Proxy Information
This proxy material concerns the following T. Rowe Price funds:

Growth Stock Fund
New Era Fund
New Horizons Fund

Dear Shareholder:

We cordially invite you to attend an annual shareholder meeting of the Growth
Stock Fund, New Era Fund, and New Horizons Fund on Tuesday, October 23, 2001.
There are several items on the agenda, but the most important one is the
election of fund directors. We ask you to read the enclosed information
carefully and to submit your vote.

Recognizing the important role independent directors play in governing our
funds, the current fund directors are asking shareholders to elect an expanded
slate of directors that will increase the number of independent directors
serving each fund. If the entire slate is approved, each fund Board will be
composed of at least two-thirds independent directors. All of the directors
standing for election currently serve on the Boards of multiple T. Rowe Price
funds.

Since the director proposal is common to each of these funds, we have combined
our discussion into this single proxy statement - which will reduce fund
expenses. If you own other Price funds - as do most of our investors - you will
receive a combined proxy for all of the other Price funds. Please note that we
are required to provide you one proxy card for each account that you own.

A second proposal recommends amending the charters of our three oldest funds,
Growth Stock, New Era, and New Horizons, to conform them to those of other Price
funds, which permit the creation of series and share classes. These provisions
will enable us to provide additional services desired by certain types of
investors and to allocate fund expenses accordingly. For example, a new class of
shares designed to be sold to institutional investors could be added to one or
more of the funds.

Finally, the directors of the New Horizons Fund recommend removing a provision
of that fund's charter that is no longer necessary because of changes in state
law. The subject of that provision is now addressed by the fund's comprehensive
Code of Ethics.

We realize that most of our shareholders will not be able to attend the meeting
and vote their shares in person. However, we do need your vote. You can vote by
mail, telephone, or through the Internet, as explained in the enclosed material.
If you later decide to attend the meeting, you may revoke your proxy and vote
your shares in person if you wish. By voting promptly, you can help your fund
                                   ------------------------------------------
avoid the expense of additional mailings.
----------------------------------------

If you would like additional information concerning the matters proposed for
action at the meetings, please call one of our service representatives at
1-800-541-5910. Your participation in this vote is extremely important.

Sincerely,

James S. Riepe
Chairman of the Board
T. Rowe Price Investment Services, Inc.
                                                                 GSF