CENTENNIAL TAX EXEMPT TRUST

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SnYt/Sx7gwYfA3V+/Bv6WsJ3Fv8w/pKpOpa5mWpOyImBM12NPHGw9OvYmTn/iqXu z6R8VwX3uy5ItZrbUMv5IQ== 0000728889-05-001115.txt : 20051020 0000728889-05-001115.hdr.sgml : 20051020 20051020104706 ACCESSION NUMBER: 0000728889-05-001115 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20051020 DATE AS OF CHANGE: 20051020 EFFECTIVENESS DATE: 20051020 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTENNIAL TAX EXEMPT TRUST CENTRAL INDEX KEY: 0000319880 IRS NUMBER: 222328954 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 002-69653 FILM NUMBER: 051146529 BUSINESS ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY STREET 2: 34TH FLOOR CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 BUSINESS PHONE: 303-768-3200 MAIL ADDRESS: STREET 1: 6803 SOUTH TUCSON WAY CITY: CENTENNIAL STATE: CO ZIP: 80112-3924 FORMER COMPANY: FORMER CONFORMED NAME: CENTENNIAL TAX EXEMPT TRUST /CO/ DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: DAILY CASH TAX EXEMPT FUND INC DATE OF NAME CHANGE: 19851009 FORMER COMPANY: FORMER CONFORMED NAME: CENTENNIAL TAX EXEMPT CASH FUND INC DATE OF NAME CHANGE: 19820720 497 1 body.htm 3 PROSPECTUSES, SAI, FINANCIALS CENTENNIAL TAX EXEMPT TRUST

Centennial
Money Market Trust
Tax Exempt Trust
Government Trust

The enclosed prospectuses describe three fully-managed money market mutual
funds (collectively referred to as the "Trusts"). Shares of the Trusts are offered to
participants in Automatic Purchase and Redemption Programs (the "Programs")
established by certain brokerage firms with which Centennial Asset Management
Corporation (the Manager and the Distributor of the Trusts) has entered into an
agreement for this purpose. Shares of the Trusts may also be purchased directly,
through securities dealers having sales agreements with the Distributor.

Investors should be aware that the Programs are not bank accounts. Although
the Trusts intend to maintain a constant net asset value per share of $1, as with any
investment in securities, the value of a shareholder's investment in the Trusts may
fluctuate.

This document consists of the Prospectuses of Centennial Money Market Trust,
Centennial Tax Exempt Trust and Centennial Government Trust, all dated October 14, 2005,
which are component parts of the Programs. A Table of Contents for the Prospectuses is on
the following page. Each brokerage firm which has established a Program will furnish
separately a summary description of its Program which must accompany these Prospectuses.

Contents

C E N T E N N I A L M O N E Y M A R K E T T R U S T

The Trust's Investment Objective and Strategies
Main Risks of Investing in the Trust
The Trust's Past Performance
Fees and Expenses of the Trust
About the Trust's Investments

C E N T E N N I A L T A X E X E M P T T R U S T

The Trust's Investment Objective and Strategies
Main Risks of Investing in the Trust
The Trust's Past Performance
Fees and Expenses of the Trust
About the Trust's Investments

C E N T E N N I A L G O V E R N M E N T T R U S T

The Trust's Investment Objective and Strategies
Main Risks of Investing in the Trust
The Trust's Past Performance
Fees and Expenses of the Trust
About the Trust's Investments

This brochure is not part of the Prospectuses.

Contents

I N V E S T I N G I N T H E T R U S T S

This section applies to the prospectuses of Centennial Money Market Trust,
Centennial Tax Exempt Trust and Centennial Government Trust

How the Trusts are Managed
How to Buy Shares
Automatic Purchase and Redemption Programs
Direct Shareholders
How to Sell Shares
Automatic Purchase and Redemption Programs
Direct Shareholders
How to Exchange Shares
Shareholder Account Rules and Policies
Dividends, Capital Gains and Taxes
Financial Highlights

Centennial Money Market Trust

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Prospectus dated October 14 , 2005
Centennial Money Market Trust is a
money market mutual fund. It seeks
the maximum current income that is
consistent with low capital risk and
maintaining liquidity. The Trust
invests in short-term, high-quality
"money market" instruments.

This Prospectus contains important
information about the Trust's
objective, its investment policies,
strategies and risks. It also
contains important information about
how to buy and sell shares of the
As with all mutual funds, the Trust and other account features.
Securities and Exchange Commission has Please read this Prospectus carefully
not approved or disapproved the Trust's before you invest and keep it for
securities nor has it determined that future reference about your account.
this Prospectus is accurate or
complete. It is a criminal offense to
represent otherwise.
- ---------------------------------------------------------------------------------

A B O U T T H E T R U S T

The Trust's Investment Objective and Strategies

WHAT IS THE TRUST'S INVESTMENT OBJECTIVE? The Trust seeks the maximum current income that
is consistent with low capital risk and the maintenance of liquidity.

WHAT DOES THE TRUST MAINLY INVEST IN? The Trust is a money market fund. It invests in a
variety of high-quality money market instruments to seek income. Money market instruments
are short-term, U.S. dollar denominated debt instruments issued by the U.S. government,
domestic and foreign corporations and financial institutions and other entities. They
include, for example, bank obligations, repurchase agreements, commercial paper, other
corporate debt obligations and government debt obligations. To be considered
"high-quality," generally they must be rated in one of the two highest credit-quality
categories for short-term securities by nationally recognized rating services. If unrated,
a security must be determined by the Trust's investment manager to be of comparable quality
to rated securities.

WHO IS THE TRUST DESIGNED FOR? The Trust is designed for investors who are seeking to earn
income at current money market rates while preserving the value of their investment,
because the Trust tries to keep its share price stable at $1.00. Income on money market
instruments tends to be lower than income on longer-term debt securities, so the Trust's
yield will likely be lower than the yield on longer-term fixed income funds. The Trust does
not invest for the purpose of seeking capital appreciation or gains and is not a complete
investment program.

Main Risks of Investing in the Trust

All investments carry risks to some degree. Funds that invest in debt obligations
for income may be subject to credit risks and interest rate risks. There are risks that any
of the Trust's holdings could have its credit rating downgraded, or the issuer could
default, or that interest rates could rise sharply, causing the value of the Trust's
securities (and its share price) to fall. As a result, there is a risk that the Trust's
shares could fall below $1.00 per share. If there is a high redemption demand for the
Trust's shares that was not anticipated, portfolio securities might have to be sold prior
to their maturity at a loss. Also, there is the risk that the value of your investment
could be eroded over time by the effects of inflation, and that poor security selection
could cause the Trust to underperform other funds with similar objectives.

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An investment in the Trust is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency. Although the Trust seeks to preserve the value
of your investment at $1.00 per share, it is possible to lose money by investing in the
Trust.
- --------------------------------------------------------------------------------------------

The Trust's Past Performance

The bar chart and table below show how the Trust's returns may vary over time, by showing
changes in the Trust's performance from year to year for the last 10 calendar years and its
average annual total returns for the 1-, 5- and 10- year periods. Variability of returns is
one measure of the risks of investing in a money market fund. The Trust's past investment
performance does not predict how the Trust will perform in the future.

Annual Total Returns (as of 12/31 each year)

[See appendix to prospectus for annual total return data for bar chart.]

For the period from 1/1/05 through 9/30/05 the cumulative total return (not annualized) was
1.78%.
During the period shown in the bar chart, the highest return (not annualized) for a
calendar quarter was 1.54% (4th Q `00) and the lowest return (not annualized) for a
calendar quarter was 0.11% (1st Q'04 & 2ndQ `04).

Average Annual Total Returns
for the periods ended December 31, 1 Year 5 Years 10 Years
2004
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--------------- --------------
Centennial Money Market Trust 0.77% 2.25% 3.78%
(inception 9/8/81)
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The returns in the table measure the performance of a hypothetical account and assume that
all dividends have been reinvested in additional shares.

- --------------------------------------------------------------------------------------------
The total returns are not the Trust's current yield. The Trust's yield more closely
reflects the Trust's current earnings. To obtain the Trust's current seven day yield,
please call the Transfer Agent toll-free at 1.800.525.9310.
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Fees and Expenses of the Trust

The Trust pays a variety of expenses directly for management of its assets, administration
and other services. Those expenses are subtracted from the Trust's assets to calculate the
Trust's net asset value per share. All shareholders therefore pay those expenses
indirectly. The following tables are meant to help you understand the fees and expenses you
may pay if you buy and hold shares of the Trust. The numbers below are based upon the
Trust's expenses during its fiscal year ended June 30, 2005.

SHAREHOLDER FEES. The Trust does not charge any initial sales charge to buy shares or to
reinvest dividends. There are no exchange fees or redemption fees and no contingent
deferred sales charges (unless you buy Trust shares by exchanging Class A shares of other
eligible funds that were purchased subject to a contingent deferred sales charge, as
described in "How to Sell Shares").

Annual Trust Operating Expenses (deducted from Trust assets):
(% of average daily net assets)

------------------------------------------------------------------------------
Management Fees 0.33%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Distribution and/or Service (12b-1) Fees 0.20%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Other Expenses 0.15%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total Annual Operating Expenses 0.68%
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The Trust's operating expenses are shown without giving effect to a contractual expense
limitation that was in effect for part of the fiscal year. With that expense limitation
the "Management Fees" were 0.18% and the "Total Annual Operating Expenses" were 0.52%. This
former expense limitation is described in the Statement of Additional Information.

EXAMPLE. The following example is intended to help you compare the cost of investing in
the Trust with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in shares of the Trust for the time periods indicated and reinvest your
dividends and distributions. The example also assumes that your investment has a 5% return
each year and that the Trust's operating expenses remain the same. Your actual costs may
be higher or lower, because expenses will vary over time. Based on these assumptions your
expenses would be as follows, whether or not you redeem your investment at the end of each
period:

-----------------------------------------------------------------------
1 year 3 years 5 years 10 years
-----------------------------------------------------------------------
-----------------------------------------------------------------------
$70 $218 $380 $849
-----------------------------------------------------------------------

About the Trust's Investments

THE TRUST'S PRINCIPAL INVESTMENT POLICIES AND RISKS. The Trust invests in money market
instruments meeting quality, maturity and diversification standards established by its
Board of Trustees as well as rules that apply to money market funds under the Investment
Company Act of 1940. The Statement of Additional Information contains more detailed
information about the Trust's investment policies and risks.

The Trust's investment manager, Centennial Asset Management Corporation (referred to
in this Prospectus as the Manager), tries to reduce risks by diversifying investments and
by carefully researching securities before they are purchased. The rate of the Trust's
income will vary, generally reflecting changes in overall short-term interest rates. There
is no assurance that the Trust will achieve its investment objective.

What Does the Trust Invest In? Money market instruments are high-quality, short-term debt
instruments. They may have fixed, variable or floating interest rates. All of the
Trust's money market instruments must meet the special diversification, quality and
maturity requirements set under the Investment Company Act and the special procedures
set by the Board described briefly below. The following is a brief description of the
types of money market instruments the Trust can invest in.

o U.S. Government Securities. The Trust invests in obligations issued or guaranteed by
the U.S. government or any of its agencies or instrumentalities. Some are direct
obligations of the U.S. Treasury, such as Treasury bills, notes and bonds, and are
supported by the full faith and credit of the United States. Other U.S. government
securities, such as pass-through certificates issued by the Government National
Mortgage Association (Ginnie Mae), are also supported by the full faith and credit of
the U.S. government. Some government securities, agencies or instrumentalities of
the U.S. government are supported by the right of the issuer to borrow from the U.S.
Treasury, such as securities of the Federal National Mortgage Association (Fannie
Mae). Others may be supported only by the credit of the instrumentality, such as
obligations of the Federal Home Loan Mortgage Corporation (Freddie Mac).

o Bank Obligations. The Trust can buy direct bank obligations, time deposits,
certificates of deposit and bankers' acceptances. These obligations must be
denominated in U.S. dollars, even if issued by a foreign bank.

o Commercial Paper. Commercial paper is a short-term, unsecured promissory note of a
domestic or foreign company or other financial firm. The Trust may buy commercial
paper only if it matures in nine months or less from the date of purchase.

o Corporate Debt Obligations. The Trust can invest in other short-term corporate debt
obligations. Please see "What Standards Apply to the Trust's Investments?" below for
more details.

o Other Money Market Instruments. The Trust can invest in money market obligations
other than those listed above if they are subject to repurchase agreements or
guaranteed as to their principal and interest by a corporation whose commercial paper
may be purchased by the Trust or by a domestic bank. The bank or guarantor must meet
credit criteria set by the Board.

Additionally, the Trust can buy other money market instruments that the Manager
approves under procedures adopted by the Board of Trustees from time to time. They must be
U.S. dollar-denominated short-term investments that the Manager determines to have minimal
credit risks.

Currently, the Board has approved the purchase of dollar-denominated obligations of
foreign banks payable in the U.S. or in London, England or certain other countries,
floating or variable rate demand notes, asset-backed securities, and bank loan
participation agreements. Their purchase may be subject to restrictions adopted by the
Board from time to time.

What Standards Apply to the Trust's Investments? Money market instruments are subject to
credit risk, the risk that the issuer might not make timely payments of interest on
the security or repay principal when it is due. The Trust can buy only those
instruments that meet standards set by the Investment Company Act for money market
funds and procedures adopted by the Board of Trustees. The Trust's Board of Trustees
has adopted procedures to evaluate securities for the Trust's portfolio and the
Manager has the responsibility to implement those procedures when selecting
investments for the Trust.

In general, the Trust buys only high-quality investments that the Manager believes
present minimal credit risk at the time of purchase. "High-quality" investments are:

o rated in one of the two highest short-term rating categories of two national rating
organizations, or
o rated by one rating organization in one of its two highest rating categories (if only
one rating organization has rated the investment), or
o unrated investments that the Manager determines are comparable in quality to the two
highest rating categories.

The procedures also limit the amount of the Trust's assets that can be invested in
the securities of any one issuer (other than the U.S. government, its agencies and
instrumentalities), to spread the Trust's investment risks. No security's maturity
will exceed the maximum time permitted under Rule 2a-7 (currently 397 days).
Finally, the Trust must maintain a dollar-weighted average portfolio maturity of not
more than 90 days, to reduce interest rate risks.

Can the Trust's Investment Objective and Policies Change? The Trust's Board of Trustees
can change non-fundamental policies without shareholder approval, although
significant changes will be described in amendments to this Prospectus. Fundamental
policies cannot be changed without the approval of a majority of the Trust's
outstanding voting shares. The Trust's investment objective is a fundamental policy.
Some investment restrictions that are fundamental policies are listed in the
Statement of Additional Information. An investment policy is not fundamental unless
this Prospectus or the Statement of Additional Information says that it is.

OTHER INVESTMENT STRATEGIES. To seek its objective, the Trust can use the investment
techniques and strategies described below. The Trust might not always use all of them.
These techniques have risks. The Statement of Additional Information contains more
information about some of these practices, including limitations on their use that are
designed to reduce the overall risks.

Floating Rate/Variable Rate Notes. The Trust can purchase investments with floating or
variable interest rates. Variable rates are adjustable at stated periodic
intervals. Floating rates are adjusted automatically according to a specified market
rate or benchmark for such investments, such as the prime rate of a bank. If the
maturity of an investment is greater than the maximum time permitted under Rule 2a-7
(currently 397 days), it can be purchased if it has a demand feature. That feature
must permit the Trust to recover the principal amount of the investment on not more
than 30 days' notice at any time, or at specified times not exceeding the maximum
time permitted under Rule 2a-7.

Asset-Backed Securities. The Trust can invest in asset-backed securities. These are
fractional interests in pools of consumer loans and other trade receivables, which
are the obligations of a number of different parties. The income from the underlying
pool is passed through to investors, such as the Trust. These investments might be
supported by a credit enhancement, such as a letter of credit, a guarantee or a
preference right. However, the credit enhancement generally applies only to a
fraction of the security's value. If the issuer of the security has no security
interest in the related collateral, there is the risk that the Trust could lose money
if the issuer defaults.

Repurchase Agreements. The Trust can enter into repurchase agreements. In a repurchase
transaction, the Trust buys a security and simultaneously sells it to the vendor for
delivery at a future date. Repurchase agreements must be fully collateralized.
However, if the vendor fails to pay the resale price on the delivery date, the Trust
may incur costs in disposing of the collateral and may experience losses if there is
any delay in its ability to do so. The Trust will not enter into repurchase
transactions that will cause more than 10% of the Trust's net assets to be subject to
repurchase agreements having a maturity beyond seven days. There is no limit on the
amount of the Trust's net assets that may be subject to repurchase agreements of
seven days or less.

Illiquid and Restricted Securities. Investments may be illiquid because they do not have
an active trading market, making it difficult to value them or dispose of them
promptly at an acceptable price. Restricted securities may have terms that limit
their resale to other investors or may require registration under applicable
securities laws before they may be sold publicly. The Trust will not invest more
than 10% of its net assets in illiquid securities. The Trust may invest up to 25% of
its net assets in restricted securities, subject to the 10% limit on illiquid
securities and restricted securities other than those sold to qualified institutional
purchasers. That limit does not apply to certain restricted securities that are
eligible for resale to qualified institutional purchasers or purchases of commercial
paper that may be sold without registration under the federal securities laws. The
Manager monitors holdings of illiquid securities on an ongoing basis to determine
whether to sell any holdings to maintain adequate liquidity. Difficulty in selling a
security may result in a loss to the Trust or additional costs.

PORTFOLIO HOLDINGS. The Trust's portfolio holdings are included in semi-annual and annual
reports that are distributed to shareholders of the Trust within 60 days after the
close of the period for which such report is being made. The Trust discloses its
portfolio holdings in its Statement of Investment on Form N-Q, which is filed with
the SEC no later than 60 days after the close of its first and third fiscal
quarters. These required filings are publicly available at the SEC. Therefore,
portfolio holdings of the Trust are made publicly available no later than 60 days
after the close of the Trust's fiscal quarters.

A description of the Trust's policies and procedures with respect to the disclosure
of the Trust's portfolio securities is available in the Trust's Statement of Additional
Information.

Centennial Tax Exempt Trust

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Prospectus dated October 14, 2005
Centennial Tax Exempt Trust is a money
market mutual fund. It seeks the
maximum short-term interest income
exempt from federal income taxes that
is consistent with low capital risk
and the maintenance of liquidity. The
Trust invests in short-term,
high-quality "money market" securities.

This Prospectus contains important
information about the Trust's
objective, its investment policies,
strategies and risks. It also
contains important information about
As with all mutual funds, the how to buy and sell shares of the
Securities and Exchange Commission has Trust and other account features.
not approved or disapproved the Trust's Please read this Prospectus carefully
securities nor has it determined that before you invest and keep it for
this Prospectus is accurate or future reference about your account.
complete. It is a criminal offense to
represent otherwise.
- ---------------------------------------------------------------------------------

A B O U T T H E T R U S T

The Trust's Investment Objective and Strategies

WHAT IS THE TRUST'S INVESTMENT OBJECTIVE? The Trust seeks the maximum short-term interest
income exempt from federal income taxes that is consistent with low capital risk and the
maintenance of liquidity.

WHAT DOES THE TRUST MAINLY INVEST IN? The Trust is a money market fund. It invests in a
variety of high-quality money market instruments to seek income. Money market instruments
are short-term, U.S. dollar denominated debt instruments issued by the U.S. government,
state governments, domestic and foreign corporations and financial institutions and other
entities. They include, for example, municipal securities, bank obligations, repurchase
agreements, commercial paper, other corporate debt obligations and government debt
obligations. To be considered "high-quality," generally they must be rated in one of the
two highest credit-quality categories for short-term securities by nationally recognized
rating services. If unrated, a security must be determined by the Trust's investment
manager to be of comparable quality to rated securities.

The Trust normally invests 100% of its assets in municipal securities. As a
fundamental policy, the Trust will invest under normal circumstances at least 80% of its
net assets (plus any borrowings for investment purposes) in securities investments the
income from which is exempt from federal income taxes. Securities that generate income that
is subject to alternative minimum taxes will not count towards that 80% threshold. The
balance of the Trust's assets can be invested in investments the income from which may be
taxable. The Trust will not invest more than 20% of its net assets in municipal securities
the income on which may be a tax preference item that would increase an individual
investor's alternative minimum tax.

WHO IS THE TRUST DESIGNED FOR? The Trust is designed for investors who are seeking income
that is exempt from federal income taxes at current money market rates while preserving the
value of their investment, because the Trust tries to keep its share price stable at
$1.00. Income on money market instruments tends to be lower than income on longer-term
debt securities, so the Trust's yield will likely be lower than the yield on longer-term
fixed income funds. The Trust does not invest for the purpose of seeking capital
appreciation or gains and is not a complete investment program.

Main Risks of Investing in the Trust

The Trust's Past Performance

The bar chart and table below show how the Trust's returns may vary over time, by showing
changes in the Trust's performance from year to year for the last 10 calendar years and
average annual total returns for the 1-, 5- and 10- year periods. Variability of returns is
one measure of the risks of investing in a money market fund. The Trust's past investment
performance does not predict how the Trust will perform in the future.

Annual Total Returns (as of 12/31 each year)

[See appendix to prospectus for annual total return data for bar chart.]

For the period from 1/1/05 through 9/30/05 the cumulative total return (not annualized) was
1.27%.
During the period shown in the bar chart, the highest return (not annualized) for a
calendar quarter was 0.91% (4th Q '00) and the lowest return for a calendar quarter (not
annualized) was 0.08% (3rd Q '03).

Average Annual Total Returns
for the periods ended December 31, 1 Year 5 Years 10 Years
2004
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--------------- --------------
Centennial Tax Exempt Trust 0.59% 1.49% 2.25%
(inception 9/8/81)
- ---------------------------------------------------------------------------------

The returns in the table measure the performance of a hypothetical account and assume that
all dividends have been reinvested in additional shares.

Fees and Expenses of the Trust

Annual Trust Operating Expenses (deducted from Trust assets):
(% of average daily net assets)

------------------------------------------------------------------------------
Management Fees 0.42%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Distribution and/or Service (12b-1) Fees 0.20%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Other Expenses 0.05%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total Annual Operating Expenses 0.67%
------------------------------------------------------------------------------
Expenses may vary in future years. "Other Expenses" include transfer agent fees, custodial
expenses, and accounting and legal expenses the Trust pays. The Transfer Agent has
voluntarily undertaken to limit the transfer agent fees to 0.35% of average daily net
assets per fiscal year. That undertaking may be amended or withdrawn at any time. For the
Trust's fiscal year ended June 30, 2005, the transfer agent fees did not exceed the expense
limit described above. The Manager voluntarily paid a one-time reimbursement of Trust
expenses. After the waiver the actual "Other Expenses" and "Total Annual Operating
Expenses" as a percentage of average net assets were 0.03% and 0.65%.

EXAMPLE. The following example is intended to help you compare the cost of investing in the
Trust with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in shares of the Trust for the time periods indicated and reinvest your
dividends and distributions. The example also assumes that your investment has a 5% return
each year and that the Trust's operating expenses remain the same. Your actual costs may
be higher or lower, because expenses will vary over time. Based on these assumptions your
expenses would be as follows, whether or not you redeem your investment at the end of each
period:

-----------------------------------------------------------------------------
1 year 3 years 5 years 10 years
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
$68 $214 $373 $835
-----------------------------------------------------------------------------

About the Trust's Investments

What Does the Trust Invest In? Money market instruments are high-quality, short-term debt
instruments. They may have fixed, variable or floating interest rates. All of the
Trust's money market instruments must meet the special diversification, quality and
maturity requirements set under the Investment Company Act and the special procedures
set by the Board described briefly below. The following is a brief description of
the types of money market instruments the Trust can invest in.

o Municipal Securities. The Trust buys municipal bonds and notes, tax-exempt
commercial paper, certificates of participation in municipal leases and other debt
obligations. These are debt obligations issued by the governments of states, their
political subdivisions (such as cities, towns and counties), or the District of
Columbia, or by their agencies, instrumentalities and authorities, if the interest
paid on the security is not subject to federal individual income tax in the opinion
of bond counsel to the issuer. All of these types of debt obligations are referred
to as "municipal securities" in this Prospectus.

o Other Money Market Instruments. Up to 20% of the Trust's assets can be invested in
investments, the income from which may be taxable. The Trust's taxable investments
include repurchase agreements, municipal securities issued to benefit a private user
and certain temporary investments. These investments are described below under
"Other Investment Strategies" or in the Statement of Additional Information.
Normally, the Trust will not invest more than 20% of its total assets in taxable
investments.

Additionally, the Trust can buy other money market instruments that the Manager
approves under procedures adopted by its Board of Trustees from time to time. They
must be U.S. dollar-denominated short-term investments that the Manager determines to
have minimal credit risks.

In general, the Trust buys only high-quality investments that the Manager believes present
minimal credit risk at the time of purchase. "High-quality" investments are:
o rated in one of the two highest short-term rating categories of two national rating
organizations, or
o rated by one rating organization in one of its two highest rating categories (if only
one rating organization has rated the investment), or
o unrated investments that the Manager determines are comparable in quality to the two
highest rating categories.

The procedures also limit the amount of the Trust's assets that can be invested in
the securities of any one issuer (other than the U.S. government, its agencies and
instrumentalities), to spread the Trust's investment risks. The Trust must also maintain an
average portfolio maturity of not more than 90 days, to reduce interest rate risks.
Additionally, the remaining maturity of any single portfolio investment may not exceed the
maximum time permitted under Rule 2a-7 (currently 397 days).

Can the Trust's Investment Objective and Policies Change? The Trust's Board can change
non-fundamental policies without shareholder approval, although significant changes
will be described in amendments to this Prospectus. Fundamental policies cannot be
changed without the approval of a majority of the Trust's outstanding voting shares.
The Trust's investment objective is a fundamental policy. Some investment
restrictions that are fundamental policies are listed in the Statement of Additional
Information. An investment policy is not fundamental unless this Prospectus or the
Statement of Additional Information says that it is.

Floating Rate/Variable Rate Notes. The Trust can purchase investments with floating or
variable interest rates. Variable rates are adjustable at stated periodic
intervals. Floating rates are adjusted automatically according to a specified market
rate or benchmark for such investment, such as the prime rate of a bank. If the
maturity of an investment is greater than the maximum time permitted under Rule 2a-7
(currently 397 days), it can be purchased if it has a demand feature. That feature
must permit the Trust to recover the principal amount of the investment on not more
than 30 days' notice at any time, or at specified times not exceeding the maximum
time permitted under Rule 2a-7 (currently 397 days) from the date of purchase.

"When-Issued" and "Delayed-Delivery" Transactions. The Trust can purchase municipal
securities on a "when-issued" basis and can purchase or sell such securities on a
"delayed-delivery" basis. These terms refer to securities that have been created and
for which a market exists, but which are not available for immediate delivery. The
Trust does not intend to make such purchases for speculative purposes. During the
period between the purchase and settlement, no payment is made for the security and
no interest accrues to the buyer from the investment. There is a risk of loss to the
Trust if the value of the security declines prior to the settlement date.

Municipal Lease Obligations. Municipal leases are used by state and local governments to
obtain funds to acquire land, equipment or facilities. The Trust can invest in
certificates of participation that represent a proportionate interest in payments
made under municipal lease obligations. If the government stops making payments or
transfers its payment obligations to a private entity, the obligation could lose
value or become taxable. Some of these obligations might not have an active trading
market and would be subject to the Trust's limits on "illiquid" securities described
below. From time to time the Trust can invest more than 5% of its net assets in
municipal lease obligations that the Manager has determined to be liquid under
guidelines set by the Trust's Board of Trustees.

Repurchase Agreements. The Trust can enter into repurchase agreements. In a repurchase
transaction, the Trust buys a security and simultaneously sells it to the vendor for
delivery at a future date. Repurchase agreements must be fully collateralized.
However, if the vendor fails to pay the resale price on the delivery date, the Trust
may incur costs in disposing of the collateral and may experience losses if there is
any delay in its ability to do so. The Trust will not enter into repurchase
transactions that will cause more than 10% of the Trust's net assets to be subject to
repurchase agreements having a maturity beyond seven days. There is no limit on the
amount of the Trust's net assets that can be subject to repurchase agreements of
seven days or less. Income earned on repurchase transactions is not tax exempt and
accordingly, under normal market conditions, the Trust will limit its investments in
repurchase transactions to 20% of its total assets.

Illiquid and Restricted Securities. Investments may be illiquid because they do not have
an active trading market, making it difficult to value them or dispose of them
promptly at an acceptable price. Restricted securities may have terms that limit
their resale to other investors or may require registration under applicable
securities laws before they may be sold publicly. The Trust will not invest more
than 10% of its net assets in illiquid securities. That limit does not apply to
certain restricted securities that are eligible for resale to qualified institutional
purchasers or purchases of commercial paper that may be sold without registration
under the federal securities laws. The Manager monitors holdings of illiquid
securities on an ongoing basis to determine whether to sell any holdings to maintain
adequate liquidity. Difficulty in selling a security may result in a loss to the
Trust or additional costs.

Demand Features and Guarantees. The Trust can invest a significant percentage of its assets
in municipal securities that have demand features, guarantees or similar credit and
liquidity enhancements. A demand feature permits the holder of the security to sell
the security within a specified period of time at a stated price and entitles the
holder of the security to receive an amount equal to the approximate amortized cost
of the security plus accrued interest. A guarantee permits the holder of the security
to receive, upon presentment to the guarantor, the principal amount of the underlying
security plus accrued interest when due or upon default. A guarantee is the
unconditional obligation of an entity other than the issuer of the security. These
securities are described in the Statement of Additional Information.

Temporary Defensive and Interim Investments. In times of unstable adverse market,
political or economic conditions, the Trust can invest up to 100% of its assets in
temporary or interim investments that are inconsistent with the Trust's principal
investment strategies. These temporary investments can include:
o obligations issued or guaranteed by the U.S. government or its agencies or
instrumentalities,
o bankers' acceptances; taxable commercial paper rated in the highest category by a
rating organization,
o short-term taxable debt obligations rated in one of the two highest rating categories
of a rating organization,
o certificates of deposit of domestic banks, and
o repurchase agreements.

To the extent the Trust assumes a temporary defensive position; a significant portion
of the Trust's distributions may be taxable.

A description of the Trust's policies and procedures with respect to the disclosure
of the Trust's portfolio securities is available in the Trust's Statement of Additional
Information.

Centennial Government Trust

- ---------------------------------------------------------------------------------

Prospectus dated October 14 ,2005
Centennial Government Trust is a money
market mutual fund. It seeks a high
level of current income consistent
with preserving capital and
maintaining liquidity. The Trust
invests in short-term, high-quality
"money market" investments.

A B O U T T H E T R U S T

The Trust's Investment Objective and Strategies

WHAT IS THE TRUST'S INVESTMENT OBJECTIVE? The Trust seeks a high level of current income
that is consistent with the preservation of capital and the maintenance of liquidity.

WHAT DOES THE TRUST MAINLY INVEST IN? The Trust is a money market fund. It invests in a
variety of high-quality money market instruments to seek income. The Trust invests
principally in short-term, U.S. dollar denominated debt instruments issued by the U.S.
government, its agencies and instrumentalities. To be considered "high-quality," generally
they must be rated in one of the two highest credit-quality categories for short-term
securities by nationally recognized rating services. If unrated, a security must be
determined by the Trust's investment manager to be of comparable quality to rated
securities. Many of the securities issued by the U.S. government are not rated, but the
Trust may purchase them because they meet the "high quality" standards of the Trust.

The Trust will invest under normal circumstances at least 80% of its net assets (plus
any borrowings for investment purposes) in debt instruments issued by the U.S. government,
its agencies and instrumentalities. Although this is not a fundamental policy, the amount
so invested will not be changed by the Board without providing shareholders at least 60
days prior notice of the change.

WHO IS THE TRUST DESIGNED FOR? The Trust is designed for investors who are seeking income
at current money market rates while preserving the value of their investment, because the
Trust tries to keep its share price stable at $1.00. Income on money market instruments
tends to be lower than income on longer-term debt securities, so the Trust's yield will
likely be lower than the yield on longer-term fixed income funds. The Trust does not
invest for the purpose of seeking capital appreciation or gains and is not a complete
investment program.

Main Risks of Investing in the Trust

All investments carry risks to some degree. Funds that invest in debt obligations
for income may be subject to credit risks and interest rate risks. There are risks that any
of the Trust's holdings could have its credit rating downgraded, or the issuer could
default, or that interest rates could rise sharply, causing the value of the Trust's
investments (and its share price) to fall. As a result, there is a risk that the Trust's
shares could fall below $1.00 per share. If there is a high redemption demand for the
Trust's shares that was not anticipated, portfolio securities might have to be sold prior
to their maturity at a loss. Also, there is the risk that the value of your investment
could be eroded over time by the effects of inflation, and that poor security selection
could cause the Trust to underperform other funds with similar objectives.

Annual Total Returns (as of 12/31 each year)

[See appendix to prospectus for annual total return data for bar chart.]

For the period from 1/1/05 through 9/30/05 the cumulative total return (not annualized) was
1.67%.
During the period shown in the bar chart, the highest return (not annualized) for a
calendar quarter was1.48%
(4th Q'00) and the lowest return (not annualized) for a calendar quarter was 0.09 % (2nd Q
'04)).

Average Annual Total Returns
for the periods ended December 31, 1 Year 5 Years 10 Years
2004
- ---------------------------------------------------------------------------------
--------------- --------------
Centennial Government Trust 0.67% 2.39% 3.60%
(inception 10/5/81)
- ---------------------------------------------------------------------------------

The returns in the table measure the performance of a hypothetical account and assume that
all dividends have been reinvested in additional shares.

Fees and Expenses of the Trust

The Trust pays a variety of expenses directly for management of its assets, administration
and other services. Those expenses are subtracted from the Trust's assets to calculate the
Trust's net asset value per share. All shareholders therefore pay those expenses
indirectly. The following tables are meant to help you understand the fees and expenses
you may pay if you buy and hold shares of the Trust. The numbers below are based upon the
Trust's expenses during its fiscal year ended June 30, 2005.

Annual Trust Operating Expenses (deducted from Trust assets):
(% of average daily net assets)

------------------------------------------------------------------------------
Management Fees 0.44%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Distribution and/or Service (12b-1) Fees 0.20%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Other Expenses 0.09%
------------------------------------------------------------------------------
------------------------------------------------------------------------------
Total Annual Operating Expenses 0.73%
------------------------------------------------------------------------------
Expenses may very in future years. "Other Expenses" include transfer agent fees, custodial
expenses, and accounting and legal expenses the Trust pays. The Transfer Agent has
voluntarily undertaken to the Trust to limit the transfer agent fees to 0.35% of average
daily net assets per fiscal year. That undertaking may be amended or withdrawn at any
time. For the Trust's fiscal year ended June 30, 2005, the transfer agent fees did not
exceed the expense limitation described above.

EXAMPLE. The following example is intended to help you compare the cost of investing in the
Trust with the cost of investing in other mutual funds. The example assumes that you
invest $10,000 in shares of the Trust for the time periods indicated and reinvest your
dividends and distributions. The example also assumes that your investment has a 5% return
each year and that the Trust's operating expenses remain the same. Your actual costs may
be higher or lower, because expenses will vary over time. Based on these assumptions your
expenses would be as follows whether or not you redeem your investment at the end of each
period:

--------------------------------------------------------------------------
1 year 3 years 5 years 10 years
--------------------------------------------------------------------------
--------------------------------------------------------------------------
$75 $234 $407 $910
--------------------------------------------------------------------------

About the Trust's Investments

What Does the Trust Invest In? Money market instruments are high-quality, short-term debt
instruments. They may have fixed, variable or floating interest rates. All of the
Trust's money market instruments must meet the special diversification, quality and
maturity requirements set under the Investment Company Act and the special procedures
set by the Board described briefly below. The following is a brief description of
the types of money market instruments the Trust can invest in.

o U.S. Government Securities. The Trust invests mainly in obligations issued or
guaranteed by the U.S. government or any of its agencies or instrumentalities. Some
are direct obligations of the U.S. Treasury, such as Treasury bills, notes and bonds,
and are supported by the full faith and credit of the United States. Although these
U.S. Government Securities are not rated, they are "high quality" investments under
the rules that apply to money market funds. Other U.S. government securities, such
as pass-through certificates issued by the Government National Mortgage Association
(Ginnie Mae), are also supported by the full faith and credit of the U.S.
government. Some government securities, agencies or instrumentalities of the U.S.
government are supported by the right of the issuer to borrow from the U.S. Treasury,
such as securities of the Federal National Mortgage Association (Fannie Mae). Others
may be supported only by the credit of the instrumentality, such as obligations of
the Federal Home Loan Mortgage Corporation (Freddie Mac).

o Other Money Market Instruments. The Trust can invest in variable or floating rate
notes, variable rate master demand notes or in master demand notes. The Trust can
also purchase other debt obligations with a length of permitted maturity up to the
maximum permitted under Rule 2a-7 (currently 397 days) from the date of purchase. It
may purchase debt obligations that have been called for redemption by the issuer if
the redemption will occur within the length of permitted maturity up to the maximum
permitted under Rule 2a-7 (currently 397 days). Please refer to "What Standards Apply
to the Trust's Investments?" below for more details.

Additionally, the Trust can buy other money market instruments that the Manager
approves under procedures adopted by its Board of Trustees from time to time. They must be
U.S. dollar-denominated short-term investments that the Manager determines to have minimal
credit risks.

In general, the Trust buys only high-quality investments that the Manager believes present
minimal credit risk at the time of purchase. "High-quality" investments are:

The procedures also limit the amount of the Trust's assets that can be invested in
the securities of any one issuer (other than the U.S. government, its agencies and
instrumentalities), to spread the Trust's investment risks. According to the standards,
the Trust can invest without limit in U.S. government securities because of their limited
investment risks. No security's maturity will exceed the maximum time permitted under Rule
2a-7 (currently 397 days). Finally, the Trust must maintain a dollar-weighted average
portfolio maturity of not more than 90 days, to reduce interest rate risks.

Can the Trust's Investment Objective and Policies Change? The Trust's Board of Trustees
can change non-fundamental policies without shareholder approval, although
significant changes will be described in amendments to this Prospectus. Fundamental
policies cannot be changed without the approval of a majority of the Trust's
outstanding voting shares. The Trust's investment objective is a fundamental policy.
Some of the investment restrictions that are fundamental policies are listed in the
Statement of Additional Information. An investment policy is not fundamental unless
this Prospectus or the Statement of Additional Information says that it is.

Floating Rate/Variable Rate Notes. The Trust can purchase investments with floating or
variable interest rates. Variable rates are adjustable at stated periodic
intervals. Floating rates are adjusted automatically according to a specified market
rate or benchmark for such investment, such as the prime rate of a bank. If the
maturity of an investment is greater than the maximum time permitted under Rule 2a-7
(currently 397 days), it can be purchased if it has a demand feature. That feature
must permit the Trust to recover the principal amount of the investment on not more
than 30 days' notice at any time, or at specified times not exceeding the maximum
time permitted under Rule 2a-7 (currently 397 days).

Illiquid and Restricted Securities. Investments may be illiquid because they do not have an
active trading market, making it difficult to value them or dispose of them promptly
at an acceptable price. Restricted securities may have terms that limit their resale
to other investors or may require registration under applicable securities laws
before they may be sold publicly. The Trust will not invest more than 10% of its net
assets in illiquid securities. That limit does not apply to certain restricted
securities that are eligible for resale to qualified institutional purchasers or
purchases of commercial paper that may be sold without registration under the federal
securities laws. The Manager monitors holdings of illiquid securities on an ongoing
basis to determine whether to sell any holdings to maintain adequate liquidity.
Difficulty in selling a security may result in a loss to the Trust or additional
costs.

A description of the Trust's policies and procedures with respect to the disclosure
of the Trust's portfolio securities is available in the Trust's Statement of Additional
Information.

I N V E S T I N G I N T H E T R U S T S

The information below applies to Centennial Money Market Trust, Centennial Tax Exempt Trust
and Centennial Government Trust. Each is referred to as a "Trust" and they are
collectively referred to as the "Trusts." Unless otherwise indicated, this information
applies to each Trust.

How the Trusts are Managed

THE MANAGER. The investment advisor for the Trusts is the Manager, Centennial Asset
Management Corporation, a wholly owned subsidiary of OppenheimerFunds, Inc. The Manager
chooses each of the Trust's investments and handles its day-to-day business. The Manager
carries out its duties subject to certain policies established by the Trust's Board of
Trustees, under an investment advisory agreement with each Trust that states the Manager's
responsibilities. The agreement sets the fees the Trust pays to the Manager and describes
the expenses that the Trust is responsible to pay to conduct its business.

The Manager has been an investment advisor since 1978. The Manager and its parent
company and controlled affiliates managed more than $190 billion in assets as of September
30, 2005, including other Oppenheimer and Centennial funds with more than 6 million
shareholder accounts. The Manager is located at 6803 South Tucson Way, Centennial,
Colorado 80112.

Advisory Fees. Under each investment advisory agreement, a Trust pays the Manager an
advisory fee at an annual rate that declines on additional assets as the Trust
grows. That fee is computed on the net assets of the respective Trust as of the
close of each business day.

o Centennial Money Market Trust. The annual management fee rates are: 0.500% of the
first $250 million of the Trust's net assets, 0.475% of the next $250 million, 0.450%
of the next $250 million, 0.425% of the next $250 million, 0.400% of the next $250
million, 0.375% of the next $250 million, 0.350% of the next $500 million, and 0.325%
of net assets in excess of $2 billion. The Trust's management fees for its fiscal
year ended June 30, 2005, were 0. 33% of the Trust's average annual net assets.

o Centennial Government Trust. The annual management fee rates are: 0.500% of the
first $250 million of the Trust's net assets, 0.475% of the next $250 million, 0.450%
of the next $250 million, 0.425% of the next $250 million, 0.400% of the next $250
million, 0.375% of the next $250 million, and 0.350% of net assets in excess of $2
billion. The Trust's management fees for its fiscal year ended June 30, 2005, were
0.44% of the Trust's average annual net assets.

o Centennial Tax Exempt Trust. The annual management fee rates applicable to the Trust
are as follows: 0.500% of the first $250 million of the Trust's net assets, 0.475% of
the next $250 million, 0.450% of the next $250 million, 0.425% of the next $250
million, 0.400% of the next $250 million, 0.375% of the next $250 million, 0.350% of
the next $500 million, and 0.325% of net assets in excess of $2 billion. Under the
agreement, when the value of the Trust's net assets is less than $1.5 billion, the
annual fee payable to the Manager shall be reduced by $100,000 based on average net
assets computed daily and paid monthly at the annual rates. However, the annual fee
cannot be less than $0. The Trust's management fees for its fiscal year ended June
30, 2005 were 0. 42% of the Trust's average annual net assets.

A discussion of the matters considered by the Trusts' Independent Trustees, in
approving the Trusts' investment advisory agreement, is included in the Trusts' annual
report to shareholders for the period ended June 30, 2005.

Portfolio Managers. The portfolio managers of the Trusts are the persons principally
responsible for the day-to-day management of the Trusts' portfolios. The portfolio
managers of Centennial Money Market Trust and Centennial Government Trust are Carol E.
Wolf and Barry D. Weiss. Ms. Wolf has had this responsibility since November 1988 for
Centennial Government Trust and October 1990 for Centennial Money Market Trust and Mr.
Weiss, since August 2001. Each is an officer of Centennial Money Market Trust and
Centennial Government Trust. Ms. Wolf is a Senior Vice President and Mr. Weiss is a
Vice President of the Manager, and each is an officer and portfolio manager of other
funds for which the Manager or an affiliate serves as investment advisor. Prior to
joining the Manager as Senior Credit Analyst in February, 2000, Mr. Weiss was an
Associate Director, Fitch IBCA Inc. (April 1998 - February 2000). The portfolio
manager of Centennial Tax Exempt Trust is John C. Bonnell (since May 2004). Mr.
Bonnell is a Vice President of the Manager and of Centennial Tax Exempt Trust and an
officer and portfolio manager of other funds for which the Manager or an affiliate
serves as investment advisor. Prior to joining the Manager, he had been a portfolio
manager at Strong Financial Corporation (1999-2004).

The Statement of Additional Information provides additional information about the
portfolio managers' compensation, other accounts they manage and their ownership of Trust
shares.

A B O U T Y O U R A C C O U N T

How to Buy Shares

AT WHAT PRICE ARE SHARES SOLD? Shares of each Trust are sold at their offering price,
which is the net asset value per share without any sales charge. The net asset value per
share will normally remain fixed at $1.00 per share. However, there is no guarantee that a
Trust will maintain a stable net asset value of $1.00 per share.

The offering price that applies to a purchase order is based on the next calculation
of the net asset value per share that is made after the Distributor (Centennial Asset
Management Corporation) or the Sub-Distributor (OppenheimerFunds Distributor, Inc.)
receives the purchase order at its offices in Colorado, or after any agent appointed by the
Sub-Distributor receives the order and sends it to the Sub-Distributor as described below.

How is a Trust's Net Asset Value Determined? The net asset value of shares of each Trust
is normally determined twice each day, at 12:00 Noon and at 4:00 p.m., on each day
the New York Stock Exchange (the "NYSE") is open for trading (referred to in this
Prospectus as a "regular business day"). All references to time in this Prospectus
mean "Eastern time."

The net asset value per share is determined by dividing the value of a Trust's net
assets by the number of shares that are outstanding. Under a policy adopted by the Board of
Trustees of the Trusts, each Trust uses the amortized cost method to value its securities
to determine net asset value.

The shares of each Trust offered by this Prospectus are considered to be Class A
shares for the purposes of exchanging them or reinvesting distributions among other
eligible funds that offer more than one class of shares.

If, after the close of the principal market on which a security held by the Trusts is
traded, and before the time the Trusts' securities are priced that day, an event occurs
that the Manager deems likely to cause a material change in the value of such security, the
Trusts' Board of Trustees has authorized the Manager, subject to the Board's review, to
ascertain a fair value for such security. A security's valuation may differ depending on
the method used for determining value.

HOW MUCH MUST YOU INVEST? You can open an account with a minimum initial investment
described below, depending on how you buy and pay for your shares. You can make additional
purchases at any time with as little as $25. The minimum investment requirements do not
apply to reinvesting distributions from the Trust or other eligible funds (a list of them
appears in the Statement of Additional Information, or you can ask your broker/dealer or
call the Transfer Agent) or reinvesting distributions from unit investment trusts that have
made arrangements with the Distributor.

HOW ARE SHARES PURCHASED? You can buy shares in one of several ways:

Buying Shares Through a Broker/Dealer's Automatic Purchase and Redemption Program. You can
buy shares of a Trust through a broker/dealer that has a sales agreement with the
Trust's Distributor or Sub-Distributor that allows shares to be purchased through the
broker/dealer's Automatic Purchase and Redemption Program. Shares of each Trust are
sold mainly to customers of participating broker/dealers that offer the Trusts'
shares under these special purchase programs. If you participate in an Automatic
Purchase and Redemption Program established by your broker/dealer, your broker/dealer
buys shares of the Trust for your account with the broker/dealer. Program
participants should also read the description of the program provided by their
broker/dealer.

Buying Shares Through Your Broker/Dealer. If you do not participate in an Automatic
Purchase and Redemption Program, you can buy shares of a Trust through any
broker/dealer that has a sales agreement with the Distributor or Sub-Distributor.
Your broker/dealer will place your order with the Distributor on your behalf. A
broker/dealer may charge for that service.

Buying Shares Directly Through the Sub-Distributor. You can also purchase shares directly
through the Trusts' Sub-Distributor. Shareholders who make purchases directly and
hold shares in their own names are referred to as "direct shareholders" in this
Prospectus.

The Sub-Distributor may appoint certain servicing agents to accept purchase (and
redemption) orders, including broker/dealers that have established Automatic Purchase and
Redemption Programs. The Distributor or Sub-Distributor, in their sole discretion, may
reject any purchase order for shares of a Trust.

AUTOMATIC PURCHASE AND REDEMPTION PROGRAM. If you buy shares of a Trust through your
broker/dealer's Automatic Purchase and Redemption Program, your broker/dealer will buy your
shares for your Program Account and will hold your shares in your broker/dealer's name.
These purchases will be made under the procedures described in "Guaranteed Payment
Procedures" below. Your Automatic Purchase and Redemption Program Account may have minimum
investment requirements established by your broker/dealer. You should direct all questions
about your Automatic Purchase and Redemption Program to your broker/dealer, because the
Trusts' Transfer Agent does not have access to information about your account under that
Program.

Guaranteed Payment Procedures. Some broker/dealers may have arrangements with the
Distributor to enable them to place purchase orders for shares of a Trust and to
guarantee that the Trusts' custodian bank will receive Federal Funds to pay for the
shares prior to specified times. Broker/dealers whose clients participate in
Automatic Purchase and Redemption Programs may use these guaranteed payment
procedures to pay for purchases of shares of a Trust.

o If the Distributor receives a purchase order before 12:00 Noon on a regular business
day with the broker/dealer's guarantee that the Trusts' custodian bank will receive
payment for those shares in Federal Funds by 2:00 p.m. on that same day, the order
will be effected at the net asset value determined at 12:00 Noon that day.
Distributions will begin to accrue on the shares on that day if the Federal Funds are
received by the required time.

o If the Distributor receives a purchase order after 12:00 Noon on a regular business
day with the broker/dealer's guarantee that the Trusts' custodian bank will receive
payment for those shares in Federal Funds by 2:00 p.m. on that same day, the order
will be effected at the net asset value determined at 4:00 p.m. that day.
Distributions will begin to accrue on the shares on that day if the Federal Funds are
received by the required time.

o If the Distributor receives a purchase order between 12:00 Noon and 4:00 p.m. on a
regular business day with the broker/dealer's guarantee that the Trusts' custodian
bank will receive payment for those shares in Federal Funds by 4:00 p.m. the next
regular business day, the order will be effected at the net asset value determined at
4:00 p.m. on the day the order is received and distributions will begin to accrue on
the shares purchased on the next regular business day if the Federal Funds are
received by the required time.

HOW CAN DIRECT SHAREHOLDERS BUY SHARES? Direct shareholders can buy shares of a Trust by
completing a Centennial Funds new account application and sending it to the
Sub-Distributor, OppenheimerFunds Distributor, Inc., P.O. Box 5143, Denver, Colorado
80217. Payment must be made by check or by Federal Funds wire as described below. If you
don't list a broker/dealer on the application, the Sub-Distributor, will act as your agent
in buying the shares. However, we recommend that you discuss your investment with a
financial advisor before you make a purchase to be sure that the selected Trust is
appropriate for you.

Each Trust intends to be as fully invested as possible to maximize its yield.
Therefore, newly purchased shares normally will begin to accrue distributions after the
Sub-Distributor or its agent accepts your purchase order, starting on the business day
after the Trust receives Federal Funds from the purchase payment.

Payment by Check. Direct shareholders may pay for purchases of shares of a Trust by check.
Send your check, payable to "OppenheimerFunds Distributor, Inc.," along with your
application and other documents to the address listed above. For initial purchases,
your check should be payable in U.S. dollars and drawn on a U.S. bank so that
distributions will begin to accrue on the next regular business day after the
Sub-Distributor accepts your purchase order. If your check is not drawn on a U.S.
bank and is not payable in U.S. dollars, the shares will not be purchased until the
Sub-Distributor is able to convert the purchase payment to Federal Funds. In that
case distributions will begin to accrue on the purchased shares on the next regular
business day after the purchase is made. The minimum initial investment for direct
shareholders by check is $500.

Payment by Federal Funds Wire. Direct shareholders may pay for purchases of shares of a
Trust by Federal Funds wire. You must also forward your application and other
documents to the address listed above. Before sending a wire, call the
Sub-Distributor's Wire Department at 1.800.525.9310 (toll-free from within the U.S.)
or 303.768.3200 (from outside the U.S.) to notify the Sub-Distributor of the wire,
and to receive further instructions.

Distributions will begin to accrue on the purchased shares on the purchase date that is a
regular business day if the Federal Funds from your wire and the application are received
by the Sub-Distributor and accepted by 12:00 Noon. If the Sub-Distributor receives the
Federal Funds from your wire and accepts the purchase order between 12:00 Noon and 4:00
p.m. on the purchase date, distributions will begin to accrue on the shares on the next
regular business day. The minimum investment by Federal Funds Wire is $2,500.

Buying Shares Through Automatic Investment Plans. Direct shareholders can purchase shares
of a Trust automatically each month by authorizing the Trust's Transfer Agent to
debit your account at a U.S. domestic bank or other financial institution. Details
are in the Automatic Investment Plan application and the Statement of Additional
Information. The minimum monthly purchase is $25.

Service (12b-1) Plans. Each Trust has adopted a service plan. It reimburses the
Distributor for a portion of its costs incurred for services provided to accounts
that hold shares of a Trust. Reimbursement is made periodically depending on asset
size, at an annual rate of up to 0.20% of the average annual net assets of the Trust.
The Distributor currently uses all of those fees to pay dealers, brokers, banks and
other financial institutions periodically for providing personal services and
maintenance of accounts of their customers that hold shares of the Trust.

In addition, the Manager and the Distributor may make substantial payments to dealers
or other financial intermediaries and service providers for distribution and/or
shareholder servicing activities, out of their own resources, including the profits
from the advisory fees the Manager receives from the Trust. Some of these
distribution-related payments may be made to dealers or financial intermediaries for
marketing, promotional or related expenses; these payments are often referred to as
"revenue sharing." In some circumstances, those types of payments may create an
incentive for a dealer or financial intermediary or its representatives to recommend
or offer shares of the Fund or other Oppenheimer funds to its customers. The
Statement of Additional Information contains more information about these payments.
You should ask your dealer or financial intermediary for details about any such
payments it receives, or any other fees or expenses it may charge in addition to the
fees and expenses of the Fund.

Retirement Plans. Direct shareholders may buy shares of Centennial Money Market Trust or
Centennial Government Trust for a retirement plan account. If you participate in a
plan sponsored by your employer, the plan trustee or administrator must buy the
shares for your plan account. The Sub-Distributor also offers a number of different
retirement plans that individuals and employers can use:
Individual Retirement Accounts (IRAs). These include regular IRAs, Roth IRAs, SIMPLE
IRAs, and rollover IRAs.
o SEP-IRAs. These are Simplified Employee Pension Plan IRAs for small business owners
or self-employed individuals.
o 403(b)(7) Custodial Plans. These are tax-deferred plans for employees of eligible
tax-exempt organizations, such as schools, hospitals and charitable organizations.
o 401(k) Plans. These are special retirement plans for businesses.
o Pension and Profit-Sharing Plans. These plans are designed for businesses and
self-employed individuals.

Please call the Sub-Distributor for retirement plan documents, which include
applications and important plan information.

How to Sell Shares

You can sell (redeem) some or all of your shares on any regular business day. Your shares
will be sold at the next net asset value calculated after your order is received in proper
form (which means that it must comply with the procedures described below) and is accepted
by the Transfer Agent.

HOW CAN PROGRAM PARTICIPANTS SELL SHARES? If you participate in an Automatic Purchase and
Redemption Program sponsored by your broker/dealer, you must redeem shares held in your
Program Account by contacting your broker/dealer firm, or you can redeem shares by writing
checks as described below. You should not contact the Trusts or their Transfer Agent
directly to redeem shares held in your Program Account. You may also arrange (but only
through your broker/dealer) to have the proceeds of redeemed Trust shares sent by Federal
Funds wire, as described below in "Sending Redemption Proceeds by Wire."

HOW CAN DIRECT SHAREHOLDERS REDEEM SHARES? Direct shareholders can redeem their shares by
writing a letter to the Transfer Agent, by wire, by using a Trust's checkwriting privilege,
or by telephone. You can also set up Automatic Withdrawal Plans to redeem shares on a
regular basis. If you have questions about any of these procedures, and especially if you
are redeeming shares in a special situation, such as due to the death of the owner or from
a retirement plan account, please call the Transfer Agent first, at 1.800.525.9310 for
assistance.

Certain Requests Require a Signature Guarantee. To protect you and the Trusts from fraud,
the following redemption requests for accounts of direct shareholders must be in
writing and must include a signature guarantee (although there may be other
situations that also require a signature guarantee):
o You wish to redeem more than $100,000 and receive a check.
o The redemption check is not payable to all shareholders listed on the account
statement.
o The redemption check is not sent to the address of record on your account statement.
o Shares are being transferred to an account with a different owner or name.
o Shares are being redeemed by someone (such as an Executor) other than the owners.

Where Can Direct Shareholders Have Their Signatures Guaranteed? The Transfer Agent will
accept a guarantee of your signature by a number of financial institutions,
including:
o a U.S. bank, trust company, credit union or savings association,
o a foreign bank that has a U.S. correspondent bank,
o a U.S. registered dealer or broker in securities, municipal securities or government
securities, or
o a U.S. national securities exchange, a registered securities association or a
clearing agency.

If you are signing on behalf of a corporation, partnership or other business or as a
fiduciary, you must also include your title in the signature.

How Can Direct Shareholders Sell Shares by Mail? Write a letter of instruction to the
Transfer Agent that includes:
o Your name.
o The Trust's name.
o Your account number (from your account statement).
o The dollar amount or number of shares to be redeemed.
o Any special payment instructions.
o Any share certificates for the shares you are selling.
o The signatures of all registered owners exactly as the account is registered.
o Any special documents requested by the Transfer Agent to assure proper authorization
of the person asking to sell the shares.

- ---------------------------------------------------------------------------------
- ---------------------------------------- ---------------------------------------
Use the following address for Send courier or express mail
- ---------------------------------------- requests to:
requests by mail: Shareholder Services, Inc.
Shareholder Services, Inc. 10200 E. Girard Avenue, Building D
P.O. Box 5143 Denver, Colorado 80231
Denver, Colorado 80217-5143
----------------------------------------

How Can Direct Shareholders Sell Shares by Telephone? Direct shareholders and their
broker/dealer representative of record may also sell shares by telephone. To receive
the redemption price calculated on a particular regular business day, the Transfer
Agent or its designated agent must receive the request by 4:00 p.m. on that day. You
may not redeem shares held under a share certificate or in certain retirement
accounts by telephone. To redeem shares through a service representative, call
1.800.525.9310. Proceeds of telephone redemptions will be paid by check payable to
the shareholder(s) of record and will be sent to the address of record for the
account. Up to $100,000 may be redeemed by telephone in any seven-day period. This
service is not available within 30 days of changing the address on an account.

Retirement Plan Accounts. There are special procedures to sell shares held in a retirement
plan account. Call the Transfer Agent for a distribution request form. Special income
tax withholding requirements apply to distributions from retirement plans. You must
submit a withholding form with your redemption request to avoid delay in getting your
money and if you do not want tax withheld. If your employer holds your retirement
plan account for you in the name of the plan, you must ask the plan trustee or
administrator to request the sale of the Trust shares in your plan account.

Sending Redemption Proceeds by Wire. While the Transfer Agent normally sends direct
shareholders their money by check, you can arrange to have the proceeds of the shares
you sell sent by Federal Funds wire to a bank account you designate. It must be a
commercial bank that is a member of the Federal Reserve wire system. The minimum
redemption you can have sent by wire is $2,500. There is a $10 fee for each request.
To find out how to set up this feature on an account or to arrange a wire, direct
shareholders should call the Transfer Agent at 1.800.525.9310. If you hold your
shares through your broker/dealer's Automatic Purchase and Redemption Program, you
must contact your broker/dealer to arrange a Federal Funds wire.

Can Direct Shareholders Submit Requests by Fax? Direct shareholders may send requests for
certain types of account transactions to the Transfer Agent by fax (telecopier).
Please call 1.800.525.9310 for information about which transactions may be handled
this way. Transaction requests submitted by fax are subject to the same rules and
restrictions as written and telephone requests described in this Prospectus.

HOW DO I WRITE CHECKS AGAINST MY ACCOUNT? Automatic Purchase and Redemption Program
participants may write checks against an account held under their Program, but must arrange
for checkwriting privileges through their broker/dealers. Direct shareholders may write
checks against their account by requesting that privilege on the account application or by
contacting the Transfer Agent for signature cards. They must be signed (with a signature
guarantee) by all owners of the account and returned to the Transfer Agent so that checks
can be sent to you to use. Shareholders with joint accounts can elect in writing to have
checks paid over the signature of one owner. If checkwriting is established after November
1, 2000, only one signature is required for shareholders with joint accounts, unless you
elect otherwise.

o Checks can be written to the order of whomever you wish, but may not be cashed at the
bank the checks are payable through or the Trusts' custodian bank.
o Checkwriting privileges are not available for accounts holding shares that are
subject to a contingent deferred sales charge.
o Checks must be written for at least $250.
o Checks cannot be paid if they are written for more than your account value.
o You may not write a check that would require the Trust to redeem shares that were
purchased by check or Automatic Investment Plan payments within the prior 10 days.

Don't use your checks if you changed your account number, until you receive new checks.

WILL I PAY A SALES CHARGE WHEN I SELL MY SHARES? The Trusts do not charge a fee to redeem
shares of a Trust that were bought directly or by reinvesting distributions from that Trust
or another Centennial Trust or eligible fund. Generally, there is no fee to redeem shares
of a Trust bought by exchange of shares of another Centennial Trust or eligible fund.
However,

o if you acquired shares of a Trust by exchanging Class A shares of another eligible
fund that you bought subject to the Class A contingent deferred sales charge, and
o those shares are still subject to the Class A contingent deferred sales charge when
you exchange them into the Trust, then
o you will pay the contingent deferred sales charge if you redeem those shares from the
Trust within 18 months of the purchase date of the shares of the fund you exchanged.

How to Exchange Shares

Shares of a Trust may be exchanged for shares of certain other Centennial Trusts or other
eligible funds, depending on whether you own your shares through your broker/dealer's
Automatic Purchase and Redemption Program or as a direct shareholder.

HOW CAN PROGRAM PARTICIPANTS EXCHANGE SHARES? If you participate in an Automatic Purchase
and Redemption Program sponsored by your broker/dealer, you may exchange shares held in
your Program Account for shares of Centennial Money Market Trust, Centennial Government
Trust, Centennial Tax Exempt Trust, Centennial California Tax Exempt Trust and Centennial
New York Tax Exempt Trust (referred to in this Prospectus as the "Centennial Trusts"), if
available for sale in your state of residence, by contacting your broker or dealer and
obtaining a Prospectus of the selected Centennial Trust.

HOW CAN DIRECT SHAREHOLDERS EXCHANGE SHARES? Direct shareholders can exchange shares of a
Trust for Class A shares of certain eligible funds listed in the Statement of Additional
Information. Shares of a particular class of an eligible fund may be exchanged only for
shares of the same class in other eligible funds. For example, you can exchange shares of
the Trust only for Class A shares of another fund, and you can exchange only Class A shares
of another eligible fund for shares of the Trust. To exchange shares, you must meet
several conditions:

o Shares of the fund selected for exchange must be available for sale in your state of
residence.
o The prospectuses of the selected fund whose shares you want to buy must offer the
exchange privilege.
o You must hold the shares you buy when you establish your account for at least seven
days before you can exchange them. After the account is open seven days, you can
exchange shares every regular business day.
o You must meet the minimum purchase requirements for the fund whose shares you
purchase by exchange.
o Generally, exchanges may be made only between identically registered accounts, unless
all account owners send written exchange instructions with signature guarantee.
o Before exchanging into a fund, you must obtain its prospectus and should read it
carefully.

For tax purposes, an exchange of shares of the Trust is considered a sale of those
shares and a purchase of the shares of the fund to which you are exchanging. An exchange
may result in a capital gain or loss. Since shares of a Trust normally maintain a $1.00
net asset value in most cases you should not realize a capital gain or loss when you sell
or exchange your shares.

Direct shareholders can find a list of eligible funds currently available for
exchanges in the Statement of Additional Information or you can obtain one by calling a
service representative at 1.800.525.9310. The list of eligible funds can change from time
to time.
You may pay a sales charge when you exchange shares of a Trust. Because shares of the
Trusts are sold without sales charge, in some cases you may pay a sales charge when you
exchange shares of a Trust for shares of other eligible funds that are sold subject to a
sales charge. You will not pay a sales charge when you exchange shares of a Trust
purchased by reinvesting distributions from the Trust or other eligible funds, or when you
exchange shares of the Trust purchased by exchange of shares of an eligible fund on which
you paid a sales charge.

How Do Direct Shareholders Submit Exchange Requests? Direct shareholders may request
exchanges in writing or by telephone:

o Written Exchange Requests. Complete an Exchange Authorization Form, signed by all
owners of the account. Send it to the Transfer Agent at the address on the back
cover. Exchanges of shares held under certificates cannot be processed unless the
Transfer Agent receives the certificates with the request.

o Telephone Exchange Requests. Telephone exchange requests may be made by calling a
service representative at 1.800.525.9310. Telephone exchanges may be made only
between accounts that are registered with the same name(s) and address. Shares held
under certificates may not be exchanged by telephone.

Please refer to "How to Exchange Shares" in the Statement of Additional Information for
more details.

ARE THERE LIMITATIONS ON FREQUESNT PURCHASES, REDEMPTIONS AND EXCHANGES?

o Risks from Excessive Purchase, Redemption and Short-Term Exchange Activity. The
exchange privilege affords investors the ability to switch their investments among
eligible funds if their investment needs change. However, there are limits on that
privilege. Frequent purchases, redemptions and exchanges of the Trusts' shares may
interfere with the Manager's ability to manage the Trusts' investments efficiently,
increase the Trusts' transaction and administrative costs and/or affect the Trusts'
performance, depending on various factors, such as the size of the Trusts, the nature
of its investments, the amount of the Trusts assets the portfolio manager maintains
in cash or cash equivalents, the aggregate dollar amount and the number and frequency
of trades. If large dollar amounts are involved in exchange and/or redemption
transactions, the Trusts might be required to sell portfolio securities at
unfavorable times to meet redemption or exchange requests, and the Trusts' brokerage
or administrative expenses might be increased.

Therefore, the Manager and the Trust's Board of Trustees have adopted the following
policies and procedures to detect and prevent frequent and/or excessive exchanges,
and/or purchase and redemption activity, while balancing the needs of investors who
seek liquidity from their investment and the ability to exchange shares as investment
needs change. There is no guarantee that the policies and procedures described below
will be sufficient to identify and deter excessive short-term trading.

o Timing of Exchanges. Exchanged shares are normally redeemed from one fund and the
proceeds are reinvested in the fund selected for exchange on the same regular
business day on which the Transfer Agent or its agent (such as a financial
intermediary holding the investor's shares in an "omnibus" or "street name" account)
receives an exchange request that conforms to these policies. The request must be
received by the close of the NYSE that day, which is normally 4:00 p.m. Eastern time,
but may be earlier on some days. However, the Transfer Agent may delay the
reinvestment of proceeds from an exchange for up to five business days if it
determines, in its discretion, that an earlier transmittal of the redemption proceeds
to the receiving fund would be detrimental to either the fund from which the exchange
is made or the fund to which the exchange is made. The proceeds will be invested in
the fund into which the exchange is being made at the next net asset value calculated
after the proceeds are received. In the event that such delay in the reinvestment of
proceeds occurs, the Transfer Agent will notify you or your financial representative.

o Limits on Disruptive Activity. The Transfer Agent may, in its discretion, limit or
terminate trading activity by any person, group or account that it believes would be
disruptive, even if the activity has not exceeded the policy outlined in this
Prospectus. The Transfer Agent may review and consider the history of frequent
trading activity in all accounts in the Oppenheimer funds known to be under common
ownership or control as part of the Transfer Agent's procedures to detect and deter
excessive trading activity.

o Exchanges of Client Accounts by Financial Advisers. The Trusts and the Transfer
Agent permit dealers and financial intermediaries to submit exchange requests on
behalf of their customers (unless the customer has revoked that authority). A fund or
the Transfer Agent may limit or refuse bulk exchange requests submitted by such
financial intermediaries if, in the Transfer Agent's judgment, exercised in its
discretion, the exchanges would be disruptive to any of the funds involved in the
transaction.

o Redemptions of Shares. These exchange policy limits do not apply to redemptions of
shares. Shareholders are permitted to redeem their shares on any regular business
day, subject to the terms of this Prospectus.

o Right to Refuse Exchange and Purchase Orders. The Distributor and/or the Transfer
Agent may refuse any purchase or exchange order in their discretion and are not
obligated to provide notice before rejecting an order. The Trusts may amend, suspend
or terminate the exchange privilege at any time. You will receive 60 days' notice of
any material change in the exchange privilege unless applicable law allows otherwise.

o Right to Terminate or Suspend Account Privileges. The Transfer Agent may send a
written warning to direct shareholders who the Transfer Agent believes may be
engaging in excessive purchases, redemptions and/or exchange activity and reserves
the right to suspend or terminate the ability to purchase shares and/or exchange
privileges for any account that the Transfer Agent determines, in carrying out these
policies and in the exercise of its discretion, has engaged in disruptive or
excessive trading activity.

o Omnibus Accounts. If you hold your shares of the Trusts through a financial
intermediary such as a broker/dealer, a bank, an insurance company separate account,
an investment adviser, an administrator or trustee of a retirement plan or 529 plan
that holds your shares in an account under its name (these are sometimes referred to
as "omnibus" or "street name" accounts), that financial intermediary may impose its
own restrictions or limitations to discourage short-term or excessive trading. You
should consult your financial intermediary to find out what trading restrictions,
including limitations on exchanges, they may apply to you.

While the Trusts, the Distributor, the Manager and the Transfer Agent encourage
financial intermediaries to apply the Trusts' policies to their customers who invest
indirectly in the Trusts, the Transfer Agent may not be able to apply this policy to
accounts such as (a) accounts held in omnibus form in the name of a broker/dealer or
other financial institution, or (b) omnibus accounts held in the name of a retirement
plan or 529 plan trustee or administrator, or (c) accounts held in the name of an
insurance company for its separate account(s), or (d) other accounts having multiple
underlying owners but registered in a manner such that the underlying beneficial owners
are not identified to the Transfer Agent.

Therefore the Transfer Agent might not be able to detect excessive short term trading
activity facilitated by, or in accounts maintained in, the "omnibus" or "street name"
accounts of a financial intermediary. However, the Transfer Agent will attempt to
monitor overall purchase and redemption activity in those accounts to seek to identify
patterns that may suggest excessive trading by the underlying owners. If evidence of
possible excessive trading activity is observed by the Transfer Agent, the financial
intermediary that is the registered owner will be asked to review account activity, and
to confirm to the Transfer Agent and the Trusts that appropriate action has been taken
to curtail any excessive trading activity. However, the Transfer Agent's ability to
monitor and deter excessive short-term trading in omnibus or street name accounts
ultimately depends on the capability and cooperation of the financial intermediaries
controlling those accounts.

The Trusts' Board has adopted additional policies and procedures to detect and prevent
frequent and/or excessive exchanges and purchase and redemption activity:

o 30-Day Limit. A direct shareholder may exchange all or some of the shares of the
Trusts held in his or her account to another eligible Oppenheimer fund once in a 30
calendar-day period. When shares are exchanged into another fund account, that
account will be "blocked" from further exchanges into another fund for a period of 30
calendar days from the date of the exchange. The block will apply to the full account
balance and not just to the amount exchanged into the account. For example, if a
shareholder exchanged $1,000 from one fund into another fund in which the shareholder
already owned shares worth $10,000, then, following the exchange, the full account
balance ($11,000 in this example) would be blocked from further exchanges into
another fund for a period of 30 calendar days. A "direct shareholder" is one whose
account is registered on the Trusts' books showing the name, address and tax ID
number of the beneficial owner.

o Exchanges Into Money Market Funds. A direct shareholder will be permitted to
exchange shares of a stock or bond fund for shares of a money market fund at any
time, even if the shareholder has exchanged shares into the stock or bond fund during
the prior 30 days. However, all of the shares held in that money market fund would
then be blocked from further exchanges into another fund for 30 calendar days.

o Dividend Reinvestments. Reinvestment of dividends or distributions from one fund to
purchase shares of another fund will not be considered exchanges for purposes of
imposing the 30-day limit.

o Asset Allocation. Third-party asset allocation and rebalancing programs will be
subject to the 30-day limit described above. Asset allocation firms that want to
exchange shares held in accounts on behalf of their customers must identify
themselves to the Transfer Agent and execute an acknowledgement and agreement to
abide by these policies with respect to their customers' accounts. "On-demand"
exchanges outside the parameters of portfolio rebalancing programs will be subject to
the 30-day limit. However, investment programs by other Oppenheimer "funds-of-funds"
that entail rebalancing of investments in underlying Oppenheimer funds will not be
subject to these limits.

Automatic Exchange Plans. Accounts that receive exchange proceeds through automatic or
systematic exchange plans that are established through the Transfer Agent will not be
subject to the 30-day block as a result of those automatic or systematic exchanges
(but may be blocked from exchanges, under the 30-day limit, if they receive proceeds
from other exchanges).

Shareholder Account Rules and Policies

More information about the Trusts' policies and procedures for buying, selling and
exchanging shares is contained in the Statement of Additional Information.

The offering of shares of a Trust may be suspended during any period in which the Trust's
determination of net asset value is suspended, and the offering may be suspended by
the Board of Trustees at any time the Board believes it is in a Trust's best interest
to do so.

Telephone transaction privileges for purchases, redemptions or exchanges may be modified,
suspended or terminated by the Trusts at any time. The Trusts will provide you
notice whenever they are required to do so by applicable law. If an account has more
than one owner, the Trusts and the Transfer Agent may rely on the instructions of any
one owner. Telephone privileges apply to each owner of the account and the
broker/dealer representative of record for the account unless the Transfer Agent
receives cancellation instructions from an owner of the account.

The Transfer Agent will record any telephone calls to verify data concerning transactions
and it has adopted other procedures to confirm that telephone instructions are
genuine, by requiring callers to provide tax identification numbers and other account
data and by confirming such transactions in writing. The Transfer Agent and the
Trusts will not be liable for losses or expenses arising out of telephone
instructions reasonably believed to be genuine.

Redemption or transfer requests will not be honored until the Transfer Agent receives all
required documents in proper form. From time to time, the Transfer Agent in its
discretion may waive certain of the requirements for redemptions stated in this
Prospectus.

Payment for redeemed shares ordinarily is made in cash. It is forwarded by check or by
Federal Funds wire (as elected by the shareholder) within seven days after the
Transfer Agent receives redemption instructions in proper form. However, under
unusual circumstances determined by the Securities and Exchange Commission, payment
may be delayed or suspended. For accounts registered in the name of a broker/dealer,
payment will normally be forwarded within three business days after redemption.

The Transfer Agent may delay processing any type of redemption payment as described under
"How to Sell Shares" for recently purchased shares, but only until the purchase
payment has cleared. That delay may be as much as 10 days from the date the shares
were purchased. That delay may be avoided if you purchase shares by Federal Funds
wire or certified check, or arrange with your bank to provide telephone or written
assurance to the Transfer Agent that your purchase payment has cleared.

Involuntary redemptions of small accounts may be made by the Trusts if the account value
has fallen below $250 for reasons other than the fact that the market value of shares
has dropped. In some cases involuntary redemptions may be made to repay the
Distributor or Sub-Distributor for losses from the cancellation of share purchase
orders.

Customer Identification Program. Federal regulations may require the Trusts to obtain your
name, your date of birth (for a natural person), your residential street address or
principal place of business and your Social Security number, employer identification
number or other government issued identification when you open an account. Additional
information may be required in certain circumstances or to open corporate accounts.
The Trusts or the Transfer Agent may use this information to attempt to verify your
identity. The Trusts may not be able to establish an account if the necessary
information is not received. The Trusts may also place limits on account
transactions while it is in the process of attempting to verify your identity.
Additionally, if the Trusts are unable to verify your identity after your account is
established, the Trusts may be required to redeem your shares and close your
account.

"Backup withholding" of federal income tax may be applied against taxable dividends,
distributions and redemption proceeds (including exchanges) if you fail to furnish
the Trust your correct, certified Social Security or employer identification number
when you sign your application, or if you under-report your income to the Internal
Revenue Service (the "IRS").

To avoid sending duplicate copies of materials to households, the Trusts will mail only one
copy of each prospectus, annual and semi-annual report and annual notice of the
Trusts' privacy policy to shareholders having the same last name and address on the
Trusts' records. The consolidation of these mailings, called householding, benefits
the Trusts through reduced mailing expense.

If you want to receive multiple copies of these materials, you may call the Transfer
Agent at 1.800.525.9310. You may also notify the Transfer Agent in writing.
Individual copies of prospectuses, reports and privacy notices will be sent to you
commencing within 30 days after the Transfer Agent receives your request to stop
householding.

Dividends, Capital Gains and Taxes

DIVIDENDS. Each Trust intends to declare dividends from net investment income each regular
business day and to pay those dividends to shareholders monthly on a date selected by the
Board of Trustees. To maintain a net asset value of $1.00 per share, a Trust might
withhold dividends or make distributions from capital or capital gains. Daily dividends
will not be declared or paid on newly purchased shares until Federal Funds are available to
a Trust from the purchase payment for such shares.

CAPITAL GAINS. Each Trust normally holds its securities to maturity and therefore will not
usually pay capital gains. Although the Trusts do not seek capital gains, a Trust could
realize capital gains on the sale of its portfolio securities. If it does, it may make
distributions out of any net short-term or long-term capital gains in December of each
year. A Trust may make supplemental distributions of dividends and capital gains following
the end of its fiscal year.

What Choices Do I Have for Receiving Distributions? For Automatic Purchase and Redemption
Programs, dividends and distributions are automatically reinvested in additional
shares of the selected Trust. For direct shareholders, when you open your account,
specify on your application how you want to receive your dividends and
distributions. You have four options:

o Reinvest All Distributions in the Trust. You can elect to reinvest all dividends and
capital gains distributions in the selected Trust.
o Reinvest Dividends or Capital Gains. You can elect to reinvest some distributions
(dividends, short-term capital gains or long-term capital gains distributions) in the
selected Trust while receiving other types of distributions by check or having them
sent to your bank account.
o Receive All Distributions in Cash. You can elect to receive a check for all
dividends and capital gains distributions or have them sent to your bank.
o Reinvest Your Distributions in Another Account. You can reinvest all distributions
in the same class of shares of another eligible fund account you have established.

Under the terms of Automatic Purchase and Redemption Programs, your broker/dealer can
redeem shares to satisfy debit balances arising in your Program Account. If that occurs,
you will be entitled to dividends on those shares as described in your Program Agreements.

TAXES.

Centennial Money Market Trust and Centennial Government Trust. If your shares are not held
in a tax-deferred retirement account, you should be aware of the following tax
implications of investing in Centennial Money Market Trust and Centennial Government
Trust. Dividends paid from net investment income and short-term capital gains are
taxable as ordinary income. Long-term capital gains are taxable as long-term capital
gains when distributed to shareholders. It does not matter how long you have held
your shares. Whether you reinvest your distributions in additional shares or take
them in cash, the tax treatment is the same.

Every year the Trust will send you and the IRS a statement showing the amount of each
taxable distribution you received in the previous year. Any long-term capital gains
distributions will be separately identified in the tax information the Trust sends you
after the end of the calendar year.

The Trusts intend each year to qualify as a "regulated investment company" under the
Internal Revenue Code, but reserves the right not to qualify. Each Trust qualified during
its last fiscal year. The Trusts, as regulated investment companies, will not be subject
to Federal income taxes on any of their income, provided that it satisfies certain income,
diversification and distribution requirements.

Centennial Tax Exempt Trust. Exempt interest dividends paid from net investment income
earned by the Trust on municipal securities will be excludable from gross income for
federal income tax purposes. A portion of a dividend that is derived from interest
paid on certain "private activity bonds" may be an item of tax preference if you are
subject to the alternative minimum tax. If a Trust earns interest on taxable
investments, any dividends derived from those earnings will be taxable as ordinary
income to shareholders.

Dividends and capital gains distributions may be subject to state or local taxes. Long-term
capital gains are taxable as long-term capital gains when distributed to shareholders. It
does not matter how long you have held your shares. Dividends paid from short-term capital
gains and non-tax-exempt net investment income are taxable as ordinary income. Whether you
reinvest your distributions in additional shares or take them in cash, the tax treatment is
the same. Every year the Trust will send you and the IRS a statement showing the amount of
any taxable distribution you received in the previous year as well as the amount of your
tax-exempt income.

Remember, There May be Taxes on Transactions. Because each Trust seeks to maintain a
stable $1.00 per share net asset value, it is unlikely that you will have a capital
gain or loss when you sell or exchange your shares. A capital gain or loss is the
difference between the price you paid for the shares and the price you received when
you sold them. Any capital gain is subject to capital gains tax.

Returns of Capital Can Occur. In certain cases, distributions made by a Trust may be
considered a non-taxable return of capital to shareholders. If that occurs, it will
be identified in notices to shareholders.

This information is only a summary of certain federal income tax information about
your investment. You should consult with your tax advisor about the effect of an investment
in a Trust on your particular tax situation.

Financial Highlights

The Financial Highlights Table is presented to help you understand each the Trust's
financial performance for the past five fiscal years. Certain information reflects
financial results for a single Trust share. The total returns in the table represents the
rate that an investor would have earned (or lost) on an investment in the Trust (assuming
reinvestment of all dividends and distributions). This information has been audited by
Deloitte & Touche LLP, the Trusts' independent registered public accounting firm, whose
report, along with the Trusts' financial statements, are included in the Statement of
Additional Information, which is available on request.

FINANCIAL HIGHLIGHTS


YEAR ENDED JUNE 30,                                   2005           2004         2003         2002         2001
- ------------------------------------------------------------------------------------------------------------------

PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period               $  1.00        $  1.00      $  1.00      $  1.00      $  1.00
- ------------------------------------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain                .02 1          .01          .01          .02          .06
- ------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                  (.02)          (.01)        (.01)        (.02)        (.06)
Distributions from net realized gain                    --             --           -- 2         -- 2         --
                                                   ---------------------------------------------------------------

Total dividends and/or distributions
to shareholders                                       (.02)          (.01)        (.01)        (.02)        (.06)
- ------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                     $  1.00        $  1.00      $  1.00      $  1.00      $  1.00
                                                   ===============================================================

- ------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 3                                        1.59%          0.61%        1.20%        1.99%        5.51%

- ------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)            $20,307        $21,191      $23,019      $21,736      $22,210
- ------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                   $20,966        $22,509      $22,783      $22,947      $20,830
- ------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income                                 1.57%          0.61%        1.19%        1.97%        5.34%
Total expenses                                        0.68%          0.67%        0.66%        0.69%        0.67%
Expenses after payments and waivers and
reduction to custodian expenses                        N/A 5         0.51%        0.40%        0.66%         N/A 5

1.     Per share amounts calculated based on the average shares outstanding during the period.

2.     Less than $0.005 per share.

3.     Assumes an investment on the business day before the first day of the fiscal period, with all dividends reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one year. Returns do not reflect the deduction of taxes that a shareholder would pay on Trust distributions or the redemption of Trust shares.

4.     Annualized for periods of less than one full year.

5.     Reduction to custodian expenses less than 0.01%.

FINANCIAL HIGHLIGHTS


YEAR ENDED JUNE 30,                                       2005      2004      2003      2002      2001
- -------------------------------------------------------------------------------------------------------

PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                   $  1.00   $  1.00   $  1.00   $  1.00   $  1.00
- -------------------------------------------------------------------------------------------------------
Income from investment operations - net
investment income and net realized gain                    .01 1      -- 2     .01       .01       .03
Dividends and/or distributions to shareholders            (.01)       -- 2    (.01)     (.01)     (.03)
- -------------------------------------------------------------------------------------------------------

Net asset value, end of period                         $  1.00    $ 1.00   $  1.00   $  1.00   $  1.00
                                                       ================================================

- -------------------------------------------------------------------------------------------------------
TOTAL RETURN 3                                            1.21%     0.35%     0.69%     1.17%     3.26%
- -------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)                $ 1,701   $ 1,778   $ 1,877   $ 1,824   $ 1,822
- -------------------------------------------------------------------------------------------------------
Average net assets (in millions)                       $ 1,797   $ 1,851   $ 1,882   $ 1,904   $ 1,779
- -------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income                                     1.20%     0.35%     0.68%     1.16%     3.21%
Total expenses                                            0.67%     0.67%     0.66%     0.69%     0.70%
Expenses after payments and waivers and
reduction to custodian expenses                           0.65%      N/A 5     N/A 5     N/A 5    0.69%

1.     Per share amounts calculated based on the average shares outstanding during the period.

2.     Less than $0.005 per share.

3.     Assumes an investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period. Total returns are not annualized for periods less than one year. Returns do not reflect the deduction of taxes that a shareholder would pay on Trust distributions or the redemption of Trust shares.

4.     Annualized for periods of less than one full year.

5.     Reduction to custodian expenses less than 0.01%.

FINANCIAL HIGHLIGHTS


YEAR ENDED JUNE 30,                         2005     2004      2003      2002     2001
- ---------------------------------------------------------------------------------------

PER SHARE OPERATING DATA
- ---------------------------------------------------------------------------------------
Net asset value, beginning of period      $ 1.00   $ 1.00   $  1.00   $  1.00  $  1.00
- ---------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain      .01 1     -- 2     .01       .02      .05
- ---------------------------------------------------------------------------------------
Dividends and/or distributions to
shareholders:
Dividends from net investment income        (.01)      -- 2    (.01)     (.02)    (.05)
Distributions from net realized gain          --       --        --        -- 2     --
                                          ---------------------------------------------
Total dividends and/or distributions
to shareholders                             (.01)      -- 2    (.01)     (.02)    (.05)
- ---------------------------------------------------------------------------------------
Net asset value, end of period            $ 1.00   $ 1.00   $  1.00   $  1.00  $  1.00
                                          =============================================

- ---------------------------------------------------------------------------------------
TOTAL RETURN 3                              1.45%    0.48%     1.15%     1.92%    5.29%
- ---------------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ---------------------------------------------------------------------------------------
Net assets, end of period (in millions)   $1,226   $1,428   $ 1,776   $ 1,548  $ 1,458
- ---------------------------------------------------------------------------------------
Average net assets (in millions)          $1,360   $1,628   $ 1,744   $ 1,585  $ 1,367
- ---------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income                       1.41%    0.49%     1.14%     1.90%    5.13%
Total expenses                              0.73%    0.71%     0.70%     0.71%    0.73%
Expenses after payments and waivers and
reduction to custodian expenses              N/A 5   0.60%     0.38%     0.63%     N/A 5

1.     Per share amounts calculated based on the average shares outstanding during the period.

2.     Less than $0.005 per share.

4.     Annualized for periods of less than one full year.

5.     Reduction to custodian expenses less than 0.01%.


INFORMATION AND SERVICES

For More Information on Centennial Money Market Trust, Centennial Tax Exempt Trust and
Centennial Government Trust

The following additional information about each Trust is available without charge upon
request:

STATEMENT OF ADDITIONAL INFORMATION.  Each document includes additional information about
each Trust's investment policies, risks, and operations.  It is incorporated by reference
into this Prospectus (which means it is legally part of this Prospectus).

ANNUAL AND SEMI-ANNUAL REPORTS.  Additional information about each Trust's investments and
performance is available in each Trust's Annual and Semi-Annual Reports to shareholders.
The Annual Report includes a discussion of market conditions and investment strategies that
significantly affected each Trust's performance during its last fiscal year.

How to Get More Information
You can request the Statement of Additional Information, the Annual and Semi-Annual
Reports, the notice explaining the Trusts' privacy policy and other information about each
Trust or your account:

- ---------------------------------------------------------------------------------
By Telephone:                            Call Shareholder Services, Inc.
                                         toll-free:
                                         1.800.525.9310
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
By Mail:                                 Write to:
                                         Shareholder Services, Inc.
                                         P.O. Box 5143
                                         Denver, Colorado 80217-5143
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
On the Internet:                         You can request these documents by
                                         e-mail or through the OppenheimerFunds
                                         website.  You may also read or
                                         download certain documents on the
                                         OppenheimerFunds website at:
                                         www.oppenheimerfunds.com
- ---------------------------------------------------------------------------------

Information about each Trust including the Statement of Additional Information can be
reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on
the operation of the Public Reference Room may be obtained by calling the SEC at
1.202.942.8090.  Reports and other information about the Trust are available on the EDGAR
database on the SEC's Internet website at www.sec.gov. Copies may be obtained after payment
of a duplicating fee by electronic request at the SEC's e-mail address: publicinfo@sec.gov
or by writing to the SEC's Public Reference Section, Washington, D.C. 20549-0102.

No one has been authorized to provide any information about each Trust or to make any
representations about each Trust other than what is contained in this Prospectus. This
Prospectus is not an offer to sell shares of the Trust, nor a solicitation of an offer to
buy shares of each Trust, to any person in any state or other jurisdiction where it is
unlawful to make such an offer.

                                             The Trust's shares are distributed by:
The Trust's SEC File No.: 811-02945          Centennial Asset Management Corporation
                    811-03104
                    811-03391
PR0152.001.1005
Printed on recycled paper






APPENDIX TO THE PROSPECTUS OF
CENTENNIAL MONEY MARKET TRUST

      Graphic material included in Prospectus of Centennial Money Market Trust (the
"Trust") under the heading:  "Annual Total Returns (as of 12/31 each year)."

      Bar chart will be included in the Prospectus of the Trust depicting the annual total
returns of a hypothetical investment in shares of the Trust for the past 10 full calendar
years.  Set forth below are the relevant data points that will appear on the bar chart.

- --------------------------------------------------------------------
Calendar Year Ended:             Annual Total Returns
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/94                         3.77%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/95                         5.46%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/96                         4.94%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/97                         5.10%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/98                         5.09%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/99                         4.72%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/00                         5.95%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/01                         3.70%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/02                         1.37%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/03                         0.89%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/04                         0.77%
- --------------------------------------------------------------------







APPENDIX TO THE PROSPECTUS OF
CENTENNIAL TAX EXEMPT TRUST

      Graphic material included in Prospectus of Centennial Tax Exempt Trust (the "Trust")
under the heading:  "Annual Total Returns (as of 12/31 each year)."

      Bar chart will be included in the Prospectus of the Trust depicting the annual total
returns of a hypothetical investment in shares of the Trust for the past 10 full calendar
years.  Set forth below are the relevant data points that will appear on the bar chart.

- --------------------------------------------------------------------
Calendar Year Ended:             Annual Total Returns
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/94                         2.30%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/95                         3.47%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/96                         3.00%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/97                         3.11%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/98                         2.91%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/99                         2.60%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/00                         3.42%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/01                         2.23%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/02                         0.80%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/03                         0.46%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/04                         0.59%
- --------------------------------------------------------------------







APPENDIX TO THE PROSPECTUS OF
CENTENNIAL GOVERNMENT TRUST

      Graphic material included in Prospectus of Centennial Government Trust (the "Trust")
under the heading:  "Annual Total Returns (as of 12/31 each year)."

      Bar chart will be included in the Prospectus of the Trust depicting the annual total
returns of a hypothetical investment in shares of the Trust for the past 10 full calendar
years.  Set forth below are the relevant data points that will appear on the bar chart.

- --------------------------------------------------------------------
Calendar Year Ended:             Annual Total Returns
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/94                         3.71%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/95                         5.26%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/96                         4.72%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/97                         4.86%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/98                         4.84%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/99                         4.43%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/00                         5.71%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/01                         3.54%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/02                         1.35%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/03                         0.77%
- --------------------------------------------------------------------
- --------------------------------------------------------------------
12/31/04                         0.67
- --------------------------------------------------------------------

- ------------------------------------------------------------------------------
Centennial Tax Exempt Trust
- ------------------------------------------------------------------------------

6803 South Tucson Way, Centennial, Colorado 80112
1.800.525.9310

Statement of Additional Information dated October 14, 2005.

This Statement of Additional Information is not a prospectus. This
document contains additional information about the Trust and supplements
information in the Prospectus dated October 14, 2005. It should be read
together with the Prospectus, which may be obtained by writing to the Trust's
Transfer Agent, Shareholder Services, Inc., at P.O. Box 5143, Denver,
Colorado 80217, or by calling the Transfer Agent at the toll-free number
shown above.

Contents

Page
About the Trust
Additional Information about the Trust's Investment Policies and Risks........
The Trust's Investment Policies..........................................
Other Investment Strategies..............................................
Other Investment Restrictions............................................
Disclosure of Portfolio Holdings........................................
How the Trust is Managed......................................................
Organization and History.................................................
Board of Trustees and Oversight Committees..............................
Trustees and Officers of the Trust.......................................
The Manager..............................................................
Service Plan..................................................................
Performance of the Trust......................................................

About Your Account
How To Buy Shares.............................................................
How To Sell Shares............................................................
How To Exchange Shares........................................................
Dividends and Taxes...........................................................
Additional Information About the Trust........................................

Financial Information About the Trust
Independent Registered Public Accounting Firm's Report........................
Financial Statements..........................................................

Appendix A: Description of Securities Ratings..............................A-1
Appendix B: Municipal Bond Industry Classifications........................B-1

-------------------------------------------------------------------------------
ABOUT THE TRUST
-------------------------------------------------------------------------------

Additional Information About the Trust's Investment Policies and Risks

The investment objective and the principal investment policies of the Trust
are described in the Prospectus. This Statement of Additional Information
contains supplemental information about those policies and the types of
securities that the Trust's investment manager, Centennial Asset Management
Corporation, (referred to as, the "Manager") will select for the Trust.
Additional explanations are also provided about the strategies the Trust may
use to try to achieve its objective.

The Trust's Investment Policies. The composition of the Trust's portfolio and
the techniques and strategies that the Trust's Manager uses in selecting
portfolio securities will vary over time. The Trust is not required to use
all of the investment techniques and strategies described below at all times
in seeking its goal. It may use some of the special investment techniques
and strategies at some times or not at all.

The Trust does not make investments with the objective of seeking
capital growth. However, the values of the securities held by the Trust may
be affected by changes in general interest rates and other factors, prior to
their maturity. Because the current values of debt securities vary inversely
with changes in prevailing interest rates, if interest rates increase after a
security is purchased, that security will normally fall in value.
Conversely, should interest rates decrease after a security is purchased,
normally its value will rise.

However, those fluctuations in value will not generally result in
realized gains or losses to the Trust unless the Trust sells the security
prior to the security's maturity. A debt security held to maturity is
redeemable by its issuer at full principal value plus accrued interest. The
Trust does not usually intend to dispose of securities prior to their
maturity, but may do so for liquidity purposes, or because of other factors
affecting the issuer that cause the Manager to sell the particular security.
In that case, the Trust could realize a capital gain or loss on the sale.

There are variations in the credit quality of municipal securities,
both within a particular rating classification and between classifications.
These variations depend on numerous factors. The yields of municipal
securities depend on a number of factors, including general conditions in the
municipal securities market, the size of a particular offering, the maturity
of the obligation and rating (if any) of the issue. These factors are
discussed in greater detail below.

Municipal Securities. The types of municipal securities in which the Trust
may invest are described in the Prospectus under "About the Trust's
Investments." Municipal securities are generally classified as general
obligation bonds, revenue bonds and notes. A discussion of the general
characteristics of these principal types of municipal securities follows
below.

|X| Municipal Bonds. We have classified municipal securities having
a maturity (when the security is issued) of more than one year as "municipal
bonds." The principal classifications of long-term municipal bonds are
"general obligation" and "revenue" (including "industrial development")
bonds. They may have fixed, variable or floating rates of interest, as
described below.

Some bonds may be "callable," allowing the issuer to redeem them before
their maturity date. To protect bondholders, callable bonds may be issued
with provisions that prevent them from being called for a period of time.
Typically, that is 5 to 10 years from the issuance date. When interest rates
decline, if the call protection on a bond has expired, it is more likely that
the issuer may call the bond. If that occurs, the Trust might have to
reinvest the proceeds of the called bond in bonds that pay a lower rate of
return.

o General Obligation Bonds. The basic security behind general obligation
bonds is the issuer's pledge of its full faith and credit and taxing power,
if any, for the repayment of principal and the payment of interest. Issuers
of general obligation bonds include states, counties, cities, towns, and
regional districts. The proceeds of these obligations are used to fund a
wide range of public projects, including construction or improvement of
schools, highways and roads, and water and sewer systems. The rate of taxes
that can be levied for the payment of debt service on these bonds may be
limited or unlimited. Additionally, there may be limits as to the rate or
amount of special assessments that can be levied to meet these obligations.

o Revenue Bonds. The principal security for a revenue bond is generally
the net revenues derived from a particular facility, group of facilities, or,
in some cases, the proceeds of a special excise tax or other specific revenue
source. Revenue bonds are issued to finance a wide variety of capital
projects. Examples include electric, gas, water and sewer systems; highways,
bridges, and tunnels; port and airport facilities; colleges and universities;
and hospitals.

Although the principal security for these types of bonds may vary from
bond to bond, many provide additional security in the form of a debt service
reserve fund that may be used to make principal and interest payments on the
issuer's obligations. Housing finance authorities have a wide range of
security, including partially or fully insured mortgages, rent subsidized
and/or collateralized mortgages, and/or the net revenues from housing or
other public projects. Some authorities provide further security in the form
of a state's ability (without obligation) to make up deficiencies in the debt
service reserve fund.

o Industrial Development Bonds. Industrial development bonds are
considered municipal bonds if the interest paid is exempt from federal income
tax. They are issued by or on behalf of public authorities to raise money to
finance various privately operated facilities for business and manufacturing,
housing, sports, and pollution control. These bonds may also be used to
finance public facilities such as airports, mass transit systems, ports, and
parking. The payment of the principal and interest on such bonds is
dependent solely on the ability of the facility's user to meet its financial
obligations and the pledge, if any, of real and personal property financed by
the bond as security for those payments.

o Private Activity Municipal Securities. The Tax Reform Act of 1986 (the
"Tax Reform Act") reorganized, as well as amended, the rules governing tax
exemption for interest on certain types of municipal securities. The Tax
Reform Act generally did not change the tax treatment of bonds issued in
order to finance governmental operations. Thus, interest on general
obligation bonds issued by or on behalf of state or local governments, the
proceeds of which are used to finance the operations of such governments,
continues to be tax-exempt. However, the Tax Reform Act limited the use of
tax-exempt bonds for non-governmental (private) purposes. More stringent
restrictions were placed on the use of proceeds of such bonds. Interest on
certain private activity bonds is taxable under the revised rules. There is
an exception for "qualified" tax-exempt private activity bonds, for example,
exempt facility bonds including certain industrial development bonds,
qualified mortgage bonds, qualified Section 501(c)(3) bonds, and qualified
student loan bonds. Normally, the Trust will not invest more than 20% of its
total assets in private activity municipal securities or other taxable
investments.

In addition, limitations as to the amount of private activity bonds
which each state may issue were revised downward by the Tax Reform Act, which
will reduce the supply of such bonds. The value of the Trust's portfolio
could be affected if there is a reduction in the availability of such bonds.

Interest on certain private activity bonds issued after August 7, 1986,
which continues to be tax-exempt, will be treated as a tax preference item
subject to the alternative minimum tax (discussed below) to which certain
taxpayers are subject. The Trust may hold municipal securities the interest
on which (and thus a proportionate share of the exempt-interest dividends
paid by the Trust) will be subject to the federal alternative minimum tax on
individuals and corporations.

The federal alternative minimum tax is designed to ensure that all
persons who receive income pay some tax, even if their regular tax is zero.
This is accomplished in part by including in taxable income certain tax
preference items that are used to calculate alternative minimum taxable
income. The Tax Reform Act made tax-exempt interest from certain private
activity bonds a tax preference item for purposes of the alternative minimum
tax on individuals and corporations. Any exempt-interest dividend paid by a
regulated investment company will be treated as interest on a specific
private activity bond to the extent of the proportionate relationship the
interest the investment company receives on such bonds bears to all its
exempt interest dividends.

In addition, corporate taxpayers subject to the alternative minimum tax
may, under some circumstances, have to include exempt-interest dividends in
calculating their alternative minimum taxable income. That could occur in
situations where the "adjusted current earnings" of the corporation exceeds
its alternative minimum taxable income.

To determine whether a municipal security is treated as a taxable
private activity bond, it is subject to a test for: (a) a trade or business
use and security interest, or (b) a private loan restriction. Under the trade
or business use and security interest test, an obligation is a private
activity bond if: (i) more than 10% of the bond proceeds are used for private
business purposes and (ii) 10% or more of the payment of principal or
interest on the issue is directly or indirectly derived from such private use
or is secured by the privately used property or the payments related to the
use of the property. For certain types of uses, a 5% threshold is substituted
for this 10% threshold.

The term "private business use" means any direct or indirect use in a
trade or business carried on by an individual or entity other than a state or
municipal governmental unit. Under the private loan restriction, the amount
of bond proceeds that may be used to make private loans is limited to the
lesser of 5% or $5.0 million of the proceeds. Thus, certain issues of
municipal securities could lose their tax-exempt status retroactively if the
issuer fails to meet certain requirements as to the expenditure of the
proceeds of that issue or the use of the bond-financed facility. The Trust
makes no independent investigation of the users of such bonds or their use of
proceeds of the bonds. If the Trust should hold a bond that loses its
tax-exempt status retroactively, there might be an adjustment to the
tax-exempt income previously distributed to shareholders.

Additionally, a private activity bond that would otherwise be a
qualified tax-exempt private activity bond will not, under Internal Revenue
Code Section 147(a), be a qualified bond for any period during which it is
held by a person who is a "substantial user" of the facilities or by a
"related person" of such a substantial user. This "substantial user"
provision applies primarily to exempt facility bonds, including industrial
development bonds. The Trust may invest in industrial development bonds and
other private activity bonds. Therefore, the Trust may not be an appropriate
investment for entities which are "substantial users" (or persons related to
"substantial users") of such exempt facilities. Those entities and persons
should consult their tax advisers before purchasing shares of the Trust.

A "substantial user" of such facilities is defined generally as a
"non-exempt person who regularly uses part of a facility" financed from the
proceeds of exempt facility bonds. Generally, an individual will not be a
"related person" under the Internal Revenue Code unless such individual or
the individual's immediate family (spouse, brothers, sisters and immediate
descendants) own directly or indirectly in the aggregate more than 50% in
value of the equity of a corporation or partnership which is a "substantial
user" of a facility financed from the proceeds of exempt facility bonds.

|X| Municipal Notes. Municipal securities having a maturity (when
the security is issued) of one year or less are generally known as municipal
notes. Municipal notes generally are used to provide for short-term working
capital needs. Some of the types of municipal notes the Trust can invest in
are described below.

o Tax Anticipation Notes. These are issued to finance working capital
needs of municipalities. Generally, they are issued in anticipation of
various seasonal tax revenue, such as income, sales, use or other business
taxes, and are payable from these specific future taxes.

o Revenue Anticipation Notes. These are notes issued in expectation of
receipt of other types of revenue, such as federal revenues available under
federal revenue-sharing programs.

o Bond Anticipation Notes. Bond anticipation notes are issued to provide
interim financing until long-term financing can be arranged. The long-term
bonds that are issued typically also provide the money for the repayment of
the notes.

o Construction Loan Notes. These are sold to provide project
construction financing until permanent financing can be secured. After
successful completion and acceptance of the project, it may receive permanent
financing through public agencies, such as the Federal Housing Administration.

|X| Tax Exempt Commercial Paper. This type of short-term obligation
(usually having a maturity of 270 days or less) is issued by a municipality
to meet current working capital needs.

|X| Municipal Lease Obligations. The Trust's investments in
municipal lease obligations may be through certificates of participation that
are offered to investors by public entities. Municipal leases may take the
form of a lease or an installment purchase contract issued by a state or
local government authority to obtain funds to acquire a wide variety of
equipment and facilities.

Some municipal lease securities may be deemed to be "illiquid"
securities. Their purchase by the Trust would be limited as described in the
prospectus in "Illiquid Securities." From time to time the Trust may invest
more than 5% of its net assets in municipal lease obligations that the
Manager has determined to be liquid under guidelines set by the Board of
Trustees. Those guidelines require the Manager to evaluate:
o the frequency of trades and price quotations for such securities;
o the number of dealers or other potential buyers willing to purchase or
sell such securities;
o the availability of market-makers; and
o the nature of the trades for such securities.

Municipal leases have special risk considerations. Although lease
obligations do not constitute general obligations of the municipality for
which the municipality's taxing power is pledged, a lease obligation is
ordinarily backed by the municipality's covenant to budget for, appropriate
and make the payments due under the lease obligation. However, certain lease
obligations contain "non-appropriation" clauses which provide that the
municipality has no obligation to make lease or installment purchase payments
in future years unless money is appropriated for that purpose on a yearly
basis. While the obligation might be secured by the lease, it might be
difficult to dispose of that property in case of a default.

Projects financed with certificates of participation generally are not
subject to state constitutional debt limitations or other statutory
requirements that may apply to other municipal securities. Payments by the
public entity on the obligation underlying the certificates are derived from
available revenue sources. That revenue might be diverted to the funding of
other municipal service projects. Payments of interest and/or principal with
respect to the certificates are not guaranteed and do not constitute an
obligation of a state or any of its political subdivisions.

In addition to the risk of "non-appropriation," municipal lease
securities do not have as highly liquid a market as conventional municipal
bonds. Municipal leases, like other municipal debt obligations, are subject
to the risk of non-payment of interest or repayment of principal by the
issuer. The ability of issuers of municipal leases to make timely lease
payments may be adversely affected in general economic downturns and as
relative governmental cost burdens are reallocated among federal, state and
local governmental units. A default in payment of income would result in a
reduction of income to the Trust. It could also result in a reduction in the
value of the municipal lease and that, as well as a default in repayment of
principal, could result in a decrease in the net asset value of the Trust.
While the Trust holds such securities, the Manager will also evaluate the
likelihood of a continuing market for these securities and their credit
quality.

|X| Floating Rate/Variable Rate Obligations. The Trust may invest in
instruments with floating or variable interest rates. The interest rate on a
floating rate obligation is based on a stated prevailing market rate, such as
a bank's prime rate, the 90-day U.S. Treasury Bill rate, the rate of return
on commercial paper or bank certificates of deposit, or some other standard.
The rate on the investment is adjusted automatically each time the market
rate is adjusted. The interest rate on a variable rate obligation is also
based on a stated prevailing market rate but is adjusted automatically at a
specified interval. Some variable rate or floating rate obligations in which
the Trust may invest have a demand feature entitling the holder to demand
payment of an amount approximately equal to the amortized cost of the
instrument or the principal amount of the instrument plus accrued interest at
any time, or at specified intervals not exceeding the maximum time permitted
under Rule 2a-7 (which is currently 397 days). These notes may or may not be
backed by bank letters of credit.

Variable rate demand notes may include master demand notes, which are
obligations that permit the Trust to invest fluctuating amounts in a note.
The amount may change daily without penalty, pursuant to direct arrangements
between the Trust, as the note purchaser, and the issuer of the note. The
interest rates on these notes fluctuate from time to time. The issuer of
this type of obligation normally has a corresponding right in its discretion,
after a given period, to prepay the outstanding principal amount of the
obligation plus accrued interest. The issuer must give a specified number of
days' notice to the holders of those obligations. Generally, the changes in
the interest rate on those securities reduce the fluctuation in their market
value. As interest rates decrease or increase, the potential for capital
appreciation or depreciation is less than that for fixed-rate obligations
having the same maturity.

Because these types of obligations are direct lending arrangements
between the note purchaser and issuer of the note, these instruments
generally will not be traded. Generally, there is no established secondary
market for these types of obligations, although they are redeemable from the
issuer at face value. Accordingly, where these obligations are not secured
by letters of credit or other credit support arrangements, the Trust's right
to redeem them is dependent on the ability of the note issuer to pay
principal and interest on demand. These types of obligations usually are not
rated by credit rating agencies. The Trust may invest in obligations that
are not rated only if the Manager determines at the time of investment that
they are Eligible Securities. The Manager, on behalf of the Trust, will
monitor the creditworthiness of the issuers of the floating and variable rate
obligations in the Trust's portfolio on an ongoing basis. There is no limit
on the amount of the Trust's assets that may be invested in floating rate and
variable rate obligations that meet the requirements of Rule 2a-7.

|X| When-Issued and Delayed Delivery Transactions. As stated in the
Prospectus, the Trust may invest in municipal securities on a "when-issued"
or "delayed delivery" basis. Payment for and delivery of the securities shall
not exceed 120 days from the date the offer is accepted. The purchase price
and yield are fixed at the time the buyer enters into the commitment. During
the period between the time of commitment and settlement, no payment is made
by the Trust to the issuer and no interest accrues to the Trust from this
investment. However, the Trust intends to be as fully invested as possible
and will not invest in when-issued securities if its income or net asset
value will be materially adversely affected. At the time the Trust makes the
commitment to purchase a municipal security on a when-issued basis, it will
record the transaction on its books and reflect the value of the security in
determining its net asset value. It will also segregate cash or other liquid
high quality Securities equal in value to the commitment for the when-issued
securities. While when-issued securities may be sold prior to settlement
date, the Trust intends to acquire the securities upon settlement unless a
prior sale appears desirable for investment reasons. There is a risk that
the yield available in the market when delivery occurs may be higher than the
yield on the security acquired.

|X| Tender Option Bond Programs. The Trust may also invest a significant
portion of its assets in tender option bond programs. Tender option bond
programs are a type of municipal bond derivative security that provide for
tax-free income at a variable rate. In such programs, high quality
longer-term municipal bonds are held inside a trust and varying economic
interests in the bonds are created and sold to investors. One class of
investors earns interest at a rate based on current short-term tax-exempt
interest rates and may tender its holdings at par to the program sponsor at
agreed upon intervals. This share class is an eligible security for municipal
money market fund investments. A second class of investors has a residual
income interest (earning any net income produced by the underlying bonds that
exceeds the variable income paid to the other class of investors) and bears
the risk that the underlying bonds decline in value due to changes in market
interest rates. The Funds do not invest in this second class of shares. Under
the terms of such programs, both investor classes bear the risk of loss that
would result from a default on the underlying bonds as well as from other
potential, yet remote, credit ot structural events.

|X| Ratings of Securities - Portfolio Quality, Maturity and
Diversification. Under Rule 2a-7 of the Investment Company Act of 1940
("Investment Company Act"), the Trust uses the amortized cost method to value
its portfolio securities to determine the Trust's net asset value per share.
Rule 2a-7 imposes requirements for the maturity, quality and diversification
of the securities which the Trust buys. The Trust may purchase only those
securities that the Manager, under procedures approved by the Board of
Trustees, has determined have minimal credit risk and, as such, are "eligible
securities."

o Quality. Eligible securities are securities that have received a
rating in one of the two highest short-term rating categories by a rating
organization. Rating organizations are designated by the SEC. Eligible
securities may be "first tier" or "second tier" securities. First tier
securities are those that have received a rating in the highest category for
short term debt obligations by at least two rating organizations. If only
one rating organization has rated the security, it must be rated in the
highest category for that rating organization. U.S. government securities
and securities issued by a registered money market mutual fund are also first
tier securities.

The Trust may also buy second tier "conduit securities." These
eligible securities are securities rated by rating organizations but are not
first tier securities. Conduit securities are municipal securities such as
industrial development or revenue bonds issued to finance non-government
projects. The payment of the principal and interest on a conduit security is
not the obligation of the municipal issuer, but is the obligation of another
person who is ultimately responsible for the payment of principal and
interest, such as the user of the facility. The Trust may not invest more
than 5% of its total assets in second tier conduit securities.

The Trust may also buy unrated securities that the Manager
determines are comparable in quality to a first or second tier security by
applying certain criteria established by the Board to determine its
creditworthiness. These criteria require a high quality short term or
long-term rating (depending on the security) from a rating organization.
Unrated securities the Trust may buy include asset backed securities and
securities subject to "demand features" or "guarantees."

The Trust may purchase a security subject to a guarantee if the
guarantee is an eligible security or a first tier security. The trust may
also purchase a security subject to a "conditional" demand feature if the
demand feature is an eligible security and the Manager has decided that the
conditional demand feature meets the requirements imposed by Rule 2a-7.

If a security's rating is downgraded, the Manager or the Board of
Trustees may have to reassess the security's credit risk. If a security is
downgraded, the Manager or the Board of Trustees will promptly reassess
whether the security continues to present minimal credit risk, reassess the
status of the security as an "eligible security," and take such actions as is
appropriate. If the Trust disposes of the security within five days of the
Manager learning of the downgrade, the Manager will provide the Board of
Trustees with subsequent notice of such downgrade. If a security is in
default, or ceases to be an eligible security, or is determined no longer to
present minimal credit risks, the Board of Trustees must determine whether it
would be in the best interests of the Trust to dispose of the security.

o Diversification. With respect to 75% of its total assets, the Trust
cannot invest more than 5% of its total assets in securities issued by one
issuer. It cannot invest more than 5% of its total assets in securities of
one issuer unless the security is a first tier security. The Trust also
cannot invest more than 1% of its total assets or $1.0 million, whichever is
greater, in second tier securities of one issuer. For diversification
purposes, the Trust is considered to have purchased the security underlying a
repurchase agreement if the repurchase agreement is fully collateralized.
For a refunded security, the Trust is considered to have the U.S. government
securities underlying the refunded security. For conduit securities, the
Trust considers the issuer to be the person ultimately responsible for
payment of the obligation. If the Trust buys an asset backed security, the
issuer of the security is deemed to be the "special purpose" entity which
issued the security. A special purpose entity is an entity which is
organized solely for the purpose of issuing asset backed securities. If the
asset backed securities issued by the special purpose entity include the
obligations of another person or another special purpose entity and those
obligations amount to 10% or more of the asset backed securities the Trust
buys, that other person or entity is considered to be the issuer of a pro
rata percentage of the asset backed security.

The Trust may buy a security subject to a demand feature or
guarantee. In this case, with respect to 75% of its total assets, the Trust
may not invest more than 10% of its total assets in securities issued by or
subject to demand features or guarantees issued by the same issuer. If the
demand feature or guarantee is a second tier security, the Trust may not
invest more than 5% of its total assets in securities subject to demand
features or guarantees from the same issuer. And, the Trust may not invest
more than 10% of its total assets in securities issued by or subject to
demand features or guarantees from the same issuer. However, if the demand
feature or guarantee is issued by a person who is a non-controlled person,
the Trust does not have to limit its investments to no more than 10% of its
total assets in securities issued by or subject to demand features or
guarantees from the same issuer.

o Maturity. The Trust must maintain a dollar-weighted average portfolio
maturity of not more than 90 days, and the maturity of any single security
must not be in excess the maximum permitted maturity under Rule 2a-7 which is
currently 397 days from the date of purchase. The Trust also may buy
adjustable and floating rate securities, enter into repurchase agreements and
lend portfolio securities. Rule 2a-7 defines how the maturities of these
securities are determined.

o Demand Features and Guarantees. Demand features and guarantees and
some of their uses are described in the Prospectus. The Trust also uses
demand features and guarantees to satisfy the maturity, quality and
diversification requirements described above. The Trust considers the person
which issues the demand feature as the person to whom the Trust will look for
payment. An unconditional demand feature is considered a guarantee and the
Trust looks to the person making the guarantee for payment of the obligation
of the underlying security.

The Trust may obtain a demand feature from the seller to repurchase
the securities that entitles the Trust to achieve same day settlement from
the repurchaser and to receive an exercise price equal to the amortized cost
of the underlying security plus accrued interest, if any, at the time of
exercise. Another type of demand feature enables the Trust to sell the
underlying security within a specified period of time at a fixed exercise
price. The Trust may pay for demand features either separately in cash or by
paying a higher price for the securities acquired subject to the demand
features. The Trust will enter into these transactions only with banks and
dealers which, in the Manager's opinion, present minimal credit risks. The
Trust's purchases of demand features are subject to the provisions of Rule
2a-7 under the Investment Company Act.

The Trust's ability to exercise a demand feature or guarantee will
depend on the ability of the bank or dealer to pay for the securities if the
demand feature or guarantee is exercised. If the bank or dealer should
default on its obligation, the Trust might not be able to recover all or a
portion of any loss sustained from having to sell the security elsewhere.
Demand features and guarantees are not transferable by the Trust, and
therefore terminate if the Trust sells the underlying security to a third
party. The Trust intends to enter into these arrangements to facilitate
portfolio liquidity, although such arrangements may enable the Trust to sell
a security at a pre-arranged price which may be higher than the prevailing
market price at the time the demand feature or guarantee is exercised. Any
considerations paid by the Trust for the demand feature (which increases the
cost of the security and reduces the yield otherwise available for the
security) will be reflected on the Trust's books as unrealized depreciation
while the demand feature or guarantee is held, and a realized gain or loss
when demand feature is exercised or expires.

Other Investment Strategies

|X| Repurchase Agreements. In a repurchase transaction, the Trust acquires
a security from, and simultaneously resells it to, an approved vendor (a U.S.
commercial bank or the U.S. branch of a foreign bank having total domestic
assets of at least $1 billion or a broker-dealer with a net capital of at
least $50 million and which has been designated a primary dealer in
government securities). They must meet credit requirements set by the Manager
from time to time. The resale price exceeds the purchase price by an amount
that reflects an agreed-upon interest rate effective for the period during
which the repurchase agreement is in effect. The majority of these
transactions run from day to day, and delivery pursuant to the resale
typically will occur within one to five days of the purchase. Repurchase
agreements are considered "loans" under the Investment Company Act,
collateralized by the underlying security. The Trust's repurchase agreements
require that at all times while the repurchase agreement is in effect, the
value of the collateral must equal or exceed the repurchase price to fully
collateralize the repayment obligation. Additionally, the Manager will
monitor the vendor's creditworthiness to confirm that the vendor is
financially sound and will continuously monitor the collateral's value.

Pursuant to an Exemptive Order issued by the Securities and Exchange
Commission, the Trust, along with other affiliated entities managed by the
Manager, may transfer uninvested cash balances into one or more joint
repurchase accounts. These balances are invested in one or more repurchase
agreements, secured by U.S. government securities. Securities that are
pledged as collateral for repurchase agreements are held by a custodian bank
until the agreements mature. Each joint repurchase arrangement requires that
the market value of the collateral be sufficient to cover payments of
interest and principal; however, in the event of default by the other party
to the agreement, retention or sale of the collateral may be subject to legal
proceedings.

|X| Bank Loan Participation Agreements. The Trust may invest in bank loan
participation agreements, subject to the investment limitation set forth in
the Prospectus as to investments in illiquid securities. Participation
agreements provide an undivided interest in a loan made by the bank issuing
the participation interest in the proportion that the buyer's investment
bears to the total principal amount of the loan. Under this type of
arrangement, the issuing bank may have no obligation to the buyer other than
to pay principal and interest on the loan if and when received by the bank.
Thus, the Trust must look to the creditworthiness of the borrower, which is
obligated to make payments of principal and interest on the loan. If the
borrower fails to pay scheduled principal or interest payments, the Trust may
experience a reduction in income.

|X| Diversification. For purposes of diversification under the Investment
Company Act, and the Trust's investment restrictions, the identification of
the issuer of a Municipal Bond or Note depends on the terms and conditions of
the security. When the assets and revenues of an agency, authority,
instrumentality or other political subdivision are separate from those of the
government creating the subdivision and the security is backed only by the
assets and revenues of the subdivision, such subdivision would be deemed to
be the sole issuer. Similarly, in the case of an industrial development
bond, if that bond is backed only by the assets and revenues of the
nongovernmental user, then such nongovernmental user would be deemed to be
the sole issuer. If, however, in either case, the creating government or
some other entity guarantees a security, such a guarantee would be considered
a separate security and is to be treated as an issue of such government or
other entity. Conduit securities are deemed to be issued by the person
ultimately responsible for payments of interest and principal on the security.

Other Investment Restrictions

|X| What Are "Fundamental Policies?" Fundamental policies are those
policies that the Trust has adopted to govern its investments that can be
changed only by the vote of a "majority" of the Trust's outstanding voting
securities. Under the Investment Company Act, a "majority" vote is defined
as the vote of the holders of the lesser of:
o 67% or more of the shares present or represented by proxy at a
shareholder meeting, if the holders of more than 50% of the
outstanding shares are present or represented by proxy, or
o more than 50% of the outstanding shares.

The Trust's investment objective is a fundamental policy. Other
policies described in the Prospectus or this Statement of Additional
Information are "fundamental" only if they are identified as such. The
Trust's Board of Trustees can change non-fundamental policies without
shareholder approval. However, significant changes to investment policies
will be described in supplements or updates to the Prospectus or this
Statement of Additional Information, as appropriate. The Trust's most
significant investment policies are described in the Prospectus.

|X| Does the Trust Have Additional Fundamental Policies? The following
investment restrictions are fundamental policies of the Trust.

o The Trust cannot make loans, except by purchasing debt obligations in
accordance with its investment policies as approved by the Board,
or by entering into repurchase agreements, or by lending portfolio
securities in accordance with applicable regulations;

o The Trust cannot borrow money except as a temporary measure for
extraordinary or emergency purposes, and then only up to 10% of
the value of its assets; no more than 10% of the Trust's net
assets may be pledged, mortgaged or assigned to secure a debt; no
investments may be made while outstanding borrowings, other than
by means of reverse repurchase agreements (which are not
considered borrowings under this restriction), exceed 5% of its
assets;

o The Trust cannot invest more than 5% of the value of its total assets
taken at market value in the securities of any one issuer (not
including the U.S. government or its agencies or
instrumentalities, whose securities may be purchased without
limitation for defensive purposes);

o The Trust cannot purchase more than 10% of the outstanding voting
securities of any one issuer or invest in companies for the
purpose of exercising control;

o The Trust cannot invest in commodities or commodity contracts or invest
in interests in oil, gas or other mineral exploration or
development programs;

o The Trust cannot invest in real estate; however the Trust may purchase
municipal bonds or notes secured by interests in real estate;

o The Trust cannot make short sales of securities or purchase securities
on margin, except for short-term credits necessary for the
clearance of purchases and sales of portfolio securities;

o The Trust cannot invest in or hold securities of any issuer if those
officers and trustees or directors of the Trust or its advisor who
beneficially own individually more than 0.5% of the securities of
such issuer together own more than 5% of the securities of such
issuer;

o The Trust cannot underwrite securities issued by other persons except
to the extent that, in connection with the disposition of its
portfolio investments, it may be deemed to be an underwriter for
purposes of the Securities Act of 1933;

o The Trust cannot invest in securities of other investment companies
except as they may be acquired as part of a merger, consolidation
or acquisition of assets;

o The Trust cannot issue "senior securities," but this does not prohibit
certain investment activities for which assets of the Trust are
designated as segregated, or margin, collateral or escrow
arrangements are established, to cover the related obligations; or

o The Trust cannot invest 25% or more of its total assets in any one
industry; however, for the purposes of this restriction, municipal
securities and U.S. government obligations are not considered to be
part of any single industry.

Except for the fundamental investment restriction regarding the Trust's
borrowing policy, unless the Prospectus or this Statement of Additional
Information states that a percentage restriction applies on an ongoing basis,
it applies only at the time the Trust makes an investment. The Trust need not
sell securities to meet the percentage limits if the value of the investment
increases in proportion to the size of the Trust.

For purposes of the Trust's policy not to concentrate its investments
in securities of issuers, the Trust has adopted the industry classifications
set forth in Appendix B to this Statement of Additional Information. This is
not a fundamental policy.

Disclosure of Portfolio Holdings. The Trust has adopted policies and
procedures concerning the dissemination of information about its portfolio
holdings by employees, officers and/or directors of OppenheimerFunds Inc.,
Distributor, Sub-Distributor and Transfer Agent. These policies are designed
to assure that non-public information about portfolio securities is
distributed only for a legitimate business purpose, and is done in a manner
that (a) conforms to applicable laws and regulations and (b) is designed to
prevent that information from being used in a way that could negatively
affect the Trust's investment program or enable third parties to use that
information in a manner that is harmful to the Trust.

o Public Disclosure. The Fund's portfolio holdings are made publicly
available no later than 60 days after the close of each of the
Fund's fiscal quarters in semi-annual and annual reports to
shareholders, or in its Statements of Investments on Form N-Q, which
are publicly available at the Securities and Exchange Commission
("SEC").

Until publicly disclosed, the Trust's portfolio holdings are
proprietary, confidential business information. While recognizing the
importance of providing the Trust's shareholders with information about their
Trust's investments and providing portfolio information to a variety of third
parties to assist with the management, distribution and administrative
process, the need for transparency must be balanced against the risk that
third parties who gain access to the Trust's portfolio holdings information
could attempt to use that information to trade ahead of or against the Trust,
which could negatively affect the prices the Trust is able to obtain in
portfolio transactions or the availability of the securities that portfolio
managers are trading on the Trust's behalf.

The Manager and its subsidiaries and affiliates, employees, officers,
and directors, shall neither solicit nor accept any compensation or other
consideration (including any agreement to maintain assets in the Trust or in
other investment companies or accounts managed by the Manager or any
affiliated person of the Manager) in connection with the disclosure the
Trust's non-public portfolio holdings. The receipt of investment advisory
fees or other fees and compensation paid to the Manager and its subsidiaries
pursuant to agreements approved by the Trust's Board shall not be deemed to
be "compensation" or "consideration" for these purposes. It is a violation
of the Code of Ethics for any covered person to release holdings in
contravention of portfolio holdings disclosure policies and procedures
adopted by the Trust.

A list of the top 10 or more portfolio securities holdings (based on
invested assets), listed by security or by issuer, as of the end of each
month may be disclosed to third parties (subject to the procedures below) no
sooner than 15 days after month-end.

Except under special limited circumstances discussed below, month-end
lists of the Trust's complete portfolio holdings may be disclosed no sooner
than 30-days after the relevant month-end, subject to the procedures below.
If the Trust's complete portfolio holdings have not been disclosed publicly,
they may be disclosed pursuant to special requests for legitimate business
reasons, provided that:

o The third-party recipient must first submit a request for release of
Trust portfolio holdings, explaining the business reason for the
request;
o Senior officers (a Senior Vice President or above) in the Manager's
Portfolio and Legal departments must approve the completed request for
release of Trust portfolio holdings; and
o The third-party recipient must sign the Manager's portfolio holdings
non-disclosure agreement before receiving the data, agreeing to keep
information that is not publicly available regarding the Trust's
holdings confidential and agreeing not to trade directly or indirectly
based on the information.

The Trust's complete portfolio holdings positions may be released to
the following categories of entities or individuals on an ongoing basis,
provided that such entity or individual either (1) has signed an agreement to
keep such information confidential and not trade on the basis of such
information or (2) is subject to fiduciary obligations, as a member of the
Trust's Board, or as an employee, officer and/or trustee of the Manager,
Distributor, Sub-Distributor or Transfer Agent, or their respective legal
counsel, not to disclose such information except in conformity with these
policies and procedures and not to trade for his/her personal account on the
basis of such information:

o Employees of the Trust's Manager, Distributor and Transfer Agent who
need to have access to such information (as determined by senior
officers of such entity),
o The Trust's certified public accountants and independent registered
public accounting firm,
o Members of the Trust's Board and the Board's legal counsel,
o The Trust's custodian bank,
o A proxy voting service designated by the Trust and its Board,
o Rating/ranking organizations (such as Lipper and Morningstar),
o Portfolio pricing services retained by the Manager to provide portfolio
security prices, and
o Dealers, to obtain bids (price quotations, if securities are not priced
by the Trust's regular pricing services).

Portfolio holdings information of the Trust may be provided, under
limited circumstances, to brokers and/or dealers with whom the Trust trades
and/or entities that provide investment coverage and/or analytical
information regarding the Trust's portfolio, provided that there is a
legitimate investment reason for providing the information to the broker,
dealer or other entity. Month-end portfolio holdings information may, under
this procedure, be provided to vendors providing research information and/or
analytics to the fund, with at least a 15-day delay after the month end, but
in certain cases may be provided to a broker or analytical vendor with a 1- 2
day lag to facilitate the provision of requested investment information to
the manager to facilitate a particular trade or the portfolio manager's
investment process for the Trust. Any third party receiving such information
must first sign the Manager's portfolio holdings non-disclosure agreement as
a pre-condition to receiving this information.

Portfolio holdings information (which may include information on
individual securities positions or multiple securities) may be provided to
the entities listed below (1) by portfolio traders employed by the Manager in
connection with portfolio trading, and (2) by the members of the Manager's
Security Valuation Group and Accounting Departments in connection with
portfolio pricing or other portfolio evaluation purposes:

o Brokers and dealers in connection with portfolio transactions
(purchases and sales)
o Brokers and dealers to obtain bids or bid and asked prices (if
securities held by the Trust are not priced by the fund's regular
pricing services)
o Dealers to obtain price quotations where the fund is not identified as
the owner

Portfolio holdings information (which may include information on the
Trust's entire portfolio or individual securities therein) may be provided by
senior officers of the Manager or attorneys on the legal staff of the
Manager, Distributor, Sub-Distributor or Transfer Agent, in the following
circumstances:

o Response to legal process in litigation matters, such as responses to
subpoenas or in class action matters where the Fund may be part of the
plaintiff class (and seeks recovery for losses on a security) or a
defendant,
o Response to regulatory requests for information (the SEC, NASD, state
securities regulators, and/or foreign securities authorities, including
without limitation requests for information in inspections or for
position reporting purposes),
o To potential sub-advisors of portfolios (pursuant to confidentiality
agreements),
o To consultants for retirement plans for plan sponsors/discussions at
due diligence meetings (pursuant to confidentiality agreements),
o Investment bankers in connection with merger discussions (pursuant to
confidentiality agreements)

Portfolio managers and analysts may, subject to the Manager's policies
on communications with the press and other media, discuss portfolio
information in interviews with members of the media, or in due diligence or
similar meetings with clients or prospective purchasers of Fund shares or
their financial intermediary representatives.

The Trust's shareholders may, under unusual circumstances (such as a
lack of liquidity in the Trust's portfolio to meet redemptions), receive
redemption proceeds of their Trust shares paid as pro rata shares of
securities held in the Trust's portfolio. In such circumstances, disclosure
of the Trust's portfolio holdings may be made to such shareholders.

The Chief Compliance Officer of the Trust and the Manager, Distributor,
Sub-Distributor and Transfer Agent (the "CCO") shall oversee the compliance
by the Manager, Distributor, Sub-Distributor Transfer Agent, and their
personnel with these policies and procedures. At least annually, the CCO
shall report to the Trust's Board on such compliance oversight and on the
categories of entities and individuals to which disclosure of portfolio
holdings of the Trust has been made during the preceding year pursuant to
these policies. The CCO shall report to the Trust's Board any material
violation of these policies and procedures during the previous calendar
quarter and shall make recommendations to the Board as to any amendments that
the CCO believes are necessary and desirable to carry out or improve these
policies and procedures.

The Manager and/or the Trust have entered into ongoing arrangements to
make available information about the Trust's portfolio holdings. One or more
of the Oppenheimer funds may currently disclose portfolio holdings
information based on ongoing arrangements to the following parties:

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A.G. Edwards & Sons Keijser Securities
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ABG Securities Kempen & Co. USA Inc.
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ABN AMRO Kepler Equities/Julius
Baer Sec
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Advest KeyBanc Capital Markets
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AG Edwards Leerink Swan
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American Technology Research Legg Mason
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Auerbach Grayson Lehman
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Banc of America Securities Lehman Brothers
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Barclays Lipper
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Baseline Loop Capital Markets
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Bear Stearns MainFirst Bank AG
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Belle Haven Makinson Cowell US Ltd
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Bloomberg Maxcor Financial
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BNP Paribas Merrill
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BS Financial Services Merrill Lynch
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Buckingham Research Group Midwest Research
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Caris & Co. Mizuho Securities
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CIBC World Markets Morgan Stanley
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Citigroup Morningstar
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Citigroup Global Markets Natexis Bleichroeder
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Collins Stewart Ned Davis Research Group
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Craig-Hallum Capital Group LLCNomura Securities
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Credit Agricole Cheuvreux Pacific Crest
N.A. Inc.
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Credit Suisse First Boston Pacific Crest Securities
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Daiwa Securities Pacific Growth Equities
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Davy Petrie Parkman
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Deutsche Bank Pictet
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Deutsche Bank Securities Piper Jaffray Inc.
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Dresdner Kleinwort WassersteinPlexus
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Emmet & Co Prager Sealy & Co.
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Empirical Research Prudential Securities
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Enskilda Securities Ramirez & Co.
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Essex Capital Markets Raymond James
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Exane BNP Paribas RBC Capital Markets
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Factset RBC Dain Rauscher
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Fidelity Capital Markets Research Direct
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Fimat USA Inc. Robert W. Baird
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First Albany Roosevelt & Cross
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First Albany Corporation Russell Mellon
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Fixed Income Securities Ryan Beck & Co.
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Fortis Securities Sanford C. Bernstein
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Fox-Pitt, Kelton Scotia Capital Markets
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Friedman, Billing, Ramsey SG Cowen & Co.
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Fulcrum Global Partners SG Cowen Securities
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Garp Research Soleil Securities Group
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George K Baum & Co. Standard & Poors
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Goldman Stone & Youngberg
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Goldman Sachs SWS Group
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HSBC Taylor Rafferty
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HSBC Securities Inc Think Equity Partners
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ING Barings Thomas Weisel Partners
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ISI Group UBS
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Janney Montgomery Wachovia
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Jefferies Wachovia Corp
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Jeffries & Co. Wachovia Securities
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JP Morgan Wescott Financial
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JP Morgan Securities William Blair
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JPP Eurosecurities Yieldbook
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Keefe, Bruyette & Woods
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How the Trust is Managed

Organization and History. The Trust is an open-end, diversified management
investment company organized as a Massachusetts business trust in 1985, with
an unlimited number of authorized shares of beneficial interest.

|X| Classes of Shares. The Trust has a single class of shares of stock.
While that class has no designation, it is deemed to be the equivalent of
Class A for purposes of the shareholder account policies that apply to Class
A shares of the Oppenheimer funds.

Shares of the Trust are freely transferable. Each share has one vote
at shareholder meetings, with fractional shares voting proportionally on
matters submitted to a vote of shareholders. There are no preemptive or
conversion rights and shares participate equally in the assets of the Trust
upon liquidation.

Meetings of Shareholders. As a Massachusetts business trust, the Trust is
not required to hold, and does not plan to hold, regular annual meetings of
shareholders, but may do so from time to time on important matters or when
required to do so by the Investment Company Act or other applicable law.
Shareholders have the right, upon a vote or declaration in writing of
two-thirds of the outstanding shares of the Trust, to remove a Trustee or to
take other action described in the Trust's Declaration of Trust.

The Trustees will call a meeting of shareholders to vote on the removal
of a Trustee upon the written request of the record holders of 10% of its
outstanding shares. If the Trustees receive a request from at least 10
shareholders stating that they wish to communicate with other shareholders to
request a meeting to remove a Trustee, the Trustees will then either make the
Trust's shareholder list available to the applicants or mail their
communication to all other shareholders at the applicants' expense. The
shareholders making the request must have been shareholders for at least six
months and must hold shares of the Trust valued at $25,000 or more or
constituting at least 1% of the Trust's outstanding shares, whichever is
less. The Trustees may also take other action as permitted by the Investment
Company Act.

|X| Shareholder and Trustee Liability. The Declaration of Trust contains
an express disclaimer of shareholder or Trustee liability for the Trust's
obligations. It also provides for indemnification and reimbursement of
expenses out of the Trust's property for any shareholder held personally
liable for its obligations. The Declaration of Trust also states that upon
request, the Trust shall assume the defense of any claim made against a
shareholder for any act or obligation of the Trust and shall satisfy any
judgment on that claim. Massachusetts law permits a shareholder of a
business trust (such as the Trust) to be held personally liable as a
"partner" under certain circumstances. However, the risk that a Trust
shareholder will incur financial loss from being held liable as a "partner"
of the Trust is limited to the relatively remote circumstances in which the
Trust would be unable to meet its obligations.

The Trust's contractual arrangements state that any person doing
business with the Trust (and each shareholder of the Trust) agrees under its
Declaration of Trust to look solely to the assets of the Trust for
satisfaction of any claim or demand that may arise out of any dealings with
the Trust. Additionally, the Trustees shall have no personal liability to any
such person, to the extent permitted by law.

Board of Trustees and Oversight Committees. The Trust is governed by a Board
of Trustees, which is responsible for protecting the interests of
shareholders under Massachusetts law. The Trustees meet periodically
throughout the year to oversee the Trust's activities, review its
performance, and review the actions of the Manager.

The Board of Trustees has an Audit Committee, a Review Committee and a
Governance Committee. The Audit Committee is comprised solely of Independent
Trustees. The members of the Audit Committee are Edward L. Cameron
(Chairman), George C. Bowen, Robert J. Malone and F. William Marshall, Jr.
The Audit Committee held 7 meetings during the fiscal year ended June 30,
2005. The Audit Committee furnishes the Board with recommendations regarding
the selection of the Trust's independent registered public accounting firm
(also referred to as the "independent Auditors"). Other main functions of the
Audit Committee, outlined in the Audit Committee Charter, include, but are
not limited to: (i) reviewing the scope and results of financial statement
audits and the audit fees charged; (ii) reviewing reports from the Trust's
independent Auditors regarding the Trust's internal accounting procedures and
controls; (iii) reviewing reports from the Manager's Internal Audit
Department; (iv) maintaining a separate line of communication between the
Trust's independent Auditors and the Trustees who are not "interested
persons" under the Investment Company Act (the "Independent Trustees");
(v) reviewing the independence of the Trust's independent Auditors; and
(vi) pre-approving the provision of any audit and non-audit services by the
Trust's independent Auditors, including tax services, that are not prohibited
by the Sarbanes-Oxley Act, to the Trust; and (vii) reviewing certain reports
from and meeting periodically with the Trust's Chief Compliance Officer.

The members of the Review Committee are Jon S. Fossel (Chairman),
Robert G. Avis, Sam Freedman, Richard F. Grabish and Beverly Hamilton. The
Review Committee held 6 meetings during the Trust's fiscal year ended June
30, 2005. Among other duties set forth in the Review Committee's Charter, the
Review Committee reports and makes recommendations to the Board concerning
the fees paid to the Trust's Transfer Agent and the Manager and the services
provided to the Trust by the Transfer Agent and the Manager. The Review
Committee also reviews the Trust's investment performance as well as the
policies and procedures adopted by the Trust to comply with the Investment
Company Act and other applicable law.

The Governance Committee is comprised solely of Independent Trustees. The
members of the Governance Committee are, Robert J. Malone (Chairman), William
Armstrong, Beverly L. Hamilton and F. William Marshall, Jr. The Governance
Committee held 5 meetings during the Trust's fiscal year ended June 30, 2005.

The Governance Committee has adopted a charter setting forth its duties
and responsibilities. Among other duties, the Governance Committee reviews
and oversees the Trust's governance guidelines, the adequacy of the Trust's
Code of Ethics and the nomination of Trustees, including Independent
Trustees. The Governance Committee has adopted a process for shareholder
submission of nominees for board positions. Shareholders may submit names of
individuals, accompanied by complete and properly supported resumes, for the
Governance Committee's consideration by mailing such information to the
Governance Committee in care of the Trust. The Governance Committee may
consider such persons at such time as it meets to consider possible nominees.
The Governance Committee, however, reserves sole discretion to determine
which candidates for Trustees and independent Trustees it will recommend to
the Board and/or shareholders and it may identify candidates other than those
submitted by Shareholders. The Governance Committee may, but need not,
consider the advice and recommendation of the Manager and/or its affiliates
in selecting nominees. The full Board elects new Trustees except for those
instances when a shareholder vote is required.

Shareholders who desire to communicate with the Board should address
correspondence to the Board or an individual Board member and may submit
their correspondence electronically at www.oppenheimerfunds.com under the
caption "contact us" or by mail to the Trust at the address above.

Trustees and Officers of the Trust. Except for Messrs. Murphy and Grabish,
each of the Trustees is an "Independent Trustee," under the Investment
Company Act. Mr. Grabish is an "Interested Trustee," by virtue of his
positions with A.G. Edwards & Sons, Inc. Mr. Grabish, serves as Trustee for
only the following funds: Centennial California Tax Exempt Trust, Centennial
Government Trust, Centennial Money Market Trust, Centennial New York Tax
Exempt Trust and Centennial Tax Exempt Trust. With the exception of Mr.
Grabish, all of the Trustees are also trustees or directors of the following
Oppenheimer/Centennial Funds( referred to as "Board II Funds"):

Oppenheimer Cash Reserves Oppenheimer Principal Protected
Trust III

Oppenheimer Champion Income Fund Oppenheimer Real Asset Fund
Oppenheimer Senior Floating Rate

Oppenheimer Capital Income Fund Fund
Oppenheimer Equity Fund, Inc. Oppenheimer Strategic Income Fund
Oppenheimer High Yield Fund Oppenheimer Variable Account Funds
Oppenheimer International Bond Fund Panorama Series Fund, Inc.
Oppenheimer Integrity Funds
Centennial California Tax Exempt
Oppenheimer Limited-Term Government Fund Trust
Oppenheimer Main Street Funds, Inc. Centennial Government Trust
Oppenheimer Main Street Opportunity Fund Centennial Money Market Trust
Centennial New York Tax Exempt
Oppenheimer Main Street Small Cap Fund Trust
Oppenheimer Municipal Fund Centennial Tax Exempt Trust
Oppenheimer Principal Protected Trust
Oppenheimer Principal Protected Trust II

Present or former officers, directors, trustees and employees (and
their immediate family members) of the Trust, the Manager and its affiliates,
and retirement plans established by them for their employees are permitted to
purchase Class A shares of the Trust and the other Oppenheimer funds at net
asset value without sales charge. The sales charge on Class A shares is
waived for that group because of the reduced sales efforts realized by the
Distributor.

Messrs. Bonnell, Gillespie, Murphy, Petersen, Vandehey, Vottiero,
Wixted and Zack, and Mss. Bloomberg and Ives, who are officers of the Trust,
hold the same offices with one or more of the other Board II Funds. As of
September 30, 2005 the Trustees and officers of the Trust, as a group, owned
of record or beneficially less than 1% of the shares of the Trust. The
foregoing statement does not reflect ownership of shares held of record by an
employee benefit plan for employees of the Manager, other than the shares
beneficially owned under that plan by the officers of the Board II Funds. In
addition, none of the Independent Trustees (nor any of their immediate family
members) own securities of either the Manager, Distributor or Sub-Distributor
or of any entity directly or indirectly controlling, controlled by or under
common control with the Manager, Distributor or Sub-Distributor of the Board
II Funds.

Biographical Information. The Trustees and officers, their positions with the
Trust length of service in such position(s), and principal occupations and
business affiliations during at least the past five years are listed in the
charts below. The charts also include information about each Trustee's
beneficial share ownership in the Trust and in all of the registered
investment companies that the Trustee oversees in the Oppenheimer family of
funds ("Supervised Funds"). The address of each Trustee in the charts below
is 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Trustee serves for an
indefinite term, until his or her resignation, retirement, death or removal.

- -------------------------------------------------------------------------------------
Independent Trustees
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Name, Principal Occupation(s) During Past 5 Dollar Aggregate
Dollar
Range of
Shares
Beneficially
Owned in
Range of any of the
Position(s) Held Years / Other Trusteeships/Directorships Shares Oppenheimer/Centennial
with the Trust, Held by Trustee / Number of Portfolios Beneficially Funds
Length of Service, in Fund Complex Currently Overseen by Owned in Overseen
Age Trustee the Trust by Trustee
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
As of December 31, 2004
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

William L. Chairman of the following private None Over
Armstrong, mortgage banking companies: Cherry Creek $100,000
Chairman of the Mortgage Company (since 1991),
Board since 2003 Centennial State Mortgage Company (since
and Trustee since 1994), and The El Paso Mortgage Company
2000 (since 1993); Chairman of the following
Age: 68 private companies: Ambassador Media
Corporation (since 1984) and Broadway
Ventures (since 1984); Director of the
following: Helmerich & Payne, Inc. (oil
and gas drilling/production company)
(since 1992), Campus Crusade for Christ
(since 1991) and The Lynde and Harry
Bradley Foundation, Inc. (non-profit
organization) (since 2002); former
Chairman of the following: Transland
Financial Services, Inc. (private
mortgage banking company) (1997-2003),
Great Frontier Insurance (insurance
agency) (1995-2000), Frontier Real
Estate, Inc. (residential real estate
brokerage) (1994-2000) and Frontier
Title (title insurance agency)
(1995-2000); former Director of the
following: UNUMProvident (insurance
company) (1991-2004), Storage Technology
Corporation (computer equipment company)
(1991-2003) and International Family
Entertainment (television channel)
(1992-1997); U.S. Senator (January
1979-January 1991). Oversees 38
portfolios in the OppenheimerFunds
complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Robert G. Avis, Director and President of A.G. Edwards None Over
Trustee since 1990 Capital, Inc. (General Partner of $100,000
Age: 74 private equity funds) (until February
2001); Chairman, President and Chief
Executive Officer of A.G. Edwards
Capital, Inc. (until March 2000);
Director of A.G. Edwards & Sons, Inc.
(brokerage company) (until 2000) and
A.G. Edwards Trust Company (investment
adviser) (until 2000); Vice Chairman and
Director of A.G. Edwards, Inc. (until
March 1999); Vice Chairman of A.G.
Edwards & Sons, Inc. (until March 1999);
Chairman of A.G. Edwards Trust Company
(until March 1999) and A.G.E. Asset
Management (investment adviser) (until
March 1999). Oversees 38 portfolios in
the OppenheimerFunds complex.
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
George C. Bowen, None Over
Trustee since 1998 Assistant Secretary and Director of the $100,000

Age: 69 Manager (December 1991-April 1999);
President, Treasurer and Director of
Centennial Capital Corporation (June
1989-April 1999); Chief Executive
Officer and Director of MultiSource
Services, Inc. (March 1996-April 1999);
Mr. Bowen held several positions with
OppenheimerFunds, Inc. and with
subsidiary or affiliated companies of
OppenheimerFunds, Inc. (September
1987-April 1999). Oversees 38 portfolios
in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Edward L. Member of The Life Guard of Mount Vernon None Over
Cameron, Trustee (George Washington historical site) $100,000
since 2000 (since June 2000); Director of Genetic
Age: 67 ID, Inc. (biotech company) (March

2001-May 2002); Partner at
PricewaterhouseCoopers LLP (accounting
firm) (July 1974-June 1999); Chairman of
Price Waterhouse LLP Global Investment
Management Industry Services Group (July
1994-June 1998). Oversees 38 portfolios
in the OppenheimerFunds complex.
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Jon S. Fossel, Director of UNUMProvident (insurance None Over
Trustee since 1990 company) (since June 2002); Director of $100,000
Age: 63 Northwestern Energy Corp. (public
utility corporation) (since November
2004); Director of P.R. Pharmaceuticals
(October 1999-October 2003); Director of
Rocky Mountain Elk Foundation
(non-profit organization) (February
1998-February 2003); Chairman and
Director (until October 1996) and
President and Chief Executive Officer
(until October 1995) of
OppenheimerFunds, Inc.; President, Chief
Executive Officer and Director of the
following: Oppenheimer Acquisition Corp.
("OAC") (parent holding company of
OppenheimerFunds, Inc.), Shareholders
Services, Inc. and Shareholder Financial
Services, Inc. (until October 1995).
Oversees 38 portfolios in the
OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Sam Freedman, Director of Colorado Uplift (charitable None Over
Trustee since 1996 organization) (since September 1984). $100,000
Age: 64 Mr. Freedman held several positions with
OppenheimerFunds, Inc. and with
subsidiary or affiliated companies of
OppenheimerFunds, Inc. (until October
1994). Oversees 38 portfolios in the
OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Beverly L. Trustee of Monterey Institute for None Over
Hamilton, Trustee International Studies (educational $100,000
since 2002 organization) (since February 2000);

Age: 58 Director of The California Endowment
(philanthropic organization) (since
April 2002); Director of Community
Hospital of Monterey Peninsula (since
February 2002); Director of American
Funds' Emerging Markets Growth Fund,
Inc. (mutual fund) (since October 1991);
President of ARCO Investment Management
Company (February 1991-April 2000);
Member of the investment committees of
The Rockefeller Foundation and The
University of Michigan; Advisor at
Credit Suisse First Boston's Sprout
venture capital unit (venture capital
fund) (1994-January 2005); Trustee of
MassMutual Institutional Funds
(investment company) (1996-June 2004);
Trustee of MML Series Investment Fund
(investment company) (April 1989-June
2004); Member of the investment
committee of Hartford Hospital
(2000-2003); and Advisor to Unilever
(Holland) pension fund (2000-2003).
Oversees 38 portfolios in the
OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Robert J. Malone, Director of Jones International None Over
Trustee since 2002 University (educational organization) $100,000
Age: 61 (since August 2005); Chairman, Chief

Executive Officer and Director of Steele
Street State Bank (commercial banking)
(since August 2003); Director of
Colorado UpLIFT (charitable
organization) (since 1986); Trustee of
the Gallagher Family Foundation
(non-profit organization) (since 2000);
Former Chairman of U.S. Bank-Colorado
(subsidiary of U.S. Bancorp and formerly
Colorado National Bank) (July 1996-April
1999); Director of Commercial Assets,
Inc. (real estate investment trust)
(1993-2000); Director of Jones
Knowledge, Inc. (2001-July 2004); and
Director of U.S. Exploration, Inc. (oil
and gas exploration) (1997-February
2004). Oversees 38 portfolios in the
OppenheimerFunds complex.
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

F. William Trustee of MassMutual Select Funds None Over
Marshall, Jr., (formerly MassMutual Institutional $100,000
Trustee since 2002 Funds) (investment company) (since 1996)
Age: 63 and MML Series Investment Fund

(investment company) (since 1996), the
Springfield Library and Museum
Association (museums) (since 1995) and
the Community Music School of
Springfield (music school) (since 1996);
Chairman and Trustee (since 2003) and
Chairman of the Investment Committee
(since 1994) of the Worcester Polytech
Institute (private university);
President and Treasurer of the SIS Funds
(private charitable fund) (since January
1999); Chairman of SIS & Family Bank,
F.S.B. (formerly SIS Bank) (commercial
bank) (January 1999-July 1999); Member
of the Investment Committee of the
Community Foundation of Western
Massachusetts (1998-2003); and Executive
Vice President of Peoples Heritage
Financial Group, Inc. (commercial bank)
(January 1999-July 1999). Oversees 40
portfolios in the OppenheimerFunds
complex.*
- -------------------------------------------------------------------------------------

* Includes two open-end investment companies: MassMutual Select Funds and
MML Series Investment Fund. In accordance with the instructions for Form
N-1A, for purposes of this section only, MassMutual Select Funds and MML
Series Investment Fund are included in the "Fund Complex." The Manager
does not consider MassMutual Select Funds and MML Series Investment Fund
to be part of the OppenheimerFunds' "Fund Complex" as that term may be
otherwise interpreted.

The address of Mr. Grabish in the chart below is 6803 S. Tucson Way,
Centennial, CO 80112-3924. Mr. Grabish serves for an indefinite term, until
his resignation, retirement, death or removal.
Interested Trustee

- ---------------------------------------------------------------------------------
Name, Principal Occupation(s) During Past 5 Dollar Aggregate
Dollar
Range of
lyShares
Beneficially
Position(s) Owned in
Held with the Range of any of the
Trust, Shares Oppenheimer/Centennial
Length of Years / Other Trusteeships/Directorships Beneficial Funds
Service, Held by Trustee / Number of Portfolios in Owned in Overseen
Age Fund Complex Currently Overseen by Trustee the Trust by Trustee
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
As of December 31,
2004
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------

Richard F. Senior Vice President and Assistant Over Over
Grabish, Director of Sales and Marketing (since $100,000 $100,000
Trustee since March 1997), Director (since March 1987)
2001 and Manager of Private Client Services
Age: 57 (since June 1985) of A.G. Edwards & Sons,

Inc. (broker/dealer and investment firm);
Chairman and Chief Executive Officer of
A.G. Edwards Trust Company (since March
2001); President and Vice Chairman of
A.G. Edwards Trust Company (investment
adviser) (April 1987-March 2001).
Oversees 5 portfolios in the
OppenheimerFunds complex.
- ---------------------------------------------------------------------------------

The address of Mr. Murphy in the chart below is Two World Financial
Center, 225 Liberty Street 11th Floor, New York, NY 10281-1008. Mr. Murphy
serves as a Trustee for an indefinite term and as an officer for an annual
term, or until his resignation, retirement, death or removal.

- -------------------------------------------------------------------------------------
Interested Trustee and Officer
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Name, Principal Occupation(s) During Past 5 Dollar Aggregate
Dollar
Range Of
Shares
Years; Range of Beneficially
Position(s) Held Other Trusteeships/Directorships Held by Shares Owned in
with Trust, Trustee; BeneficiallAny of the
Length of Service, Number of Portfolios in Fund Complex Owned in Oppenheimer
Age Currently Overseen by Trustee the Trust Funds
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
As of December 31,
2004
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
John V. Murphy, Chairman, Chief Executive Officer and None Over
President Director (since June 2001) and President $100,000
Since 2001and (since September 2000) of
Trustee since 2003 OppenheimerFunds, Inc.; President and
Age: 56 Director or Trustee of other Oppenheimer
funds; President and Director of OAC and
of Oppenheimer Partnership Holdings, Inc.
(holding company subsidiary of
OppenheimerFunds, Inc.) (since July
2001); Director of OppenheimerFunds
Distributor, Inc. (subsidiary of
OppenheimerFunds, Inc.) (since November
2001); Chairman and Director of
Shareholder Services, Inc. and of
Shareholder Financial Services, Inc.
(transfer agent subsidiaries of
OppenheimerFunds, Inc.) (since July
2001); President and Director of
OppenheimerFunds Legacy Program
(charitable trust program established by
OppenheimerFunds, Inc.) (since July
2001); Director of the following
investment advisory subsidiaries of
OppenheimerFunds, Inc.: the Manager, OFI
Institutional Asset Management, Inc.,
Trinity Investment Management Corporation
and Tremont Capital Management, Inc.
(since November 2001), HarbourView Asset
Management Corporation and OFI Private
Investments, Inc. (since July 2001);
President (since November 2001) and
Director (since July 2001) of Oppenheimer
Real Asset Management, Inc.; Executive
Vice President of Massachusetts Mutual
Life Insurance Company (OAC's parent
company) (since February 1997); Director
of DLB Acquisition Corporation (holding
company parent of Babson Capital
Management LLC) (since June 1995); Member
of the Investment Company Institute's
Board of Governors (since October 3,
2003); Chief Operating Officer of
OppenheimerFunds, Inc. (September
2000-June 2001); President and Trustee of
MML Series Investment Fund and MassMutual
Select Funds (open-end investment
companies) (November 1999-November 2001);
Director of C.M. Life Insurance Company
(September 1999-August 2000); President,
Chief Executive Officer and Director of
MML Bay State Life Insurance Company
(September 1999-August 2000); Director of
Emerald Isle Bancorp and Hibernia Savings
Bank (wholly-owned subsidiary of Emerald
Isle Bancorp) (June 1989-June 1998).
Oversees 77 portfolios as a Trustee or
Director and 10 additional portfolios as
an officer in the OppenheimerFunds
complex.
- -------------------------------------------------------------------------------------

The address of the officers in the chart below are as follows: for
Messrs. Gillespie and Zack and Ms. Bloomberg, Two World Financial Center, 225
Liberty Street - 11th Floor, New York, NY 10281-1008, for Messrs. Petersen,
Vandehey, Vottiero, Wixted and Ms. Ives, 6803 S. Tucson Way, Centennial, CO
80112-3924. For Mr. Bonnell, 6803 S. Tucson Way, Centennial, CO 80112-3924.
Each officer serves for an indefinite term or until his or her resignation,
retirement, death or removal.

- -------------------------------------------------------------------------------------
Officers of the Trust
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Name, Principal Occupation(s) During Past 5 Years
Position(s) Held with the Trust,
Length of Time Served,
Age
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

John C. Bonnell, Vice President (since May 2004) of
Vice President and Portfolio OppenheimerFunds, Inc.; a Chartered Financial
Manager since 2004 Analyst; an officer of 3 portfolios in the
Age: 40 OppenheimerFunds complex; formerly a portfolio

manager at Strong Financial Corp. (May 1999- May
2004).
- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Mark S. Vandehey, Senior Vice President and Chief Compliance Officer
Vice President and Chief of OppenheimerFunds, Inc. (since March 2004); Vice
Compliance Officer since 2004 President of the Manager, OppenheimerFunds
Age: 55 Distributor, Inc., and Shareholder Services, Inc.
(since June 1983); Vice President and Director of
Internal Audit of OppenheimerFunds, Inc.
(1997-February 2004). An officer of 87 portfolios
in the Oppenheimer funds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Brian W. Wixted, Senior Vice President and Treasurer of
Treasurer since April 1999
Age: 46 OppenheimerFunds, Inc. (since March 1999);
Treasurer of the following: Shareholder Services,
Inc., HarbourView Asset Management Corporation,
Shareholder Financial Services, Inc., Oppenheimer
Real Asset Management Corporation, and Oppenheimer
Partnership Holdings, Inc. (since March 1999), OFI
Private Investments, Inc. (since March 2000),
OppenheimerFunds International Ltd. and
OppenheimerFunds plc (since May 2000), OFI
Institutional Asset Management, Inc. (since
November 2000), and OppenheimerFunds Legacy
Program (since June 2003); Treasurer and Chief
Financial Officer of OFI Trust Company (trust
company subsidiary of OppenheimerFunds, Inc.)
(since May 2000); Assistant Treasurer of OAC
(since March 1999); and Assistant Treasurer of the
Manager and Distributor (March 1999-October 2003)
and OppenheimerFunds Legacy Program (April
2000-June 2003); Principal and Chief Operating
Officer of Bankers Trust Company-Mutual Fund
Services Division (March 1995-March 1999). An
officer of 87 portfolios in the OppenheimerFunds
complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------

Brian Petersen, Assistant Vice President of OppenheimerFunds, Inc.
Assistant Treasurer since 2004 (since August 2002); Manager/Financial Product
Age: 35 Accounting of OppenheimerFunds, Inc. (November
1998-July 2002). An officer of 87 portfolios in
the OppenheimerFunds complex.

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- -------------------------------------------------------------------------------------
Philip Vottiero, Vice President of OppenheimerFunds, Inc. (since
Assistant Treasurer since 2002 July 1999); Chief Financial Officer of Sovlink
Age: 42 Corporation (April 1996-June 1999). An officer of

87 portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Robert G. Zack, Executive Vice President (since January 2004) and
Vice President & Secretary
since 2001 General Counsel (since March 2002) of
Age: 57 OppenheimerFunds, Inc.; General Counsel of the

Manager and Distributor (since December 2001);
General Counsel and Director of OppenheimerFunds
Distributor, Inc. (since December 2001); Senior
Vice President, General Counsel and Director of
the Transfer Agent, Shareholder Financial
Services, Inc., OFI Private Investments, Inc. and
OFI Trust Company (since November 2001); Senior
Vice President and General Counsel of HarbourView
Asset Management Corporation (since December
2001); Secretary and General Counsel of OAC (since
November 2001); Assistant Secretary (since
September 1997) and Director (since November 2001)
of OppenheimerFunds International Ltd. and
OppenheimerFunds plc; Vice President and Director
of Oppenheimer Partnership Holdings, Inc. (since
December 2002); Director of Oppenheimer Real Asset
Management, Inc. (since November 2001); Vice
President of OppenheimerFunds Legacy Program
(since June 2003); Senior Vice President and
General Counsel of OFI Institutional Asset
Management, Inc. (since November 2001); Director
of OppenheimerFunds (Asia) Limited (since December
2003); Senior Vice President (May 1985-December
2003), Acting General Counsel (November
2001-February 2002) and Associate General Counsel
(May 1981-October 2001) of OppenheimerFunds, Inc.;
Assistant Secretary of the following: the Transfer
Agent (May 1985-November 2001), Shareholder
Financial Services, Inc. (November 1989-November
2001), and OppenheimerFunds International Ltd.
(September 1997-November 2001). An officer of 87
portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Kathleen T. Ives,
Assistant Secretary Vice President (since June 1998) and Senior
since 2001 Counsel and Assistant Secretary (since October
Age: 39 2003) of OppenheimerFunds, Inc.; Vice President

(since 1999) and Assistant Secretary (since
October 2003) of the Distributor; Assistant
Secretary of the Manager (since October 2003);
Vice President and Assistant Secretary of
Shareholder Services, Inc. (since 1999); Assistant
Secretary of OppenheimerFunds Legacy Program and
Shareholder Financial Services, Inc. (since
December 2001); Assistant Counsel of the Manager
(August 1994-October 2003). An officer of 87
portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Lisa I. Bloomberg,
Assistant Secretary since 2004 Vice President and Associate Counsel of
Age: 37 OppenheimerFunds, Inc. (since May 2004); First

Vice President (April 2001-April 2004), Associate
General Counsel (December 2000-April 2004),
Corporate Vice President (May 1999-April 2001) and
Assistant General Counsel (May 1999-December 2000)
of UBS Financial Services Inc. (formerly,
PaineWebber Incorporated). An officer of 87
portfolios in the OppenheimerFunds complex.

- -------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------
Phillip S. Gillespie,
Assistant Secretary since 2004 Senior Vice President and Deputy General Counsel
Age: 41 of OppenheimerFunds, Inc. (since September 2004);

First Vice President (2000-September 2004),
Director (2000-September 2004) and Vice President
(1998-2000) of Merrill Lynch Investment
Management. An officer of 87 portfolios in the
OppenheimerFunds complex.

- -------------------------------------------------------------------------------------

Remuneration of Trustees. The Trustees of the Trust who are affiliated with
the Manager receive no salary or fee from the Trust. The Independent
Trustees received the compensation shown below from the Trust for serving as
a Trustee and member of a committee (if applicable), with respect to the
Trust's fiscal year ended June 30, 2005. The total compensation, including
accrued retirement benefits, from the Trust and fund complex represents
compensation received for serving as a Trustee and member of a committee (if
applicable) of the boards of the Trust and other funds in the
OppenheimerFunds complex during the calendar year ended December 31, 2004.

- ------------------------------------------------------------------------------

Trustee Name and Other Aggregate Total Compensation
Position(s) (as applicable) Compensation From the Trust and
from Trust(1) Fund Complex(2)

- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
William L. Armstrong $1,691 $178,000
Chairman of the Board and
Governance Committee Member
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Robert G. Avis $1,126 $118,500
Review Committee Member
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------

George C. Bowen $1,126 $118,500

Audit Committee Member
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Edward L. Cameron $1,293 $136,000
Audit Committee Chairman
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Jon S. Fossel $1,293 $136,000
Review Committee Chairman
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Sam Freedman $1,126 $118,500
Review Committee Member
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------

Richard F. Grabish(3) $1,123 $11,938

Review Committee Member
- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Beverly Hamilton

Review Committee Member and $1,132(4) $152,355(5)
Governance Committee Member

- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
Robert J. Malone

Governance Committee Chairman $1,272(6) $121,726
and Audit Committee Member

- ------------------------------------------------------------------------------
- ------------------------------------------------------------------------------
F. William Marshall, Jr.

Audit Committee Member and $1,126 $167,500(7)
Governance Committee Member

- ------------------------------------------------------------------------------

1. "Aggregate Compensation from the Trust" includes fees and deferred
compensation, if any.
1. In accordance with SEC regulations, for purposes of this section only,
"Fund Complex" includes the Oppenheimer funds, the Mass Mutual Select
Funds and the MML Series Investment Fund, the investment adviser for which
is the indirect parent company of OppenheimerFunds, Inc. also serves as
the Sub-Advisor to the following: MassMutual Premier International Equity
Fund, MassMutual Premier Main Street Fund, MassMutual Premier Strategic
Income Fund, MassMutual Premier Capital Appreciation Fund, and MassMutual
Premier Global Fund. OppenheimerFunds, Inc. does not consider MassMutual
Institutional Funds, MassMutual Select Funds and MML Series Investment
Fund to be part of the OppenheimerFunds' "Fund Complex" as that term may
be otherwise interpreted
1. Mr. Grabish serves as Trustee for only the following funds: Centennial
California Tax Exempt Trust, Centennial Government Trust, Centennial Money
Market Trust, Centennial New York Tax Exempt Trust and Centennial Tax
Exempt Trust3. .
4. Includes $1,132 deferred by Ms. Hamilton under the "Deferred
Compensation Plan" described below.
Includes $36,654 deferred by Ms. Hamilton under a deferred compensation plan
for serving as a Trustee for MassMutual Institutional Funds and MML Series
Investment Fund (until June 30, 2004).
6. Includes $1,272 deferred by Mr. Malone under the "Deferred Compensation
Plan" described below.
1. Includes $49,000 compensation paid to Mr. Marshall for serving as a
Trustee for MassMutual Select Funds and MML Series Investment Fund.

|X| Deferred Compensation Plan for Trustees. The Board of Trustees has
adopted a Deferred Compensation Plan for Independent Trustees that enables
them to elect to defer receipt of all or a portion of the annual fees they
are entitled to receive from the Trust. Under the plan, the compensation
deferred by a Trustee is periodically adjusted as though an equivalent amount
had been invested in shares of one or more Oppenheimer funds selected by the
Trustees. The amount paid to the Trustees under the plan will be determined
based upon the amount of compensation deferred and the performance of the
selected funds.

Deferral of Trustees' fees under this plan will not materially affect
the Trust's assets, liabilities or net income per share. The plan will not
obligate the Trust to retain the services of any Trustees or to pay any
particular level of compensation to any Trustees. Pursuant to an Order
issued by the SEC, the Trust may invest in the funds selected by the Trustee
under the plan without shareholder approval for the limited purpose of
determining the value of the Trustees' deferred compensation account.

|X| Major Shareholders. As of September 30, 2005 the
only persons or entities who owned of record or were known by the Trust to
own beneficially 5% or more of any class of the Trust's outstanding shares
were:

A.G. Edwards & Sons, Inc., 1 North Jefferson Avenue, St. Louis, Missouri
63103, which owned 1,616,353,669.610 shares of the Trust which was 99.03% of
the outstanding shares of the Trust on that date, for accounts of its
customers none of whom individually owned more than 5% of the outstanding
shares. A.G. Edwards, Inc. is a minority owner of Oppenheimer Acquisition
Corporation, the parent company of the Manager, Distributor, and Transfer
Agent.

The Manager. The Manager, Centennial Asset Management Corporation, is
wholly-owned by OppenheimerFunds, Inc., which is a wholly-owned subsidiary of
Oppenheimer Acquisition Corp., a holding company controlled by Massachusetts
Mutual Life Insurance Company, a global, diversified insurance and financial
services organization.

The portfolio managers of the Trust are principally responsible for the
day-to-day management of the Trust's investment portfolio. Other members of
the Manager's fixed-income portfolio department, particularly security
analysts, traders and other portfolio managers, have broad experience with
fixed-income securities. They provide the Trust's portfolio managers with
research and support in managing the Trust's investments.

|X| Code of Ethics. The Manager and the Distributor have a Code of
Ethics. It is designed to detect and prevent improper personal trading by
certain employees, including portfolio managers that would compete with or
take advantage of the Trust's portfolio transactions. Covered persons
include persons with knowledge of the investments and investment intentions
of the Trust and other funds advised by the Manager. The Code of Ethics does
permit personnel subject to the Code to invest in securities, including
securities that may be purchased or held by the Trust, subject to a number of
restrictions and controls. Compliance with the Code of Ethics is carefully
monitored and enforced by the Manager. The Trust does not have a Code of
Ethics since it is a money market fund.

|X| The Investment Advisory Agreement. The Manager
provides investment advisory and management services to the Trust under an
investment advisory agreement between the Manager and the Trust. The Manager
selects securities for the Trust's portfolio and handles its day-to-day
business. The agreement requires the Manager, at its expense, to provide the
Trust with adequate office space, facilities and equipment. It also requires
the Manager to provide and supervise the activities of all administrative and
clerical personnel required to provide effective administration for the
Trust. Those responsibilities include the compilation and maintenance of
records with respect to its operations, the preparation and filing of
specified reports, and composition of proxy materials and registration
statements for continuous public sale of shares of the Trust.

Expenses not expressly assumed by the Manager under the investment
advisory agreement are paid by the Trust. The investment advisory agreement
lists examples of expenses paid by the Trust. The major categories relate to
interest, taxes, fees to unaffiliated Trustees, legal and audit expenses,
custodian and transfer agent expenses, share issuance costs, certain
printing and registration costs and non-recurring expenses, including
litigation costs. The management fees paid by the Trust to the Manager are
calculated at the rates described in the Prospectus. The management fees paid
by the Trust to the Manager during its last three fiscal years were:

- ---------------------------------------------------------------------------------
Fiscal Year Management Fee Paid to Centennial Asset Management Corporation
ending 6/30
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
2003 $7,900,919
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
2004 $7,801,969
- ---------------------------------------------------------------------------------
- ---------------------------------------------------------------------------------
2005 $7,590,892
- ---------------------------------------------------------------------------------

Under its agreement with the Trust, when the value of the Trust's net
assets is less than $1.5 billion, the annual fee payable to the Manager is
reduced by $100,000 based on the average net assets computed daily and paid
monthly at the annual rates, but in no event shall the annual fee be less
than $0. This contractual provision did not result in a reduction of the fee
which would otherwise have been payable to the Manager during the fiscal
years ended 2003, 2004 or 2005.

In addition, under its agreement with the Trust, the Manager has agreed
to assume that Trust's expenses to the extent that the total expenses (as
described above) of the Trust exceed the most stringent limits prescribed by
any state in which the Trust's shares are offered for sale. The payment of
the management fee at the end of any month will be reduced so that at no time
will there be any accrued but unpaid liabilities under any of these expense
assumptions. As a result of changes in federal securities laws which have
effectively pre-empted state expense limitations, the contractual commitment
relating to such reimbursements is no longer relevant.

The agreement provides that the Manager assumes no responsibility under
the agreement other than that which is imposed by law, and shall not be
responsible for any action of the Board of Trustees of the Trust in following
or declining to follow any advice or recommendations of the Manager. The
agreement provides that the Manager shall not be liable for any error of
judgment or mistake of law, or for any loss suffered by the Trust in
connection with matters to which the agreement relates, except a loss
resulting by reason of the Manager's willful misfeasance, bad faith or gross
negligence in the performance of its duties, or its reckless disregard of its
obligations and duties under the agreement.

Portfolio Manager. The Trust's portfolio is managed by John C. Bonnell
(The "Portfolio Manager"). He is the person who is responsible for the
day-to-day management of the Trust's investments.

Other Accounts Managed. In addition to managing the
Trust's investment portfolio, the Portfolio Manager also manages other
investment portfolios and other accounts on behalf of the Manager or
its affiliates. The following table provides information regarding the
other portfolios and accounts managed by the Portfolio Manager as of
June 30, 2005. No account has a performance-based advisory fee:

-------------------------------------------------------------

Other
Registered Pooled
Investment InvestmentOther
Companies Vehicles Accounts

------------------------------------------------------------------------------
----------------------------------------------------------------------

3 None 1
Accounts Managed

----------------------------------------------------------------------
----------------------------------------------------------------------

$1,759.50* $0 $0.91910*
Total Assets Managed

*In millions

As indicated above, the Portfolio Manager also manages other
trusts and accounts. Potentially, at times, those responsibilities
could conflict with the interests of the Trust. That may occur whether
the investment strategies of the other trust or account are the same
as, or different from, the Trust's investment objectives and
strategies. For example, the Portfolio Manager may need to allocate
investment opportunities between the Trust and another fund or account
having similar objectives or strategies, or he may need to execute
transactions for another trust or account that could have a negative
impact on the value of securities held by the Trust. Not all trusts
and accounts advised by the Manager have the same management fee. If
the management fee structure of another fund or account is more
advantageous to the Manager than the fee structure of the Trust, the
Manager could have an incentive to favor the other trust or account.
However, the Manager's compliance procedures and Code of Ethics
recognize the Manager's fiduciary obligations to treat all of its
clients, including the Trust, fairly and equitably, and are designed to
preclude the Portfolio Manager from favoring one client over another.
It is possible, of course, that those compliance procedures and the
Code of Ethics may not always be adequate to do so. At different
times, the Trust's Portfolio Manager may manage other funds or accounts
with investment objectives and strategies that are similar to those of
the Trust, or may manage funds or accounts with investment objectives
and strategies that are different from those of the Trust.

Compensation of the Portfolio Manager. The Trust's Portfolio Manager
is employed and compensated by the Manager, not the Trust. Under the
Manager's compensation program for its portfolio managers and portfolio
analysts, their compensation is based primarily on the investment
performance results of the trusts and accounts they manage, rather than
on the financial success of the Manager. This is intended to align the
portfolio managers and analysts' interests with the success of the
trusts and accounts and their shareholders. The Manager's compensation
structure is designed to attract and retain highly qualified investment
management professionals and to reward individual and team
contributions toward creating shareholder value. As of June 30, 2005
the Portfolio Manager's compensation consisted of three elements: a
base salary, an annual discretionary bonus and eligibility to
participate in long-term awards of options and appreciation rights in
regard to the common stock of the Manager's holding company parent.
Senior portfolio managers may also be eligible to participate in the
Manager's deferred compensation plan.

To help the Manager attract and retain talent, the base pay component
of each portfolio manager is reviewed regularly to ensure that it
reflects the performance of the individual, is commensurate with the
requirements of the particular portfolio, reflects any specific
competence or specialty of the individual manager, and is competitive
with other comparable positions. The annual discretionary bonus is
determined by senior management of the Manager and is based on a number
of factors, including a trust's pre-tax performance for periods of up
to five years, measured against an appropriate Lipper benchmark
selected by management. The Lipper benchmark with respect to the Fund
is Lipper - Tax-Exempt Money Market Funds. Other factors considered
include management quality (such as style consistency, risk management,
sector coverage, team leadership and coaching) and organizational
development. The Portfolio Manager's compensation is not based on the
total value of the Trust's portfolio assets, although the Trust's
investment performance may increase those assets. The compensation
structure is also intended to be internally equitable and serve to
reduce potential conflicts of interest between the Trust and other
trusts and accounts managed by the Portfolio Manager. The compensation
structure of the other trust and accounts managed by the Portfolio
Manager is the same as the compensation structure of the Trust,
described above.

Ownership of the Trust's Shares. As of June 30, 2005 the
Portfolio Manager did not beneficially own any shares of the Trust.

|X| The
Distributor. Under its
General Distributor's
Agreement with the Trust,
Centennial Asset Management
Corporation acts as the
Trust's principal underwriter
and Distributor in the
continuous public offering of
the Trust's shares. The
Distributor is not obligated
to sell a specific number of
shares. The Distributor
bears the expenses normally
attributable to sales,
including advertising and the
cost of printing and mailing
prospectuses, other than
those furnished to existing
shareholders. For other
distribution expenses paid by
the Trust, see the section
entitled "Service Plan"
below. The Trust's
Sub-Distributor is
OppenheimerFunds Distributor,
Inc.

Portfolio Transactions.
Portfolio decisions are based
upon recommendations and
judgment of the Manager
subject to the overall
authority of the Board of
Trustees. Most purchases
made by the Trust are
principal transactions at net
prices, so the Trust incurs
little or no brokerage costs.
The Trust deals directly with
the selling or purchasing
principal or market maker
without incurring charges for
the services of a broker on
its behalf unless the Manager
determines that a better
price or execution may be
obtained by using the
services of a broker.
Purchases of portfolio
securities from underwriters
include a commission or
concession paid by the issuer
to the underwriter, and
purchases from dealers
include a spread between the
bid and asked prices.

The Trust seeks to
obtain prompt execution of
orders at the most favorable
net price. If broker/dealers
are used for portfolio
transactions, transactions
may be directed to
broker/dealers for their
execution and research
services. The research
services provided by a
particular broker may be
useful only to one or more of
the advisory accounts of the
Manager and its affiliates.
Investment research received
for the commissions of those
other accounts may be useful
both to the Trust and one or
more of such other accounts.
Investment research services
may be supplied to the
Manager by a third party at
the instance of a broker
through which trades are
placed. It may include
information and analyses on
particular companies and
industries as well as market
or economic trends and
portfolio strategy, receipt
of market quotations for
portfolio evaluations,
information systems, computer
hardware and similar products
and services. If a research
service also assists the
Manager in a non-research
capacity (such as bookkeeping
or other administrative
functions), then only the
percentage or component that
provides assistance to the
Manager in the investment
decision-making process may
be paid in commission
dollars.

The research services
provided by brokers broaden
the scope and supplement the
research activities of the
Manager. That research
provides additional views and
comparisons for
consideration, and helps the
Manager obtain market
information for the valuation
of securities held in the
Trust's portfolio or being
considered for purchase. No
portfolio transactions will
be handled by any securities
dealer affiliated with the
Manager.

The Trust may
experience high portfolio
turnover that may increase
the Trust's transaction
costs. However, since
brokerage commissions, if
any, are small, high turnover
does not have an appreciable
adverse effect upon the
income of the Trust.

Service Plan

The Trust has adopted a
Service Plan for the shares.
The plan has been approved by
a vote of the Board of
Trustees, including a
majority of the Independent
Trustees(1), cast in person
at a meeting called for the
purpose of voting on that
plan.

Under the Plan, the
Manager and the Distributor
may make payments to
affiliates. In their sole
discretion, they may also
from time to time make
substantial payments from
their own resources, which
include the profits the
Manager derives from the
advisory fees it receives
from the Trust, to compensate
brokers, dealers, financial
institutions and other
intermediaries for providing
distribution assistance
and/or administrative
services or that otherwise
promote sales of the Trust's
shares. These payments, some
of which may be referred to
as "revenue sharing," may
relate to the Trust's
inclusion on a financial
intermediary's preferred list
of funds offered to its
clients.

Financial intermediaries,
brokers and dealers may
receive other payments from
the Distributor or the
Manager from their own
resources in connection with
the promotion and/or sale of
shares of the Trust,
including payments to defray
expenses incurred in
connection with educational
seminars and meetings. The
Manager or Distributor may
share expenses incurred by
financial intermediaries in
conducting training and
educational meetings about
aspects of the Trust for
employees of the
intermediaries or for hosting
client seminars or meetings
at which the Trust is
discussed. In their sole
discretion, the Manager
and/or the Distributor may
increase or decrease the
amount of payments they make
from their own resources for
these purposes.

Unless the plan is
terminated as described
below, the plan continues in
effect from year to year but
only if the Trust's Board of
Trustees and its Independent
Trustees specifically vote
annually to approve its
continuance. Approval must
be by a vote cast in person
at a meeting called for the
purpose of voting on
continuing the plan. The
plan may be terminated at any
time by the vote of a
majority of the Independent
Trustees or by the vote of
the holders of a "majority"
(as defined in the Investment
Company Act) of the
outstanding shares of the
Trust.

The Board of Trustees
and the Independent Trustees
must approve all material
amendments to the plan. An
amendment to increase
materially the amount of
payments to be made under the
plan must be approved by
shareholders of the class
affected by the amendment.
The approval must be by a
"majority" (as defined in the
Investment Company Act) of
the shares.

While the plan is in
effect, the Treasurer of the
Trust shall provide separate
written reports on the plan
to the Board of Trustees at
least quarterly for its
review. The reports shall
detail the amount of all
payments made under the plan
and the purpose for which the
payments were made. Those
reports are subject to the
review and approval of the
Independent Trustees.

The plan states that
while it is in effect, the
selection and nomination of
those Trustees of the Trust
who are not "interested
persons" of the Trust is
committed to the discretion
of the Independent Trustees.
This does not prevent the
involvement of others in the
selection and nomination
process as long as the final
decision as to selection or
nomination is approved by a
majority of the Independent
Trustees.

Under the plan, no
payment will be made to any
recipient in any quarter in
which the aggregate net asset
value of all Trust shares
held by the recipient for
itself and its customers does
not exceed a minimum amount,
if any, that may be set from
time to time by a majority of
the Independent Trustees.
The Board of Trustees has set
no minimum amount of assets
to qualify for payments under
the plan.

|X| Service Plan
Fees. Under the service
plan, the Distributor
currently uses the fees it
receives from the Trust to
pay brokers, dealers and
other financial institutions
(they are referred to as
"recipients") for personal
services and account
maintenance services they
provide for their customers
who hold shares. The
services include, among
others, answering customer
inquiries about the Trust,
assisting in establishing and
maintaining accounts in the
Trust, making the Trust's
investment plans available
and providing other services
at the request of the Trust
or the Distributor. The
service plan permits
reimbursements to the
Distributor at a rate of up
to 0.20% of average annual
net assets of the shares.
The Distributor makes
payments to plan recipients
quarterly or monthly
depending on asset size at an
annual rate not to exceed
0.20% of the average annual
net assets consisting of
shares held in the accounts
of the recipients or their
customers.

For the fiscal year
ended June 30, 2005 payments
under the plan totaled
$3,580,047. The Distributor
retained $0 and the remaining
balance was paid out by the
Distributor to recipients,
which included $5,383 paid to
an affiliate of the
Distributor's parent company.
Any unreimbursed expenses the
Distributor incurs with
respect to the shares in any
fiscal quarter cannot be
recovered in subsequent
quarters. The Distributor
may not use payments received
under the plan to pay any of
its interest expenses,
carrying charges, or other
financial costs, or
allocation of overhead.

For the fiscal year ended
June 30, 2005, the Manager
paid, in the aggregate,
$5,380,577 in fees out of its
own resources for
distribution assistance to
A.G. Edwards & Sons, Inc.
Those distribution assistance
payments were paid based on
annual rates applied to the
average net asset value
during the calendar quarter
of qualified assets of the
Centennial Funds.

Performance of the Trust

Explanation of Performance
Terminology. The Trust uses
a variety of terms to
illustrate its performance.
These terms include "yield,"
"compounded effective yield,"
"tax-equivalent yield" and
"average annual total
return." An explanation of
how yields and total returns
are calculated is set forth
below. The charts below show
the Trust's performance as of
the Trust's most recent
fiscal year end. You can
obtain current performance
information by calling the
Trust's Transfer Agent at
1.800.525.9310.

The Trust's
illustrations of its
performance data in
advertisements must comply
with rules of the Securities
and Exchange Commission.
Those rules describe the
types of performance data
that may be used and how it
is to be calculated. If the
Trust shows total returns in
addition to its yields, the
returns must be for the 1-,
5- and 10-year periods ending
as of the most recent
calendar quarter prior to the
publication of the
advertisement (or its
submission for publication).

Use of standardized
performance calculations
enables an investor to
compare the Trust's
performance to the
performance of other funds
for the same periods.
However, a number of factors
should be considered before
using the Trust's performance
information as a basis for
comparisons with other
investments:

o Yields and total
returns measure the
performance of a
hypothetical account
in the Trust over
various periods and
do not show the
performance of each
shareholder's
account. Your
account's
performance will
vary from the model
performance data if
your dividends are
received in cash, or
you buy or sell
shares during the
period, or you
bought your shares
at a different time
than the shares used
in the model.
o An investment in the
Trust is not insured
by the FDIC or any
other government
agency.
o The Trust's yield is
not fixed or
guaranteed and will
fluctuate.
o Yields and total
returns for any
given past period
represent historical
performance
information and are
not, and should not
be considered, a
prediction of future
yields or returns.

|X| Yields. The Trust's
current yield is calculated
for a seven-day period of
time as follows. First, a
base period return is
calculated for the seven-day
period by determining the net
change in the value of a
hypothetical pre-existing
account having one share at
the beginning of the
seven-day period. The change
includes dividends declared
on the original share and
dividends declared on any
shares purchased with
dividends on that share, but
such dividends are adjusted
to exclude any realized or
unrealized capital gains or
losses affecting the
dividends declared. Next,
the base period return is
multiplied by 365/7 to obtain
the current yield to the
nearest hundredth of one
percent.

The compounded
effective yield for a
seven-day period is
calculated by
(1) adding 1 to the
base period return
(obtained as described
above),
(2) raising the sum to
a power equal to 365
divided by 7, and
(3) subtracting 1 from
the result.

The yield as calculated
above may vary for accounts
less than approximately $100
in value due to the effect of
rounding off each daily
dividend to the nearest full
cent. The calculation of
yield under either procedure
described above does not take
into consideration any
realized or unrealized gains
or losses on the Trust's
portfolio securities which
may affect dividends.
Therefore, the return on
dividends declared during a
period may not be the same on
an annualized basis as the
yield for that period.

|X| Tax-Equivalent Yield.
The Trust's "tax equivalent
yield" adjusts the Trust's
current yield, as calculated
above, by a stated federal
tax rate. The tax equivalent
yield is computed by dividing
the tax-exempt portion of the
Trust's current yield by one
minus a stated income tax
rate and adding the result to
the portion (if any) of the
Trust's current yield that is
not tax-exempt. The tax
equivalent yield may be
compounded as described above
to provide a compounded
effective tax equivalent
yield.

The Trust's tax
equivalent yield may be used
to compare the tax effects of
income derived from the Trust
with income from taxable
investments at the tax rates
stated. Your tax bracket is
determined by your federal
taxable income (the net
amount subject to federal
income tax after deductions
and exemptions). The tax
equivalent yield table
assumes that the investor is
taxed at the highest bracket,
regardless of whether a
switch to non-taxable
investments would cause a
lower bracket to apply and
that state income tax
payments are fully deductible
for income tax purposes. For
taxpayers with income above
certain levels, otherwise
allowable itemized deductions
are limited.

|X| Total Return
Information. There are
different types of "total
returns" to measure the
Trust's performance. Total
return is the change in value
of a hypothetical investment
in the Trust over a given
period, assuming that all
dividends and capital gains
distributions are reinvested
in additional shares and that
the investment is redeemed at
the end of the period. The
cumulative total return
measures the change in value
over the entire period (for
example, ten years). An
average annual total return
shows the average rate of
return for each year in a
period that would produce the
----------------------------------------------------------
cumulative total return over = Average Annual Total Return
the entire period. However,
average annual total returns
do not show actual
year-by-year performance.
The Trust uses standardized
calculations for its total
returns as prescribed by the
SEC. The methodology is
discussed below.

o Average Annual Total
Return. The "average annual
total return" of each class
is an average annual
compounded rate of return for
each year in a specified
number of years. It is the
rate of return based on the
change in value of a
hypothetical initial
investment of $1,000 ("P" in
the formula below) held for a
number of years ("n") to
achieve an Ending Redeemable
Value ("ERV" in the formula)
of that investment, according
to the following formula:

ERV l/n - 1
----------------------------------------------------------
P

- ------------------------------------------------------------------------------
[OBJECT OMITTED]
- ------------------------------------------------------------------------------

o Cumulative Total Return. The "cumulative total return" calculation
measures the change in value of a hypothetical investment of $1,000 over an
entire period of years. Its calculation uses some of the same factors as
average annual total return, but it does not average the rate of return on an
annual basis. Cumulative total return is determined as follows:

ERV - P = Total Return
- -----------
P

- -------------------------------------------------------------------------------
Tax-Equivalent Yield
Compounded (35.00% Combined State and Average Annual Total
Yield Effective Federal Tax Brackets) Returns
(7 days Yield (at 6/30/05)
ended (7 days
6/30/05) ended
6/30/05)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
Yield Compounded
(7 days Effective
ended Yield 1-Year 5 Years 10 Years
6/30/05) (7 days
ended
6/30/05)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
1.82% 1.84% 2.80% 2.83% 1.21% 1.33% 2.15%
- -------------------------------------------------------------------------------

|X| Other Performance Comparisons. Yield information may
be useful to investors in reviewing the Trust's performance. The Trust may
make comparisons between its yield and that of other investments, by citing
various indices such as The Bank Rate Monitor National Index (provided by
Bank Rate Monitor(TM)) which measures the average rate paid on bank money market
accounts, NOW accounts and certificates of deposits by the 100 largest banks
and thrifts in the top ten metro areas. When comparing the Trust's yield
with that of other investments, investors should understand that certain
other investment alternatives such as certificates of deposit, U.S.
government securities, money market instruments or bank accounts may provide
fixed yields and may be insured or guaranteed.

From time to time, the Trust may include in its advertisements and
sales literature performance information about the Trust cited in other
newspapers and periodicals, such as The New York Times, which may include
performance quotations from other sources.

From time to time the Trust may include in its advertisements and sales literature
the total return performance of a hypothetical investment account that
includes shares of the Trust and other Oppenheimer funds. The combined
account may be part of an illustration of an asset allocation model or
similar presentation. The account performance may combine total return
performance of the Trust and the total return performance of other
Oppenheimer funds included in the account. Additionally, from time to time,
the Trust's advertisements and sales literature may include, for illustrative
or comparative purposes, statistical data or other information about general
or specific market and economic conditions. That may include, for example,
o information about the performance of certain securities or commodities
markets or segments of those markets,
o information about the performance of the economies of particular
countries or regions,
o the earnings of companies included in segments of particular
industries, sectors, securities markets, countries or
regions,
o the availability of different types of securities or offerings of
securities,
o information relating to the gross national or gross domestic product of
the United States or other countries or regions,
o comparisons of various market sectors or indices to demonstrate
performance, risk, or other characteristics of the Trust.

A B O U T Y O U R A C C O U N T

How to Buy Shares

Determination of Net Asset Value Per Share. The net asset value per share of
the Trust is determined twice each day that the New York Stock Exchange (the
"NYSE") is open, at 12:00 Noon and at 4:00 p.m., on each day that the NYSE is
open, by dividing the value of the Trust's net assets by the total number of
shares outstanding. All references to time in this Statement of Additional
Information mean "Eastern time." The NYSE's most recent annual announcement
regarding holidays and days when the market may close early is available on
the NYSE's website at www.nyse.com.

The Trust's Board of Trustees has adopted the amortized cost method to
value the Trust's portfolio securities. Under the amortized cost method, a
security is valued initially at its cost and its valuation assumes a constant
amortization of any premium or accretion of any discount, regardless of the
impact of fluctuating interest rates on the market value of the security.
This method does not take into consideration any unrealized capital gains or
losses on securities. While this method provides certainty in valuing
securities, in certain periods the value of a security determined by
amortized cost may be higher or lower than the price the Trust would receive
if it sold the security.

The Trust's Board of Trustees has established procedures reasonably
designed to stabilize the Trust's net asset value at $1.00 per share. Those
procedures include a review of the valuations of the Trust's portfolio
holdings by the Board of Trustees, at intervals it deems appropriate, to
determine whether the Trust's net asset value calculated by using available
market quotations deviates from $1.00 per share based on amortized cost.

The Board of Trustees will examine the extent of any deviation between
the Trust's net asset value based upon available market quotations and
amortized cost. If the Trust's net asset value were to deviate from $1.00 by
more than 0.5%, Rule 2a-7 requires the Board of Trustees to consider what
action, if any, should be taken. If they find that the extent of the
deviation may cause a material dilution or other unfair effects on
shareholders, the Board of Trustees will take whatever steps it considers
appropriate to eliminate or reduce the dilution, including, among others,
withholding or reducing dividends, paying dividends from capital or capital
gains, selling portfolio instruments prior to maturity to realize capital
gains or losses or to shorten the average maturity of the portfolio, or
calculating net asset value per share by using available market quotations.

During periods of declining interest rates, the daily yield on shares
of the Trust may tend to be lower (and net investment income and dividends
higher) than those of a fund holding the identical investments as the Trust
but which used a method of portfolio valuation based on market prices or
estimates of market prices. During periods of rising interest rates, the
daily yield of the Trust would tend to be higher and its aggregate value
lower than that of an identical portfolio using market price valuation.

How to Sell Shares

The information below supplements the terms and conditions for redeeming
shares set forth in the Prospectus.

Checkwriting. When a check is presented to the Bank for clearance, the Bank
will ask the Trust to redeem a sufficient number of full and fractional
shares in the shareholder's account to cover the amount of the check. This
enables the shareholder to continue receiving dividends on those shares until
the check is presented to the Trust. Checks may not be presented for payment
at the offices of the Bank or the Trust's custodian. This limitation does
not affect the use of checks for the payment of bills or to obtain cash at
other banks. The Trust reserves the right to amend, suspend or discontinue
offering checkwriting privileges at any time. The Trust will provide you
notice whenever it is required to do so by applicable law.

In choosing to take advantage of the checkwriting privilege, by signing
the account application or by completing a checkwriting card, each individual
who signs:
(1) for individual accounts, represents that they are the registered
owner(s) of the shares of the Trust in that account;
(2) for accounts for corporations, partnerships, trusts and other entities,
represents that they are an officer, general partner, trustee or
other fiduciary or agent, as applicable, duly authorized to act on
behalf of the registered owner(s);
(3) authorizes the Trust, its Transfer Agent and any bank through which the
Trust's drafts (checks) are payable to pay all checks drawn on the
Trust account of such person(s) and to redeem a sufficient amount of
shares from that account to cover payment of each check;
(4) specifically acknowledges that if they choose to
permit checks to be honored if there is a single signature on checks
drawn against joint accounts, or accounts for corporations,
partnerships, trusts or other entities, the signature of any one
signatory on a check will be sufficient to authorize payment of that
check and redemption from the account, even if that account is
registered in the names of more than one person or more than one
authorized signature appears on the checkwriting card or the
application, as applicable;
(5) understands that the checkwriting privilege may be terminated or
amended at any time by the Trust and/or the Trust's bank; and
(6) acknowledges and agrees that neither the Trust nor its bank shall incur
any liability for that amendment or termination of checkwriting
privileges or for redeeming shares to pay checks reasonably believed
by them to be genuine, or for returning or not paying checks that
have not been accepted for any reason.

Sending Redemption Proceeds by Federal Funds Wire. The Federal Funds wire of
redemptions proceeds may be delayed if the Trust's custodian bank is not open
for business on a day when the Trust would normally authorize the wire to be
made, which is usually the Trust's next regular business day following the
redemption. In those circumstances, the wire will not be transmitted until
the next bank business day on which the Trust is open for business. No
distributions will be paid on the proceeds of redeemed shares awaiting
transfer by Federal Funds wire

How to Exchange Shares

As stated in the Prospectus, direct shareholders can exchange shares of the
Trust for Class A shares of any of the following eligible funds:
Oppenheimer AMT-Free Municipals Oppenheimer Limited Term Municipal Fund
Oppenheimer AMT-Free New York Municipals Oppenheimer Main Street Fund
Oppenheimer Balanced Fund Oppenheimer Main Street Opportunity Fund
Oppenheimer California Municipal Fund Oppenheimer Main Street Small Cap Fund
Oppenheimer Capital Appreciation Fund Oppenheimer MidCap Fund
Oppenheimer Capital Income Fund Oppenheimer New Jersey Municipal Fund
Oppenheimer Champion Income Fund Oppenheimer Pennsylvania Municipal Fund
Oppenheimer Convertible Securities Fund Oppenheimer Portfolio Series
Oppenheimer Core Bond Fund Oppenheimer Quest Balanced Fund
Oppenheimer Developing Markets Fund Oppenheimer Quest Capital Value Fund, Inc.
Oppenheimer Quest International Value
Oppenheimer Disciplined Allocation Fund Fund, Inc.
Oppenheimer Discovery Fund Oppenheimer Quest Opportunity Value
Oppenheimer Dividend Growth Fund Oppenheimer Quest Value Fund, Inc.
Oppenheimer Emerging Growth Fund Oppenheimer Real Asset Fund
Oppenheimer Emerging Technologies Fund Oppenheimer Real Estate Fund
Oppenheimer Enterprise Fund Oppenheimer Rochester National Municipals
Oppenheimer Equity Fund, Inc. Oppenheimer Select Value Fund
Oppenheimer Global Fund Oppenheimer Senior Floating Rate Fund
Oppenheimer Global Opportunities Fund Oppenheimer Small- & Mid- Cap Value Fund
Oppenheimer Gold & Special Minerals Fund Oppenheimer Strategic Income Fund
Oppenheimer Growth Fund Oppenheimer Total Return Bond Fund
Oppenheimer High Yield Fund Oppenheimer U.S. Government Trust
Oppenheimer International Bond Fund Oppenheimer Value Fund
Oppenheimer International Diversified
Fund Limited-Term New York Municipal Fund
Oppenheimer International Growth Fund Rochester Fund Municipals
Oppenheimer International Small Company
Fund
Oppenheimer International Large Cap Core
Fund
Oppenheimer International Value Fund
Oppenheimer Limited-Term Government Fund

And the following money market funds:

Centennial Money Market Trust
Oppenheimer Cash Reserves Centennial New York Tax Exempt Trust
Oppenheimer Money Market Fund, Inc. Centennial Tax Exempt Trust
Centennial California Tax Exempt Trust
Centennial Government Trust

Shares of the Trust purchased without a sales charge may be exchanged
for shares of an eligible fund offered with a sales charge upon payment of
the sales charge. Shares of the Trust acquired by reinvestment of dividends
or distributions from the Trust or any of the other eligible funds (other
than Oppenheimer Cash Reserves) or from any unit investment trust for which
reinvestment arrangements have been made with the Distributor may be
exchanged at net asset value for shares of any of the eligible funds.

|X| Limits on Multiple Exchange Orders. The Trust reserves the right to
reject telephone or written exchange requests submitted in bulk by anyone on
behalf of more than one account.

|X| Telephone Exchange Requests. When exchanging shares by telephone, a
direct shareholder must have an existing account in the fund to which the
exchange is to be made. Otherwise, the investor must obtain a prospectus of
that fund before the exchange request may be submitted. If all telephone
lines are busy (which might occur, for example, during periods of substantial
market fluctuations), shareholders might not be able to request exchanges by
telephone and would have to submit written exchange requests.

|X| Processing Exchange Requests. Shares to be exchanged are redeemed on
the regular business day the Transfer Agent receives an exchange request in
proper form (the "Redemption Date"). Normally, shares of the fund to be
acquired are purchased on the Redemption Date, but such purchases may be
delayed by either fund up to five business days if it determines that it
would be disadvantaged by an immediate transfer of the redemption proceeds.
The Trust reserves the right, in its discretion, to refuse any exchange
request that may disadvantage it. For example, if the receipt of multiple
exchange requests from a dealer might require the disposition of portfolio
securities at a time or at a price that might be disadvantageous to the
Trust, the Trust may refuse the request.

In connection with any exchange request, the number of shares exchanged
may be less than the number requested if the exchange or the number requested
would include shares subject to a restriction cited in the Prospectus or this
Statement of Additional Information or would include shares covered by a
share certificate that is not tendered with the request. In those cases,
only the shares available for exchange without restriction will be
exchanged.

The different eligible funds available for exchange have different
investment objectives, policies and risks. A shareholder should assure that
the fund selected is appropriate for his or her investment and should be
aware of the tax consequences of an exchange. For federal income tax
purposes, an exchange transaction is treated as a redemption of shares of one
fund and a purchase of shares of another. The Trust, the Distributor, the
Sub-Distributor, and the Transfer Agent are unable to provide investment, tax
or legal advice to a shareholder in connection with an exchange request or
any other investment transaction.

The Trust may amend, suspend or terminate the exchange privilege at any
time. Although, the Trust may impose these changes at any time, it will
provide you with notice of those changes whenever it is required to do so by
applicable law. It may be required to provide 60 days notice prior to
materially amending or terminating the exchange privilege. That 60-day
notice is not required in extraordinary circumstances.

Dividends and Taxes

Tax Status of the Trust's Dividends, Distributions and Redemptions of Shares.
The federal tax treatment of the Trust's distributions is briefly highlighted
in the Prospectus. The following is only a summary of certain additional tax
considerations generally affecting the Trust and its shareholders.

The tax discussion in the Prospectus and this Statement of Additional
Information is based on tax law in effect on the date of the Prospectus and
this Statement of Additional Information. Those laws and regulations may be
changed by legislative, judicial, or administrative action, possible with
retroactive effect. State and local tax treatment of exempt-interest
dividends and potential capital gain distributions from regulated investment
companies may differ from the treatment under the Internal Revenue Code
described below. Potential purchasers of shares of the Trust are urged to
consult their tax advisers with specific reference to their own tax
circumstances as well as the consequences of federal, state and local tax
rules affecting an investment in the Trust.

|X| Qualification as a Regulated Investment Company. The Trust has elected
to be taxed as a regulated investment company under Subchapter M of the
Internal Revenue Code of 1986, as amended. As a regulated investment
company, the Trust is not subject to federal income tax on the portion of its
net investment income (that is, taxable interest, dividends, and other
taxable ordinary income, net of expenses) and capital gain net income (that
is, the excess of net long-term capital gains over net short-term capital
losses) that it distributes to shareholders.

If the Trust qualifies as a "regulated investment company" under the
Internal Revenue Code, it will not be liable for federal income tax on
amounts it pays as dividends and other distributions. That qualification
enables the Trust to "pass through" its income and realized capital gains to
shareholders without having to pay tax on them. The Trust qualified as a
regulated investment company in its last fiscal year and intends to qualify
in future years, but reserves the right not to qualify. The Internal Revenue
Code contains a number of complex tests to determine whether the Trust
qualifies. The Trust might not meet those tests in a particular year. If it
does not qualify, the Trust will be treated for tax purposes as an ordinary
corporation and will receive no tax deduction for payments of dividends and
other distributions made to shareholders. In such an instance, all of the
Trust's dividends would be taxable to shareholders.

To qualify as a regulated investment company, the Trust must distribute
at least 90% of its investment company taxable income (in brief, net
investment income and the excess of net short-term capital gain over net
long-term capital loss) and at least 90% of its net tax-exempt income for the
taxable year. The Trust must also satisfy certain other requirements of the
Internal Revenue Code, some of which are described below. Distributions by
the Trust made during the taxable year or, under specified circumstances,
within twelve months after the close of the taxable year, will be considered
distributions of income and gains for the taxable year and will therefore
count toward satisfaction of the above-mentioned requirement.

To qualify as a regulated investment company, the Trust must derive at
least 90% of its gross income from dividends, interest, certain payments with
respect to securities loans, gains from the sale or other disposition of
stock or securities or foreign currencies (to the extent such currency gains
are directly related to the regulated investment company's principal business
of investing in stock or securities) and certain other income.

In addition to satisfying the requirements described above, the Trust
must satisfy an asset diversification test in order to qualify as a regulated
investment company. Under that test, at the close of each quarter of the
Trust's taxable year, at least 50% of the value of the Trust's assets must
consist of cash and cash items (including receivables), U.S. government
securities, securities of other regulated investment companies, and
securities of other issuers. As to each of those issuers, the Trust must not
have invested more than 5% of the value of the Trust's total assets in
securities of each such issuer and the Trust must not hold more than 10% of
the outstanding voting securities of each such issuer. No more than 25% of
the value of its total assets may be invested in the securities of any one
issuer (other than U.S. government securities and securities of other
regulated investment companies), or in two or more issuers which the Trust
controls and which are engaged in the same or similar trades or businesses.
For purposes of this test, obligations issued or guaranteed by certain
agencies or instrumentalities of the U.S. government are treated as U.S.
government securities.

|X| Excise Tax on Regulated Investment Companies. Under the Internal
Revenue Code, by December 31 each year, the Trust must distribute 98% of its
taxable investment income earned from January 1 through December 31 of that
year and 98% of its capital gains realized in the period from November 1 of
the prior year through October 31 of the current year. If it does not, the
Trust must pay an excise tax on the amounts not distributed. It is presently
anticipated that the Trust will meet those requirements. To meet this
requirement, in certain circumstances the Trust might be required to
liquidate portfolio investments to make sufficient distributions to avoid
excise tax liability. However, the Board of Trustees and the Manager might
determine in a particular year that it would be in the best interests of
shareholders for the Trust not to make such distributions at the required
levels and to pay the excise tax on the undistributed amounts. That would
reduce the amount of income or capital gains available for distribution to
shareholders.

|X| Taxation of Fund Distributions. The Trust intends to qualify under the
Internal Revenue Code during each fiscal year to pay "exempt-interest
dividends" to its shareholders. To satisfy this qualification, at the end of
each quarter of its taxable year, at least 50% of the value of the Trust's
total assets consists of obligations as defined in Section 103(a) of the
Internal Revenue Code, as amended. Exempt-interest dividends that are derived
from net investment income earned by the Trust on municipal securities will
be excludable from gross income of shareholders for federal income tax
purposes. To the extent the Trust fails to qualify to pay exempt-interest
dividends in any given form, such dividends would be included in the gross
income of shareholders for federal income tax purposes.

Net investment income includes the allocation of amounts of income from
the municipal securities in the Trust's portfolio that are free from federal
income taxes. This allocation will be made by the use of one designated
percentage applied uniformly to all income dividends paid during the Trust's
tax year. That designation will normally be made following the end of each
fiscal year as to income dividends paid in the prior year. The percentage of
income designated as tax-exempt may substantially differ from the percentage
of the Trust's income that was tax-exempt for a given period.

A portion of the exempt-interest dividends paid by the Trust may be an
item of tax preference for shareholders subject to the federal alternative
minimum tax. The amount of any dividends attributable to tax preference items
for purposes of the alternative minimum tax will be identified when tax
information is distributed by the Trust.

A shareholder receiving a dividend from income earned by the Trust from
one or more of the following sources must treat the dividend as ordinary
income in the computation of the shareholder's gross income, regardless of
whether the dividend is reinvested:
(1) certain taxable temporary investments (such as certificates of deposit,
repurchase agreements, commercial paper and obligations of the U.S.
government, its agencies and instrumentalities);
(2) income from securities loans;
(3) income or gains from options or futures,
(4) any net short-term capital gain; and
(5) any market discount amortization on tax-exempt bonds.

The Trust's dividends will not be eligible for the dividends-received
deduction for corporations. Shareholders receiving Social Security benefits
should be aware that exempt-interest dividends are a factor in determining
whether (and the extent to which) such benefits are subject to federal income
tax. Losses realized by shareholders on the redemption of Fund shares within
six months of purchase will be disallowed for federal income tax purposes to
the extent of exempt-interest dividends received on such shares.

The Trust may either retain or distribute to shareholders its net
capital gain for each taxable year. The Trust currently intends to
distribute any such amounts. If the net capital gain is distributed and
designated as a capital gain distribution, it will be taxable to shareholders
as a long-term capital gain and will be properly identified in reports sent
to shareholders in January of each year. Such treatment will apply no matter
how long the shareholder has held his or her shares or whether that gain was
recognized by the Trust before the shareholder acquired his or her shares.

If the Trust elects to retain its net capital gain, the Trust will be
subject to tax on it at the 35% corporate tax rate. If the Trust elects to
retain its net capital gain, the Trust will provide to shareholders of record
on the last day of its taxable year information regarding their pro rata
share of the gain and tax paid. As a result, each shareholder will be
required to report his or her pro rata share of such gain on their tax return
as long-term capital gain, will receive a refundable tax credit for his/her
pro rata share of tax paid by the Trust on the gain, and will increase the
tax basis for his/her shares by an amount equal to the deemed distribution
less the tax credit.

Distributions by the Trust will be treated in the manner described
above regardless of whether the distributions are paid in cash or reinvested
in additional shares of the Trust (or of another fund). Shareholders
receiving a distribution in the form of additional shares will be treated as
receiving a distribution in an amount equal to the fair market value of the
shares received, determined as of the reinvestment date.

The Trust will be required in certain cases to withhold 28% of ordinary
income dividends (not including "exempt-interest dividends"), capital gains
distributions (including short-term and long-term) and the proceeds of the
redemption of shares, paid to any shareholder (1) who has failed to provide a
correct taxpayer identification number or to properly certify that number
when required, (2) who is subject to backup withholding for failure to report
the receipt of interest or dividend income properly, or (3) who has failed to
certify to the Trust that the shareholder is not subject to backup
withholding or is an "exempt recipient" (such as a corporation). Any tax
withheld by the Trust is remitted by the Trust to the U.S. Treasury and all
income and any tax withheld is identified in reports mailed to shareholders
in January of each year with a copy sent to the IRS.

|X| Tax Effects of Redemptions of Shares. If a shareholder redeems all or a
portion of his/her shares, the shareholder will recognize a gain or loss on
the redeemed shares in an amount equal to the difference between the proceeds
of the redeemed shares and the shareholder's adjusted tax basis in the
shares. All or a portion of any loss recognized in that manner may be
disallowed if the shareholder purchases other shares of the Trust within 30
days before or after the redemption.

In general, any gain or loss arising from the redemption of shares of
the Trust will be considered capital gain or loss, if the shares were held as
a capital asset. It will be long-term capital gain or loss if the shares were
held for more than one year. However, any capital loss arising from the
redemption of shares held for six months or less will be treated as a
long-term capital loss to the extent of the amount of capital gain dividends
received on those shares. Special holding period rules under the Internal
Revenue Code apply in this case to determine the holding period of shares and
there are limits on the deductibility of capital losses in any year.

|X| Foreign Shareholders. Under U.S. tax law, taxation of a shareholder
who is a foreign person (including, but not limited to, a nonresident alien
individual, a foreign trust, a foreign estate, a foreign corporation, or a
foreign partnership) primarily depends on whether the foreign person's income
from the Trust is effectively connected with the conduct of a U.S. trade or
business. Typically, ordinary income dividends paid (not including
exempt-interest dividends paid by the Trust) from a mutual fund are not
considered "effectively connected" income.

Ordinary income dividends that are paid by the Trust (and are deemed
not "effectively connected income") to foreign persons will be subject to a
U.S. tax withheld by the Trust at a rate of 30%, provided the Trust obtains a
properly completed and signed Certificate of Foreign Status. The tax rate may
be reduced if the foreign person's country of residence has a tax treaty with
the U.S. allowing for a reduced tax rate on ordinary income dividends paid by
the Trust. Any tax withheld by the Trust is remitted by the Trust to the U.S.
Treasury and all income and any tax withheld is identified in reports mailed
to shareholders in March of each year with a copy sent to the IRS.

If the ordinary income dividends from the Trust are effectively
connected with the conduct of a U.S. trade or business, then the foreign
person may claim an exemption from the U.S. tax described above provided the
Trust obtains a properly completed and signed Certificate of Foreign Status.

If the foreign person fails to provide a certification of his/her
foreign status, the Trust will be required to withhold U.S. tax at a rate of
28% on ordinary income dividends (not including "exempt-interest dividends"),
capital gains distributions (including short-term and long-term) and the
proceeds of the redemption of shares, paid to any foreign person. Any tax
withheld (in this situation) by the Trust is remitted by the Trust to the
U.S. Treasury and is identified in reports mailed to shareholders in January
of each year with a copy sent to the IRS.

The tax consequences to foreign persons entitled to claim the benefits
of an applicable tax treaty may be different from those described herein.
Foreign shareholders are urged to consult their own tax advisors or the U.S.
Internal Revenue Service with respect to the particular tax consequences to
them of an investment in the Trust, including the applicability of the U.S.
withholding taxes described above.

Dividend Reinvestment in Another Trust. Direct shareholders of the Trust may
elect to reinvest all dividends and/or capital gains distributions in Class A
shares of any eligible fund listed above. To elect this option, the
shareholder must notify the Transfer Agent in writing and must have an
existing account in the fund selected for reinvestment. Otherwise, the
shareholder first must obtain a prospectus for that fund and an application
from the Distributor to establish an account. The investment will be made at
the close of business on the payable date of the dividend or distribution.

Additional Information About the Trust

The Distributor. The Trust's shares are sold through dealers, brokers and
other financial institutions that have a sales agreement with the
Sub-Distributor. The Distributor and the Sub-Distributor also distribute
shares of the other funds managed by the Manager or an affiliate.

The Transfer Agent. Shareholder Services, Inc., the Trust's Transfer Agent,
is responsible for maintaining the Trust's shareholder registry and
shareholder accounting records, and for paying dividends and distributions to
shareholders of the Trust. It also handles shareholder servicing and
administrative functions. It serves as the Transfer Agent for an annual per
account fee.

The Custodian. Citibank, N.A. is the custodian of the Trust's assets. The
custodian's responsibilities include safeguarding and controlling the Trust's
portfolio securities and handling the delivery of such securities to and from
the Trust. It is the practice of the Trust to deal with the custodian in a
manner uninfluenced by any banking relationship the custodian may have with
the Manager and its affiliates. The Trust's cash balances with the custodian
in excess of $100,000 are not protected by federal deposit insurance. Those
uninsured balances at times may be substantial.

Independent Registered Public Accounting Firm. Deloitte & Touche LLP serves
as the independent registered public accounting firm for the Trust. Deloitte
& Touche LLP audits the Trust's financial statements and performs other
related audit services. Deloitte & Touche LLP also acts as the independent
registered public accounting firm for certain other funds advised by the
Manager and its affiliates. Audit and non-audit services provided by Deloitte
& Touche LLP to the Trust must be pre-approved by the Audit Committee.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

TO THE BOARD OF TRUSTEES AND SHAREHOLDERS OF CENTENNIAL TAX EXEMPT TRUST:

We have audited the accompanying statement of assets and liabilities of Centennial Tax Exempt Trust, including the statement of investments, as of June 30, 2005, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Trust is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of June 30, 2005, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Centennial Tax Exempt Trust as of June 30, 2005, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

DELOITTE & TOUCHE LLP

Denver, ColoradoAugust
15, 2005

STATEMENT OF INVESTMENTS JUNE 30, 2005


                                                                               PRINCIPAL         VALUE
                                                                                  AMOUNT    SEE NOTE 1
- ------------------------------------------------------------------------------------------------------

SHORT-TERM TAX-EXEMPT OBLIGATIONS--99.6%
- ------------------------------------------------------------------------------------------------------
ALABAMA--2.8%
AL HFA MH RB, Rime Village Hoover Project, 1996 Series A, 2.40% 1            $   435,000   $   435,000
- ------------------------------------------------------------------------------------------------------
AL IDAU RB, Well Built Cabinet, Inc. Project, 2.55% 1                            480,000       480,000
- ------------------------------------------------------------------------------------------------------
AL IDAU RB, Whitesell Project, 2.63% 1                                         2,425,000     2,425,000
- ------------------------------------------------------------------------------------------------------
Calhoun Cnty., AL ED Council RB, IPC Aerospace Corp. Project,
Series 2000, 2.55% 1                                                           2,400,000     2,400,000
- ------------------------------------------------------------------------------------------------------
Calhoun Cnty., AL ED Council RB, Southern Bag Corp. Ltd. Expansion
Project, Series 1998, 2.60% 1                                                  3,150,000     3,150,000
- ------------------------------------------------------------------------------------------------------
Cullman Cnty., AL Medical Park South Medical Clinic Board RB,
Puttable Floating Option Tax Exempt Receipts, Series MT-121, 2.34% 1,2        12,250,000    12,250,000
- ------------------------------------------------------------------------------------------------------
Cullman Cnty., AL SWD Authority RB, Cullman Environmental, Inc. Project,
Series 2003-A, 2.63% 1                                                         2,115,000     2,115,000
- ------------------------------------------------------------------------------------------------------
Florence, AL IDB RB, Nichols Wire, Inc. Project, Series A, 2.63% 1             2,570,000     2,570,000
- ------------------------------------------------------------------------------------------------------
Hoover, AL BOE Capital Outlay TANs, AAMC Series 2001-16, 2.32% 1,2             4,950,000     4,950,000
- ------------------------------------------------------------------------------------------------------
Hoover, AL MH RB, Royal Oaks Apts. Project, Series 2004, 2.42% 1               5,200,000     5,200,000
- ------------------------------------------------------------------------------------------------------
Jefferson Cnty., AL GOLB, Puttable Floating Option Tax Exempt Receipts,
Series PT-2477, 2.35% 1                                                        6,955,000     6,955,000
- ------------------------------------------------------------------------------------------------------
Mobile, AL Medical Clinic Board RB, Springhill Professional Ltd.,
Series 1996, 2.40% 1                                                           1,885,000     1,885,000
- ------------------------------------------------------------------------------------------------------
Montgomery, AL Education Building Authority RB, Faulkner University
Campus Housing Project, Series 2004, 2.53% 1                                   3,000,000     3,000,000
- ------------------------------------------------------------------------------------------------------
Montgomery, AL IDB RB, Asphalt Contractors, Inc., 2.63% 1                        500,000       500,000
                                                                                           -----------
                                                                                            48,315,000

- ------------------------------------------------------------------------------------------------------
ALASKA--2.8%
AK Export & IDAU RB, Reset Option Certificates II-R Trust,
Series 320, 2.32% 1                                                           28,000,000    28,000,000
- ------------------------------------------------------------------------------------------------------
AK HFC RB, MERLOTS Series 2005-A08, 2.32% 1
                                                                               4,150,000     4,150,000
- ------------------------------------------------------------------------------------------------------
North Slope Borough, AK GOB, Series B, 2.32% 1                                15,900,000    15,900,000
                                                                                           -----------
                                                                                            48,050,000

- ------------------------------------------------------------------------------------------------------
ARIZONA--2.6%
AZ First Matrix Charter School Trust Pass-Through Certificates,
Series 2002-A, Cl. A, 2.58% 1,2                                               13,052,000    13,052,000
- ------------------------------------------------------------------------------------------------------
Phoenix, AZ IDAU MH RRB, Paradise Lakes Apts. Project, Series 1995, 2.35% 1   22,500,000    22,500,000
- ------------------------------------------------------------------------------------------------------
Tempe, AZ IDAU MH RB, Puttable Floating Option Tax Exempt Receipts,
Series MT-067, 2.37% 1,2                                                       8,295,000     8,295,000
                                                                                           -----------
                                                                                            43,847,000

- ------------------------------------------------------------------------------------------------------
CALIFORNIA--4.2%
Alameda, CA Corridor Transportation Authority RB, Puttable Floating
Option Tax Exempt Receipts, Series PZ-51, 2.35% 1,2                            8,660,000     8,660,000

7 | CENTENNIAL TAX EXEMPT TRUST

STATEMENT OF INVESTMENTS CONTINUED


                                                                              PRINCIPAL         VALUE
                                                                                 AMOUNT    SEE NOTE 1
- -----------------------------------------------------------------------------------------------------

CALIFORNIA Continued
Alameda/Contra Costa, CA Schools FAU COP, Capital Improvements
Financing Project, Series H, 2.45% 1                                        $ 4,365,000   $ 4,365,000
- -----------------------------------------------------------------------------------------------------
CA RB, Koch Trust Certificates, Series 1999-2, 2.33% 1                       12,775,000    12,775,000
- -----------------------------------------------------------------------------------------------------
CA Puttable Floating Option Tax Exempt Receipts, Series PZP-002, 2.43% 1      8,115,000     8,115,000
- -----------------------------------------------------------------------------------------------------
CA Puttable Floating Option Tax Exempt Receipts, Series PZP-005, 2.38% 1,2   20,245,000    20,245,000
- -----------------------------------------------------------------------------------------------------
CA SCDAU MH RB, Crossings at Madera, Series NN, 2.68%, 7/21/05 3              1,000,000     1,000,000
- -----------------------------------------------------------------------------------------------------
CA Various RB, Puttable Floating Option Tax Exempt Receipts,
Series PZP-008, 2.38% 1,2                                                     4,410,000     4,410,000
- -----------------------------------------------------------------------------------------------------
Mt. Diablo, CA USD GOB, AAMC Series 2004-36, 2.31% 1,2                        3,000,000     3,000,000
- -----------------------------------------------------------------------------------------------------
San Diego, CA Water Utility Fund Net System GOB, AAMC Series
1998-10, 2.30% 1,2                                                            3,700,000     3,700,000
- -----------------------------------------------------------------------------------------------------
Santa Rosa, CA Wastewater RB, Puttable Floating Option Tax Exempt
Receipts, Series PZ-43, 2.38% 1                                               3,040,000     3,040,000
- -----------------------------------------------------------------------------------------------------
Vallejo, CA COP, Capital Improvements Project, Series 2002, 2.41% 1           2,500,000     2,500,000
                                                                                          -----------
                                                                                           71,810,000

- -----------------------------------------------------------------------------------------------------
COLORADO--9.9%
Arapahoe Cnty., CO Water & Wastewater Authority RRB, Series A, 2.31% 1        2,500,000     2,500,000
- -----------------------------------------------------------------------------------------------------
Boulder Cnty., CO RB, Open Space Capital Improvements Trust Fund,
Reset Option Certificates II-R Trust, Series 340, 2.32% 1,2                   3,000,000     3,000,000
- -----------------------------------------------------------------------------------------------------
Brighton, CO Crossing Metro District No. 4 RB, Series 2004, 2.43% 1           2,500,000     2,500,000
- -----------------------------------------------------------------------------------------------------
Centerra Metropolitan District No. 1, CO RB, Series 2004, 2.31% 1            12,000,000    12,000,000
- -----------------------------------------------------------------------------------------------------
Central Platte Valley Metro District, CO GOB, Series B, 2.30%, 12/1/05 3      3,000,000     3,000,000
- -----------------------------------------------------------------------------------------------------
CO ECFA Public Radio RB, Community Wireless Park City, 2.33% 1                  790,000       790,000
- -----------------------------------------------------------------------------------------------------
CO ECFA RB, St. Marys Academy Project, 2.45% 1                                6,000,000     6,000,000
- -----------------------------------------------------------------------------------------------------
CO HFA SFM RB, 2004 Series B-4, Cl. I, 1.99%, 11/1/05                         7,985,000     7,985,000
- -----------------------------------------------------------------------------------------------------
CO MuniMae Trust Pass-Through Certificates, Canterberry Crossing,
Series 2002-A, Cl. A, 2.68% 1                                                12,330,000    12,330,000
- -----------------------------------------------------------------------------------------------------
Concord Metropolitan District, CO REF GO, Improvement Projects,
Series 2004, 2.25%, 12/1/05 3                                                 2,600,000     2,600,000
- -----------------------------------------------------------------------------------------------------
Denver, CO Cty. & Cnty. Excise Tax RB, Colorado Convention Center
Project, 2.30% 1                                                              5,650,000     5,650,000
- -----------------------------------------------------------------------------------------------------
Denver, CO International Business Center Metropolitan District No. 1
GOLB, Series 2002, 2.68% 1                                                    8,065,000     8,065,000
- -----------------------------------------------------------------------------------------------------
Ebert Metro District, CO Securitization Trust GOLB, Series 2004-S1,
Cl. A2, 2.43% 1                                                               8,500,000     8,500,000
- -----------------------------------------------------------------------------------------------------
Kipling Ridge Metro District, CO RB, Series 2005, 2.33% 1                     3,725,000     3,725,000
- -----------------------------------------------------------------------------------------------------
Midcities Metropolitan District No. 1, CO RB, BNP Paribas STARS
Certificates Trust, Series 2004-110, 2.35% 1                                 16,735,000    16,735,000
- -----------------------------------------------------------------------------------------------------
Midcities Metropolitan District No. 1, CO RRB, Series 2004A, 2.35% 1         14,900,000    14,900,000
- -----------------------------------------------------------------------------------------------------
Park Creek Metro District, CO RB, Puttable Floating Option Tax
Exempt Receipts, Series PT-2321, 2.37% 1,2                                    5,775,000     5,775,000

8 | CENTENNIAL TAX EXEMPT TRUST


                                                                               PRINCIPAL          VALUE
                                                                                  AMOUNT     SEE NOTE 1
- -------------------------------------------------------------------------------------------------------

COLORADO Continued
Parker, CO Automotive Metropolitan District GOLB, Series 2005, 2.85% 1      $  4,510,000   $  4,510,000
- -------------------------------------------------------------------------------------------------------
Stapleton Business Center Metro District, CO RB, 2.38% 1                       7,550,000      7,550,000
- -------------------------------------------------------------------------------------------------------
Superior Metro District No. 1, CO WSS RRB, Series 2000A, 2.338%, 12/1/05 3     3,035,000      3,035,000
- -------------------------------------------------------------------------------------------------------
Superior Metro District No. 1, CO WSS RRB, Series 2002, 2.33% 1                2,500,000      2,500,000
- -------------------------------------------------------------------------------------------------------
Superior/McCaslin Interchange Metro District, CO GOB, Series 2004,
2.10%, 11/15/05 3                                                              3,970,000      3,970,000
- -------------------------------------------------------------------------------------------------------
Thornton, CO RB, Puttable Floating Option Tax Exempt Receipts,
Series PT-2522, Newport Village Project, 2.32% 1,2                             3,075,000      3,075,000
- -------------------------------------------------------------------------------------------------------
Westminster, CO EDAU Tax Increment RB, North Huron Urban Renewal,
Series 2005, 2.31% 1                                                          11,000,000     11,000,000
- -------------------------------------------------------------------------------------------------------
Westminster, CO MH RB, Puttable Floating Option Tax Exempt Receipts,
Series MT-068, 2.37% 1,2                                                      14,670,000     14,670,000
- -------------------------------------------------------------------------------------------------------
Willow Trace Metro District, CO GOLB, Series 2001A, 2.30%, 12/1/05 3           2,295,000      2,295,000
                                                                                           ------------
                                                                                            168,660,000

- -------------------------------------------------------------------------------------------------------
FLORIDA--5.8%
Bay Cnty., FL EDLFA RB, Bay Haven Charter Academy, Series 2004, 2.42% 1       11,600,000     11,600,000
- -------------------------------------------------------------------------------------------------------
Broward Cnty., FL Airport Systems RB, Puttable Floating Option Tax
Exempt Receipts, Series PT-2417, 2.32% 1                                       5,310,000      5,310,000
- -------------------------------------------------------------------------------------------------------
Collier Cnty., FL IDAU RB, Gulf Coast American Blind, Series A, 2.63% 1        2,730,000      2,730,000
- -------------------------------------------------------------------------------------------------------
Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project,
ETET Series 96C0911, Cl. A, 2.32% 1,2                                         17,795,000     17,795,000
- -------------------------------------------------------------------------------------------------------
Hillsborough Cnty., FL IDAU PC COP, Tampa Electric Co. Project,
ETET Series 97C0901, Cl. A, 2.32% 1,2                                         17,795,000     17,795,000
- -------------------------------------------------------------------------------------------------------
Jacksonville, FL HFAU RB, Baptist Medical Center Project, Series 2004,
1.93%, 7/27/05 3                                                               5,000,000      5,000,000
- -------------------------------------------------------------------------------------------------------
Jacksonville, FL Sales Tax RB, MERLOTS Series 2003 B26, 2.32% 1,2              9,980,000      9,980,000
- -------------------------------------------------------------------------------------------------------
Palm Beach Cnty., FL HFA MH RB, Emerald Bay Club Apts.,
Series 2004, 2.31% 1                                                           6,500,000      6,500,000
- -------------------------------------------------------------------------------------------------------
Port St. Lucie, FL Utility System RB, Series 2005, 2.31% 1                    10,000,000     10,000,000
- -------------------------------------------------------------------------------------------------------
Seminole Cnty., FL IDAU RB, Masters Academy Project, Series 2004, 2.32% 1      3,035,000      3,035,000
- -------------------------------------------------------------------------------------------------------
UCF Athletic Assn., FL RB, Roaring Fork Municipal Products LLC,
Series 2005-11, Cl. A, 2.36% 1,2                                               9,510,000      9,510,000
                                                                                           ------------
                                                                                             99,255,000

- -------------------------------------------------------------------------------------------------------
GEORGIA--2.0%
Cherokee Cnty., GA WSS RRB, MERLOTS Series 2003 A14, 2.32% 1,2                 7,005,000      7,005,000
- -------------------------------------------------------------------------------------------------------
Columbus, GA DAU RB, Jordan Co. Project, Series 2000, 2.65% 1                    700,000        700,000
- -------------------------------------------------------------------------------------------------------
GA GOB, Series 1995B, ETET Series 96C1004, Cl. A, 2.32% 1,2                   11,880,000     11,880,000
- -------------------------------------------------------------------------------------------------------
Greene Cnty., GA HA RANs, Series 2004, 2.42% 1                                 5,990,000      5,990,000
- -------------------------------------------------------------------------------------------------------
Rockdale Cnty., GA DAU MH RB, Series F3J, 2.48% 1                              7,835,000      7,835,000

9 | CENTENNIAL TAX EXEMPT TRUST

STATEMENT OF INVESTMENTS CONTINUED


                                                                                PRINCIPAL          VALUE
                                                                                   AMOUNT     SEE NOTE 1
- --------------------------------------------------------------------------------------------------------

GEORGIA Continued
Savannah, GA EDAU IDV RB, Savannah Steel & Metal Project,
Series 1995, 2.63% 1                                                          $   715,000   $    715,000
                                                                                            ------------
                                                                                              34,125,000
- --------------------------------------------------------------------------------------------------------
ILLINOIS--11.5%
Boone, McHenry & DeKalb Cntys., IL Community SDI No. 100,GOUN
Puttable Floating Option Tax Exempt Receipts, Series PZ-50, 2.40% 1,2           2,730,000      2,730,000
- --------------------------------------------------------------------------------------------------------
Chicago, IL BOE GOUN, AAMC Series 2002-4, 2.33% 1,2                             9,225,000      9,225,000
- --------------------------------------------------------------------------------------------------------
Chicago, IL GOB, AAMC Series 2001-34, 2.33% 1,2                                10,975,000     10,975,000
- --------------------------------------------------------------------------------------------------------
Chicago, IL GOUN, AAMC Series 1998-3, 2.33% 1,2                                 8,735,000      8,735,000
- --------------------------------------------------------------------------------------------------------
Chicago, IL RB, Boys & Girls Clubs Project, 2.45% 1                               900,000        900,000
- --------------------------------------------------------------------------------------------------------
Chicago, IL RB, Lakefront Millennium Parking Facility,
ETET Series 981303, Cl. A, 2.32% 1,2                                           22,495,000     22,495,000
- --------------------------------------------------------------------------------------------------------
Chicago, IL Water RB, Puttable Floating Option Tax Exempt
Receipts, Series MT-030, 2.31% 1,2                                              3,755,000      3,755,000
- --------------------------------------------------------------------------------------------------------
Crestwood, IL Tax Increment RB, Series 2003, 2.33% 1                           14,370,000     14,370,000
- --------------------------------------------------------------------------------------------------------
East Peoria, IL CDAU RRB, The Kroger Co., Series 2003, 2.38% 1                  3,125,000      3,125,000
- --------------------------------------------------------------------------------------------------------
IL DFA RB, Oak Crest Residence Project, Series 2000, 2.45% 1                    3,400,000      3,400,000
- --------------------------------------------------------------------------------------------------------
IL EDLFA RB, Field Museum Natural History, Series 1998, 2.35% 1                 2,950,000      2,950,000
- --------------------------------------------------------------------------------------------------------
IL FAU RB, Mercy Alliance, Inc. Project, Series 2005, 2.32% 1                   7,000,000      7,000,000
- --------------------------------------------------------------------------------------------------------
IL FAU RB, Sauk Valley Community College Project, Series 2004A, 2.37% 1         6,725,000      6,725,000
- --------------------------------------------------------------------------------------------------------
IL HFAU RB, Blessing Hospital, Series B, FSA Insured, 2.34% 1                   2,200,000      2,200,000
- --------------------------------------------------------------------------------------------------------
IL HFAU RB, Franciscan Eldercare & Community Services, Series 1996B, 2.30% 1    1,750,000      1,750,000
- --------------------------------------------------------------------------------------------------------
IL Metropolitan Pier & Exposition Authority RB, Puttable Floating
Option Tax Exempt Receipts, Series PZ-45, 2.40% 1,2                             5,805,000      5,805,000
- --------------------------------------------------------------------------------------------------------
IL Metropolitan Pier & Exposition Authority RB, Puttable Floating
Option Tax Exempt Receipts, Series PZ-52, 2.40% 1                               7,570,000      7,570,000
- --------------------------------------------------------------------------------------------------------
IL Puttable Floating Option Tax Exempt Receipts, Series PZP-006, 2.43% 1,2      5,815,000      5,815,000
- --------------------------------------------------------------------------------------------------------
IL RTA RB, Series 2003B Macon Trust Variable Certificates,
Series 2004B, 2.32% 1,2                                                         3,335,000      3,335,000
- --------------------------------------------------------------------------------------------------------
Lakemoor, IL MH RB, Lakemoor Apts. Project, Series 1985 A, 2.44% 1             26,860,000     26,860,000
- --------------------------------------------------------------------------------------------------------
Lakemoor, IL MH RB, Lakemoor Apts. Project, Series 1985 B, 2.53% 1             19,335,486     19,335,486
- --------------------------------------------------------------------------------------------------------
lL Metropolitan Pier & Exposition Authority RB, Puttable Floating
Option Tax Exempt Receipts, Series PZ-44, 2.40% 1,2                             6,605,000      6,605,000
- --------------------------------------------------------------------------------------------------------
Monmouth, IL Industrial Project RB, Monmouth College Project,
Series 2005, 2.31% 1                                                            6,500,000      6,500,000
- --------------------------------------------------------------------------------------------------------
West Frankfort, IL IDV RRB, The Kroger Co., Series 2004, 2.38% 1                  800,000        800,000
- --------------------------------------------------------------------------------------------------------
Will Cnty., IL Community Unit SDI No. 365 REF GOUN, Puttable
Floating Option Tax Exempt Receipts, Series PZ-47, 2.40% 1,2                    8,995,000      8,995,000
- --------------------------------------------------------------------------------------------------------
Will Cnty., IL New Lenox SDI No. 122 GOUN, Puttable Floating
Option Tax Exempt Receipts, Series PZ-48, 2.40% 1,2                             3,350,000      3,350,000
                                                                                            ------------
                                                                                             195,305,486

10 | CENTENNIAL TAX EXEMPT TRUST


                                                               PRINCIPAL          VALUE
                                                                  AMOUNT     SEE NOTE 1
- ---------------------------------------------------------------------------------------

INDIANA--2.4%
IN GOB, AAMC Series 2003-15, Single Asset Trust, 2.33% 1,2  $ 14,200,000   $ 14,200,000
- ---------------------------------------------------------------------------------------
IN HFFAU RB, Ascension Health Credit Group, Series 2001A,     10,000,000     10,000,000
2.50% 1
- ---------------------------------------------------------------------------------------
IN MPA PPS RB, ETET Series 981401, Cl. A, 2.32% 1,2           13,600,000     13,600,000
- ---------------------------------------------------------------------------------------
Indianapolis, IN Local Public Improvement RB, Puttable
Floating Option Tax Exempt Receipts, Series PZ-58, 2.40% 1,2   3,190,000      3,190,000
                                                                           ------------
                                                                             40,990,000

- ---------------------------------------------------------------------------------------
KANSAS--0.1%
Wyandotte Cnty., KS Utility System RB, Puttable Tax Exempt
Receipts, Series 595, 2.32% 1                                  1,695,000      1,695,000
- ---------------------------------------------------------------------------------------
KENTUCKY--1.7%
Hancock Cnty., KY SWD RB, NSA Ltd. Project, Series 1998,
2.58% 1                                                        7,815,000      7,815,000
- ---------------------------------------------------------------------------------------
Jefferson Cnty., KY Industrial Building RB, Franciscan
Eldercare Service, 2.32% 1                                     5,925,000      5,925,000
- ---------------------------------------------------------------------------------------
Morgantown, KY SWD Facilities RB, IMCO Recycling, Inc.
Project, Series 2004, 2.53% 1                                  5,000,000      5,000,000
- ---------------------------------------------------------------------------------------
Somerset, KY Industrial Building RB, Tibbals Flooring Co.
Project, Series 1989, 2.63% 1                                 10,000,000     10,000,000
                                                                           ------------
                                                                             28,740,000

- ---------------------------------------------------------------------------------------
LOUISIANA--3.4%
Jefferson Parish, LA Hospital Service District No. 001 RB,
Putters Series 522, 2.34% 1                                   22,000,000     22,000,000
- ---------------------------------------------------------------------------------------
Jefferson Parish, LA SFM RB, Series B, 3.248% 1               16,724,132     16,724,132
- ---------------------------------------------------------------------------------------
LA Gas & Fuels Tax Nts., AAMC Series 2002-17, 2.33% 1,2       15,000,000     15,000,000
- ---------------------------------------------------------------------------------------
LA HFA MH RB, Walmsley Housing Corp. Project, Series 2004,
2.33% 1                                                        1,900,000      1,900,000
- ---------------------------------------------------------------------------------------
LA TS Financing Corp. RB, Puttable Floating Option Tax
Exempt Receipts, Series PA-1288, 2.38% 1,2                     2,000,000      2,000,000
                                                                           ------------
                                                                             57,624,132

- ---------------------------------------------------------------------------------------
MASSACHUSETTS--0.1%
MA GOB, 2.30% 1                                                2,000,000      2,000,000
- ---------------------------------------------------------------------------------------
MICHIGAN--1.1%
MI Job DAU RB, East Lansing Residence Associates Project,
2.70% 1                                                        1,900,000      1,900,000
- ---------------------------------------------------------------------------------------
MI Multi-Modal GOB, Environmental Program, Series 2004A,
1.95% 1                                                       16,370,000     16,370,000
                                                                           ------------
                                                                             18,270,000

- ---------------------------------------------------------------------------------------
MINNESOTA--3.5%
Bloomington, MN CD RB, 94th Street Associates Project,
Series 1985, 2.59% 1                                           3,915,000      3,915,000
- ---------------------------------------------------------------------------------------
Bloomington, MN CD RB, James Avenue Associates Project,
Series 1985, 2.59% 1                                           3,805,000      3,805,000
- ---------------------------------------------------------------------------------------
East Grand Forks, MN SWD RB, American Crystal Sugar Co.,
Series 2000, 2.60% 1                                           5,750,000      5,750,000
- ---------------------------------------------------------------------------------------
Fulda, MN ISD No. 505 GO Aid Anticipation Certificates of
Indebtness, Series A, 3%, 9/30/05                              1,100,000      1,103,365

11 | CENTENNIAL TAX EXEMPT TRUST

STATEMENT OF INVESTMENTS CONTINUED


                                                               PRINCIPAL          VALUE
                                                                  AMOUNT     SEE NOTE 1
- ---------------------------------------------------------------------------------------

MINNESOTA Continued
Hayfield, MN ISD No. 203 GO Aid Anticipation Certificates
of Indebtedness, Series A, 3%, 9/30/05                      $  1,000,000   $  1,003,185
- ---------------------------------------------------------------------------------------
Mankato, MN IDV RB, Sacco Family Ltd. Partnership,
2.55% 1                                                          985,000        985,000
- ---------------------------------------------------------------------------------------
Minneapolis, MN HCF RRB, Fairview Health Services, Series
2005 B, 2.30% 1                                               12,000,000     12,000,000
- ---------------------------------------------------------------------------------------
MN GOB, ETET Series 20002301, Cl. A, 2.32% 1,2                16,010,000     16,010,000
- ---------------------------------------------------------------------------------------
Northfield, MN ISD No. 659 GO Aid Anticipation
Certificates of Indebtedness, Series C, 3%, 9/26/05            4,950,000      4,964,820
- ---------------------------------------------------------------------------------------
Park Rapids, MN ISD No. 309 GO Aid Anticipation
Certificates of Indebtedness, Series 2004A, 3%, 9/12/05        5,900,000      5,915,974
- ---------------------------------------------------------------------------------------
Rochester, MN IDV RRB, Seneca Foods Corp. Project, Series
1992, 2.53% 1                                                  4,675,000      4,675,000
                                                                           ------------
                                                                             60,127,344

- ---------------------------------------------------------------------------------------
MISSISSIPPI--0.2%
MS Home Corp. MH RRB, Summer Park Apts. Project,
Series 1999 D-2, 2.50% 1                                         650,000        650,000
- ---------------------------------------------------------------------------------------
Panola Cnty., MS IDV RRB, The Kroger Co., Series
2003, 2.38% 1                                                  3,250,000      3,250,000
                                                                           ------------
                                                                              3,900,000

- ---------------------------------------------------------------------------------------
MISSOURI--2.1%
Kansas City, MO IDAU RB, Puttable Floating Option Tax
Exempt Receipts, Series PT-2525, Whis Lake Project,
2.32% 1,2                                                      4,395,000      4,395,000
- ---------------------------------------------------------------------------------------
Kansas City, MO Municipal Assistance Corp. RB,
Puttable Floating Option Tax Exempt Receipts,
Series PZ-53, 2.40% 1,2                                        3,800,000      3,800,000
- ---------------------------------------------------------------------------------------
MO DFB Cultural Facilities RB, Center of Creative
Arts Project, Series 2004, 2.33% 1                             2,300,000      2,300,000
- ---------------------------------------------------------------------------------------
So. Pointe/Hunters Ridge MO, RB, Trust Certificates, Series
2005 A, 2.33% 1,2                                             10,575,000     10,575,000
- ---------------------------------------------------------------------------------------
So. Pointe/Hunters Ridge MO, RB, Trust Certificates,
Series 2005 B, 2.33% 1,2                                       8,365,000      8,365,000
- ---------------------------------------------------------------------------------------
Springfield, MO RB, Puttable Floating Option Tax
Exempt Receipts, Series PT-2521, Monclair Project,
2.32% 1,2                                                      4,200,000      4,200,000
- ---------------------------------------------------------------------------------------
St. Louis Cnty., MO IDAU MH RB, Heatherbrook Gardens
Apts., Series 1992, 2.46% 1                                    1,765,000      1,765,000
                                                                           ------------
                                                                             35,400,000

- ---------------------------------------------------------------------------------------
NEVADA--1.8%
NV GOLB, SGMSTR Series 1997 SG114, 2.31% 1,2                  15,000,000     15,000,000
- ---------------------------------------------------------------------------------------
Washoe Cnty., NV GOLB, AAMC Series 2001-24, Single Asset
Trust, 2.33% 1,2                                              16,090,000     16,090,000
                                                                           ------------
                                                                             31,090,000

- ---------------------------------------------------------------------------------------
NEW HAMPSHIRE--0.5%
Manchester, NH H&RA MH RB, Wall Street Tower Ltd.
Partnership, Series 1990A, 2.32% 1                             4,800,000      4,800,000
- ---------------------------------------------------------------------------------------
NH H&EFA RB, Antioch University Issue, 2.32% 1                 4,320,000      4,320,000
                                                                           ------------
                                                                              9,120,000

12 | CENTENNIAL TAX EXEMPT TRUST


                                                               PRINCIPAL          VALUE
                                                                  AMOUNT     SEE NOTE 1
- ---------------------------------------------------------------------------------------

NEW JERSEY--0.4%
NJ TS Financing Corp. RB, Puttable Floating Option Tax
Exempt Receipts, Series PA-1283, 2.35% 1                    $  6,250,000   $  6,250,000
- ---------------------------------------------------------------------------------------
NEW MEXICO--3.1%
Bernalillo Cnty., NM Gross Receipts Tax RRB, Macon Trust
Variable Certificates, Series 2004B, 2.32% 1,2                 5,160,000      5,160,000
- ---------------------------------------------------------------------------------------
NM MFA RB, SFM Program Issue 2005, 3.13% 1                    40,771,195     40,771,195
- ---------------------------------------------------------------------------------------
NM Region II Housing MH RB, Santa Fe Retirement Village
Apts., Series A, 2.20% 1                                       7,500,000      7,500,000
                                                                           ------------
                                                                             53,431,195

- ---------------------------------------------------------------------------------------
NEW YORK--2.0%
NY Upstate Telecommunications Corp. RB, Series 2005, 2.59% 1   7,300,000      7,300,000
- ---------------------------------------------------------------------------------------
NYC GOUN, Puttable Floating Option Tax Exempt Receipts,
Series PT-2848, 2.34% 1,2                                        790,000        790,000
- ---------------------------------------------------------------------------------------
NYC IDA Civic Facilities RB, Birch Wathen Lenox School
Project, 2.30% 1                                               1,600,000      1,600,000
- ---------------------------------------------------------------------------------------
NYC IDA Civic Facilities RB, Casa Project, 2.36% 1             2,600,000      2,600,000
- ---------------------------------------------------------------------------------------
NYC MTAU RRB, Puttable Floating Option Tax Exempt Receipts,
Series PA-1088, 2.31% 1,2                                      2,200,000      2,200,000
- ---------------------------------------------------------------------------------------
NYC MTAU RRB, Series A, MERLOTS Series 2004 B-16, 2.31% 1,2    2,995,000      2,995,000
- ---------------------------------------------------------------------------------------
NYS DA RB, MERLOTS Series 2003 B30, 2.31% 1,2                  1,000,000      1,000,000
- ---------------------------------------------------------------------------------------
NYS DA RB, Non State Supported Debt-Court Facilities Lease,
Series 2005B, 2.20% 1                                          9,000,000      9,000,000
- ---------------------------------------------------------------------------------------
NYS GOUN, Series A, 1.80%, 10/7/05 3                           1,900,000      1,900,000
- ---------------------------------------------------------------------------------------
Oneida Cnty., NY IDA RB, Civic Facilities, Rome Memorial
Hospital, Inc. Project, Series 2005, 2.33% 1                   5,000,000      5,000,000
                                                                           ------------
                                                                             34,385,000

- ---------------------------------------------------------------------------------------
NORTH CAROLINA--0.6%
Craven Cnty., NC IFPCFA RB, Wheatstone Corp. Project,
2.63% 1                                                        2,000,000      2,000,000
- ---------------------------------------------------------------------------------------
Hoke Cnty., NC IFPCFA RB, Triangle Building Supply, Inc.
Project, Series 1997, 2.63% 1                                  1,500,000      1,500,000
- ---------------------------------------------------------------------------------------
NC Community HCF RB, Carolina Meadows, Inc., Project,
Series 2004, 2.32% 1                                           5,000,000      5,000,000
- ---------------------------------------------------------------------------------------
Wake Cnty., NC IFPCFA RB, Aeroglide Corp. Project, Series
1997, 2.63% 1                                                    975,000        975,000
                                                                           ------------
                                                                              9,475,000

- ---------------------------------------------------------------------------------------
OHIO--4.3%
Columbus, OH RTA Capital Funding RB, OASBO Program,
Series 2004A, 2.30% 1                                         10,000,000     10,000,000
- ---------------------------------------------------------------------------------------
Franklin Cnty., OH HCF RB, Presbyterian Retirement Services,
Series 2002B, 2.32% 1                                          4,800,000      4,800,000
- ---------------------------------------------------------------------------------------
Franklin Cnty., OH HCF RB, Presbyterian Retirement Services,
Series 2005B, 2.32% 1                                          6,385,000      6,385,000
- ---------------------------------------------------------------------------------------
Gallia Cnty., OH IDV Mtg. RRB, Jackson Pike Assn., 3%,
12/15/05 3                                                     2,220,000      2,220,000

13 | CENTENNIAL TAX EXEMPT TRUST STATEMENT OF INVESTMENTS CONTINUED - --------------------------------------------------------------------------------


                                                                     PRINCIPAL         VALUE
                                                                        AMOUNT    SEE NOTE 1
- --------------------------------------------------------------------------------------------

OHIO Continued
Hamilton Cnty., OH HCF RB, Twin Towers & Twin Lakes
Project, Series A, 2.57% 1                                     $     8,000,000   $ 8,000,000
- --------------------------------------------------------------------------------------------
Hamilton Cnty., OH Hospital Facilities RB, Children's
Hospital & Medical Center, Series 2000, 2.26% 1                      8,250,000     8,250,000
- --------------------------------------------------------------------------------------------
Madeira, OH ED RRB, The Kroger Co., Series 2004, 2.38% 1             2,050,000     2,050,000
- --------------------------------------------------------------------------------------------
OH Water DAU RB, Series A, 2.35% 1                                  15,400,000    15,400,000
- --------------------------------------------------------------------------------------------
OH Water DAU RRB, 2.35% 1                                           13,835,000    13,835,000
- --------------------------------------------------------------------------------------------
Stark Cnty., OH IDV RRB, The Kroger Co., Series 2004, 2.38% 1        3,100,000     3,100,000
                                                                                 -----------
                                                                                  74,040,000

- --------------------------------------------------------------------------------------------
PENNSYLVANIA--0.7%
Berks Cnty., PA IDAU RB, Visiting Nurse Assn., Inc. Project,
Series B, 2.39% 1                                                      670,000       670,000
- --------------------------------------------------------------------------------------------
Harrisburg, PA Authority RB, Haverford Township
School, Subseries 2001-A, 2.33% 1                                    2,195,000     2,195,000
- --------------------------------------------------------------------------------------------
Moon, PA IDAU Community Facilities RB, YMCA of Greater
Pittsburg Project, Series 2005, 2.31% 1                              3,780,000     3,780,000
- --------------------------------------------------------------------------------------------
PA Public School Buildings RB, MERLOTS Series 2003 A42,
1.80% 1,4                                                            3,790,000     3,790,000
- --------------------------------------------------------------------------------------------
Philadelphia, PA IDAU RB, Friends of Mast School, Inc.
Project, 2.34% 1                                                       885,000       885,000
                                                                                 -----------
                                                                                  11,320,000

- --------------------------------------------------------------------------------------------
SOUTH CAROLINA--1.1%
SC Medical University HA RB, Series 2005-A, 2.33% 1,2               18,230,000    18,230,000
- --------------------------------------------------------------------------------------------
TENNESSEE--1.5%
Knox, TN Health, Education & Housing RB, Puttable Floating
Option Tax Exempt Receipts, Series PT-2524, Steeple Chase
Project, 2.32% 1,2                                                   6,245,000     6,245,000
- --------------------------------------------------------------------------------------------
Metropolitan Government Nashville & Davidson Cnty.,
TN Health & Education Board RB, Ascension Health,
Series 2001B, 1.65%, 8/3/05 3                                       14,000,000    14,000,000
- --------------------------------------------------------------------------------------------
Springfield, TN IDV Board RRB, The Kroger Co., Series
2004, 2.38% 1                                                        4,500,000     4,500,000
                                                                                 -----------
                                                                                  24,745,000

- --------------------------------------------------------------------------------------------
TEXAS--11.2%
Allen, TX ISD GOUN, Puttable Tax Exempt Receipts, Series
715, 2.32% 1                                                         1,505,000     1,505,000
- --------------------------------------------------------------------------------------------
Bexar Cnty., TX HFC MH RB, Summit Hills Apts. Project,
Series A, 2.33% 1                                                    3,500,000     3,500,000
- --------------------------------------------------------------------------------------------
Cedar Hill, TX ISD REF GOUN, School Building, Series 1996,
2.50%, 8/15/05 5                                                     2,830,000     2,821,367
- --------------------------------------------------------------------------------------------
Clipper, TX COP, Tax Exempt Certificates Trust
Multistate, Series 2005-7, 2.40% 1,2                                28,500,000    28,500,000
- --------------------------------------------------------------------------------------------
Comal, TX ISD GOUN, Puttable Tax Exempt Receipts, Series
756, 2.32% 1,2                                                       2,585,000     2,585,000
- --------------------------------------------------------------------------------------------
Garland, TX ISD GOUN, School Building, Series 2004-B, 2.75%,
12/15/05 3                                                           7,125,000     7,125,000
- --------------------------------------------------------------------------------------------
Hays, TX Consolidated ISD GOB, Puttable Tax Exempt
Receipts, Series 632, 2.32% 1                                        3,200,000     3,200,000
- --------------------------------------------------------------------------------------------
Houston, TX WSS RB, SGMSTR Series 1997 SG120, 2.31% 1,2             22,600,000    22,600,000
- --------------------------------------------------------------------------------------------
Keller, TX ISD GOUN, AAMC Series 2001-26, 2.33% 1,2                  3,000,000     3,000,000

14 | CENTENNIAL TAX EXEMPT TRUST


                                                                       PRINCIPAL           VALUE
                                                                          AMOUNT      SEE NOTE 1
- ------------------------------------------------------------------------------------------------

TEXAS Continued
Klein, TX ISD GOB, MERLOTS Series C-02, 2.32% 1                     $  4,175,000   $   4,175,000
- ------------------------------------------------------------------------------------------------
Lamar, TX Consolidated ISD Schoolhouse GOUN, Series 2004,
1.75%, 9/9/05 3                                                       11,500,000      11,500,000
- ------------------------------------------------------------------------------------------------
Mansfield, TX ISD School Building GOUN, MERLOTS Series B11,
2.32% 1,2                                                             14,590,000      14,590,000
- ------------------------------------------------------------------------------------------------
North TX/Dallas North TWY System RB, ETET Series 720050025,
Cl. A, 2.32% 1,2                                                       8,000,000       8,000,000
- ------------------------------------------------------------------------------------------------
Northside, TX ISD GOUN, Puttable Tax Exempt Receipts,
Series 751, 2.32% 1,2                                                  3,455,000       3,455,000
- ------------------------------------------------------------------------------------------------
San Antonio, TX Electric & Gas RB, Puttable Tax Exempt
Receipts, Series 769, 2.32% 1,2                                        5,385,000       5,385,000
- ------------------------------------------------------------------------------------------------
Spring Branch, TX ISD Schoolhouse GOLB, Series 2004, 1.75%,
9/9/05 3                                                              15,700,000      15,700,000
- ------------------------------------------------------------------------------------------------
Sunnyvale, TX ISD GOB, Puttable Tax Exempt Receipts, Series
619, 2.32% 1                                                           2,000,000       2,000,000
- ------------------------------------------------------------------------------------------------
TX SGMSTR Series SG P-19, 2.43% 1                                      1,620,000       1,620,000
- ------------------------------------------------------------------------------------------------
TX TANs & RANs, Series 2004, 3%, 8/31/05                              35,000,000      35,070,741
- ------------------------------------------------------------------------------------------------
TX TUAU RB, Dallas Northtollway, SGMSTR Series 1996 SG70,
2.31% 1,2                                                             11,000,000      11,000,000
- ------------------------------------------------------------------------------------------------
Upper Trinity Regional Water District, TX RB, Puttable Tax
Exempt Receipts, Series 579, 2.32% 1                                   2,835,000       2,835,000
                                                                                   -------------
                                                                                     190,167,108

- ------------------------------------------------------------------------------------------------
UTAH--0.8%
Beaver Cnty., UT Environmental Facilities RB, Best Biofuels
LLC Project, Series 2003A, 2.63% 1                                    10,985,000      10,985,000
- ------------------------------------------------------------------------------------------------
Davis Cnty., UT RB, Series 2003, 2.60% 1                               2,460,000       2,460,000
- ------------------------------------------------------------------------------------------------
Riverdale, UT RA Tax Increment RB, 2.40% 1                             1,000,000       1,000,000
                                                                                   -------------
                                                                                      14,445,000

- ------------------------------------------------------------------------------------------------
WASHINGTON--1.5%
Clark Cnty., WA Vancouver SDI No. 037 GOUN, Puttable
Floating Option Tax Exempt Receipts,
Series PZ-55, 2.40% 1,2                                                2,765,000       2,765,000
- ------------------------------------------------------------------------------------------------
King Cnty., WA GOLB, AAMC Series 2001-1, 2.33% 1,2                    12,770,000      12,770,000
- ------------------------------------------------------------------------------------------------
Marysville, WA WSS RB, Puttable Tax Exempt Receipts, Series
909, 2.32% 1,2                                                         7,345,000       7,345,000
- ------------------------------------------------------------------------------------------------
WA EDFA RB, A&T Mensonides Project, Series 2001-I, 2.60% 1             1,910,000       1,910,000
                                                                                   -------------
                                                                                      24,790,000

- ------------------------------------------------------------------------------------------------
WEST VIRGINIA--1.1%
Kanawha Cnty., WV IDV RRB, The Kroger Co., Series 2004-A,
2.38% 1                                                                4,500,000       4,500,000
- ------------------------------------------------------------------------------------------------
Kanawha Cnty., WV IDV RRB, The Kroger Co., Series 2004-B,
2.38% 1                                                                6,850,000       6,850,000
- ------------------------------------------------------------------------------------------------
Marmet, WV CD RRB, The Kroger Co., Series 2004, 2.38% 1                3,100,000       3,100,000
- ------------------------------------------------------------------------------------------------
WV HOFA RB, Pooled Financing Project, Series 2000 B-1,
2.34% 1                                                                3,800,000       3,800,000
                                                                                   -------------
                                                                                      18,250,000

15 | CENTENNIAL TAX EXEMPT TRUST

STATEMENT OF INVESTMENTS CONTINUED


                                                                        PRINCIPAL             VALUE
                                                                           AMOUNT        SEE NOTE 1
- ---------------------------------------------------------------------------------------------------

WISCONSIN--5.6%
Appleton, WI RED Authority RRB, Fox Cities Performing Arts
Center, Series 2001B, 2.45% 1                                        $  1,000,000   $     1,000,000
- ---------------------------------------------------------------------------------------------------
Clipper, WI COP, Tax Exempt Certificates Trust RB, Series
2005-29, 2.34% 1,2                                                     11,330,000        11,330,000
- ---------------------------------------------------------------------------------------------------
Columbus, WI IDV RB, Maysteel Corp. Project, Series 1994,
2.63% 1                                                                 2,000,000         2,000,000
- ---------------------------------------------------------------------------------------------------
Green Bay, WI HAU RB, Sisters of St. Francis Project,
Series 2004, 2.32% 1                                                    4,995,000         4,995,000
- ---------------------------------------------------------------------------------------------------
Janesville, WI IDV RRB, Seneca Foods Corp. Project, Series
2002, 2.53% 1                                                           7,710,000         7,710,000
- ---------------------------------------------------------------------------------------------------
Wausau, WI SDI TANs & RANs, 2%, 10/27/05                                6,500,000         6,502,466
- ---------------------------------------------------------------------------------------------------
West Allis, WI RB, State Fairgrounds Park Exposition
Center, 2.33% 1                                                         3,555,000         3,555,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, Divine Savior Healthcare, Series 2002 B, 2.32% 1           2,300,000         2,300,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, Group Health Cooperative of South Central
Wisconsin, 2.43% 1                                                      4,200,000         4,200,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, HospiceCare Holdings, Inc., Series 2005, 2.35% 1           1,750,000         1,750,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, Lakeland College, Series 2005, 2.64% 1                    14,050,000        14,050,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, Lindengrove, Inc. Project, Series 2003B, 2.32% 1           7,310,000         7,310,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, Lutheran Social Services, Series 2004, 2.35% 1             3,000,000         3,000,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, Oakwood Village Project, Series 2005, 2.32% 1             10,000,000        10,000,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, Southwest Health Center, Inc., 2.32% 1                     6,340,000         6,340,000
- ---------------------------------------------------------------------------------------------------
WI H&EFA RB, St. Camillus Health Center, Series 2005, 2.35% 1           1,125,000         1,125,000
- ---------------------------------------------------------------------------------------------------
WI Transit RB, Reset Option Certificates II-R Trust, Series
7500, 2.32% 1,2                                                         7,450,000         7,450,000
                                                                                    ---------------
                                                                                         94,617,466

- ---------------------------------------------------------------------------------------------------
WYOMING--0.3%
Campbell Cnty., WY IDV RB, Powder Basin Properties Project,
Series 1996, 2.47% 1                                                    4,430,000         4,430,000
- ---------------------------------------------------------------------------------------------------
OTHER TERRITORIES--6.2%
Floating Rate Trust Receipts, Series 2001 C5, 2.62% 1,2                11,170,000        11,170,000
- ---------------------------------------------------------------------------------------------------
Municipal Securities Pool Trust, SGMSTR Series P-18,
2.43% 1,2                                                              85,050,000        85,050,000
- ---------------------------------------------------------------------------------------------------
Puttable Floating Option Tax Exempt Receipts, Series
PZP-001, 2.43% 1,2                                                      8,950,000         8,950,000
                                                                                    ---------------
                                                                                        105,170,000

- ---------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--0.7%
PR CMWLTH GOUN, Floating Rate Trust Receipts, Series
2005-F2, 2.68% 1,2                                                      8,475,000         8,475,000
- ---------------------------------------------------------------------------------------------------
PR CMWLTH Infrastructure FAU RB, Tender Option Trust
Certificates, Series 2005 Z-6, 2.38% 1,2                                2,900,000         2,900,000
                                                                                    ---------------
                                                                                         11,375,000
                                                                                    ---------------
Total Short-Term Tax-Exempt Obligations
(Cost $1,693,444,731)                                                                 1,693,444,731

- ---------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $1,693,444,731)                            99.6%    1,693,444,731
- ---------------------------------------------------------------------------------------------------
OTHER ASSETS NET OF LIABILITIES                                               0.4         7,094,794
                                                                     ------------------------------

NET ASSETS                                                                  100.0%  $ 1,700,539,525
                                                                     ==============================

16 | CENTENNIAL TAX EXEMPT TRUST

FOOTNOTES TO STATEMENT OF INVESTMENTS

To simplify the listings of securities, abbreviations are used per the table below:

AAMC ABN AMRO Munitops Certificates

BOE Board of Education

CD Commercial Development

CDAU Community Development Authority

CMWLTH Commonwealth

COP Certificates of Participation

DA Dormitory Authority

DAU Development Authority

DFA Development Finance Authority

DFB Development Finance Board

ECFA Educational and Cultural Facilities Authority

ED Economic Development

EDAU Economic Development Authority

EDFA Economic Development Finance Authority

EDLFA Educational Facilities Authority

ETET Eagle Tax-Exempt Trust

FAU Finance Authority

GO General Obligation

GOB General Obligation Bonds

GOLB General Obligation Ltd. Bonds GOUN General Obligation Unlimited Nts.

H&EFA Health and Educational Facilities Authority

H&RA Housing and Redevelopment Authority

HA Hospital Authority

HAU Housing Authority

HCF Health Care Facilities

HFA Housing Finance Agency/Authority

HFAU Health Facilities Authority

HFC Housing Finance Corp.

HFFAU Health Facilities Finance Authority

HOFA Hospital Finance Agency/Authority

IDA Industrial Development Agency

IDAU Industrial Development Authority

IDB Industrial Development Board

IDV Industrial Development

IFPCFA Industrial Facilities and Pollution Control Financing Authority

ISD Independent School District

MERLOTS Municipal Exempt Receipts Liquidity Option Tender

MFA Mortgage Finance Authority

MH Multifamily Housing

MPA Municipal Power Agency

MTAU Metropolitan Transportation Authority

NYC New York City

NYS New York State

PC Pollution Control

PPS Public Power System

RA Redevelopment Agency/Authority

RANs Revenue Anticipation Nts.

RB Revenue Bonds

RED Redevelopment

REF Refunding

RRB Revenue Refunding Bonds

RTA Regional Transportation Authority/Agency

SCDAU Statewide Communities Development Authority

SDI School District

SFM Single Family Mtg.

SGMSTR Societe Generale, NY Branch Municipal Security Trust Receipts

SWD Solid Waste Disposal

TANs Tax Anticipation Nts.

TS Tobacco Settlement

TUAU Turnpike Authority

TWY Thruway/Tollway Authority/Agency

USD Unified School District

WSS Water & Sewer System

YMCA Young Mens Christian Association

1.     Floating or variable rate obligation maturing in more than one year. The interest rate, which is based on specific, or an index of, market interest rates, is subject to change periodically and is the effective rate on June 30, 2005. This instrument has a demand feature which allows, on up to 30 days notice, the recovery of principal at any time, or at specified intervals not exceeding one year.

2.     Represents securities sold under Rule 144A, which are exempt from registration under the Securities Act of 1933, as amended. These securities have been determined to be liquid under guidelines established by the Board of Trustees. These securities amount to $691,232,000 or 40.65% of the Trusts net assets as of June 30, 2005.

3.     Put obligation redeemable at full principal value on the date reported.

4.     Illiquid security. The aggregate value of illiquid securities as of June 30, 2005 was $3,790,000, which represents 0.22% of the Trusts net assets. See Note 4 of Notes to Financial Statements.

5.     Zero coupon bond reflects effective yield on the date of purchase.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.

17 | CENTENNIAL TAX EXEMPT TRUST

STATEMENT OF ASSETS AND LIABILITIES JUNE 30, 2005

ASSETS

Investments, at value (cost $1,693,444,731)  see accompanying statement of investments $ 1,693,444,731                     Cash 3,127,766                     Receivables and other assets:

Investments sold 9,590,675 Interest 8,074,792 Shares of beneficial interest sold 6,114 Other 141,635

_________________

Total assets 1,714,385,713

LIABILITIES

Payables and other liabilities:

Investments purchased 12,602,976 Dividends 948,835 Distribution and service plan fees 114,259 Transfer and shareholder servicing agent fees 42,913 Shareholder communications 39,143 Shares of beneficial interest redeemed 34,086 Trustees' compensation 10,435 Other 53,541

_________________

Total liabilities 13,846,188

NET ASSETS $ 1,700,539,525

_________________

COMPOSITION OF NET ASSETS

Paid-in capital $ 1,700,545,069

Accumulated net realized loss on investments (5,544)

_________________

NET ASSETS  applicable to 1,700,574,704 shares of beneficial interest outstanding $ 1,700,539,525 ===============

NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE $ 1.00

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.

18 | CENTENNIAL TAX EXEMPT TRUST

STATEMENT OF OPERATIONS FOR THE YEAR ENDED JUNE 30, 2005

INVESTMENT INCOME

Interest $ 33,112,641

EXPENSES

Management fees 7,590,892

Service plan fees 3,580,047

Transfer and shareholder servicing agent fees 523,705

Custodian fees and expenses 72,577

Shareholder communications 63,399

Trustees' compensation 11,822

Other 188,134

_________________

Total expenses 12,030,576 Less reduction to custodian expenses (50,247) Less waivers and reimbursements of expenses (354,413)

_________________

Net expenses 11,625,916

NET INVESTMENT INCOME 21,486,725

NET REALIZED GAIN ON INVESTMENTS 96,274

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 21,582,999

_________________

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.

19 | CENTENNIAL TAX EXEMPT TRUST

STATEMENTS OF CHANGES IN NET ASSETS


- -----------------------------------------------------------------------------------------
YEAR ENDED JUNE 30,                                               2005              2004
- -----------------------------------------------------------------------------------------

OPERATIONS
- -----------------------------------------------------------------------------------------
Net investment income                                  $    21,486,725   $     6,492,424
- -----------------------------------------------------------------------------------------
Net realized gain (loss)                                        96,274           (79,810)
                                                       ----------------------------------
Net increase in net assets resulting from operations        21,582,999         6,412,614

- -----------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- -----------------------------------------------------------------------------------------
Dividends from net investment income                       (21,486,725)       (6,492,424)

- -----------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
- -----------------------------------------------------------------------------------------
Net decrease in net assets resulting from
beneficial interest transactions                           (77,683,115)      (98,384,454)

- -----------------------------------------------------------------------------------------
NET ASSETS
- -----------------------------------------------------------------------------------------
Total decrease                                             (77,586,841)      (98,464,264)
- -----------------------------------------------------------------------------------------
Beginning of period                                      1,778,126,366     1,876,590,630
                                                       ----------------------------------
End of period                                          $ 1,700,539,525   $ 1,778,126,366
                                                       ==================================

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.

20 | CENTENNIAL TAX EXEMPT TRUST

FINANCIAL HIGHLIGHTS


YEAR ENDED JUNE 30,                                       2005      2004      2003      2002      2001
- -------------------------------------------------------------------------------------------------------

PER SHARE OPERATING DATA
- -------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                   $  1.00   $  1.00   $  1.00   $  1.00   $  1.00
- -------------------------------------------------------------------------------------------------------
Income from investment operations - net
investment income and net realized gain                    .01 1      -- 2     .01       .01       .03
Dividends and/or distributions to shareholders            (.01)       -- 2    (.01)     (.01)     (.03)
- -------------------------------------------------------------------------------------------------------

Net asset value, end of period                         $  1.00    $ 1.00   $  1.00   $  1.00   $  1.00
                                                       ================================================

- -------------------------------------------------------------------------------------------------------
TOTAL RETURN 3                                            1.21%     0.35%     0.69%     1.17%     3.26%
- -------------------------------------------------------------------------------------------------------

- -------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- -------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)                $ 1,701   $ 1,778   $ 1,877   $ 1,824   $ 1,822
- -------------------------------------------------------------------------------------------------------
Average net assets (in millions)                       $ 1,797   $ 1,851   $ 1,882   $ 1,904   $ 1,779
- -------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income                                     1.20%     0.35%     0.68%     1.16%     3.21%
Total expenses                                            0.67%     0.67%     0.66%     0.69%     0.70%
Expenses after payments and waivers and
reduction to custodian expenses                           0.65%      N/A 5     N/A 5     N/A 5    0.69%

1.     Per share amounts calculated based on the average shares outstanding during the period.

2.     Less than $0.005 per share.

4.     Annualized for periods of less than one full year.

5.     Reduction to custodian expenses less than 0.01%.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.

21 | CENTENNIAL TAX EXEMPT TRUST

NOTES TO FINANCIAL STATEMENTS

1.     SIGNIFICANT ACCOUNTING POLICIES

Centennial Tax Exempt Trust (the Trust) is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trusts investment objective is to seek the maximum short-term interest income exempt from federal income taxes that is consistent with low capital risk and the maintenance of liquidity. The Trusts investment advisor is Centennial Asset Management Corporation (the Manager), a subsidiary of OppenheimerFunds, Inc. (OFI).

        The following is a summary of significant accounting policies consistently followed by the Trust.

SECURITIES VALUATION. The net asset value of shares of the Trust is normally determined twice each day, at 12:00 Noon Eastern time and at 4:00 P.M. Eastern time on each day The New York Stock Exchange (the Exchange) is open for trading. Portfolio securities are valued on the basis of amortized cost, which approximates market value.

FEDERAL TAXES. The Trust intends to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its investment company taxable income to shareholders, therefore, no federal income or excise tax provision is required.

The tax components of capital shown in the table below represent distribution requirements the Trust must satisfy under the income tax regulations, losses the Trust may be able to offset against income and gains realized in future years for federal income tax purposes.

UNDISTRIBUTED NET UNDISTRIBUTED ACCUMULATED LOSS INVESTMENT INCOME LONG-TERM GAINS CARRYFORWARD 1,2

$ 983,793 $ -- $ 5,544

1.     As of June 30, 2005, the Trust had $5,544 of net capital loss carryforwards available to offset future realized capital gains, if any, and thereby reduce future taxable gain distributions. As of June 30, 2005 details of the capital loss carry-forward were as follows:

      EXPIRING

2012 $ 5,544

2.     During the fiscal year June 30, 2005, the Trust utilized $96,274 of capital loss carryforward to offset capital gains realized in that fiscal year. During the fiscal year June 30, 2004, the Trust did not utilize any capital loss carryforwards.

Net investment income (loss) and net realized gain (loss) may differ for financial statement and tax purposes. The character of dividends and distributions made during the fiscal year from net investment income or net realized gains may differ from their ultimate characterization for federal income tax purposes. Also, due to timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or net realized gain was recorded by the Trust.

22 | CENTENNIAL TAX EXEMPT TRUST

The tax character of distributions paid during the years ended June 30, 2005 and June 30, 2004 were as follows:

YEAR ENDED YEAR ENDED JUNE 30, 2005 JUNE 30, 2004

      Distributions paid from:

Exempt-interest dividends $ 21,486,725 $ 6,492,424

TRUSTEES COMPENSATION. The Board of Trustees has adopted a deferred compensation plan for independent trustees that enables trustees to elect to defer receipt of all or a portion of the annual compensation they are entitled to receive from the Trust. For purposes of determining the amount owed to the Trustee under the plan, deferred amounts are treated as though equal dollar amounts had been invested in shares of the Trust or in other Oppenheimer funds selected by the Trustee. The Trust purchases shares of the funds selected for deferral by the Trustee in amounts equal to his or her deemed investment, resulting in a Trust asset equal to the deferred compensation liability. Such assets are included as a component of Other within the asset section of the Statement of Assets and Liabilities. Deferral of trustees fees under the plan will not affect the net assets of the Trust, and will not materially affect the Trusts assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance to the Plan.

DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to shareholders, which are determined in accordance with income tax regulations, are recorded on the ex-dividend date. Income distributions, if any, are declared daily and paid monthly. Capital gain distributions, if any, are declared and paid annually but may be paid at other times to maintain the net asset value per share at $1.00.

CUSTODIAN FEES. Custodian Fees and Expenses in the Statement of Operations may include interest expense incurred by the Trust on any cash overdrafts of its custodian account during the period. Such cash overdrafts may result from the effects of failed trades in portfolio securities and from cash outflows resulting from unanticipated shareholder redemption activity. The Trust pays interest to its custodian on such cash overdrafts at a rate equal to the Federal Funds Rate plus 0.50%. The Reduction to Custodian Expenses line item, if applicable, represents earnings on cash balances maintained by the Trust during the period. Such interest expense and other custodian fees may be paid with these earnings.

SECURITY TRANSACTIONS. Security transactions are recorded on the trade date. Realized gains and losses on securities sold are determined on the basis of identified cost.

OTHER.     The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

23 | CENTENNIAL TAX EXEMPT TRUST

NOTES TO FINANCIAL STATEMENTS CONTINUED

2.     SHARES OF BENEFICIAL INTEREST

The Trust has authorized an unlimited number of no par value shares of beneficial interest. Transactions in shares of beneficial interest were as follows:


                                   YEAR ENDED JUNE 30, 2005           YEAR ENDED JUNE 30, 2004
                                   SHARES            AMOUNT           SHARES            AMOUNT
- -----------------------------------------------------------------------------------------------

Sold                        5,467,251,055   $ 5,467,251,055    5,127,413,724   $ 5,127,413,724
Dividends and/or
distributions reinvested       20,503,644        20,503,644        6,338,791         6,338,791
Redeemed                   (5,565,437,814)   (5,565,437,814)  (5,232,136,969)   (5,232,136,969)
                           --------------------------------------------------------------------
Net decrease                  (77,683,115)  $   (77,683,115)     (98,384,454)  $   (98,384,454)
                           ====================================================================

3.     FEES AND OTHER TRANSACTIONS WITH AFFILIATES

MANAGEMENT FEES. Management fees paid to the Manager were in accordance with the investment advisory agreement with the Trust which provides for a fee at an annual rate of 0.50% of the first $250 million of the Trusts net assets, 0.475% of the next $250 million, 0.45% of the next $250 million, 0.425% of the next $250 million, 0.40% of the next $250 million, 0.375% of the next $250 million, 0.35% of the next $500 million and 0.325% of net assets in excess of $2 billion.

ADMINISTRATION SERVICES. The Trust pays the Manager a fee of $1,500 per year for preparing and filing the Trust's tax returns.

TRANSFER AGENT FEES. Shareholder Services, Inc. (SSI) acts as the transfer and shareholder servicing agent for the Trust and for other registered investment companies. The Trust pays SSI a per account fee. For the year ended June 30, 2005, the Trust paid $524,110 to SSI for services to the Trust.

SERVICE PLAN (12b-1) FEES. The Trust has adopted a service plan. It reimburses Centennial Asset Management Corporation, the Distributor, for a portion of its costs incurred for services provided to accounts that hold shares of the Trust. Reimbursement is made quarterly, or monthly depending on asset size, at an annual rate of up to 0.20% of the average annual net assets of the Trust. The Distributor currently uses all of those fees to pay dealers, brokers, banks and other financial institutions quarterly for providing personal services and maintenance of accounts of their customers that hold shares of the Trust. Fees incurred by the Trust under the Plan are detailed in the Statement of Operations.

WAIVERS AND REIMBURSEMENTS OF EXPENSES. Under the investment advisory agreement, when the value of the Trusts net assets is less than $1.5 billion, the annual fee payable to the Manager shall be reduced by $100,000 based on average net assets computed daily and paid monthly at the annual rates. However, the annual fee cannot be less than $0.

        During the year ended June 30, 2005, the Manager voluntarily paid a one-time reimbursement of Trust expenses amounting to $354,413.

24 | CENTENNIAL TAX EXEMPT TRUST

SSI has voluntarily agreed to limit transfer and shareholder servicing agent fees to 0.35% of average annual net assets of the Trust. This undertaking may be amended or withdrawn at any time.

4.     ILLIQUID SECURITIES

As of June 30, 2005, investments in securities included issues that are illiquid. A security may be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Trust will not invest more than 10% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid securities. Securities that are illiquid are marked with the applicable footnote on the Statement of Investments.

25 | CENTENNIAL TAX EXEMPT TRUST








                                  Appendix A

                      Description of Securities Ratings

Below is a description of the two highest rating categories for Short Term
Debt and Long Term Debt by the "Nationally-Recognized Statistical Rating
Organizations" which the Manager evaluates in purchasing securities on behalf
of the Trust.  The ratings descriptions are based on information supplied by
the ratings organizations to subscribers.

SHORT TERM DEBT RATINGS.

Moody's Investors Service, Inc.  ("Moody's")

The following rating designations for commercial paper (defined by Moody's as
promissory obligations not having original maturity in excess of nine
months), are judged by Moody's to be investment grade, and indicate the
relative repayment capacity of rated issuers:

Prime-1: Superior capacity for repayment.  Capacity will normally be
evidenced by the following characteristics: (a) leading market positions in
well-established industries; (b) high rates of return on funds employed; (c)
conservative capitalization structure with moderate reliance on debt and
ample asset protection; (d) broad margins in earning coverage of fixed
financial charges and high internal cash generation; and (e) well-established
access to a range of financial markets and assured sources of alternate
liquidity.

Prime-2: Strong capacity for repayment.  This will normally be evidenced by
many of the characteristics cited above but to a lesser degree.  Earnings
trends and coverage ratios, while sound, will be more subject to variation.
Capitalization characteristics, while still appropriate, may be more affected
by external conditions.  Ample alternate liquidity is maintained.

      Moody's ratings for state and municipal short-term obligations are
designated "Moody's Investment Grade" ("MIG"). Short-term notes which have
demand features may also be designated as "VMIG."  These rating categories
are as follows:

MIG 1/VMIG 1: Denotes superior credit quality. Excellent protection is
afforded by established cash flows, highly reliable liquidity support or
demonstrated broad-based access to the market for refinancing.

MIG 2/VMIG 2: Denotes strong credit quality. Margins of protection are ample
although not as large as in the preceding group.

Standard & Poor's Ratings Services, a division of The McGraw-Hill  Companies,
Inc. ("Standard and Poor's")

The following ratings by Standard and Poor's for commercial paper (defined by
Standard and Poor's as debt having an original maturity of no more than 365
days) assess the likelihood of payment:






A-1: Obligation is rated in the highest category. The obligor's capacity to
meet its financial commitment on the obligation is strong. Within this
category, a plus (+) sign designation indicates the obligor's capacity to
meet its financial obligation is extremely strong.

A-2: Obligation is somewhat more susceptible to the adverse effects of
changes in circumstances and economic conditions than obligations in higher
rating categories. However, the obligor's capacity to meet its financial
commitment on the obligation is satisfactory.

Standard and Poor's ratings for Municipal Notes due in 3 years or less:

SP-1: Strong capacity to pay principal and interest. An issue determined to
possess a very strong capacity to pay debt service is given a (+) designation.

SP-2: Satisfactory capacity to pay principal and interest, with some
vulnerability to adverse financial and economic changes over the term of the
notes.

Standard and Poor's assigns "dual ratings" to all municipal debt issues that
have a demand or double feature as part of their provisions.  The first
rating addresses the likelihood of repayment of principal and interest as
due, and the second rating addresses only the demand feature.  With
short-term demand debt, Standard and Poor's note rating symbols are used with
the commercial paper symbols (for example, "SP-1+/A-1+").


Fitch, Inc. ("Fitch")

Fitch assigns the following short-term ratings to debt obligations that are
payable on demand or have original maturities of generally up to three years,
including commercial paper, certificates of deposit, medium-term notes, and
municipal and investment notes:

F1: Highest credit quality. Strongest capacity for timely payment of
financial commitments. May have an added "+" to denote any exceptionally
strong credit feature.

F2: Good credit quality. A satisfactory capacity for timely payment of
financial commitments, but the margin of safety is not as great as in the
case of higher ratings.

Dominion Bond Rating Service Limited ("DBRS")
- ------------------------------------------------------------------------------

R-1: Short term debt rated "R-1 (high)" is of the highest credit quality,  and
indicates  an entity which  possesses  unquestioned  ability to repay  current
liabilities  as they  fall  due.  Entities  rated  in this  category  normally
maintain   strong   liquidity   positions,   conservative   debt   levels  and
profitability  which is both stable and above average.  Companies achieving an
"R-1  (high)"  rating are  normally  leaders in  structurally  sound  industry
segments with proven track records,  sustainable  positive  future results and
no  substantial   qualifying  negative  factors.  Given  the  extremely  tough
definition  which DBRS has established  for an "R-1 (high)",  few entities are
strong enough to achieve this rating.  Short term debt rated "R-1 (middle)" is
of  superior  credit  quality  and, in most  cases,  ratings in this  category
differ from "R-1 (high)"  credits to only a small degree.  Given the extremely
tough  definition  which  DBRS has for the "R-1  (high)"  category  (which few
companies  are  able to  achieve),  entities  rated  "R-1  (middle)"  are also
considered strong credits which typically  exemplify above average strength in
key areas of  consideration  for debt  protection.  Short term debt rated "R-1
(low)" is of  satisfactory  credit quality.  The overall  strength and outlook
for key liquidity,  debt and profitability ratios is not normally as favorable
as  with  higher  rating  categories,   but  these  considerations  are  still
respectable.  Any  qualifying  negative  factors  which  exist are  considered
manageable,  and the  entity  is  normally  of  sufficient  size to have  some
influence in its industry.

R-2:  Short term debt rated  "R-2" is of  adequate  credit  quality and within
the three subset grades  (high,  middle,  low),  debt  protection  ranges from
having reasonable  ability for timely repayment to a level which is considered
only just  adequate.  The  liquidity  and debt ratios of entities in the "R-2"
classification are not as strong as those in the "R-1" category,  and the past
and future  trend may suggest  some risk of  maintaining  the  strength of key
ratios  in  these  areas.   Alternative   sources  of  liquidity  support  are
considered  satisfactory;  however,  even the strongest liquidity support will
not improve the commercial paper rating of the issuer.  The size of the entity
may restrict  its  flexibility,  and its relative  position in the industry is
not typically as strong as the "R-1 credit".  Profitability  trends,  past and
future,  may be less  favorable,  earnings not as stable,  and there are often
negative  qualifying  factors  present  which  could also make the entity more
vulnerable to adverse changes in financial and economic conditions.

LONG TERM DEBT RATINGS.

These ratings are relevant for securities purchased by the Trust with a
remaining maturity of 397 days or less, or for rating issuers of short-term
obligations.


Moody's

Bonds (including municipal bonds) are rated as follows:

Aaa: Judged to be the best quality. They carry the smallest degree of
investment risk and are generally referred to as "gilt edged."  Interest
payments are protected by a large or by an exceptionally stable margin and
principal is secure.  While the various protective elements are likely to
change, the changes that can be expected are most unlikely to impair the
fundamentally strong position of such issues.

Aa: Judged to be of high quality by all standards. Together with the "Aaa"
group, they comprise what are generally known as high-grade bonds.  They are
rated lower than the best bonds because margins of protection may not be as
large as with "Aaa" securities or fluctuation of protective elements may be
of greater amplitude or there may be other elements present which make the
long-term risk appear somewhat larger than that of "Aaa" securities.

      Moody's applies numerical modifiers "1", "2" and "3" in its "Aa" rating
classification. The modifier "1" indicates that the obligation ranks in the
higher end of its generic rating category; the modifier "2" indicates a
mid-range ranking; and the modifier "3" indicates a ranking in the lower end
of that generic rating category.


Standard and Poor's

Bonds (including municipal bonds maturing beyond 3 years) are rated as
follows:

AAA: Bonds rated "AAA" have the highest rating assigned by Standard & Poor's.
The obligor's capacity to meet its financial commitment on the obligation is
extremely strong.

AA: Bonds rated "AA" differ from the highest rated obligations only in small
degree. A strong capacity to meet its financial commitment on the obligation
is very strong.


Fitch

AAA: Highest Credit Quality. "AAA" ratings denote the lowest expectation of
credit risk. They are assigned only in the case of exceptionally strong
capacity for timely payment of financial commitments. This capacity is highly
unlikely to be adversely affected by foreseeable events.

AA: Very High Credit Quality. "AA" ratings denote a very low expectation of
credit risk. They indicate a very strong capacity for timely payment of
financial commitments. This capacity is not significantly vulnerable to
foreseeable events.

      Because bonds rated in the "AAA" and "AA" categories are not
significantly vulnerable to foreseeable future developments, short-term debt
of these issuers is generally rated "F-1+."











B-1

                                  Appendix B

                   MUNICIPAL BOND INDUSTRY CLASSIFICATIONS

Adult Living Facilities
Airlines
Automobiles
Chemicals
Corporate Backed
Education
Electric Utilities
Food Products
Gas Utilities
General Obligation
Higher Education
Highways/Railways
Hospital/Healthcare
Hotels, Restaurants & Leisure
Manufacturing, Durable Goods
Manufacturing, Non Durable Goods
Marine/Aviation Facilities
Metals & Mining
Multi-Family Housing
Municipal Leases
Non Profit Organization
Oil & Gas
Paper, Containers & Packaging
Parking Fee Revenue
Pollution Control
Real Estate
Resource Recovery
Sales Tax Revenue
Sewer Utilities
Single Family Housing
Special Assessment
Special Tax
Sports Facility Revenue
Student Loans
Telephone Utilities
Tobacco
U.S. Government - Full Faith & Credit
U.S. Government Agencies-GSEs
Water Utilities










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Centennial Tax Exempt Trust
- ------------------------------------------------------------------------------

Investment Advisor and Distributor
Centennial Asset Management Corporation
6803 South Tucson Way
Centennial, Colorado 80112

Sub-Distributor
OppenheimerFunds Distributor, Inc.
P.O. Box 5254
Denver, Colorado 80217-5254

Transfer Agent
Shareholder Services, Inc.
P.O. Box 5143
Denver, Colorado 80217-5143
1.800.525.9310

Custodian of Portfolio Securities
Citibank, N.A.
111 Wall Street
New York, New York 10005

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
555 Seventeenth Street
Denver, Colorado 80202

Counsel to the Trust
Myer, Swanson, Adams & Wolf, P.C.
1600 Broadway
Denver, Colorado 80202

Counsel to the Independent Trustees
Bell, Boyd & Lloyd, LLC
Three First National Plaza
70 West Madison Street, Suite 3300
Chicago, Illinois 60602-4207

PX0160.01.1005



(1). In  accordance  with Rule 12b-1 of the  Investment  Company  Act,  the term
"Independent  Trustees" in this  Statement of Additional  Information  refers to
those Trustees who are not "interested persons" of the Trust and who do not have
any direct or indirect  financial  interest in the  operation of the plan or any
agreement under the plan.

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