Item 1. Report to Shareholders
T. Rowe Price New Horizons Fund
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December 31, 2003
Certified Annual Report
This report is certified under the Sarbanes-Oxley Act of 2002, which requires
that public companies, including mutual funds, affirm that the information
provided in their annual and semiannual shareholder reports fully and fairly
represents their financial position.
T. Rowe Price New Horizons Fund
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Certified Annual Report
Performance Comparison
This chart shows the value of a hypothetical $10,000 investment in the 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.
[Graphic Omitted]
NEW HORIZONS FUND
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As of 12/31/03
New Horizons Fund $29,471
Russell 2000 Growth Index $16,976
Lipper Small-Cap Growth Funds Index $23,784
Russell 2000 Lipper Small-Cap New Horizons
Growth Index Growth Funds Index Fund
12/93 10000 10000 10000
12/94 9757 9831 10030
12/95 12786 13419 15591
12/96 14226 15707 18247
12/97 16068 17470 20030
12/98 16265 17638 21282
12/99 23274 28427 28202
12/00 18054 26081 27678
12/01 16388 22699 26892
12/02 11429 16428 19738
12/03 16976 23784 29471
Average Annual Compound Total Return
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Periods Ended 12/31/03 1 Year 5 Years 10 Years
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New Horizons Fund 49.31% 6.73% 11.41%
Russell 2000 Growth Index 48.54 0.86 5.43
Russell 2000 Index 47.25 7.13 9.47
Lipper Small-Cap Growth Funds Index 44.77 6.16 9.05
S&P 500 Stock Index 28.68 -0.57 11.07
Returns do not reflect taxes that the shareholder may pay on fund distributions
or the redemption of fund shares. Past performance cannot guarantee future
results.
T. Rowe Price New Horizons Fund
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Certified Annual Report
Dear Shareholder,
We are pleased to report that your fund returned 49.31% during the 12 months
ended December 31, 2003. The fund outpaced the Lipper Small-Cap Growth Funds
Index and its unmanaged Russell benchmarks, as you can see in the table on the
previous page. The fund benefited from strong gains in our top holdings,
especially in the consumer, industrial, and education areas, while our cautious
stance on technology stocks hindered performance in the second half.
[Graphic Omitted]
Major Index Returns
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12-Month Return
S&P 500 Stock Index 29%
S&P MidCap 400 Index 36%
Russell 2000 Index 47%
Nasdaq Composite Index 50%
As you know, the fund's investment objective is to provide long-term capital
growth by investing primarily in common stocks of small, rapidly growing
companies. The fund typically invests in a diversified group of small emerging
growth companies, preferably early in a company's life cycle before it becomes
widely recognized by the investment community.
The Major Index Returns chart shows how various domestic stock markets
performed over the past 12 months. As you can see, domestic stocks registered
solid returns, with the technology-heavy Nasdaq Composite and the small-cap
Russell 2000 showing the best results. Mid-cap stocks also outperformed
large-cap stocks, as represented by the S&P 500 Stock Index.
The Top 5 Sectors table shows how the fund's assets were allocated as of
December 31, 2003. Consumer discretionary and health care stocks were the
largest sector allocations with information technology narrowly behind.
Top 5 Sectors
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Percent of Net Assets
12/31/02 12/31/03
Consumer Discretionary 20% 22%
Health Care 23 22
Information Technology 24 21
Industrials and Business Services 16 16
Financials 5 7
The Best and Worst Contributors table shows the stocks that contributed most to
the fund's performance during the year. Health care services companies Omnicare,
Henry Schein, and Davita were among the top positive contributors, while Tier
Technologies, which provides technology processing services for state
governments, and biotech firm Trimeris were among the worst detractors.
Best and Worst Contributors
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12 Months Ended 12/31/03
Best Contributors
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Apollo Group
Omnicare
Henry Schein
Toll Brothers
Davita
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Worst Contributors
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Tier Technologies
Trimeris
BISYS Group
Westwood One
Verisity Ltd.
Finally, I'm sure you are aware that mutual fund companies have recently come
under scrutiny for their trading policies. The investigations have led to
allegations that executives of several mutual fund companies permitted or
engaged in improper mutual fund trading. In addition, certain intermediaries
that process fund transactions are alleged to have assisted some investors in
executing improper mutual fund trades. I want T. Rowe Price shareholders to know
that we emphatically condemn the abuses that have been revealed or alleged
against other firms in our industry. Our firm has not entered and will not enter
into any agreements with any investors or intermediaries that authorize
after-hours trading or excessive short-term trading in any of our funds. T. Rowe
Price investors can be assured that our firm unequivocally opposes illegal
inappropriate trading of any nature and has policies and procedures in place
designed to protect the best interests of our long-term shareholders. No T. Rowe
Price executives or portfolio managers or investment personnel of the T. Rowe
Price mutual funds have engaged in any inappropriate trading of T. Rowe Price
mutual funds. You may find out more about our trading policies and the steps we
take to protect your interests by visiting our Web site (troweprice.com). These
policies are also spelled out in your fund's prospectus.
We thank you for your continued support.
Respectfully,
James S. Riepe
Chairman
January 15, 2004
T. Rowe Price New Horizons Fund
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Certified Annual Report
Financial Highlights For a share outstanding throughout each period
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Year
Ended
12/31/03 12/31/02 12/31/01 12/31/00 12/31/99
NET ASSET VALUE
Beginning of period $ 16.61 $ 22.63 $ 23.89 $ 27.53 $ 23.34
Investment activities
Net investment
income (loss) (0.15) (0.17) (0.17) (0.13) (0.15)
Net realized and
unrealized gain (loss) 8.34 (5.85) (0.53) (0.37) 7.36
Total from
investment activities 8.19 (6.02) (0.70) (0.50) 7.21
Distributions
Net realized gain - - (0.56) (3.14) (3.02)
NET ASSET VALUE
End of period $ 24.80 $ 16.61 $ 22.63 $ 23.89 $ 27.53
------------------------------------------------------
Ratios/Supplemental Data
Total return^ 49.31% (26.60)% (2.84)% (1.86)% 32.52%
Ratio of total expenses
to average net assets 0.91% 0.92% 0.91% 0.88% 0.90%
Ratio of net investment
income (loss) to average
net assets (0.75)% (0.81)% (0.77)% (0.51)% (0.66)%
Portfolio turnover rate 28.6% 23.7% 27.4% 47.2% 44.7%
Net assets, end of
period (in millions) $ 4,955 $ 3,359 $ 5,583 $ 6,122 $ 6,022
^ Total return reflects the rate that an investor would have earned on an
investment in the fund during each period, assuming reinvestment of all
distributions.
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New Horizons Fund
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Certified Annual Report December 31, 2003
Portfolio of Investments (ss.) Shares Value
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($ 000s)
EQUITY INVESTMENTS 99.5% (s.)
CONSUMER DISCRETIONARY 22.4%
Auto Components 0.1%
LKQ Corporation * 192,900 3,463
3,463
Hotels, Restaurants & Leisure 6.5%
Alliance Gaming * 1,500,000 36,975
CEC Entertainment * 731,300 34,656
Extended Stay America 1,771,000 25,644
Multimedia Games *! 875,000 35,963
Orbitz, Class A * 162,000 3,759
Panera Bread, Class A * 300,000 11,859
PF Chang's China Bistro * 1,000,000 50,880
Rare Hospitality International * 1,125,000 27,495
Ruby Tuesday 1,100,000 31,339
Sonic * 900,000 27,558
Station Casinos 1,175,000 35,990
322,118
Household Durables 3.8%
Harman International 650,000 48,087
Ryland Group 500,000 44,320
Toll Brothers * 1,800,000 71,568
WCI Communities * 240,000 4,946
Yankee Candle Company * 800,000 21,864
190,785
Internet & Catalog Retail 0.0%
priceline.com * 100,000 1,790
1,790
Leisure Equipment & Products 0.3%
Polaris Industries 150,000 13,287
13,287
Media 5.1%
ADVO 1,200,000 38,112
Catalina Marketing * 2,132,500 42,991
Cox Radio, Class A * 1,000,000 25,230
Entercom Communications * 600,000 31,776
Lamar Advertising, Class A * 150,000 5,598
Radio One, Class D * 2,250,000 43,425
Regent Communications * 1,631,700 10,361
Spanish Broadcasting, Class A *! 2,000,000 21,000
TiVo * 600,000 4,440
Westwood One * 400,000 13,684
XM Satellite Radio Holdings, Class A * 600,000 15,816
252,433
Multiline Retail 1.5%
Tuesday Morning *! 2,500,000 75,625
75,625
Specialty Retail 5.1%
AC Moore Arts & Crafts * 850,000 16,371
AnnTaylor Stores * 950,000 37,050
Christopher & Banks ! 2,000,000 39,060
Cole National * 350,000 7,000
Guitar Center * 83,100 2,707
Linens 'n Things * 600,000 18,048
O'Reilly Automotive * 1,800,000 69,048
Sonic Automotive 886,000 20,307
The Finish Line, Class A * 850,000 25,475
Tweeter Home Entertainment Group * 1,000,000 9,450
Ultimate Electronics *! 800,000 6,104
250,620
Total Consumer Discretionary 1,110,121
CONSUMER NONDURABLES 0.1%
Biotechnology 0.1%
Theravance, Pfd. *!!@ 513,334 4,620
Total Consumer Nondurables 4,620
CONSUMER STAPLES 0.9%
Food & Staples Retailing 0.7%
Duane Reade *! 2,100,000 35,532
35,532
Food Products 0.2%
American Italian Pasta, Class A * 204,400 8,564
8,564
Total Consumer Staples 44,096
ENERGY 5.5%
Energy Equipment & Services 4.5%
BJ Services * 375,000 13,462
Cooper Cameron * 425,000 19,805
FMC Technologies * 1,400,000 32,620
Global Industries * 841,000 4,331
Grant Prideco * 1,500,000 19,530
Helmerich & Payne 750,000 20,947
Hydril * 531,000 12,707
Key Energy Services * 1,602,700 16,524
National Oilwell * 950,000 21,242
Seacor Smit * 300,000 12,609
Smith International * 275,000 11,418
Tidewater 700,000 20,916
Varco International * 150,000 3,095
W-H Energy Services * 784,000 12,701
221,907
Oil & Gas 1.0%
Cimarex Energy * 550,000 14,680
Encore Aquisition * 620,000 15,283
Westport Resources * 743,000 22,186
52,149
Total Energy 274,056
FINANCIALS 7.1%
Capital Markets 2.0%
Affiliated Managers Group * 354,000 24,635
Investor's Financial Services 350,000 13,443
Legg Mason 350,000 27,013
National Financial Partners 350,000 9,643
Waddell & Reed Financial, Class A 1,050,000 24,633
99,367
Commercial Banks 1.5%
Boston Private Financial 350,000 8,694
Silicon Valley Bancshares * 266,000 9,595
Texas Capital Bancshares * 600,000 8,677
UCBH Holdings 1,200,000 46,764
73,730
Consumer Finance 0.3%
First Marblehead * 217,000 4,748
Nelnet, Class A * 400,000 8,960
13,708
Diversified Financial Services 0.3%
CapitalSource * 650,000 14,092
14,092
Insurance 1.9%
Direct General 400,000 13,240
Hilb Rogal and Hamilton 200,000 6,414
Hub International 350,900 5,881
Infinity Property & Casualty 570,000 18,838
MaxRe Capital 700,000 15,708
Platinum Underwriters 550,000 16,500
Scottish Annuity & Life 1,000,000 20,780
97,361
Real Estate 0.1%
Trammell Crow * 548,200 7,264
7,264
Thrifts & Mortgage Finance 1.0%
Radian Group 1,000,000 48,750
48,750
Total Financials 354,272
HEALTH CARE 21.9%
Biotechnology 6.9%
Abgenix * 875,000 10,903
Alexion Pharmaceutical * 487,400 8,296
Alkermes * 1,681,700 22,703
Amylin Pharmaceuticals * 550,000 12,221
BioCryst Pharmaceuticals * 323,400 2,206
Cephalon * 724,500 35,073
Cubist Pharmaceuticals * 750,000 9,120
Diversa * 1,300,000 12,025
Exelixis * 1,314,000 9,303
Gilead Sciences * 400,000 23,256
Human Genome Sciences * 450,000 5,963
Imclone Systems * 225,000 8,924
Lexicon Genetics * 1,000,000 5,890
Millennium Pharmaceuticals * 475,000 8,868
Myriad Genetics * 750,000 9,645
Neurocrine Biosciences * 965,000 52,631
NPS Pharmaceuticals * 1,176,100 36,153
ONYX Pharmaceuticals * 400,000 11,292
OSI Pharmaceuticals * 225,000 7,247
Protein Design Labs * 250,000 4,475
Regeneron Pharmaceuticals * 221,100 3,252
Transkaryotic Therapies * 750,000 11,707
Trimeris * 500,000 10,490
Tularik * 750,000 12,112
Vertex Pharmaceuticals * 475,000 4,859
ViroPharma * 509,000 1,415
XOMA * 850,000 5,610
345,639
Health Care Equipment & Supplies 1.7%
Analogic 120,000 4,920
Control Delivery Systems, Cv.
Pfd., 8.00%, Series A *!!@ 74,432 2,000
CTI Molecular Imaging * 350,000 5,918
Encore Medical * 1,000,000 8,150
EPIX Medical * 560,000 9,117
Integra LifeServices Holdings * 544,100 15,578
Nektar Therapeutics * 425,000 5,784
Steris * 100,000 2,260
Thoratec * 600,000 7,806
Viasys Healthcare * 241,000 4,965
Wilson Greatbatch Technologies * 400,000 16,908
83,406
Health Care Providers & Services 11.9%
Accredo Health * 350,000 11,063
AMN Healthcare Services * 182,994 3,140
Community Health System * 1,000,000 26,580
Coventry Health Care * 850,000 54,816
Davita * 2,435,000 94,965
HealthStream *! 2,405,000 6,253
Henry Schein * 2,100,000 141,918
LabOne * 100,000 3,247
Mid Atlantic Medical Services * 550,000 35,640
Omnicare 3,000,000 121,170
Priority Healthcare, Class B * 50,000 1,206
Renal Care Group * 750,000 30,900
United Surgical Partners International * 350,000 11,718
VCA Antech * 900,000 27,882
WebMD * 750,000 6,743
WellChoice * 357,600 12,337
589,578
Pharmaceuticals 1.4%
Able Laboratories * 375,000 6,776
Atherogenics * 700,000 10,465
Eon Labs * 200,000 10,190
Medicines Company * 700,000 20,622
MGI Pharma * 185,000 7,613
Noven Pharmaceuticals * 375,000 5,704
Salix Pharmaceuticals * 300,000 6,801
68,171
Total Health Care 1,086,794
INDUSTRIALS & BUSINESS SERVICES 16.5%
Aerospace & Defense 1.6%
Armor Holdings * 775,000 20,390
Mercury Computer Systems * 641,000 15,961
MTC Technologies * 200,000 6,444
Triumph Group * 600,000 21,840
United Defense Industries * 435,000 13,868
78,503
Air Freight & Logistics 0.4%
EGL * 200,000 3,512
Forward Air * 500,000 13,750
17,262
Commercial Services & Supplies 11.3%
Apollo Group, Class A * 2,150,000 146,200
Bright Horizons Family Solutions * 450,000 18,900
Corporate Executive Board * 799,933 37,333
Education Management * 1,300,000 40,352
Exult * 4,750,000 33,820
First Advantage, Class A * 181,400 3,535
LECG * 167,900 3,843
Mobile Mini *! 1,100,000 21,692
Resources Connection * 500,000 13,655
School Specialty *! 1,500,000 51,015
SOURCECORP * 600,000 15,378
Sylvan Learning Systems * 1,550,000 44,625
Tetra Tech * 800,000 19,888
University of Phoenix Online * 1,000,000 68,930
Waste Connections * 1,125,900 42,525
561,691
Industrial Conglomerates 0.8%
Roper Industries 850,000 41,871
41,871
Machinery 2.1%
Actuant, Class A *! 1,200,000 43,440
Oshkosh Truck 1,200,000 61,236
104,676
Trading Companies & Distributors 0.3%
MSC Industrial Direct 500,000 13,750
13,750
Total Industrials & Business Services 817,753
INFORMATION TECHNOLOGY 21.0%
Communications Equipment 0.7%
Black Box 450,000 20,731
Harmonic Lightwaves * 800,000 5,800
Packeteer * 525,000 8,915
35,446
Computer & Peripherals 0.1%
Synaptics * 200,000 2,996
2,996
Electronic Equipment & Instruments 0.9%
FLIR Systems * 30,000 1,095
Molex 100,000 3,489
National Instruments 425,000 19,325
Newport * 925,000 15,290
Trimble Navigation * 150,000 5,586
44,785
Internet Software & Services 1.3%
Autobytel * 1,040,000 9,443
Internet Security Systems * 825,000 15,535
MatrixOne * 1,400,000 8,624
Netegrity * 725,000 7,475
Sonicwall * 1,100,000 8,580
The Knot *!!! 1,350,000 4,921
Websense * 350,000 10,234
64,812
IT Services 3.2%
BISYS Group * 2,000,000 29,760
Certegy 1,000,000 32,800
DigitalThink * 2,214,000 6,221
Global Payments 100,000 4,712
Iron Mountain * 550,000 21,747
Maximus * 400,000 15,652
META Group *! 1,000,000 6,300
Paychex 100,000 3,720
SkillSoft ADR * 3,000,000 25,950
SRA International, Class A * 100,000 4,310
Tier Technologies, Class B * 619,320 5,060
156,232
Semiconductor & Semiconductor Equipment 6.8%
Altera * 700,000 15,890
AMIS Holdings * 1,125,000 20,565
Analog Devices 800,000 36,520
ATMI * 1,100,000 25,454
Cabot Microelectronics * 300,000 14,700
Cognex 950,000 26,828
Integrated Circuit Systems * 516,300 14,709
Intersil Holding, Class A 975,000 24,229
Lattice Semiconductor * 800,000 7,744
Linear Technology 200,000 8,414
Maxim Integrated Products 900,000 44,820
Micrel * 775,000 12,075
Microsemi * 500,000 12,290
MIPS Technologies * 400,000 2,178
MKS Instruments * 525,000 15,225
Rambus * 200,000 6,140
Semtech * 800,000 18,184
Sigmatel * 115,000 2,838
Tessera Technologies * 500,000 9,405
Xilinx * 500,000 19,370
337,578
Software 8.0%
Actuate * 1,900,000 5,909
Altiris * 320,000 11,674
Autodesk 825,000 20,278
Business Objects ADR * 500,000 17,335
Cadence Design Systems * 550,000 9,889
Callidus Software * 150,000 2,654
Concord Communications * 600,000 11,982
Convera, Class A *! 700,000 2,387
Convera *!!! 800,000 2,455
FactSet Research Systems 500,000 19,105
FileNet * 725,000 19,633
Informatica * 2,700,000 27,810
Jack Henry & Associates 1,250,000 25,725
Kronos * 1,050,000 41,590
Macromedia * 1,100,000 19,624
Magma Design Automation * 600,000 14,004
Mercury Interactive * 750,000 36,480
Nassda * 757,600 5,493
NetIQ * 1,425,000 18,881
Network Associates * 1,400,000 21,056
Open Solutions * 130,000 2,284
Quest Software * 425,000 6,035
Radiant Systems * 350,000 2,944
Red Hat * 800,000 15,016
RSA Security * 675,000 9,585
Verisity Ltd. * 550,000 7,012
Verity * 700,000 11,683
Wind River Systems * 900,000 7,884
396,407
Total Information Technology 1,038,256
MATERIALS 1.0%
Chemicals 0.7%
Airgas 360,000 7,733
Ferro 300,000 8,163
Symyx Technologies * 950,000 19,522
35,418
Metals & Mining 0.3%
Steel Dynamics * 500,000 11,745
11,745
Total Materials 47,163
TELECOMMUNICATION SERVICES 3.0%
Wireless Telecommunication Services 3.0%
Crown Castle International * 500,000 5,515
Millicom International Cellular * 200,000 13,980
Nextel Partners, Class A * 2,850,000 38,333
NII Holdings, Class B * 750,000 55,972
Triton PCS Holdings, Class A * 736,900 4,112
Western Wireless, Class A * 1,000,000 18,360
Wireless Facilities * 1,000,000 14,860
Total Telecommunication Services 151,132
Total Miscellaneous Equity Investments 0.1% 4,412
Total Equity Investments (Cost $3,328,789) 4,932,675
SHORT-TERM INVESTMENTS 0.3%
Money Market Fund 0.3%
T. Rowe Price Reserve
Investment Fund, 1.13% # 12,340,343 12,340
Total Short-Term Investments (Cost $12,340) 12,340
Total Investments in Securities
99.8% of Net Assets (Cost $3,341,129) $ 4,945,015
-----------------
(ss.) Denominated in U.S. Dollar unless otherwise noted
# Seven-day yield
* Non-income producing
(s.) Common stocks, rights, and warrants--cost $3,320,169, value
$4,926,055, 99.4% of net assets; Preferred stocks--cost $4,620, value
$4,620, 0.1% of net assets; Convertible preferred stocks--cost $4,000,
value $2,000, 0% of net assets
! Affiliated company--See Note 2.
!! Security contains restrictions as to public resale pursuant to the
Securities Act of 1933 and related rules--total of such securities at
period-end amounts to $13,996 and represents 0.3% of net assets
@ Security valued by the Fund's Board of Directors
ADR American Depository Receipts
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New Horizons Fund
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Certified Annual Report December 31, 2003
Statement of Assets and Liabilities
- --------------------------------------------------------------------------------
($ 000s)
Assets
Investments in securities, at value
Affiliated companies (cost $306,833) $ 351,747
Other companies (cost $3,034,296) 4,593,268
Total investments in securities 4,945,015
Other assets 28,059
Total assets 4,973,074
Liabilities
Total liabilities 17,998
NET ASSETS $ 4,955,076
---------------
Net Assets Consist of:
Undistributed net realized gain (loss) (255,523)
Net unrealized gain (loss) 1,603,886
Paid-in-capital applicable to 199,784,274 shares of
$1.00 par value capital stock outstanding;
300,000,000 shares authorized 3,606,713
NET ASSETS $ 4,955,076
-----------------
NET ASSET VALUE PER SHARE $ 24.80
-----------------
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Statement of Operations
- --------------------------------------------------------------------------------
($ 000s)
Year
Ended
12/31/03
Investment Income (Loss)
Dividend Income $ 6,306
Expenses
Investment management 26,921
Shareholder servicing 9,143
Custody and accounting 250
Prospectus and shareholder reports 245
Registration 51
Legal and audit 26
Directors 21
Miscellaneous 31
Total expenses 36,688
Expenses paid indirectly (3)
Net expenses 36,685
Net investment income (loss) (30,379)
Realized and Unrealized Gain (Loss)
Net realized gain (loss)
Securities 115,360
Foreign currency transactions (24)
Net realized gain (loss) 115,336
Change in net unrealized gain (loss) on securities 1,545,443
Net realized and unrealized gain (loss) 1,660,779
INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 1,630,400
-----------------
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Statement Of Changes In Net Assets
- --------------------------------------------------------------------------------
($ 000s)
Year
Ended
12/31/03 12/31/02
Increase (Decrease) in Net Assets
Operations
Net investment income $ (30,379) $ (33,401)
Net realized gain (loss) 115,336 104,728
Change in net unrealized
gain or loss 1,545,443 (1,367,631)
Increase (decrease) in net
assets from operations 1,630,400 (1,296,304)
Capital share transactions *
Shares sold 794,491 657,283
Shares reinvested 10 -
Shares redeemed (829,181) (1,584,308)
Increase (decrease) in net
assets from capital
share transactions (34,680) (927,025)
Net Assets
Increase (decrease) during period 1,595,720 (2,223,329)
Beginning of period 3,359,356 5,582,685
End of period $ 4,955,076 $ 3,359,356
-------------------------------------
*Share information
Shares sold 38,617 34,282
Shares redeemed (41,135) (78,724)
Increase (decrease) in shares outstanding (2,518) (44,442)
The accompanying notes are an integral part of these financial statements.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report December 31, 2003
Notes to Financial Statements
- --------------------------------------------------------------------------------
NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES
T. Rowe Price New Horizons, Inc. (the fund) is registered under the Investment
Company Act of 1940 (the 1940 Act) as a diversified, open-end management
investment company and commenced operations on June 3, 1960. The fund seeks
long-term capital growth by investing primarily in common stocks of small,
rapidly growing companies.
The accompanying financial statements were prepared in accordance with
accounting principles generally accepted in the United States of America, which
require the use of estimates made by fund management.
Valuation
The fund values its investments and computes its net asset value per share at
the close of the New York Stock Exchange (NYSE), normally 4 p.m. ET, each day
that the NYSE is open for business. Equity securities listed or regularly traded
on a securities exchange or in the over-the-counter market are valued at the
last quoted sale price, or official closing price for certain markets, at the
time the valuations are made. A security that is listed or traded on more than
one exchange is valued at the quotation on the exchange determined to be the
primary market for such security. Listed securities not traded on a particular
day are valued at the mean of the latest bid and ask prices for domestic
securities and the last quoted sale price for international securities.
Debt securities are generally traded in the over-the-counter market. Securities
with original maturities of one year or more are valued at prices furnished by
dealers who make markets in such securities or by an independent pricing
service, which considers yield or price of bonds of comparable quality, coupon,
maturity, and type, as well as prices quoted by dealers who make markets in such
securities. Securities with original maturities of less than one year are valued
at amortized cost in local currency, which approximates fair value when combined
with accrued interest.
Investments in mutual funds are valued at the mutual fund's closing net asset
value per share on the day of valuation.
Other investments and those for which the above valuation procedures are
inappropriate or are deemed not to reflect fair value are stated at fair value
as determined in good faith by the T. Rowe Price Valuation Committee,
established by the fund's Board of Directors.
Most foreign markets close before the NYSE. Normally, developments that could
affect the values of securities that occur between the close of a foreign market
and the close of the NYSE will not be reflected in security valuations used by
the fund to compute its share price. However, if developments are so significant
that they will, in the judgment of the fund, clearly and materially affect
security values, such valuations may be adjusted to reflect the estimated fair
value of the securities as of the close of the NYSE, as determined in good faith
by the T. Rowe Price Valuation Committee, established by the fund's Board of
Directors.
Currency Translation
Assets, including investments, and liabilities denominated in foreign currencies
are translated into U.S. dollar values each day at the prevailing exchange rate,
using the mean of the bid and ask prices of such currencies against U.S. dollars
as quoted by a major bank. Purchases and sales of securities, income, and
expenses are translated into U.S. dollars at the prevailing exchange rate on the
date of the transaction. The effect of changes in foreign currency exchange
rates on realized and unrealized security gains and losses is reflected as a
component of security gains and losses.
Rebates and Credits
Subject to best execution, the fund may direct certain security trades to
brokers who have agreed to rebate a portion of the related brokerage commission
to the fund in cash. Commission rebates are included in realized gain on
securities in the accompanying financial statements and totaled $208,000 for the
year ended December 31, 2003. Additionally, the fund earns credits on
temporarily uninvested cash balances at the custodian that reduce the fund's
custody charges. Custody expense in the accompanying financial statements is
presented before reduction for credits, which are reflected as expenses paid
indirectly.
Investment Transactions, Investment Income, and Distributions
Income and expenses are recorded on the accrual basis. Dividends received from
mutual fund investments are reflected as dividend income; capital gain
distributions are reflected as realized gain/loss. Dividend income and capital
gain distributions are recorded on the ex-dividend date. Investment transactions
are accounted for on the trade date. Realized gains and losses are reported on
the identified cost basis. Distributions to shareholders are recorded on the
ex-dividend date. Income distributions are declared and paid on an annual basis.
Other
In the normal course of business, the fund enters into contracts that provide
general indemnifications. The fund's maximum exposure under these arrangements
is dependent on claims that may be made against the fund in the future and,
therefore, cannot be estimated; however, based on experience, the risk of
material loss from such claims is considered remote.
NOTE 2 - INVESTMENT TRANSACTIONS
Consistent with its investment objective, the fund engages in the following
practices to manage exposure to certain risks or enhance performance. The
investment objective, policies, program, and risk factors of the fund are
described more fully in the fund's prospectus and Statement of Additional
Information.
Affiliated Companies
The fund may invest in certain securities that are considered affiliated
companies. As defined by the 1940 Act, an affiliated company is one in which the
fund owns 5% or more of the outstanding voting securities. At December 31, 2003,
the value of affiliated companies totaled $351,747,000, representing 7.1% of the
value of the fund's investments in securities. For the year then ended, $158,000
(2.5%) of dividend income and $1,889,000 (1.6%) of net realized gain reflected
in the accompanying financial statements resulted from the fund's transactions
with affiliated companies.
Other
Purchases and sales of portfolio securities, other than short-term securities,
aggregated $1,137,473,000 and $1,180,496,000, respectively, for the year ended
December 31, 2003.
NOTE 3 - FEDERAL INCOME TAXES
No provision for federal income taxes is required since the fund intends to
continue to qualify as a regulated investment company under Subchapter M of the
Internal Revenue Code and distribute to shareholders all of its taxable income
and gains. Federal income tax regulations differ from generally accepted
accounting principles; therefore, distributions determined in accordance with
tax regulations may differ significantly in amount or character from net
investment income and realized gains for financial reporting purposes. Financial
reporting records are adjusted for permanent book/tax differences to reflect tax
character. Financial records are not adjusted for temporary differences.
There were no distributions in the year ended December 31, 2003. At December 31,
2003, the tax-basis components of net assets were as follows:
- --------------------------------------------------------------------------------
Unrealized appreciation $ 2,074,232,000
Unrealized depreciation (477,463,000)
Net unrealized appreciation (depreciation) 1,596,769,000
Capital loss carryforwards (248,406,000)
Paid-in capital 3,606,713,000
Net assets $ 4,955,076,000
-------------------
Pursuant to federal income tax regulations applicable to investment companies,
the fund has elected to treat net capital losses realized between November 1 and
December 31 of each year as occurring on the first day of the following tax
year. Consequently, $7,117,000 of realized losses reflected in the accompanying
financial statements will not be recognized for tax purposes until 2004. The
fund intends to retain realized gains to the extent of available capital loss
carryforwards for federal income tax purposes. In 2003, the fund utilized
$118,950,000 of capital loss carryforwards. As of December 31, 2003, the fund
had $34,264,000 of capital loss carryforwards that expire in 2009 and
$214,142,000 that expire in 2010.
For the year ended December 31, 2003, the fund recorded the following permanent
reclassifications to reflect tax character. Reclassifications to paid-in capital
relate primarily to the current net operating loss.
- --------------------------------------------------------------------------------
Undistributed net investment income $ 30,379,000
Undistributed net realized gain 25,000
Paid-in capital (30,404,000)
At December 31, 2003, the cost of investments for federal income tax purposes
was $3,348,246,000.
NOTE 4 - RELATED PARTY TRANSACTIONS
The fund is managed by T. Rowe Price Associates, Inc. (the manager or Price
Associates), a wholly owned subsidiary of T. Rowe Price Group, Inc. The
investment management agreement between the fund and the manager provides for an
annual investment management fee, which is computed daily and paid monthly. The
fee consists of an individual fund fee, equal to 0.35% of the fund's average
daily net assets, and the fund's pro-rata share of a group fee. The group fee is
calculated based on the combined net assets of certain mutual funds sponsored by
Price Associates (the group) applied to a graduated fee schedule, with rates
ranging from 0.48% for the first $1 billion of assets to 0.295% for assets in
excess of $120 billion. The fund's portion of the group fee is determined by the
ratio of its average daily net assets to those of the group. At December 31,
2003, the effective annual group fee rate was 0.32%, and investment management
fee payable totaled $2,792,000.
In addition, the fund has entered into service agreements with Price Associates
and two wholly owned subsidiaries of Price Associates (collectively, Price).
Price Associates computes the daily share price and maintains the financial
records of the fund. T. Rowe Price Services, Inc., provides shareholder and
administrative services in its capacity as the fund's transfer and dividend
disbursing agent. T. Rowe Price Retirement Plan Services, Inc., provides
subaccounting and recordkeeping services for certain retirement accounts
invested in the fund. Expenses incurred pursuant to these service agreements
totaled $6,617,000 for the year ended December 31, 2003, of which $572,000 was
payable at period-end.
The fund is also one of several mutual funds sponsored by Price Associates
(underlying Price funds) in which the T. Rowe Price Spectrum Funds (Spectrum
Funds) may invest. The Spectrum Funds do not invest in the underlying Price
funds for the purpose of exercising management or control. Pursuant to a special
servicing agreement, expenses associated with the operation of the Spectrum
Funds are borne by each underlying Price fund to the extent of estimated savings
to it and in proportion to the average daily value of its shares owned by the
Spectrum Funds. Expenses allocated under this agreement are reflected as
shareholder servicing expense in the accompanying financial statements. For the
year ended December 31, 2003, the fund was allocated $879,000 of Spectrum Funds'
expenses, of which $630,000 related to services provided by Price and $67,000
was payable at period-end. At December 31, 2003, approximately 8.4% of the
outstanding shares of the fund were held by the Spectrum Funds.
The fund may invest in the T. Rowe Price Reserve Investment Fund and the T. Rowe
Price Government Reserve Investment Fund (collectively, the Reserve Funds),
open-end management investment companies managed by Price Associates. The
Reserve Funds are offered as cash management options only to mutual funds,
trusts, and other accounts managed by Price Associates and/or its affiliates,
and are not available to the public. The Reserve Funds pay no investment
management fees. During the year ended December 31, 2003, dividend income from
the Reserve Funds totaled $649,000.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Report of Independent Auditors
- --------------------------------------------------------------------------------
To the Board of Directors and Shareholders of
T. Rowe Price New Horizons Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of T. Rowe Price New Horizons Fund,
Inc. (the "Fund") at December 31, 2003, and the results of its operations, the
changes in its net assets and the financial highlights for each of the fiscal
periods presented, in conformity with accounting principles generally accepted
in the United States of America. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States of America, which require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
December 31, 2003 by correspondence with the custodian, provide a reasonable
basis for our opinion.
PricewaterhouseCoopers LLP
Baltimore, Maryland
January 26, 2004
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Information on Proxy Voting
A description of the policies and procedures that the T. Rowe Price New Horizons
Fund uses to determine how to vote proxies relating to portfolio securities is
available, without charge, upon request by calling 1-800-225-5132. It also
appears in the fund's Statement of Additional Information (Form 485B), which can
be found on the SEC's Web site, www.sec.gov.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
About the Fund's Directors and Officers
Your fund is 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
fund's 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 fund's officers, who are listed in the final table. The business
address of each director and officer is 100 East Pratt Street, Baltimore, MD
21202. The Statement of Additional Information includes additional information
about the fund directors and is available without charge by calling a T. Rowe
Price representative at 1-800-225-5132.
Independent Directors
Name
(Date of Birth) Principal Occupation(s) During Past 5 Years
Year Elected* and Directorships of Other Public Companies
Anthony W. Deering Director, Chairman of the Board, President, and
(1/28/45) Chief Executive Officer, The Rouse Company, real
2001 estate developers; Director, Mercantile Bank
(4/03 to present)
Donald W. Dick, Jr. Principal, EuroCapital Advisors, LLC, an
(1/27/43) acquisition and management advisory firm
1994
David K. Fagin Director, Golden Star Resources Ltd., Canyon
(4/9/38) Resources Corp. (5/00 to present), and Pacific
1988 Rim Mining Corp. (2/02 to present); Chairman and
President, Nye Corp.
Karen N. Horn Managing Director and President, Global Private
(9/21/43) Client Services, Marsh Inc.; Managing Director
2003 and Head of International Private Banking, Bankers
Trust; Director, Eli Lilly and Company
F. Pierce Linaweaver President, F. Pierce Linaweaver & Associates,
(8/22/34) Inc., consulting environmental and civil engineers
2001
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., a
(8/2/33) private investment company
1983
Paul M. Wythes** Founding Partner, Sutter Hill Ventures, a venture
(6/23/33) capital limited partnership, providing equity
1981 capital to young high-technology companies
throughout the United States; Director,
Teltone Corp.
* Each independent director oversees 107 T. Rowe Price portfolios and serves
until retirement, resignation, or election of a successor.
** Retired from Board of Directors effective December 31, 2003.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Inside Directors
Name
(Date of Birth)
Year Elected*
[Number of T. Rowe Price Principal Occupation(s) During Past 5 Years and
Portfolios Overseen] Directorships of Other Public Companies
John H. Laporte, CFA Director and Vice President, T. Rowe Price Group,
(7/26/45) Inc.; Vice President, T. Rowe Price; President,
1988 New Horizons Fund
[15]
James S. Riepe Director and Vice President, T. Rowe Price;
(6/25/43) Vice Chairman of the Board, Director, and Vice
1983 President, T. Rowe Price Group, Inc.; Chairman
[107] of the Board and Director, T. Rowe Price Global
Asset Management Limited, T. Rowe Price Global
Investment Services Limited, 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.; Chairman of the Board,
New Horizons Fund
M. David Testa, CFA, CIC Chief Investment Officer, Director, and Vice
(4/22/44) President, T. Rowe Price; Vice Chairman of the
1994 Board, Chief Investment Officer, Director, and
[107] Vice President, T. Rowe Price Group, Inc.;
Chairman of the Board and Director, T. Rowe Price
International, Inc.; Director, T. Rowe Price
Global Asset Management Limited and T. Rowe Price
Global Investment Services Limited; Director and
Vice President, T. Rowe Price Trust Company
* Each inside director serves until retirement, resignation, or election of a
successor.
Officers
Name (Date of Birth)
Title and Fund(s) Served Principal Occupation(s)
Francisco Alonso (1/27/78) Vice President, T. Rowe Price; formerly
Vice President, New Horizons Fund student, University of Ohio (to 2000);
intern, Morgan Stanley Dean Witter
(to 2000)
Brian W.H. Berghuis, CFA (10/12/58) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Christopher A. Berrier (8/12/77) Employee, T. Rowe Price; formerly
Vice President, New Horizons Fund intern, Riggs Capital Partners (to 1999)
Unless otherwise noted, officers have been employees of T. Rowe Price or
T. Rowe Price International for at least five years.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Officers (continued)
Name (Date of Birth)
Title and Fund(s) Served Principal Occupation(s)
Stephen V. Booth (6/21/61) Vice President, T. Rowe Price, T. Rowe
Vice President, New Horizons Fund Price Group, Inc., and T. Rowe Price
Trust Company
Christopher W. Carlson (1/27/67) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Joseph A. Carrier (12/30/60) Vice President, T. Rowe Price, T. Rowe
Treasurer, New Horizons Fund Price Group, Inc., and T. Rowe Price
Investment Services, Inc.
Hugh M. Evans III, CFA (5/17/66) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Joseph B. Fath, CPA (10/5/71) Employee, T. Rowe Price; formerly
Vice President, New Horizons Fund intern, T. Rowe Price (to 2001); Chief
Financial Officer and cofounder,
Broadform, Inc. (to 2000); student,
The Wharton School, University of
Pennsylvania (to 1999)
Roger L. Fiery III, CPA (2/10/59) Vice President, T. Rowe Price, T. Rowe
Vice President, New Horizons Fund Price Group, Inc., T. Rowe Price
International, Inc., and T. Rowe Price
Trust Company
Eric M. Gerster, CFA (3/23/71) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Francies W. Hawks (2/2/44) Assistant Vice President, T. Rowe Price
Assistant Vice President,
New Horizons Fund
Henry H. Hopkins (12/23/42) Director and Vice President, T. Rowe
Vice President, New Horizons Fund Price Group, Inc., T. Rowe Price
Investment Services, Inc., T. Rowe
Price Services, Inc., and T. Rowe Price
Trust Company; Vice President, T. Rowe
Price, T. Rowe Price International,
Inc., and T. Rowe Price Retirement Plan
Services, Inc.
Kris H. Jenner, MD, D. Phil. (2/5/62) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Patricia B. Lippert (1/12/53) Assistant Vice President, T. Rowe
Secretary, New Horizons Fund Price and T. Rowe Price Investment
Services, Inc.
Jay S. Markowitz, MD (12/19/62) Vice President, T. Rowe Price; formerly
Vice President, New Horizons Fund Transplant Surgeon and Assistant
Professor of Surgery, Johns Hopkins
University School of Medicine (to 2001)
Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe
Price International for at least five years.
T. Rowe Price New Horizons Fund
- --------------------------------------------------------------------------------
Certified Annual Report
Officers (continued)
Name (Date of Birth)
Title and Fund(s) Served Principal Occupation(s)
Joseph M. Milano, CFA (9/14/72) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Charles G. Pepin (4/23/66) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Michael F. Sola, CFA (7/21/69) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
John F. Wakeman (11/25/62) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.
Julie L. Waples (5/12/70) Vice President, T. Rowe Price
Vice President, New Horizons Fund
R. Candler Young (9/28/71) Vice President, T. Rowe Price and
Vice President, New Horizons Fund T. Rowe Price Group, Inc.; formerly
investment banking summer associate,
Goldman Sachs & Company (to 1999)
Unless otherwise noted, officers have been employees of T. Rowe Price or T. Rowe
Price International for at least five years.
Item 2. Code of Ethics.
As of the end of the period covered by this report, the registrant has adopted a
code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal
executive officer, principal financial officer, principal accounting officer or
controller, or persons performing similar functions. A copy of this code of
ethics is filed as an exhibit to this Form N-CSR. No substantive amendments were
approved or waivers were granted to this code of ethics during the period
covered by this report.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Directors/Trustees has determined that Mr. David K.
Fagin qualifies as an audit committee financial expert, as defined in Item 3 of
Form N-CSR. Mr. Fagin is considered independent for purposes of Item 3 of Form
N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) - (d) Aggregate fees billed to the registrant for the last two fiscal years
for professional services rendered by the registrant's principal accountant were
as follows:
2003 2002
Audit Fees $14,823 $13,923
Audit-Related Fees 912 --
Tax Fees 3,850 3,371
All Other Fees 124 284
Audit fees include amounts related to the audit of the registrant's annual
financial statements and services normally provided by the accountant in
connection with statutory and regulatory filings. Audit-related fees include
amounts reasonably related to the performance of the audit of the registrant's
financial statements, specifically the issuance of a report on internal
controls. Tax fees include amounts related to tax compliance, tax planning, and
tax advice. Other fees include the registrant's pro-rata share of amounts for
agreed-upon procedures in conjunction with service contract approvals by the
registrant's Board of Directors/Trustees.
(e)(1) The registrant's audit committee has adopted a policy whereby audit and
non-audit services performed by the registrant's principal accountant for the
registrant, its investment adviser, and any entity controlling, controlled by,
or under common control with the investment adviser that provides ongoing
services to the registrant require pre-approval in advance at regularly
scheduled audit committee meetings. If such a service is required between
regularly scheduled audit committee meetings, pre-approval may be authorized by
one audit committee member with ratification at the next scheduled audit
committee meeting. Waiver of pre-approval for audit or non-audit services
requiring fees of a de minimis amount is not permitted.
(2) No services included in (b) - (d) above were approved pursuant to
paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the preceding
fiscal year by the registrant's principal accountant for non-audit services
rendered to the registrant, its investment adviser, and any entity controlling,
controlled by, or under common control with the investment adviser that provides
ongoing services to the registrant were $719,000 and $671,000, respectively, and
were less than the aggregate fees billed for those same periods by the
registrant's principal accountant for audit services rendered to the T. Rowe
Price Funds.
(h) All non-audit services rendered in (g) above were pre-approved by the
registrant's audit committee. Accordingly, these services were considered by the
registrant's audit committee in maintaining the principal accountant's
independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 9. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial officer
have evaluated the registrant's disclosure controls and procedures within 90
days of this filing and have concluded that the registrant's disclosure controls
and procedures were effective, as of that date, in ensuring that information
required to be disclosed by the registrant in this Form N-CSR was recorded,
processed, summarized, and reported timely.
(b) The registrant's principal executive officer and principal financial officer
are aware of no changes in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal half-year
that has materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting.
Item 10. Exhibits.
(a)(1) The registrant's code of ethics pursuant to Item 2 of Form N-CSR is
attached.
(a)(2) Separate certifications by the registrant's principal executive officer
and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of
1940, are attached.
(b) A certification by the registrant's principal executive officer and
principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940,
is attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf by the undersigned, thereunto duly authorized.
T. Rowe Price New Horizons Fund, Inc.
By /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date February 13, 2004
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ James S. Riepe
James S. Riepe
Principal Executive Officer
Date February 13, 2004
By /s/ Joseph A. Carrier
Joseph A. Carrier
Principal Financial Officer
Date February 13, 2004