Exhibit to Accompany
Item 77J
Form N-SAR
Wasatch Funds, Inc.
(the "Funds")



In accordance to the provisions of Statement of Position 93 - 2
(SOP 93 - 2) "Determination, Disclosure and Financial Statement
Presentation of Income, Capital Gain and Return of Capital
Distributions by Investment Companies," the Funds are required
to report the accumulated net investment income (loss) and
accumulated net capital gain (loss) accounts to approximate
amounts available for future distributions on a tax basis
(or to offset future realized capital gains).  Accordingly,
reclassifications were recorded to increase undistributed
net investment income by $1,957,086, $938,768, $1,187,334,
$214,895, $380,216, $27,199 and $0 and decrease
undistributed net realized gain on investments by
$12,074,352, $12,078,144, $7,680,816, $782,006, $4,896,906,
$0 and $0 and increase paid-in-capital in excess of par by
$10,117,266, $11,139,376, $6,493,482, $567,111, $4,516,690,
$27,199 and $0 for the Micro Cap, Small Cap Growth, Core Growth,
Small Cap Value, Ultra Growth, Global Technology and
U.S. Treasury Funds, respectively, for the six months ended
March 31, 2001.

The reclassification has no impact on the net asset value
of the Fund and is designed to present the Funds' capital
accounts on a tax basis.