N-30D 1 ra0297_6454vef.txt RA0297_6454VEF December 31, 2002 -------------------------------------------------------------------------------- Oppenheimer Annual Report Main Street Small Cap Fund(R)/VA ---------- Management A Series of Oppenheimer Variable Account Funds Commentaries -------------------------------------------------------------------------------- Performance Update Investment Strategy Discussion Financial Statements [GRAPHIC OMITTED] [LOGO] OppenheimerFunds(R) The Right Way to Invest OPPENHEIMER MAIN STREET SMALL CAP FUND(R)/VA ------------------------------------------------------------------------------- Objective Oppenheimer Main Street Small Cap Fund(R)/VA, a series of Oppenheimer Variable Account Funds, seeks capital appreciation. ------------------------------------------------------------------------------- Narrative by Charles Albers and Mark Zavanelli, Portfolio Managers We use a quantitative approach to managing the Oppenheimer Main Street Small Cap Fund/VA. Quantitative investing may seem a bit unconventional, but we use it for the simple reason that it works. Our goal is to add relative value to an investor's allocation to small cap stocks and to be better than other alternatives. The essence of a quantitative process for us is to research and understand repeatable patterns, anomalies and other signals in the market that we believe can give us an edge or advantage. We look at as many as 60 factors like this to try to develop a consistent relative return advantage. Equities were clearly not the place to be in 2002. Nevertheless, we were able to do what we set out to do, beat our benchmark, the Russell 2000(R) Index, and provide our shareholders with an alternative to the average small cap mutual fund and passive index portfolios. Although we were disappointed that the Fund's Non-Service share's absolute performance was negative for the year (-15.75% as of 12/31/02) 1, we were pleased with the Fund's returns relative to its benchmark. The Fund's benchmark, the Russell 2000(R) Index lost (-20.48% as of 12/31/02). 2 2002 was a year in which the majority of U.S. stocks lost value. However, within that framework you could outperform the market by avoiding a few narrow clusters of really poor-performing stocks. Most of these were in technology and telecomm sectors, and the more speculative areas of healthcare, like biotech stocks. Our good relative returns were the result of limiting our exposure to the worst performing areas of the market. Our models did an excellent job of identifying the really bad stocks from the not so bad ones and it made a significant difference to relative results. We were able to avoid the worst performing areas because our stock selection models, which are the foundation of our investment process, directed us away from these areas. The models also help with our approach to portfolio construction. Our portfolio construction process involves making investments in many companies, thereby limiting the individual weights of each company in the Fund and helping to avoid concentrated positions in any particular sectors or industries. We seek to add a small amount of performance from a large number of stocks, rather than seeking to add large amounts of performance from a small number of stocks, which normally involves taking risks that are too large in our opinion. Our research strongly suggests that the market tends to perform well after hitting the sort of multi-year lows we hit last summer. So while we may see additional ups and downs as the economic recovery takes hold, history suggests that stocks are likely to post better than average results over the next 5 years. We have a quantitative model, which estimates the relative return prospects of large cap stocks versus small and mid cap stocks. This model has consistently tended to like the prospects for small stocks relative to large stocks over the last few years and it has been right, as small cap stocks have outperformed large cap stocks. Recently, this model has been suggesting that the outlook for small-cap stocks relative to large caps remains favorable. Harnessing the growth power of small-cap stocks is what makes Oppenheimer Main Street Small Cap Fund/VA an important part of The Right Way to Invest. 1. Includes changes in net asset value per share and does not include the charges associated with the separate account products that offer this Fund. Such performance is shown for Non-Service shares and would have been lower if such charges were taken into account. 2. The Fund's performance is compared to the Russell 2000(R) Index (For more information on the Fund's benchmark, please see "Comparing the Fund's Performance to the Market" on page 3). In reviewing performance, please remember that past performance cannot guarantee future results. Because of ongoing market volatility, the Fund's performance may be subject to fluctuations, and current performance may be less than the results shown. The Fund's portfolio is subject to change. The Fund's investment strategy and focus can change over time. The mention of specific fund holdings does not constitute a recommendation by OppenheimerFunds, Inc. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. 2 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA FUND PERFORMANCE Management's Discussion of Fund Performance. For the fiscal year ended 12/31/02, Oppenheimer Main Street Small Cap Fund/VA produced negative results, but outperformed its benchmark, the Russell 2000(R) Index. In an extremely tough investing environment, the Fund's models helped it to avoid some of the worst performing areas of the stock market. Limiting the Fund's exposure to some of these poor performing sectors, including, technology and telecom, benefited relative performance. The models were also helpful in helping the Fund's management team construct the portfolio. By allocating small percentages to each investment, the Fund was able to limit its risk exposure to one single stock, which was beneficial especially over the last year. The Fund's holdings, strategy and management are subject to change. Comparing the Fund's Performance to the Market. The graphs that follow shows the performance of a hypothetical $10,000 investment in each share class of the Fund held until December 31, 2002. In the case of non-service shares, performance is measured from inception of the class on May 1, 1998. In the case of service shares, performance is measured from inception of the class on July 16, 2001. Performance information does not reflect charges that apply to separate accounts investing in the Fund. If these charges were taken into account, performance would be lower. The graphs assume that all dividends and capital gains distributions were reinvested in additional shares. The Fund's performance is compared to the performance of the Russell 2000(R) Index, an unmanaged index of equity securities of small capitalization companies that is a measure of the small company market. Index performance reflects the reinvestment of income but does not consider the effect of transaction costs. The Fund's performance reflects the effects of the Fund's business and operating expenses. While index comparisons may be useful to provide a benchmark for the Fund's performance, it must be noted that the Fund's investments are not limited to the investments in the index. 3 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA FUND PERFORMANCE Non-Service shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE GRAPH] Oppenheimer Main Street Small Russell 2000(R) Cap Fund/VA (Non-Service) Index 05/01/1998 10,000 10,000 06/30/1998 9,560 9,481 09/30/1998 8,400 7,571 12/31/1998 9,600 8,806 03/31/1999 8,880 8,328 06/30/1999 9,310 9,624 09/30/1999 9,440 9,015 12/31/1999 14,070 10,678 03/31/2000 15,364 11,434 06/30/2000 13,178 11,002 09/30/2000 13,468 11,124 12/31/2000 11,490 10,355 03/31/2001 9,376 9,682 06/30/2001 11,334 11,065 09/30/2001 9,666 8,765 12/31/2001 11,448 10,613 03/31/2002 11,821 11,036 06/30/2002 11,490 10,114 09/30/2002 9,563 7,949 12/31/2002 9,645 8,439 Average Annual Total Returns of Non-Service shares of the Fund at 12/31/02 1-Year -15.75% Since Inception -0.77% Service shares Comparison of Change in Value of $10,000 Hypothetical Investments in: [LINE GRAPH] Oppenheimer Main Street Russell 2000(R) Small Cap Fund/VA (Service) Index 07/16/2001 10,000 10,000 09/30/2001 8,784 8,374 12/31/2001 10,415 10,140 03/31/2002 10,763 10,544 06/30/2002 10,452 9,663 09/30/2002 8,690 7,595 12/31/2002 8,756 8,063 Average Annual Total Returns of Service shares of the Fund at 12/31/02 1-Year -15.93% Since Inception -8.71% Because of ongoing market volatility, the Fund's performance has been subject to fluctuations and current performance may be less than the results shown. For updates on the Fund's performance, please call us at 1.800.981.2871. Past performance is not predictive of future performance. The inception dates of the Fund were 5/1/98 for the Non-Service shares and 7/16/2001 for its Service shares. The performance information in the graphs for the Russell 2000(R) Index begins on 4/30/98 in the first graph and on 7/31/01 for the second graph. Total returns include changes in net asset value per share and does not include the charges associated with the separate account products which offer this Fund. Such performance would have been lower if such charges were taken into account. Total returns and the ending account value in the graphs show change in share value and include reinvestment of all dividends and capital gains distributions. Graphs are not drawn to same scale. An explanation of the calculation of the performance is in the Statement of Additional Information. 4 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Financial Statements Pages 6-29 5 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS December 31, 2002 Market Value Shares See Note 1 ---------------------------------------------------------------- Common Stocks--98.3% ---------------------------------------------------------------- Consumer Discretionary--18.8% ---------------------------------------------------------------- Auto Components--1.5% Aftermarket Technology Corp. 1 1,400 $ 20,300 ---------------------------------------------------------------- American Axle & Manufacturing Holdings, Inc. 2,100 49,182 ---------------------------------------------------------------- ArvinMeritor, Inc. 3,400 56,678 ---------------------------------------------------------------- Autoliv, Inc. 400 8,372 ---------------------------------------------------------------- Borg-Warner Automotive, Inc. 700 35,294 ---------------------------------------------------------------- Collins & Aikman Corp. 1 700 3,115 ---------------------------------------------------------------- Cooper Tire & Rubber Co. 1,100 16,874 ---------------------------------------------------------------- Dana Corp. 1,200 14,112 ---------------------------------------------------------------- Dura Automotive Systems, Inc. 1 2,800 28,112 ---------------------------------------------------------------- Goodyear Tire & Rubber Co. 4,100 27,921 ---------------------------------------------------------------- Intermet Corp. 700 2,940 ---------------------------------------------------------------- Keystone Automotive Industries, Inc. 1 1,100 16,522 ---------------------------------------------------------------- Lear Corp. 1 500 16,640 ---------------------------------------------------------------- Raytech Corp. 1 1,700 9,690 ---------------------------------------------------------------- Spartan Motors, Inc. 2,300 26,174 ---------------------------------------------------------------- Stoneridge, Inc. 1 800 9,520 ---------------------------------------------------------------- Strattec Security Corp. 1 600 28,764 ---------------------------------------------------------------- Tenneco Automotive, Inc. 1 1,800 7,272 ---------------------------------------------------------------- Tower Automotive, Inc. 1 1,900 8,550 ----------- 386,032 ---------------------------------------------------------------- Automobiles--0.4% Coachmen Industries, Inc. 600 9,480 ---------------------------------------------------------------- Monaco Coach Corp. 1 2,000 33,100 ---------------------------------------------------------------- Thor Industries, Inc. 800 27,544 ---------------------------------------------------------------- Winnebago Industries, Inc. 1,000 39,230 ----------- 109,354 ---------------------------------------------------------------- Distributors--0.0% Brightpoint, Inc. 1 600 4,741 ---------------------------------------------------------------- Hotels, Restaurants & Leisure--3.0% Alliance Gaming Corp. 1 3,500 59,605 ---------------------------------------------------------------- Ameristar Casinos, Inc. 1 1,500 21,150 ---------------------------------------------------------------- Applebee's International, Inc. 450 10,436 ---------------------------------------------------------------- Aztar Corp. 1 2,900 41,412 ---------------------------------------------------------------- Bob Evans Farms, Inc. 200 4,670 ---------------------------------------------------------------- Boyd Gaming Corp. 1 2,400 33,720 ---------------------------------------------------------------- CBRL Group, Inc. 200 6,026 ---------------------------------------------------------------- Checkers Drive-In Restaurants, Inc. 1 1,000 6,260 ---------------------------------------------------------------- Chicago Pizza & Brewery, Inc. 1 1,700 11,730 ---------------------------------------------------------------- Choice Hotels International, Inc. 1 900 20,430 ---------------------------------------------------------------- Churchill Downs, Inc. 100 3,818 ---------------------------------------------------------------- CKE Restaurants, Inc. 1 3,300 14,190 Market Value Shares See Note 1 ---------------------------------------------------------------- Hotels, Restaurants & Leisure Continued Dave & Buster's, Inc. 1 600 $ 5,190 ---------------------------------------------------------------- Dover Downs Gaming & Entertainment, Inc. 1,000 9,090 ---------------------------------------------------------------- Gaylord Entertainment Co., Cl. A 1 200 4,120 ---------------------------------------------------------------- GTech Holdings Corp. 1 2,100 58,506 ---------------------------------------------------------------- Hollywood Casino Corp., Cl. A 1 400 4,912 ---------------------------------------------------------------- Isle of Capri Casinos, Inc. 1 400 5,296 ---------------------------------------------------------------- Lone Star Steakhouse & Saloon, Inc. 2,400 46,416 ---------------------------------------------------------------- Mandalay Resort Group 1 700 21,427 ---------------------------------------------------------------- Marcus Corp. (The) 800 11,360 ---------------------------------------------------------------- Multimedia Games, Inc. 1 900 24,714 ---------------------------------------------------------------- Navigant International, Inc. 1 700 8,631 ---------------------------------------------------------------- P.F. Chang's China Bistro, Inc. 1 1,600 58,080 ---------------------------------------------------------------- Panera Bread Co., Cl. A 1 200 6,962 ---------------------------------------------------------------- Penn National Gaming, Inc. 1 1,800 28,548 ---------------------------------------------------------------- Pinnacle Entertainment, Inc. 1 100 693 ---------------------------------------------------------------- Rare Hospitality International, Inc. 1 600 16,572 ---------------------------------------------------------------- Ruby Tuesday, Inc. 1,700 29,393 ---------------------------------------------------------------- Ryan's Family Steak Houses, Inc. 1 2,500 28,375 ---------------------------------------------------------------- Scientific Games Corp., Cl. A 1 5,200 37,752 ---------------------------------------------------------------- Shuffle Master, Inc. 1 2,100 40,131 ---------------------------------------------------------------- Six Flags, Inc. 1 7,400 42,254 ---------------------------------------------------------------- Sonic Corp. 1 200 4,098 ---------------------------------------------------------------- Steak n Shake Co. (The) 1 2,000 20,000 ---------------------------------------------------------------- Total Entertainment Restaurant Corp. 1 1,300 10,920 ----------- 756,887 ---------------------------------------------------------------- Household Durables--2.5% American Greetings Corp., Cl. A 1 4,100 64,780 ---------------------------------------------------------------- Applica, Inc. 1 500 2,500 ---------------------------------------------------------------- Beazer Homes USA, Inc. 1 200 12,120 ---------------------------------------------------------------- CSS Industries, Inc. 1 700 23,170 ---------------------------------------------------------------- Department 56, Inc. 1 2,900 37,410 ---------------------------------------------------------------- Dominion Homes, Inc. 1 500 7,125 ---------------------------------------------------------------- Foamex International, Inc. 1 1,661 5,249 ---------------------------------------------------------------- Harman International Industries, Inc. 1,100 65,450 ---------------------------------------------------------------- Helen of Troy Ltd. 1 3,100 36,084 ---------------------------------------------------------------- Hovnanian Enterprises, Inc., Cl. A 1 1,600 50,720 ---------------------------------------------------------------- Kimball International, Inc., Cl. B 1,600 22,800 ---------------------------------------------------------------- Libbey, Inc. 100 2,600 ---------------------------------------------------------------- M.D.C. Holdings, Inc. 190 7,269 ---------------------------------------------------------------- M/I Schottenstein Homes, Inc. 500 13,900 ---------------------------------------------------------------- Maytag Corp. 1,300 37,050 ---------------------------------------------------------------- Meritage Corp. 1 1,300 43,745 ---------------------------------------------------------------- Movado Group, Inc. 500 9,405 ---------------------------------------------------------------- Oneida Ltd. 1,400 15,442 ---------------------------------------------------------------- 6 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Market Value Shares See Note 1 ---------------------------------------------------------------- Household Durables Continued Ryland Group, Inc. (The) 1,100 $ 36,685 ---------------------------------------------------------------- Salton, Inc. 1 100 962 ---------------------------------------------------------------- Skyline Corp. 300 8,850 ---------------------------------------------------------------- Stanley Furniture Co., Inc. 1 400 9,300 ---------------------------------------------------------------- Toll Brothers, Inc. 1 300 6,060 ---------------------------------------------------------------- Toro Co. (The) 1,200 76,680 ---------------------------------------------------------------- WCI Communities, Inc. 1 400 4,080 ---------------------------------------------------------------- William Lyon Homes, Inc. 1 300 6,549 ---------------------------------------------------------------- Yankee Candle, Inc. (The) 1 1,900 30,400 ----------- 636,385 ---------------------------------------------------------------- Internet & Catalog Retail--0.4% 1-800-FLOWERS.com, Inc. 1 3,200 20,000 ---------------------------------------------------------------- FTD, Inc., Cl. A 1 100 1,593 ---------------------------------------------------------------- GSI Commerce, Inc. 1 200 730 ---------------------------------------------------------------- J. Jill Group, Inc. 1 2,400 33,552 ---------------------------------------------------------------- Stamps.com, Inc. 1 1,600 7,472 ---------------------------------------------------------------- ValueVision Media, Inc., Cl. A 1 2,500 37,450 ----------- 100,797 ---------------------------------------------------------------- Leisure Equipment & Products--1.1% Action Performance Cos., Inc. 600 11,400 ---------------------------------------------------------------- Brunswick Corp. 1,900 37,734 ---------------------------------------------------------------- Callaway Golf Co. 4,500 59,625 ---------------------------------------------------------------- Concord Camera Corp. 1 2,300 12,489 ---------------------------------------------------------------- MarineMax, Inc. 1 1,100 12,991 ---------------------------------------------------------------- Marvel Enterprises, Inc. 1 6,400 57,472 ---------------------------------------------------------------- Racing Champions Ertl Corp. 1 2,200 30,030 ---------------------------------------------------------------- SCP Pool Corp. 1 1,050 30,660 ---------------------------------------------------------------- Singing Machine Co., Inc. (The) 1 100 900 ---------------------------------------------------------------- Sturm, Ruger & Co., Inc. 1,800 17,226 ----------- 270,527 ---------------------------------------------------------------- Media--2.4% 4Kids Entertainment, Inc. 1 1,600 35,328 ---------------------------------------------------------------- Acme Communications, Inc. 1 100 797 ---------------------------------------------------------------- AMC Entertainment, Inc. 1 1,600 14,160 ---------------------------------------------------------------- APAC Teleservices, Inc. 1 4,900 11,466 ---------------------------------------------------------------- Belo Corp., Cl. A 200 4,264 ---------------------------------------------------------------- Emmis Communications Corp., Cl. A 1 600 12,498 ---------------------------------------------------------------- Grey Global Group, Inc. 100 61,110 ---------------------------------------------------------------- Hearst-Argyle Television, Inc. 1 1,100 26,521 ---------------------------------------------------------------- Hollinger International, Inc. 1,300 13,208 ---------------------------------------------------------------- Insight Communications Co., Inc. 1 4,200 51,996 ---------------------------------------------------------------- Journal Register Co. 1 1,900 33,782 ---------------------------------------------------------------- Lin TV Corp. 1 300 7,305 ---------------------------------------------------------------- LodgeNet Entertainment Corp. 1 100 1,068 Market Value Shares See Note 1 ---------------------------------------------------------------- Media Continued McClatchy Co., Cl. A 200 $ 11,346 ---------------------------------------------------------------- Mediacom Communications Corp. 1 5,100 44,931 ---------------------------------------------------------------- Paxson Communications Corp., Cl. A 1 100 206 ---------------------------------------------------------------- Pixar, Inc. 1 1,000 52,990 ---------------------------------------------------------------- PRIMEDIA, Inc. 1 8,300 17,098 ---------------------------------------------------------------- Radio One, Inc., Cl. D 1 1,800 25,974 ---------------------------------------------------------------- Saga Communications, Inc., Cl. A 1 1,500 28,500 ---------------------------------------------------------------- Sinclair Broadcast Group, Inc., Cl. A 1 3,700 43,031 ---------------------------------------------------------------- Sonic Solutions, Inc. 1 3,100 15,500 ---------------------------------------------------------------- Spanish Broadcasting System, Inc., Cl. A 1 5,000 36,000 ---------------------------------------------------------------- Thomas Nelson, Inc. 2,300 23,046 ---------------------------------------------------------------- TiVo, Inc. 1 5,600 29,176 ---------------------------------------------------------------- UnitedGlobalCom, Inc., Cl. A 1 600 1,440 ---------------------------------------------------------------- Young Broadcasting, Inc., Cl. A 1 1,600 21,072 ----------- 623,813 ---------------------------------------------------------------- Multiline Retail--0.6% Big Lots, Inc. 1 3,200 42,336 ---------------------------------------------------------------- BJ's Wholesale Club, Inc. 1 3,100 56,730 ---------------------------------------------------------------- Factory 2-U Stores, Inc. 1 5,300 18,078 ---------------------------------------------------------------- Saks, Inc. 1 3,000 35,220 ---------------------------------------------------------------- Shopko Stores, Inc. 1 700 8,715 ---------------------------------------------------------------- Stein Mart, Inc. 1 200 1,220 ----------- 162,299 ---------------------------------------------------------------- Specialty Retail--5.2% Aaron Rents, Inc. 900 19,692 ---------------------------------------------------------------- American Eagle Outfitters, Inc. 1 1,200 16,536 ---------------------------------------------------------------- Asbury Automotive Group, Inc. 1 400 3,364 ---------------------------------------------------------------- bebe stores, inc. 1 600 8,040 ---------------------------------------------------------------- Big 5 Sporting Goods Corp. 1 1,600 17,264 ---------------------------------------------------------------- Blair Corp. 500 11,660 ---------------------------------------------------------------- Blue Rhino Corp. 2,400 41,736 ---------------------------------------------------------------- Building Materials Holding Corp. 1,600 22,880 ---------------------------------------------------------------- Cache, Inc. 1 500 6,900 ---------------------------------------------------------------- Charming Shoppes, Inc. 1 1,300 5,434 ---------------------------------------------------------------- Chico's FAS, Inc. 1 400 7,564 ---------------------------------------------------------------- Claire's Stores, Inc. 2,200 48,554 ---------------------------------------------------------------- CompuCom Systems, Inc. 1 2,600 14,586 ---------------------------------------------------------------- Cost Plus, Inc. 1 1,500 43,005 ---------------------------------------------------------------- CSK Auto Corp. 1 100 1,100 ---------------------------------------------------------------- Deb Shops, Inc. 1,000 22,210 ---------------------------------------------------------------- Dress Barn, Inc. (The) 1 2,100 27,930 ---------------------------------------------------------------- Finlay Enterprises, Inc. 1 1,500 18,090 ---------------------------------------------------------------- Friedman's, Inc., Cl. A 1,700 14,756 7 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Continued Market Value Shares See Note 1 ---------------------------------------------------------------- Specialty Retail Continued Goody's Family Clothing, Inc. 1 800 $ 3,552 ---------------------------------------------------------------- Guitar Center, Inc. 1 1,300 21,528 ---------------------------------------------------------------- Gymboree Corp. 1 3,500 55,510 ---------------------------------------------------------------- Hancock Fabrics, Inc. 3,000 45,750 ---------------------------------------------------------------- Hibbett Sporting Goods, Inc. 800 19,136 ---------------------------------------------------------------- Hollywood Entertainment Corp. 1 1,000 15,100 ---------------------------------------------------------------- Jo-Ann Stores, Inc., Cl. A 1 1,400 32,158 ---------------------------------------------------------------- Jos. A. Banks Clothiers, Inc. 1 600 12,792 ---------------------------------------------------------------- Lithia Motors, Inc., Cl. A 1 1,300 20,397 ---------------------------------------------------------------- Michaels Stores, Inc. 1 600 18,780 ---------------------------------------------------------------- Mothers Work, Inc. 1 1,000 35,230 ---------------------------------------------------------------- Movie Gallery, Inc. 1 3,325 43,225 ---------------------------------------------------------------- OfficeMax, Inc. 1 10,700 53,500 ---------------------------------------------------------------- Pacific Sunwear of California, Inc. 1 450 7,960 ---------------------------------------------------------------- Party City Corp. 1 1,100 13,200 ---------------------------------------------------------------- Pep Boys-Manny, Moe & Jack 2,300 26,680 ---------------------------------------------------------------- PetsMart, Inc. 1 1,600 27,408 ---------------------------------------------------------------- Pier 1 Imports, Inc. 2,200 41,646 ---------------------------------------------------------------- Rent-A-Center, Inc. 1 900 44,955 ---------------------------------------------------------------- Restoration Hardware, Inc. 1 4,400 22,044 ---------------------------------------------------------------- Ross Stores, Inc. 1,300 55,107 ---------------------------------------------------------------- Select Comfort Corp. 1 3,600 33,840 ---------------------------------------------------------------- Sharper Image Corp. 1 1,900 33,117 ---------------------------------------------------------------- Shoe Carnival, Inc. 1 1,000 14,011 ---------------------------------------------------------------- Sonic Automotive, Inc. 1 2,400 35,688 ---------------------------------------------------------------- Sports Authority, Inc. (The) 1 2,800 19,600 ---------------------------------------------------------------- TBC Corp. 1 1,200 14,412 ---------------------------------------------------------------- Too, Inc. 1 1,800 42,336 ---------------------------------------------------------------- Tractor Supply Co. 1 800 30,080 ---------------------------------------------------------------- Tuesday Morning Corp. 1 2,700 46,170 ---------------------------------------------------------------- United Auto Group, Inc. 1 2,600 32,422 ---------------------------------------------------------------- Urban Outfitters, Inc. 1 800 18,856 ---------------------------------------------------------------- West Marine, Inc. 1 1,600 21,904 ---------------------------------------------------------------- Zale Corp. 1 1,000 31,900 ----------- 1,341,295 ---------------------------------------------------------------- Textiles & Apparel--1.7% Cherokee, Inc. 900 13,140 ---------------------------------------------------------------- Coach, Inc. 1 300 9,876 ---------------------------------------------------------------- Columbia Sportswear Co. 1 300 13,326 ---------------------------------------------------------------- Culp, Inc. 1 1,200 10,200 ---------------------------------------------------------------- DHB Industries, Inc. 1 1,100 1,826 ---------------------------------------------------------------- Fossil, Inc. 1 1,850 37,629 ---------------------------------------------------------------- Gildan Activewear, Inc., Cl. A 1 200 4,682 ---------------------------------------------------------------- K-Swiss, Inc., Cl. A 2,600 56,446 Market Value Shares See Note 1 ---------------------------------------------------------------- Textiles & Apparel Continued Kellwood Co. 2,000 $ 52,000 ---------------------------------------------------------------- Kenneth Cole Productions, Inc., Cl. A 1 1,000 20,300 ---------------------------------------------------------------- OshKosh B'Gosh, Inc., Cl. A 900 25,245 ---------------------------------------------------------------- Phillips-Van Heusen Corp. 200 2,312 ---------------------------------------------------------------- Quaker Fabric Corp. 1 1,600 11,120 ---------------------------------------------------------------- Quicksilver, Inc. 1 1,800 47,988 ---------------------------------------------------------------- Russell Corp. 1,700 28,458 ---------------------------------------------------------------- Skechers U.S.A., Inc., Cl. A 1 800 6,792 ---------------------------------------------------------------- Steven Madden Ltd. 1 100 1,807 ---------------------------------------------------------------- Tommy Hilfiger Corp. 1 5,600 38,920 ---------------------------------------------------------------- Tropical Sportswear International Corp. 1 200 1,794 ---------------------------------------------------------------- Unifi, Inc. 1 1,100 5,775 ---------------------------------------------------------------- UniFirst Corp. 2,100 42,420 ----------- 432,056 ---------------------------------------------------------------- Consumer Staples--3.9% ---------------------------------------------------------------- Beverages--0.2% Boston Beer Co., Inc., Cl. A 1 800 11,440 ---------------------------------------------------------------- Coca-Cola Bottling Co. 400 25,804 ---------------------------------------------------------------- Cott Corp. 600 10,692 ----------- 47,936 ---------------------------------------------------------------- Food & Drug Retailing--0.7% Great Atlantic & Pacific Tea Co., Inc. (The) 1 3,300 26,598 ---------------------------------------------------------------- Pathmark Stores, Inc. 1 5,000 25,350 ---------------------------------------------------------------- Rite Aid Corp. 1 19,000 46,550 ---------------------------------------------------------------- Ruddick Corp. 1,800 24,642 ---------------------------------------------------------------- Weis Markets, Inc. 500 15,525 ---------------------------------------------------------------- Wild Oats Markets, Inc. 1 2,300 23,736 ---------------------------------------------------------------- Winn-Dixie Stores, Inc. 1,500 22,920 ----------- 185,321 ---------------------------------------------------------------- Food Products--1.7% Bunge Ltd. 2,500 60,150 ---------------------------------------------------------------- Central Garden & Pet Co. 1 3,700 68,487 ---------------------------------------------------------------- Del Monte Foods Co. 1 3,300 25,410 ---------------------------------------------------------------- Dole Food Co., Inc. 1,500 48,870 ---------------------------------------------------------------- Flowers Foods, Inc. 100 1,951 ---------------------------------------------------------------- Fresh Del Monte Produce, Inc. 2,900 54,839 ---------------------------------------------------------------- Horizon Organic Holding Corp. 1 400 6,476 ---------------------------------------------------------------- Interstate Bakeries Corp. 900 13,725 ---------------------------------------------------------------- J & J Snack Foods Corp. 1 800 28,568 ---------------------------------------------------------------- Lancaster Colony Corp. 200 7,816 ---------------------------------------------------------------- Lance, Inc. 1,500 17,759 ---------------------------------------------------------------- MGP Ingredients, Inc. 300 2,340 ---------------------------------------------------------------- Peet's Coffee & Tea, Inc. 1 2,400 33,912 8 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Market Value Shares See Note 1 ---------------------------------------------------------------- Food Products Continued Ralcorp Holdings, Inc. 1 1,800 $ 45,252 ---------------------------------------------------------------- Sanderson Farms, Inc. 300 6,273 ---------------------------------------------------------------- Sensient Technologies Corp. 300 6,741 ---------------------------------------------------------------- Smucker Co., J.M. (The) 183 7,285 ----------- 435,854 ---------------------------------------------------------------- Household Products--0.8% Chattem, Inc. 1 3,300 67,815 ---------------------------------------------------------------- Dial Corp. (The) 1,200 24,444 ---------------------------------------------------------------- Nu Skin Asia Pacific, Inc., Cl. A 3,700 44,289 ---------------------------------------------------------------- Playtex Products, Inc. 1 2,200 21,736 ---------------------------------------------------------------- Revlon, Inc., Cl. A 1 100 306 ---------------------------------------------------------------- WD-40 Co. 2,200 58,124 ----------- 216,714 ---------------------------------------------------------------- Personal Products--0.3% Del Laboratories, Inc. 1,145 23,129 ---------------------------------------------------------------- Elizabeth Arden, Inc. 1 900 13,320 ---------------------------------------------------------------- NBTY, Inc. 1 2,200 38,676 ----------- 75,125 ---------------------------------------------------------------- Tobacco--0.2% ---------------------------------------------------------------- Schweitzer-Mauduit International, Inc. 600 14,700 ---------------------------------------------------------------- Standard Commercial Corp. 1,400 25,340 ---------------------------------------------------------------- Vector Group Ltd. 1,100 12,782 ----------- 52,822 ---------------------------------------------------------------- Energy--4. 1% ---------------------------------------------------------------- Energy Equipment & Services--1.3% CHC Helicopter Corp., Cl. A 700 12,597 ---------------------------------------------------------------- Ensign Resource Service Group, Inc. 2,900 30,582 ---------------------------------------------------------------- Grey Wolf, Inc. 1 4,500 17,955 ---------------------------------------------------------------- Gulfmark Offshore, Inc. 1 1,400 20,650 ---------------------------------------------------------------- Helmerich & Payne, Inc. 1,300 36,283 ---------------------------------------------------------------- Hydril Co. 1 700 16,499 ---------------------------------------------------------------- NS Group, Inc. 1 300 1,956 ---------------------------------------------------------------- Oceaneering International, Inc. 1 1,700 42,058 ---------------------------------------------------------------- Offshore Logistics, Inc. 1 600 13,152 ---------------------------------------------------------------- Oil States International, Inc. 1 1,500 19,350 ---------------------------------------------------------------- Parker Drilling Co. 1 600 1,332 ---------------------------------------------------------------- Patterson-UTI Energy, Inc. 1 300 9,051 ---------------------------------------------------------------- Pride International, Inc. 1 700 10,430 ---------------------------------------------------------------- Tesco Corp. 1 400 4,740 ---------------------------------------------------------------- Trican Well Service Ltd. 1 4,100 52,425 ---------------------------------------------------------------- Trico Marine Services, Inc. 1 700 2,331 ---------------------------------------------------------------- Unit Corp. 1 1,700 31,535 ---------------------------------------------------------------- Willbros Group, Inc. 1 2,900 23,838 ----------- 346,764 Market Value Shares See Note 1 ---------------------------------------------------------------- Oil & Gas--2.8% Baytex Energy Ltd. 1 3,500 $ 18,787 ---------------------------------------------------------------- Berry Petroleum Co., Cl. A 100 1,705 ---------------------------------------------------------------- BlackRock Ventures, Inc. 1 7,000 10,457 ---------------------------------------------------------------- Brown (Tom), Inc. 1 1,600 40,160 ---------------------------------------------------------------- Callon Petroleum Co. 1 2,100 7,035 ---------------------------------------------------------------- Canadian 88 Energy Corp. 1,2 10,600 17,043 ---------------------------------------------------------------- Canadian 88 Energy Corp. 1 9,700 15,596 ---------------------------------------------------------------- Chesapeake Energy Corp. 7,000 54,180 ---------------------------------------------------------------- Cimarex Energy Co. 1 1,590 28,461 ---------------------------------------------------------------- Compton Petroleum Corp. 1 10,700 34,474 ---------------------------------------------------------------- Denbury Resources, Inc. 1 3,700 41,810 ---------------------------------------------------------------- Frontier Oil Corp. 3,100 53,382 ---------------------------------------------------------------- Holly Corp. 1,100 24,035 ---------------------------------------------------------------- Impact Energy, Inc. 1 4,200 4,626 ---------------------------------------------------------------- Paramount Resources Ltd. 1 5,400 51,272 ---------------------------------------------------------------- Patina Oil & Gas Corp. 1,325 41,936 ---------------------------------------------------------------- Peyto Exploration & Development Corp. 1 7,600 53,640 ---------------------------------------------------------------- Pogo Producing Co. 500 18,625 ---------------------------------------------------------------- Premcor, Inc. 1 1,500 33,345 ---------------------------------------------------------------- Purcell Energy Ltd. 1 15,300 28,183 ---------------------------------------------------------------- Quicksilver Resources, Inc. 1 900 20,187 ---------------------------------------------------------------- Rio Alto Resources International, Inc. 1 12,600 5,742 ---------------------------------------------------------------- St. Mary Land & Exploration Co. 200 5,000 ---------------------------------------------------------------- Stelmar Shipping Ltd. 1 100 1,506 ---------------------------------------------------------------- Upton Resources, Inc. 1 3,600 9,457 ---------------------------------------------------------------- Vermilion Resources Ltd. 1 6,400 45,373 ---------------------------------------------------------------- Western Gas Resources, Inc. 1,200 44,220 ----------- 710,237 ---------------------------------------------------------------- Financials--13.4% ---------------------------------------------------------------- Banks--10.1% 1st Source Corp. 500 8,375 ---------------------------------------------------------------- Allegiant Bancorp, Inc. 400 7,292 ---------------------------------------------------------------- American Financial Holdings, Inc. 900 26,892 ---------------------------------------------------------------- Anchor BanCorp Wisconsin, Inc. 1,000 20,750 ---------------------------------------------------------------- Arrow Financial Corp. 441 13,570 ---------------------------------------------------------------- Astoria Financial Corp. 600 16,290 ---------------------------------------------------------------- BancFirst Corp. 300 14,100 ---------------------------------------------------------------- Bank Mutual Corp. 1,000 23,130 ---------------------------------------------------------------- Bank of Hawaii Corp. 700 21,273 ---------------------------------------------------------------- Bank of the Ozarks, Inc. 500 11,720 ---------------------------------------------------------------- BankUnited Financial Corp., Cl. A 1 2,100 33,978 ---------------------------------------------------------------- Bay View Capital Corp. 1 2,000 11,500 ---------------------------------------------------------------- Berkshire Hills Bancorp, Inc. 300 7,065 ---------------------------------------------------------------- Brookline Bancorp, Inc. 2,660 31,654 ---------------------------------------------------------------- Capital City Bank Group, Inc. 100 3,919 9 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Continued Market Value Shares See Note 1 ---------------------------------------------------------------- Banks Continued Capitol Bancorp Ltd. 400 $ 9,280 ---------------------------------------------------------------- Cascade Bancorp 300 4,146 ---------------------------------------------------------------- Cathay Bancorp, Inc. 200 7,598 ---------------------------------------------------------------- CB Bancshares, Inc. 450 19,134 ---------------------------------------------------------------- CFS Bancorp, Inc. 1,000 14,300 ---------------------------------------------------------------- Chemical Financial Corp. 100 3,215 ---------------------------------------------------------------- Citizens First Bancorp, Inc. 400 8,424 ---------------------------------------------------------------- Citizens South Banking Corp. 400 4,080 ---------------------------------------------------------------- City Holding Co. 500 14,130 ---------------------------------------------------------------- Coastal Bancorp, Inc. 300 9,705 ---------------------------------------------------------------- Commercial Bankshares, Inc. 100 3,460 ---------------------------------------------------------------- Commonwealth Bancorp, Inc. 1,400 64,918 ---------------------------------------------------------------- Community First Bankshares, Inc. 1,200 31,752 ---------------------------------------------------------------- Connecticut Bancshares, Inc. 1,500 57,675 ---------------------------------------------------------------- CPB, Inc. 600 16,470 ---------------------------------------------------------------- CVB Financial Corp. 1,175 29,880 ---------------------------------------------------------------- Dime Community Bancshares, Inc. 2,175 41,651 ---------------------------------------------------------------- East West Bancorp, Inc. 1,000 36,080 ---------------------------------------------------------------- F&M Bancorp 200 6,400 ---------------------------------------------------------------- F.N.B. Corp. 735 20,227 ---------------------------------------------------------------- Fidelity Bankshares, Inc. 2,416 43,246 ---------------------------------------------------------------- First BanCorp, Puerto Rico 950 21,470 ---------------------------------------------------------------- First Busey Corp. 100 2,306 ---------------------------------------------------------------- First Charter Corp. 200 3,602 ---------------------------------------------------------------- First Commonwealth Financial Corp. 100 1,150 ---------------------------------------------------------------- First Community Bancshares, Inc. 1,000 30,760 ---------------------------------------------------------------- First Essex Bancorp, Inc. 200 6,680 ---------------------------------------------------------------- First Federal Capital Corp. 2,100 40,549 ---------------------------------------------------------------- First Financial Bankshares, Inc. 200 7,600 ---------------------------------------------------------------- First Financial Holdings, Inc. 1,100 27,236 ---------------------------------------------------------------- First Indiana Corp. 475 8,792 ---------------------------------------------------------------- First Midwest Bancorp, Inc. 650 17,361 ---------------------------------------------------------------- First Niagara Financial Group, Inc. 900 23,508 ---------------------------------------------------------------- First Place Financial Corp. 800 13,304 ---------------------------------------------------------------- First State Bancorporation 500 12,400 ---------------------------------------------------------------- FirstFed America Bancorp, Inc. 300 7,455 ---------------------------------------------------------------- Flagstar Bancorp, Inc. 2,475 53,460 ---------------------------------------------------------------- Flushing Financial Corp. 1,050 17,197 ---------------------------------------------------------------- Frontier Financial Corp. 400 10,232 ---------------------------------------------------------------- Glacier Bancorp, Inc. 1,300 30,628 ---------------------------------------------------------------- Granite State Bankshares, Inc. 500 21,845 ---------------------------------------------------------------- Hanmi Financial Corp. 300 4,998 ---------------------------------------------------------------- Harbor Florida Bancshares, Inc. 2,500 56,300 ---------------------------------------------------------------- Harleysville National Corp. 300 7,959 ---------------------------------------------------------------- Hawthorne Financial Corp. 1 800 22,832 Market Value Shares See Note 1 ---------------------------------------------------------------- Banks Continued Hibernia Corp., Cl. A 500 $ 9,630 ---------------------------------------------------------------- Hudson River Bancorp, Inc. 800 19,800 ---------------------------------------------------------------- Hudson United Bancorp 700 21,770 ---------------------------------------------------------------- IBERIABANK Corp. 900 36,144 ---------------------------------------------------------------- Independence Community Bank Corp. 2,100 53,298 ---------------------------------------------------------------- Independent Bank Corp.- Massachusetts 800 18,240 ---------------------------------------------------------------- Independent Bank Corp.-Michigan 1,669 50,504 ---------------------------------------------------------------- International Bancshares Corp. 725 28,601 ---------------------------------------------------------------- ITLA Capital Corp. 1 1,400 46,522 ---------------------------------------------------------------- Local Financial Corp. 1 2,200 32,230 ---------------------------------------------------------------- LSB Bancshares, Inc. 100 1,620 ---------------------------------------------------------------- MAF Bancorp, Inc. 1,600 54,400 ---------------------------------------------------------------- Main Street Banks, Inc. 400 7,680 ---------------------------------------------------------------- MB Financial, Inc. 800 27,832 ---------------------------------------------------------------- Midwest Banc Holdings, Inc. 1,400 26,530 ---------------------------------------------------------------- National Penn Bancshares, Inc. 210 5,576 ---------------------------------------------------------------- NBT Bancorp, Inc. 1,100 18,777 ---------------------------------------------------------------- OceanFirst Financial Corp. 1,300 29,185 ---------------------------------------------------------------- Old National Bancorp 700 17,010 ---------------------------------------------------------------- Old Second Bancorp, Inc. 1,133 41,921 ---------------------------------------------------------------- Oriental Financial Group, Inc. 230 5,653 ---------------------------------------------------------------- Pacific Capital Bancorp 1,633 41,560 ---------------------------------------------------------------- Pacific Northwest Bancorp 2,500 62,500 ---------------------------------------------------------------- Peapack-Gladstone Financial Corp. 100 3,425 ---------------------------------------------------------------- PennFed Financial Services, Inc. 500 13,575 ---------------------------------------------------------------- PFF Bancorp, Inc. 900 28,125 ---------------------------------------------------------------- Port Financial Corp. 1,100 49,082 ---------------------------------------------------------------- Prosperity Bancshares, Inc. 4,000 76,000 ---------------------------------------------------------------- Provident Bankshares Corp. 100 2,311 ---------------------------------------------------------------- Quaker City Bancorp, Inc. 1 1,100 36,223 ---------------------------------------------------------------- R&G Financial Corp., Cl. B 1,800 41,850 ---------------------------------------------------------------- Republic Bancorp, Inc. 131 1,542 ---------------------------------------------------------------- Republic Bancorp, Inc., Cl. A 1,600 18,032 ---------------------------------------------------------------- Roslyn Bancorp, Inc. 1,750 31,553 ---------------------------------------------------------------- S&T Bancorp, Inc. 1,300 32,566 ---------------------------------------------------------------- Sandy Spring Bancorp, Inc. 700 22,050 ---------------------------------------------------------------- Seacoast Banking Corp. of Florida 1,800 33,912 ---------------------------------------------------------------- Second Bancorp, Inc. 700 18,550 ---------------------------------------------------------------- South Financial Group, Inc. (The) 700 14,462 ---------------------------------------------------------------- Southern Financial Bancorp, Inc. 200 6,020 ---------------------------------------------------------------- Southwest Bancorp, Inc. 100 2,576 ---------------------------------------------------------------- St. Francis Capital Corp. 600 14,052 ---------------------------------------------------------------- State Bancorp, Inc. 855 15,390 ---------------------------------------------------------------- Staten Island Bancorp, Inc. 2,100 42,294 10 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Market Value Shares See Note 1 ---------------------------------------------------------------- Banks Continued Sterling Bancshares, Inc. 100 $ 1,222 ---------------------------------------------------------------- Sun Bancorp, Inc. 1 300 3,990 ---------------------------------------------------------------- Superior Financial Corp. 800 14,697 ---------------------------------------------------------------- Texas Regional Bancshares, Inc., Cl. A 600 21,325 ---------------------------------------------------------------- TierOne Corp. 1 1,800 27,288 ---------------------------------------------------------------- TriCo Bancshares 300 7,380 ---------------------------------------------------------------- Troy Financial Corp. 895 24,147 ---------------------------------------------------------------- U.S.B. Holding Co., Inc. 400 7,080 ---------------------------------------------------------------- UCBH Holdings, Inc. 700 29,715 ---------------------------------------------------------------- UMB Financial Corp. 300 11,478 ---------------------------------------------------------------- Unizan Financial Corp. 965 19,059 ---------------------------------------------------------------- Webster Financial Corp. 800 27,840 ---------------------------------------------------------------- WesBanco, Inc. 400 9,356 ---------------------------------------------------------------- Westcorp 1,000 21,000 ---------------------------------------------------------------- Willow Grove Bancorp, Inc. 1,300 18,070 ---------------------------------------------------------------- WSFS Financial Corp. 1,400 46,158 ----------- 2,597,281 ---------------------------------------------------------------- Diversified Financials--1.3% American Home Mortgage Holdings, Inc. 500 5,500 ---------------------------------------------------------------- Cash America International, Inc. 3,200 30,464 ---------------------------------------------------------------- Credit Acceptance Corp. 1 2,300 14,676 ---------------------------------------------------------------- Dominion Resources Black Warrior Trust 300 6,495 ---------------------------------------------------------------- Doral Financial Corp. 1,250 35,750 ---------------------------------------------------------------- E*TRADE Group, Inc. 1 3,300 16,038 ---------------------------------------------------------------- Federal Agricultural Mortgage Corp., Non-Vtg. 1 100 3,064 ---------------------------------------------------------------- Financial Federal Corp. 1 400 10,052 ---------------------------------------------------------------- Friedman, Billings, Ramsey Group, Inc. 1 4,700 43,992 ---------------------------------------------------------------- iDine Rewards Network, Inc. 1 1,700 18,054 ---------------------------------------------------------------- Metris Cos., Inc. 7,500 18,525 ---------------------------------------------------------------- New Century Financial Corp. 1,400 35,546 ---------------------------------------------------------------- Providian Financial Corp. 1 7,800 50,622 ---------------------------------------------------------------- SoundView Technology Group, Inc. 1 1,200 1,800 ---------------------------------------------------------------- Student Loan Corp. (The) 400 39,120 ---------------------------------------------------------------- World Acceptance Corp. 1 300 2,283 ----------- 331,981 ---------------------------------------------------------------- Insurance--1.8% Alfa Corp. 2,000 24,022 ---------------------------------------------------------------- American Medical Security Group, Inc. 1 1,300 18,174 ---------------------------------------------------------------- AmerUs Group Co. 1,400 39,578 ---------------------------------------------------------------- ANFI, Inc. 2,125 31,344 ---------------------------------------------------------------- Brown & Brown, Inc. 1,100 35,552 Market Value Shares See Note 1 ---------------------------------------------------------------- Insurance Continued Citizens, Inc. 1 500 $ 3,750 ---------------------------------------------------------------- CNA Surety Corp. 1,100 8,635 ---------------------------------------------------------------- Commerce Group, Inc. (The) 400 14,996 ---------------------------------------------------------------- Fidelity National Financial, Inc. 660 21,668 ---------------------------------------------------------------- Fremont General Corp. 2,800 12,572 ---------------------------------------------------------------- Hub International Ltd. 800 10,264 ---------------------------------------------------------------- IPC Holdings Ltd. 1 500 15,770 ---------------------------------------------------------------- LandAmerica Financial Group, Inc. 100 3,545 ---------------------------------------------------------------- Odyssey Re Holdings Corp. 1,600 28,320 ---------------------------------------------------------------- Ohio Casualty Corp. 1 600 7,770 ---------------------------------------------------------------- Pico Holdings, Inc. 1 100 1,324 ---------------------------------------------------------------- Reinsurance Group of America, Inc. 1,200 32,496 ---------------------------------------------------------------- RenaissanceRe Holdings Ltd. 1,200 47,520 ---------------------------------------------------------------- RLI Corp. 1,400 39,060 ---------------------------------------------------------------- StanCorp Financial Group, Inc. 200 9,770 ---------------------------------------------------------------- Stewart Information Services Corp. 1 800 17,112 ---------------------------------------------------------------- Triad Guaranty, Inc. 1 800 29,488 ---------------------------------------------------------------- Zenith National Insurance Corp. 500 11,760 ----------- 464,490 ---------------------------------------------------------------- Real Estate--0.2% Anworth Mortgage Asset Corp. 900 11,313 ---------------------------------------------------------------- Apex Mortgage Capital, Inc. 600 3,924 ---------------------------------------------------------------- Capital Automotive REIT 300 7,110 ---------------------------------------------------------------- Chelsea Property Group, Inc. 200 6,662 ---------------------------------------------------------------- Correctional Properties Trust 200 4,340 ---------------------------------------------------------------- Jones Lang LaSalle, Inc. 1 300 4,614 ---------------------------------------------------------------- Pan Pacific Retail Properties, Inc. 200 7,306 ---------------------------------------------------------------- Prentiss Properties Trust 200 5,656 ---------------------------------------------------------------- Ramco-Gershenson Properties Trust 400 7,900 ---------------------------------------------------------------- Redwood Trust, Inc. 100 2,770 ----------- 61,595 HEALTH CARE--13.9% ---------------------------------------------------------------- Biotechnology--5.2% Abgenix, Inc. 1 2,900 21,373 ---------------------------------------------------------------- Adolor Corp. 1 600 8,346 ---------------------------------------------------------------- Alkermes, Inc. 1 900 5,643 ---------------------------------------------------------------- Amylin Pharmaceuticals, Inc. 1 1,800 29,052 ---------------------------------------------------------------- Applera Corp./Celera Genomics Group 1 5,800 55,390 ---------------------------------------------------------------- Ariad Pharmaceuticals, Inc. 1 500 1,160 ---------------------------------------------------------------- ArQule, Inc. 1 800 2,440 ---------------------------------------------------------------- Array BioPharma, Inc. 1 1,700 9,435 ---------------------------------------------------------------- AVI BioPharma, Inc. 1 1,100 5,500 ---------------------------------------------------------------- Bentley Pharmaceuticals, Inc. 1 100 805 11 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Continued Market Value Shares See Note 1 ---------------------------------------------------------------- Biotechnology Continued BioMarin Pharmaceutical, Inc. 1 1,500 $ 10,575 ---------------------------------------------------------------- BioReliance Corp. 1 1,700 39,389 ---------------------------------------------------------------- Caliper Technologies Corp. 1 700 2,072 ---------------------------------------------------------------- Celgene Corp. 1 2,300 49,381 ---------------------------------------------------------------- Cell Genesys, Inc. 1 100 1,115 ---------------------------------------------------------------- Cephalon, Inc. 1 600 29,201 ---------------------------------------------------------------- Charles River Laboratories International, Inc. 1 800 30,784 ---------------------------------------------------------------- Ciphergen Biosystems, Inc. 1 400 1,380 ---------------------------------------------------------------- CuraGen Corp. 1 3,100 14,415 ---------------------------------------------------------------- CV Therapeutics, Inc. 1 1,000 18,220 ---------------------------------------------------------------- deCODE genetics, Inc. 1 500 925 ---------------------------------------------------------------- Discovery Partners International, Inc. 1 200 556 ---------------------------------------------------------------- Diversa Corp. 1 800 7,240 ---------------------------------------------------------------- Embrex, Inc. 1 1,200 13,353 ---------------------------------------------------------------- Enzo Biochem, Inc. 1 1,000 14,000 ---------------------------------------------------------------- Exact Sciences Corp. 1 3,900 42,237 ---------------------------------------------------------------- Exelixis, Inc. 1 1,700 13,600 ---------------------------------------------------------------- Gen-Probe, Inc. 1 2,300 54,738 ---------------------------------------------------------------- Genta, Inc. 1 6,200 47,678 ---------------------------------------------------------------- ICOS Corp. 1 1,100 25,751 ---------------------------------------------------------------- Idexx Laboratories, Inc. 1 1,800 59,130 ---------------------------------------------------------------- ILEX Oncology, Inc. 1 600 4,236 ---------------------------------------------------------------- ImClone Systems, Inc. 1 2,600 27,615 ---------------------------------------------------------------- ImmunoGen, Inc. 1 700 2,170 ---------------------------------------------------------------- Incyte Pharmaceuticals, Inc. 1 1,800 8,208 ---------------------------------------------------------------- Ligand Pharmaceuticals, Inc., Cl. B 1 1,900 10,203 ---------------------------------------------------------------- Luminex Corp. 1 700 2,877 ---------------------------------------------------------------- Martek Biosciences Corp. 1 2,300 57,592 ---------------------------------------------------------------- Medicines Co. (The) 1 3,600 57,672 ---------------------------------------------------------------- Myriad Genetics, Inc. 1 3,400 49,640 ---------------------------------------------------------------- NeoPharm, Inc. 1 300 3,042 ---------------------------------------------------------------- Neose Technologies, Inc. 1 300 2,592 ---------------------------------------------------------------- Nuerocrine Biosciences, Inc. 1 800 36,528 ---------------------------------------------------------------- Protein Design Labs, Inc. 1 6,600 56,100 ---------------------------------------------------------------- Regeneron Pharmaceuticals, Inc. 1 1,900 35,169 ---------------------------------------------------------------- Ribapharm, Inc. 1 2,200 14,410 ---------------------------------------------------------------- SangStat Medical Corp. 1 2,500 28,250 ---------------------------------------------------------------- Sepracor, Inc. 1 6,600 63,822 ---------------------------------------------------------------- Tanox, Inc. 1 900 8,145 ---------------------------------------------------------------- Techne Corp. 1 1,100 31,425 ---------------------------------------------------------------- Telik, Inc. 1 4,900 57,134 ---------------------------------------------------------------- Trimeris, Inc. 1 1,100 47,487 ---------------------------------------------------------------- Tularik, Inc. 1 3,300 24,618 ---------------------------------------------------------------- United Therapeutics Corp. 1 2,100 35,070 ---------------------------------------------------------------- V.I. Technologies, Inc. 1 1,800 1,818 Market Value Shares See Note 1 ---------------------------------------------------------------- Biotechnology Continued VaxGen, Inc. 1 1,700 $ 32,827 ---------------------------------------------------------------- XOMA Ltd. 1 3,500 14,805 ----------- 1,328,339 ---------------------------------------------------------------- Health Care Equipment & Supplies--3.4% ABIOMED, Inc. 1 400 1,456 ---------------------------------------------------------------- Advanced Medical Optics, Inc. 1 2,800 33,516 ---------------------------------------------------------------- Advanced Neuromodulation Systems, Inc. 1 1,000 35,100 ---------------------------------------------------------------- Alaris Medical, Inc. 1 2,900 17,690 ---------------------------------------------------------------- Arrow International, Inc. 200 8,134 ---------------------------------------------------------------- Bio-Rad Laboratories, Inc., Cl. A 1 500 19,350 ---------------------------------------------------------------- Biosite, Inc. 1 2,200 74,844 ---------------------------------------------------------------- Cardiac Science, Inc. 1 1,200 2,652 ---------------------------------------------------------------- CardioDynamics International Corp. 1 400 1,228 ---------------------------------------------------------------- Cerus Corp. 1 1,400 30,100 ---------------------------------------------------------------- Conceptus, Inc. 1 1,400 16,772 ---------------------------------------------------------------- Cooper Cos., Inc. (The) 1,400 35,028 ---------------------------------------------------------------- Cyberonics, Inc. 1 500 9,200 ---------------------------------------------------------------- HealthTronics Surgical Services, Inc. 1 1,700 13,619 ---------------------------------------------------------------- Hologic, Inc. 1 4,200 51,282 ---------------------------------------------------------------- ICU Medical, Inc. 1 100 3,730 ---------------------------------------------------------------- Immucor, Inc. 1 3,500 70,875 ---------------------------------------------------------------- Intuitive Surgical, Inc. 1 1,300 8,008 ---------------------------------------------------------------- Kyphon, Inc. 1 600 5,124 ---------------------------------------------------------------- Lifeline Systems, Inc. 1 400 8,972 ---------------------------------------------------------------- Meridian Medical Technologies, Inc. 1 1,500 66,600 ---------------------------------------------------------------- Merit Medical Systems, Inc. 1 3,325 66,234 ---------------------------------------------------------------- Mine Safety Applicances Co. 300 9,675 ---------------------------------------------------------------- Ocular Sciences, Inc. 1 1,300 20,176 ---------------------------------------------------------------- OrthoLogic Corp. 1 2,400 8,664 ---------------------------------------------------------------- Osteotech, Inc. 1 700 4,508 ---------------------------------------------------------------- PolyMedica Corp. 1 800 24,672 ---------------------------------------------------------------- Possis Medical, Inc. 1 1,500 27,000 ---------------------------------------------------------------- Quidel Corp. 1 1,400 4,857 ---------------------------------------------------------------- Radiologix, Inc. 1 2,100 4,851 ---------------------------------------------------------------- Rita Medical Systems, Inc. 1 200 1,010 ---------------------------------------------------------------- Steris Corp. 1 2,200 53,350 ---------------------------------------------------------------- SurModics, Inc. 1 1,400 40,152 ---------------------------------------------------------------- Theragenics Corp. 1 900 3,627 ---------------------------------------------------------------- Vasomedical, Inc. 1 1,200 1,128 ---------------------------------------------------------------- Vital Signs, Inc. 700 20,916 ---------------------------------------------------------------- West Pharmaceutical Services, Inc. 400 9,760 ---------------------------------------------------------------- Wright Medical Group, Inc. 1 700 12,221 ---------------------------------------------------------------- Young Innovations, Inc. 1 2,250 52,357 ----------- 878,438 12 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Market Value Shares See Note 1 ---------------------------------------------------------------- Health Care Providers & Services--3.4% Alliance Imaging, Inc. 1 500 $ 2,650 ---------------------------------------------------------------- Allscripts Healthcare Solutions, Inc. 1 100 239 ---------------------------------------------------------------- AMERIGROUP Corp. 1 800 24,248 ---------------------------------------------------------------- AMN Healthcare Services, Inc. 1 500 8,455 ---------------------------------------------------------------- AmSurg Corp. 1 1,500 30,645 ---------------------------------------------------------------- Apria Healthcare Group, Inc. 1 1,100 24,464 ---------------------------------------------------------------- Beverly Enterprises, Inc. 1 6,400 18,240 ---------------------------------------------------------------- Centene Corp. 1 400 13,436 ---------------------------------------------------------------- Cobalt Corp. 1 400 5,520 ---------------------------------------------------------------- CorVel Corp. 1 1,500 53,625 ---------------------------------------------------------------- Covance, Inc. 1 3,100 76,229 ---------------------------------------------------------------- Coventry Health Care, Inc. 1 1,100 31,933 ---------------------------------------------------------------- CryoLife, Inc. 1 600 4,098 ---------------------------------------------------------------- Curative Health Services, Inc. 1 600 10,350 ---------------------------------------------------------------- D&K Healthcare Resources, Inc. 1,000 10,241 ---------------------------------------------------------------- DaVita, Inc. 1 2,000 49,340 ---------------------------------------------------------------- Dynacq International, Inc. 300 4,310 ---------------------------------------------------------------- eResearch Technology, Inc. 1 2,350 39,362 ---------------------------------------------------------------- Genesis Health Ventures, Inc. 1 900 13,905 ---------------------------------------------------------------- Gentiva Health Services, Inc. 1,900 16,739 ---------------------------------------------------------------- Hanger Orthopedic Group, Inc. 1 3,400 44,710 ---------------------------------------------------------------- IDX Systems Corp. 1 1,200 20,436 ---------------------------------------------------------------- LabOne, Inc. 1 1,100 19,492 ---------------------------------------------------------------- Magellan Health Services, Inc. 1 1,500 240 ---------------------------------------------------------------- MedCath Corp. 1 100 1,000 ---------------------------------------------------------------- Mid Atlantic Medical Services, Inc. 1 200 6,480 ---------------------------------------------------------------- Odyssey Healthcare, Inc. 1 1,000 34,700 ---------------------------------------------------------------- Oxford Health Plans, Inc. 1 500 18,225 ---------------------------------------------------------------- PacifiCare Health Systems, Inc. 1 900 25,290 ---------------------------------------------------------------- Pediatrix Medical Group, Inc. 1 800 32,048 ---------------------------------------------------------------- Per-Se Technologies, Inc. 1 3,000 26,907 ---------------------------------------------------------------- PSS World Medical, Inc. 1 1,800 12,312 ---------------------------------------------------------------- Schein (Henry), Inc. 1 600 27,000 ---------------------------------------------------------------- Select Medical Corp. 1 1,200 16,188 ---------------------------------------------------------------- Sierra Health Services, Inc. 1 3,200 38,432 ---------------------------------------------------------------- U.S. Physical Therapy, Inc. 1 2,400 26,760 ---------------------------------------------------------------- United Surgical Partners International, Inc. 1 500 7,811 ---------------------------------------------------------------- US Oncology, Inc. 1 1,700 14,739 ---------------------------------------------------------------- VCA Antech, Inc. 1 400 6,000 ---------------------------------------------------------------- VitalWorks, Inc. 1 8,000 30,800 ---------------------------------------------------------------- WellChoice, Inc. 1 1,200 28,740 ----------- 876,339 Market Value Shares See Note 1 ---------------------------------------------------------------- Pharmaceuticals--1.9% aaiPharma, Inc. 1 1,600 $ 22,432 ---------------------------------------------------------------- Able Laboratories, Inc. 1 100 1,160 ---------------------------------------------------------------- Allos Therapeutics, Inc. 1 500 3,760 ---------------------------------------------------------------- American Pharmaceutical Partners, Inc. 1 1,900 33,820 ---------------------------------------------------------------- AtheroGenics, Inc. 1 500 3,705 ---------------------------------------------------------------- Bradley Pharmaceuticals, Inc. 1 1,200 15,636 ---------------------------------------------------------------- CIMA Labs, Inc. 1 1,200 29,029 ---------------------------------------------------------------- Connetics Corp. 1 800 9,616 ---------------------------------------------------------------- Dendreon Corp. 1 100 531 ---------------------------------------------------------------- Endo Pharmaceuticals Holdings, Inc. 2,100 16,168 ---------------------------------------------------------------- Eon Labs, Inc. 1 1,000 18,910 ---------------------------------------------------------------- Guilford Pharmaceuticals, Inc. 1 2,000 7,960 ---------------------------------------------------------------- ICN Pharmaceuticals, Inc. 3,200 34,912 ---------------------------------------------------------------- Impax Laboratories, Inc. 1 200 802 ---------------------------------------------------------------- Isis Pharmaceuticals, Inc. 1 5,100 33,609 ---------------------------------------------------------------- K-V Pharmaceutical Co., Cl. A 1 100 2,320 ---------------------------------------------------------------- Kos Pharmaceuticals, Inc. 1 1,100 20,900 ---------------------------------------------------------------- La Jolla Pharmaceutical Co. 1 100 650 ---------------------------------------------------------------- Lannett Co., Inc. 1 1,300 21,294 ---------------------------------------------------------------- Noven Pharmaceuticals, Inc. 1 600 5,538 ---------------------------------------------------------------- Penwest Pharmaceuticals Co. 1 1,100 11,660 ---------------------------------------------------------------- Perrigo Co. 1 2,600 31,590 ---------------------------------------------------------------- Pharmaceutical Resources, Inc. 1 1,900 56,620 ---------------------------------------------------------------- PRAECIS Pharmaceuticals, Inc. 1 100 325 ---------------------------------------------------------------- Salix Pharmaceuticals Ltd. 1 700 4,893 ---------------------------------------------------------------- Scios-Nova, Inc. 1 800 26,064 ---------------------------------------------------------------- Taro Pharmaceutical Industries Ltd. 1 1,700 63,920 ---------------------------------------------------------------- Versicor, Inc. 1 100 1,079 ----------- 478,903 ---------------------------------------------------------------- Industrials--14.6% ---------------------------------------------------------------- Aerospace & Defense--1.6% AAR Corp. 800 4,120 ---------------------------------------------------------------- Allied Research Corp. 1 1,100 20,350 ---------------------------------------------------------------- Aviall, Inc. 1 2,900 23,345 ---------------------------------------------------------------- Cubic Corp. 1,500 27,645 ---------------------------------------------------------------- Curtiss-Wright Corp. 200 12,764 ---------------------------------------------------------------- Ducommun, Inc. 1 1,500 23,775 ---------------------------------------------------------------- Engineered Support Systems, Inc. 100 3,666 ---------------------------------------------------------------- ESCO Technologies, Inc. 1 900 33,300 ---------------------------------------------------------------- Goodrich Corp. 1,700 31,144 ---------------------------------------------------------------- InVision Technologies, Inc. 1 1,200 31,632 ---------------------------------------------------------------- Ladish Co., Inc. 1 500 4,030 13 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Continued -------------------------------------------------------------------------------- Market Value Shares See Note 1 ---------------------------------------------------------------- Aerospace & Defense Continued Mercury Computer Systems, Inc. 1 1,400 $ 42,728 ---------------------------------------------------------------- MTC Technologies, Inc. 1 800 20,240 ---------------------------------------------------------------- Orbital Sciences Corp. 1 2,200 9,284 ---------------------------------------------------------------- Precision Castparts Corp. 1,400 33,950 ---------------------------------------------------------------- Sequa Corp., Cl A 1 100 3,911 ---------------------------------------------------------------- Veridian Corp. 1 2,100 44,814 ---------------------------------------------------------------- World Fuel Services Corp. 2,100 43,050 ----------- 413,748 ---------------------------------------------------------------- Air Freight & Couriers--0.2% Airborne, Inc. 2,400 35,592 ---------------------------------------------------------------- EGL, Inc. 1 1,000 14,250 ----------- 49,842 ---------------------------------------------------------------- Airlines--0.7% AMR Corp. 1 8,500 56,100 ---------------------------------------------------------------- Atlantic Coast Airlines Holdings, Inc. 1 400 4,812 ---------------------------------------------------------------- Continental Airlines, Inc., Cl. B 7,700 55,825 ---------------------------------------------------------------- Delta Air Lines, Inc. 1,400 16,940 ---------------------------------------------------------------- Frontier Airlines, Inc. 1 1,500 10,140 ---------------------------------------------------------------- Mesa Air Group, Inc. 1 600 2,442 ---------------------------------------------------------------- Midwest Express Holdings, Inc. 1 500 2,675 ---------------------------------------------------------------- Northwest Airlines Corp., Cl. A 1 4,400 32,296 ---------------------------------------------------------------- SkyWest, Inc. 600 7,842 ----------- 189,072 ---------------------------------------------------------------- Building Products--1.5% Aaon, Inc. 1 2,350 43,311 ---------------------------------------------------------------- American Woodmark Corp. 900 42,750 ---------------------------------------------------------------- Drew Industries, Inc. 1 1,500 24,075 ---------------------------------------------------------------- ElkCorp 500 8,650 ---------------------------------------------------------------- Griffon Corp. 1 3,370 45,899 ---------------------------------------------------------------- Lennox International, Inc. 2,900 36,395 ---------------------------------------------------------------- NCI Building Systems, Inc. 1 700 15,274 ---------------------------------------------------------------- Simpson Manufacturing Co., Inc. 1 600 19,740 ---------------------------------------------------------------- Trex Co., Inc. 1 2,200 77,660 ---------------------------------------------------------------- Universal Forest Products, Inc. 1,800 38,378 ---------------------------------------------------------------- USG Corp. 1 2,800 23,660 ---------------------------------------------------------------- Watsco, Inc. 700 11,466 ----------- 387,258 ---------------------------------------------------------------- Commercial Services & Supplies--4.9% Angelica Corp. 1,500 30,975 ---------------------------------------------------------------- Arbitron, Inc. 1 200 6,700 ---------------------------------------------------------------- Bowne & Co., Inc. 1,600 19,120 ---------------------------------------------------------------- Bright Horizons Family Solutions, Inc. 1 1,000 28,120 ---------------------------------------------------------------- CCC Information Services Group, Inc. 1 2,000 35,458 Market Value Shares See Note 1 ---------------------------------------------------------------- Commercial Services & Supplies Continued CDI Corp. 1 600 $ 16,188 ---------------------------------------------------------------- Central Parking Corp. 1,100 20,746 ---------------------------------------------------------------- Century Business Services, Inc. 1 700 1,855 ---------------------------------------------------------------- Coinstar, Inc. 1 2,100 47,565 ---------------------------------------------------------------- Consolidated Graphics, Inc. 500 11,125 ---------------------------------------------------------------- Corinthian Colleges, Inc. 1 1,200 45,432 ---------------------------------------------------------------- CSG Systems International, Inc. 1 1,200 16,380 ---------------------------------------------------------------- Dun & Bradstreet Corp. 1 400 13,796 ---------------------------------------------------------------- Ennis Business Forms, Inc. 1,800 20,916 ---------------------------------------------------------------- eSPEED, Inc., Cl. A 1 2,900 49,129 ---------------------------------------------------------------- G&K Services, Inc., Cl. A 1,400 49,561 ---------------------------------------------------------------- General Binding Corp. 1 1,400 11,872 ---------------------------------------------------------------- Global Payments, Inc. 1,100 35,211 ---------------------------------------------------------------- Harland (John H.) Co. 300 6,639 ---------------------------------------------------------------- Headwaters, Inc. 1 2,700 41,877 ---------------------------------------------------------------- Healthcare Services Group, Inc. 1 900 11,736 ---------------------------------------------------------------- ICT Group, Inc. 1 2,600 30,134 ---------------------------------------------------------------- Imagistics International, Inc. 1 2,500 50,000 ---------------------------------------------------------------- Information Resources, Inc. 1 300 480 ---------------------------------------------------------------- infoUSA, Inc. 1 4,200 20,874 ---------------------------------------------------------------- Interpool, Inc. 1,200 19,272 ---------------------------------------------------------------- ITT Educational Services, Inc. 1 2,000 47,100 ---------------------------------------------------------------- Korn/Ferry International 1 300 2,244 ---------------------------------------------------------------- Labor Ready, Inc. 1 7,000 44,940 ---------------------------------------------------------------- Landauer, Inc. 800 27,800 ---------------------------------------------------------------- Miller (Herman), Inc. 1,100 20,240 ---------------------------------------------------------------- Moore Corp. Ltd. 4,800 43,680 ---------------------------------------------------------------- National Processing, Inc. 1 400 6,420 ---------------------------------------------------------------- New England Business Service, Inc. 500 12,200 ---------------------------------------------------------------- Pittston Brink's Group 1,600 29,568 ---------------------------------------------------------------- PRG-Schultz International, Inc. 1 2,500 22,250 ---------------------------------------------------------------- Regis Corp. 1,400 36,386 ---------------------------------------------------------------- RemedyTemp, Inc. 1 100 1,400 ---------------------------------------------------------------- Right Management Consultants, Inc. 1 3,375 44,719 ---------------------------------------------------------------- RMH Teleservices, Inc. 1 400 4,200 ---------------------------------------------------------------- Rollins, Inc. 1,700 43,265 ---------------------------------------------------------------- Schawk, Inc. 1,000 9,910 ---------------------------------------------------------------- SITEL Corp. 1 400 480 ---------------------------------------------------------------- Sotheby's Holdings, Inc., Cl. A 1 700 6,300 ---------------------------------------------------------------- Standard Register Co. (The) 700 12,600 ---------------------------------------------------------------- Steelcase, Inc., Cl. A 300 3,288 ---------------------------------------------------------------- Strayer Education, Inc. 300 17,250 ---------------------------------------------------------------- Sylvan Learning Systems, Inc. 1 400 6,560 ---------------------------------------------------------------- United Stationers, Inc. 1 800 23,041 ---------------------------------------------------------------- University of Phoenix Online 1 1,200 43,008 ---------------------------------------------------------------- Wackenhut Corrections Corp. 1 700 7,777 14 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Market Value Shares See Note 1 ---------------------------------------------------------------- Commercial Services & Supplies Continued Wallace Computer Services, Inc. 1,900 $ 40,869 ---------------------------------------------------------------- Waste Connections, Inc. 1 1,700 65,637 ----------- 1,264,293 ---------------------------------------------------------------- Construction & Engineering--0.3% Butler Manufacturing Co. 200 3,870 ---------------------------------------------------------------- Comfort Systems USA, Inc. 1 4,200 14,070 ---------------------------------------------------------------- EMCOR Group, Inc. 1 500 26,505 ---------------------------------------------------------------- Integrated Electrical Services, Inc. 1 700 2,695 ---------------------------------------------------------------- Quanta Services, Inc. 1 700 2,450 ---------------------------------------------------------------- Shaw Group, Inc. (The) 1 800 13,160 ---------------------------------------------------------------- URS Corp. 1 100 1,423 ----------- 64,173 ---------------------------------------------------------------- Electrical Equipment--0.6% Acuity Brands, Inc. 300 4,062 ---------------------------------------------------------------- Baldor Electric Co. 200 3,950 ---------------------------------------------------------------- Energy Conversion Devices, Inc. 1 100 980 ---------------------------------------------------------------- Franklin Electric Co., Inc. 700 33,607 ---------------------------------------------------------------- FuelCell Energy, Inc. 1 1,100 7,207 ---------------------------------------------------------------- Genlyte Group, Inc. (The) 1 1,200 37,392 ---------------------------------------------------------------- Paxar Corp. 1 1,400 20,650 ---------------------------------------------------------------- Plug Power, Inc. 1 300 1,347 ---------------------------------------------------------------- Power-One, Inc. 1 400 2,268 ---------------------------------------------------------------- Signal Technology Corp. 1 1,800 19,404 ---------------------------------------------------------------- Thomas & Betts Corp. 1 600 10,140 ---------------------------------------------------------------- Vicor Corp. 1 200 1,650 ----------- 142,657 ---------------------------------------------------------------- Industrial Conglomerates--0.4% Carlisle Cos., Inc. 500 20,690 ---------------------------------------------------------------- Lydall, Inc. 1 800 9,080 ---------------------------------------------------------------- Tredegar Corp. 1,500 22,500 ---------------------------------------------------------------- United Industrial Corp. 2,100 33,600 ---------------------------------------------------------------- Walter Industries, Inc. 1,300 14,079 ----------- 99,949 ---------------------------------------------------------------- Machinery--3.2% Actuant Corp., Cl. A 1 1,200 55,740 ---------------------------------------------------------------- AGCO Corp. 1 900 19,890 ---------------------------------------------------------------- Albany International Corp., Cl. A 200 4,132 ---------------------------------------------------------------- Barnes Group, Inc. 1,100 22,385 ---------------------------------------------------------------- Briggs & Stratton Corp. 1,200 50,964 ---------------------------------------------------------------- Chicago Bridge & Iron Co. NV 1,700 51,340 ---------------------------------------------------------------- CIRCOR International, Inc. 1,700 27,030 ---------------------------------------------------------------- Clarcor, Inc. 900 29,043 ---------------------------------------------------------------- Cummins, Inc. 2,000 56,260 Market Value Shares See Note 1 ---------------------------------------------------------------- Machinery Continued Cuno, Inc. 1 1,400 $ 46,368 ---------------------------------------------------------------- Dionex Corp. 1 900 26,703 ---------------------------------------------------------------- Donaldson Co., Inc. 400 14,400 ---------------------------------------------------------------- Encore Wire Corp. 1 1,900 17,195 ---------------------------------------------------------------- Gardner Denver, Inc. 1 400 8,120 ---------------------------------------------------------------- Global Power Equipment Group, Inc. 1 700 3,451 ---------------------------------------------------------------- Graco, Inc. 1,050 30,083 ---------------------------------------------------------------- Harsco Corp. 1,200 38,268 ---------------------------------------------------------------- JLG Industries, Inc. 700 5,271 ---------------------------------------------------------------- Kaydon Corp. 500 10,605 ---------------------------------------------------------------- Lindsay Manufacturing Co. 1,200 25,680 ---------------------------------------------------------------- Milacron, Inc. 600 3,570 ---------------------------------------------------------------- NACCO Industries, Inc., Cl. A 200 8,754 ---------------------------------------------------------------- Navistar International Corp. 1 600 14,586 ---------------------------------------------------------------- Oshkosh Truck Corp. 800 49,200 ---------------------------------------------------------------- Osmonics, Inc. 1 1,800 30,492 ---------------------------------------------------------------- Packaging Dynamics Corp. 1 360 2,376 ---------------------------------------------------------------- Regal-Beloit Corp. 200 4,140 ---------------------------------------------------------------- Reliance Steel & Aluminum Co. 100 2,084 ---------------------------------------------------------------- Thomas Industries, Inc. 1,700 44,302 ---------------------------------------------------------------- Timken Co. 2,900 55,390 ---------------------------------------------------------------- U.S. Industries, Inc. 1 1,100 2,893 ---------------------------------------------------------------- UNOVA, Inc. 1 900 5,400 ---------------------------------------------------------------- Valmont Industries, Inc. 1,500 29,100 ---------------------------------------------------------------- Wabash National Corp. 1 900 7,542 ---------------------------------------------------------------- Watts Industries, Inc., Cl. A 1,700 26,758 ----------- 829,515 ---------------------------------------------------------------- Marine--0.1% Alexander & Baldwin, Inc. 700 18,053 ---------------------------------------------------------------- Maritrans, Inc. 400 5,400 ----------- 23,453 ---------------------------------------------------------------- Road & Rail--1.1% CNF Transportation, Inc. 1,200 39,888 ---------------------------------------------------------------- Covenant Transport, Inc., Cl. A 1 1,100 20,856 ---------------------------------------------------------------- Heartland Express, Inc. 1 1,519 34,802 ---------------------------------------------------------------- Hunt (J.B.) Transport Services, Inc. 1 400 11,720 ---------------------------------------------------------------- Knight Transportation, Inc. 1 725 15,225 ---------------------------------------------------------------- Mullen Transportation, Inc. 1,300 24,687 ---------------------------------------------------------------- Old Dominion Freight Line, Inc. 1 1,500 42,601 ---------------------------------------------------------------- P.A.M. Transportation Services, Inc. 1 1,100 27,731 ---------------------------------------------------------------- SCS Transportation, Inc. 1 1,250 12,388 ---------------------------------------------------------------- U.S. Xpress Enterprises, Inc., Cl. A 1 400 3,504 ---------------------------------------------------------------- Werner Enterprises, Inc. 1,233 26,546 ---------------------------------------------------------------- Yellow Corp. 1 1,300 32,748 ----------- 292,696 15 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Continued Market Value Shares See Note 1 ---------------------------------------------------------------- Information Technology--22.0% ---------------------------------------------------------------- Communications Equipment--3.3% Adaptec, Inc. 1 8,500 $ 48,025 ---------------------------------------------------------------- ADTRAN, Inc. 1 1,500 49,350 ---------------------------------------------------------------- Allen Telecom, Inc. 1 4,800 45,456 ---------------------------------------------------------------- Arris Group, Inc. 1 2,600 9,282 ---------------------------------------------------------------- Aspect Communications Corp. 1 2,300 6,532 ---------------------------------------------------------------- Audiovox Corp., Cl. A 1 900 9,307 ---------------------------------------------------------------- Avanex Corp. 1 6,200 6,324 ---------------------------------------------------------------- Avaya, Inc. 1 17,100 41,895 ---------------------------------------------------------------- Brocade Communications Systems, Inc. 7,500 31,050 ---------------------------------------------------------------- Centillium Communications, Inc. 1 2,500 5,650 ---------------------------------------------------------------- Corvis Corp. 1 30,800 21,868 ---------------------------------------------------------------- Enterasys Networks, Inc. 1 11,900 18,564 ---------------------------------------------------------------- F5 Networks, Inc. 1 3,800 40,812 ---------------------------------------------------------------- Finisar Corp. 1 16,700 15,865 ---------------------------------------------------------------- Foundry Networks, Inc. 1 3,100 21,824 ---------------------------------------------------------------- Harmonic, Inc. 1 16,600 38,180 ---------------------------------------------------------------- Inter-Tel, Inc. 2,000 41,820 ---------------------------------------------------------------- InterDigital Communications Corp. 1 2,400 34,944 ---------------------------------------------------------------- Microtune, Inc. 1 5,100 15,963 ---------------------------------------------------------------- NetScreen Technologies, Inc. 1 4,400 74,096 ---------------------------------------------------------------- Netsolve, Inc. 1 1,400 9,450 ---------------------------------------------------------------- New Focus, Inc. 1 3,000 11,520 ---------------------------------------------------------------- Packeteer, Inc. 1 1,400 9,604 ---------------------------------------------------------------- Powerwave Technologies, Inc. 1 7,700 41,580 ---------------------------------------------------------------- Proxim Corp., Cl. A 1 1,900 1,653 ---------------------------------------------------------------- Redback Networks, Inc. 1 51,000 42,840 ---------------------------------------------------------------- Riverstone Networks, Inc. 1 22,100 46,852 ---------------------------------------------------------------- Sonus Networks, Inc. 1 17,900 17,900 ---------------------------------------------------------------- Sycamore Networks, Inc. 1 10,800 31,212 ---------------------------------------------------------------- Tekelec 1 3,900 40,755 ---------------------------------------------------------------- Terayon Communication Systems, Inc. 1 3,100 6,355 ---------------------------------------------------------------- Turnstone Systems, Inc. 1 200 540 ----------- 837,068 ---------------------------------------------------------------- Computers & Peripherals--2.9% Concurrent Computer Corp. 1 13,000 37,440 ---------------------------------------------------------------- Cray, Inc. 1 7,000 53,690 ---------------------------------------------------------------- Gateway, Inc. 1 17,900 56,206 ---------------------------------------------------------------- Hutchinson Technology, Inc. 1 2,900 60,030 ---------------------------------------------------------------- Imation Corp. 1 2,000 70,160 ---------------------------------------------------------------- Intergraph Corp. 1 600 10,656 ---------------------------------------------------------------- Iomega Corp. 1 4,800 37,680 ---------------------------------------------------------------- Lexar Media, Inc. 1 7,600 47,652 Market Value Shares See Note 1 ---------------------------------------------------------------- Computers & Peripherals Continued Maxtor Corp. 1 9,800 $ 49,588 ---------------------------------------------------------------- Neoware Systems, Inc. 1 3,300 49,203 ---------------------------------------------------------------- Overland Storage, Inc. 1 400 5,832 ---------------------------------------------------------------- Palm, Inc. 1 700 10,990 ---------------------------------------------------------------- Pinnacle Systems, Inc. 1 5,200 70,772 ---------------------------------------------------------------- Presstek, Inc. 1 500 2,305 ---------------------------------------------------------------- Rainbow Technologies, Inc. 1 800 5,736 ---------------------------------------------------------------- Read-Rite Corp. 1 1,100 385 ---------------------------------------------------------------- SanDisk Corp. 1 2,400 48,720 ---------------------------------------------------------------- SBS Technologies, Inc. 1 300 2,748 ---------------------------------------------------------------- Silicon Graphics, Inc. 1 10,300 11,639 ---------------------------------------------------------------- SimpleTech, Inc. 1 2,400 7,248 ---------------------------------------------------------------- Storage Technology Corp. 1 1,000 21,420 ---------------------------------------------------------------- StorageNetworks, Inc. 1 14,800 17,168 ---------------------------------------------------------------- Synaptics, Inc. 1 2,500 19,000 ---------------------------------------------------------------- Western Digital Corp. 1 6,900 44,091 ----------- 740,359 ---------------------------------------------------------------- Electronic Equipment & Instruments--1.8% Acterna Corp. 1 1,100 176 ---------------------------------------------------------------- Analogic Corp. 100 5,029 ---------------------------------------------------------------- Artesyn Technologies, Inc. 1 500 1,920 ---------------------------------------------------------------- Avnet, Inc. 1 2,900 31,407 ---------------------------------------------------------------- Benchmark Electronics, Inc. 1 500 14,330 ---------------------------------------------------------------- Checkpoint Systems, Inc. 1 300 3,102 ---------------------------------------------------------------- Cognex Corp. 1 700 12,901 ---------------------------------------------------------------- Cohu, Inc. 300 4,410 ---------------------------------------------------------------- Daktronics, Inc. 1 1,500 20,070 ---------------------------------------------------------------- DSP Group, Inc. 1 400 6,328 ---------------------------------------------------------------- Excel Technology, Inc. 1 1,100 19,679 ---------------------------------------------------------------- Fargo Electronics, Inc. 1 3,400 29,682 ---------------------------------------------------------------- Global Imaging Systems, Inc. 1 2,800 51,464 ---------------------------------------------------------------- Identix, Inc. 1 3,000 15,450 ---------------------------------------------------------------- Ingram Micro, Inc., Cl. A 1 300 3,705 ---------------------------------------------------------------- Keithley Instruments, Inc. 1,100 13,750 ---------------------------------------------------------------- Littlefuse, Inc. 1 200 3,372 ---------------------------------------------------------------- Merix Corp. 1 100 840 ---------------------------------------------------------------- Methode Electronics, Inc., Cl. A 5,700 62,529 ---------------------------------------------------------------- MTS Systems Corp. 1,500 15,030 ---------------------------------------------------------------- OSI Systems, Inc. 1 500 8,490 ---------------------------------------------------------------- Park Electrochemical Corp. 700 13,440 ---------------------------------------------------------------- Photon Dynamics, Inc. 1 1,900 43,320 ---------------------------------------------------------------- Research Frontiers, Inc. 1 100 834 ---------------------------------------------------------------- ScanSource, Inc. 1 600 29,580 ---------------------------------------------------------------- Sipex Corp. 1 800 2,960 ---------------------------------------------------------------- Sypris Solutions, Inc. 1,000 10,210 16 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Market Value Shares See Note 1 ---------------------------------------------------------------- Electronic Equipment & Instruments Continued Teledyne Technologies, Inc. 1 1,400 $ 21,952 ---------------------------------------------------------------- Zygo Corp. 1 700 4,893 ----------- 450,853 ---------------------------------------------------------------- Internet Software & Services--3.1% Akamai Technologies, Inc. 1 12,300 21,279 ---------------------------------------------------------------- AsiaInfo Holdings, Inc. 1 3,800 24,092 ---------------------------------------------------------------- BroadVision, Inc. 1 300 1,023 ---------------------------------------------------------------- CMG Information Services, Inc. 1 40,000 39,240 ---------------------------------------------------------------- CNET Networks, Inc. 1 12,700 34,417 ---------------------------------------------------------------- Commerce One, Inc. 1 1,300 3,575 ---------------------------------------------------------------- Covansys Corp. 1 100 376 ---------------------------------------------------------------- Digital River, Inc. 1 4,000 47,800 ---------------------------------------------------------------- Digitas, Inc. 1 1,300 4,498 ---------------------------------------------------------------- DoubleClick, Inc. 1 5,400 30,564 ---------------------------------------------------------------- EarthLink, Inc. 1 7,300 39,785 ---------------------------------------------------------------- FindWhat.com1 200 1,598 ---------------------------------------------------------------- FreeMarkets, Inc. 1 4,900 31,551 ---------------------------------------------------------------- InfoSpace, Inc. 1 3,100 26,192 ---------------------------------------------------------------- Internet Security Systems, Inc. 1 500 9,165 ---------------------------------------------------------------- Interwoven, Inc. 1 8,600 22,360 ---------------------------------------------------------------- j2 Global Communications, Inc. 1 2,900 55,216 ---------------------------------------------------------------- LendingTree, Inc. 1 1,900 24,472 ---------------------------------------------------------------- Net2Phone, Inc. 1 1,700 6,885 ---------------------------------------------------------------- Netegrity, Inc. 1 15,100 49,120 ---------------------------------------------------------------- Openwave Systems, Inc. 1 20,700 41,400 ---------------------------------------------------------------- Overture Services, Inc. 1 900 24,579 ---------------------------------------------------------------- ParthusCeva, Inc. 1 133 786 ---------------------------------------------------------------- PEC Solutions, Inc. 1 400 11,960 ---------------------------------------------------------------- Register.com, Inc. 1 100 450 ---------------------------------------------------------------- Secure Computing Corp. 1 6,700 42,947 ---------------------------------------------------------------- SeeBeyond Technology Corp. 1 15,400 37,422 ---------------------------------------------------------------- Stellent, Inc. 1 2,700 11,985 ---------------------------------------------------------------- United Online, Inc. 1 2,800 44,635 ---------------------------------------------------------------- Vignette Corp. 1 8,900 10,920 ---------------------------------------------------------------- WebEx Communications, Inc. 1 2,900 43,500 ---------------------------------------------------------------- Websense, Inc. 1 2,400 51,267 ----------- 795,059 ---------------------------------------------------------------- IT Consulting & Services--1.0% Acxiom Corp. 1 600 9,228 ---------------------------------------------------------------- Anteon International Corp. 1 1,500 36,000 ---------------------------------------------------------------- Caminus Corp. 1 500 1,170 ---------------------------------------------------------------- Carreker Corp. 1 2,300 10,419 ---------------------------------------------------------------- Cognizant Technology Solutions Corp. 1 600 43,338 ---------------------------------------------------------------- Gartner, Inc., Cl. B 1 800 7,560 Market Value Shares See Note 1 ---------------------------------------------------------------- IT Consulting & Services Continued Lawson Software, Inc. 1 2,400 $ 13,800 ---------------------------------------------------------------- ManTech International Corp. 1 400 7,628 ---------------------------------------------------------------- MPS Group, Inc. 1 100 554 ---------------------------------------------------------------- PracticeWorks, Inc. 1 1,900 15,010 ---------------------------------------------------------------- ProQuest Co. 1 200 3,920 ---------------------------------------------------------------- Sapient Corp. 1 18,700 38,335 ---------------------------------------------------------------- SS&C Technologies, Inc. 1 2,700 28,758 ---------------------------------------------------------------- Startek, Inc. 1 500 13,800 ---------------------------------------------------------------- Syntel, Inc. 1 1,000 21,010 ---------------------------------------------------------------- Tyler Technologies, Inc. 1 3,700 15,429 ----------- 265,959 ---------------------------------------------------------------- Office Electronics--0.1% Gerber Scientific, Inc. 1 500 2,030 ---------------------------------------------------------------- Ikon Office Solutions, Inc. 4,300 30,745 ----------- 32,775 ---------------------------------------------------------------- Semiconductor Equipment & Products--5.5% Advanced Energy Industries, Inc. 1 3,600 45,792 ---------------------------------------------------------------- Amkor Technology, Inc. 1 10,900 51,884 ---------------------------------------------------------------- Asyst Technologies, Inc. 1 5,500 40,425 ---------------------------------------------------------------- Atmel Corp. 1 17,000 37,910 ---------------------------------------------------------------- Axcelis Technologies, Inc. 1 9,500 53,285 ---------------------------------------------------------------- Brooks-PRI Automation, Inc. 1 1,100 12,606 ---------------------------------------------------------------- Cabot Microelectronics Corp. 1 1,400 66,080 ---------------------------------------------------------------- ChipPAC, Inc. 1 6,200 22,010 ---------------------------------------------------------------- Cirrus Logic, Inc. 1 1,700 4,896 ---------------------------------------------------------------- Credence Systems Corp. 1 5,500 51,315 ---------------------------------------------------------------- Cymer, Inc. 1 400 12,900 ---------------------------------------------------------------- Cypress Semiconductor Corp. 1 6,000 34,320 ---------------------------------------------------------------- Entegris, Inc. 1 1,900 19,570 ---------------------------------------------------------------- ESS Technology, Inc. 1 6,400 40,256 ---------------------------------------------------------------- FEI Co. 1 500 7,645 ---------------------------------------------------------------- FSI International, Inc. 1 1,700 7,667 ---------------------------------------------------------------- Genesis Microchip, Inc. 1 1,800 23,490 ---------------------------------------------------------------- GlobespanVirata, Inc. 1 12,600 55,566 ---------------------------------------------------------------- Helix Technology Corp. 2,300 25,760 ---------------------------------------------------------------- Integrated Device Technology, Inc. 1 6,500 54,405 ---------------------------------------------------------------- Intersil Corp., Cl. A 1 2,000 27,880 ---------------------------------------------------------------- Kulicke & Soffa Industries, Inc. 1 8,200 46,904 ---------------------------------------------------------------- LTX Corp. 1 8,800 53,064 ---------------------------------------------------------------- Mattson Technology, Inc. 1 800 2,288 ---------------------------------------------------------------- MKS Instruments, Inc. 1 3,500 57,505 ---------------------------------------------------------------- Mykrolis Corp. 1 2,700 19,710 ---------------------------------------------------------------- Oak Technology, Inc. 1 16,200 42,930 ---------------------------------------------------------------- ON Semiconductor Corp. 1 1,500 2,055 ---------------------------------------------------------------- Photronics, Inc. 1 1,500 20,550 17 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Continued Market Value Shares See Note 1 ---------------------------------------------------------------- Semiconductor Equipment & Products Continued Power Integrations, Inc. 1 1,500 $ 25,500 ---------------------------------------------------------------- Rambus, Inc. 1 6,400 42,944 ---------------------------------------------------------------- RF Micro Devices, Inc. 1 3,500 25,655 ---------------------------------------------------------------- Semitool, Inc. 1 100 623 ---------------------------------------------------------------- Silicon Image, Inc. 1 1,000 6,000 ---------------------------------------------------------------- Silicon Laboratories, Inc. 1 1,900 36,252 ---------------------------------------------------------------- Silicon Storage Technology, Inc. 1 1,900 7,676 ---------------------------------------------------------------- Siliconix, Inc. 1 1,400 32,760 ---------------------------------------------------------------- Skyworks Solutions, Inc. 1 6,400 55,168 ---------------------------------------------------------------- Standard Microsystems Corp. 1 600 11,682 ---------------------------------------------------------------- Supertex, Inc. 1 200 2,978 ---------------------------------------------------------------- Three-Five Systems, Inc. 1 700 4,515 ---------------------------------------------------------------- Transmeta Corp. 1 8,500 9,945 ---------------------------------------------------------------- TriQuint Semiconductor, Inc. 1 2,900 12,296 ---------------------------------------------------------------- Ultratech Stepper, Inc. 1 4,000 39,356 ---------------------------------------------------------------- Varian Semiconductor Equipment Associates, Inc. 1 1,000 23,761 ---------------------------------------------------------------- Vitesse Semiconductor Corp. 1 19,100 41,733 ---------------------------------------------------------------- White Electronic Designs Corp. 1 5,000 38,250 ---------------------------------------------------------------- Zoran Corp. 1 3,450 48,542 ----------- 1,406,304 ---------------------------------------------------------------- Software--4.3% Agile Software Corp. 1 6,300 48,762 ---------------------------------------------------------------- Altiris, Inc. 1 700 11,144 ---------------------------------------------------------------- Amdocs Ltd. 1 2,200 21,604 ---------------------------------------------------------------- Ansoft Corp. 1 3,000 18,450 ---------------------------------------------------------------- Ansys, Inc. 1 1,100 22,220 ---------------------------------------------------------------- Aspen Technology, Inc. 1 4,100 11,603 ---------------------------------------------------------------- Autodesk, Inc. 1,800 25,740 ---------------------------------------------------------------- Borland Software Corp. 1 1,900 23,370 ---------------------------------------------------------------- Catapult Communications Corp. 1 1,200 14,340 ---------------------------------------------------------------- Citrix Systems, Inc. 1 4,000 49,280 ---------------------------------------------------------------- Compuware Corp. 1 7,700 36,960 ---------------------------------------------------------------- Concord Communications, Inc. 1 1,100 9,889 ---------------------------------------------------------------- Dendrite International, Inc. 2,200 16,434 ---------------------------------------------------------------- DocuCorp International, Inc. 1 2,500 16,552 ---------------------------------------------------------------- Documentum, Inc. 1 2,900 45,414 ---------------------------------------------------------------- Dynamics Research Corp. 1 1,400 19,614 ---------------------------------------------------------------- E.piphany, Inc. 1 5,500 22,935 ---------------------------------------------------------------- Eclipsys Corp. 1 1,200 6,420 ---------------------------------------------------------------- Entrust Technologies, Inc. 1 3,000 10,080 ---------------------------------------------------------------- FactSet Research Systems, Inc. 1,200 33,924 ---------------------------------------------------------------- FileNet Corp. 1 1,900 23,180 ---------------------------------------------------------------- Hyperion Solutions Corp. 1 1,700 43,639 ---------------------------------------------------------------- Informatica Corp. 1 7,400 42,624 Principal Market Value Amount See Note 1 ---------------------------------------------------------------- Software Continued Kronos, Inc. 1 250 $ 9,248 ---------------------------------------------------------------- Legato Systems, Inc. 1 8,800 44,264 ---------------------------------------------------------------- Macromedia, Inc. 1 5,000 53,250 ---------------------------------------------------------------- Magma Design Automation, Inc. 1 500 4,790 ---------------------------------------------------------------- Manugistics Group, Inc. 1 7,200 17,280 ---------------------------------------------------------------- Micromuse, Inc. 1 13,500 51,570 ---------------------------------------------------------------- MICROS Systems, Inc. 1 500 11,210 ---------------------------------------------------------------- NetIQ Corp. 1 500 6,175 ---------------------------------------------------------------- Novadigm, Inc. 1 300 699 ---------------------------------------------------------------- Novell, Inc. 1 3,100 10,354 ---------------------------------------------------------------- Nuance Communications, Inc. 1 100 248 ---------------------------------------------------------------- Numerical Technologies, Inc. 1 1,100 3,806 ---------------------------------------------------------------- Parametric Technology Corp. 1 10,300 25,956 ---------------------------------------------------------------- Pegasystems, Inc. 1 2,300 11,753 ---------------------------------------------------------------- Plumtree Software, Inc. 1 8,200 22,140 ---------------------------------------------------------------- Precis, Inc. 1 200 1,104 ---------------------------------------------------------------- Quality Systems, Inc. 1 600 12,060 ---------------------------------------------------------------- Quovadx, Inc. 1 100 242 ---------------------------------------------------------------- Radiant Systems, Inc. 1 4,200 40,446 ---------------------------------------------------------------- Roxio, Inc. 1 2,500 11,925 ---------------------------------------------------------------- RSA Security, Inc. 1 7,300 43,727 ---------------------------------------------------------------- SafeNet, Inc. 1 200 5,070 ---------------------------------------------------------------- ScanSoft, Inc. 1 6,500 33,800 ---------------------------------------------------------------- SERENA Software, Inc. 1 2,900 45,791 ---------------------------------------------------------------- SpeechWorks International, Inc. 1 700 1,946 ---------------------------------------------------------------- Take-Two Interactive Software, Inc. 1 2,000 46,980 ---------------------------------------------------------------- Tripos, Inc. 1 200 1,466 ---------------------------------------------------------------- Ulticom, Inc. 1 1,100 8,239 ---------------------------------------------------------------- Viewpoint Corp. 1 700 1,309 ---------------------------------------------------------------- Wind River Systems, Inc. 1 2,700 11,070 ----------- 1,112,096 ---------------------------------------------------------------- Materials--5.4% ---------------------------------------------------------------- Chemicals--1.7% AEP Industries, Inc. 1 700 9,149 ---------------------------------------------------------------- Agrium, Inc. 1,200 13,572 ---------------------------------------------------------------- Albemarle Corp. 400 11,380 ---------------------------------------------------------------- Crompton Corp. 1,000 5,950 ---------------------------------------------------------------- Cytec Industries, Inc. 1 200 5,456 ---------------------------------------------------------------- Ferro Corp. 600 14,658 ---------------------------------------------------------------- Georgia Gulf Corp. 2,500 57,850 ---------------------------------------------------------------- Hercules, Inc. 1 5,700 50,160 ---------------------------------------------------------------- IMC Global, Inc. 4,000 42,680 ---------------------------------------------------------------- MacDermid, Inc. 100 2,285 ---------------------------------------------------------------- Material Sciences Corp. 1 600 7,764 ---------------------------------------------------------------- Millennium Chemicals, Inc. 200 1,904 18 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Market Value Shares See Note 1 ---------------------------------------------------------------- Chemicals Continued Octel Corp. 2,600 $ 41,080 ---------------------------------------------------------------- OM Group, Inc. 5,700 39,216 ---------------------------------------------------------------- Omnova Solutions, Inc. 1 7,200 29,016 ---------------------------------------------------------------- PolyOne Corp. 2,000 7,840 ---------------------------------------------------------------- Quaker Chemical Corp. 400 9,280 ---------------------------------------------------------------- Schulman (A.), Inc. 2,000 37,220 ---------------------------------------------------------------- Stepan Co. 100 2,500 ---------------------------------------------------------------- Terra Industries, Inc. 1 100 153 ---------------------------------------------------------------- Valspar Corp. (The) 1,000 44,180 ----------- 433,293 ---------------------------------------------------------------- Construction Materials--0.1% AMCOL International Corp. 1,700 9,860 ---------------------------------------------------------------- Centex Construction Products, Inc. 700 24,605 ----------- 34,465 ---------------------------------------------------------------- Containers & Packaging--1.5% Ball Corp. 1,100 56,309 ---------------------------------------------------------------- Bway Corp. 1 1,500 29,670 ---------------------------------------------------------------- Caraustar Industries, Inc. 1 1,200 11,376 ---------------------------------------------------------------- Crown Cork & Seal Co., Inc. 1 8,700 69,165 ---------------------------------------------------------------- Graphic Packaging International Corp. 1 1,100 6,204 ---------------------------------------------------------------- Greif Bros. Corp., Cl. A 100 2,380 ---------------------------------------------------------------- Jarden Corp. 1 1,600 38,192 ---------------------------------------------------------------- Myers Industries, Inc. 1,325 14,178 ---------------------------------------------------------------- Owens-Illinois, Inc. 1 1,400 20,412 ---------------------------------------------------------------- Sealed Air Corp. 1 1,500 55,950 ---------------------------------------------------------------- Silgan Holdings, Inc. 1 1,400 34,552 ---------------------------------------------------------------- Temple-Inland, Inc. 800 35,848 ----------- 374,236 ---------------------------------------------------------------- Metals & Mining--1.4% AK Steel Holding Corp. 1 4,900 39,200 ---------------------------------------------------------------- Century Aluminum Co. 400 2,964 ---------------------------------------------------------------- Cleveland-Cliffs, Inc. 1 100 1,985 ---------------------------------------------------------------- Commercial Metals Co. 2,600 42,224 ---------------------------------------------------------------- Gibraltar Steel Corp. 1,000 19,040 ---------------------------------------------------------------- Goldcorp, Inc. 1,500 19,047 ---------------------------------------------------------------- IMCO Recycling, Inc. 1 1,300 10,569 ---------------------------------------------------------------- Meridian Gold, Inc. 1 900 15,803 ---------------------------------------------------------------- Meridian Gold, Inc. 1 1,800 31,734 ---------------------------------------------------------------- NN, Inc. 1,100 10,989 ---------------------------------------------------------------- Oregon Steel Mills, Inc. 1 2,800 11,256 ---------------------------------------------------------------- Quanex Corp. 1,200 40,200 ---------------------------------------------------------------- Royal Gold, Inc. 100 2,492 Market Value Shares See Note 1 ---------------------------------------------------------------- Metals & Mining Continued RTI International Metals, Inc. 1 600 $ 6,060 ---------------------------------------------------------------- Schnitzer Steel Industries, Inc. 100 2,002 ---------------------------------------------------------------- Steel Dynamics, Inc. 1 2,200 26,466 ---------------------------------------------------------------- Steel Technologies, Inc. 1,500 25,440 ---------------------------------------------------------------- United States Steel Corp. 3,500 45,920 ---------------------------------------------------------------- USEC, Inc. 900 5,418 ----------- 358,809 ---------------------------------------------------------------- Paper & Forest Products--0.7% Boise Cascade Corp. 900 22,698 ---------------------------------------------------------------- Bowater, Inc. 400 16,780 ---------------------------------------------------------------- Deltic Timber Corp. 1,100 29,370 ---------------------------------------------------------------- Glatfelter 2,400 31,584 ---------------------------------------------------------------- Louisiana-Pacific Corp. 5,100 41,106 ---------------------------------------------------------------- Potlatch Corp. 1,500 35,820 ----------- 177,358 ---------------------------------------------------------------- Telecommunication Services--1.5% ---------------------------------------------------------------- Diversified Telecommunication Services--0.9% Allegiance Telecom, Inc. 1 9,500 6,365 ---------------------------------------------------------------- American Tower Corp. 1 7,700 27,181 ---------------------------------------------------------------- BroadWing, Inc. 1 14,700 51,744 ---------------------------------------------------------------- Commonwealth Telephone Enterprises, Inc. 1 800 28,672 ---------------------------------------------------------------- Crown Castle International Corp. 1 13,300 49,875 ---------------------------------------------------------------- IDT Corp. 1 300 5,187 ---------------------------------------------------------------- Infonet Services Corp., Cl. B 1 2,700 5,346 ---------------------------------------------------------------- Intrado, Inc. 1 800 7,840 ---------------------------------------------------------------- North Pittsburgh Systems, Inc. 1,300 17,720 ---------------------------------------------------------------- PTEK Holdings, Inc. 1 900 3,960 ---------------------------------------------------------------- Talk America Holdings, Inc. 1 1,500 8,400 ---------------------------------------------------------------- Time Warner Telecom, Inc., Cl. A 1 6,200 13,082 ----------- 225,372 ---------------------------------------------------------------- Wireless Telecommunication Services--0.6% Boston Communications Group, Inc. 1 2,100 26,691 ---------------------------------------------------------------- Centennial Communications Corp. 1 100 261 ---------------------------------------------------------------- EMS Technologies, Inc. 1 800 12,456 ---------------------------------------------------------------- Metro One Telecommunication, Inc. 1 2,500 16,125 ---------------------------------------------------------------- Nextel Partners, Inc., Cl. A 1 1,900 11,533 ---------------------------------------------------------------- Triton PCS Holdings, Inc., Cl. A 1 4,200 16,506 ---------------------------------------------------------------- Western Wireless Corp. 1 8,900 47,170 ---------------------------------------------------------------- Wireless Facilities, Inc. 1 3,600 21,636 ----------- 152,378 19 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA STATEMENT OF INVESTMENTS Continued Market Value Shares See Note 1 ---------------------------------------------------------------- Utilities--0.7% ---------------------------------------------------------------- Electric Utilities--0.3% Aquila, Inc. 1,300 $ 2,301 ---------------------------------------------------------------- CH Energy Group, Inc. 800 37,304 ---------------------------------------------------------------- CMS Energy Corp. 1,800 16,992 ---------------------------------------------------------------- OGE Energy Corp. 1,000 17,600 ----------- 74,197 ---------------------------------------------------------------- Gas Utilities--0.3% Nicor, Inc. 1,300 44,239 ---------------------------------------------------------------- Southwestern Energy Co. 1 500 5,725 ---------------------------------------------------------------- UGI Corp. 600 22,434 ----------- 72,398 ---------------------------------------------------------------- Multi-Utilities--0. 1% Questar Corp. 1,500 41,730 ----------- Total Common Stocks (Cost $25,202,426) 25,253,690 ---------------------------------------------------------------- Preferred Stocks--0.0% Astronics Corp., Cl. B1 (Cost $3,322) 250 1,563 Principal Market Value Amount See Note 1 ---------------------------------------------------------------- Joint Repurchase Agreements--2.9% Undivided interest of 0.11% in joint repurchase agreement (Market Value $694,610,000) with Banc One Capital Markets, Inc., 1.07%, dated 12/31/02, to be repurchased at $735,044 on 1/2/03, collateralized by U.S. Treasury Nts., 3%--6.50%, 2/15/03--2/15/12, with a value of $311,989,144 and U.S. Treasury Bonds, 1.75%--9.375%, 4/30/04--2/15/23, with a value of $397,082,690 (Cost $735,000) $735,000 $ 735,000 ---------------------------------------------------------------- Total Investments, at Value (Cost $25,940,748) 101.2% 25,990,253 ---------------------------------------------------------------- Liabilities in Excess of Other Assets (1.2) (302,243) ----------------------- Net Assets 100.0% $ 25,688,010 ======================= Footnotes to Statement of Investments 1. Non-income producing security. 2. Identifies issues considered to be illiquid or restricted--See Note 6 of Notes to Financial Statements. See accompanying Notes to Financial Statements. 20 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF ASSETS AND LIABILITIES December 31, 2002 ---------------------------------------------------------------------------------------------------------- Assets Investments, at value (cost $25,940,748)--see accompanying statement $25,990,253 ---------------------------------------------------------------------------------------------------------- Cash 653 ---------------------------------------------------------------------------------------------------------- Unrealized appreciation on foreign currency contracts 4 ---------------------------------------------------------------------------------------------------------- Receivables and other assets: Investments sold 131,850 Shares of beneficial interest sold 64,312 Interest and dividends 13,357 Other 1,776 ------------ Total assets 26,202,205 ---------------------------------------------------------------------------------------------------------- Liabilities Payables and other liabilities: Investments purchased 486,180 Shares of beneficial interest redeemed 13,636 Distribution and service plan fees 2,970 Shareholder reports 638 Transfer and shareholder servicing agent fees 463 Trustees' compensation 234 Other 10,074 ------------ Total liabilities 514,195 ---------------------------------------------------------------------------------------------------------- Net Assets $25,688,010 ============ ---------------------------------------------------------------------------------------------------------- Composition of Net Assets Par value of shares of beneficial interest $ 2,761 ---------------------------------------------------------------------------------------------------------- Additional paid-in capital 31,581,978 ---------------------------------------------------------------------------------------------------------- Accumulated net investment loss (11,369) ---------------------------------------------------------------------------------------------------------- Accumulated net realized loss on investments and foreign currency transactions (5,934,850) ---------------------------------------------------------------------------------------------------------- Net unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies 49,490 ------------ Net Assets $25,688,010 ============ ---------------------------------------------------------------------------------------------------------- Net Asset Value Per Share Non-Service shares: Net asset value, redemption price per share and offering price per share (based on net assets of $19,576,969 and 2,103,490 shares of beneficial interest outstanding) $9.31 ---------------------------------------------------------------------------------------------------------- Service shares: Net asset value, redemption price per share and offering price per share (based on net assets of $6,111,041 and 657,527 shares of beneficial interest outstanding) $9.29
See accompanying Notes to Financial Statements. 21 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENT OF OPERATIONS For the Year Ended December 31, 2002 ------------------------------------------------------------------------------------------------------------ Investment Income Dividends (net of foreign withholding taxes of $358) $ 195,600 ------------------------------------------------------------------------------------------------------------ Interest 12,722 ------------ Total investment income 208,322 ------------------------------------------------------------------------------------------------------------ Expenses Management fees 170,358 ------------------------------------------------------------------------------------------------------------ Distribution and service plan fees--Service shares 5,396 ------------------------------------------------------------------------------------------------------------ Transfer and shareholder servicing agent fees: Non-Service shares 10,498 Service shares 507 ------------------------------------------------------------------------------------------------------------ Shareholder reports 23,290 ------------------------------------------------------------------------------------------------------------ Legal, auditing and other professional fees 9,170 ------------------------------------------------------------------------------------------------------------ Custodian fees and expenses 5,905 ------------------------------------------------------------------------------------------------------------ Trustees' compensation 4,341 ------------------------------------------------------------------------------------------------------------ Other 3,430 ------------ Total expenses 232,895 Less reduction to custodian expenses (286) Less voluntary waiver of transfer and shareholder servicing agent fees--Service shares (382) ------------ Net expenses 232,227 ------------------------------------------------------------------------------------------------------------ Net Investment Loss (23,905) ------------------------------------------------------------------------------------------------------------ Realized and Unrealized Gain (Loss) Net realized loss on: Investments (2,845,844) Foreign currency transactions (2,456) ------------ Net realized loss (2,848,300) ------------------------------------------------------------------------------------------------------------ Net change in unrealized appreciation (depreciation) on: Investments (1,466,549) Translation of assets and liabilities denominated in foreign currencies 5,239 ------------ Net change (1,461,310) ------------ Net realized and unrealized loss (4,309,610) ------------------------------------------------------------------------------------------------------------ Net Decrease in Net Assets Resulting from Operations $(4,333,515) ============
See accompanying Notes to Financial Statements. 22 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
STATEMENTS OF CHANGES IN NET ASSETS Year Ended December 31, 2002 2001 ----------------------------------------------------------------------------------------------------- Operations Net investment loss $ (23,905) $ (922) ----------------------------------------------------------------------------------------------------- Net realized loss (2,848,300) (268,528) ----------------------------------------------------------------------------------------------------- Net change in unrealized appreciation (depreciation) (1,461,310) 362,920 ---------------------------- Net increase (decrease) in net assets resulting from operations (4,333,515) 93,470 ----------------------------------------------------------------------------------------------------- Beneficial Interest Transactions Net increase in net assets resulting from beneficial interest transactions: Non-Service shares 4,845,883 3,821,166 Service shares 6,553,550 108,184 ----------------------------------------------------------------------------------------------------- Net Assets Total increase 7,065,918 4,022,820 ----------------------------------------------------------------------------------------------------- Beginning of period 18,622,092 14,599,272 ---------------------------- End of period [including accumulated net investment loss of $11,369 and $382, respectively] $25,688,010 $18,622,092 ============================
See accompanying Notes to Financial Statements. 23 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
FINANCIAL HIGHLIGHTS Non-Service shares Year Ended December 31, 2002 2001 2000 1999 1998 1 ----------------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $11.05 $11.09 $14.07 $9.60 $10.00 ----------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) (.01) -- 2 (.03) (.02) (.02) Net realized and unrealized gain (loss) (1.73) (.04) (2.35) 4.49 (.38) ---------------------------------------------------------------- Total from investment operations (1.74) (.04) (2.38) 4.47 (.40) ----------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- (.60) -- -- ----------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $ 9.31 $11.05 $11.09 $14.07 $ 9.60 ================================================================ ----------------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 3 (15.75)% (0.36)% (18.34)% 46.56% (4.00)% ----------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $19,577 $18,514 $14,599 $6,927 $994 ----------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $20,505 $15,307 $12,576 $2,738 $441 ----------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment loss (0.09)% (0.01)% (0.29)% (0.37)% (0.79)% Expenses 1.00% 1.05% 1.37% 1.83% 0.87% 5 Expenses, net of reduction to custodian expenses 1.00% 1.05% 1.35% 1.34% 0.87% ----------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 121% 213% 162% 176% 61% 1. For the period from May 1, 1998 (inception of offering) to December 31, 1998. 2. Less than $0.005 per share. 3. Assumes an investment on the business day before the first day of the fiscal period (or inception of offering), 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 full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. 4. Annualized for periods of less than one full year. 5. Expense ratio has been calculated without adjustment for the reduction to custodian expenses.
See accompanying Notes to Financial Statements. 24 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA
Service shares Year Ended December 31, 2002 2001 1 --------------------------------------------------------------------------------------------------------------------------- Per Share Operating Data Net asset value, beginning of period $11.05 $ 10.61 --------------------------------------------------------------------------------------------------------------------------- Income (loss) from investment operations: Net investment income (loss) (.01) -- 2 Net realized and unrealized gain (loss) (1.75) .44 ---------------------- Total from investment operations (1.76) .44 --------------------------------------------------------------------------------------------------------------------------- Dividends and/or distributions to shareholders: Distributions from net realized gain -- -- --------------------------------------------------------------------------------------------------------------------------- Net asset value, end of period $9.29 $11.05 ====================== --------------------------------------------------------------------------------------------------------------------------- Total Return, at Net Asset Value 3 (15.93)% 4.15% --------------------------------------------------------------------------------------------------------------------------- --------------------------------------------------------------------------------------------------------------------------- Ratios/Supplemental Data Net assets, end of period (in thousands) $6,111 $108 --------------------------------------------------------------------------------------------------------------------------- Average net assets (in thousands) $2,228 $ 26 --------------------------------------------------------------------------------------------------------------------------- Ratios to average net assets: 4 Net investment loss (0.26)% (0.34)% Expenses 1.21% 1.19% Expenses, net of reduction to custodian expenses and/or voluntary waiver of transfer agent fees 1.19% 1.19% --------------------------------------------------------------------------------------------------------------------------- Portfolio turnover rate 121% 213% 1. For the period from July 16, 2001 (inception of offering) to December 31, 2001. 2. Less than $0.005 per share. 3. Assumes an investment on the business day before the first day of the fiscal period (or inception of offering), 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 full year. Total return information does not reflect expenses that apply at the separate account level or to related insurance products. Inclusion of these charges would reduce the total return figures for all periods shown. 4. Annualized for periods of less than one full year.
See accompanying Notes to Financial Statements. 25 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- 1. Significant Accounting Policies Oppenheimer Main Street Small Cap Fund/VA (the Fund) is a separate series of Oppenheimer Variable Account Funds (the Trust), an open-end management investment company registered under the Investment Company Act of 1940, as amended. The Fund's investment objective is to seek capital appreciation. The Trust's investment advisor is OppenheimerFunds, Inc. (the Manager). The Fund offers two classes of shares. Both classes are sold at their offering price, which is the net asset value per share, to separate investment accounts of participating insurance companies as an underlying investment for variable life insurance policies, variable annuity contracts or other investment products. The class of shares designated as Service shares is subject to a distribution and service plan. All classes of shares have identical rights and voting privileges. Earnings, net assets and net asset value per share may differ by minor amounts due to each class having its own expenses directly attributable to that class. The following is a summary of significant accounting policies consistently followed by the Fund. -------------------------------------------------------------------------------- Securities Valuation. Securities listed or traded on National Stock Exchanges or other domestic or foreign exchanges are valued based on the last sale price of the security traded on that exchange prior to the time when the Fund's assets are valued. In the absence of a sale, the security is valued at the last sale price on the prior trading day, if it is within the spread of the closing bid and asked prices, and if not, at the closing bid price. Securities (including restricted securities) for which quotations are not readily available are valued primarily using dealer-supplied valuations, a portfolio pricing service authorized by the Board of Trustees, or at their fair value. Fair value is determined in good faith under consistently applied procedures under the supervision of the Board of Trustees. Short-term "money market type" debt securities with remaining maturities of sixty days or less are valued at amortized cost (which approximates market value). -------------------------------------------------------------------------------- Foreign Currency Translation. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions. The effect of changes in foreign currency exchange rates on investments is separately identified from the fluctuations arising from changes in market values of securities held and reported with all other foreign currency gains and losses in the Fund's Statement of Operations. -------------------------------------------------------------------------------- Joint Repurchase Agreements. The Fund, along with other affiliated funds of the Manager, may transfer uninvested cash balances into one or more joint repurchase agreement accounts. These balances are invested in one or more repurchase agreements, secured by U.S. government securities. Securities pledged as collateral for repurchase agreements are held by a custodian bank until the agreements mature. Each agreement 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 of the collateral may be subject to legal proceedings. -------------------------------------------------------------------------------- Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than those attributable to a specific class), gains and losses are allocated daily to each class of shares based upon the relative proportion of net assets represented by such class. Operating expenses directly attributable to a specific class are charged against the operations of that class. -------------------------------------------------------------------------------- Federal Taxes. The Fund intends to continue to comply with provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income, including any net realized gain on investments not offset by capital loss carryforwards, if any, to shareholders. 26 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA As of December 31, 2002, the Fund had available for federal income tax purposes unused capital loss carryforwards as follows: Expiring ----------------------- 2008 $1,795,693 2009 1,282,533 2010 2,591,314 ---------- Total $5,669,540 ========== During the fiscal year ended December 31, 2002, the Fund did not utilize any capital loss carryforward. As of December 31, 2002, the Fund had approximately $265,000 of post-October losses available to offset future capital gains, if any. Such losses, if unutilized, will expire in 2011. -------------------------------------------------------------------------------- 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. -------------------------------------------------------------------------------- Classification of Dividends and Distributions to Shareholders. 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 Fund. The Fund adjusts the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, during the year ended December 31, 2002, amounts have been reclassified to reflect a decrease in paid-in capital of $4,595, a decrease in accumulated net investment loss of $12,918, and an increase in accumulated net realized loss on investments of $8,323. Net assets of the Fund were unaffected by the reclassifications. No distributions were paid during the years ended December 31, 2002 and December 31, 2001. As of December 31, 2002, the components of distributable earnings on a tax basis were as follows: Accumulated net investment loss $ (11,369) Accumulated net realized loss (5,934,850) Net realized appreciation 49,490 ----------- Total $(5,896,729) =========== -------------------------------------------------------------------------------- Investment Income. Dividend income is recorded on the ex-dividend date or upon ex-dividend notification in the case of certain foreign dividends where the ex-dividend date may have passed. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned. -------------------------------------------------------------------------------- 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. 27 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA NOTES TO FINANCIAL STATEMENTS Continued -------------------------------------------------------------------------------- 1. Significant Accounting Policies Continued Other. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. -------------------------------------------------------------------------------- 2. Shares of Beneficial Interest The Fund has authorized an unlimited number of $0.001 par value shares of beneficial interest of each class. Transactions in shares of beneficial interest were as follows:
Year Ended December 31, 2002 Year Ended December 31, 2001 1 Shares Amount Shares Amount ---------------------------------------------------------------------------------- Non-Service shares Sold 1,297,325 $ 13,674,065 869,437 $ 8,938,580 Redeemed (869,963) (8,828,182) (509,595) (5,117,414) ----------------------------------------------------------- Net increase 427,362 $ 4,845,883 359,842 $ 3,821,166 =========================================================== ---------------------------------------------------------------------------------- Service shares Sold 2,221,410 $ 21,513,500 10,574 $ 116,404 Redeemed (1,573,671) (14,959,950) (786) (8,220) ----------------------------------------------------------- Net increase 647,739 $ 6,553,550 9,788 $ 108,184 =========================================================== 1. For the year ended December 31, 2001, for Non-Service shares and for the period from July 16, 2001 (inception of offering) to December 31, 2001, for Service shares.
-------------------------------------------------------------------------------- 3. Purchases and Sales of Securities The aggregate cost of purchases and proceeds from sales of securities, other than short-term obligations, for the year ended December 31, 2002, were $37,836,922 and $26,729,121, respectively. As of December 31, 2002, unrealized appreciation (depreciation) based on cost of securities for federal income tax purposes of $25,952,117 was composed of: Gross unrealized appreciation $ 2,193,029 Gross unrealized depreciation (2,154,893) ----------- Net unrealized appreciation $ 38,136 =========== The difference between book-basis and tax-basis unrealized appreciation and depreciation, if applicable, is attributable primarily to the tax deferral of losses on wash sales, or return of capital dividends, and the realization for tax purposes of unrealized gain (loss) on certain futures contracts, investments in passive foreign investment companies, and forward foreign currency exchange contracts. -------------------------------------------------------------------------------- 4. 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 of 0.75% of the first $200 million of average annual net assets, 0.72% of the next $200 million, 0.69% of the next $200 million, 0.66% of the next $200 million and 0.60% of average annual net assets over $800 million. -------------------------------------------------------------------------------- Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager, acts as the transfer and shareholder servicing agent for the Fund. The Fund pays OFS a $19.75 per account fee. 28 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Additionally, funds offered in variable annuity separate accounts are subject to minimum fees of $5,000 for assets of less than $10 million and $10,000 for assets of $10 million or more. The Fund is subject to the minimum fee in the event that the per account fee does not equal or exceed the applicable minimum fee. OFS has voluntarily agreed to limit transfer and shareholder servicing agent fees up to an annual rate of 0.35% of average net assets of the Fund. This undertaking may be amended or withdrawn at any time. -------------------------------------------------------------------------------- Distribution and Service Plan for Service Shares. The Fund has adopted a Distribution and Service Plan for Service shares to pay OppenheimerFunds Distributor, Inc., the Distributor, for distribution-related services for the Fund's Service shares. Under the Plan, payments are made quarterly at an annual rate of up to 0.25% of the average annual net assets of the Service shares of the Fund. For the year ended December 31, 2002, payments under the Service Plan totaled $5,396. -------------------------------------------------------------------------------- 5. Foreign Currency Contracts A foreign currency contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. The Fund may enter into foreign currency contracts for operational purposes and to seek to protect against adverse exchange rate fluctuations. Risks to the Fund include the potential inability of the counterparty to meet the terms of the contract. The net U.S. dollar value of foreign currency underlying all contractual commitments held by the Fund and the resulting unrealized appreciation or depreciation are determined using foreign currency exchange rates as provided by a reliable bank, dealer or pricing service. Unrealized appreciation and depreciation on foreign currency contracts are reported in the Statement of Assets and Liabilities as a receivable or payable and in the Statement of Operations with the change in unrealized appreciation or depreciation. The Fund may realize a gain or loss upon the closing or settlement of the foreign currency transactions. Such realized gains and losses are reported with all other foreign currency gains and losses in the Statement of Operations. As of December 31, 2002, the Fund had outstanding foreign currency contracts as follows:
Expiration Contract Valuation as of Unrealized Contract Description Date Amount (000s) December 31, 2002 Appreciation -------------------------------------------------------------------------------------- Contracts to Sell Canadian Dollar (CAD) 1/2/03 4CAD $2,562 $4
-------------------------------------------------------------------------------- 6. Illiquid or Restricted Securities As of December 31, 2002, investments in securities included issues that are illiquid or restricted. Restricted securities are often purchased in private placement transactions, are not registered under the Securities Act of 1933, may have contractual restrictions on resale, and are valued under methods approved by the Board of Trustees as reflecting fair value. A security may also be considered illiquid if it lacks a readily available market or if its valuation has not changed for a certain period of time. The Fund intends to invest no more than 15% of its net assets (determined at the time of purchase and reviewed periodically) in illiquid or restricted securities. Certain restricted securities, eligible for resale to qualified institutional investors, are not subject to that limitation. The aggregate value of illiquid or restricted securities subject to this limitation as of December 31, 2002 was $17,043, which represents 0.07% of the Fund's net assets, all of which is considered restricted. Information concerning restricted securities is as follows: Acquisition Valuation as of Unrealized Security Date Cost December 31, 2002 Depreciation ------------------------------------------------------------------------------- Stocks and/or Warrants Canadian 88 Energy Corp. 6/4/02 $19,418 $17,043 $2,375 29 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA INDEPENDENT AUDITORS' REPORT -------------------------------------------------------------------------------- To the Board of Trustees and Shareholders of Oppenheimer Main Street Small Cap Fund/VA: We have audited the accompanying statement of assets and liabilities of Oppenheimer Main Street Small Cap Fund/VA, which is a series of Oppenheimer Variable Account Funds, including the statement of investments, as of December 31, 2002, 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 the periods indicated. These financial statements and financial highlights are the responsibility of the Fund's 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 auditing standards generally accepted in the United States of America. 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. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2002, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. 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 Oppenheimer Main Street Small Cap Fund/VA as of December 31, 2002, 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 the periods indicated, in conformity with accounting principles generally accepted in the United States of America. Deloitte & Touche LLP Denver, Colorado January 23, 2003 30 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA FEDERAL INCOME TAX INFORMATION Unaudited -------------------------------------------------------------------------------- In early 2003, shareholders of record received information regarding all dividends and distributions paid to them by the Fund during calendar year 2002. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service. The foregoing information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations which may affect your individual tax return and the many variations in state and local tax regulations, we recommend that you consult your tax advisor for specific guidance. 31 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA TRUSTEES AND OFFICERS -------------------------------------------------------------------------------- Name, Position(s) Held Principal Occupation(s) During Past 5 Years; Other with Fund, Length of Trusteeships/Directorships Held by Trustee; Number Service, Age of Portfolios in Fund Complex Currently Overseen by Trustee INDEPENDENT The address of each Trustee in the chart below is TRUSTEES 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Trustee serves for an indefinite term, until his or her resignation, retirement, death or removal. James C. Swain, Formerly, Chief Executive Officer (until August Chairman and Trustee 27, 2002) of the Board II Funds, Vice Chairman (since 1998) (until January 2, 2002) of OppenheimerFunds, Inc. Age: 69 (the Manager) and President and a director (until 1997) of Centennial Asset Management Corporation (a wholly-owned investment advisory subsidiary of the Manager). Oversees 41 portfolios in the OppenheimerFunds complex. William L. Armstrong, Chairman of the following private mortgage banking Trustee (since 1999) companies: Cherry Creek Mortgage Company (since Age: 65 1991), Centennial State Mortgage Company (since 1994), The El Paso Mortgage Company (since 1993), Transland Financial Services, Inc. (since 1997); Chairman of the following private companies: Great Frontier Insurance (insurance agency) (since 1995) and Ambassador Media Corporation (since 1984); a director of the following public companies: Storage Technology Corporation (computer equipment company) (since 1991), Helmerich & Payne, Inc. (oil and gas drilling/production company) (since 1992), UNUMProvident (insurance company) (since 1991). Formerly Director of International Family Entertainment (television channel) (1992-1997) and Natec Resources, Inc. (air pollution control equipment and services company) (1991-1995), Frontier Real Estate, Inc. (residential real estate brokerage) (1994-1999), and Frontier Title (title insurance agency) (1995-June 1999); a U.S. Senator (January 1979-January 1991). Oversees 41 portfolios in the OppenheimerFunds complex. Robert G. Avis, Formerly, Director and President of A.G. Edwards Trustee (since 1998) Capital, Inc. (General Partner of private equity Age: 71 funds) (until February 2001); Chairman, President and Chief Executive Officer of A.G. Edwards Capital, Inc. (until March 2000); Vice Chairman and Director of A.G. Edwards, Inc. and Vice Chairman of A.G. Edwards & Sons, Inc. (its brokerage company subsidiary) (until March 1999); Chairman of A.G. Edwards Trust Company and A.G.E. Asset Management (investment advisor) (until March 1999); and a Director (until March 2000) of A.G. Edwards & Sons and A.G. Edwards Trust Company. Oversees 41 portfolios in the OppenheimerFunds complex. George C. Bowen, Formerly (until April 1999): Senior Vice President Trustee (since 1998) (from September 1987) and Treasurer (from March Age: 66 1985) of the Manager; Vice President (from June 1983) and Treasurer (since March 1985) of OppenheimerFunds Distributor, Inc. (a subsidiary of the Manager); Senior Vice President (since February 1992), Treasurer (since July 1991) Assistant Secretary and a director (since December 1991) of Centennial Asset Management Corporation; Vice President (since October 1989) and Treasurer (since April 1986) of HarbourView Asset Management Corporation (an investment advisory subsidiary of the Manager); President, Treasurer and a director (June 1989-January 1990) of Centennial Capital Corporation (an investment advisory subsidiary of the Manager); Vice President and Treasurer (since August 1978) and Secretary (since April 1981) of Shareholder Services, Inc. (a transfer agent subsidiary of the Manager); Vice President, Treasurer and Secretary (since November 1989) of Shareholder Financial Services, Inc. (a transfer agent subsidiary of the Manager); Assistant Treasurer (since March 1998) of Oppenheimer Acquisition Corp. (the Manager's parent corporation); Treasurer (since November 1989) of Oppenheimer Partnership Holdings, Inc. (a holding company subsidiary of the Manager); Vice President and Treasurer (since July 1996) of Oppenheimer Real Asset Management, Inc. (an investment advisory subsidiary of the Manager); Chief Executive Officer and director (since March 1996) of MultiSource Services, Inc. (a broker-dealer subsidiary of the Manager); Treasurer (since October 1997) of OppenheimerFunds International Ltd. and Oppenheimer Millennium Funds plc (offshore fund management subsidiaries of the Manager). Oversees 41 portfolios in the OppenheimerFunds complex. Edward L. Cameron, A member of The Life Guard of Mount Vernon, Trustee (since 1999) (George Washington's home) (since June 2000). Age: 64 Formerly (March 2001-May 2002) Director of Genetic ID, Inc. and its subsidiaries (a privately held biotech company); a partner with PricewaterhouseCoopers LLP (from 1974-1999) (an accounting firm) and Chairman (from 1994-1998), Price Waterhouse LLP Global Investment Management Industry Services Group. Oversees 41 portfolios in the OppenheimerFunds complex. Jon S. Fossel, Chairman and Director (since 1998) of Rocky Trustee (since 1998) Mountain Elk Foundation (a not-for-profit Age: 60 foundation); and a director (since October 1999) of P.R. Pharmaceuticals (a privately held company) and UNUMProvident (an insurance company) (since June 1, 2002). Formerly Chairman and a director (until October 1996) and President and Chief Executive Officer (until October 1995) of the Manager; President, Chief Executive Officer and a director of Oppenheimer Acquisition Corp., Shareholders Services Inc. and Shareholder Financials Services, Inc. (until October 1995). Oversees 41 portfolios in the OppenheimerFunds complex. 32 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA Sam Freedman, A trustee or director of other Oppenheimer funds. Trustee (since 1998) Formerly (until October 1994) Mr. Freedman held Age: 62 several positions in subsidiary or affiliated companies of the Manager. Oversees 41 portfolios in the OppenheimerFunds complex. Beverly L. Hamilton, Trustee (since 1996) of MassMutual Institutional Trustee (since 2002) Funds and of MML Series Investment Fund (open-end Age: 56 investment companies); Director of MML Services (since April 1987) and America Funds Emerging Markets Growth Fund (since October 1991) (both are investment companies), The California Endowment (a philanthropy organization) (since April 2002), and Community Hospital of Monterey Peninsula, (since February 2002); a trustee (since February 2000) of Monterey International Studies (an educational organization), and an advisor to Unilever (Holland)'s pension fund and to Credit Suisse First Boston's Sprout venture capital unit. Mrs. Hamilton also is a member of the investment committees of the Rockefeller Foundation, the University of Michigan and Hartford Hospital. Formerly, President (February 1991-April 2000) ARCO Investment Management Company. Oversees 40 portfolios in the OppenheimerFunds complex. Robert J. Malone, Director (since 2001) of Jones Knowledge, Inc. (a Trustee (since 2002) privately held company), U.S. Exploration, Inc., Age: 58 (since 1997), Colorado UpLIFT (a non-profit organization) (since 1986) and a trustee of the Gallagher Family Foundation (since 2000). Formerly, Chairman of U.S. Bank (a subsidiary of U.S. Bancorp and formerly Colorado National Bank,) (July 1996-April 1, 1999) and a director of Commercial Assets, Inc. (1993-2000). Oversees 40 portfolios in the OppenheimerFunds complex. F. William Marshall, Jr., Trustee (since 1996) of MassMutual Institutional Trustee (since 2000) Funds and of MML Series Investment Fund (open-end Age: 60 investment companies); Trustee and Chairman (since May 1987) of the investment committee for the Worcester Polytech Institute; President and Treasurer (since January 1999) of the SIS Fund (a private not for profit charitable organization); Trustee (since 1995) of the Springfield Library and Museum Association; Trustee (since 1996) of the Community Music School of Springfield; Member of the investment committee of the Community Foundation of Western Massachusetts (since 1998). Formerly, Chairman (January 1999-July 1999) of SIS & Family Bank, F.S.B. (formerly SIS Bank); President, Chief Executive Officer and Director (May 1993-December 1998) of SIS Bankcorp, Inc. and SIS Bank (formerly Springfield Institution for Savings) and Executive Vice President (January 1999-July 1999) of Peoples Heritage Financial Group, Inc. Oversees 41 portfolios in the OppenheimerFunds complex. -------------------------------------------------------------------------------- INTERESTED TRUSTEE The address of Mr. Murphy in the chart below is AND OFFICER 498 Seventh Avenue, New York, NY 10018. Mr. Murphy serves for an indefinite term, until his resignation, retirement, death or removal. John V. Murphy, Chairman, Chief Executive Officer and director President and Trustee (since June 2001) and President (since September (since 2001) 2000) of the Manager; President and a director or Age: 53 trustee of other Oppenheimer funds; President and a director (since July 2001) of Oppenheimer Acquisition Corp. and of Oppenheimer Partnership Holdings, Inc.; a director (since November 2001) of OppenheimerFunds Distributor, Inc.; Chairman and a director (since July 2001) of Shareholder Services, Inc. and of Shareholder Financial Services, Inc.; President and a director (since July 2001) of OppenheimerFunds Legacy Program (a charitable trust program established by the Manager); a director of the following investment advisory subsidiaries of OppenheimerFunds, Inc.: OFI Institutional Asset Management, Inc. and Centennial Asset Management Corporation (since November 2001), HarbourView Asset Management Corporation and OFI Private Investments, Inc. (since July 2001); President (since November 1, 2001) and a director (since July 2001) of Oppenheimer Real Asset Management, Inc.; a director (since November 2001) of Trinity Investment Management Corp. and Tremont Advisers, Inc. (investment advisory affiliates of the Manager); Executive Vice President (since February 1997) of Massachusetts Mutual Life Insurance Company (the Manager's parent company); a director (since June 1995) of DLB Acquisition Corporation (a holding company that owns the shares of David L. Babson & Company, Inc.); formerly, Chief Operating Officer (September 2000-June 2001) of the Manager; President and trustee (November 1999-November 2001) of MML Series Investment Fund and MassMutual Institutional Funds (open-end investment companies); a director (September 1999-August 2000) of C.M. Life Insurance Company; President, Chief Executive Officer and director (September 1999-August 2000) of MML Bay State Life Insurance Company; a director (June 1989-June 1998) of Emerald Isle Bancorp and Hibernia Savings Bank (a wholly-owned subsidiary of Emerald Isle Bancorp). Oversees 69 portfolios in the OppenheimerFunds complex. 33 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA TRUSTEES AND OFFICERS Continued -------------------------------------------------------------------------------- OFFICERS The address of the Officers in the chart below is as follows: for Messrs. Albers, Zack and Zavanelli, 498 Seventh Avenue, New York, NY 10018, for Mr. Wixted, 6803 S. Tucson Way, Centennial, CO 80112-3924. Each Officer serves for an annual term or until his earlier resignation, retirement, death or removal. Charles Albers, Senior Vice President (since April 1998) of the Vice President (since 2001) Manager; a Certified Financial Analyst; formerly a Age: 62 Vice President and portfolio manager for Guardian Investor Services, the investment management subsidiary of The Guardian Life Insurance Company (1972-April 1998). An officer of 6 portfolios in the OppenheimerFunds complex Vice President (since November 2000) of the Manager; a Chartered Financial Analyst; Prior to joining the Manager in May 1998 he was President of Waterside Capital Management, a registered investment advisor (August 1995-April 1998) and a financial research analyst for Elder Research (June 1997-April 1998). An officer of 2 portfolios in the OppenheimerFunds complex. Mark Zavanelli, Vice President (since November 2000) of the Vice President (since 2001) Manager; a Chartered Financial Analyst; Prior to Age: 32 joining the Manager in May 1998 he was President of Waterside Capital Management, a registered investment advisor (August 1995 - April 1998) and a financial research analyst for Elder Research (June 1997 - April 1998). An officer of 2 portfolios in the OppenheimerFunds complex. Brian W. Wixted, Senior Vice President and Treasurer (since March Treasurer, Principal 1999) of the Manager; Treasurer (since March 1999) Financial and Accounting of HarbourView Asset Management Corporation, Officer (since 1999) Shareholder Services, Inc., Oppenheimer Real Asset Age: 43 Management Corporation, Shareholder Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and Oppenheimer Millennium Funds plc (since May 2000) and OFI Institutional Asset Management, Inc. (since November 2000); Treasurer and Chief Financial Officer (since May 2000) of Oppenheimer Trust Company (a trust company subsidiary of the Manager); Assistant Treasurer (since March 1999) of Oppenheimer Acquisition Corp. and OppenheimerFunds Legacy Program (since April 2000); formerly Principal and Chief Operating Officer (March 1995-March 1999), Bankers Trust Company-Mutual Fund Services Division. An officer of 85 portfolios in the OppenheimerFunds complex. Robert G. Zack, Senior Vice President (since May 1985) and General Vice President and Secretary Counsel (since February 2002) of the Manager; (since 2001) General Counsel and a director (since November Age: 54 2001) of OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel (since November 2001) of HarbourView Asset Management Corporation; Vice President and a director (since November 2000) of Oppenheimer Partnership Holdings, Inc.; Senior Vice President, General Counsel and a director (since November 2001) of Shareholder Services, Inc., Shareholder Financial Services, Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI Institutional Asset Management, Inc.; General Counsel (since November 2001) of Centennial Asset Management Corporation; a director (since November 2001) of Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director (since November 2001) of OppenheimerFunds International Ltd.; Vice President (since November 2001) of OppenheimerFunds Legacy Program; Secretary (since November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel (November 2001-February 2002) and Associate General Counsel (May 1981-October 2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May 1985-November 2001), Shareholder Financial Services, Inc. (November 1989-November 2001); OppenheimerFunds International Ltd. And Oppenheimer Millennium Funds plc (October 1997-November 2001). An officer of 85 portfolios in the OppenheimerFunds complex. The Fund's Statement of Additional Information contains additional information about the Fund's Trustees and is available without charge upon request. 34 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA OPPENHEIMER MAIN STREET SMALL CAP FUND(R)/VA A Series of Oppenheimer Variable Account Funds ------------------------------------------------------------------------------- Investment Advisor OppenheimerFunds, Inc. ------------------------------------------------------------------------------- Distributor OppenheimerFunds Distributor, Inc. ------------------------------------------------------------------------------- Transfer Agent OppenheimerFunds Services ------------------------------------------------------------------------------- Independent Auditors Deloitte & Touche LLP ------------------------------------------------------------------------------- Legal Counsel to the Fund Myer, Swanson, Adams & Wolf, P.C. ------------------------------------------------------------------------------- Legal Counsel to the Mayer Brown Rowe & Maw Independent Trustees For more complete information about Oppenheimer Main Street Small Cap Fund/VA, please refer to the Prospectus. To obtain a copy, call your financial advisor, or call OppenheimerFunds, Inc. at 1.800.981.2871. 35 | OPPENHEIMER MAIN STREET SMALL CAP FUND/VA [LOGO] OppenheimerFunds(R) Distributor, Inc. (C) Copyright 2003 OppenheimerFunds, Inc. All rights reserved.