PAGE 21

increased competition from other providers of services;

uncertainties concerning the availability of fuel at reasonable prices;

service interruption or legal challenges due to environmental, operational or other mishaps;

the imposition of special tariffs and changes in tax laws, regulatory policies or accounting standards;

technological innovations that may render existing plants, equipment, or products obsolete; and

unforeseen delays, accidents, and cost overruns in infrastructure projects.

Derivatives risk     A derivative involves risks different from, and possibly greater than, the risks associated with investing directly in the assets on which the derivative is based. Derivatives can be highly volatile, illiquid, and difficult to value, and changes in the value of a derivative may not properly correlate with changes in the value of the underlying asset, reference rate or index. A fund could be exposed to significant losses if it is unable to close a derivatives position due to the lack of a liquid secondary trading market. Derivatives involve the risk that a counterparty to the derivatives agree ment will fail to make required payments or comply with the terms of the agreement. There is also the possibility that limitations or trading restrictions may be imposed by an exchange or government regulation.

Investment Policies and Practices

This section takes a detailed look at some of the types of fund securities and the various kinds of investment practices that may be used in day-to-day portfolio management. Fund investments are subject to further restrictions and risks described in the Statement of Additional Information.

Shareholder approval is required to substantively change fund objectives . Shareholder approval is also required to change certain investment restrictions noted in the following section as "fundamental policies." Portfolio managers also follow certain "operating policies" that can be changed without shareholder approval. Shareholders will receive at least 60 days` prior notice of any change in policy requiring the fund to normally invest at least 80% of net assets in securi ties of infrastructure-related companies. Fund investment restrictions and policies apply at the time of purchase . A later change in circumstances will not require the sale of an investment if it was proper at the time it was made. (This excep tion does not apply to the fund`s borrowing policy . )

Fund holdings of certain kinds of investments cannot exceed maximum percentages of total assets, which are set forth in this prospectus. For instance, fund investments in certain derivatives are limited to 10% of total assets. While these restrictions provide a useful level of detail about fund investments, investors should not view them as an accurate gauge of the potential risk of such investments. For example, in a given period, a 5%   investment in derivatives could have sig nificantly more of an impact on a fund`s share price than its weighting in the portfolio. The net effect of a particular investment depends on its volatility and the size of its overall return in relation to the performance of all other fund investments.

Certain i nvestment restrictions, such as a required minimum or maximum investment in a particular type of secur ity, are measured at the time the fund purchases a security. The status, market value, maturity, credit quality, or other char acteristics of a fund`s securities may change after they are purchase d, and this may cause the amount of a fund`s assets invested in such securities to exceed the stated maximum restriction or fall below the stated minimum restriction. If any of these changes occur , it would not be considered a violation of the investment restriction. However, purchases by a fund during the time it is above or below the stated percentage restriction would be made in compliance with appli cable restrictions.

Changes in fund holdings, fund performance, and the contribution of various investments are discussed in the share holder reports sent to you.

Fund managers have considerable discretion in choosing investment strategies and selecting securities they believe will help achieve fund objectives.

Types of Portfolio Securities

In seeking to meet its investment objective, fund investments may be made in any type of security or instrument (including certain potentially high-risk derivatives described in this section) whose investment characteristics are con sistent with its investment program. The following pages describe various types of fund securities and investment man agement practices.

Diversification     As a fundamental policy, the fund will not purchase a security if, as a result, with respect to 75% of its total assets, more than 5% of the fund `s total assets would be invested in securities of a single issuer or more than 10% of the outstanding voting securities of the issuer would be held by the fund.

Industry Concentration     As a fundamental policy, the fund will concentrate ( invest more than 25% of total assets ) in the infrastructure industry as defined in this prospectus .

Fund investments may include the following:

Common and Preferred Stocks

Stocks represent shares of ownership in a company. Generally, preferred stock has a specified dividend and ranks after bonds and before common stocks in its claim on income for dividend payments and on assets should the company be liquidated. After other claims are satisfied, common stockholders participate in company profits on a pro-rata basis; profits may be paid out in dividends or reinvested in the company to help it grow. Increases and decreases in earnings are usually reflected in a company`s stock price, so common stocks generally have the greatest appreciation and depre ciation potential of all corporate securities. While most preferred stocks pay a dividend, a fund may decide to purchase preferred stock where the issuer has omitted, or is in danger of omitting, payment of its dividend. Such investments would be made primarily for their capital appreciation potential.

Convertible Securities and Warrants

Investments may be made in debt or preferred equity securities convertible into, or exchangeable for, equity securities. Traditionally, convertible securities have paid dividends or interest at rates higher than common stocks but lower than nonconvertible securities. They generally participate in the appreciation or depreciation of the underlying stock into which they are convertible, but to a lesser degree than common stock . Some convertible securities combine higher or lower current income with options and other features. Warrants are options to buy , directly from the issuer, a stated number of shares of common stock at a specified price anytime during the life of the warrants (generally, two or more years). Warrants can be highly volatile, have no voting rights, and pay no dividends.

Foreign Securities

Investments may be made in foreign securities. These include nondollar-denominated securities traded outside of the U.S. and dollar-denominated securities of foreign issuers traded in the U.S. Investing in foreign securities involves special risks that can increase the potential for losses. These include: exposure to potentially adverse local, political, and economic developments such as war, political instability, hyperinflation, currency devaluations, and overdependence on particular industries; government interference in markets such as nationalization and exchange controls, expropriation of assets, or imposition of punitive taxes; potentially lower liquidity and higher volatility; possible problems arising from accounting, disclosure, settlement, and regulatory practices and legal rights that differ from U.S. standards; and the chance that fluctuations in foreign exchange rates will decrease the investment`s value (favorable changes can increase its value). These risks are heightened for investments in emerging markets. The fund may purchase American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs), which are certificates evidencing ownership of shares of a foreign issuer. ADRs and GDRs trade on established markets and are alternatives to directly purchasing the underlying foreign securities in their local markets and currencies. Such investments are subject to many of the same risks associated with investing directly in foreign securities.

Operating policy     There is no limit on fund investments in foreign securities or in emerging markets .

Participation Notes (P-notes)

Foreign investors are restricted from investing directly in individual stocks traded on the Saudi stock exchange but may gain exposure to the Saudi Arabian market through P-notes. P-notes are generally issued by banks or broker-dealers and are designed to offer a return linked to an underlying common stock. An investment in a P-note involves additional risks beyond the risks normally associated with a direct investment in the underlying security. While the holder of a P- note is entitled to receive from the broker-dealer or bank any dividends paid by the underlying security, the holder is not entitled to the same rights as an owner of the underlying stock, such as voting rights.
P-notes are considered general unsecured contractual obligations of the banks or broker-dealers that issue them as the counterparty. As such, the fund must rely on the creditworthiness of the counterparty for its investment returns on the P-notes and would have no rights against the issuer of the underlying security. Additionally, there is no assurance that there will be a secondary trading market for a P-note or that the trading price of a P-note will equal the value of the underlying security.

Operating policy     Fund investments in P-notes are limited to 20% of total assets.

PAGE 23

Fixed Income Securities

From time to time, the fund may invest in corporate and government fixed income securities as well as below invest ment-grade bonds, commonly referred to as "junk" bonds. These securities would be purchased in companies that meet fund investment criteria. The price of a fixed income security fluctuates with changes in interest rates, generally rising when interest rates fall and falling when interest rates rise. Below investment - grade bonds , or "junk bonds," can be more volatile and have greater risk of default than investment - grade bonds.

Operating policy     The f und may invest 5 % of total assets in below i nvestment-grade bonds. Fund investments in con vertible securities are not subject to these limits.

Futures and Options

Futures, a type of potentially high-risk derivative, are often used to manage or hedge risk because they enable the inves tor to buy or sell an asset in the future at an agreed-upon price. Options, another type of potentially high-risk deriva tive, give the investor the right ( when the investor purchases the option), or the obligation ( when the investor "writes" or sells the option), to buy or sell an asset at a predetermined price in the future. Futures and options contracts may be bought or sold for any number of reasons, including: to manage exposure to changes in securities prices and foreign currencies; as an efficient means of increasing or decreasing a fund `s exposure to certain markets; in an effort to enhance income; to protect the value of portfolio securities; and to serve as a cash management tool . Call or put options may be purchased or sold on securities, futures, financial indices, and foreign currencies.

Futures contracts and options may not always be successful hedges; their prices can be highly volatile; using them could lower fund total return; and the potential loss from the use of futures can exceed a fund`s initial investment in such contracts.

Operating policies     Initial margin deposits on futures and premiums on options used for non-hedging purposes will not exceed 5% of net asset value. The total market value of securities covering call or put options may not exceed 25% of total assets. No more than 5% of total assets will be committed to premiums when purchasing call or put options.

Hybrid Instruments

These instruments (a type of potentially high-risk derivative) can combine the characteristics of securities, futures, and options. For example, the principal amount, redemption, or conversion terms of a security could be related to the mar ket price of some commodity, currency, securities, or securities index. Such securities may or may not bear interest or pay dividends . Under certain conditions, the redemption value of a hybrid could be zero.

Hybrids can have volatile prices and limited liquidity, and their use may not be successful.

Operating policy     Fund investments in hybrid instruments are limited to 10% of total assets.

Exchange Traded Funds (ETFs)

An ETF is a type of index fund bought and sold on a securities exchange. An ETF trades like common stock and typi cally represents a portfolio of securities designed to track a particular market index. The fund could purchase an ETF to temporarily gain exposure to a portion of the U.S. or a foreign market while awaiting purchase of underlying securities. The risks of owning an ETF are generally similar to the risks of owning the underlying securities in the index it is designed to track, although lack of liquidity in an ETF could result in it being more volatile and ETFs have manage ment fees that increase their costs.

Illiquid Securities

Some fund holdings may be considered illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold in the ordinary course of business at approximately the prices at which they are valued. The determination of liquidity involves a variety of factors. Illiquid securities may include private placements that are sold directly to a small number of investors, usually institutions. Unlike public offerings, such securities are not regis tered with the Securities and Exchange Commission (SEC) . Although certain of these securities may be readily sold, for example under Rule 144A of the Securities Act of 1933 , others may have resale restrictions and can be illiquid . The sale of illiquid securities may involve substantial delays and additional costs , and the fund may only be able to sell such securities at prices substantially less than what the fund believes they are worth .

Operating policy     Fund investments in illiquid securities are limited to 15 % of net assets.

Types of Investment Management Practices

Reserve Position

A certain portion of fund assets will be held in reserves. Fund reserve positions can consist of : 1)   shares of one or both of the T.   Rowe Price internal money funds ; 2)   s hort-term, high-quality U.S. and foreign dollar-denominated money market securities, including repurchase agreements ; and 3)   U.S. dollar or non-U.S. dollar currencies. For temporary, defensive purposes, there is no limit on a fund`s holdings in reserves. If a fund has s ignificant holdings in reserves , it could compromise the fund`s ability to achieve its objectives . The reserve position provides flexibility in meeting redemptions, paying expenses, and in the timing of new investments and can serve as a short-term defense during periods of unusual market volatility . Non-U.S. dollar reserves are subject to currency risk.

Managing Foreign Currency Risk

Investors in foreign securities may attempt to hedge their exposure to potentially unfavorable currency changes. The primary means of doing this is through the use of forwards, which are   contracts to exchange one currency for another on some future date at a specified exchange rate. However, futures, swaps, and options on foreign currencies may also be used. In certain circumstances, a different currency may be substituted for the currency in which the investment is denominated, a strategy known as proxy hedging. Foreign currency forwards, options and futures may be used to pro tect a fund`s foreign securities from adverse currency movements relative to the U.S. dollar, as well as to gain exposure to currencies and markets expected to increase or decrease in value relative to other currencies or securities. Such transactions involve the risk that anticipated currency movements will not occur, which could reduce fund total return. There are certain markets, including many emerging markets, where it is not possible to engage in effective foreign cur rency hedging.

Borrowing Money and Transferring Assets

A fund may borrow from banks, other persons, and other T. Rowe Price funds for temporary emergency purposes to facilitate redemption requests , or for other purposes consistent with fund policies as set forth in this prospectus. Such borrowings may be collateralized with fund assets, subject to restrictions.

Fundamental policy     Borrowings may not exceed 33   1 / 3 % of total assets.

Operating policy     A f und will not transfer portfolio securities as collateral except as necessary in connection with per missible borrowings or investments, and then such transfers may not exceed 33   1 / 3 % of total assets. A f und will not pur chase additional securities when borrowings exceed 5% of total assets.

Lending of Portfolio Securities

A fund may lend its securities to broker-dealers, other institutions, or other persons to earn additional income. R isk s include the potential insolvency of the broker-dealer or other borrower that could result in delays in recovering securi ties and capital losses. Additionally, losses could result from the reinvestment of collateral received on loaned securities in investments that default or do not perform as expected .

Fundamental policy     The value of loaned securities may not exceed 33   1 / 3 % of total assets.

Country Classifications

For purposes of determining whether the fund invests at least 40% (at least 30% if market conditions are not favorable) of its net assets in companies outside the U.S., the fund uses a country assigned to a security by MSCI Barra or another unaffiliated third party data provider.

Portfolio Turnover

Turnover is an indication of frequency of trading . The fund will not generally trade in securities for short-term profits, but when circumstances warrant, securities may be purchased and sold without regard to the length of time held. Each time the fund purchases or sells a security, it incurs a cost. This cost is reflected in the fund`s net asset value but not in its operating expenses. The higher the turnover rate, the higher the transaction costs and the greater the impact on the fund`s total return. Higher turnover can also increase the possibility of taxable capital gain distributions . The fund`s portfolio turnover rate for the initial period of operations may exceed 100%.

PAGE 25

Disclosure of Fund Portfolio Information

The fund`s portfolio holdings are disclosed on a regular basis in its semi annual and annual reports to shareholders and on Form N-Q , which is filed with the SEC within 60 days of the fund`s first and third fiscal quarter-end. In addition, the fund discloses its calendar quarter-end portfolio holdings on troweprice.com 15 calendar days after each quarter. Money funds also disclose their month-end portfolio holdings on troweprice.com two business days after each month. Under certain conditions, up to 5% of the fund`s holdings may be included in this portfolio list without being individ ually identified. Generally, securities would not be individually identified if they are being actively bought or sold and it is determined that the quarter-end disclosure of the holding could be harmful to the fund. A security will not be excluded for these purposes from a fund`s quarter-end holdings disclosure for more than one year . The quarter-end portfolio holdings will remain on the Web site for one year and the month-end money fund portfolio holdings will remain on the Web site for at least four months. The fund also discloses its largest 10 holdings on troweprice. com on the seventh business day after each month-end . These holdings are listed in alphabetical order along with the aggregate percentage of the fund`s total assets that th e y represent. Each monthly top 10   list will remain on the Web site for six months . A description of the fund`s p olicy and procedures with respect to the disclosure of portfolio information is in the Statement of Additional Information.

Investing With T. Rowe Price 4

Investing With T. Rowe Price

Account Requirements and Transaction Information

If you are purchasing fund shares through a third- party intermediary , contact the intermediary for information regarding the intermediary`s policies on purchasing, exchanging, and redeeming fund shares as well as initial and subsequent investment minimums.

Tax Identification
Number

We must have your correct Social Security or employer identification number on a signed New Account Form or W-9 Form. Otherwise, federal law requires the funds to withhold a percentage of your dividends, capital gain distributions, and redemptions and may subject you to an IRS fine. If this information is not received within 60   days after your account is established, your account may be redeemed at the fund`s NAV on the redemption date.

Transaction Confirmations

We send immediate confirmations for most of your fund transactions, but some, such as systematic purchases , divi dend reinvestments , and checkwriting redemptions for money funds , are reported on your account statement. Please review confirmations and statements as soon as you receive them and promptly report any discrepancies to Share holder Services.

Employer-Sponsored Retirement Plans and Institutional Accounts

T.   Rowe Price
Trust Company
1-800-492-7670

Transaction procedures in the following sections may not apply to employer-sponsored retirement plans and institu tional accounts. For procedures regarding employer-sponsored retirement plans, please call T.   Rowe Price Trust Com pany or consult your plan administrator. For institutional account procedures, please call your designated account manager or service representative.

We do not accept third-party checks, except for IRA r ollover checks that are properly endorsed. In addition, T.   Rowe Price does not accept purchases by credit card check , cash , or traveler ` s checks .

PAGE 27

Opening a New Account

$2,500 minimum initial investment; $1,000 for retirement plans or UGMA / UTMA accounts ($25,000 minimum initial investment for Summit Funds only)

Important Information About Opening an Account

Pursuant to federal law, all financial institutions must obtain, verify, and record information that identifies each person or entity that opens an account.

When you open an account, you will be asked for the name, residential street address, date of birth, and Social Security number or employer identification number for each account owner and person(s) opening an account on behalf of others, such as custodians, agents, trustees , or other authorized signers. Entities are also required to provide certified documents such as articles of incorporation, partnership agreements, trust documents, and other applicable records .

We will use this information to verify the identity of the person(s)/entity opening the account. We will not be able to open your account until we receive all of this information. If we are unable to verify your identity , we are authorized to take any action permitted by law. (See Rights Reserved by the Funds.)

Account Registration

If you own other T.   Rowe Price funds, be sure to register any new account just like your existing accounts so you can exchange shares among them easily. (The name (s) of the account owner(s) and the account type must be identical.)

For joint accounts or other types of accounts owned or controlled by more than one party, either owner/party has com plete authority to act on behalf of all and give instructions concerning the account without notice to the other party. T.   Rowe Price may, in its sole discretion , require written authorization from all owners/parties to act on the account for certain transactions (for example, to transfer ownership).

By Mail

Please make your check payable to T.   Rowe Price Funds (otherwise it will be returned) , and send your check, together with the New Account Form, to the appropriate address below:

via U.S. Postal Service

T.   Rowe Price Account Services
P.O. Box 17300
Baltimore, MD 21297-1300

via private carriers/overnight services

T.   Rowe Price Account Services
Mailcode 17300
4515 Painters Mill Road
Owings Mills, MD 21117-4903

Note: Please use the correct address to avoid a delay in opening your new account .

By Wire

Call Investor Services for an account number and wir e transfer instructions.

In order to obtain an account number, you must supply the name, date of birth, Social S ecurity or employer identifi cation number , and residential or business street address for each owner on the account.

Complete a New Account Form and mail it to one of the appropriate T.   Rowe Price addresses listed under By Mail.

Note: Investment will be made, but services may not be established and IRS penalty withholding may occur until we receive a signed New Account Form.

Online

You can open a new mutual fund account online. Go to troweprice.com/newaccount , where you can choose the type of account you wish to open.

To open an account electronically, you must be a U.S. citizen residing in the U.S. or a resident alien and not subject to IRS backup withholding. Additionally, you must provide consent to receive certain documents electronically.

You will have the option of providing your bank account information that will enable you to make electronic funds transfer s (EFT) to and from your bank account. To set up this banking service online, additional steps will be taken to verify your identity.

By Exchange

Call Shareholder Services or use your computer (see Automated Services under Information About Your Services). The new account will have the same registration as the account from which you are exchanging. Services for the new account may be carried over by telephone request if they are preauthorized on the existing account. For limitations on exchanging, please see Transaction Procedures and Special Requirement s — Excessive and Short-Term Trading .

In Person

Drop off your New Account Form at any location listed on the back cover and obtain a receipt.

Purchasing Additional Shares

$100 minimum additional purchase ($1,000 for Summit Funds); $50 minimum for retirement plans and UGMA/UTMA accounts; $50 minimum for Automatic Asset Builde r ( $ 100 for Summit Funds )

By ACH Transfer

Use your computer or call Shareholder Services if you have established electronic transfers using the ACH system.

By Wire

Call Shareholder Services or access troweprice.com for wir e transfer instructions .

By Mail

1. Make your check payable to T.   Rowe Price Funds (otherwise it may be returned).

PAGE 29

2. Mail the check to us at the following address with either a fund reinvestment slip or a note indicating the fund you want to buy and your fund account number. Please use the correct address to avoid a delay in processing your transaction.

3. Remember to provide your account number and the fund name on the memo line of your check.

via U.S. Postal Service

T.   Rowe Price Account Services
P.O. Box 17300
Baltimore, MD 21297-1300

(For mail via private carriers and overnight services, see previous section.)

By Automatic
Asset Builder

Fill out the Automatic Asset Builder section on the New Account or Shareholder Services Form.

Exchanging and Redeeming Shares

Exchange Service

You can move money from one account to an existing , identically registered account or open a new identically regis tered account. Remember, exchanges are purchases and sales for tax purposes. (Exchanges into a state tax-free fund are limited to investors living in states where the fund is registered.) For exchange policies, please see Transaction Proce dures and Special Requirements   —   Excessive and Short-Term Trading.

Redemptions

Redemption proceeds can be mailed to your account address, sent by ACH transfer to your bank, or wired to your bank (provided your bank information is already on file). For charges, see Electronic Transfers — By Wire under Infor mation About Your Services. Please note that large purchase and redemption requests initiated through automated ser vices , including the National Securities Clearing Corporation (NSCC), may be rejected and, in such instances, the transaction must be placed by contacting a service representative.

If you request to redeem a specific dollar amount, and the market value of your account is less than the amount of your request, we will redeem all shares from your account.

Some of the T.   Rowe Price funds may impose a redemption fee . Check the fund`s prospectus under Contingent Redemption Fee in Pricing Shares and Receiving Sale Proceeds . The fee is paid to the fund.

For redemptions by check or electronic transfer, please see Information About Your Services.

By Phone

Call Shareholder Services

If you find our phones busy during unusually volatile markets, please consider placing your order by your computer (if you have previously authorized these services) or express mail.

By Mail

For each account involved, provide the account name and number, fund name, and exchange or redemption amount. For exchanges, be sure to specify any fund you are exchanging out of and the fund or funds you are exchanging into. T.   Rowe Price may require a signature guarantee of all registered owners (see Transaction Procedures and Special Requirements   —   Signature Guarantees). Please use the appropriate address below to avoid a delay in processing your transaction :

For nonretirement and IRA accounts:

via U.S. Postal Service

T.   Rowe Price Account Services
P.O. Box 17302
Baltimore, MD 21297-1302

via private carriers/overnight services

T.   Rowe Price Account Services
Mailcode 17302
4515 Painters Mill Road
Owings Mills, MD 21117-4903

For employer-sponsored retirement accounts:

via U.S. Postal Service

T.   Rowe Price Trust Company
P.O. Box 17479
Baltimore, MD 21297-1479

via private carriers/overnight services

T.   Rowe Price Trust Company
Mailcode 17479
4515 Painters Mill Road
Owings Mills, MD 21117-4903

Requests for redemptions from employer-sponsored retirement accounts may be required to be in writing; please call T.   Rowe Price Trust Company or your plan administrator for instructions. IRA distributions may be requested in writing or by telephone; please call ervice.

Online

Customers with Account Access (our secure self-service web platform for individual investors) can electronically exchange shares between identically registered T.   Rowe Price accounts and electronically redeem shares from their mutual fund accounts.

Rights Reserved by the Funds

T.   Rowe Price funds and their agents , in their sole discretion , reserve the following rights: (1)   to waive or lower invest ment minimums; (2)   to accept initial purchases by telephone or mailgram; (3)   to refuse any purchase or exchange order; (4)   to cancel or rescind any purchase or exchange order placed through an intermediary, no later than the busi ness day after the order is received by the intermediary (including, but not limited to, orders deemed to result in exces sive trading, market timing, or 5% ownership) ; (5)   to cease offering fund shares at any time to all or certain groups of investors; ( 6 )   to freeze any account and suspend account services when notice has been received of a dispute regarding the ownership of the account, or there is reason to believe a fraudulent transaction may occur; ( 7 )   to otherwise modify the conditions of purchase and any services at any time; ( 8 )   to waive any wire , small account, maintenance , or fiduciary fees charged to a group of shareholder s ; ( 9 )   to act on instructions reasonably believed to be genuine ; and ( 10 )   to invol untarily redeem your account at the net asset value calculated the day the account is redeemed, in cases of threatening conduct , suspected fraudulent or illegal activity , or if the fund or its agent is unable , through its procedures, to verify the identity of the person(s) or entity opening an account .

Information About Your Services

Shareholder Services
1-800-225-5132

Investor Services
1-800-638-5660

Many services are available to you as a shareholder; some you receive automatically, and others you must authorize or request on the New Account Form. By signing up for services on the New Account Form , you avoid having to complete a separate form at a later time and obtain a signature guarantee. This section discusses some of the services currently offered.