Investment Manager Due Diligence

Return to List 12/31/06 Fourth Quarter 2006* T. Rowe Price Small Cap Stock Fund Over the 3 years ended September 2006, the Fund's performance has been in the top half of the peer group and performance net of fees has closely tracked the Fund's benchmark. However, 5 year performance has been weaker versus benchmark and peers, including on a risk-adjusted basis. The 5 year performance record has been impacted by slightly weaker performance over the last 2 years and 2003. During the 2003 calendar year, the Fund significantly underperformed both its peers and benchmark due to a focus on portfolio holdings the Fund deemed to be "higher quality" stocks (e.g., with longer earnings history and lower price to earnings growth ratios). The Fund was placed on the Short-Term Watch List as of the 4th Quarter 2003. *Please note that in providing this information, the SBA is not in any way intending to influence or inform your investment decisions. Also, this list can change at any time without prior notice from the SBA.