T. Rowe Price Institutional International Funds, Inc.
T. Rowe Price Institutional International Bond Fund


The T. Rowe Price Institutional International Bond Fund currently has the
following policy:

Normally, the fund will invest at least 80% of its net assets (including
any borrowings for investment purposes) in foreign bonds and 50% of its
net assets in foreign bonds that are rated within the three highest
credit categories (i.e., A- or equivalent, or better), as determined by
at least one major credit rating agency or, if unrated, deemed to be of
comparable quality by T. Rowe Price.

This policy is changing to the following (new language is underlined):

Normally, the fund will invest at least 80% of its net assets (including
any borrowings for investment purposes) in foreign bonds and 65% of its
net assets in non-U.S. dollar-denominated foreign bonds that are rated
investment-grade (i.e., BBB- or equivalent, or better), as determined by
at least one major credit rating agency or, if unrated, deemed to be of
comparable quality by T. Rowe Price.

* The overall noninvestment-grade limit remains at 25% and no other
limits are changing.  In addition, for any split-rated bonds, the higher
rating should be applied for purposes of the 65% investment-grade limit,
which is how the fund currently treats such securities.