N-30D 1 exc47122.txt T. ROWE PRICE EQUITY MARKET INDEX FUNDS (EXC) SEMIANNUAL REPORT EQUITY MARKET INDEX FUNDS JUNE 30, 2002 T. ROWE PRICE(R) REPORT HIGHLIGHTS ----------------- EQUITY MARKET INDEX FUNDS o Despite an improving economy and continued low interest rates, stocks fell sharply in the first half of 2002. o Smaller and value stocks outpaced larger and growth-oriented issues, respectively. o The Equity Market Index Funds closely tracked their benchmarks in the last six months. o Recent stock performance has been discouraging, but renewed economic and earnings growth and accounting reforms should help boost investor confidence in equities over time. REPORTS ON THE WEB ------------------ SIGN UP FOR OUR E-MAIL PROGRAM, AND YOU CAN BEGIN TO RECEIVE UPDATED FUND REPORTS AND PROSPECTUSES ONLINE RATHER THAN THROUGH THE MAIL. LOG ON TO YOUR ACCOUNT AT WWW.TROWEPRICE.COM FOR MORE INFORMATION. FELLOW SHAREHOLDERS ------------------- Despite an improvement in economic growth and continued low interest rates, U.S. stocks extended last year's decline in the first half of 2002. Investor sentiment was poor amid lackluster corporate earnings news, fears of another terrorist attack against the U.S., increased tensions in the Middle East and southern Asia, and reports of regulators investigating several companies with questionable accounting practices. MARKET ENVIRONMENT The economy changed dramatically over the past six months, moving from recession to expansion as signs of recovery emerged at the beginning of 2002. The 6.1% annualized GDP growth rate in the first quarter was driven primarily by an end to the inventory liquidation cycle, which supported production and employment trends. At the same time, corporate cost-cutting and strong productivity gains improved profit margins and prospects for corporate profits. With inflation subdued, the Federal Reserve kept the federal funds target rate steady at 1.75%--a 40-year low--in the last six months to encourage the budding recovery. WILSHIRE 5000 RETURNS BY SECTOR ------------------------------- Periods Ended 6/30/02 6 Months 12 Months --------------------- -------- --------- Materials 7.21% 6.31% Consumer Staples 5.65 12.41 Energy 2.67 -3.04 Financials -1.38 -5.23 Industrials and Business Services -6.22 -12.13 Consumer Discretionary -8.76 -13.85 Utilities -10.92 -25.61 Health Care -17.51 -16.22 Information Technology -30.68 -38.27 Telecommunication Services -33.81 -40.89 In the first three months of the year, stocks generally rose amid optimism about the improving economy. However, larger issues overshadowed the economic recovery in the second quarter, such as continued sluggish cor-porate earnings growth, escalating Israeli-Palestinian violence, the possibility of war between nuclear rivals India and Pakistan, and the threat of new terrorist attacks against the U.S. In addition, following the collapse of energy-trader Enron, investors were quick to discard shares of companies whose bookkeeping was suspected as being anything less than honest and transparent. By June 30, several major stock indexes had retreated to levels not seen since the weeks following September 11. Continuing a trend that prevailed last year, small- and mid-cap stocks performed better than their larger peers in the last six months--a phenomenon often observed at the end of a recession. Another trend that remained intact was the dominance of value stocks over their growth counterparts. The degree of outperformance, however, was greatest in the small-cap segment. Initial public offerings were far from plentiful in the last six months, and, except for the highly controversial acquisition of COMPAQ by Hewlett-Packard, merger and acquisition activity remained subdued. Several relatively new companies with heavy debt burdens and poor credit ratings--particularly in the telecommunications industry--filed for Chapter 11 bankruptcy protection in the last six months, while others fought to stay solvent by shedding assets, raising capital, tapping lines of credit, and reorganizing. SECTOR PERFORMANCE SECTOR DIVERSIFICATION ---------------------- Percent of Extended Equities Equity Total Equity Equity As of 6/30/02 Index 500 Market Index Market Index ------------- --------- ------------ ------------ Consumer Discretionary 13.6% 14.8% 18.4% Consumer Staples 9.9 8.5 4.0 Energy 7.6 6.1 4.7 Financials 19.8 22.0 28.7 Health Care 13.8 13.6 11.3 Industrials and Business Services 10.9 11.2 11.7 Information Technology 14.0 14.0 13.2 Materials 3.2 3.1 3.7 Telecommunication Services 4.1 3.5 1.0 Utilities 3.1 3.2 3.3 The consumer staples sector, particularly food and beverage companies and makers of various household products--including Coca-Cola and Procter & Gamble--was robust in the difficult environment of the last six months. In the consumer discretionary sector, automobile manufacturers, fast food restaurants, and retailers performed well, but Wal-Mart was flat and Home Depot declined 28%. Financial stocks, supported by continued low interest rates, generally rose in the last six months, but gains were not uniform. In the banking and insurance groups, smaller entities produced good returns, but industry giants Citigroup and American International Group declined 23% and 14%, respectively. Brokerage stocks fell more than 20% amid unfriendly market conditions. Among natural resource companies, small oil drilling firms tracked a surge in oil prices, but large integrated U.S. oil companies were flat. Gold-mining shares vaulted higher as gold prices climbed due to a weakening U.S. dollar, diminished confidence in U.S. businesses, and fears of military conflicts overseas. Although heightened military activity and the U.S.-led global war on terrorism were very supportive for U.S. defense stocks, they weighed heavily on higher-risk market segments, particularly the information technology sector. Tech companies posted double-digit declines in the last six months amid overcapacity and tepid demand, while telecommunication services stocks suffered from the same ailments, plus heavy debt burdens and credit downgrades. One of the worst performers in this group was long-distance carrier WorldCom, which plunged more than 90%--and that was before the company admitted in late June that fraudulent accounting had inflated the company's profits for the previous five quarters. PORTFOLIO CHARACTERISTICS ------------------------- Extended Equity Total Equity Equity As of 6/30/02 Index 500 Market Index Market Index ------------- --------- ------------ ------------ Market Cap (Investment- Weighted Median) $45.2 billion $27.9 billion $1.5 billion ---------------- ------------- ------------- ----- Earnings Growth Rate Estimated Next 5 Years* 13.6% 13.8% 14.3% ------------- ----- ----- ----- P/E Ratio (Based on Next 12 Months' Estimated Earnings) 18.2 18.4 18.1 * Source data: IBES. Forecasts are in no way indicative of future investment returns. Health care stocks generally declined in the last six months. Large-cap pharmaceutical companies fell sharply, as prospects dimmed for new blockbuster drugs over the next few years. Biotechnology shares also tumbled, but health care providers and service companies rose strongly. EQUITY INDEX 500 FUND Your fund returned -13.29% in the last six months and -18.18% for the one-year period ended June 30, 2002. As shown in the table, the fund closely tracked but slightly lagged the S&P 500 Stock Index in both periods. The fund usually trails the index marginally because of its annual operating and management expenses. The information technology sector continued its seemingly inexorable decline in the last six months and represented 14% of equities at the end of June, compared with 32.5% in March 2000. Tech stocks detracted the most from fund performance, particularly bellwethers Intel, Microsoft, and IBM. Health care was the fund's third-largest sector and third-largest detractor to performance. Stocks of large-cap pharmaceutical companies fell amid political scrutiny of their pricing of drugs and profitability, and Bristol-Myers Squibb--which reported a sharp drop in sales and earnings due to competition from generic drugs--was one of our weakest holdings. PERFORMANCE COMPARISON ---------------------- Periods Ended 6/30/02 6 Months 12 Months --------------------- -------- --------- Equity Index 500 Fund -13.29% -18.18% S&P 500 Stock Index -13.16 -17.99 The financial sector remained the largest sector in the last six months. Bank of America, Wells Fargo, and Wachovia Bank were among our top contributors to performance. The sector performed relatively well, but Citigroup--one of the largest components of the S&P 500 Index--was one of our biggest detractors. The company's earnings were hurt by its exposure to Argentina, whose economy and currency collapsed at the beginning of the year, and to several U.S. corporations that are having difficulties repaying loans. GE, the second-largest U.S. company in terms of market capitalization, was our weakest holding in the last six months. The company fell in sympathy with, though not as sharply as, Tyco International, another large conglomerate in the industrials and business services category known for growing through aggressive acquisitions. Tyco was toppled by several factors, including an aborted plan to break up the company into four parts, weaker-than-expected earnings growth, and renewed questions about its accounting practices. (The company had been investigated and cleared by the SEC in 2000.) There were only 10 changes to the S&P 500 Index in the last six months. Among the companies joining the index were energy concern BJ Services; financial companies ACE Limited, Marshall & Ilsley, and First Tennessee National; and Simon Property Group, a real estate investment trust (REIT). Leaving the index were, among others, K-Mart, which filed for bankruptcy protection; WorldCom, which is teetering on the edge of bankruptcy; and U.S. Airways Group, which is seeking loan guarantees from the federal government to avoid bankruptcy. TOTAL EQUITY MARKET INDEX FUND Your fund returned -12.06% in the last six months and -17.00% for the one-year period ended June 30, 2002. As shown in the table, the fund closely tracked its benchmark, the Wilshire 5000 Total Market Index, in both periods but lagged slightly due to fund expenses. PERFORMANCE COMPARISON ---------------------- Periods Ended 6/30/02 6 Months 12 Months --------------------- -------- --------- Total Equity Market Index Fund -12.06% -17.00% Wilshire 5000 Total Market Index * -11.77 -16.62 * Wilshire 5000 returns calculated as of 7/9/02. Because the Wilshire 5000 includes nearly 6,000 publicly traded domestic companies, it is impractical for us to buy shares of each. Instead, we use sampling strategies to match the performance of the index. We manage the portfolio so that its characteristics--including sector allocations and price/earnings ratio--closely resemble those of the index. As of June 30, the fund owned more than 1,900 companies. In general, what was true about the performance of the Equity Index 500 Fund was also true for this fund. The Wilshire 5000, which represents the entire U.S. stock market, includes almost all S&P 500 companies. The largest components of the Wilshire index--as with the S&P 500--have the greatest influence on performance. In addition, the percentage weightings of the major sectors are similar. Technology shares weighed heavily on the fund's performance in the last six months, with Cisco Systems and other large bellwethers among our weakest performers. However, the tech sector has a much-reduced representation in the fund (14% of equities at the end of June) because of the sector's precipitous decline in the last two years. The financial sector, representing 22% of equities, was the largest. U.S. Bancorp, Bank of America, Wachovia Bank, and Wells Fargo were among the largest contributors to fund performance. In contrast, industry giant Citigroup fell sharply, as mentioned earlier, which hurt our results. The consumer discretionary sector, which includes retailers and media companies, was our second-largest sector exposure. The former fared relatively well in the last six months; the latter fell sharply. One of the worst performers thus far this year--and over the last 12 months--was AOL Time Warner. The company has suffered from a weak advertising environment, ties to sluggish cable and telecommunications companies, and, amid the implosion of several former New Economy highfliers, concerns about the quality and authenticity of its revenues and earnings. EXTENDED EQUITY MARKET INDEX FUND Your fund returned -8.39% in the last six months and -13.56% for the one-year period ended June 30, 2002. As shown in the table, the fund closely tracked its benchmark, the Wilshire 4500 Completion Index, in both periods but lagged slightly due to fund expenses. Because stocks of smaller companies held up better than large-caps, losses were less severe for this portfolio but nonetheless steep. PERFORMANCE COMPARISON ---------------------- Periods Ended 6/30/02 6 Months 12 Months --------------------- -------- --------- Extended Equity Market Index Fund -8.39% -13.56% Wilshire 4500 Completion Index * -8.17 -13.26 * Wilshire 4500 returns calculated as of 7/09/02. The index includes more than 5,300 small- and mid-cap companies, so it is impractical for us to buy shares of each. Instead, we use sampling strategies to match the performance of the index. We manage the portfolio so that its characteristics--including sector allocations and price/earnings ratio--closely resemble those of the index. As of June 30, the fund held approximately 2,400 names. Three of the fund's best performers in the last six months were financial stocks: Principal Financial Group, which became a publicly traded company late last year; Golden State Bancorp, which is being acquired by Citigroup; and Union BanCal, a bank holding company. The financial sector was the fund's largest on June 30, representing nearly 29% of equities. Consumer staples stocks represented only 4% of equities at the end of June, but this was one of the best-performing sectors in the last six months. Two of our holdings--Kraft Foods and Tyson Foods--produced good returns. Investors favored such companies for two primary reasons: revenues and earnings are generally stable and predictable, and their businesses are relatively easy to understand. Media and telecommunications companies fell sharply in the last six months; Liberty Media, Gemstar TV Guide, Cox Communications, Adelphia Communications, and Cablevision Systems were among our largest detractors. Despite the continued decline in the information technology sector, very few tech names were among our 10 weakest performers. The tech sector, at 13.2%, has a greatly diminished influence on the index compared with two years ago. IPO activity was fairly quiet in the last six months, but we did add a few new publicly traded companies to the portfolio, such as Travelers, which was spun off by Citigroup; Anteon International, a designer of information systems for the military and the federal government; and JetBlue Airways. Major sales in the last six months included Apollo Group, BJ Services, and other companies that were added to the large-cap S&P 500 Index. OUTLOOK The recent performance of the stock market seems like a reverse image of the euphoric period that abruptly ended in March 2000. The only similarity is that companies with good business fundamentals are again being ignored or discarded. While this is discouraging, we know that it cannot continue indefinitely. The economy is growing again, consumer spending has remained strong, the Federal Reserve will probably refrain from raising short-term rates for at least several more months, and corporate earnings are poised to improve. In addition, the implementation of accounting reforms and the increased scrutiny and pressure on auditors following the implosion of several former highfliers should lead to cleaner and clearer financial reporting, helping to boost investor confidence. These factors should eventually lead to better market performance. Large-cap stocks have lagged their smaller counterparts for some time, particularly growth issues, and index funds--because they are heavily influenced by their largest components--have suffered more than the average stock. Because it is virtually impossible to know when performance patterns will change, it is important to remain well diversified to benefit from the stocks and sectors that perform best. The Equity Market Index Funds provide such diversification and will continue to do so by closely tracking major equity indexes, regardless of which market segments are in favor. Respectfully submitted, /s/ Richard T. Whitney President and chairman of each fund's Investment Advisory Committee July 12, 2002 The committee chairman has day-to-day responsibility for managing the portfolio and works with committee members in developing and executing each fund's investment program. THE EVOLVING S&P 500 INDEX -------------------------- CHANGES IN THE INDEX IN 2002 ---------------------------- ADDITIONS DELETIONS --------- --------- Simon Property Group Conexant Systems Apollo Group WorldCom BJ Services USAirways Group American Standard Sapient First Tennessee National COMPAQ Computer Marshall & Ilsley Willamette Industries Rational Software Niagara Mohawk Holdings ACE Limited Westvaco MeadWestvaco Mead Plum Creek Timber K-Mart T. ROWE PRICE EQUITY MARKET INDEX FUNDS -------------------------------------------------------------------------------- PORTFOLIO HIGHLIGHTS -------------------- TWENTY-FIVE LARGEST HOLDINGS Percent of Net Assets Equity Index 500 Fund 6/30/02 --------------------- ------- Microsoft 3.2% GE 3.1 Exxon Mobil 3.0 Wal-Mart 2.7 Pfizer 2.4 ............................................................................ Citigroup 2.2 American International Group 1.9 Johnson & Johnson 1.7 Coca-Cola 1.5 IBM 1.3 ............................................................................ Intel 1.3 Royal Dutch Petroleum 1.3 Procter & Gamble 1.3 Merck 1.3 Verizon Communications 1.2 ............................................................................ Bank of America 1.2 Cisco Systems 1.1 SBC Communications 1.1 ChevronTexaco 1.0 Philip Morris 1.0 ............................................................................ Home Depot 0.9 Wells Fargo 0.9 PepsiCo 0.9 Viacom 0.9 Fannie Mae 0.8 ............................................................................ Total 39.2% Note: Table excludes investments in the T. Rowe Price Reserve Investment Fund. T. ROWE PRICE EQUITY MARKET INDEX FUNDS -------------------------------------------------------------------------------- PORTFOLIO HIGHLIGHTS -------------------- TWENTY-FIVE LARGEST HOLDINGS Percent of Net Assets Total Equity Market Index Fund 6/30/02 ------------------------------ ------- Microsoft 2.6% GE 2.5 Exxon Mobil 2.4 Wal-Mart 2.1 Pfizer 1.9 ........................................................................... Citigroup 1.7 American International Group 1.5 Johnson & Johnson 1.4 Coca-Cola 1.2 IBM 1.1 ........................................................................... Intel 1.0 Merck 1.0 Procter & Gamble 1.0 Bank of America 0.9 Verizon Communications 0.9 ........................................................................... Cisco Systems 0.9 Berkshire Hathaway 0.9 SBC Communications 0.9 ChevronTexaco 0.8 Philip Morris 0.8 ........................................................................... Home Depot 0.7 Wells Fargo 0.7 PepsiCo 0.7 Viacom 0.7 Fannie Mae 0.6 ........................................................................... Total 30.9% Note: Table excludes investments in the T. Rowe Price Reserve Investment Fund. T. ROWE PRICE EQUITY MARKET INDEX FUNDS PORTFOLIO HIGHLIGHTS TWENTY-FIVE LARGEST HOLDINGS Percent of Net Assets Extended Equity Market Index Fund 6/30/02 --------------------------------- ------- Berkshire Hathaway 3.9% UPS 0.9 Liberty Media 0.9 Prudential 0.7 eBay 0.7 ............................................................................ Cox Communications 0.6 Goldman Sachs Group 0.6 Principal Financial Group 0.4 Kraft Foods 0.4 Hughes Electronics 0.3 ............................................................................ Electronic Arts 0.3 Quest Diagnostics 0.3 M & T Bank 0.3 USA Interactive 0.3 SunGard Data Systems 0.3 ............................................................................ Genentech 0.3 UnionBancal 0.3 Anthem 0.3 GlobalSantaFe 0.3 Gilead Sciences 0.2 ............................................................................ Laboratory Corporation of America 0.2 Fox Entertainment Group 0.2 North Fork Bancorporation 0.2 Affiliated Computer Services 0.2 Amazon.com 0.2 ............................................................................ Total 13.3% Note: Table excludes investments in the T. Rowe Price Reserve Investment Fund. T. ROWE PRICE EQUITY MARKET INDEX FUNDS -------------------------------------------------------------------------------- PERFORMANCE COMPARISON These charts show the value of a hypothetical $10,000 investment in each 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. The following 3 tables were depicted as line graphs in the printed material S&P 500 Stock Index Equity Index 500 Fund ------------------- --------------------- 6/30/92 10000 10000 6/30/93 11363 11285 6/30/94 11522 11401 6/30/95 14527 14333 6/30/96 18304 18009 6/30/97 24655 24184 6/30/98 32092 31368 6/30/99 39395 38426 6/30/00 42249 41104 6/30/01 35983 34891 6/30/02 29511 28547 Wilshire 5000 Total Equity Total Market Index Market Index Fund ------------------ ----------------- 1/30/1998 10000 10000 6/30/1998 11484 11521 12/31/1998 12276 12319 6/30/1999 13734 13779 12/31/1999 15169 15184 6/30/2000 15041 15081 12/31/2000 13516 13615 6/30/2001 12733 12809 12/31/2001 12033 12090 6/30/2002 10617 10631 Wilshire 4500 Extended Equity Completion Index Market Index Fund ---------------- ----------------- 1/30/1998 10000 10000 6/30/1998 11100 11240 12/31/1998 11021 11229 6/30/1999 12271 12493 12/31/1999 14932 15016 6/30/2000 14983 15038 12/31/2000 12577 12677 6/30/2001 12073 12153 12/31/2001 11404 11467 6/30/2002 10472 10504 T. ROWE PRICE EQUITY MARKET INDEX FUNDS -------------------------------------------------------------------------------- AVERAGE ANNUAL COMPOUND TOTAL RETURN ------------------------------------ This table shows how each fund would have performed each year if its actual (or cumulative) returns for the periods shown had been earned at a constant rate. Since Inception Periods Ended 6/30/02 1 Year 5 Years 10 Years Inception Date ------------------------------------------------------------------------------- Equity Index 500 Fund -18.18% 3.37% 11.06% - 3/30/90 ............................................................................... Total Equity Market Index Fund -17.00 - - 1.40% 1/30/98 ............................................................................... Extended Equity Market Index Fund -13.56 - - 1.12 1/30/98 Investment return and principal value represent past performance and will vary. Shares may be worth more or less at redemption than at original purchase. Returns do not reflect taxes that the shareholder may pay on fund distributions or the redemption of fund shares. T. ROWE PRICE EQUITY MARKET INDEX FUNDS -------------------------------------------------------------------------------- ABOUT THE FUNDS' DIRECTORS AND OFFICERS Your funds are 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 funds' 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 funds' officers, who are listed in the final table. The business address of each director and officer is 100 East Pratt Street, Baltimore, MD 21202. INDEPENDENT DIRECTORS --------------------- NAME (DATE OF BIRTH) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND YEAR ELECTED* OTHER DIRECTORSHIPS OF PUBLIC COMPANIES ------------- --------------------------------------- Calvin W. Burnett, Ph.D. President, Coppin State College; Director, (3/16/32) Provident Bank of Maryland 2001 Anthony W. Deering Director, Chairman of the Board, President, (1/28/45) and Chief Executive Officer, The Rouse Company, 2001 real estate developers Donald W. Dick, Jr. Principal, EuroCapital Advisors, LLC, (1/27/43) an acquisition and management advisory firm 1994 David K. Fagin Director, Dayton Mining Corp. (6/98 to present), (4/9/38) Golden Star Resources Ltd., and Canyon Resources 1994 Corp., (5/00 to present); Chairman and President, Nye Corp. F. Pierce Linaweaver President, F. Pierce Linaweaver & Associates, Inc., (8/22/34) consulting environmental and civil engineers 2001 Hanne M. Merriman Retail Business Consultant; Director, (11/16/41) Ann Taylor Stores Corp.,Ameren Corp., 1994 Finlay Enterprises, Inc., The Rouse Company, and US Airways Group, Inc. John G. Schreiber Owner/President, Centaur Capital Partners, Inc., (10/21/46) a real estate investment company; Senior Advisor 2001 and Partner, Blackstone Real Estate Advisors, L.P.; Director, AMLI Residential Properties Trust, Host Marriott Corp., and The Rouse Company Hubert D. Vos Owner/President, Stonington Capital Corp., (8/2/33) a private investment company 1994 * Each independent director oversees 98 T. Rowe Price portfolios and serves until the election of a successor. T. ROWE PRICE EQUITY MARKET INDEX FUNDS -------------------------------------------------------------------------------- INDEPENDENT DIRECTORS (CONTINUED) --------------------------------- NAME (DATE OF BIRTH) PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND YEAR ELECTED* OTHER DIRECTORSHIPS OF PUBLIC COMPANIES ------------- --------------------------------------- Paul M. Wythes Founding Partner, Sutter Hill Ventures, a (6/23/33) venture capital limited partnership, providing 1990 equity capital to young high-technology companies throughout the United States;Director, Teltone Corp. * Each independent director oversees 98 T. Rowe Price portfolios and serves until the election of a successor. INSIDE DIRECTORS ---------------- NAME (DATE OF BIRTH) YEAR ELECTED** [NUMBER OF T. ROWE PRICE PRINCIPAL OCCUPATION(S) DURING PAST 5 YEARS AND PORTFOLIOS OVERSEEN] OTHER DIRECTORSHIPS OF PUBLIC COMPANIES -------------------- --------------------------------------- James A.C. Kennedy Director and Vice President, T. Rowe Price (8/15/53) and T. Rowe Price Group, Inc. 1997 [32] James S. Riepe Director and Vice President, T. Rowe Price; Vice (6/25/43) Chairman of the Board, Director, and Vice President, 1990 T. Rowe Price Group, Inc.; Chairman of the Board [98] and Director, T. Rowe Price,T. Rowe Price Investment Services, Inc., T. Rowe Price Retirement Plan Services, Inc., and T. Rowe Price Services, Inc.; Chairman of the Board, Director, President, and Trust Officer, T. Rowe Price Trust Company; Director T. Rowe Price International, Inc., and T. Rowe Price Global Investment Services Limited; Vice President, Index Trust M. David Testa Vice Chairman of the Board,Chief Investment Officer, (4/22/44) Director, and Vice President, T. Rowe Price Group, 1994 Inc.; Chief Investment Officer, Director, and Vice [98] President, T. Rowe Price; Chairman and Director, T. Rowe Price Global Asset Management Limited; Vice President and Director, T. Rowe Price Trust Company; Director, T. Rowe Price Global Investment Services Limited and T. Rowe Price International, Inc. ** Each inside director serves until the election of a successor. T. ROWE PRICE EQUITY MARKET INDEX FUNDS -------------------------------------------------------------------------------- OFFICERS -------- NAME (DATE OF BIRTH) TITLE AND FUND(S) SERVED PRINCIPAL OCCUPATION(S) ------------------------ ----------------------- Eugene F. Bair (12/11/69) Assistant Vice President, T. Rowe Price Executive Vice President, Index Trust Joseph A. Carrier, (12/30/60) Vice President, T. Rowe Price, T. Rowe Treasurer, Index Trust Price Group, Inc., and T. Rowe Price Investment Services, Inc. Wendy R. Diffenbaugh (10/2/53) Assistant Vice President, T. Rowe Price Vice President, Index Trust Ann M. Holcomb (1/16/72) Assistant Vice President, T. Rowe Price Executive Vice President, Index Trust Henry H. Hopkins (12/23/42) Director and Vice President, T. Rowe Vice President, Index Trust Price Group, Inc.; Vice President, T. Rowe Price, T. Rowe Price International, Inc., and T. Rowe Price Retirement Plan Services, Inc.; Vice President and Director, T. Rowe Price Investment Services, Inc.,T. Rowe Price Services, Inc., and T. Rowe Price Trust Company J. Jeffrey Lang (1/10/62) Vice President, T. Rowe Price and Vice President, Index Trust T. Rowe Price Trust Company Patricia B. Lippert (1/12/53) Assistant Vice President, T. Rowe Price Secretary, Index Trust and T. Rowe Price Investment Services, Inc. David S. Middleton (1/18/56) Vice President, T. Rowe Price, Controller, Index Trust T. Rowe Price Group, Inc., and T. Rowe Price Trust Company Raymond A. Mills (12/3/60) Vice President, T. Rowe Price, T. Rowe Vice President, Index Trust Price Group, Inc., and T. Rowe Price International, Inc. Mary C. Munoz (12/2/62) Vice President, T. Rowe Price Vice President, Index Trust Richard T. Whitney (5/7/58) Vice President, T. Rowe Price, T. Rowe President, Index Trust Price Group, Inc., T. Rowe Price Trust Company, and T. Rowe Price International, Inc. Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe Price International for at least five years. T. ROWE PRICE MUTUAL FUNDS -------------------------------------------------------------------------------- STOCK FUNDS BOND FUNDS MONEYMARKET FUNDS++ ----------- ---------- ------------------- DOMESTIC DOMESTIC TAXABLE TAXABLE Blue Chip Growth* Corporate Income Prime Reserve Capital Appreciation GNMA Summit Cash Reserves Capital Opportunity High Yield* U.S. Treasury Money Developing Technologies New Income Diversified Small-Cap Short-Term Bond TAX-FREE Growth Spectrum Income California Tax-Free Dividend Growth Summit GNMA Money Equity Income* U.S. Bond Index Maryland Tax-Free Money Equity Index 500 U.S. Treasury Intermediate New York Tax-Free Money Extended Equity Market U.S. Treasury Long-Term Summit Municipal Index Money Market Financial Services DOMESTIC TAX-FREE Tax-Exempt Money Growth & Income California Tax-Free Bond Growth Stock* Florida Intermediate INTERNATIONAL/GLOBAL Health Sciences Tax-Free FUNDS Media & Telecommunications Georgia Tax-Free Bond -------------------- Mid-Cap Growth* Maryland Short-Term STOCK Mid-Cap Value Tax-Free Bond Emerging Europe & New America Growth New Jersey Tax-Free Bond Mediterranean New Era New York Tax-Free Bond Emerging Markets Stock New Horizons Summit Municipal Income European Stock Real Estate Summit Municipal Global Stock Science & Technology* Intermediate Global Technology Small-Cap Stock* Tax-Free High Yield InternationalDiscovery+ Small-Cap Value*+ Tax-Free Income International Equity Spectrum Growth Tax-Free Intermediate Index Tax-Efficient Growth Bond International Growth Tax-Efficient Multi-Cap Tax-Free Short- & Income Growth Intermediate International Stock* Total Equity Market Index Virginia Tax-Free Bond Japan Value* Latin America New Asia BLENDED ASSET FUNDS Spectrum International Balanced Personal Strategy Balanced BOND Personal Strategy Growth Emerging Markets Bond Personal Strategy Income International Bond* Tax-Efficient Balanced For more information about T. Rowe Price funds or services, please contact us directly at 1-800-225-5132. * T. Rowe Price Advisor Class available for these funds. The T. Rowe Price Advisor Class is offered only through financial intermediaries. For more information about T. Rowe Price Advisor Class funds, contact your financial professional or T. Rowe Price at 1-877-804-2315. + Closed to new investors. ++ Investments in the funds are not insured or guaranteed by the FDIC or any other government agency. Although the funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the funds. Please call for a prospectus, which contains complete information, including risks, fees, and expenses. Read it carefully before investing. T. Rowe Price Investment Services, Inc. 100 East Pratt Street Baltimore, MD 21202 C50-051 6/30/02