Press Release

T. Rowe Price Adds Retirement Funds to Its Lineup of Advisor and R Class Shares

BALTIMORE, November 17, 2003 -- T. Rowe Price today announced that it has added the T. Rowe Price Retirement Funds, which are designed to give investors an easy, "single-choice" approach to saving for retirement, to its lineup of funds that offer the Advisor Class and R Class shares.  The T. Rowe Price Retirement 2010, 2020, 2030, and 2040 funds are designed for investors who expect to retire around those target dates. The fifth option, Retirement Income Fund, will maintain the most conservative asset allocation strategy of the Retirement Funds, which is appropriate during the retirement years. All five funds are structured as "funds of funds" investing in up to nine other T. Rowe Price mutual funds.

"Adding Advisor and R class shares to our Retirement Funds enables us to offer financial intermediaries a series of funds that are proving very popular with retirement plan sponsors and participants," said John Cammack, director of third party distribution for T. Rowe Price. "The T. Rowe Price Retirement Funds simplify the retirement planning process by offering a complete, professionally managed, and diversified portfolio with one investment. They appeal to investors who are looking for some investment guidance and find it challenging to select the right funds and monitor them over time – and to plan sponsors looking to better meet the needs of their employees and overcome participant inertia. The funds are also drawing significant attention from investors who are rolling over retirement savings into an IRA."

The Retirement Funds are broadly diversified among stocks and bonds, with each establishing asset allocations that T. Rowe Price considers broadly appropriate to investors at specific stages of their retirement planning. Unique to these funds, the asset mix is altered over time to meet those changing investment needs. The funds will emphasize growth during the early phases of retirement asset accumulation and focus more on principal preservation and income as retirement draws closer. The funds will also be rebalanced periodically to maintain the appropriate asset allocation for the remaining time horizon.

Asset Allocations of Retirement Funds (as of September 30, 2003) Fund Stocks Fixed Income Conservative Fixed Income Retirement Income 43% 27% 30% Retirement 2010 69 25 6 Retirement 2020 81 18.5 0.5 Retirement 2030 93 7 0 Retirement 2040 93 7 0

Note: Each portfolio is further diversified among large-, mid-, and small-cap U.S. stocks, international stocks, and investment-grade and high-yield bonds. Allocations differ depending on the fund.

T. Rowe Price has been managing asset allocation products and fund of funds since 1990, retirement date products since 1996, and target date 529 plan assets since 2001. The firm's multi-asset class experience is supported by the strong performance records of the underlying funds, although past performance is not a guarantee of future results.

"A key feature of the T. Rowe Price Retirement Funds is a high level of equity exposure," said Jerome A. Clark, portfolio manager of the Retirement Funds. "We also make our asset allocation decisions based on a 30 year retirement period to factor in variance in life expectancies. Research we have done shows that investors who place too much emphasis on cash during retirement, while maintaining limited exposure to stocks, could increase the risk of depleting their assets prematurely."

In choosing a Retirement Fund, investors should consider the fund that is closest to the year they reach their expected retirement age, while also factoring in their risk tolerance, investment objectives, and retirement needs. Choosing a fund that targets an earlier date represents a more conservative choice while targeting a fund with a later date is a more aggressive choice.

Advisor Class shares can only be purchased through financial intermediaries, such as financial advisors, broker dealers and retirement plan providers.  A 12b-1 fee of 0.25% is applied to the Advisor Class of shares to compensate the growing number of financial intermediaries providing fee-based advisory services and retirement plans. The R share class is designed exclusively for employer-sponsored retirement plans offered through financial intermediaries. To compensate recordkeepers for their costs associated with distributing the funds and with servicing the retirement plans, the R Class carries a 12b-1 fee of 0.50%.

Additional expenses for the Retirement Funds are based on the average weighted expense ratio of the underlying funds; no asset allocation overlay fee is assessed. The performance and risks of the funds will directly correspond to the performance and risks of the underlying funds in which they invest. By investing in many underlying funds, the Retirement Funds have partial exposure to the risks of many different areas of the market.

Founded in 1937, Baltimore-based T. Rowe Price (Nasdaq: TROW) is a global investment management firm with $168.9 billion in assets under management as of September 30, 2003. The firm provides a broad array of mutual funds, sub-advisory services, and separate account management for financial intermediaries, individual and institutional investors, and retirement plans. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.

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