 11/15/05 1,400 1,504 Ohio, GO, 5.25%, 5/1/05 2,495 2,618 Ohio, New Infrastructure, 5.00%, 6/15/07 3,485 3,855 Ohio Air Quality Dev. Auth., PCR, FirstEnergy, Air Quality Pollution Control, 5.80%, 6/1/16 (Tender 12/1/04) 2,000 2,052 Ohio Turnpike Commission, 5.50%, 2/15/26 (Prerefunded 2/15/06!) (MBIA Insured) 4,650 5,122 Steubenville Hosp. Fac. Trinity Health 5.50%, 10/1/04 585 600 5.55%, 10/1/05 630 667 5.60%, 10/1/06 730 793 Total Ohio (Cost $16,718) 17,211 OKLAHOMA 0.5% Oklahoma Capital Improvement Auth., State Highway Improvement, 5.00%, 6/1/10 (MBIA Insured) 1,060 1,210 Oklahoma Transportation Auth., 5.25%, 1/1/07 (AMBAC Insured) 1,780 1,961 Total Oklahoma (Cost $3,065) 3,171 PENNSYLVANIA 3.9% Beaver County IDA, PCR, FirstEnergy 4.85%, 6/1/30 (Tender 6/1/04) 4,000 4,021 Montgomery County IDA, PCR, Peco Energy 5.20%, 10/1/30 (Tender 10/1/04) 2,000 2,037 Pennsylvania, GO 5.00%, 9/15/06 6,000 6,542 5.00%, 2/1/07 5,250 5,753 6.00%, 7/1/09 4,375 5,175 Total Pennsylvania (Cost $22,521) 23,528 PUERTO RICO 0.5% Puerto Rico Electric Power Auth., 5.00%, 7/1/06 2,870 3,103 Total Puerto Rico (Cost $3,040) 3,103 SOUTH CAROLINA 1.7% South Carolina, GO, 5.00%, 7/1/10 3,525 4,039 South Carolina Public Service Auth. 5.00%, 1/1/09 (FSA Insured) 4,000 4,500 6.50%, 1/1/06 (FGIC Insured) 1,800 1,970 Total South Carolina (Cost $10,188) 10,509 TEXAS 10.7% Brazos River Auth., PCR, TXU Energy 5.75%, 5/1/36 (Tender 11/1/11) # 3,165 3,437 Brazos River Harbor Navigation Dist., IDRB Dow Chemical, 4.95%, 5/15/33 (Tender 5/15/07) # 1,500 1,590 Dallas, GO, 4.00%, 2/15/06 4,850 5,105 Dallas-Fort Worth Int'l Airport Fac. 5.625%, 11/1/12 (FGIC Insured) # 5,000 5,673 Fort Worth, GO 5.00%, 3/1/05 1,000 1,040 5.00%, 3/1/06 1,000 1,072 Gulf Coast IDA, BP Amoco, VRDN (Currently 1.03%) # 2,600 2,600 Harris County Health Fac. Dev. Corp. St. Lukes Episcopal Hosp. VRDN (Currently 1.00%) 1,700 1,700 5.50%, 2/15/11 2,140 2,428 5.50%, 2/15/12 2,000 2,258 Houston, GO, Public Improvement 5.00%, 3/1/11 (MBIA Insured) 4,710 5,351 5.25%, 3/1/05 6,750 7,035 Lower Colorado River Auth., 6.00%, 5/15/07 (FSA Insured) 5,000 5,670 San Antonio, GO, General Improvement, 5.00%, 8/1/10 5,850 6,647 San Antonio Electric & Gas, 5.00%, 2/1/07 1,535 1,681 Texas State Univ., 4.00%, 3/15/06 (FSA Insured) 2,790 2,940 Tomball Hosp. Auth. 5.50%, 7/1/04 800 810 5.50%, 7/1/05 1,300 1,353 Univ. of Texas, Board of Regents, 5.25%, 8/15/04 2,375 2,422 West Side Calhoun County Dev. Corp., VRDN (Currently 1.03%) # 2,200 2,200 West Side Calhoun County Navigation Dist. BP Chemicals, VRDN (Currently 1.03%) # 1,500 1,500 Total Texas (Cost $61,651) 64,512 VIRGINIA 4.2% Arlington County IDA Virginia Hosp. Center 5.50%, 7/1/09 3,200 3,641 5.50%, 7/1/12 3,760 4,272 Bedford County IDA, PCR, Georgia-Pacific, 4.60%, 8/1/04 780 779 Charles County IDA, IDRB Waste Management 4.875%, 2/1/09 # 750 805 6.25%, 4/1/27 (Tender 4/1/12) # 750 862 Fairfax County, GO, 5.50%, 12/1/05 2,100 2,261 Louisa IDA, Virginia Electric & Power 3.40%, 3/1/31 (Tender 3/1/04) # 3,000 3,000 Virginia Public School Auth., GO, 5.25%, 8/1/05 1,500 1,589 Virginia Beach, GO, Public Improvement, 5.25%, 3/1/09 1,870 2,133 Virginia Port Auth., 5.50%, 7/1/07 # 4,500 5,022 Virginia Transportation Board, U.S. Route 58 Corridor 5.00%, 5/15/05 1,000 1,048 Total Virginia (Cost $24,110) 25,412 WASHINGTON 0.9% King County, GO, 5.25%, 12/1/07 3,195 3,596 Washington, GO, 5.00%, 12/1/06 (MBIA Insured) 1,500 1,644 Total Washington (Cost $4,878) 5,240 WEST VIRGINIA 0.4% West Virginia Hosp. Fin. Auth. Charleston Medical Center 5.90%, 9/1/06 225 246 5.90%, 9/1/06 (Escrowed to Maturity) 930 1,030 6.50%, 9/1/05 160 171 6.50%, 9/1/05 (Escrowed to Maturity) 655 706 Total West Virginia (Cost $1,974) 2,153 WISCONSIN 1.0% Milwaukee Metropolitan Sewage Dist., GO, 6.25%, 10/1/05 3,000 3,240 Wisconsin HEFA Froedert & Community Health Obligation 5.50%, 10/1/07 1,000 1,106 5.50%, 10/1/08 1,250 1,395 Total Wisconsin (Cost $5,399) 5,741 Total Investments in Securities 97.4% of Net Assets (Cost $562,711) $584,577 -------- Futures Contracts ($ 000s) Contract Unrealized Expiration Value Gain (Loss) ---------- -------- ---------- Short, 60 U.S. Treasury 5 Year contracts, $155 par of 5% Chicago, General Obligation Bond pledged as initial margin 3/04 $ (6,826) $ (202) Net payments (receipts) of variation margin to date 183 Variation margin receivable (payable) on open futures contracts $ (19) ------- (ss.) Denominated in U.S. dollar unless otherwise noted # Interest subject to alternative minimum tax ++ All or a portion of this security is pledged to cover margin requirements on futures contracts at February 29, 2004. ! Used in determining portfolio maturity AMBAC AMBAC Assurance Corp. CDA Community Development Administration COP Certificates of Participation DOT Department of Transportation FGIC Financial Guaranty Insurance Company FSA Financial Security Assurance Inc. GO General Obligation HEFA Health & Educational Facility Authority HFC Housing Finance Corp. IDA Industrial Development Authority/Agency IDRB Industrial Development Revenue Bond MBIA MBIA Insurance Corp. PCR Pollution Control Revenue VRDN Variable-Rate Demand Note The accompanying notes are an integral part of these financial statements. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report February 29, 2004 Statement of Assets and Liabilities - -------------------------------------------------------------------------------- ($ 000s) Assets Investments in securities, at value (cost $562,711) $ 584,577 Other assets 28,175 Total assets 612,752 Liabilities Total liabilities 12,599 NET ASSETS $ 600,153 ----------- Net Assets Consist of: Undistributed net investment income (loss) $ 112 Undistributed net realized gain (loss) (966) Net unrealized gain (loss) 21,664 Paid-in-capital applicable to 108,288,666 shares of $0.01 par value capital stock outstanding; 1,000,000,000 shares authorized 579,343 NET ASSETS $ 600,153 ----------- NET ASSET VALUE PER SHARE $ 5.54 ----------- The accompanying notes are an integral part of these financial statements. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report Statement of Operations - -------------------------------------------------------------------------------- ($ 000s) Year Ended 2/29/04 Investment Income (Loss) Interest Income $ 20,871 Expenses Investment management 2,462 Shareholder servicing 294 Custody and accounting 137 Registration 61 Prospectus and shareholder reports 31 Legal and audit 16 Directors 7 Miscellaneous 6 Total expenses 3,014 Net investment income (loss) 17,857 Realized and Unrealized Gain (Loss) Net realized gain (loss) Securities 1,165 Futures (176) Net realized gain (loss) 989 Change in net unrealized gain (loss) Securities 814 Futures (187) Change in net unrealized gain (loss) 627 Net realized and unrealized gain (loss) 1,616 INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 19,473 ---------- The accompanying notes are an integral part of these financial statements. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report Statement of Changes in Net Assets - -------------------------------------------------------------------------------- ($ 000s) Year Ended 2/29/04 2/28/03 Increase (Decrease) in Net Assets Operations Net investment income (loss) $ 17,857 $ 18,301 Net realized gain (loss) 989 1,963 Change in net unrealized gain (loss) 627 4,859 Increase (decrease) in net assets from operations 19,473 25,123 Distributions to shareholders Net investment income (17,829) (18,276) Net realized gain (1,058) (1,859) Decrease in net assets from distributions (18,887) (20,135) Capital share transactions * Shares sold 207,970 214,442 Distributions reinvested 14,765 15,732 Shares redeemed (204,177) (125,933) Increase (decrease) in net assets from capital share transactions 18,558 104,241 Net Assets Increase (decrease) during period 19,144 109,229 Beginning of period 581,009 471,780 End of period $ 600,153 $ 581,009 ---------- ---------- *Share information Shares sold 37,757 39,080 Distributions reinvested 2,685 2,871 Shares redeemed (37,146) (23,014) Increase (decrease) in shares outstanding 3,296 18,937 The accompanying notes are an integral part of these financial statements. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report February 29, 2004 Notes to Financial Statements - -------------------------------------------------------------------------------- NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price Tax-Free Short Intermediate Fund, Inc. (the fund) is registered under the Investment Company Act of 1940 (the 1940 Act) as a diversified, open-end management investment company and commenced operations on December 23, 1983. The fund seeks to provide, consistent with modest price fluctuation, a high level of income exempt from federal income taxes by investing primarily in short- and intermediate-term investment-grade municipal securities. The accompanying financial statements were prepared in accordance with accounting principles generally accepted in the United States of America, which require the use of estimates made by fund management. 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. Debt securities are generally traded in the over-the-counter market. Securities are valued at prices furnished by dealers who make markets in such securities or by an independent pricing service, which considers yield or price of bonds of comparable quality, coupon, maturity, and type, as well as prices quoted by dealers who make markets in such securities. Financial futures contracts are valued at closing settlement prices. 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. Credits The fund earns credits on temporarily uninvested cash balances at the custodian that reduce the fund's custody charges. Custody expense in the accompanying financial statements is presented before reduction for credits. Investment Transactions, Investment Income, and Distributions Income and expenses are recorded on the accrual basis. Premiums and discounts on debt securities are amortized for financial reporting purposes. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the identified cost basis. Payments ("variation margin") made or received to settle the daily fluctuations in the value of futures contracts are recorded as unrealized gains or losses until the contracts are closed. Unrealized gains and losses on futures contracts are included in other assets and other liabilities, respectively, and in the change in net unrealized gain or loss in the accompanying financial statements. Distributions to shareholders are recorded on the ex-dividend date. Income distributions are declared on a daily basis and paid monthly. Capital gain distributions, if any, are declared and paid by the fund, typically on an annual basis. Other In the normal course of business, the fund enters into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is dependent on claims that may be made against the fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote. 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. Futures Contracts During the year ended February 29, 2004, the fund was a party to futures contracts, which provide for the future sale by one party and purchase by another of a specified amount of a specific financial instrument at an agreed upon price, date, time, and place. Risks arise from possible illiquidity of the futures market and from movements in security values and interest rates. Other Purchases and sales of portfolio securities, other than short-term securities, aggregated $259,326,000 and $235,525,000, respectively, for the year ended February 29, 2004. NOTE 3 - FEDERAL INCOME TAXES No provision for federal income taxes is required since the fund intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute to shareholders all of its income and gains. Federal income tax regulations differ from generally accepted accounting principles; therefore, distributions determined in accordance with tax regulations may differ significantly in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. Distributions during the year ended February 29, 2004 were characterized as follows for tax purposes: - -------------------------------------------------------------------------------- Tax-exempt income $ 17,829,000 Long-term capital gain 1,058,000 Total distributions $ 18,887,000 -------------- At February 29, 2004, the tax-basis components of net assets were as follows: - -------------------------------------------------------------------------------- Unrealized appreciation $ 22,006,000 Unrealized depreciation (1,218,000) Net unrealized appreciation (depreciation) 20,788,000 Undistributed tax-exempt income 22,000 Paid-in capital 579,343,000 Net assets $ 600,153,000 -------------- Federal income tax regulations require the fund to defer recognition of capital losses realized on certain futures contract transactions; accordingly, $1,168,000 of realized losses reflected in the accompanying financial statements have not been recognized for tax purposes as of February 29, 2004. For the year ended February 29, 2004, the fund recorded the following permanent reclassifications to reflect tax character. Reclassifications to paid-in capital relate primarily to a tax practice that treats a portion of the proceeds from each redemption of capital shares as a distribution of taxable net investment income and/or realized capital gain. Results of operations and net assets were not affected by these reclassifications. - -------------------------------------------------------------------------------- Undistributed net investment income $ (1,000) Undistributed net realized gain (465,000) Paid-in capital 466,000 At February 29, 2004, the cost of investments for federal income tax purposes was $563,587,000. NOTE 4 - RELATED PARTY TRANSACTIONS The fund is managed by T. Rowe Price Associates, Inc. (the manager or Price Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The investment management agreement between the fund and the manager provides for an annual investment management fee, which is computed daily and paid monthly. The fee consists of an individual fund fee, equal to 0.10% of the fund's average daily net assets, and the fund's pro-rata share of a group fee. The group fee is calculated based on the combined net assets of certain mutual funds sponsored by Price Associates (the group) applied to a graduated fee schedule, with rates ranging from 0.48% for the first $1 billion of assets to 0.295% for assets in excess of $120 billion. The fund's portion of the group fee is determined by the ratio of its average daily net assets to those of the group. At February 29, 2004, the effective annual group fee rate was 0.32%, and investment management fee payable totaled $195,000. In addition, the fund has entered into service agreements with Price Associates and a wholly owned subsidiary of Price Associates (collectively, Price). Price Associates computes the daily share price and maintains the financial records of the fund. T. Rowe Price Services, Inc., provides shareholder and administrative services in its capacity as the fund's transfer and dividend disbursing agent. Expenses incurred pursuant to these service agreements totaled $257,000 for the year ended February 29, 2004, of which $22,000 was payable at period-end. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report Report of Independent Auditors - -------------------------------------------------------------------------------- To the Board of Directors and Shareholders of T. Rowe Price Tax-Free Short-Intermediate Fund, Inc. In our opinion, the accompanying statement of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of T. Rowe Price Tax-Free Short-Intermediate Fund, Inc. (the "Fund") at February 29, 2004, and the results of its operations, the changes in its net assets and the financial highlights for each of the fiscal periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with auditing standards generally accepted in the United States of America, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 29, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Baltimore, Maryland March 22, 2004 T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report Tax Information (Unaudited) for the Tax Year Ended 2/29/04 - -------------------------------------------------------------------------------- We are providing this information as required by the Internal Revenue Code. The amounts shown may differ from those elsewhere in this report because of differences between tax and financial reporting requirements. The fund's distributions to shareholders included: o $1,525,000 from long-term capital gains, of which $466,000 was subject to the 15% rate gains category, and $1,059,000 to the 20% rate gains category. o $17,953,000 which qualified as exempt-interest dividends. Information on Proxy Voting - -------------------------------------------------------------------------------- A description of the policies and procedures that the T. Rowe Price Tax-Free Short-Intermediate Fund uses to determine how to vote proxies relating to portfolio securities is available, without charge, upon request by calling 1-800-225-5132. It also appears in the fund's Statement of Additional Information (Form 485B), which can be found on the SEC's Web site, www.sec.gov. T. Rowe Price Tax-Free Short-Intermediate Fund - -------------------------------------------------------------------------------- Certified Annual Report About the Fund's Directors and Officers - -------------------------------------------------------------------------------- Your fund is governed by a Board of Directors that meets regularly to review investments, performance, expenses, and other business matters, and is responsible for protecting the interests of shareholders. The majority of the fund's directors are independent of T. Rowe Price Associates, Inc. (T. Rowe Price); "inside" directors are officers of T. Rowe Price. The Board of Directors elects the fund's officers, who are listed in the final table. The business address of each director and officer is 100 East Pratt Street, Baltimore, MD 21202. The Statement of Additional Information includes additional information about the fund directors and is available without charge by calling a T. Rowe Price representative at 1-800-225-5132. - -------------------------------------------------------------------------------- Independent Directors Name (Year of Birth) Principal Occupation(s) During Past 5 Years and Year Elected* Directorships of Other Public Companies Anthony W. Deering Director, Chairman of the Board, President, and (1945) Chief Executive Officer, The Rouse Company, 1983 (Tax-Exempt real estate developers; Director, Mercantile Money, Tax-Free Bank (4/03 to present) Short-Intermediate, Tax-Free Income) 1984 (Tax-Free High Yield) 1992 (Tax-Free Intermediate Bond) Donald W. Dick, Jr. Principal, EuroCapital Advisors, LLC, an (1943) acquisition and management advisory firm 2001 (all tax-free funds) David K. Fagin Director, Golden Star Resources Ltd., Canyon (1938) Resources Corp. (5/00 to present), and 2001 (all tax-free funds) Pacific Rim Mining Corp. (2/02 to present); Chairman and President, Nye Corp. Karen N. Horn Managing Director and President, Global Private (1943) Client Services, Marsh Inc.; Managing Director 2003 (all tax-free funds) and Head of International Private Banking, Bankers Trust; Director, Eli Lilly and Company F. Pierce Linaweaver President, F. Pierce Linaweaver & Associates, (1934) Inc., consulting environmental and civil engineers 1979 (Tax-Free Income) 1983 (Tax-Exempt Money, Tax-Free Short-Intermediate) 1984 (Tax-Free High Yield) 1992 (Tax-Free Intermediate Bond) * Each independent director oversees 111 T. Rowe Price portfolios and serves until retirement, resignation, or election of a successor. - -------------------------------------------------------------------------------- Independent Directors (continued) Name (Year of Birth) Principal Occupation(s) During Past 5 Years and Year Elected* Directorships of Other Public Companies John G. Schreiber Owner/President, Centaur Capital Partners, Inc., a (1946) real estate investment company; Senior Advisor 1992 (all tax-free funds) and Partner, Blackstone Real Estate Advisors, L.P.; Director, AMLI Residential Properties Trust, Host Marriott Corp., and The Rouse Company * Each independent director oversees 111 T. Rowe Price portfolios and serves until retirement, resignation, or election of a successor. Inside Directors Name (Year of Birth) Year Elected** [Number of T. Rowe Price Principal Occupation(s) During Past 5 Years and Portfolios Overseen] Directorships of Other Public Companies William T. Reynolds,CFA, Director and Vice President, T. Rowe Price CIC and T. Rowe Price Group, Inc.; Director, (1948) T. Rowe Price Global Asset Management Limited 1989 (Tax-Free High Yield) 1990 (Tax-Free Income) 1991 (Tax-Exempt Money) 1994 (Tax-Free Short- Intermediate, Tax-Free Intermediate Bond) [37] James S. Riepe Director and Vice President, T. Rowe Price; (1943) Vice Chairman of the Board, Director, and 1983 (Tax-Exempt Money, Vice President, T. Rowe Price Group, Inc.; Tax-Free Short- Chairman of the Board and Director, T. Rowe Intermediate, Tax-Free Price Global Asset Management Limited, T. Rowe Income) Price Global Investment Services, Inc., T. Rowe 1984 (Tax-Free High Yield) Price Retirement Plan Services, Inc., and 1992 (Tax-Free T. Rowe Price Services, Inc.; Chairman of the Intermediate Bond) Board, Director, President, and Trust Officer, [111] T. Rowe Price Trust Company; Director, T. Rowe Price International, Inc.; Chairman of the Board (all tax-free funds) ** Each inside director serves until retirement, resignation, or election of a successor. - -------------------------------------------------------------------------------- Inside Directors (continued) Name (Year of Birth) Year Elected** [Number of T. Rowe Price Principal Occupation(s) During Past 5 Years and Portfolios Overseen] Directorships of Other Public Companies M. David Testa, CFA, CIC Director and Vice President, T. Rowe Price and (1944) T. Rowe Price Trust Company; Vice Chairman of 1997 (all tax-free funds) the Board, Director, and Vice President, T. Rowe [111] Price Group, Inc.; Chairman of the Board and Director, T. Rowe Price International, Inc.; Director, T. Rowe Price Global Asset Management Limited and T. Rowe Price Global Investment Services Limited ** Each inside director serves until retirement, resignation, or election of a successor. Officers Name (Year of Birth) Title and Fund(s) Served Principal Occupation(s) Stephen V. Booth, CPA (1961) Vice President, T. Rowe Price, T. Rowe Vice President, all tax-free funds Price Group, Inc., and T. Rowe Price Trust Company Steven G. Brooks, CFA (1954) Vice President, T. Rowe Price and Vice President, Tax-Exempt Money Fund T. Rowe Price Group, Inc. Joseph A. Carrier, CPA (1960) Vice President, T. Rowe Price, T. Rowe Treasurer, all tax-free funds Price Group, Inc., and T. Rowe Price Investment Services, Inc. Maria H. Condez (1962) Employee, T. Rowe Price Assistant Vice President, Tax-Exempt Money Fund G. Richard Dent (1960) Vice President, T. Rowe Price and Vice President, Tax-Exempt Money, T. Rowe Price Group, Inc. Tax-Free High Yield, and Tax-Free Income Funds Roger L. Fiery III, CPA (1959) Vice President, T. Rowe Price, T. Rowe Vice President, all tax-free funds Price Group, Inc., T. Rowe Price Trust Company, and T. Rowe Price International, Inc. Gregory S. Golczewski (1966) Vice President, T. Rowe Price and Vice President, Tax-Exempt Money, T. Rowe Price Trust Company Tax-Free High Yield, Tax-Free Income, Tax-Free Intermediate Bond, and Tax-Free Short-Intermediate Funds Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe Price International for at least five years. - -------------------------------------------------------------------------------- Officers (continued) Name (Year of Birth) Title and Fund(s) Served Principal Occupation(s) Charles B. Hill (1961) Vice President, T. Rowe Price and President, Tax-Free Intermediate Bond T. Rowe Price Group, Inc. and Tax-Free Short-Intermediate Funds; Vice President, Tax-Free High Yield and Tax-Free Income Funds Henry H. Hopkins (1942) Director and Vice President, T. Rowe Vice President, all tax-free funds Price Group, Inc., T. Rowe Price Investment Services, Inc., T. Rowe Price Services, Inc., and T. Rowe Price Trust Company; Vice President, T. Rowe Price, T. Rowe Price International, Inc., and T. Rowe Price Retirement Plan Services, Inc. T. Dylan Jones (1971) Assistant Vice President, T. Rowe Price Assistant Vice President, Tax-Exempt Money Fund Marcy M. Lash (1963) Vice President, T. Rowe Price and Vice President, Tax-Exempt Money, T. Rowe Price Group, Inc. Tax-Free High Yield, Tax-Free Income, and Tax-Free Short-Intermediate Funds Alan D. Levenson (1958) Vice President, T. Rowe Price and Vice President, Tax-Exempt Money Fund T. Rowe Price Group, Inc. Patricia B. Lippert (1953) Assistant Vice President, T. Rowe Secretary, all tax-free funds Price and T. Rowe Price Investment Services, Inc. Joseph K. Lynagh, CFA (1958) Vice President, T. Rowe Price and President, Tax-Exempt Money Fund T. Rowe Price Group, Inc. Konstantine B. Mallas (1963) Vice President, T. Rowe Price and Vice President, Tax-Free High Yield, T. Rowe Price Group, Inc. Tax-Free Income, Tax-Free Intermediate Bond, and Tax-Free Short-Intermediate Funds James M. McDonald (1949) Vice President, T. Rowe Price, Vice President, Tax-Exempt Money Fund T. Rowe Price Group, Inc., and T. Rowe Price Trust Company Hugh D. McGuirk, CFA (1960) Vice President, T. Rowe Price and Vice President, Tax-Free High Yield, T. Rowe Price Group, Inc. Tax-Free Income, Tax-Free Intermediate Bond, and Tax-Free Short-Intermediate Funds Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe Price International for at least five years. - -------------------------------------------------------------------------------- Officers (continued) Name (Year of Birth) Title and Fund(s) Served Principal Occupation(s) Mary J. Miller, CFA (1955) Vice President, T. Rowe Price and President, Tax-Free High Yield and T. Rowe Price Group, Inc. Tax-Free Income Funds; Executive Vice President, Tax-Free Intermediate Bond Fund; Vice President, Tax-Exempt Money and Tax-Free Short-Intermediate Funds James M. Murphy, CFA (1967) Vice President, T. Rowe Price and Executive Vice President, T. Rowe Price Group, Inc.; formerly Tax-Free High Yield Fund Portfolio Manager, Prudential Investments (to 2000) Stephen P. Richter, CFA (1969) Vice President, T. Rowe Price; formerly Vice President, Tax-Free High Yield Vice President, Euler ACI (to 2000) and Tax-Free Income Funds Timothy G. Taylor (1975) Employee, T. Rowe Price Assistant Vice President, Tax-Free Intermediate Bond and Tax-Free Short-Intermediate Funds Edward A. Wiese, CFA (1959) Vice President, T. Rowe Price, T. Rowe Vice President, Tax-Exempt Money, Price Group, Inc., and T. Rowe Price Tax-Free Intermediate Bond, and Trust Company; Director, Vice President, Tax-Free Short-Intermediate Funds and Chief Investment Officer, T. Rowe Price Savings Bank Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe Price International for at least five years. Item 2. Code of Ethics. As of the end of the period covered by this report, the registrant has adopted a code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. A copy of this code of ethics is filed as an exhibit to this Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the period covered by this report. Item 3. Audit Committee Financial Expert. The registrant's Board of Directors/Trustees has determined that Mr. David K. Fagin qualifies as an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Fagin is considered independent for purposes of Item 3 of Form N-CSR. Item 4. Principal Accountant Fees and Services. (a) - (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant's principal accountant were as follows: 2004 2003 Audit Fees $8,934 $8,618 Audit-Related Fees 769 -- Tax Fees 2,490 2,179 All Other Fees 124 129 Audit fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the accountant in connection with statutory and regulatory filings. Audit-related fees include amounts reasonably related to the performance of the audit of the registrant's financial statements, specifically the issuance of a report on internal controls. Tax fees include amounts related to tax compliance, tax planning, and tax advice. Other fees include the registrant's pro-rata share of amounts for agreed-upon procedures in conjunction with service contract approvals by the registrant's Board of Directors/Trustees. (e)(1) The registrant's audit committee has adopted a policy whereby audit and non-audit services performed by the registrant's principal accountant for the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant require pre-approval in advance at regularly scheduled audit committee meetings. If such a service is required between regularly scheduled audit committee meetings, pre-approval may be authorized by one audit committee member with ratification at the next scheduled audit committee meeting. Waiver of pre-approval for audit or non-audit services requiring fees of a de minimis amount is not permitted. (2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not applicable. (g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant's principal accountant for non-audit services rendered to the registrant, its investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant were $719,000 and $671,000, respectively, and were less than the aggregate fees billed for those same periods by the registrant's principal accountant for audit services rendered to the T. Rowe Price Funds. (h) All non-audit services rendered in (g) above were pre-approved by the registrant's audit committee. Accordingly, these services were considered by the registrant's audit committee in maintaining the principal accountant's independence. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments. Not applicable. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not applicable. Item 9. Submission of Matters to a Vote of Security Holders. Not applicable. Item 10. 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-CSR 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 half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 11. Exhibits. (a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is attached. (2) 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. (3) Not applicable. (b) A certification by the registrant's principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is 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 Tax-Free Short-Intermediate Fund, Inc. By /s/ James S. Riepe James S. Riepe Principal Executive Officer Date April 16, 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 April 16, 2004 By /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer Date April 16, 2004 EX-99.CERT 2 ex-99cert.txt 302 CERTIFICATIONS Item 11(a)(2). CERTIFICATIONS I, James S. Riepe, certify that: 1. I have reviewed this report on Form N-CSR of T. Rowe Price Tax-Free Short-Intermediate Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: April 16, 2004 /s/ James S. Riepe James S. Riepe Principal Executive Officer CERTIFICATIONS I, Joseph A. Carrier, certify that: 1. I have reviewed this report on Form N-CSR of T. Rowe Price Tax-Free Short-Intermediate Fund; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: April 16, 2004 /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer EX-99.CODE ETH 4 ex-99_codeeth.txt CODE OF ETHICS Codeof Ethics for Principal Executive and Senior Financial Officers of The Price Funds under the Sarbanes-Oxley Act of 2002 I. General Statement. This Code of Ethics (the "Price Funds S-O Code") has been designed to bring the Price Funds into compliance with the applicable requirements of the Sarbanes-Oxley Act of 2002 (the "Act") rules promulgated by The Securities and Exchange Commission thereunder ("Regulations"). The Price Funds S-O Code applies solely to the Principal Executive Officer, Principal Financial Officer, Principal Accounting Officer or Controller of, or persons performing similar functions for, a Price Fund (whether such persons are employed by a Price Fund or third party) ("Covered Officers"). The "Price Funds" shall include each mutual fund that is managed, sponsored and distributed by affiliates of T. Rowe Price Group, Inc. ("Group"). The investment managers to the Price Funds will be referred to as the "Price Fund Advisers." A list of Covered Officers is attached as Exhibit A. The Price Fund Advisers have, along with their parent, T. Rowe Price Group, Inc. ("Group") also maintained a comprehensive Code of Ethics and Conduct (the "Group Code") since 1972, which applies to all officers, directors and employees of the Price Funds, Group and its affiliates. As mandated by the Act, Group has adopted a Code (the "Group S-O Code"), similar to the Price Funds S-O Code, which applies solely to its principal executive and senior financial officers. The Group S-O Code and the Price Funds S-O Code will be referred to collectively as the "S-O Codes". The Price Funds S-O Code has been adopted by the Price Funds in accordance with the Act and Regulations thereunder and will be administered in conformity with the disclosure requirements of Item 2 of Form N-CSR. The S-O Codes are attachments to the Group Code. In many respects the S-O Codes are supplementary to the Group Code, but the Group Code is administered separately from the S-O Codes, as the S-O Codes are from each other. II. Purpose of the Price Funds S-O Code. The purpose of the Price Funds S-O Code, as mandated by the Act and the Regulations, is to establish standards that are reasonably designed to deter wrongdoing and to promote: Ethical Conduct. Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. Disclosure. Full, fair, accurate, timely and understandable disclosure in reports and documents that the Price Funds file with, or submit to, the SEC and in other public communications made by the Price Funds. Compliance. Compliance with applicable governmental laws, rules and regulations. Reporting of Violations. The prompt internal reporting of violations of the Price Funds S-O Code to an appropriate person or persons identified in the Price Funds S-O Code. Accountability. Accountability for adherence to the Price Funds S-O Code. III. Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest. Overview. Each Covered Officer owes a duty to the Price Funds to adhere to a high standard of honesty and business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his or her service to, the Price Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with a Price Fund. Certain conflicts of interest covered by the Price Funds S-O Code arise out of the relationships between Covered Officers and the Price Funds and may already be subject to provisions regulating conflicts of interest in the Investment Company Act of 1940 ("Investment Company Act"), the Investment Advisers Act of 1940 ("Investment Advisers Act") and the Group Code. For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Price Fund because of their status as "affiliated persons" of a Price Fund. The compliance programs and procedures of the Price Funds and Price Fund Advisers are designed to prevent, or identify and correct, violations of these provisions. Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between a Price Fund and its Price Fund Adviser (and its affiliates) of which the Covered Officers may also be officers or employees. As a result, the Price Funds S-O Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Price Funds or for the Price Fund Advisers, or for both), be involved in establishing policies and implementing decisions which will have different effects on these entities. The participation of the Covered Officers in such activities is inherent in the contractual relationship between each Price Fund and its respective Price Fund Adviser. Such participation is also consistent with the performance by the Covered Officers of their duties as officers of the Price Funds and, if consistent with the provisions of the Investment Company Act and the Investment Advisers Act, it will be deemed to have been handled ethically. Other conflicts of interest are covered by the Price Funds S-O Code, even if these conflicts of interest are not addressed by or subject to provisions in the Investment Company Act and the Investment Advisers Act. Whenever a Covered Officer is confronted with a conflict of interest situation where he or she is uncertain as to the appropriate action to be taken, he or she should discuss the matter with the Chairperson of Group's Ethics Committee or another member of the Committee. Handling of Specific Types of Conflicts. Each Covered Officer (and close family members) must not: Entertainment. Accept entertainment from any company with which any Price Fund or any Price Fund Adviser has current or prospective business dealings, including portfolio companies, unless such entertainment is in full compliance with the policy on entertainment as set forth in the Group Code. Gifts. Accept any gifts, except as permitted by the Group Code. Improper Personal Influence. Use his or her personal influence or personal relationships improperly to influence investment decisions, brokerage allocations or financial reporting by the Price Funds to the detriment of any one or more of the Price Funds. Taking Action at the Expense of a Price Fund. Cause a Price Fund to take action, or fail to take action, for the personal benefit of the Covered Officer rather than for the benefit of one or more of the Price Funds. Misuse of Price Funds' Transaction Information. Use knowledge of portfolio transactions made or contemplated for a Price Fund or any other clients of the Price Fund Advisers to trade personally or cause others to trade in order to take advantage of or avoid the market impact of such portfolio transactions. Outside Business Activities. Engage in any outside business activity that detracts from a Covered Officer's ability to devote appropriate time and attention to his or her responsibilities to a Price Fund. Service Providers. Excluding Group and its affiliates, have any ownership interest in, or any consulting or employment relationship with, any of the Price Funds' service providers, except that an ownership interest in public companies is permitted Receipt of Payments. Have a direct or indirect financial interest in commissions, transaction charges, spreads or other payments paid by a Price Fund for effecting portfolio transactions or for selling or redeeming shares other than an interest (such as compensation or equity ownership) arising from the Covered Officer's employment by Group or any of its affiliates. Service as a Director or Trustee. Serve as a director, trustee or officer of any public or private company or a non-profit organization that issues securities eligible for purchase by any of the Price Funds, unless approval is obtained as required by the Group Code. IV. Covered Officers' Specific Obligations and Accountabilities. A. Disclosure Requirements and Controls. Each Covered Officer must familiarize himself or herself with the disclosure requirements (Form N-1A registration statement, proxy (Schedule 14A), shareholder reports, Forms N-SAR, N-CSR, etc.) applicable to the Price Funds and the disclosure controls and procedures of the Price Fund and the Price Fund Advisers. B. Compliance with Applicable Law. It is the responsibility of each Covered Officer to promote compliance with all laws, rules and regulations applicable to the Price Funds and the Price Fund Advisers. Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Price Funds and the Price Fund Advisers and take other appropriate steps with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Price Funds file with, or submit to, the SEC, and in other public communications made by the Price Funds. C. Fair Disclosure. Each Covered Officer must not knowingly misrepresent, or cause others to misrepresent, facts about a Price Fund to others, whether within or outside the Price organization, including to the Price Fund's directors and auditors, and to governmental regulators and self-regulatory organizations. D. Initial and Annual Affirmations. Each Covered Officer must: 1. Upon adoption of the Price Funds S-O Code (or thereafter, as applicable, upon becoming a Covered Officer), affirm in writing that he or she has received, read, and understands the Price Funds S-O Code. 2. Annually affirm that he or she has complied with the requirements of the Price Funds S-O Code. E. Reporting of Material Violations of the Price Funds S-O Code. If a Covered Officer becomes aware of any material violation of the Price Funds S-O Code or laws and governmental rules and regulations applicable to the operations of the Price Funds, he or she must promptly report the violation ("Report") to the Chief Legal Counsel of the Price Funds ("CLC"). Failure to report a material violation will be considered itself a violation of the Price Funds S-O Code. The CLC is identified in the attached Exhibit B. It is the Price Funds policy that no retaliation or other adverse action will be taken against any Covered Officer or other employee of a Price Fund, a Price Fund Adviser or their affiliates based upon any lawful actions of the Covered Officer or employee with respect to a Report made in good faith. F. Annual Disclosures. Each Covered Officer must report, at least annually, all affiliations or other relationships as called for in the "Annual Questionnaire for Executive Officers and/or Employee Directors/Trustees of Group and the Price Funds." V. Administration of the Price Funds S-O Code. The Ethics Committee is responsible for administering the Price Funds S-O Code and applying its provisions to specific situations in which questions are presented. A. Waivers and Interpretations. The Chairperson of the Ethics Committee has the authority to interpret the Price Funds S-O Code in any particular situation and to grant waivers where justified, subject to the approval of the Joint Audit Committee of the Price Funds. All material interpretations concerning Covered Officers will be reported to the Joint Audit Committee of the Price Funds at its next meeting. Waivers, including implicit waivers, to Covered Officers will be publicly disclosed as required in the Instructions to N-CSR. Pursuant to the definition in the Regulations, an implicit waiver means a Price Fund's failure to take action within a reasonable period of time regarding a material departure from a provision of the Price Funds S-O Code that has been made known to an "executive officer" (as defined in Rule 3b-7 under the Securities Exchange Act of 1934) of a Price Fund. An executive officer of a Price Fund includes its president and any vice-president in charge of a principal business unit, division or function. B. Violations/Investigations. The following procedures will be followed in investigating and enforcing the Price Funds S-O Code: 1. The CLC will take or cause to be taken appropriate action to investigate any potential or actual violation reported to him or her. 2. The CLC, after consultation if deemed appropriate with Outside Counsel to the Price Funds, will make a recommendation to the appropriate Price Funds Board regarding the action to be taken with regard to each material violation. Such action could include any of the following: a letter of censure or suspension, a fine, a suspension of trading privileges or termination of officership or employment. In addition, the violator may be required to surrender any profit realized (or loss avoided) from any activity that is in violation of the Price Funds S-O Code. VI. Amendments to the Price Funds S-O Code. Except as to the contents of Exhibit A and Exhibit B, the Price Funds S-O Code may not be materially amended except in written form, which is specifically approved or ratified by a majority vote of each Price Fund Board, including a majority of the independent directors on each Board. VII. Confidentiality. All reports and records prepared or maintained pursuant to the Price Funds S-O Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law, the Price Funds S-O Code or as necessary in connection with regulations under the Price Funds S-O Code, such matters shall not be disclosed to anyone other than the directors of the appropriate Price Fund Board, Outside Counsel to the Price Funds, members of the Ethics Committee and the CLC and authorized persons on his or her staff. Approved: October 2003 Exhibit A Persons Covered by the Price Funds S-O Code of Ethics James S. Riepe, Chairman and Chief Executive Officer Joseph A. Carrier, Treasurer and Chief Financial Officer Exhibit B Chief Legal Counsel to the Price Funds Henry H. Hopkins EX-99.906 5 ex-99_906cert.txt 906 CERTIFICATION Item 11(b). CERTIFICATION UNDER SECTION 906 OF SARBANES-OXLEY ACT OF 2002 Name of Issuer: T. Rowe Price Tax-Free Short-Intermediate Fund In connection with the Report on Form N-CSR for the above named issuer, the undersigned hereby certifies, to the best of his knowledge, that: 1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; 2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer. Date: April 16, 2004 /s/ James S. Riepe James S. Riepe Principal Executive Officer Date: April 16, 2004 /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----