Expanded suite of T. Rowe Price trusts. T. Rowe Price Retirement Plan Services, Inc.

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1 Expanded suite of T. Rowe Price trusts T. Rowe Price Retirement Plan Services, Inc.

2 Institutional vehicles can help plans externalize servicing costs and lower overall investment costs Starting in January 2012, T. Rowe Price Trust Company will offer an expanded range of individual strategy and target-date trusts * as well as new fee class options of certain existing strategy trusts. The CHANGES will: allow plan sponsors and participants to benefit from institutional pricing. enable plan sponsors to externalize (unbundle from investment management fees) the servicing costs associated with the recordkeeping of participant balances in the trusts. reduce eligibility minimums to allow more plans and their participants to benefit from lower fees. provide a series of target-date trusts with primarily actively managed underlying trusts (all but one are actively managed) in a low-cost trust structure. Retirement Active trusts reflect Many of the Retirement funds features Same Asset Allocation Committee and portfolio management teams. identical glide-path strategy based on proprietary asset allocation modeling and research. allocations that continue to shift for 30 years after the target date. ability to employ tactical allocations to incorporate market outlook. Comparing the Target-date Offerings Retirement Funds Retirement Active Trusts Retirement Date Trusts Investment Vehicle Mutual Fund Common Trust Fund Common Trust Fund Underlying Strategies Primarily Active Primarily Active Blend of Active, Enhanced Index, and Passive Investment Approach 17 Active Strategies 1 Passive Strategy 17 Active Strategies 1 Passive Strategy 5 Broad Asset-Class Specific Trusts, which utilize the same 18 underlying sectors as the Retirement Funds and Retirement Active Trusts Externalize Servicing Costs No Yes Yes Fees Eligibility Requirements 56 bps 76 bps as of 5/31/11 None $7 >$7 >$1.5bn 58 bps 56 bps 54 bps Plan assets exceed $2 and the plan will map at least $ to the trusts at inception. 2 $7 47 bps 1 >$7 1 >$1.5bn 43 bps 1 Plan assets exceed $2 and the plan will map at least $ to the trusts at inception. 2 1 The Retirement Date Trusts offer fee sleeves with an additional 10 bps that would be payable as directed by the plan to its third-party service provider for administrative expenses. 2 Other eligibility criteria may be available depending on plan size and/or plan features. 2 t. rowe price Retirement Plan Services, Inc.

3 Additional strategy trusts and classes expand core choices Many of these additional trusts and classes come with low eligibility minimums, allowing more plans and their participants to benefit from the fee structure of these trusts lower costs. Trust mm Minimum ($) Trustee Fee Equities Blue Chip Growth Trust* 10mm Capital Appreciation Trust* 10mm 60 bps Equity Income Trust* 10mm 60 bps Growth & Income Trust* 10mm 60 bps Growth Stock Trust* 10mm 60 bps International Core Equity Trust* 10mm 70 bps International Growth Equity Trust* 10mm 70 bps International Value Equity Trust* 10mm 70 bps New Horizons Trust 3 * 10mm 70 bps 66 bps Real Assets Trust I* 10mm 70 bps t. rowe price Retirement Plan Services, Inc. 3

4 Trust mm Minimum ($) Trustee Fee U.S. Mid-Cap Growth Equity Trust 3 * 10mm 70 bps U.S. Mid-Cap Value Equity Trust 3 * 10mm 70 bps U.S. Small-Cap Core Equity Trust 3 * 10mm 80 bps U.S. Small-Cap Value Equity Trust 3 * 10mm 70 bps U.S. Value Equity Trust* 10mm 70 bps Income Bond Trust I* 10mm 38 bps 36 bps U.S. High Yield Trust 3 * 10mm 3 May not be available to new investors due to capacity constraints. How the trusts differ from mutual funds the trusts unbundle servicing fees associated with recordkeeping participant balances so that these servicing fees can be externalized and reported separately from fees exclusively related to the investment product, such as for asset management. while the T. Rowe Price strategy trusts and the Retirement Active Trusts will use the same investment strategies as their mutual fund counterparts, performance is expected to differ. Several factors can affect the performance of the trusts, such as differences in cash flows, the ability to obtain capacity-constrained securities, and/or the inability of the trusts to purchase certain types of offerings due to ERISA or tax issues. This does not always negatively affect performance depending on the markets, it may enhance performance. the trusts are not subject to SEC registration or the Investment Company Act of 1940, and they typically have lower operating expenses. The trusts do not issue a prospectus as mutual funds do. Instead, the declaration of trust, under which a trust is formed, contains provisions governing operations, investment strategy, and other information. while not required to register with the SEC, T. Rowe Price Trust Company is regulated by the Maryland Commissioner of Financial Regulation, and trust assets are typically considered to be plan assets subject to ERISA. each trust will have audited financial statements that are prepared as of December 31 each year. The Trust Company will file Form 5500 for each trust annually as a direct filing entity when possible and will provide each investing plan with a certificate of participation that will simplify the plan s Form 5500 filing as to its investment in the trust. Plan transition process the new trusts and expanded fee class options will be made available to plans on January 13, typical onboarding procedures, including blackout periods, will be implemented and adjusted according to the needs of each plan. communications to participants will begin prior to the transition and continue through and beyond the transition. 4 t. rowe price Retirement Plan Services, Inc.

5 The principal value of the target-date strategies is not guaranteed at any time, including at or after the target-date, which is the approximate date when investors turn age 65. The target-date strategies invest in a broad range of underlying portfolios that include stocks, bonds, and short-term investments and are subject to the risks of different areas of the market. The target-date strategies emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus more on income and principal stability during retirement. The target-date strategies maintain a substantial allocation to equities both prior to and after the target-date, which can result in greater volatility. Call your T. Rowe Price representative to request a mutual fund prospectus or trust fact sheet; each includes investment objectives, risks, fees, expenses, and other information that you should read and consider carefully before investing. *T. Rowe Price common trust funds (the Trusts ) are not mutual funds. They are common trust funds established by T. Rowe Price Trust Company under Maryland banking law, and their units are exempt from registration under the Securities Act of Investments in the Trusts are not deposits or obligations of, or guaranteed by, the U.S. government or its agencies or T. Rowe Price Trust Company and are subject to investment risks, including possible loss of principal. T. Rowe Price Retirement Plan Services, Inc. T. Rowe Price Investment Services, Inc., distributor, T. Rowe Price mutual funds INTMD 12/