<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
<Table>
Investment Company Act file number: 811-07809
Exact name of registrant as specified in charter: Prudential U.S. Emerging Growth Fund
Address of principal executive offices: Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Name and address of agent for service: Ms. Maria Master
Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Registrant's telephone number, including area code: 973-367-3028
Date of fiscal year end: 10/31/03
Date of reporting period: 04/30/03
</Table>
<Page>
Item 1 -- Reports to Stockholders
<Page>
SEMIANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
U.S. EMERGING GROWTH FUND, INC.
FUND TYPE
Small- to mid-capitalization stock
OBJECTIVE
Long-term capital appreciation
This report is not authorized for distribution
to prospective investors unless preceded or
accompanied by a current prospectus.
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and are subject to
change thereafter.
Prudential Financial is a service mark of
The Prudential Insurance Company of America,
Newark, NJ, and its affiliates. PRUDENTIAL FINANCIAL (LOGO)
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Prudential U.S. Emerging Growth Fund, Inc.
Performance at a Glance
FUND OBJECTIVE
The Prudential U.S. Emerging Growth Fund (the Fund)
seeks to provide long-term capital appreciation.
There can be no assurance that the Fund will achieve
its investment objective.
Cumulative Total Returns1 As of 4/30/03
<Table>
<Caption>
Six Months One Year Five Years Since Inception2
Class A 11.18% -16.99% 5.06% 45.44%
Class B 10.83 -17.54 1.19 38.65
Class C 10.83 -17.54 1.19 38.65
Class Z 11.40 -16.74 6.34 47.74
S&P MidCap 400 Index3 3.98 -17.51 23.72 84.96
Russell Midcap Growth Index4 8.19 -16.67 -14.14 19.38
Lipper Mid-Cap Growth Funds Avg.5 4.04 -19.73 -11.90 17.88
</Table>
Average Annual Total Returns1 As of 3/31/03
One Year Five Years Since Inception2
Class A -32.32% -1.71% 3.59%
Class B -32.82 -1.62 3.65
Class C -30.69 -1.66 3.48
Class Z -28.54 -0.46 4.71
S&P MidCap 400 Index3 -23.45 3.27 9.11
Russell Midcap Growth Index4 -26.11 -4.01 1.80
Lipper Mid-Cap Growth Funds Avg.5 -27.47 -4.20 0.87
Past performance is not indicative of future results.
Principal value and investment return will fluctuate
so that an investor's shares, when redeemed, may be
worth more or less than their original cost. 1Source:
Prudential Investments LLC and Lipper Inc. The
cumulative total returns do not take into account
applicable sales charges. The average annual total
returns do take into account applicable sales
charges. Without the distribution and service (12b-1)
fee waiver of 0.05% for Class A shares, the returns
would have been lower. The Fund charges a maximum
front-end sales charge of 5% for Class A shares in
most circumstances, and a 12b-1 fee of up to 0.30%
annually. In some circumstances, Class A shares may
not be subject to a front-end sales charge, but may
be subject to a 1% contingent deferred sales charge
(CDSC) for the first year. Class B shares are subject
to a declining CDSC of 5%, 4%, 3%, 2%, 1%, and 1% for
the first six years respectively after purchase, and
a 12b-1 fee of 1.00% annually. Approximately seven
years after purchase, Class B shares will
automatically convert to Class A shares on a
quarterly basis. Class C shares are subject to a
front-end sales charge of 1%, a CDSC of 1% for shares
redeemed within 18 months of purchase, and a 12b-1
fee of 1.00% annually. Class Z shares are not subject
to a sales charge or 12b-1 fee. The returns in the
tables above do not reflect the deduction of taxes
that a shareholder would pay on fund distributions or
following the redemption of fund shares. 2Inception
date: 12/31/96. 3The Standard & Poor's MidCap 400
Stock Index (S&P MidCap 400 Index) is an unmanaged
index of 400 domestic stocks chosen for market size,
liquidity, and industry group representation. It
gives
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www.prudential.com (800) 225-1852
Semiannual Report April 30, 2003
a broad look at how mid-cap stock prices have
performed in the United States. 4The Russell Midcap
Growth Index is an unmanaged index that measures the
performance of those Russell MidCap companies with
higher price-to-book ratios and higher forecasted
growth values. Investors cannot invest directly in an
index. 5The Lipper Mid-Cap Growth Funds Average
(Lipper Average) represents returns based on an
average return of all funds in the Lipper Mid-Cap
Growth Funds category for the periods noted. Funds
in the Lipper Average invest at least 75% of
their equity assets in companies with market
capitalizations (on a three-year weighted basis) less
than 300% of the dollar-weighted median market
capitalization of the middle 1,000 securities of the
S&P SuperComposite 1500 Index. Mid-cap growth funds
typically have an above-average price/earnings ratio,
price-to-book ratio, and three-year sales-per-share
growth value compared to the S&P MidCap 400 Index.
The returns for the S&P MidCap 400 Index, Russell
Midcap Growth Index, and the Lipper Average would be
lower if they included the effects of sales charges,
operating expenses of a mutual fund, or taxes.
Returns for the Lipper Average reflect the deduction
of operating expenses of a mutual fund, but not sales
charges or taxes.
<Page>
PRUDENTIAL FINANCIAL (LOGO) June 16, 2003
DEAR SHAREHOLDER,
After fighting in Iraq ended in April 2003, U.S.
consumer confidence rose significantly and a more
optimistic tone pervaded the financial markets.
Major stock market indexes have continued to
improve, even as the long-standing bond
market rally persisted. While we welcome these
developments, it is important to remember that a wise
investor plans for tomorrow's needs today regardless
of the direction of financial markets.
Whether you are investing for your retirement, your
children's education, or for a new home for your
family, Prudential mutual funds offer advantages that
may help you reach your financial goals. Experienced
asset managers, working closely with research
analysts, employ time-tested investment processes
that were honed under a variety of market conditions.
We recommend that you consult a financial
professional who can help you strike the right
balance between your desire to obtain a particular
return from an investment and your tolerance for risk.
I was named president of the Prudential U.S. Emerging
Growth Fund, Inc. in March 2003. On behalf of the
Prudential Financial family, I would like to thank
you for your continued confidence in Prudential
mutual funds. We look forward to serving your future
investment needs.
Sincerely,
Judy A. Rice, President
Prudential U.S. Emerging Growth Fund, Inc.
2
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Prudential U.S. Emerging Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited)
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 99.7%
Common Stocks
- -------------------------------------------------------------------------------------
Biotechnology 6.2%
105,600 Affymetrix, Inc.(a) $ 1,958,880
94,400 Cephalon, Inc.(a) 3,855,296
89,900 Gilead Sciences, Inc.(a)(b) 4,147,986
222,700 IDEC Pharmaceuticals Corp.(a)(b) 7,293,425
66,405 MedImmune, Inc.(a) 2,342,104
463,900 Protein Design Labs, Inc.(a) 4,606,527
--------------
24,204,218
- -------------------------------------------------------------------------------------
Commercial Services & Supplies 9.6%
237,600 CheckFree Corp.(a)(b) 6,550,632
502,900 Concord EFS, Inc.(a) 6,955,107
163,300 DST Systems, Inc.(a) 5,013,310
113,300 Dun & Bradstreet Corp.(a) 4,282,740
105,000 Herman Miller, Inc. 1,836,450
161,595 Hudson Highland Group, Inc.(a)(b) 2,396,616
41,300 Manpower, Inc. 1,357,944
169,500 NDCHealth Corp. 3,262,875
136,600 Paychex, Inc. 4,253,724
29,900 Weight Watchers International, Inc.(a) 1,404,702
--------------
37,314,100
- -------------------------------------------------------------------------------------
Communications Equipment 1.9%
710,600 ADC Telecommunications, Inc.(a) 1,696,913
994,900 Brocade Communications Systems, Inc.(a) 5,740,573
--------------
7,437,486
- -------------------------------------------------------------------------------------
Computers & Peripherals 0.5%
95,000 Intergraph Corp.(a) 1,938,000
- -------------------------------------------------------------------------------------
Diversified Financials 3.9%
233,600 Investment Technology Group, Inc.(a) 3,338,144
142,200 Merrill Lynch & Co., Inc. 5,837,310
189,600 T. Rowe Price Group, Inc. 5,786,592
--------------
14,962,046
</Table>
See Notes to Financial Statements 3
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
Electronic Equipment & Instruments 5.3%
424,000 Agilent Technologies, Inc.(a) $ 6,792,480
845,600 Symbol Technologies, Inc.(b) 9,242,408
184,500 Tech Data Corp.(a) 4,428,000
--------------
20,462,888
- -------------------------------------------------------------------------------------
Energy Equipment & Services 6.8%
193,700 BJ Services Co.(a) 7,071,987
194,900 ENSCO International, Inc. 4,950,460
191,200 Patterson-UTI Energy, Inc.(a) 6,326,808
50,000 Smith International, Inc.(a)(b) 1,778,000
155,100 Weatherford International, Ltd.(a)(b) 6,239,673
--------------
26,366,928
- -------------------------------------------------------------------------------------
Healthcare Equipment & Supplies 0.3%
74,700 Applera Corp.-Applied Biosystems Group 1,309,491
- -------------------------------------------------------------------------------------
Healthcare Providers & Services 5.1%
305,400 Caremark Rx, Inc.(a) 6,080,514
69,800 Express Scripts, Inc.(a) 4,115,408
995,700 WebMD Corp.(a)(b) 9,598,548
--------------
19,794,470
- -------------------------------------------------------------------------------------
Hotels, Restaurants & Leisure 1.9%
93,600 GTECH Holdings Corp.(a) 3,151,512
87,900 Hilton Hotels Corp.(b) 1,170,828
112,200 Starwood Hotels & Resorts Worldwide, Inc. 3,011,448
--------------
7,333,788
- -------------------------------------------------------------------------------------
Household Durables 1.2%
72,300 Harman International Industries, Inc. 4,814,457
- -------------------------------------------------------------------------------------
Internet & Catalog Retail 2.6%
157,900 Amazon.com, Inc.(a)(b) 4,526,993
20,300 eBay, Inc.(a)(b) 1,883,231
120,574 USA Interactive, Inc.(a)(b) 3,611,191
--------------
10,021,415
</Table>
4 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
Internet Software & Services 6.9%
120,300 Check Point Software Technologies Ltd.(a) $ 1,892,319
519,800 DoubleClick, Inc.(a) 4,470,280
79,100 Expedia, Inc. (Class A)(a)(b) 4,571,189
64,800 Hotels.com (Class A)(a)(b) 4,639,680
636,200 RealNetworks, Inc.(a) 3,263,706
650,500 VeriSign, Inc.(a) 8,079,210
--------------
26,916,384
- -------------------------------------------------------------------------------------
IT Consulting & Services 1.4%
106,600 Accenture Ltd. (Class A)(a) 1,707,732
165,400 SunGuard Data Systems, Inc.(a) 3,556,100
--------------
5,263,832
- -------------------------------------------------------------------------------------
Media 15.2%
72,200 Clear Channel Communications, Inc.(a) 2,823,742
408,000 Emmis Communications Corp. (Class A)(a) 7,739,760
1,908,200 Gemstar-TV Guide International, Inc.(a) 7,651,882
357,400 General Motors Corp. (Class H)(a) 4,217,320
285,400 Lin TV Corp. (Class A)(a) 6,823,914
1,067,900 Monster Worldwide, Inc.(a) 17,908,683
85,600 Omnicom Group, Inc. 5,298,640
181,000 Pearson PLC (ADR)(b) 1,536,690
170,300 Univision Communications, Inc. (Class A)(a)(b) 5,156,684
--------------
59,157,315
- -------------------------------------------------------------------------------------
Pharmaceuticals 9.2%
60,400 Allergan, Inc. 4,243,100
154,400 Andrx Corp.(a) 2,492,016
165,200 Antigenics, Inc.(a)(b) 1,625,568
90,250 Barr Laboratories, Inc.(a)(b) 5,017,900
121,700 King Pharmaceuticals, Inc.(a) 1,534,637
67,500 Medicis Pharmaceutical Corp. (Class A)(a)(b) 3,890,700
173,400 Mylan Laboratories, Inc. 4,902,018
222,800 Sepracor, Inc.(a) 4,266,620
262,100 Watson Pharmaceuticals, Inc.(a) 7,619,247
--------------
35,591,806
</Table>
See Notes to Financial Statements 5
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
Semiconductor Equipment & Products 9.3%
202,900 Intel Corp. $ 3,733,360
112,400 KLA-Tencor Corp.(a)(b) 4,608,400
668,800 Lattice Semiconductor Corp.(a) 5,805,184
128,200 Linear Technology Corp. 4,419,054
135,200 Novellus Systems, Inc.(a) 3,791,008
401,200 Semtech Corp.(a) 6,379,080
277,800 Xilinx, Inc.(a) 7,520,046
--------------
36,256,132
- -------------------------------------------------------------------------------------
Software 8.7%
330,300 Amdocs Ltd.(a) 5,833,098
519,900 Ascential Software Corp.(a) 1,996,416
236,800 Autodesk, Inc. 3,684,608
477,200 BEA Systems, Inc.(a)(b) 5,110,812
271,700 Cadence Design Systems, Inc.(a) 3,105,531
453,700 Parametric Technology Corp.(a) 1,497,210
136,200 Reynolds & Reynolds Co. (Class A) 3,923,922
88,100 Synopsys, Inc.(a) 4,285,184
166,100 THQ, Inc.(a)(b) 2,346,993
405,800 TIBCO Software, Inc.(a) 2,000,594
--------------
33,784,368
- -------------------------------------------------------------------------------------
Specialty Retail 2.7%
80,000 Advance Auto Parts, Inc.(a) 3,979,200
110,200 CarMax, Inc.(a) 2,330,730
220,000 Staples, Inc.(a) 4,188,800
--------------
10,498,730
- -------------------------------------------------------------------------------------
Wireless Telecommunication Services 1.0%
604,800 AT&T Wireless Services, Inc.(a)(b) 3,907,008
--------------
Total long-term investments (cost $342,535,852) 387,334,862
--------------
</Table>
6 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 17.5%
- -------------------------------------------------------------------------------------
Investment Company
68,178,595 Prudential Core Investment Fund-
Taxable Money Market Series(c)
(cost $68,178,595; Note 3) $ 68,178,595
--------------
Total Investments 117.2%
(cost $410,714,447; Note 5) 455,513,457
Liabilities in excess of other assets (17.2%) (66,792,109)
--------------
Net Assets 100% $ 388,721,348
--------------
--------------
</Table>
- ------------------------------
(a) Non-income producing security.
(b) Security, or portion thereof, on loan, see Note 4.
(c) Represents security, or a portion thereof, purchased with cash collateral
received for securities on loan.
ADR--American Depositary Receipt.
PLC--Public Limited Company (British Company).
See Notes to Financial Statements 7
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Statement of Assets and Liabilities (Unaudited)
<Table>
<Caption>
April 30, 2003
- ---------------------------------------------------------------------------------------
ASSETS
Investments at value, including securities on loan of
$57,642,602 (cost $410,714,447) $ 455,513,457
Cash 38,700
Receivable for investments sold 6,765,566
Receivable for Fund shares sold 628,724
Dividends and interest receivable 64,843
Receivable for securities lending income 62,595
Other assets 1,457
--------------
Total assets 463,075,342
--------------
LIABILITIES
Payable to broker for collateral for securities on loan 60,092,215
Payable for investments purchased 12,248,433
Payable for Fund shares reacquired 1,010,874
Accrued expenses and other liabilities 632,065
Management fee payable 180,359
Distribution fee payable 152,853
Securities lending rebate payable 33,240
Foreign withholding tax payable 3,955
--------------
Total liabilities 74,353,994
--------------
NET ASSETS $ 388,721,348
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 35,914
Paid-in capital in excess of par 760,196,052
--------------
760,231,966
Net investment loss (2,460,344)
Accumulated net realized loss on investments (413,849,284)
Net unrealized appreciation on investments 44,799,010
--------------
Net assets, April 30, 2003 $ 388,721,348
--------------
--------------
</Table>
8 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Statement of Assets and Liabilities (Unaudited) Cont'd.
<Table>
<Caption>
April 30, 2003
- ----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share
($155,402,460 / 14,070,852 shares of common stock issued
and outstanding) $11.04
Maximum sales charge (5% of offering price) .58
--------------
Maximum offering price to public $11.62
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($130,033,241 / 12,460,070 shares of common stock issued
and outstanding) $10.44
--------------
--------------
Class C:
Net asset value and redemption price per share
($28,428,327 / 2,723,972 shares of common stock issued and
outstanding) $10.44
Sales charge (1% of offering price) .11
--------------
Offering price to public $10.55
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($74,857,320 / 6,659,422 shares of common stock issued and
outstanding) $11.24
--------------
--------------
</Table>
See Notes to Financial Statements 9
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Statement of Operations (Unaudited)
<Table>
<Caption>
Six Months
Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
NET INVESTMENT LOSS
Income
Dividends (net of foreign withholding taxes of $22,547) $ 478,149
Interest 85,339
Income from securities loaned, net 95,377
--------------
Total income 658,865
--------------
Expenses
Management fee 1,091,388
Distribution fee--Class A 179,838
Distribution fee--Class B 626,148
Distribution fee--Class C 136,863
Transfer agent's fees and expenses 826,000
Reports to shareholders 111,000
Custodian's fees and expenses 59,000
Registration fee 37,000
Legal fees 19,000
Audit fees 18,000
Directors' fees 9,000
Miscellaneous 5,972
--------------
Total expenses 3,119,209
--------------
Net investment loss (2,460,344)
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain on:
Investment transactions 647,766
Foreign currency transactions 2,661
Options written 62,130
--------------
712,557
Net change in unrealized appreciation (depreciation) on
investments 40,465,266
--------------
Net gain on investments and foreign currencies 41,177,823
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 38,717,479
--------------
--------------
</Table>
10 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Statement of Changes in Net Assets (Unaudited)
<Table>
<Caption>
Six Months Year
Ended Ended
April 30, 2003 October 31, 2002
- ------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment loss $ (2,460,344) $ (6,398,427)
Net realized gain (loss) on investments and
foreign currency transactions 712,557 (192,123,814)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currencies 40,465,266 66,013,680
-------------- ----------------
Net increase (decrease) in net assets
resulting from operations 38,717,479 (132,508,561)
-------------- ----------------
Fund share transactions (net of share
conversion)
(Note 6)
Net proceeds from shares sold 46,310,425 200,378,149
Cost of shares reacquired (62,632,075) (219,246,525)
-------------- ----------------
Net decrease in net assets from Fund share
transactions (16,321,650) (18,868,376)
-------------- ----------------
Total increase (decrease) 22,395,829 (151,376,937)
NET ASSETS
Beginning of period 366,325,519 517,702,456
-------------- ----------------
End of period $ 388,721,348 $ 366,325,519
-------------- ----------------
-------------- ----------------
</Table>
See Notes to Financial Statements 11
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Notes to Financial Statements (Unaudited)
Prudential U.S. Emerging Growth Fund, Inc. (the 'Fund'), is registered
under the Investment Company Act of 1940 as a diversified, open-end, management
investment company. The Fund was incorporated in Maryland on August 23, 1996.
The Fund issued 2,500 shares each of Class A, Class B, Class C and Class Z
common stock for $100,000 on October 21, 1996 to Prudential Investments, LLC,
('PI' or 'Manager'). Investment operations commenced on December 31, 1996.
The Fund's investment objective is to achieve long-term capital
appreciation. It invests primarily in equity securities of small and
medium-sized U.S. companies, which will generally have a market capitalization
less than the largest capitalization of the Standard & Poor's Mid-Cap 400 Stock
Index, with the potential for above-average growth.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Securities Valuation: Securities traded on an exchange and NASDAQ
National Market securities are valued at the last closing price on such exchange
on the day of valuation or, if there was no sale on such day, at the mean
between the last reported bid and asked prices or at the last bid price on such
day in the absence of an asked price. Securities traded in the over-the-counter
market, including securities listed on exchanges whose primary market is
believed to be over-the-counter, are valued at market value using prices
provided by an independent pricing agent or principal market maker. Securities
for which reliable market quotations are not readily available or for which the
pricing agent or market maker does not provide a valuation or methodology, or
provides a valuation or methodology that, in the judgment of the subadviser,
does not represent fair value, are valued at fair value by a Valuation Committee
appointed by the Board of Trustees, in consultation with the Manager or
subadviser.
Investments in mutual funds are valued at the net asset value as of the
close of the New York Stock Exchange on the date of valuation.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, which approximates market value.
Repurchase Agreements: In connection with transactions in repurchase
agreements with United States financial institutions, it is the Fund's policy
that its custodian or designated subcustodians under triparty repurchase
agreements, as the case may be, take possession of the underlying collateral
securities, the value of which
12
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
exceeds the principal amount of the repurchase transaction, including accrued
interest. To the extent that any repurchase transaction exceeds one business
day, the value of the collateral is marked-to-market on a daily basis to ensure
the adequacy of the collateral. If the seller defaults, and the value of the
collateral declines, or if bankruptcy proceedings are commenced with respect to
the seller of the security, realization of the collateral by the Fund may be
delayed or limited.
Foreign Currency Translation: The books and records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(i) market value of investment securities, other assets and
liabilities--at the closing daily rate of exchange.
(ii) purchases and sales of investment securities, income and expenses--at
the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange
rates and market values at the close of the period, the Fund does not isolate
that portion of the results of operations arising as a result of changes in the
foreign exchange rates from the fluctuations arising from changes in the market
prices of long-term securities held at the end of the period. Similarly, the
Fund does not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of portfolio securities
sold during the period. Accordingly, these realized foreign currency gains
(losses) are included in the reported net realized gains (losses) on investment
transactions.
Net realized gains (losses) on foreign currency transactions represent net
foreign exchange gains or losses from the holding of foreign currencies,
currency gains (losses) realized between the trade and settlement dates on
security transactions, and the difference between the amounts of dividends,
interest and foreign taxes recorded on the Fund's books and the U.S. dollar
equivalent amounts actually received or paid. Net unrealized currency gains or
losses from valuing foreign currency denominated assets and liabilities (other
than investments) at period end exchange rates are reflected as a component of
net unrealized appreciation (depreciation) on investments and foreign
currencies.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the possibility of political and economic
instability or the level of governmental supervision and regulation of foreign
securities markets.
Securities Lending: The Fund may lend its securities to broker-dealers,
qualified banks and certain institutional investors. The loans are secured by
collateral in an
13
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
amount equal to at least the market value at all times of the securities loaned
plus any accrued interest and dividends. The Fund may bear the risk of delay in
recovery of, or even loss of rights in, the securities loaned should the
borrower of the securities fail financially. The Fund receives compensation, net
of any rebate, for lending its securities in the form of interest on the
securities loaned, and any gain or loss in the market price of the securities
loaned that may occur during the term of the loan.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized and unrealized gains and
losses on sales of portfolio securities are calculated on the identified cost
basis. Dividend income is recorded on the ex-dividend date; interest income is
recorded on the accrual basis. Expenses are recorded on the accrual basis which
may require the use of certain estimates by management.
Net investment income or loss (other than distribution fees) and
unrealized and realized gains or losses are allocated daily to each class of
shares based upon the relative proportion of net assets of each class at the
beginning of the day.
Dividends and Distributions: Distributions from net investment income
and net capital gains, if any, are made annually. Distributions are recorded on
the ex-dividend date. Income distributions and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles.
Taxes: It is the Fund's policy to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its taxable net investment income and capital gains, if any, to its
shareholders. Therefore, no federal income tax provision is required.
Withholding taxes on foreign dividends have been provided for in
accordance with the Fund's understanding of the applicable country's tax rules
and rates.
Note 2. Agreements
The Fund has a management agreement with PI. Pursuant to a subadvisory agreement
between PI and Jennison Associates LLC ('Jennison' or 'Subadviser'), Jennison
furnishes investment advisory services in connection with the management of the
Fund. Under the subadvisory agreement, Jennison, subject to the supervision of
PI, is responsible for managing the assets of the Fund in accordance with its
investment objective and policies. PI pays for the services of Jennison, the
cost of compensation of officers of the Fund, occupancy and certain clerical and
bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
14
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
The management fee paid to PI is computed daily and payable monthly, at an
annual rate of .60 of 1% of the Fund's average daily net assets up to $1 billion
and .55 of 1% of the average daily net assets in excess of $1 billion.
The Fund has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS'), which acts as the distributor of the Class A,
Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for
distributing and servicing the Fund's Class A, Class B and Class C shares
pursuant to plans of distribution (the 'Class A, B and C Plans'), regardless of
expenses actually incurred by them. The distribution fees are accrued daily and
payable monthly. No distribution or service fees are paid to PIMS as distributor
for the Class Z shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1%
of the average daily net assets of the Class A, B and C shares, respectively.
Such expenses under the Plans were charged at an annual rate of .25 of 1%, 1%
and 1% of the average daily net assets of the Class A, B and C shares,
respectively, for the six months ended April 30, 2003.
PIMS has advised the Fund that it received approximately $38,800 and
$6,000 in front-end sales charges resulting from sales of Class A shares and
Class C shares, respectively, during the six months ended April 30, 2003. From
these fees, PIMS paid such sales charges to affiliated broker-dealers, which in
turn paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the six months ended April 30, 2003, it
received approximately $151,000 and $2,600 in contingent deferred sales charges
imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PI, PIMS and Jennison are indirect, wholly-owned subsidiaries of
Prudential Financial, Inc. ('Prudential').
The Fund, along with other affiliated registered investment companies (the
'Funds'), is a party to a syndicated credit agreement ('SCA') with a group of
banks. For the six months ended April 30, 2003, the SCA provides for a
commitment of $500 million and allows the Funds to increase the commitment to $1
billion, if necessary. Interest on any borrowings will be at market rates. The
Funds pay a commitment fee of .08 of 1% of the unused portion of the SCA. The
commitment fee is accrued and paid quarterly on a pro rata basis by the Funds.
The purpose of the SCA is to serve as an alternative source of funding for
capital share redemptions. The expiration date of the SCA is May 2, 2003. The
Fund did not borrow any amounts pursuant to the SCA during the six months ended
April 30, 2003. On May 2, 2003, the SCA was renewed
15
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
under the same terms and conditions ('May 2003 renewal'). The expiration date of
the May 2003 renewal is April 30, 2004.
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), an affiliate of PI and an
indirect, wholly-owned subsidiary of Prudential, serves as the Fund's transfer
agent. During the six months ended April 30, 2003, the Fund incurred fees of
approximately $607,400 for the services of PMFS. As of April 30, 2003,
approximately $98,800 of such fees were due to PMFS.
The Fund pays networking fees to affiliated and unaffiliated
broker/dealers. These networking fees are payments made to broker/dealers that
clear mutual fund transactions through a national clearing system. The Fund
incurred approximately $86,200 in total networking fees, of which the amount
paid to Prudential Securities, Inc. ('PSI'), an affiliate of PI and an indirect,
wholly-owned subsidiary of Prudential was approximately $70,800 for the six
months ended April 30, 2003. As of April 30, 2003, approximately $11,200 of such
fees were due to PSI. These amounts are included in transfer agent's fees and
expenses in the Statement of Operations.
PSI is the securities lending agent for the Fund. For the six months ended
April 30, 2003, PSI has been compensated in the amount of $31,793 for these
services of which approximately $7,300 is payable at period end.
The Fund invests in the Taxable Money Market Series, a portfolio of
Prudential Core Investment Fund, pursuant to an exemptive order received from
the Securities and Exchange Commission. The Taxable Money Market Series is a
money market fund registered under the Investment Company Act of 1940, as
amended, and managed by PI. For the six months ended April 30, 2003, the Fund
earned income from the Taxable Money Market Series of approximately $85,350 and
$491,550, respectively, by investing its excess cash and collateral received
from securities lending.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 2003 were $463,892,130 and $463,045,337.
As of April 30, 2003, the Fund had securities on loan with an aggregate
market value of $57,642,602. The Fund received $60,092,215 in cash as collateral
for securities on loan which was used to purchase highly liquid short-term
investments in accordance with the Fund's securities lending procedures.
Note 5. Tax Information
For federal income tax purposes, the Fund had a capital loss carryforward at
October 31, 2002 of approximately $396,840,000 of which $193,790,000 expires in
2009
16
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
and $203,050,000 expires in 2010. Accordingly, no capital gains distributions
are expected to be paid to shareholders until net gains have been realized in
excess of such carryforward.
The United States federal income tax basis of the Fund's investments and
the net unrealized appreciation as of April 30, 2003 were as follows:
<Table>
<Caption>
Total Net
Tax Basis Unrealized
of Investments Appreciation Depreciation Appreciation
- -------------- ------------ ------------ ------------
$ 425,818,076 $ 41,991,331 $ 12,295,950 $ 29,695,381
</Table>
The difference between book basis and tax basis was primarily attributable
to deferred losses on wash sales.
Note 6. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are
sold with a front-end sales charge of up to 5%. Certain investors who purchase
$1 million or more of Class A shares are subject to a 1% contingent deferred
sales charge during the first 12 months. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending on the
period of time the shares are held. Class C shares are sold with a front-end
sales charge of 1% and a contingent deferred sales charge of 1% during the first
18 months. Class B shares will automatically convert to Class A shares on a
quarterly basis approximately seven years after purchase. A special exchange
privilege is also available for shareholders who qualify to purchase Class A
shares at net asset value. Class Z shares are not subject to any sales or
redemption charge and are offered exclusively for sale to a limited group of
investors.
There are 2 billion shares of $.001 par value common stock authorized
divided into four classes, designated Class A, Class B, Class C and Class Z,
which consists of 1 billion, 500 million, 300 million and 200 million authorized
shares, respectively. As of April 30, 2003, Prudential owned 410,940 Class Z
shares.
Transactions in shares of common stock were as follows:
<Table>
<Caption>
Class A Shares Amount
- ---------------------------------------------------------- ----------- ------------
Six months ended April 30, 2003:
Shares sold 2,143,256 $ 21,911,718
Shares reacquired (2,521,826) (25,537,818)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (378,570) (3,626,100)
Shares issued upon conversion from Class B 213,877 2,115,908
----------- ------------
Net increase (decrease) in shares outstanding (164,693) $ (1,510,192)
----------- ------------
----------- ------------
</Table>
17
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
<Table>
<Caption>
Class A Shares Amount
- ---------------------------------------------------------- ----------- ------------
Year ended October 31, 2002: 7,725,347 $102,510,765
Shares reacquired (7,689,019) (96,931,329)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion 36,328 5,579,436
Shares issued upon conversion from Class B 458,156 5,838,138
----------- ------------
Net increase (decrease) in shares outstanding 494,484 $ 11,417,574
----------- ------------
----------- ------------
<Caption>
Class B
- ----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 509,915 $ 4,955,746
Shares reacquired (1,652,490) (15,800,796)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (1,142,575) (10,845,050)
Shares reacquired upon conversion into Class A (225,988) (2,115,908)
----------- ------------
Net increase (decrease) in shares outstanding (1,368,563) $(12,960,958)
----------- ------------
----------- ------------
Year ended October 31, 2002:
Shares sold 1,710,399 $ 21,264,946
Shares reacquired (4,428,260) (50,205,316)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (2,717,861) (28,940,370)
Shares reacquired upon conversion into Class A (481,246) (5,838,138)
----------- ------------
Net increase (decrease) in shares outstanding (3,199,107) $(34,778,508)
----------- ------------
----------- ------------
<Caption>
Class C
- ----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 195,368 $ 1,879,854
Shares reacquired (506,009) (4,851,123)
----------- ------------
Net increase (decrease) in shares outstanding (310,641) $ (2,971,269)
----------- ------------
----------- ------------
Year ended October 31, 2002:
Shares sold 679,479 $ 7,976,449
Shares reacquired (1,322,832) (14,997,207)
----------- ------------
Net increase (decrease) in shares outstanding (643,353) $ (7,020,758)
----------- ------------
----------- ------------
<Caption>
Class Z
- ----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 1,698,982 $ 17,563,107
Shares reacquired (1,598,250) (16,442,338)
----------- ------------
Net increase (decrease) in shares outstanding 100,732 $ 1,120,769
----------- ------------
----------- ------------
Year ended October 31, 2002:
Shares sold 5,311,531 $ 68,625,989
Shares reacquired (4,493,213) (57,112,673)
----------- ------------
Net increase (decrease) in shares outstanding 818,318 $ 11,513,316
----------- ------------
----------- ------------
</Table>
18
<Page>
SEMI ANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
U.S. EMERGING GROWTH FUND, INC.
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited)
<Table>
<Caption>
Class A
-------------------
Six Months Ended
April 30, 2003(a)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.93
----------
Income from investment operations
Net investment loss (.05)
Net realized and unrealized gain (loss) on investment
transactions 1.16
----------
Total from investment operations 1.11
----------
Less distributions
Distributions from net realized gains --
----------
Net asset value, end of period $ 11.04
----------
----------
TOTAL RETURN(b): 11.18%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 155,402
Average net assets (000) $ 145,063
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees(d) 1.45%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.20%(c)
Net investment loss (1.09)%(c)
For Class A, B, C and Z shares:
Portfolio turnover rate 129%
</Table>
- ------------------------------
(a) Based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not
annualized.
(c) Annualized.
(d) The distributor of the Fund contractually agreed to limit its distribution
and service (12b-1) fees to .25 of 1% of the average net assets of Class A
shares.
20 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class A
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(a) 2001(a) 2000(a) 1999(a) 1998
- ----------------------------------------------------------------------------------------------------------
$ 13.15 $ 25.69 $ 19.16 $ 12.01 $ 11.92
- ---------------- ---------------- ---------------- -------- --------
(.12) (.13) (.20) (.13) (.11)
(3.10) (9.26) 8.37 7.61 .41
- ---------------- ---------------- ---------------- -------- --------
(3.22) (9.39) 8.17 7.48 .30
- ---------------- ---------------- ---------------- -------- --------
-- (3.15) (1.64) (.33) (.21)
- ---------------- ---------------- ---------------- -------- --------
$ 9.93 $ 13.15 $ 25.69 $ 19.16 $ 12.01
- ---------------- ---------------- ---------------- -------- --------
- ---------------- ---------------- ---------------- -------- --------
(22.49)% (40.13)% 44.52% 63.65% 2.63%
$141,331 $180,763 $291,800 $ 85,595 $ 32,183
$181,454 $227,650 $217,712 $ 52,984 $ 33,831
1.31% 1.21% 1.06% 1.22% 1.25%
1.06% .96% .81% .97% 1.00%
(.99)% (.75)% (.75)% (.80)% (.88)%
337% 305% 347% 153% 177%
</Table>
See Notes to Financial Statements 21
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
-------------------
Six Months Ended
April 30, 2003(a)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.42
----------
Income from investment operations
Net investment loss (.09)
Net realized and unrealized gain (loss) on investment
transactions 1.11
----------
Total from investment operations 1.02
----------
Less distributions
Distributions from net realized gains --
----------
Net asset value, end of period $ 10.44
----------
----------
TOTAL RETURN(b): 10.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 130,033
Average net assets (000) $ 126,267
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 2.20%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.20%(c)
Net investment loss (1.83)%(c)
</Table>
- ------------------------------
(a) Based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not
annualized.
(c) Annualized.
22 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(a) 2001(a) 2000(a) 1999(a) 1998
- ----------------------------------------------------------------------------------------------------------
$ 12.57 $ 24.88 $ 18.72 $ 11.83 $ 11.85
- ---------------- ---------------- ---------------- ---------------- --------
(.21) (.24) (.38) (.24) (.20)
(2.94) (8.92) 8.18 7.46 .39
- ---------------- ---------------- ---------------- ---------------- --------
(3.16) (9.16) 7.80 7.22 .19
- ---------------- ---------------- ---------------- ---------------- --------
-- (3.15) (1.64) (.33) (.21)
- ---------------- ---------------- ---------------- ---------------- --------
$ 9.42 $ 12.57 $ 24.88 $ 18.72 $ 11.83
- ---------------- ---------------- ---------------- ---------------- --------
- ---------------- ---------------- ---------------- ---------------- --------
(25.06)% (40.57)% 43.52% 62.39% 1.71%
$130,225 $214,092 $424,815 $184,955 $ 83,407
$189,651 $300,962 $382,245 $127,249 $ 86,713
2.06% 1.96% 1.81% 1.97% 2.00%
1.06% .96% .81% .97% 1.00%
(1.74)% (1.49)% (1.49)% (1.55)% (1.63)%
</Table>
See Notes to Financial Statements 23
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
-------------------
Six Months Ended
April 30, 2003(a)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 9.42
--------
Income from investment operations
Net investment loss (.09)
Net realized and unrealized gain (loss) on investment
transactions 1.11
--------
Total from investment operations 1.02
--------
Less distributions
Distributions from net realized gains on investment
transactions --
--------
Net asset value, end of period $ 10.44
--------
--------
TOTAL RETURN(b): 10.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $28,428
Average net assets (000) $27,599
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 2.20%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.20%(c)
Net investment loss (1.83)%(c)
</Table>
- ------------------------------
(a) Based on average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not
annualized.
(c) Annualized.
24 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(a) 2001(a) 2000(a) 1999(a) 1998
- ----------------------------------------------------------------------------------------------------------
$ 12.57 $ 24.88 $ 18.72 $ 11.83 $11.85
-------- -------- -------- -------- -------
(.21) (.25) (.38) (.24) (.20)
(2.94) (8.91) 8.18 7.46 .39
-------- -------- -------- -------- -------
(3.15) (9.16) 7.80 7.22 .19
-------- -------- -------- -------- -------
-- (3.15) (1.64) (.33) (.21)
-------- -------- -------- -------- -------
$ 9.42 $ 12.57 $ 24.88 $ 18.72 $11.83
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
(25.06)% (40.57)% 43.52% 62.39% 1.71%
$ 28,577 $ 46,243 $ 83,275 $ 23,578 $6,774
$ 41,014 $ 62,733 $ 65,566 $ 12,380 $6,949
2.06% 1.96% 1.81% 1.97% 2.00%
1.06% .96% .81% .97% 1.00%
(1.74)% (1.50)% (1.50)% (1.56)% (1.63)%
</Table>
See Notes to Financial Statements 25
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
-------------------
Six Months Ended
April 30, 2003(a)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 10.09
--------
Income from investment operations
Net investment loss (.04)
Net realized and unrealized gain (loss) on investment
transactions 1.19
--------
Total from investment operations 1.15
--------
Less distributions
Distributions from net realized gains on investment
transactions --
--------
Net asset value, end of period $ 11.24
--------
--------
TOTAL RETURN(b): 11.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $74,857
Average net assets (000) $67,881
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 1.20%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.20%(c)
Net investment loss (.83)%(c)
</Table>
- ------------------------------
(a) Based on average shares outstanding during the period.
(b) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total returns for periods of less than a
full year are not annualized.
(c) Annualized.
26 See Notes to Financial Statements
<Page>
Prudential U.S. Emerging Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(a) 2001(a) 2000(a) 1999(a) 1998
- ----------------------------------------------------------------------------------------------------------
$ 13.34 $ 25.94 $ 19.28 $ 12.06 $11.93
-------- -------- -------- -------- -------
(.09) (.09) (.13) (.09) (.04)
(3.16) (9.36) 8.43 7.64 .38
-------- -------- -------- -------- -------
(3.25) (9.45) 8.30 7.55 .34
-------- -------- -------- -------- -------
-- (3.15) (1.64) (.33) (.21)
-------- -------- -------- -------- -------
$ 10.09 $ 13.34 $ 25.94 $ 19.28 $12.06
-------- -------- -------- -------- -------
-------- -------- -------- -------- -------
(24.36)% (39.95)% 44.95% 63.97% 2.97%
$ 66,193 $ 76,604 $ 76,607 $ 19,029 $2,439
$ 79,868 $ 80,674 $ 52,755 $ 7,796 $1,283
1.06% .96% .81% .97% 1.00%
1.06% .96% .81% .97% 1.00%
(.74)% (.54)% (.51)% (.56)% (.63)%
</Table>
See Notes to Financial Statements 27
<Page>
This Page Intentionally Left Blank
<Page>
www.prudential.com (800) 225-1852
FOR MORE INFORMATION
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Directors
Saul K. Fenster
Delayne Dedrick Gold
Robert F. Gunia
Douglas H. McCorkindale
W. Scott McDonald, Jr.
Thomas T. Mooney
Stephen P. Munn
David R. Odenath, Jr.
Richard A. Redeker
Judy A. Rice
Robin B. Smith
Louis A. Weil, III
Clay T. Whitehead
Officers
Judy A. Rice, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Marguerite E.H. Morrison, Chief Legal Officer
and Assistant Secretary
Maria G. Master, Secretary
Maryanne Ryan, Anti-Money Laundering
Compliance Officer
Manager
Prudential Investments LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
Jennison Associates LLC
466 Lexington Avenue
New York, NY 10017
Distributor
Prudential Investment Management Services LLC
Gateway Center Three, 14th Floor
Newark, NJ 07102-4077
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
PO Box 8098
Philadelphia, PA 19101
Independent Auditors
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell LLP
124 Broad Street
New York, NY 10004-2498
Fund Symbols Nasdaq CUSIP
- ------------ ------ -----
Class A PEEAX 74438N106
Class B PEEBX 74438N205
Class C PEGCX 74438N304
Class Z PEGZX 74438N403
The views expressed in this report and
information about the Fund's portfolio holdings
are for the period covered by this report and
are subject to change thereafter.
The accompanying financial statements as of
April 30, 2003, were not audited and, accordingly,
no auditor's opinion is expressed on them.
Mutual funds are not insured by the FDIC or any
federal government agency, are not a deposit of or
guaranteed by any bank or any bank affiliate, and may
lose value.
<Page>
PRUDENTIAL FINANCIAL (LOGO)
Fund Symbols Nasdaq CUSIP
- ------------ ------ -----
Class A PEEAX 74438N106
Class B PEEBX 74438N205
Class C PEGCX 74438N304
Class Z PEGZX 74438N403
MF173E2 IFS-A080880
<Page>
Item 2 -- Code of Ethics -- Not required in this filing
Item 3 -- Audit Committee Financial Expert -- Not required in this filing
Item 4 -- Principal Accountant Fees and Services -- Not required in this
filing
Item 5 -- Reserved
Item 6 -- Reserved
Item 7 -- Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies -- Not required in this filing
Item 8 -- Reserved
Item 9 -- Controls and Procedures
(a) It is the conclusion of the registrant's principal executive
officer and principal financial officer that the effectiveness of
the registrant's current disclosure controls and procedures (such
disclosure controls and procedures having been evaluated within
90 days of the date of this filing) provide reasonable assurance
that the information required to be disclosed by the registrant
has been recorded, processed, summarized and reported within the
time period specified in the Commission's rules and forms and
that the information required to be disclosed by the registrant
has been accumulated and communicated to the registrant's
principal executive officer and principal financial officer in
order to allow timely decisions regarding required disclosure.
(b) There have been 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.
Item 10 -- Exhibits
(a) Code of Ethics -- Not required in this filing
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley
Act -- Attached hereto
<Page>
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.
Prudential U.S. Emerging Growth Fund
By: /s/ Maria Master
---------------------
Maria Master
Secretary of Prudential U.S. Emerging Growth Fund
Date: July 8, 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/ Judy A. Rice
--------------------
Judy A. Rice,
President and Principal Executive Officer of Prudential U.S.
Emerging Growth Fund
Date: July 8 2003
By: /s/ Grace C. Torres
--------------------
Grace C. Torres,
Treasurer and Principal Financial Officer of Prudential U.S.
Emerging Growth Fund
Date: July 8, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.