Item 1. Report to Shareholders T. Rowe Price Institutional Foreign Equity Fund - -------------------------------------------------------------------------------- Certified Financials Financial Highlights T. Rowe Price Institutional Foreign Equity Fund Certified Financials (Unaudited) For a share outstanding throughout each period ------------------------------------------------------------------ 6 Months Year Ended Ended 4/30/03 10/31/02 10/31/01 10/31/00 10/31/99 10/31/98 NET ASSET VALUE Beginning of period $ 10.65 $ 12.70 $ 19.16 $ 20.08 $ 17.03 $ 16.51 Investment activities Net investment income (loss) 0.09 0.18 0.39 0.13 0.21 0.28 Net realized and unrealized gain (loss) 0.08 (1.81) (5.35) 0.46 3.26 0.93 Total from investment activities 0.17 (1.63) (4.96) 0.59 3.47 1.21 Distributions Net investment income (0.15) (0.42) (0.11) (0.17) (0.29) (0.21) Net realized gain (0.02) -- (1.39) (1.34) (0.13) (0.48) Total distributions (0.17) (0.42) (1.50) (1.51) (0.42) (0.69) NET ASSET VALUE End of period $ 10.65 $ 10.65 $ 12.70 $ 19.16 $ 20.08 $ 17.03 - -------------------------------------------------------------------------------- Ratios/Supplemental Data Total return^ 1.63% (13.43)% (28.02)% 2.45% 20.79% 7.65% Ratio of total expenses to average net assets 0.76%! 0.75% 0.74% 0.74% 0.74% 0.74% Ratio of net investment income (loss) to average net assets 1.66%! 1.06% 2.25% 0.57% 1.08% 1.58% Portfolio turnover rate 22.0%! 20.0% 21.4% 39.7% 18.2% 18.6% Net assets, end of period (in millions) $ 1,169 $ 1,168 $ 1,903 $ 3,138 $ 3,361 $ 3,204 ^ 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. ! Annualized The accompanying notes are an integral part of these financial statements. Statement of Net Assets T. Rowe Price Institutional Foreign Equity Fund Certified Financials April 30, 2003 (Unaudited) Shares Value - -------------------------------------------------------------------------------- In thousands AUSTRALIA 1.1% Common Stocks 0.6% BHP Billiton 1,174,000 $ 6,646 6,646 Preferred Stocks 0.5% News Corporation (misc. symbol) 995,779 5,887 5,887 Total Australia (Cost $11,523) 12,533 BELGIUM 0.7% Common Stocks 0.7% Dexia (misc. symbol) 350,210 4,021 Fortis (misc. symbol) 138,978 2,337 UCB (misc. symbol) 47,379 1,314 Total Belgium (Cost $5,973) 7,672 BRAZIL 0.6% Common Stocks 0.6% Grupo Pao de Acucar ADR (USD) 103,100 1,495 Petroleo Brasileiro (Petrobras) ADR (USD) 303,560 5,194 Total Brazil (Cost $7,361) 6,689 CANADA 0.4% Common Stocks 0.4% Alcan Aluminum (misc. symbol) 55,550 1,627 Celestica (USD) * 55,813 645 Royal Bank of Canada (misc. symbol) 69,190 2,885 Total Canada (Cost $3,745) 5,157 CHINA 0.2% Common Stocks 0.2% China Telecom Limited (HKD) * 14,818,000 2,850 Total China (Cost $2,609) 2,850 DENMARK 0.6% Common Stocks 0.6% Novo Nordisk 197,800 7,177 Total Denmark (Cost $6,279) 7,177 FINLAND 1.8% Common Stocks 1.8% Nokia (misc. symbol) 1,246,744 $ 21,133 Total Finland (Cost $4,686) 21,133 FRANCE 15.9% Common Stocks 15.9% Aventis (misc. symbol) 338,725 17,236 AXA (misc. symbol) 455,544 6,932 BNP Paribas (misc. symbol) 509,536 23,962 Cap Gemini * 18,809 586 Carrefour (misc. symbol) 38,130 1,661 Compagnie de Saint-Gobain (misc. symbol) 186,204 6,458 France Telecom (misc. symbol) 528,700 12,237 Groupe Danone (misc. symbol) 12,740 1,806 Hermes (misc. symbol) 51,510 7,176 L'Oreal (misc. symbol) 62,622 4,485 Lafarge (misc. symbol) 13,868 933 LVMH (misc. symbol) 165,300 7,227 Orange * 344,420 2,765 Pinault Printemps Redoute (misc. symbol) 24,975 1,748 Sanofi-Synthelabo (misc. symbol) 313,237 18,720 Schneider Electric * 162,575 7,711 Societe Generale (misc. symbol) 64,414 3,947 Sodexho Alliance (misc. symbol) 394,779 9,000 STMicroelectronics (misc. symbol) 202,374 4,191 Television Francaise (misc. symbol) 310,970 8,751 Thomson * 174,355 2,560 TotalFinaElf, Series B (misc. symbol) 261,327 34,332 Vivendi Universal 114,897 1,876 Total France (Cost $154,508) 186,300 GERMANY 2.1% Common Stocks 2.1% Allianz (misc. symbol) 38,519 2,728 Bayer (misc. symbol) 70,274 1,285 Bayerische Hypo-und Vereinsbank (misc. symbol) 54,318 725 Deutsche Bank (misc. symbol) 121,725 6,307 E.On (misc. symbol) 59,416 2,849 Gehe (misc. symbol) 114,783 4,561 Rhoen-Klinikum 47,284 1,771 SAP 25,090 2,575 Siemens 37,631 1,880 Total Germany (Cost $27,603) 24,681 HONG KONG 0.5% Common Stocks 0.5% Cheung Kong Holdings 376,000 $ 2,078 China Mobile (Hong Kong) 1,882,000 3,776 Total Hong Kong (Cost $5,686) 5,854 INDIA 0.6% Common Stocks 0.6% Hindustan Lever 2,234,600 6,824 Total India (Cost $11,193) 6,824 ISRAEL 0.1% Common Stocks 0.1% Check Point Software Technologies (USD) * 77,916 1,226 Total Israel (Cost $1,513) 1,226 ITALY 6.1% Common Stocks 6.1% Alleanza Assicurazioni (misc. symbol) 827,970 7,758 Banca Intesa (misc. symbol) 2,128,633 5,522 ENI (misc. symbol) 1,079,631 15,415 Mediaset (misc. symbol) 579,712 4,965 Mediolanum (misc. symbol) 368,085 1,926 Olivetti *(misc. symbol) 1,485,987 1,690 Telecom Italia (Ordinary shares) (misc. symbol) 734,944 6,015 Telecom Italia (Savings shares) 852,900 4,206 Telecom Italia Mobile (misc. symbol) 2,336,246 11,023 UniCredito Italiano (misc. symbol) 2,978,439 13,054 Total Italy (Cost $58,254) 71,574 JAPAN 13.4% Common Stocks 13.4% Canon 364,000 14,734 Credit Saison (misc. symbol) 219,300 4,134 Daiichi Pharmaceutical 111,700 1,416 Denso 117,800 1,682 Fanuc 48,100 1,971 Fuji Television Network 639 2,259 Fujisawa Pharmaceutical (misc. symbol) 371,000 6,293 Hitachi Chemical (misc. symbol) 269,000 2,435 Honda Motor 287,400 9,533 Ito-Yokado 129,000 $ 3,039 Japan Telecom Holdings 674 1,845 KDDI (misc. symbol) 2,339 7,111 Keyence 16,600 2,672 Keyence (Bonus shares) * 1,660 267 Kyocera 41,100 2,009 Marui 386,000 3,219 Mitsubishi Estate 750,000 4,396 Mitsui Fudosan 1,197,000 6,453 Murata Manufacturing 16,500 589 Nomura Securities (misc. symbol) 495,000 4,909 NTT DoCoMo 5,372 11,098 Rohm 47,300 4,882 Secom (misc. symbol) 384,000 8,965 Seven-Eleven Japan (misc. symbol) 333,000 7,942 Shin-Etsu Chemical 94,500 2,833 Shiseido (misc. symbol) 564,000 5,158 SMC 36,400 2,745 Sony (misc. symbol) 238,380 5,805 Sumitomo (misc. symbol) 251,000 1,012 Suzuki Motor 349,000 4,138 Takeda Chemical Industries 110,000 4,037 Toppan Printing 34,000 216 Toyota Motor 369,600 8,380 Yamanouchi Pharmaceutical 274,000 6,926 Yamato Transport 131,000 1,468 Total Japan (Cost $192,164) 156,571 LUXEMBOURG 0.0% Common Stocks 0.0% SES Global (1 FDR Represents 1 A share) 65,520 385 Total Luxembourg (Cost $1,047) 385 MALAYSIA 0.1% Common Stocks 0.1% Sime Darby 694,000 913 Total Malaysia (Cost $994) 913 MEXICO 1.5% Common Stocks 1.5% America Movil ADR Series L (USD) 295,500 4,956 Femsa UBD Units (Represents 1 Series B and 4 Series D shares) 1,332,690 $ 5,027 Grupo Financiero BBVA Bancomer, Series B *(misc. symbol) 4,513,400 3,917 Wal-Mart de Mexico (misc. symbol) 1,433,000 3,960 Total Mexico (Cost $15,509) 17,860 NETHERLANDS 5.0% Common Stocks 5.0% Akzo Nobel 23,031 513 ASML Holding * 486,140 4,207 Equant *(misc. symbol) 37,950 221 Fortis (misc. symbol) 285,884 4,769 ING Groep (misc. symbol) 753,620 12,260 Philips Electronics 579,174 10,795 Reed Elsevier 378,880 4,321 Royal Dutch Petroleum (misc. symbol) 154,478 6,330 Royal KPN * 914,800 6,096 VNU 178,163 5,180 Wolters Kluwer 247,120 3,225 Total Netherlands (Cost $61,545) 57,917 NORWAY 0.4% Common Stocks 0.4% Orkla, Series A (misc. symbol) 217,395 3,793 Statoil (misc. symbol) 183,070 1,453 Total Norway (Cost $3,602) 5,246 PORTUGAL 0.1% Common Stocks 0.1% Jeronimo Martins * 83,181 659 Total Portugal (Cost $673) 659 RUSSIA 0.7% Common Stocks 0.7% Lukoil ADR (USD) 144A + 39,090 2,702 YUKOS ADR (USD) 29,430 5,180 Total Russia (Cost $5,081) 7,882 SINGAPORE 0.9% Common Stocks 0.9% MobileOne Limited 3,207,000 2,278 United Overseas Bank 1,445,560 8,474 Total Singapore (Cost $11,626) 10,752 SOUTH AFRICA 0.1% Common Stocks 0.1% Nedcor 126,400 $ 1,706 Total South Africa (Cost $1,434) 1,706 SOUTH KOREA 2.4% Common Stocks 2.4% KT Corporation ADR (USD) 243,285 4,924 POSCO ADR (USD) 155,342 3,192 Samsung Electronics 40,493 10,165 Shinhan Financial 324,000 3,200 South Korea Telecom 45,260 6,296 Total South Korea (Cost $22,374) 27,777 SPAIN 3.9% Common Stocks 3.9% Banco Bilbao Vizcaya Argentaria 974,653 9,830 Banco Santander Central Hispano 1,047,363 8,244 Endesa 334,379 4,752 Gas Natural (misc. symbol) 268,070 5,140 Inditex 287,600 5,743 Repsol 189,232 2,761 Telefonica 589,987 6,537 Telefonica ADR (USD) 94,007 3,126 Total Spain (Cost $42,124) 46,133 SWEDEN 3.2% Common Stocks 3.2% Electrolux, Series B (misc. symbol) 234,305 4,400 Hennes & Mauritz, Series B (misc. symbol) 412,450 9,184 LM Ericsson, Series B * 1,624,183 1,480 Nordea (misc. symbol) 662,445 3,518 Sandvik (misc. symbol) 47,170 1,200 Securitas, Series B (misc. symbol) 1,451,135 17,044 Total Sweden (Cost $35,156) 36,826 SWITZERLAND 5.8% Common Stocks 5.8% Adecco (misc. symbol) 379,120 14,552 Credit Suisse Group * 80,720 1,930 Nestle (misc. symbol) 142,752 29,135 Roche (Participation certificates) 92,000 5,861 UBS (misc. symbol) 340,832 16,189 Total Switzerland (Cost $47,832) 67,667 TAIWAN 0.7% Common Stocks 0.7% Chinatrust Financial Holdings * 1,424,000 $ 1,113 Taiwan Semiconductor Manufacturing 4,721,101 6,487 Total Taiwan (Cost $9,515) 7,600 THAILAND 0.3% Common Stocks 0.3% Bangkok Bank (Local shares) * 2,823,000 3,460 Total Thailand (Cost $3,552) 3,460 UNITED KINGDOM 28.2% Common Stocks 28.2% Abbey National 259,068 1,842 AstraZeneca 369,577 14,513 Autonomy * 168,944 438 BG Group 625,047 2,502 BP 1,528,304 9,693 Brambles 1,109,460 3,301 Cadbury Schweppes 816,717 4,553 Carnival 95,466 2,385 Celltech * 412,881 1,687 Centrica 1,437,110 3,822 Compass 3,399,450 15,660 David S. Smith 413,685 1,069 Diageo 846,260 9,394 Electrocomponents 1,088,510 5,441 Friends Provident (misc. symbol) 458,630 721 GKN 94,050 310 GlaxoSmithKline 2,531,021 50,768 Granada 952,933 1,040 Hays 2,431,666 3,248 Hilton Group 456,940 1,118 HSBC (HKD) (misc. symbol) 248,800 2,720 Kingfisher 2,445,376 9,564 Reckitt Benckiser 120,000 2,118 Reed Elsevier 3,518,472 28,084 Rio Tinto 861,906 16,489 Royal Bank of Scotland 1,326,066 34,807 Shell Transport & Trading 3,619,190 21,695 Standard Chartered 271,600 3,032 Tesco 3,455,984 10,945 Tomkins 1,806,866 6,127 Unilever 1,242,176 $ 12,220 United Business Media 258,689 1,034 Vodafone 17,103,757 33,787 Woolworths 977,477 547 WPP Group 1,843,170 13,127 Total United Kingdom (Cost $358,840) 329,801 Short-Term investments 1.3% Money Market Funds 1.3% T. Rowe Price Reserve Investment Fund 1.30% # 15,207,403 15,207 Total Short-Term Investments (Cost $15,207) 15,207 SECURITIES LENDING COLLATERAL 26.6% Money Market Pooled Account 26.6% Investment in money market pooled account managed by JP Morgan Chase Bank, London 310,520,676 310,521 Total Securities Lending Collateral (Cost $310,521) 310,521 T. Rowe Price Institutional Foreign Equity Fund Certified Financials April 30, 2003 (Unaudited) Value - -------------------------------------------------------------------------------- In thousands Total Investments in Securities 125.3% of Net Assets (Cost $1,439,729) $ 1,464,553 Other Assets Less Liabilities Including $310,521 obligation to return securities lending collateral (295,403) NET ASSETS $ 1,169,150 --------------- Net Assets Consist of: Undistributed net investment income (loss) $ 8,891 Undistributed net realized gain (loss) (462,123) Net unrealized gain (loss) 25,304 Paid-in-capital applicable to 109,767,212 shares of $0.01 par value capital stock outstanding; 1,000,000,000 shares authorized 1,597,078 NET ASSETS $ 1,169,150 --------------- NET ASSET VALUE PER SHARE $ 10.65 --------------- # Seven-day yield * Non-income producing (misc. symbol) All or a portion of this security is on loan at April 30, 2003-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 $2,702,000 and represents 0.2% of net assets 144A Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may be resold in transactions exempt from registration only to qualified institutional buyers-total of such securities at period-end amounts to $2,702,000 and represents 0.2% of net assets ADR American Depository Receipts FDR Fiduciary Depository Receipt HKD Hong Kong dollar USD United States dollar The accompanying notes are an integral part of these financial statements. Statement of Operations T. Rowe Price Institutional Foreign Equity Fund Certified Financials (Unaudited) In thousands 6 Months Ended 4/30/03 Investment Income (Loss) Income Dividend (net of foreign taxes of $1,829) $ 13,083 Securities lending 375 Interest (net of foreign taxes of $2) 179 Total income 13,637 Expenses Investment management 3,950 Custody and accounting 258 Registration 28 Legal and audit 20 Shareholder servicing 6 Directors 5 Prospectus and shareholder reports 2 Total expenses 4,269 Net investment income (loss) 9,368 Realized and Unrealized Gain (Loss) Net realized gain (loss) Securities (42,216) Foreign currency transactions 841 Net realized gain (loss) (41,375) Change in net unrealized gain (loss) Securities 50,065 Other assets and liabilities denominated in foreign currencies 385 Change in net unrealized gain (loss) 50,450 Net realized and unrealized gain (loss) 9,075 INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS $ 18,443 ---------- The accompanying notes are an integral part of these financial statements. Statement of Changes in Net Assets T. Rowe Price Institutional Foreign Equity Fund Certified Financials (Unaudited) In thousands 6 Months Year Ended Ended 4/30/03 10/31/02 Increase (Decrease) in Net Assets Operations Net investment income (loss) $ 9,368 $ 16,774 Net realized gain (loss) (41,375) (211,536) Change in net unrealized gain (loss) 50,450 28,378 Increase (decrease) in net assets from operations 18,443 (166,384) Distributions to shareholders Net investment income (16,128) (58,733) Net realized gain (2,150) -- Decrease in net assets from distributions (18,278) (58,733) Capital share transactions * Shares sold 143,457 208,478 Distributions reinvested 14,774 43,452 Shares redeemed (157,376) (762,108) Increase (decrease) in net assets from capital share transactions 855 (510,178) Net Assets Increase (decrease) during period 1,020 (735,295) Beginning of period 1,168,130 1,903,425 End of period $ 1,169,150 $ 1,168,130 - -------------------------------------------------------------------------------- *Share information Shares sold 13,723 17,245 Distributions reinvested 1,413 3,342 Shares redeemed (15,090) (60,713) Increase (decrease) in shares outstanding 46 (40,126) The accompanying notes are an integral part of these financial statements. Notes to Financial Statements T. Rowe Price Institutional Foreign Equity Fund Certified Financials April 30, 2003 (Unaudited) NOTE 1 - SIGNIFICANT ACCOUNTING POLICIES T. Rowe Price Institutional International Funds, Inc. (the corporation) is registered under the Investment Company Act of 1940 (the 1940 Act). The Institutional Foreign Equity Fund (the fund), a diversified, open-end management investment company, is one of the portfolios established by the corporation and commenced operations on September 7, 1989. The fund seeks long-term growth of capital through investments primarily in the common stocks of established, non-U.S. 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 Investments are valued 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. Investments in mutual funds are valued at the closing net asset value per share of the mutual fund 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 or under the supervision of the officers of the fund, as authorized by the Board of Directors. Most foreign markets close before the NYSE. Developments that could affect the values of securities that occur between the close of a foreign market and the close of the NYSE normally will not be reflected in security valuations. However, if such developments are so significant that they will, in the judgment of the officers of the fund, clearly and materially affect the value of securities, the previous closing prices may be adjusted to reflect the fair value of the securities as of the close of the NYSE, as determined in good faith by or under the supervision of the officers of the fund, as authorized by the 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 such gains and losses. Expenses Paid Indirectly Credits earned on temporarily uninvested cash balances at the custodian are used to reduce the fund's custody charges. Other Income and expenses are recorded on the accrual basis. Investment transactions are accounted for on the trade date. Realized gains and losses are reported on the identified cost basis. Dividend income and distributions to shareholders are recorded by the fund on the ex-dividend date. 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. Securities Lending The fund lends its securities to approved brokers to earn additional income. It receives as collateral cash and U.S. government securities valued at 102% to 105% of the value of the securities on loan. Cash collateral is invested in a money market pooled account managed by the fund's lending agent in accordance with investment guidelines approved by fund management. Collateral is maintained over the life of the loan in an amount not less than the value of loaned securities, as determined at the close of fund business each day; any additional collateral required due to changes in security values is delivered to the fund the next business day. Although risk is mitigated by the collateral, the fund could experience a delay in recovering its securities and a possible loss of income or value if the borrower fails to return the securities. Securities lending revenue recognized by the fund consists of earnings on invested collateral and borrowing fees, net of any rebates to the borrower and compensation to the lending agent. At April 30, 2003, the value of loaned securities was $299,667,000; aggregate collateral consisted of $310,521,000 in the money market pooled account. Other Purchases and sales of portfolio securities, other than short-term securities, aggregated $123,123,000 and $131,777,000, respectively, for the six months ended April 30, 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 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 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. Temporary differences are not adjusted. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of April 30, 2003. The fund intends to retain realized gains to the extent of available capital loss carryforwards. As of October 31, 2002, the fund had $420,480,000 of unused capital loss carryforwards, of which $206,390,000 expire in 2009, and $214,090,000 expire in 2010. At April 30, 2003, the cost of investments for federal income tax purposes was substantially the same as for financial reporting and totaled $1,439,729,000. Net unrealized gain aggregated $25,304,000 at period-end, of which $229,300,000 related to appreciated investments and $203,996,000 related to depreciated investments. NOTE 4 - FOREIGN TAXES The fund is subject to foreign income taxes imposed by certain countries in which it invests. Foreign income taxes are accrued by the fund as a reduction of income. Gains realized upon disposition of Indian securities held by the fund are subject to capital gains tax in India, payable prior to repatriation of sale proceeds. The tax is computed on net realized gains, and realized losses in excess of gains may be carried forward eight years to offset future gains. In addition, the fund accrues a deferred tax liability for net unrealized gains on Indian securities. NOTE 5 - RELATED PARTY TRANSACTIONS The fund is managed by T. Rowe Price International, Inc. (the manager), a wholly owned subsidiary of T. Rowe Price Associates, Inc. (Price Associates), which is wholly owned by T. Rowe Price Group, Inc. The investment management agreement between the fund and the manager provides for an annual investment management fee equal to 0.70% of the fund's average daily net assets. The fee is computed daily and paid monthly. At April 30, 2003, investment management fee payable totaled $648,000. In addition, the fund has entered into service agreements with Price Associates and a wholly owned subsidiary 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(Y)s transfer and dividend disbursing agent. Expenses incurred pursuant to these service agreements totaled $60,000 for the six months ended April 30, 2003, of which $9,000 was payable at period-end. The fund may invest in the T. Rowe Price Reserve Investment Fund and 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. Distributions from the Reserve Funds to the fund for the six months ended April 30, 2003, totaled $102,000 and are reflected as interest income in the accompanying Statement of Operations. 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) At the date of filing this Form N-CSR, the registrant's Principal Executive Officer and Principal Financial Officer are aware of no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. 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 Institutional International Funds, Inc. By /s/ James S. Riepe James S. Riepe Principal Executive Officer Date June 12, 2003 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 June 12, 2003 By /s/ Joseph A. Carrier Joseph A. Carrier Principal Financial Officer Date June 12, 2003