CENTENNIAL MONEY MARKET TRUST
                           CENTENNIAL GOVERNMENT TRUST
                           CENTENNIAL TAX EXEMPT TRUST
                       Supplement dated May 1, 1997 to the
                        Prospectus dated November 1, 1996

The Prospectus is changed as follows:

1. In "Exchange  Privilege"  under "Exchanges of Shares" on page A-9, the second
sentence of the fourth paragraph is replaced by the following:

The  redemption  proceeds  of shares of a Trust  acquired by exchange of Class A
shares of an Eligible Fund purchased subject to a CDSC, that are redeemed within
12  months  of the end of the  calendar  month of the  initial  purchase  of the
exchanged shares (18 months for shares purchased prior to May 1, 1997),  will be
subject to the CDSC as described in the  prospectus of that other Eligible Fund.
In determining  whether the CDSC is payable,  shares of the Trust not subject to
the CDSC are redeemed  first,  including  shares  purchased by  reinvestment  of
dividends  and capital gains  distributions  from any Eligible Fund or shares of
the Trust  acquired by exchange of shares of Eligible Funds on which a front-end
sales  charge was paid or  credited,  and then other  shares are redeemed in the
order of purchase.

2. The  section  captioned  "Exchanges  of  Shares"  is  revised  by adding  the
following after the sub-section  captioned "General Information on Exchanges" on
page A-10:

Shareholder  Transactions by Fax.  Beginning May 30, 1997,  requests for certain
account  transactions  may be sent to the  Transfer  Agent by fax  (telecopier).
Please  call   1-800-525-7048  for  information  about  which  transactions  are
included.  Transaction  requests  submitted by fax are subject to the same rules
and restrictions as written and telephone requests described in this Prospectus.


May 1, 1997                                                           PS000.005