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Proprietary and Confidential

National Plans Council UpdateCynthia Egan, President, T. Rowe Price Retirement Plan Services, Inc.

Jamey Delaplane, partner, Davis & Harman, LLP

T. Rowe Price Business Update

• T. Rowe Price has a strong balance sheet, NO DEBT with substantial liquidity, including case and mutual fund investment holdings of $1.1 billion*

• AUM down one-third from their peak of $400 billion at the start of 2008 to $268.8 billion*

• Focused on one business• We’re still reinvesting in the future of the company• Retirement Plan Services Update

• Participants remain steady• Deferrals remain above 7%• < 4% are making changes (loans, deferrals, balance exchange, contribution

allocation)• Company match changes about 7%, most are temporary

*as of 3/31/2009

Managing Costs at T. Rowe Price

• Workforce reduction

• 5.5% or 288 associates

• 76 associates in RPS/RPS Ops

• Philosophic approach

• Through attrition, retirements, and the workforce reduction, total staffing is now down 8.6% from the beginning of the year.

• Total expense savings could reduce 2009 operating expenses by as much as $120 million from the 2007 level of spending.

• Advertising and promotion 25% lower than 2008

• Consulting and professional fees, travel and related costs and other third party services down 25% from Q1 2008

• Deferring hiring

• Deferring occupation of new buildings

• WorkSmart Initiative

• Partnering with clients on electronic delivery

The Focus in Washington

Key Players

• Centers of Power in Democratic Washington• President Obama

• House Speaker Pelosi and Key Committee Chairmen Lieutenants

• Senate Moderates of Both Parties

• Key Obama Administration Retirement Policy Players• Department of Treasury: Mark Iwry, Deputy Assistant Secretary for Tax Policy – Health and

Retirement Policy

• Department of Labor: Phyllis Borzi, Assistant Secretary for Employee Benefits Security Administration

• House Retirement Policy Players• Chairman Miller (D-CA) of House Education & Labor Committee is Dominant Force

• Watch Rep. Richard Neal (D-MA) of House Ways & Means Committee

• House Republicans Have Little Ability to Influence Agenda

• Senate Retirement Policy Players• Chairman Baucus (D-MT) of Senate Finance and Chairman Kennedy (D-MA) of Senate HELP

• Senior Committee Republicans Also Important – Grassley (Ginance) and Enzi (HELP)

The Focus in Washington

Hot Topics

• Fee Transparency

• Target Date Funds

• Expanding Retirement Savings Coverage

• Promoting Lifetime Income/Annuitization

• Other Topics• Tax Incentives for Retirement Savings

• Investment Advice

• Nonqualified Deferred Compensation