June 7, 2011

T. Rowe Price will gradually increase the international equity exposure from approximately 20% to approximately 30% of the total equity assets for each of the mutual funds below.


Mutual Fund Name

T. Rowe Price Balanced Fund
T. Rowe Price Personal Strategy Balanced Fund
T. Rowe Price Personal Strategy Growth Fund
T. Rowe Price Personal Strategy Income Fund
T. Rowe Price Spectrum Growth Fund

The remaining domestic equity exposure in the fund will be proportionately reduced so that each of these mutual fund portfolios maintains its current overall allocation of stocks and bonds. These changes are expected to occur gradually over the coming 12-15 months.

International developed and emerging market equities, which include countries that have higher GDP growth than the U.S. and companies that are viewed as having higher long-term earnings growth or more favorable valuations, can offer attractive investment opportunities that complement U.S. investments. The T. Rowe Price Asset Allocation Committee believes that gradually increasing each fund's international equity exposure will help to increase portfolio diversification while not significantly changing the long-term volatility of the portfolio.

All funds are subject to market risk, including possible loss of principal.