ROCHESTER FUND MUNICIPALS
                  SUPPLEMENT DATED DECEMBER 29, 1997 TO THE
           STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 16, 1997


This Supplement changes the Statement of Additional Information as follows:

1. The  second  paragraph  under the  heading  "Municipal  Leases"  on page 4 is
deleted and replaced with the following:

            In  addition  to  the  "non-appropriation"  and  "abatement"  risks,
      investments  in  Municipal  Leases  represent  a  relatively  new  type of
      financing.  As such,  Municipal Leases have not yet developed the depth of
      marketability associated with more conventional Municipal Obligations. The
      Fund will seek to minimize  these risks by investing  not more than 10% of
      its total  assets in  Municipal  Leases that  contain  "non-appropriation"
      clauses,  and  by  investing  only  in  those   "non-appropriation"  lease
      obligations  where (1) the nature of the leased  equipment  or property is
      such that its ownership or use is essential to a governmental  function of
      the  municipality,  (2)  appropriate  covenants  will be obtained from the
      municipal  obligor  prohibiting  the  substitution  or purchase of similar
      equipment if lease  payments are not  appropriated,  (3) the lease obligor
      has maintained good market  acceptability  in the past, (4) the investment
      is of a size that will be attractive to institutional  investors,  and (5)
      the underlying  leased  equipment has elements of  portability  and/or use
      that enhance its  marketability in the event foreclosure on the underlying
      equipment is ever required.

2. The paragraph following item (11) under "Fundamental Investment Restrictions"
on page 20 is deleted and replaced with the following:

            For  the  purposes  of  the  Fund's  policy  not to  concentrate  in
      securities of issuers as described in the investment  restrictions  listed
      in the Prospectus and this Statement of Additional  Information,  the Fund
      has adopted the industry  classifications  set forth in Appendix A to this
      Statement of Additional  Information.  This is not a  fundamental  policy.
      Bonds which are refunded  with  escrowed U.S.  government  securities  are
      considered  U.S.  government  securities for purposes of the Fund's policy
      not to concentrate.

            Subject to the limitations  stated above,  the Fund may from time to
      time invest more than 25% of its total assets in a  particular  segment of
      the  municipal  securities  market,  including  but not limited to general
      obligation bonds,  pollution  control bonds,  hospital bonds, or any other
      municipal  segment  listed in Appendix A to this  Statement of  Additional
      Information.  In these  circumstances,  economic,  business,  political or
      other changes affecting one bond (such as proposed  legislation  affecting
      the  financing  of a project or  decreased  demand for a type of project )
      might  also  affect  other  bonds in the same  municipal  market  segment,
      thereby potentially increasing market risk to the Fund.


December 29, 1997                                                   PX0365.003