N-SAR EXHIBIT 77E


Pending Litigation. During 2009, a number of complaints have been filed in
federal courts against the Manager, the Distributor, and certain funds in the
Oppenheimer family of funds (the "Defendant Funds") advised by the Manager and
distributed by the Distributor - including the Fund. The complaints naming the
Fund as a defendant also name certain officers, trustees and former trustees of
the Fund. The plaintiffs seek class action status on behalf of purchasers of
shares of the Fund during a particular time period. The complaints against the
Fund raise claims under federal securities laws alleging that, among other
things, the disclosure documents of the Fund contained misrepresentations and
omissions, that the Fund's investment policies were not followed, and that the
Fund and the other defendants violated federal securities laws and regulations.
The plaintiffs seek unspecified damages, equitable relief and an award of
attorneys' fees and litigation expenses. The litigation against certain other
Oppenheimer funds is similar in nature. Additionally, a complaint has been
brought in state court against the Manager, the Distributor and another
subsidiary of the Manager (but not the Fund), on behalf of the Oregon College
Savings Plan Trust. The complaint alleges breach of contract, breach of
fiduciary duty, negligence and violation of state securities laws, and seeks
compensatory damages, equitable relief and an award of attorneys' fees and
litigation expenses.

         Other complaints have been filed in 2008 and 2009 in state and federal
courts, by investors who made investments through an affiliate of the Manager,
against the Manager and certain of its affiliates. Those complaints relate to
the alleged investment fraud perpetrated by Bernard Madoff and his firm
("Madoff") and allege a variety of claims including breach of fiduciary duty,
fraud, negligent misrepresentation, unjust enrichment, and violation of federal
and state securities laws and regulations, among others. They seek unspecified
damages, equitable relief, and an award of attorneys' fees and litigation
expenses. None of the suits have named the Distributor, any of the Oppenheimer
mutual funds or any of their independent Trustees or Directors. None of the
Oppenheimer funds invested in any funds or accounts managed by Madoff.

         The Manager believes that the lawsuits described above are without
legal merit and intends to defend them vigorously. The Fund's Board of Trustees
has also engaged counsel to defend the suits vigorously on behalf of the Fund,
the Fund's Board and the Trustees named in those suits. The Manager believes
that it is premature to render any opinion as to the likelihood of an outcome
unfavorable to it and that no estimate can be made with any degree of certainty
as to the amount or range of any potential loss. The Manager also believes that
these suits should not impair the ability of the Manager or the Distributor to
perform their respective duties to the Fund.