The Agreement between T. Rowe Price Associates, Inc. and T. Rowe Price
Funds for Fund Accounting Services, dated January 1, 2000, as amended.

<PAGE>



                                 AGREEMENT
                                BETWEEN
                                T. ROWE PRICE ASSOCIATES, INC.
                                AND
                                THE T. ROWE PRICE FUNDS
                                FOR
                                FUND ACCOUNTING SERVICES


<PAGE>


                                TABLE OF CONTENTS
                                -----------------
                                                            PAGE
                                                            ----

Article A.....Terms of Appointment/Duties of Price Associates    1

Article B.....................Fees and Out-of-Pocket Expenses    3

Article C..Representations and Warranties of Price Associates    3

Article D..........Representations and Warranties of the Fund    4

Article E..........Ownership of Software and Related Material    4

Article F...........................Quality Service Standards    4

Article G....................Standard of Care/Indemnification    4

Article H......................................Dual Interests    7

Article I.......................................Documentation    7

Article J.......................Recordkeeping/Confidentiality    7

Article K..Compliance with Governmental Rules and Regulations    8

Article L..................Terms and Termination of Agreement    8

Article M..............................................Notice    8

Article N..........................................Assignment    9

Article O...................Amendment/Interpretive Provisions    9

Article P..................................Further Assurances    9

Article Q...............................Maryland Law to Apply    9

Article R.................................Merger of Agreement    10

Article S........................................Counterparts    10

Article T.........................................The Parties    10

Article UDirectors, Trustee and Shareholders and Massachusetts Business Trust
10

Article V............................................Captions    11


<PAGE>


     AGREEMENT made as of the first day of January, 2000, by and between T. ROWE
PRICE ASSOCIATES, INC., a Maryland corporation having its principal office and
place of business at 100 East Pratt Street, Baltimore, Maryland 21202 ("PRICE
ASSOCIATES"), and each Fund which is listed on Appendix A (as such Appendix may
be amended from time to time) and which evidences its agreement to be bound
hereby by executing a copy of this Agreement (each such Fund individually
hereinafter referred to as "THE FUND", whose definition may be found in Article
T);
     WHEREAS, Price Associates has the capability of providing the Funds with
certain accounting services ("ACCOUNTING SERVICES");
     WHEREAS, the Fund desires to appoint Price Associates to provide these
Accounting Services and Price Associates desires to accept such appointment;
     WHEREAS, the Board of Directors of the Fund has authorized the Fund to
utilize various pricing services for the purpose of providing to Price
Associates securities prices for the calculation of the Fund's net asset value.
     NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the parties hereto agree as follows:
A.   TERMS OF APPOINTMENT/DUTIES OF PRICE ASSOCIATES
     -----------------------------------------------
     Subject to the terms and conditions set forth in this Agreement, the Fund
hereby employs and appoints Price Associates to provide, and Price Associates
agrees to provide, the following Accounting Services:
     1.
Maintain for each Fund a daily trial balance, a general ledger, subsidiary
records and capital stock accounts;
     2.
Maintain for each Fund an investment ledger, including amortized bond and
foreign dollar denominated costs where applicable;
     3.   Maintain for each Fund all records relating to the Fund's income and
expenses;
     4.
Provide for the daily valuation of each Fund's portfolio securities and the
computation of each Fund's daily net asset value per share ("NAV").  Such daily
valuations shall be made in accordance with the valuation policies established
by each of the Fund's Board of Directors including, but not limited to, the
utilization of such pricing valuation sources and/or pricing services as
determined by the Boards.


<PAGE>


     Price Associates shall have no liability for any losses or damages incurred
by the Fund as a result of erroneous portfolio security evaluations provided by
such designated sources and/or pricing services; provided that, Price Associates
reasonably believes the prices are accurate, has adhered to its normal
verification control procedures, and has otherwise met the standard of care as
set forth in Article G of this Agreement;
     5.
          Provide daily cash flow and transaction status information to each
          Fund's adviser;
     6.   Authorize the payment of Fund expenses, either through instruction of
custodial bank or utilization of custodian^s automated transfer system;
     7.   Prepare for each Fund such financial information that is reasonably
necessary for shareholder reports, reports to the Board of Directors and to the
officers of the Fund, reports to the Securities and Exchange Commission, the
Internal Revenue Service and other Federal and state regulatory agencies;
     8.   Provide each Fund with such advice that may be reasonably necessary to
properly account for all financial transactions and to maintain the Fund's
accounting procedures and records so as to insure compliance with generally
accepted accounting and tax practices and rules;
     9.   Maintain for each Fund all records that may be reasonably required in
connection with the audit performed by each Fund's independent accountant, the
Securities and Exchange Commission, the Internal Revenue Service or such other
Federal or state regulatory agencies; and
     10.  Cooperate with each Fund's independent public accountants and take all
reasonable action in the performance of its obligations under the Agreement to
assure that the necessary information is made available to such accountants for
the expression of their opinion without any qualification as to the scope of
their examination including, but not limited to, their opinion included in each
such Fund's annual report on Form N-SAR and annual amendment to Form N-1A.
B.   FEES AND OUT-OF-POCKET EXPENSES
     -------------------------------
     Each Fund shall pay to Price Associates for its Accounting Services
hereunder, fees as set forth in the Schedule attached hereto.  In addition, each
Fund will reimburse Price Associates for out-of-pocket expenses such as postage,
printed forms, voice and data transmissions, record retention, disaster
recovery, third party vendors, equipment leases and other similar items as may
be agreed upon between Price Associates and the Fund.  Some invoices will
contain costs for both the Funds and other funds serviced by Price Associates.
 In these cases, a reasonable allocation methodology will be used to allocate
these costs to the Funds.


<PAGE>


C.   REPRESENTATIONS AND WARRANTEES OF PRICE ASSOCIATES
     --------------------------------------------------
     Price Associates represents and warrants to the Fund that:
     1.
It is a corporation duly organized and existing in good standing under the laws
of Maryland.
     2.         It is duly qualified to carry on its business in Maryland.
     3.
It is empowered under applicable laws and by its charter and By-Laws to enter
into and perform this Agreement.
     4.   All requisite corporate proceedings have been taken to authorize it to
enter into and perform this Agreement.
     5.   It has, and will continue to have, access to the necessary facilities,
equipment and personnel to perform its duties and obligations under this
Agreement.
D.   REPRESENTATIONS AND WARRANTIES OF THE FUND
     ------------------------------------------
     The Fund represents and warrants to Price Associates that:
     1.
It is a corporation or business trust, as the case may be, duly organized and
existing and in good standing under the laws of Maryland or Massachusetts, as
the case may be.
     2.
It is empowered under applicable laws and by its Articles of Incorporation or
Declaration of Trust, as the case may be, and By-Laws have been taken to
authorize it to enter into and perform this Agreement.
     3.
All proceedings required by said Articles of Incorporation or Declaration of
Trust, as the case may be, and By-Laws have been taken to authorize it to enter
into and perform this Agreement.
E.   OWNERSHIP OF SOFTWARE AND RELATED MATERIAL
     ------------------------------------------
     All computer programs, magnetic tapes, written procedures, and similar
items purchased and/or developed and used by Price Associates in performance of
this Agreement shall be the property of Price Associates and will not become the
property of the Funds.
F.   QUALITY SERVICE STANDARDS
     -------------------------
     Price Associates and the Fund may, from time to time, agree to certain
quality service standards, with respect to Price Associates' services hereunder.
G.   STANDARD OF CARE/INDEMNIFICATION
     --------------------------------
     Notwithstanding anything to the contrary in this Agreement:


<PAGE>


     1.
Where a pricing error results in loss or dilution to a Fund of less than
$10,000, the determination of liability for the error will be made by Price
Associates. Where a pricing error results in loss or dilution to a Fund of
$10,000 or more but less than $100,000, liability for the error will be resolved
through negotiations between Fund Counsel and Price Associates.  Where a pricing
error results in loss or dilution to a Fund of the lesser of 1/2 of 1% of NAV or
$100,000 or more, the error will be promptly reported to the Board of Directors
of the Fund (unless the Fund is fully compensated for the loss or dilution),
provided that final settlement with respect to such errors will not be made
until approved by the Board of Directors of the Fund. A summary of all pricing
errors and their effect on the Funds will be reported to the Funds^ Audit
Committee on an annual basis. In determining the liability of Price Associates
for a pricing error, an error or omission will not be deemed to constitute
negligence when it is determined that:
     o Price Associates had in place "appropriate procedures and an adequate
 system of internal controls;"
     o the employee responsible for the error or omission had been reasonably
trained and was being appropriately monitored; and
     o the error or omission did not result from wanton or reckless conduct on
the part of the employee.
     It is understood that Price Associates is not obligated to have in place
separate procedures to prevent each and every conceivable type of error or
omission. The term "appropriate procedures and adequate system of internal
controls" shall mean procedures and controls reasonably designed to prevent and
detect errors and omissions. In determining the reasonableness of such
procedures and controls, weight will be given to such factors as are
appropriate, including the prior occurrence of any similar errors or omissions,
when such procedures and controls were in place and fund accounting industry
standards in place at the time of the error.
     2.   The Fund shall indemnify and hold Price Associates harmless from and
against all losses, costs, damages, claims, actions, and expenses, including
reasonable expenses for legal counsel, incurred by Price Associates resulting
from:  (i) any action or omission by Price Associates or its agents or
subcontractors in the performance of their duties hereunder; (ii) Price
Associates acting upon instructions believed by it to have been executed by a
duly authorized officer of the Fund; or (iii) Price Associates acting upon
information provided by the Fund in form and under policies agreed to by Price
Associates and the Fund.  Price Associates shall not be entitled


<PAGE>


to such indemnification in respect of actions or omissions constituting
negligence or willful misconduct of Price Associates or where Price Associates
has not exercised reasonable care in selecting or monitoring the performance of
its agents or subcontractors.
     3.   Price Associates shall indemnify and hold harmless the Fund from all
losses, costs, damages, claims, actions and expenses, including reasonable
expenses for legal counsel, incurred by the Fund resulting from the negligence
or willful misconduct of Price Associates or which result from Price Associates'
failure to exercise reasonable care in selecting or monitoring the performance
of its agents or subcontractors.  The Fund shall not be entitled to such
indemnification with respect to actions or omissions constituting negligence or
willful misconduct of such Fund or its agents or subcontractors; unless such
negligence or misconduct is attributable to Price Associates.
     4.
In the event either party is unable to perform its obligations under the terms
of this Agreement because of acts of God, strikes or other causes reasonably
beyond its control, such party shall not be liable to the other party for any
loss, cost, damage, claim, action or expense resulting from such failure to
perform or otherwise from such causes.
     5.
In order that the indemnification provisions contained in this Article G shall
apply, upon the assertion of a claim for which either party may be required to
indemnify the other, the party seeking indemnification shall promptly notify the
other party of such assertion, and shall keep the other party advised with
respect to all developments concerning such claim.  The party who may be
required to indemnify shall have the option to participate with the party
seeking indemnification in the defense of such claim, or to defend against said
claim in its own name or in the name of the other party.  The party seeking
indemnification shall in no case confess any claim or make any compromise in any
case in which the other party may be required to indemnify it except with the
other party's prior written consent.
     6.   Neither party to this Agreement shall be liable to the other party for
consequential damages under any provision of this Agreement.
H.   DUAL INTERESTS
     --------------
     It is understood that some person or persons may be directors, officers, or
shareholders of both the Fund and Price Associates (including Price Associates'
affiliates), and that the existence of any such dual interest shall not affect
the validity of this Agreement or of any transactions hereunder except as
otherwise provided by a specific provision of applicable law.


<PAGE>


I.   DOCUMENTATION
     -------------
     As requested by Price Associates, the Fund shall promptly furnish to Price
Associates such documents as it may reasonably request and as are necessary for
Price Associates to carry out its responsibilities hereunder.
J.   RECORDKEEPING/CONFIDENTIALITY
     -----------------------------
     1.   Price Associates shall keep records relating to the services to be
performed hereunder, in the form and manner as it may deem advisable, provided
that Price Associates shall keep all records in such form and in such manner as
required by applicable law, including the Investment Company Act of 1940 ("THE
ACT") and the Securities Exchange Act of 1934 ("THE '34 ACT").
     2.
Price Associates and the Fund agree that all books, records, information and
data pertaining to the business of the other party which are exchanged or
received pursuant to the negotiation or the carrying out of this Agreement shall
remain confidential, and shall not be voluntarily disclosed to any other person,
except:  (a) after prior notification to and approval in writing by the other
party hereto, which approval shall not be unreasonably withheld and may not be
withheld where Price Associates or Fund may be exposed to civil or criminal
contempt proceedings for failure to comply; (b) when requested to divulge such
information by duly constituted governmental authorities; or (c) after so
requested by the other party hereto.
K.   COMPLIANCE WITH GOVERNMENTAL RULES AND REGULATIONS
     --------------------------------------------------
     Except as otherwise provided in the Agreement and except for the accuracy
of information furnished to the Funds by Price Associates, each Fund assumes
full responsibility for the preparation, contents and distribution of its
prospectuses, and for complying with all applicable requirements of the Act, the
'34 Act, the Securities Act of 1933 (the "33 ACT"), and any laws, rules and
regulations of governmental authorities having jurisdiction over the Funds.
L.   TERM AND TERMINATION OF AGREEMENT
     ---------------------------------
     1.
This Agreement shall run for a period of one (1) year from the date first
written above and will be renewed from year to year thereafter unless terminated
by either party as provided hereunder.
     2.
This Agreement may be terminated by the Fund upon sixty (60) days' written
notice to Price Associates; and by Price Associates, upon three hundred
sixty-five (365) days' writing notice to the Fund.


<PAGE>


     3.   Upon termination hereof, the Fund shall pay to Price Associates such
compensation as may be due as of the date of such termination, and shall
likewise reimburse for out-of-pocket expenses related to its services hereunder.
M.   NOTICE
     ------
     Any notice as required by this Agreement shall be sufficiently given (i)
when sent to an authorized person of the other party at the address of such
party set forth above or at such other address as such party may from time to
time specify in writing to the other party; or (ii) as otherwise agreed upon by
appropriate officers of the parties hereto.
N.   ASSIGNMENT
     ----------
     Neither this Agreement nor any rights or obligations hereunder may be
assigned either voluntarily or involuntarily, by operation of law or otherwise,
by either party without the prior written consent of the other party, provided
this shall not preclude Price Associates from employing such agents and
subcontractors as it deems appropriate to carry out its obligations set forth
hereunder.
O.   AMENDMENT/INTERPRETIVE PROVISIONS
     ---------------------------------
     The parties by mutual written agreement may amend this Agreement at any
time.  In addition, in connection with the operation of this Agreement, Price
Associates and the Fund may agree from time to time on such provisions
interpretive of or in addition to the provisions of this Agreement as may in
their joint opinion be consistent with the general tenor of this Agreement.
Any such interpretive or additional provisions are to be signed by all parties
and annexed hereto, but no such provision shall contravene any applicable
Federal or state law or regulation and no such interpretive or additional
provision shall be deemed to be an amendment of this Agreement.
P.   FURTHER ASSURANCES
     ------------------
     Each party agrees to perform such further acts and execute such further
documents as are necessary to effectuate the purposes hereof.
Q.   MARYLAND LAW TO APPLY
     ---------------------
     This Agreement shall be construed and the provisions thereof interpreted
under and in accordance with the laws of Maryland.


<PAGE>


R.   MERGER OF AGREEMENT
     -------------------
     This Agreement, including the attached Appendix and Schedule supersedes any
prior agreement with respect to the subject hereof, whether oral or written.
S.   COUNTERPARTS
     ------------
     This Agreement may be executed by the parties hereto on any number of
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instruments.
T.   THE PARTIES
     -----------
     All references herein to "the Fund" are to each of the Funds listed on
Appendix A individually, as if this Agreement were between such individual Fund
and Price Associates.  In the case of a series Fund or trust, all references to
"the Fund" are to the individual series or portfolio of such Fund or trust, or
to such Fund or trust on behalf of the individual series or portfolio, as
appropriate.  The "Fund" also includes any T. Rowe Price Funds which may be
established after the execution of this Agreement.  Any reference in this
Agreement to "the parties" shall mean Price Associates and such other individual
Fund as to which the matter pertains.
U.   DIRECTORS, TRUSTEES AND SHAREHOLDERS AND MASSACHUSETTS BUSINESS TRUST
     ---------------------------------------------------------------------
     It is understood and is expressly stipulated that neither the holders of
shares in the Fund nor any Directors or Trustees of the Fund shall be personally
liable hereunder.
     With respect to any Fund which is a party to this Agreement and which is
organized as a Massachusetts business trust, the term "Fund" means and refers to
the trustees from time to time serving under the applicable trust agreement
(Declaration of Trust) of such Trust as the same may be amended from time to
time.  It is expressly agreed that the obligations of any such Trust hereunder
shall not be binding upon any of the trustees, shareholders, nominees, officers,
agents or employees of the Trust, personally, but bind only the trust property
of the Trust, as provided in the Declaration of Trust of the Trust.  The
execution and delivery of this Agreement has been authorized by the trustees and
signed by an authorized officer of the Trust, acting as such, and neither such
authorization by such Trustees nor such execution and delivery by such officer
shall be deemed to have been made by any of them, but shall bind only the trust
property of the Trust as provided in its Declaration of Trust.


<PAGE>


V.   CAPTIONS
     --------
     The captions in the Agreement are included for convenience of reference
only and in no way define or limit any of the provisions hereof or otherwise
affect their construction or effect.
     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in their names and on their behalf under their seals by and through
their duly authorized officers.


T. ROWE PRICE ASSOCIATES, INC.                T. ROWE PRICE FUNDS

  /s/James S. Riepe                  /s/Carmen F. Deyesu
BY:                             ______________________________

BY:
    --------------------------------------------------------------
  James S. Riepe                     Carmen F. Deyesu

DATED:____________________________
DATED:____________________________



<PAGE>


                                   APPENDIX A
                                   ----------

T. ROWE PRICE BALANCED FUND, INC.

T. ROWE PRICE BLUE CHIP GROWTH FUND

T. ROWE PRICE CALIFORNIA TAX-FREE INCOME TRUST
California Tax-Free Bond Fund
California Tax-Free Money Fund

T. ROWE PRICE CAPITAL APPRECIATION FUND

T. ROWE PRICE CAPITAL OPPORTUNITY FUND, INC.

T. ROWE PRICE CORPORATE INCOME FUND, INC.

T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND, INC.

T. ROWE PRICE DIVIDEND GROWTH FUND,  INC.

T. ROWE PRICE EQUITY INCOME FUND

T. ROWE PRICE EQUITY SERIES, INC.
T. Rowe Price Equity Income Portfolio
T. Rowe Price New America Growth Portfolio
T. Rowe Price Personal Strategy Balanced Portfolio
T. Rowe Price Mid-Cap Growth Portfolio

T. ROWE PRICE FINANCIAL SERVICES FUND, INC.

T. ROWE PRICE FIXED INCOME SERIES, INC.
T. Rowe Price Limited-Term Bond Portfolio
T. Rowe Price Prime Reserve Portfolio

T. ROWE PRICE GNMA FUND

T. ROWE PRICE GROWTH & INCOME FUND, INC.

T. ROWE PRICE GROWTH STOCK FUND, INC.

T. ROWE PRICE HEALTH SCIENCES FUND, INC.

T. ROWE PRICE HIGH YIELD FUND, INC.



<PAGE>


T. ROWE PRICE INDEX TRUST, INC.
T. Rowe Price Equity Index 500 Fund
T. Rowe Price Equity Market Index Fund
T. Rowe Price Total Equity Market Index Fund

INSTITUTIONAL EQUITY FUNDS, INC.
Mid-Cap Equity Growth Fund

INSTITUTIONAL INTERNATIONAL FUNDS, INC.
Foreign Equity Fund

T. ROWE PRICE INTERNATIONAL FUNDS, INC.
T. Rowe Price International Bond Fund
T. Rowe Price International Discovery Fund
T. Rowe Price International Stock Fund
T. Rowe Price European Stock Fund
T. Rowe Price New Asia Fund
T. Rowe Price Global Government Bond Fund
T. Rowe Price Japan Fund
T. Rowe Price Latin America Fund
T. Rowe Price Emerging Markets Bond Fund
T. Rowe Price Emerging Markets Stock Fund
T. Rowe Price Global Stock Fund
T. Rowe Price International Growth & Income Fund

T. ROWE PRICE INTERNATIONAL SERIES, INC.
T. Rowe Price International Stock Portfolio

T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND, INC.

T. ROWE PRICE MID-CAP GROWTH FUND, INC.

T. ROWE PRICE MID-CAP VALUE FUND, INC.

T. ROWE PRICE NEW AMERICA GROWTH FUND

T. ROWE PRICE NEW ERA FUND, INC.

T. ROWE PRICE NEW HORIZONS FUNDS, INC.

T. ROWE PRICE NEW INCOME FUND, INC.



<PAGE>


T. ROWE PRICE PERSONAL STRATEGY FUNDS, INC.
T. Rowe Price Personal Strategy Balanced Fund
T. Rowe Price Personal Strategy Growth Fund
T. Rowe Price Personal Strategy Income Fund

T. ROWE PRICE PRIME RESERVE FUND, INC.
T. Rowe Price Prime Reserve Fund-PLUS Class

T. ROWE PRICE REAL ESTATE FUND, INC.

RESERVE INVESTMENT FUNDS, INC.
Reserve Investment Fund
Government Reserve Investment Fund

T. ROWE PRICE SCIENCE & TECHNOLOGY FUND, INC.

T. ROWE PRICE SHORT-TERM BOND FUND, INC.

T. ROWE PRICE SHORT-TERM U.S. GOVERNMENT FUND, INC.

T. ROWE PRICE SMALL-CAP STOCK FUND, INC.

T. ROWE PRICE SMALL-CAP VALUE FUND, INC.

T. ROWE PRICE SPECTRUM FUND, INC.
Spectrum Growth Fund
Spectrum Income Fund
Spectrum International Fund

T. ROWE PRICE STATE TAX-FREE INCOME TRUST
Maryland Tax-Free Bond Fund
Maryland Short-Term Tax-Free Bond Fund
New York Tax-Free Bond Fund
New York Tax-Free Money Fund
New Jersey Tax-Free Bond Fund
Virginia Tax-Free Bond Fund
Virginia Short-Term Tax-Free Bond Fund
Florida Intermediate Tax-Free Fund
Georgia Tax-Free Bond Fund

T. ROWE PRICE TAX-EFFICIENT FUNDS, INC.
T. Rowe Price Tax-Efficient Balance Fund
T. Rowe Price Tax-Efficient Growth Fund



<PAGE>


T. ROWE PRICE TAX-EXEMPT MONEY FUND, INC.
T. Rowe Price Tax-Exempt Money Fund - PLUS Class

T. ROWE PRICE TAX-FREE HIGH YIELD FUND, INC.

T. ROWE PRICE TAX-FREE INCOME FUND, INC.

T. ROWE PRICE TAX-FREE INTERMEDIATE BOND FUND, INC.

T. ROWE PRICE TAX-FREE SHORT-INTERMEDIATE FUND, INC.

T. ROWE PRICE U.S. TREASURY FUNDS, INC.
U.S. Treasury Intermediate Fund
U.S. Treasury Long-Term Fund
U.S. Treasury Money Fund

T. ROWE PRICE SUMMIT FUNDS, INC. on behalf of the:
T. Rowe Price Summit Cash Reserves Fund
T. Rowe Price Summit Limited-Term Bond Fund
T. Rowe Price Summit GNMA Fund

T. ROWE PRICE SUMMIT MUNICIPAL FUNDS, INC. on behalf of the:
T. Rowe Price Summit Municipal Money Market Fund
T. Rowe Price Summit Municipal Intermediate Fund
T. Rowe Price Summit Municipal Income Fund

T. ROWE PRICE VALUE FUND, INC.


<PAGE>


                                AMENDMENT NO. 1
                                   AGREEMENT
                                    BETWEEN
                         T. ROWE PRICE ASSOCIATES, INC.
                                      AND
                            THE T. ROWE PRICE FUNDS
                                      FOR
                            FUND ACCOUNTING SERVICES

The Agreement for Fund Accounting Services of January 1, 2000, between T. Rowe
Price Associates, Inc. and each of the Parties listed on Appendix A thereto is
hereby amended, as of February 9, 2000, by adding thereto Institutional Equity
Funds, Inc., on behalf of Institutional Large-Cap Value Fund and Institutional
Small-Cap Stock Fund; T. Rowe Price Blue Chip Growth Fund, Inc., on behalf of T.
Rowe Price Blue Chip Growth Fund-Advisor Class; T. Rowe Price Equity Income
Fund, on behalf of T. Rowe Price Equity Income Fund -Advisor Class; T. Rowe
Price High Yield Fund, Inc., on behalf of T. Rowe Price High Yield Fund-Advisor
Class; T. Rowe Price International Funds, Inc., on behalf of T. Rowe Price
International Bond Fund-Advisor Class and T. Rowe Price International Stock
Fund-Advisor Class; T. Rowe Price Mid-Cap Growth Fund, Inc., on behalf of T.
Rowe Price Mid-Cap Growth Fund-Advisor Class; T. Rowe Price Science & Technology
Fund, Inc., on behalf of T. Rowe Price Science & Technology Fund-Advisor Class;
T. Rowe Price Small-Cap Stock Fund, Inc., on behalf of T. Rowe Price Small-Cap
Stock Fund-Advisor Class; T. Rowe Price Small-Cap Value Fund, Inc., on behalf of
T. Rowe Price Small-Cap Value Fund-Advisor Class and T. Rowe Price Value Fund,
Inc., on behalf of T. Rowe Price Value Fund-Advisor Class.

T. ROWE PRICE BALANCED FUND, INC.

T. ROWE PRICE BLUE CHIP GROWTH FUND, INC.
   T. Rowe Price Blue Chip Growth Fund-Advisor Class

T. ROWE PRICE CALIFORNIA TAX-FREE INCOME TRUST
   California Tax-Free Bond Fund
   California Tax-Free Money Fund



<PAGE>


T. ROWE PRICE CAPITAL APPRECIATION FUND

T. ROWE PRICE CAPITAL OPPORTUNITY FUND, INC.

T. ROWE PRICE CORPORATE INCOME FUND, INC.

T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND, INC.

T. ROWE PRICE DIVIDEND GROWTH FUND, INC.

T. ROWE PRICE EQUITY INCOME FUND
   T. Rowe Price Equity Income Fund-Advisor Class

T. ROWE PRICE EQUITY SERIES, INC.
   T. Rowe Price Equity Income Portfolio
   T. Rowe Price New America Growth Portfolio
   T. Rowe Price Personal Strategy Balanced Portfolio
   T. Rowe Price Mid-Cap Growth Portfolio

T. ROWE PRICE FINANCIAL SERVICES FUND, INC.

T. ROWE PRICE FIXED INCOME SERIES, INC.
   T. Rowe Price Limited-Term Bond Portfolio
   T. Rowe Price Prime Reserve Portfolio

T. ROWE PRICE GNMA FUND

T. ROWE PRICE GROWTH & INCOME FUND, INC.

T. ROWE PRICE GROWTH STOCK FUND, INC.

T. ROWE PRICE HEALTH SCIENCES FUND, INC.

T. ROWE PRICE HIGH YIELD FUND, INC.
   T. Rowe Price High Yield Fund-Advisor Class

T. ROWE PRICE INDEX TRUST, INC.
   T. Rowe Price Equity Index 500 Fund
   T. Rowe Price Extended Equity Market Index Fund
   T. Rowe Price Total Equity Market Index Fund

INSTITUTIONAL EQUITY FUNDS, INC.
   Institutional Large-Cap Value Fund
   Institutional Small-Cap Stock Fund
   Mid-Cap Equity Growth Fund

INSTITUTIONAL INTERNATIONAL FUNDS, INC.
   Foreign Equity Fund



<PAGE>


T. ROWE PRICE INTERNATIONAL FUNDS, INC.
   T. Rowe Price International Bond Fund
   T. Rowe Price International Bond Fund-Advisor Class
   T. Rowe Price International Discovery Fund
   T. Rowe Price International Stock Fund
   T. Rowe Price International Stock Fund-Advisor Class
   T. Rowe Price European Stock Fund
   T. Rowe Price New Asia Fund
   T. Rowe Price Global Bond Fund
   T. Rowe Price Japan Fund
   T. Rowe Price Latin America Fund
   T. Rowe Price Emerging Markets Bond Fund
   T. Rowe Price Emerging Markets Stock Fund
   T. Rowe Price Global Stock Fund
   T. Rowe Price International Growth & Income Fund

T. ROWE PRICE INTERNATIONAL SERIES, INC.
   T. Rowe Price International Stock Portfolio

T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND, INC.

T. ROWE PRICE MID-CAP GROWTH FUND, INC.
   T. Rowe Price Mid-Cap Growth Fund-Advisor Class

T. ROWE PRICE MID-CAP VALUE FUND, INC.

T. ROWE PRICE NEW AMERICA GROWTH FUND

T. ROWE PRICE NEW ERA FUND, INC.

T. ROWE PRICE NEW HORIZONS FUNDS, INC.

T. ROWE PRICE NEW INCOME FUND, INC.

T. ROWE PRICE PERSONAL STRATEGY FUNDS, INC.
   T. Rowe Price Personal Strategy Balanced Fund
   T. Rowe Price Personal Strategy Growth Fund
   T. Rowe Price Personal Strategy Income Fund

T. ROWE PRICE PRIME RESERVE FUND, INC.
   T. Rowe Price Prime Reserve Fund-PLUS Class

T. ROWE PRICE REAL ESTATE FUND, INC.

RESERVE INVESTMENT FUNDS, INC.
   Reserve Investment Fund
   Government Reserve Investment Fund



<PAGE>


T. ROWE PRICE SCIENCE & TECHNOLOGY FUND, INC.
   T. Rowe Price Science & Technology Fund-Advisor Class

T. ROWE PRICE SHORT-TERM BOND FUND, INC.

T. ROWE PRICE SHORT-TERM U.S. GOVERNMENT FUND, INC.

T. ROWE PRICE SMALL-CAP STOCK FUND, INC.
   T. Rowe Price Small-Cap Stock Fund-Advisor Class

T. ROWE PRICE SMALL-CAP VALUE FUND, INC.
   T. Rowe Price Small-Cap Value Fund-Advisor Class

T. ROWE PRICE SPECTRUM FUND, INC.
   Spectrum Growth Fund
   Spectrum Income Fund
   Spectrum International Fund

T. ROWE PRICE STATE TAX-FREE INCOME TRUST
   Maryland Tax-Free Bond Fund
   Maryland Short-Term Tax-Free Bond Fund
   New York Tax-Free Bond Fund
   New York Tax-Free Money Fund
   New Jersey Tax-Free Bond Fund
   Virginia Tax-Free Bond Fund
   Virginia Short-Term Tax-Free Bond Fund
   Florida Intermediate Tax-Free Fund
   Georgia Tax-Free Bond Fund

T. ROWE PRICE TAX-EFFICIENT FUNDS, INC.
   T. Rowe Price Tax-Efficient Balanced Fund
   T. Rowe Price Tax-Efficient Growth Fund

T. ROWE PRICE TAX-EXEMPT MONEY FUND, INC.
   T. Rowe Price Tax-Exempt Money Fund-PLUS Class

T. ROWE PRICE TAX-FREE HIGH YIELD FUND, INC.

T. ROWE PRICE TAX-FREE INCOME FUND, INC.

T. ROWE PRICE TAX-FREE INTERMEDIATE BOND FUND, INC.

T. ROWE PRICE TAX-FREE SHORT-INTERMEDIATE FUND, INC.

T. ROWE PRICE U.S. TREASURY FUNDS, INC.
   U.S. Treasury Intermediate Fund
   U.S. Treasury Long-Term Fund
   U.S. Treasury Money Fund



<PAGE>


T. ROWE PRICE SUMMIT FUNDS, INC. on behalf of the:
   T. Rowe Price Summit Cash Reserves Fund
   T. Rowe Price Summit Limited-Term Bond Fund
   T. Rowe Price Summit GNMA Fund

T. ROWE PRICE SUMMIT MUNICIPAL FUNDS, INC. on behalf of the:
   T. Rowe Price Summit Municipal Money Market Fund
   T. Rowe Price Summit Municipal Intermediate Fund
   T. Rowe Price Summit Municipal Income Fund

T. ROWE PRICE VALUE FUND, INC.
   T. Rowe Price Value Fund-Advisor Class


Attest:

/s/Patricia B. Lippert        /s/  Carmen F. Deyesu

________________________          ______________________________
Patricia B. Lippert           By:  Carmen F. Deyesu
Secretary                         Treasurer

Attest:                       T. ROWE PRICE ASSOCIATES, INC.

/s/Barbara A. Van Horn        /s/  Henry H. Hopkins

________________________          ______________________________
Barbara A. Van Horn           By:  Henry H. Hopkins
Secretary                          Managing Director


<PAGE>


                                AMENDMENT NO. 2
                                   AGREEMENT
                                    BETWEEN
                         T. ROWE PRICE ASSOCIATES, INC.
                                      AND
                            THE T. ROWE PRICE FUNDS
                                      FOR
                            FUND ACCOUNTING SERVICES

The Agreement for Fund Accounting Services of January 1, 2000, as amended
February 9, 2000 between T. Rowe Price Associates, Inc. and each of the Parties
listed on Appendix A thereto is hereby amended, as of April 19, 2000, by adding
thereto T. Rowe Price International Funds, Inc., on behalf of T. Rowe Price
Emerging Europe & Mediterranean Fund.

T. ROWE PRICE BALANCED FUND, INC.

T. ROWE PRICE BLUE CHIP GROWTH FUND, INC.
   T. Rowe Price Blue Chip Growth Fund-Advisor Class

T. ROWE PRICE CALIFORNIA TAX-FREE INCOME TRUST
   California Tax-Free Bond Fund
   California Tax-Free Money Fund

T. ROWE PRICE CAPITAL APPRECIATION FUND

T. ROWE PRICE CAPITAL OPPORTUNITY FUND, INC.

T. ROWE PRICE CORPORATE INCOME FUND, INC.

T. ROWE PRICE DIVERSIFIED SMALL-CAP GROWTH FUND, INC.

T. ROWE PRICE DIVIDEND GROWTH FUND, INC.

T. ROWE PRICE EQUITY INCOME FUND
   T. Rowe Price Equity Income Fund-Advisor Class

T. ROWE PRICE EQUITY SERIES, INC.
   T. Rowe Price Equity Income Portfolio
   T. Rowe Price New America Growth Portfolio
   T. Rowe Price Personal Strategy Balanced Portfolio
   T. Rowe Price Mid-Cap Growth Portfolio

T. ROWE PRICE FINANCIAL SERVICES FUND, INC.



<PAGE>


T. ROWE PRICE FIXED INCOME SERIES, INC.
   T. Rowe Price Limited-Term Bond Portfolio
   T. Rowe Price Prime Reserve Portfolio

T. ROWE PRICE GNMA FUND

T. ROWE PRICE GROWTH & INCOME FUND, INC.

T. ROWE PRICE GROWTH STOCK FUND, INC.

T. ROWE PRICE HEALTH SCIENCES FUND, INC.

T. ROWE PRICE HIGH YIELD FUND, INC.
   T. Rowe Price High Yield Fund-Advisor Class

T. ROWE PRICE INDEX TRUST, INC.
   T. Rowe Price Equity Index 500 Fund
   T. Rowe Price Extended Equity Market Index Fund
   T. Rowe Price Total Equity Market Index Fund

INSTITUTIONAL EQUITY FUNDS, INC.
   Institutional Large-Cap Value Fund
   Institutional Small-Cap Stock Fund
   Mid-Cap Equity Growth Fund

INSTITUTIONAL INTERNATIONAL FUNDS, INC.
   Foreign Equity Fund

T. ROWE PRICE INTERNATIONAL FUNDS, INC.
   T. Rowe Price International Bond Fund
   T. Rowe Price International Bond Fund-Advisor Class
   T. Rowe Price International Discovery Fund
   T. Rowe Price International Stock Fund
   T. Rowe Price International Stock Fund-Advisor Class
   T. Rowe Price European Stock Fund
   T. Rowe Price New Asia Fund
   T. Rowe Price Global Bond Fund
   T. Rowe Price Japan Fund
   T. Rowe Price Latin America Fund
   T. Rowe Price Emerging Markets Bond Fund
   T. Rowe Price Emerging Markets Stock Fund
   T. Rowe Price Global Stock Fund
   T. Rowe Price International Growth & Income Fund
   T. Rowe Price Emerging Europe & Mediterranean Fund

T. ROWE PRICE INTERNATIONAL SERIES, INC.
   T. Rowe Price International Stock Portfolio



<PAGE>


T. ROWE PRICE MEDIA & TELECOMMUNICATIONS FUND, INC.

T. ROWE PRICE MID-CAP GROWTH FUND, INC.
   T. Rowe Price Mid-Cap Growth Fund-Advisor Class

T. ROWE PRICE MID-CAP VALUE FUND, INC.

T. ROWE PRICE NEW AMERICA GROWTH FUND

T. ROWE PRICE NEW ERA FUND, INC.

T. ROWE PRICE NEW HORIZONS FUNDS, INC.

T. ROWE PRICE NEW INCOME FUND, INC.

T. ROWE PRICE PERSONAL STRATEGY FUNDS, INC.
   T. Rowe Price Personal Strategy Balanced Fund
   T. Rowe Price Personal Strategy Growth Fund
   T. Rowe Price Personal Strategy Income Fund

T. ROWE PRICE PRIME RESERVE FUND, INC.
   T. Rowe Price Prime Reserve Fund-PLUS Class

T. ROWE PRICE REAL ESTATE FUND, INC.

RESERVE INVESTMENT FUNDS, INC.
   Reserve Investment Fund
   Government Reserve Investment Fund

T. ROWE PRICE SCIENCE & TECHNOLOGY FUND, INC.
   T. Rowe Price Science & Technology Fund-Advisor Class

T. ROWE PRICE SHORT-TERM BOND FUND, INC.

T. ROWE PRICE SHORT-TERM U.S. GOVERNMENT FUND, INC.

T. ROWE PRICE SMALL-CAP STOCK FUND, INC.
   T. Rowe Price Small-Cap Stock Fund-Advisor Class

T. ROWE PRICE SMALL-CAP VALUE FUND, INC.
   T. Rowe Price Small-Cap Value Fund-Advisor Class

T. ROWE PRICE SPECTRUM FUND, INC.
   Spectrum Growth Fund
   Spectrum Income Fund
   Spectrum International Fund



<PAGE>


T. ROWE PRICE STATE TAX-FREE INCOME TRUST
   Maryland Tax-Free Bond Fund
   Maryland Short-Term Tax-Free Bond Fund
   New York Tax-Free Bond Fund
   New York Tax-Free Money Fund
   New Jersey Tax-Free Bond Fund
   Virginia Tax-Free Bond Fund
   Virginia Short-Term Tax-Free Bond Fund
   Florida Intermediate Tax-Free Fund
   Georgia Tax-Free Bond Fund

T. ROWE PRICE TAX-EFFICIENT FUNDS, INC.
   T. Rowe Price Tax-Efficient Balanced Fund
   T. Rowe Price Tax-Efficient Growth Fund

T. ROWE PRICE TAX-EXEMPT MONEY FUND, INC.
   T. Rowe Price Tax-Exempt Money Fund-PLUS Class

T. ROWE PRICE TAX-FREE HIGH YIELD FUND, INC.

T. ROWE PRICE TAX-FREE INCOME FUND, INC.

T. ROWE PRICE TAX-FREE INTERMEDIATE BOND FUND, INC.

T. ROWE PRICE TAX-FREE SHORT-INTERMEDIATE FUND, INC.

T. ROWE PRICE U.S. TREASURY FUNDS, INC.
   U.S. Treasury Intermediate Fund
   U.S. Treasury Long-Term Fund
   U.S. Treasury Money Fund

T. ROWE PRICE SUMMIT FUNDS, INC. on behalf of the:
   T. Rowe Price Summit Cash Reserves Fund
   T. Rowe Price Summit Limited-Term Bond Fund
   T. Rowe Price Summit GNMA Fund

T. ROWE PRICE SUMMIT MUNICIPAL FUNDS, INC. on behalf of the:
   T. Rowe Price Summit Municipal Money Market Fund
   T. Rowe Price Summit Municipal Intermediate Fund
   T. Rowe Price Summit Municipal Income Fund



<PAGE>


T. ROWE PRICE VALUE FUND, INC.
   T. Rowe Price Value Fund-Advisor Class


Attest:

/s/Patricia B. Lippert             /s/Joseph A. Carrier

________________________          ______________________________
Patricia B. Lippert           By:  Joseph A. Carrier
Secretary                         Treasurer

Attest:                       T. ROWE PRICE ASSOCIATES, INC.

/s/Barbara A. Van Horn        /s/  Henry H. Hopkins

________________________          ______________________________
Barbara A. Van Horn           By:  Henry H. Hopkins
Secretary                          Managing Director