Information on Year-End Fund Distributions

Thank you for your interest in T. Rowe Price mutual funds. This page provides estimates of the distributions our funds may pay out near the end of 2011 and useful information on related tax issues. We hope it will help you make well-informed investment decisions.

Like most other mutual funds, T. Rowe Price funds plan to distribute all income and net capital gains realized by a fund to shareholders each year. If you invest shortly before a fund distributes gains, you may, in effect, receive a portion of your investment back as a taxable distribution. When this happens, unless you hold shares in a tax-deferred account, such as an IRA, you may have to pay income or capital gains tax on the distribution. In certain cases—especially if a fund is expecting a large distribution—it may make sense to wait until after a fund has distributed its gains before you invest.

Although tax considerations often will play an important role in your investment decisions, they should not be the deciding factors in your overall investment strategy. You always will want to try to maximize your investment returns—in light of your time horizon, investment objectives, and tolerance for risk—but an investment decision that minimizes taxes could be to your advantage.

T. Rowe Price funds that have year-end distributions will declare them on the dates shown in the tables below, depending on the fund. Anyone owning shares at the close of business on these dates will receive the distribution. Except for investments held in tax-deferred accounts, such as IRAs, investors holding shares on the record date will have to report the distribution amounts on their tax returns. Although the income generated by municipal bond funds is free of federal and possibly state and local taxes, any capital gains paid by these funds are subject to federal and, usually, state and local taxes. If you wait until after the record date to invest, you will not receive 2011 year-end distributions.

The tables below offer an estimate of the dividends and net capital gains
T. Rowe Price funds expect to distribute based on information currently available. Income amounts are shown only for funds that distribute their income once a year. The actual distribution amounts will be different from those shown because they will be based on 12 months of actual fund activity and may reflect additional tax adjustments. You may consult our website for final distribution amounts in December (troweprice.com/taxplanning). The actual distribution amounts will be available on the next business day after the payment date.

You can obtain actual distribution amounts for each fund on the next business day after the payment date on our website at troweprice.com/taxplanning or by calling Tele*Access^SM at 800-638-2587.

Ordinary income dividends generally are taxed at the investor's marginal income tax rate; however, all or a portion may be taxed at the lower rates applicable to qualified dividend income discussed below.

To the extent a fund receives qualified dividends from stocks it holds, it can designate all or a portion of the dividends it pays as qualifying for taxation at a rate of 15% (0% for investors in the 15% or 10% tax bracket). This designation applies to your taxable ordinary income, which includes both income dividends and short-term capital gain distributions. To estimate this amount for any of the funds listed in the tables below, multiply the estimated qualified dividend percentage by the sum of the income dividends and short-term capital gain distribution for that fund.

Gains distributed by mutual funds are short-term or long-term depending on how long a particular investment was held by a fund. Short-term gains are taxed at the same rate as ordinary income (at the taxpayer's marginal income tax rate). Most long-term gains are subject to a maximum rate of 15% (0% for investors in the 15% or 10% tax bracket).

T. Rowe Price provides shareholders various tax form packages and offers tools for dealing with the tax consequences of investments. Our shareholders will receive a single package in late January (or, in some cases, mid-February) containing one or more of the following forms, as required, along with supplementary information relevant to each shareholder's particular holdings:

1099-DIV
1099-INT
1099-B with average cost and capital gain/loss information (if available)
1099-R

In addition:

1099-Q (Qualified Education Program Payments) will be mailed in late January.
Form 5498-ESA (Coverdell Education Savings Account Contributions) will be mailed in April.
Form 5498 (IRA Account Contributions) will be mailed in May.

For additional information about taxes, visit the tax planning section of our website for tax calculators, tax planning worksheets, and tax consideration guides at troweprice.com/taxplanning.

To open a mutual fund or Brokerage account, call:
800-225-5123.

For questions related to existing accounts, call:
800-225-5132

For 24-hour automated account information, yields, and prices, call:
Tele*Access^SM 800-638-2587

Note: Amounts shown are not final. Please check our website in December for final distribution amounts (troweprice.com/taxplanning).

Estimated per share amounts as of 10/31/11 (excludes any gains paid earlier in 2011)

This information has been prepared by T. Rowe Price for informational purposes only. T. Rowe Price (including T. Rowe Price Group, Inc., and its affiliates) and its associates do not provide legal or tax advice. Any tax-related discussion contained on this page is not intended or written to be used, and cannot be used, for the purpose of: (i) avoiding any tax penalties or (ii) promoting, marketing, or recommending to any other party any transaction or matter addressed herein. Please consult your independent legal counsel and/or professional tax advisor regarding any legal or tax issues raised in this publication.