OPPENHEIMER VARIABLE ACCOUNT FUNDS
                     Supplement dated August 4, 1998 to the
                          Prospectus dated May 1, 1998

The Prospectus is changed as follows:

1.    This  Supplement  replaces all previous  supplements  to the May 1, 1998
Prospectus of
Oppenheimer Variable Account Funds.

2. The third sentence under the caption "Overview of the Funds - Who Manages the
Funds?" is revised:

     The portfolio managers are as follows:  

Money Fund,  Arthur J.  Zimmer;  High Income Fund,  Thomas P. Reedy;  Bond Fund,
Multiple Strategies Fund and Strategic Bond Fund, David Negri (joined by Richard
Rubinstein  for Multiple  Strategies  Fund, by John Kowalik for Bond Fund and by
Arthur P.  Steinmetz  for  Strategic  Bond  Fund);  Growth  Fund,  Jane  Putnam;
Aggressive Growth Fund, Bruce L. Bartlett; Small Cap Growth Fund, Jay W. Tracey,
III and Alan Gilston;  Global Securities Fund, William L. Wilby; Growth & Income
Fund, Michael S. Levine.

3. The first  sentence  under the  caption "  When-Issued  or  Delayed  Delivery
Transactions" is replaced with the following:

      Each  Fund  may  purchase  securities  on a  "when-issued"  basis  and may
      purchase or sell securities on a "delayed delivery" basis.

4. The first  paragraph  in the section  captioned  "How the Funds are Managed -
Portfolio Managers" is replaced by the following:

      The portfolio manager of Money Fund is Arthur J. Zimmer. In June, 1998, he
      became the person principally responsible for the day-to-day management of
      that  Fund's  portfolio.  During the past five  years Mr.  Zimmer has also
      served as an  officer of other  Oppenheimer  funds,  and was Money  Fund's
      portfolio manager from October, 1990 to April, 1996.

5. The third  paragraph in the section  captioned  "How the Funds Are Managed --
Portfolio Managers" is replaced by the following:


                                                                     (continued)









            The portfolio  manager of Bond Fund,  Multiple  Strategies  Fund and
            Strategic  Bond Fund is David P. Negri,  joined by John  Kowalik for
            Bond Fund, by Richard Rubinstein for Multiple Strategies Fund and by
            Arthur P.  Steinmetz for Strategic  Bond Fund.  They are the persons
            responsible  for the  day-to-day  management  of those  funds  since
            January 1990 (July 1998 for Mr. Kowalik),  July 1989 (April 1991 for
            Mr.  Rubinstein)  and May 1993,  respectively.  During the past five
            years,  Messrs.  Steinmetz and Negri have also served as officers of
            other Oppenheimer  funds. Prior to July, 1998, Mr. Kowalik served as
            Managing   Director  and  Senior  Portfolio  Manager  at  Prudential
            Investments Fixed Income Group.

      6. The first sentence of the last paragraph in the section  captioned "How
the Funds are Managed - Portfolio Managers" is replaced with the following:

Messrs.  Bartlett,  Levine,  Reedy,  Tracey,  Gilston  and Ms.  Putnam  are Vice
Presidents of the Manager, and Messrs.  Kowalik, Negri,  Rubinstein,  Steinmetz,
Wilby and Zimmer are Senior Vice Presidents of the Manager.




August 4, 1998                                                 PSO600.013.0598




                       OPPENHEIMER VARIABLE ACCOUNT FUNDS
                    Supplement   dated  August  4,  1998  to  the  Statement  of
             Additional Information dated May 1, 1998

The Statement of Additional Information is changed as follows:

1. The biographical  information  under the caption "How the Funds are Managed -
Trustees  and  Officers  of the Trust" on page 26 is revised  to  disclose  that
Michael S. Levine is Vice President of the Manager (since June,  1998) and David
P. Negri is Senior Vice President of the Manager (since May, 1998).

2. The following biographical information is added to the section captioned "How
the Fund is Managed - Trustees and Officers of the Trust" on page 27 immediately
following the information
on William L. Wilby:

John S. Kowalik,  Vice President;  Bond Fund Portfolio  Manager;  Age: 41 Senior
Vice President of the Manager (since July 1998); an officer of other Oppenheimer
funds;  formerly  Managing  Director and Senior Portfolio  Manager at Prudential
Global Advisors (1989- 1998).

Arthur J. Zimmer, Vice President;  Money Fund Portfolio Manager;  Age: 52 Senior
Vice  President of the Manager  (since June 1997);  Vice President of Centennial
(since  June  1997);  an  officer  of other  Oppenheimer  funds;  formerly  Vice
President of the Manager (October
1990-June 1997).

3 The references to five of the Funds and their respective Portfolio Managers at
the beginning of the first sentence in the paragraph  captioned "The Manager and
Its  Affiliates - Portfolio  Management"  on page 30 is revised as follows:  The
Portfolio  Managers of the Funds are as follows:  Money Fund,  Arthur J. Zimmer;
High Income  Fund,  Thomas P. Reedy;  Bond Fund,  Multiple  Strategies  Fund and
Strategic  Bond Fund,  David Negri  (joined by John S. Kowalik for Bond Fund, by
Richard Rubinstein for Multiple  Strategies Fund, and by Arthur P. Steinmetz for
Strategic Bond Fund )...

4. All references in the Statement of Additional  Information to Dorothy Warmack
are deleted as of June 15, 1998.

5. The list of Corporate  Industry  Classifications  (Appendix A) on page A-1 is
modified by including the following new classifications: Asset Backed.



August 4, 1998                                                      PXO600.009