Registration No.  33-3692
                                                              File No.  811-3614

                      SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D.C. 20549
                                   FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933           [X]

      Pre-Effective Amendment No. __                              [   ]


      Post-Effective Amendment No. 30                             [X]
                                   --


                                           and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940                                                             [X]


      Amendment No. 35                                                     [X]
                    --


                                 Rochester Fund Municipals
                     (Exact Name of Registrant as Specified in Charter)

                   6803 South Tucson Way, Centennial, Colorado 80112-3924
                          (Address of Principal Executive Offices)

                                       (303) 768-3200
                              (Registrant's Telephone Number)

                                    Robert G. Zack, Esq.
--------------------------------------------------------------------------------------------
                                   OppenheimerFunds, Inc.
                 Two World Financial Center, 225 Liberty Street-11th Floor
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                                  New York, NY 10281-1008
                          (Name and Address of Agent for Service)

It is proposed that this filing will become effective (check appropriate box):


[   ] Immediately upon filing pursuant to paragraph (b)
[ X ] On April 29, 2005 pursuant to paragraph (b)
[   ] 60 days after filing pursuant to paragraph (a)(1)
[   ] On ____________ pursuant to paragraph (a)(1)
[   ] 75 days after filing pursuant to paragraph (a)(2)
[   ] On _______________ pursuant to paragraph (a)(2) of Rule 485


If appropriate, check the following box:

[   ]       This post-effective  amendment  designates a new effective date for a previously
     filed post-effective amendment.

Rochester Fund Municipals


Prospectus dated April 29, 2005




















As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved the Fund's securities nor has it determined that this
Prospectus is accurate or complete. It is a criminal offense to represent
otherwise.


















Rochester Fund Municipals is a diversified mutual fund. It seeks as high a
level of income exempt from federal income tax and New York State and New
York City personal income taxes as is consistent with its investment policies
and prudent investment management while seeking preservation of shareholders'
capital.

This Prospectus contains important information about the Fund's objective,
its investment policies, strategies and risks. It also contains important
information about how to buy and sell shares of the Fund and other account
features. Please read this Prospectus carefully before you invest and keep it
for future reference about your account.





















[logo] OppenheimerFunds, Inc.
The Right Way to Invest







5

Contents

            About the Fund
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            The  Fund's   Investment   Objective  and   Principal   Investment
Strategies

            Main Risks of Investing in the Fund

            The Fund's Past Performance

            Fees and Expenses of the Fund

            About the Fund's Investments

            How the Fund is Managed


      About Your Account
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            How to Buy Shares
            Class A Shares
            Class B Shares
            Class C Shares
            Class Y Shares

            Special Investor Services
            AccountLink
            PhoneLink
            OppenheimerFunds Internet Website

            How to Sell Shares
            By Checkwriting
            By Mail
            By Wire
            By Telephone

            How to Exchange Shares

            Shareholder Account Rules and Policies

            Dividends, Capital Gains and Taxes

            Financial Highlights








ABOUT THE FUND

The Fund's Investment Objective and Principal Investment Strategies

WHAT IS THE FUND'S INVESTMENT OBJECTIVE? The Fund seeks to provide as high a
level of income exempt from federal income tax and New York State and New
York City personal income taxes as is consistent with its investment policies
and prudent investment management while seeking preservation of shareholders'
capital.

WHAT DOES THE FUND MAINLY INVEST IN? To seek its investment objective:
o     As a fundamental policy, under normal market conditions, the Fund
      invests at least 80% of its net assets in tax-exempt securities, and
o     At least 75% of the Fund's investments in tax-exempt obligations must
      be investment grade. That means they must be securities rated in the
      four highest rating categories of a nationally-recognized rating
      organization or unrated securities assigned a comparable rating by the
      Fund's investment manager, OppenheimerFunds, Inc. (the "Manager").

      The Fund's tax-exempt investments can include a wide variety of debt
obligations (which are referred to as "New York municipal securities" in this
Prospectus), including securities issued by:
o     The State of New York or its political subdivisions (cities, towns and
      counties, for example),
o     Agencies, public authorities and instrumentalities (these are
      state-chartered corporations) of the State of New York, and
o     Territories, commonwealths and possessions of the United States (for
      example, Puerto Rico, Guam and the Virgin Islands) that pay interest
      that is exempt from federal income tax and New York State and New York
      City personal income taxes (in the opinion of the issuer's legal
      counsel when the security is issued).

      The Fund's investments have no maturity limitations and can include
municipal bonds (long-term obligations), municipal notes (short-term
obligations) and interests in municipal leases. At times, the Fund focuses on
longer-term securities to seek higher yields.  The Fund can buy general
obligation bonds as well as industrial development bonds and "private
activity" municipal securities that pay income subject to alternative minimum
taxation. To the extent the Fund invests in securities that may pay interest
subject to alternative minimum taxation, those securities will be counted
towards the Fund's policy regarding minimum investments in tax-exempt
securities as described above. A substantial percentage of the municipal
securities the Fund buys may be "callable," allowing the issuer of the
securities to redeem them before their maturity date. The Fund also uses
certain derivative investments such as "inverse floaters" and variable rate
obligations to try to increase income.  These investments are more fully
explained in "About the Fund's Investments," below.

HOW DOES THE PORTFOLIO MANAGEMENT TEAM DECIDE WHAT SECURITIES TO BUY OR SELL?
In selecting securities for the Fund, the portfolio management team generally
looks for triple tax-exempt municipal securities using a variety of factors,
which may change over time and may vary in particular cases. Currently, the
portfolio management team focuses on:
o     Finding  primarily  investment-grade  securities  that offer high income
       opportunities.
o     Buying a wide range of securities of different  issuers within the state
       of New York,  including  different  agencies  and  municipalities,  for
       portfolio diversification to help spread credit risks.
o     Looking for unrated bonds that might provide high income and  securities
      of smaller  issuers  that might be  overlooked  by other  investors  and
      funds.

      Investments are sold when the Manager believes better prospective
risk/return characteristics are possible from other investments.

WHO IS THE FUND DESIGNED FOR? The Fund is designed for investors who are
seeking income exempt from federal income tax and New York State and New York
City personal income taxes from a municipal bond fund focusing primarily on
investment-grade obligations.  The Fund does not seek capital appreciation.
Because it generally invests in tax-exempt securities, the Fund is not
appropriate for retirement plan accounts, nor is it designed for investors
whose main goal is capital growth. The Fund is intended to be a long-term
investment but is not a complete investment program.

Main Risks of Investing in the Fund


All  investments  have  risks  to some  degree.  The  Fund's  investments  are
subject to changes in their value from a number of factors,  described  below.
There is also the risk that poor security  selection by the Manager will cause
the Fund to  underperform  other funds having a similar  objective.  The share
prices of the Fund will  change  daily  based on changes  in market  prices of
securities and market conditions and in response to other economic events.


CREDIT RISK. Municipal securities are subject to credit risk.  Credit risk is
the risk that the issuer of a debt security might not make interest and
principal payments on the security as they become due. If an issuer fails to
pay interest, the Fund's income might be reduced. If an issuer fails to repay
principal, the value of that security and of the Fund's shares might be
reduced. A downgrade in an issuer's credit rating or other adverse news about
an issuer can reduce the value of that issuer's securities. To seek higher
income the Fund can invest up to 25% of its tax-exempt investments in
securities rated below investment grade, sometimes called "junk bonds."
Therefore, it may have greater credit risks than funds that buy only
investment-grade bonds.

INTEREST RATE RISKS. Municipal securities are debt securities that are
subject to changes in value when prevailing interest rates change. When
prevailing interest rates fall, the values of already-issued municipal
securities generally rise. When prevailing interest rates rise, the values of
already-issued municipal securities generally fall, and the securities may
sell at a discount from their face amount. The magnitude of these price
changes is generally greater for securities having longer maturities. At
times the Fund may emphasize investments in long-term securities to seek
higher income. When the average maturity of the Fund's portfolio is longer,
its share price may fluctuate more if interest rates change.

      Additionally, the Fund can buy variable and floating rate obligations.
When interest rates fall, the yields of these securities decline. Callable
bonds the Fund buys are more likely to be called when interest rates fall,
and the Fund might then have to reinvest the proceeds of the called
instrument in other securities that have lower yields, reducing the Fund's
income.


RISKS OF FOCUSING INVESTMENTS IN NEW YORK MUNICIPAL SECURITIES.
Even though the Fund is "diversified" as to 75% of its assets (which means
that, as to 75% of its assets, the Fund cannot invest more than 5% of its
assets in the securities of any one issuer), the Fund invests primarily in
New York municipal securities. Therefore, the value of the Fund's portfolio
is vulnerable to changes in economic, regulatory and political conditions in
New York that can affect the prices of those securities or the Fund's ability
to sell them at an acceptable price.

While the Fund's fundamental policies do not allow it to concentrate its
investments (that is, to invest 25% or more of its assets in a single
industry), municipal securities are not considered an "industry" under that
policy. At times the Fund can have a relatively high portion of its portfolio
holdings in particular segments of the municipal securities market, such as
general obligation bonds, tobacco settlement bonds or hospital bonds for
example, and therefore will be vulnerable to economic or legislative events
that affect issuers in particular segments of the municipal securities market.

      On September 11, 2001, terrorist attacks destroyed the World Trade
Center. Those attacks resulted in substantial loss of life and damage to
other buildings in the vicinity. The attacks also resulted in disruption of
public transportation and business and displacement of residents in the
immediate vicinity of the World Trade Center. Although New York City has been
largely reimbursed by the federal government for all of its direct costs and
expenses for response and redemption of the World Trade Center site, it is
not possible to quantify with any certainty the long-term impact of the
September 11 attack on the city and its economy. The Statement of Additional
Information contains further information concerning special investment
considerations for New York municipal securities.

Having a high percentage of its assets invested in the municipal securities
of a single state and its municipal subdivisions could result in fluctuations
in the Fund's share prices and income due to economic, regulatory or
political problems in New York. The Statement of Additional Information
contains further information concerning special investment considerations for
New York municipal securities.


Tobacco Settlement Revenue Bonds. The Fund may invest a significant portion
of its assets in tobacco settlement revenue bonds.  Tobacco settlement
revenue bonds are secured by an issuing state's proportionate share in the
Master Settlement Agreement ("MSA"). The MSA is an agreement, reached out of
court in November 1998 between 46 states and nearly all the U.S. tobacco
manufacturers (approximately 99% of the current combined market share of
tobacco manufacturers). The MSA provides for payments annually by the
manufacturers to the states and jurisdictions in perpetuity, in exchange for
releasing all claims against the manufacturers and a pledge of no further
litigation. Tobacco manufacturers pay into a master escrow trust based on
their market share, and each state receives a fixed percentage of the payment
as set forth in the MSA.

A number of states have securitized the future flow of those payments by
selling bonds pursuant to indentures, some through distinct governmental
entities created for such purpose. The bonds are backed by the future revenue
flow that is used for principal and interest payments on the bonds. Annual
payments on the bonds, and thus risk to the Fund, are highly dependent on the
receipt of future settlement payments to the state or its governmental
entity, as well as several other factors. The actual amount of future
settlement payments, therefore, is dependent on many factors, including, but
not limited to, annual domestic cigarette shipments, cigarette consumption,
inflation and the financial capability of participating tobacco companies. As
a result, payments made by tobacco manufacturers could be negatively impacted
if the decrease in tobacco consumption is significantly greater than the
forecasted decline. A market share loss by the MSA companies to non-MSA
participating tobacco manufacturers would cause a downward adjustment in the
payment amounts. A participating manufacturer filing for bankruptcy also
could cause delays or reductions in bond payments. The MSA itself has been
subject to legal challenges and has, to date, withstood those challenges.
The Statement of Additional Information contains more detailed information
about the Fund's investments in tobacco settlement revenue bonds.


BORROWING FOR LEVERAGE. As a fundamental policy, the Fund can borrow from
banks in amounts up to 5% of its total assets for emergency purposes or to
buy portfolio securities. This use of "leverage" will subject the Fund to
greater costs than funds that do not borrow for leverage, and may also make
the Fund's share price more sensitive to interest rate changes.

RISKS OF DERIVATIVE INVESTMENTS.  The Fund can use derivatives to seek
increased returns. In general terms, a derivative investment is an investment
contract whose value depends on (or is derived from) the value of an
underlying asset, interest rate or index. Covered call options, "inverse
floaters" and variable rate obligations are examples of derivatives the Fund
can use. The Fund typically does not use hedging instruments, such as
options, to hedge investment risks.

      If the issuer of the derivative investment does not pay the amount due,
the Fund can lose money on its investment. Also, the underlying security or
investment on which the derivative is based on the derivative itself, might
not perform the way the Manager expected it to perform. If that happens, the
Fund will get less income than expected or its hedge might be unsuccessful,
and its share prices could fall. The Fund has limits on the amount of
particular types of derivatives it can hold. However, using derivatives can
increase the volatility of the Fund's share prices and can cause the Fund to
lose money on its investments. Some derivatives may be illiquid, making it
difficult for the Fund to sell them quickly at an acceptable price.

Inverse Floaters Have Special Risks. Variable rate bonds known as "inverse
      floaters" pay interest at rates that vary as the yields generally
      available on short-term tax-exempt bonds change. However, the yields on
      inverse floaters move in the opposite direction of yields on short-term
      bonds in response to market changes. As interest rates rise, inverse
      floaters produce less current income, and their market value can become
      volatile. Inverse floaters are a type of "derivative security." Some
      inverse floaters have a "cap," so that if interest rates rise above the
      "cap," the security pays additional interest income.  If rates do not
      rise above the "cap," the Fund will have paid an additional amount for
      a feature that proves worthless. The Fund's investment in inverse
      floaters cannot exceed 20% of its total assets.

HOW RISKY IS THE FUND OVERALL? The risks described above collectively form
the overall risk profile of the Fund and can affect the value of the Fund's
investments, its investment performance and its prices per share. Particular
investments and investment strategies also have risks. These risks mean that
you can lose money by investing in the Fund. When you redeem your shares,
they may be worth more or less than what you paid for them. There is no
assurance that the Fund will achieve its investment objective.


      The value of the Fund's investments and share prices will change over
time due to a number of factors. They include changes in the general bond
market, changes in the value of particular bonds or the income they pay
because of an event affecting the issuer or changes in interest rates that
can affect bond prices overall.


      Because the Fund focuses its investments in New York municipal
securities and can buy below-investment-grade securities, it will have
greater credit risks than municipal bond funds that invest in issuers of many
states or buy only investment-grade securities. Its focus on longer-term
bonds and its use of inverse floaters as well as other derivative investments
may cause greater fluctuations in the Fund's share prices in the short term
than short-term municipal bond funds or bond funds that do not invest in
derivatives.

An investment in the Fund is not a deposit of any bank, and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.


The Fund's Past Performance

The bar chart and table below show one measure of the risks of investing in
the Fund, by showing changes in the Fund's performance (for its Class A
shares) from year to year for the last 10 calendar years and by showing how
the average annual total returns of the Fund's shares, both before and after
taxes, compared to those of a broad-based market index and the Consumer Price
Index. The after-tax returns for the other classes of shares will vary.

      The after-tax returns are shown for Class A shares only and are
calculated using the historical highest individual federal marginal income
tax rates in effect during the periods shown, and do not reflect the impact
of state or local taxes. In certain cases, the figure representing "Return
After Taxes on Distributions and Sale of Fund Shares" may be higher than the
other return figures for the same period. A higher after-tax return results
when a capital loss occurs upon redemption and translates into an assumed tax
deduction that benefits the shareholder. The after-tax returns are calculated
based on certain assumptions mandated by regulation and your actual after-tax
returns may differ from those shown, depending on your individual tax
situation. The Fund's past investment performance, before and after taxes, is
not necessarily an indication of how the Fund will perform in the future.


Annual Total Returns (Class A) (as of December 31 each year)
[See appendix to prospectus for data in bar chart showing the annual total
returns]


Sales  charges  and taxes are not  included in the  calculations  of return in
this bar chart, and if those charges and taxes were included,  the returns may
be less than those shown.


During the period shown in the bar chart,  the highest return (not annualized)
before taxes for a calendar  quarter was 7.74% (1Qtr'95) and the lowest return
(not annualized) before taxes for a calendar quarter was -2.56% (2Qtr'04).



-------------------------------------------------------------------------------------
Average Annual Total Returns
------------------------------                        5 Years          10 Years
for    the    periods    ended                      (or life of       (or life of
December 31, 2004                   1 Year        class, if less)   class, if less)
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Class  A   Shares   (inception

5/15/86)                             2.16%             6.51%             6.63%
  Return Before Taxes                2.16%             6.51%             6.63%
  Return After Taxes on              3.52%             6.47%             6.59%
  Distributions
  Return    After   Taxes   on
  Distributions  and  Sale  of
  Fund Shares

-------------------------------------------------------------------------------------
Lehman Brothers Municipal
Bond Index (reflects no
deduction for fees, expenses

or taxes)                            4.48%             7.20%            7.06%1

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

Consumer Price Index                 3.26%             2.49%            2.43%1

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

Class  B   Shares   (inception       1.40%             6.32%             5.41%

3/17/97)
-------------------------------------------------------------------------------------

Class  C   Shares   (inception       5.40%             6.65%             5.20%

3/17/97)
-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------

Class  Y   Shares   (inception       7.50%             7.59%              N/A

4/28/00)
-------------------------------------------------------------------------------------
1.    From 12/31/94.

The Fund's average annual total returns include applicable sales charges:  for
Class A, the current maximum  initial sales charge of 4.75%;  for Class B, the
contingent  deferred  sales  charge of 5% (1-year)  and 2%  (5-year);  and for
Class C, the 1%  contingent  deferred  sales  charge  for the  1-year  period.
There is no sales charge for Class Y. Because Class B shares  convert to Class
A shares 72 months after purchase,  Class B  "life-of-class"  performance does
not include any contingent  deferred sales charge and uses Class A performance
for the period after  conversion.  The returns  measure the  performance  of a
hypothetical   account  and  assume  that  all  dividends  and  capital  gains
distributions  have been reinvested in additional  shares.  The performance of
the Fund's Class A shares is compared to the Lehman  Brothers  Municipal  Bond
Index,  an,  unmanaged  index of a broad range of  investment-grade  municipal
bonds that is a measure  of the  performance  of the  general  municipal  bond
market.  The Fund's  performance is also compared to the Consumer Price Index,
a   non-securities   index  that  measures  changes  in  the  inflation  rate.
Performance of the securities index includes  reinvestment of income, but does
not reflect  transaction cost, fees,  expenses or taxes and includes municipal
securities  from many  states  while the Fund  invests  primarily  in New York
municipal securities.

Fees and Expenses of the Fund

The following tables are meant to help you understand the fees and expenses
you may pay if you buy and hold shares of the Fund. The Fund pays a variety
of expenses directly for management of its assets, administration,
distribution of its shares and other services. Those expenses are subtracted
from the Fund's assets to calculate the Fund's net asset values per share.
All shareholders therefore pay those expenses indirectly. Shareholders pay
other expenses directly, such as sales charges and account transaction
charges. The numbers below are based on the Fund's expenses during its fiscal
year ended December 31, 2004.

------------------------------------------------------------------------------
Shareholder Fees (charges paid directly from your investment):
------------------------------------------------------------------------------
------------------------------------------------------------------------------
                           Class A      Class B      Class C       Class Y
                            Shares       Shares       Shares       Shares
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Maximum Sales Charge        4.75%         None         None         None
(Load) on purchases
(as % of offering price)
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Maximum Deferred Sales
Charge (Load) (as % of
the lower of the            None1         5%2          1%3          None
original offering price
or redemption proceeds)
------------------------------------------------------------------------------


-----------------------------------------------------------------------
Annual Fund Operating Expenses (deducted from Fund assets):
(% of average daily net assets)
-----------------------------------------------------------------------
-----------------------------------------------------------------------
                           Class A    Class B      Class C
                                                             Class Y
                             Shares     Shares     Shares    Shares
-----------------------------------------------------------------------
-----------------------------------------------------------------------

Management Fees              0.46%      0.46%       0.46%      0.46%

-----------------------------------------------------------------------
-----------------------------------------------------------------------
Distribution and/or          0.15%      1.00%       1.00%      None
Service (12b-1) Fees
-----------------------------------------------------------------------
-----------------------------------------------------------------------

Other Expenses               0.11%      0.13%       0.13%      0.09%

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

Total Annual Operating       0.72%      1.59%       1.59%      0.55%
Expenses

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

Expenses may vary in future years. "Other Expenses" include transfer agent
fees, custodial fees, accounting, administrative and legal expenses the Fund
pays. The "Other Expenses" in the table are based on among other things, the
fees the Fund would have paid if the transfer agent had not waived a portion
of its fees under a voluntary undertaking to the Fund to limit those fees to
0.35% of average daily net assets per fiscal year for all classes. That
undertaking may be amended or withdrawn at any time. For the Fund's fiscal
year ended December 31, 2004, the transfer agent fees did not exceed the
expense limitation described above.

1.    A  contingent   deferred  sales  charge  may  apply  to  redemptions  of
   investments  of $1  million  or more of  Class A  shares.  See  "How to Buy
   Shares" for details.
2.    Applies to  redemptions  in first year after  purchase.  The  contingent
   deferred  sales  charge  gradually  declines  from  5% to 1% in  years  one
   through six and is eliminated after that.
3.    Applies to shares redeemed within 12 months of purchase.


Examples.  The following examples are intended to help you compare the cost
of investing in the Fund with the cost of investing in other funds. The
examples assume that you invest $10,000 in a class of shares of the Fund for
the time periods indicated and reinvest your dividends and distributions.

      The first example assumes that you redeem all of your shares at the end
of those periods. The second example assumes that you keep your shares. Both
examples also assume that your investment has a 5% return each year and that
the class's operating expenses remain the same. Your actual costs may be
higher or lower because expenses will vary over time. Based on these
assumptions your expenses would be as follows:







--------------------------------------------------------------------------------
If shares are redeemed:     1 Year        3 Years       5 Years      10 Years
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Class A Shares                    $545          $695          $858       $1,330

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

Class B Shares                    $663          $806        $1,072      $1,4501

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

Class C Shares                    $263          $506          $872       $1,904

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

Class Y Shares                    $156          $177          $308         $691

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

--------------------------------------------------------------------------------
   If shares are not        1 Year        3 Years       5 Years      10 Years
       redeemed:
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Class A Shares                    $545          $695          $858       $1,330

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

Class B Shares                    $163          $506          $872      $1,4501

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

Class C Shares                    $163          $506          $872       $1,904

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

Class Y Shares                     $56          $177          $308         $691

--------------------------------------------------------------------------------
In the first  example,  expenses  include the initial sales charge for Class A
and the applicable  Class B or Class C contingent  deferred sales charges.  In
the second example,  the Class A expenses include the sales charge,  but Class
B and Class C expenses  do not  include  contingent  deferred  sales  charges.
There is no sales charge on Class Y shares.
1.    Class B  expenses  for years 7 through  10 are based on Class A expenses
   since  Class B shares  automatically  convert  to Class A shares  72 months
   after purchase.

About the Fund's Investments

THE FUND'S PRINCIPAL INVESTMENT POLICIES AND RISKS. The allocation of the
Fund's portfolio among different investments will vary over time based on the
Manager's evaluation of economic and market trends.  The Fund's portfolio
might not always include all of the different types of investments described
below.  The Statement of Additional Information contains more detailed
information about the Fund's investment policies and risks.

      The Manager tries to reduce risks by diversifying investments and by
carefully researching securities before they are purchased.  However, changes
in the overall market prices of municipal securities and the income they pay
can occur at any time. The yields and share prices of the Fund will change
daily based on changes in market prices of securities, interest rates and
market conditions and in response to other economic events.

Municipal Securities. The Fund buys municipal bonds and notes, certificates
      of participation in municipal leases and other debt obligations.
      Generally, these are debt obligations issued by the State of New York
      and its political subdivisions (such as cities, towns and counties). To
      seek a higher yield, the Fund also can invest in municipal securities
      other than New York municipal securities. Although any interest from
      those securities generally would be exempt from federal taxation, any
      such interest may be subject to New York State and New York City
      personal income tax. The Fund does not expect to invest a significant
      portion of its assets in securities that are not New York municipal
      securities.

                 What is a Municipal  Debt  Security?  A municipal  debt
                 security  essentially  is a loan  by the  buyer  of the
                 security  to the  issuer of the  security.  The  issuer
                 promises to pay back the  principal  amount of the loan
                 and  normally   pays   interest   exempt  from  federal
                 personal income taxes.

      Municipal securities are issued to raise money for a variety of public
      or private purposes, including financing state or local governments,
      specific projects or public facilities. The Fund can invest in
      municipal securities that are "general obligations," which are secured
      by the issuer's pledge of its full faith, credit and taxing power for
      the payment of principal and interest. Some debt securities, such as
      zero-coupon securities, do not pay current interest. Other securities
      may be subject to calls by the issuer to redeem the debt or to
      prepayment prior to their stated maturity.

      The Fund also can buy "revenue obligations," whose interest is payable
      only from the revenues derived from a particular facility or class of
      facilities, or a specific excise tax or other revenue source such as,
      e.g., tobacco revenue settlement bonds. Some of these revenue
      obligations are industrial development bonds and private activity bonds
      that pay interest that may be a tax preference item subject to
      alternative minimum taxation for investors subject to the alternative
      minimum tax. The Fund does not invest more than 5% of its total assets
      in industrial revenue bonds for an industrial user with less than three
      years' operating history if that user is responsible for interest and
      principal payments.

Municipal Lease Obligations.  Municipal leases are used by state and local
      governments to obtain financing to acquire land, equipment or
      facilities.  The Fund may invest in certificates of participation that
      represent a proportionate interest in payments made under municipal
      lease obligations. Most municipal leases, while secured by the leased
      property, are not general obligations of the issuing municipality. They
      often contain "non-appropriation" clauses that provide that the
      municipal government has no obligation to make lease or installment
      payments in future years unless money is appropriated on a yearly
      basis.

      If the government stops making payments or transfers its payment
      obligations to a private entity, the obligation could lose value or
      become taxable. Some of these obligations may not have an active
      trading market, which means that the Fund might have difficulty selling
      its investment at an acceptable price when it wants to. The Fund cannot
      invest more than 5% of its net assets in unrated or illiquid municipal
      leases.

Floating Rate/Variable Rate Obligations.  Some municipal securities have
      variable or floating interest rates. Variable rates are adjustable at
      stated periodic intervals.  Floating rates are automatically adjusted
      according to a specified market rate for those investments, such as the
      percentage of the prime rate of a bank, or the 91-day U.S. Treasury
      Bill rate. These obligations may be secured by bank letters of credit
      or other credit support arrangements. Inverse floaters, discussed under
      the Main Risks section above, are types of variable rate obligations.

Ratings of Municipal Securities the Fund Buys.  Most of the municipal
      securities the Fund buys are "investment grade" at the time of
      purchase. The Fund does not invest more than 25% of its tax-exempt
      investments in municipal securities that at the time of purchase are
      below investment grade. Investment-grade securities include rated
      securities within the four highest rating categories of a
      nationally-recognized rating organization such as Moody's Investors
      Service, Standard and Poor's, a division of McGraw Hill Companies,
      Inc., Fitch, Inc., or unrated securities that are judged by the Manager
      to be comparable to securities rated as investment grade. Rating
      definitions of the principal national rating organizations are provided
      in Appendix A to the Statement of Additional Information. All municipal
      securities, including investment-grade securities, are subject to risks
      of default. A reduction in the rating of a security after the Fund buys
      it will not automatically require the Fund to dispose of that
      security.  However, the Manager will evaluate those securities to
      determine whether to keep them in the Fund's portfolio.

      The Manager relies to some extent on credit ratings by
      nationally-recognized rating agencies when evaluating the credit risk
      of securities selected for the Fund's portfolio.  It may also use its
      own research and analysis to evaluate risks.  Many factors affect an
      issuer's ability to make timely payments, and the credit risks of a
      particular security may change over time.

      The Fund can invest a significant portion of its assets in unrated
      securities. Some of these unrated securities may not have an active
      trading market, which means that the Fund might have difficulty valuing
      them and selling them promptly at an acceptable price.

Special Credit Risks of Lower-Grade Securities. Municipal securities rated
      below investment grade usually offer higher yields than
      investment-grade securities but they are subject to greater price
      fluctuations and risks of loss of income and principal than
      investment-grade municipal securities. Securities that are (or that
      have fallen) below investment grade have a greater risk that the
      issuers may not meet their debt repayment obligations. They also may be
      less liquid than investment-grade securities, making it difficult for
      the Fund to sell them at an acceptable price. Those risks can reduce
      the Fund's share prices and the income it earns. The Fund will not
      invest more than 5% of its net assets in the securities of an issuer if
      the securities are rated "B" or below by a nationally-recognized rating
      organization or, if unrated, assigned an equivalent rating by the
      Manager.

CAN THE FUND'S INVESTMENT OBJECTIVE AND POLICIES CHANGE?  The Fund's Board of
Trustees can change non-fundamental investment policies without shareholder
approval, although significant changes will be described in amendments to
this Prospectus. Fundamental policies cannot be changed without the approval
of a majority of the Fund's outstanding voting shares. The Fund's investment
objective is a fundamental policy. Other investment restrictions that are
fundamental policies are listed in the Statement of Additional Information.
An investment policy is not fundamental unless this Prospectus or the
Statement of Additional Information says that it is.

OTHER INVESTMENT STRATEGIES.  To seek its objective, the Fund can use the
investment techniques and strategies described below. The Fund might not
always use all of them. These techniques have risks, although some are
designed to help reduce overall investment or market risks.

"When-Issued" and "Delayed-Delivery" Transactions.  The Fund can purchase
      municipal securities on a "when-issued" basis and can purchase or sell
      such securities on a "delayed-delivery" basis.  These terms refer to
      securities that have been created and for which a market exists, but
      which are not available for immediate delivery.  The Fund does not
      intend to enter into these transactions for speculative purposes.
      During the period between the purchase and settlement, no payment is
      made for the security and no interest accrues to the Fund from the
      investment until the Fund receives the security on settlement of the
      trade.  There is a risk of loss to the Fund if the value of the
      security declines prior to the settlement date. As a fundamental
      policy, securities purchased on a "when-issued" or "delayed-delivery"
      basis cannot exceed 10% of the Fund's net assets.

Illiquid and Restricted Securities.  Investments may be illiquid because they
      do not have an active trading market, making it difficult to value them
      or dispose of them promptly at an acceptable price. A restricted
      security may have a contractual restriction on its resale or cannot be
      sold publicly until it is registered under the Securities Act of 1933.
      The Fund will not invest more than 15% of its net assets in illiquid
      and restricted securities. That limit includes unrated or illiquid
      tax-exempt municipal leases that cannot be more than 5% of the Fund's
      net assets. Certain restricted securities that are eligible for resale
      to qualified institutional purchasers may not be subject to the 15%
      limit. The Manager monitors holdings of illiquid securities on an
      ongoing basis to determine whether to sell any holdings to maintain
      adequate liquidity.

Zero-Coupon Securities. The Fund can invest without limit in zero-coupon
      securities. These debt obligations do not pay interest prior to their
      maturity date or else they do not start to pay interest at a stated
      coupon rate until a future date. They are issued and traded at a
      discount from their face amount. The discount varies as the securities
      approach their maturity date (or the date interest payments are
      scheduled to begin). When interest rates change, zero-coupon securities
      are subject to greater fluctuations in their value than securities that
      pay current interest. The Fund accrues the discount on zero-coupon
      bonds as tax-free income on a current basis. The Fund may have to pay
      out the imputed income on zero-coupon securities without receiving
      actual cash payments currently.

Temporary Defensive and Interim Investments. In times of unstable or adverse
      market, economic or political conditions, the Fund can invest up to
      100% of its assets in temporary investments that are inconsistent with
      the Fund's principal investment strategies. Generally, the Fund's
      defensive or interim investments would be U.S. government securities or
      highly-rated corporate debt securities, prime commercial paper or
      certificates of deposit of domestic banks. The Fund also might hold
      these types of securities pending the investment of proceeds from the
      sale of portfolio securities or to meet anticipated redemptions of Fund
      shares. The income from some of these investments might not be tax
      exempt, and therefore when making those investments the Fund might not
      achieve its objective.


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

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


How the Fund is Managed

THE MANAGER. The Manager chooses the Fund's investments and handles its
day-to-day business. The Manager carries out its duties, subject to the
policies established by the Fund's Board of Trustees, under an investment
advisory agreement that states the Manager's responsibilities.  The agreement
sets the fees the Fund pays to the Manager and describes the expenses that
the Fund is responsible to pay to conduct its business.


      The Manager has been an investment adviser since 1960. The Manager and
its subsidiaries and controlled affiliates managed more than $170 billion in
assets as of March 31, 2005, including other Oppenheimer funds with more than
7 million shareholder accounts. The Manager is located at Two World Financial
Center, 225 Liberty Street, 11th Floor, New York, New York 10281-1008.

Advisory Fees. Under the Investment Advisory Agreement effective January 1,
2005, the Fund pays the Manager an advisory fee at an annual rate, payable
monthly, which declines on additional assets as the Fund grows: 0.54% of the
first $100 million of average daily net assets, 0.52% on the next $150
million, 0.47% on the next $1.75 billion, 0.46% on the next $3 billion, 0.45%
on the next $3 billion and 0.44% of average daily net assets over $8 billion.
For the calendar year ended December 31, 2004, the Fund paid the Manager
according to the following schedule: 0.54% of the first $100 million of
average daily net assets, 0.52% of the next $150 million, 0.47% on the next
$1.75 billion, 0.46% on the nexr $3 billion and 0.45% of average daily net
assets in excess of $5 billion. The Fund's management fee for its last fiscal
year ended December 31, 2004, under the fee schedule then in effect, was
0.46% of average annual net assets for each class of shares.

Portfolio Managers. The Fund's portfolio is managed by a team of investment
     professionals, including Ronald H. Fielding, Daniel G. Loughran, Scott
     Cottier and Troy Willis, who are primarily responsible for the
     day-to-day management of the Fund's investments.

     Mr. Fielding has been a Portfolio Manager of the Fund since January
     1996.  Mr. Fielding has been a Senior Vice President of the Manager
     since January 1996 and Chairman of the Rochester Division of the Manager
     since January 1996.  He is an officer of other funds in the
     OppenheimerFunds complex.  Mr. Fielding is the team leader and lead
     manager and a trader for the Fund.

     Mr. Loughran has been a Senior Portfolio Manager of the Fund since April
     2001.  Mr. Loughran has been a Vice President of the Manager since April
     2001 and has been a portfolio manager with the Manager since 1999.  He
     is a portfolio manager of other funds in the OppenheimerFunds complex.
     Mr. Loughran is both a senior portfolio manager and a trader for the
     Fund.

     Mr. Cottier has been a Portfolio Manager of the Fund since 2002.  Mr.
     Cottier has been a Vice President of the Manager since 2002.  Prior to
     joining the Manager in 2002, Mr. Cottier was a portfolio manager and
     trader at Victory Capital Management from 1999 to 2002.  He is a
     portfolio manager of other funds in the OppenheimerFunds complex.  Mr.
     Cottier is both a portfolio manager and a trader for the Fund.

     Mr. Willis has been an Associate Portfolio Manager of both the Fund and
     the Manager since 2003. Prior to joining the Manager in 2003, Mr. Willis
     was a Corporate Attorney for Southern Resource Group from 1999 to 2003.
     He is an associate portfolio manager of other funds in the
     OppenheimerFunds complex. Mr. Willis is both an associate portfolio
     manager and a trader for the Fund.

Additional information about the Fund's Portfolio Management Team, regarding
compensation, other accounts managed and their ownership of Fund shares, is
provided in the Statement of Additional Information.

PENDING LITIGATION.  A consolidated amended complaint has been filed as
putative derivative and class actions against the Manager, Distributor
and Transfer Agent, as well as 51 of the Oppenheimer funds (collectively
the "funds") including the Fund, 31 present and former Directors or
Trustees and 9 present and former officers of certain of the funds. This
complaint, initially filed in the U.S. District Court for the Southern
District of New York on January 10, 2005 as amended on March 4, 2005,
consolidates into a single action and amends six individual
previously-filed putative derivative and class action complaints. Like
those prior complaints, the complaint alleges that the Manager charged
excessive fees for distribution and other costs, improperly used assets
of the funds in the form of directed brokerage commissions and 12b-1
fees to pay brokers to promote sales of the funds, and failed to
properly disclose the use of fund assets to make those payments in
violation of the Investment Company Act and the Investment Advisers Act
of 1940. Also, like those prior complaints, the complaint further
alleges that by permitting and/or participating in those actions, the
Directors/Trustees and the Officers breached their fiduciary duties to
Fund shareholders under the Investment Company Act and at common law.
The complaint seeks unspecified compensatory and punitive damages,
rescission of the funds' investment advisory agreements, an accounting
of all fees paid, and an award of attorneys' fees and litigation
expenses.


      The Manager and the Distributor believe the claims asserted in these
law suits to be without merit, and intend to defend the suits vigorously. The
Manager and the Distributor do not believe that the pending actions are
likely to have a material adverse effect on the Fund or on their ability to
perform their respective investment advisory or distribution agreements with
the Fund.

ABOUT YOUR ACCOUNT

How to Buy Shares

You can buy shares several ways, as described below. The Fund's Distributor,
OppenheimerFunds Distributor, Inc., may appoint servicing agents to accept
purchase (and redemption) orders. The Distributor, in its sole discretion,
may reject any purchase order for the Fund's shares.

Buying Shares Through Your Dealer. You can buy shares through any dealer,
      broker or financial institution that has a sales agreement with the
      Distributor. Your dealer will place your order with the Distributor on
      your behalf.

Buying Shares Through the Distributor. Complete an OppenheimerFunds new
      account application and return it with a check payable to
      "OppenheimerFunds Distributor, Inc." Mail it to P.O. Box 5270, Denver,
      Colorado 80217. If you don't list a dealer on the application, the
      Distributor will act as your agent in buying the shares. Class B or
      Class C shares may not be purchased by an investor directly from the
      Distributor without the investor designating another broker-dealer.
      However, we recommend that you discuss your investment with a financial
      advisor before you make a purchase to be sure that the Fund is
      appropriate for you.

o     Paying by Federal Funds Wire. Shares purchased through the Distributor
      may be paid for by Federal Funds wire. The minimum investment is
      $2,500. Before sending a wire, call the Distributor's Wire Department
      at 1.800.225.5677 to notify the Distributor of the wire and to receive
      further instructions.
o     Buying Shares Through OppenheimerFunds AccountLink. With AccountLink,
      you pay for shares by electronic funds transfers from your bank
      account. Shares are purchased for your account by a transfer of money
      from your bank account through the Automated Clearing House (ACH)
      system. You can provide those instructions automatically, under an
      Asset Builder Plan, described below, or by telephone instructions using
      OppenheimerFunds PhoneLink, also described below. Please refer to
      "AccountLink," below for more details.
o     Buying Shares Through Asset Builder Plans. You may purchase shares of
      the Fund automatically each month from your account at a bank or other
      financial institution under an Asset Builder Plan with AccountLink.
      Details are in the Asset Builder application and the Statement of
      Additional Information.

WHAT IS THE MINIMUM AMOUNT YOU MUST INVEST? In most cases, you can buy Fund
shares with a minimum initial investment of $1,000 and make additional
investments at any time with as little as $50. There are reduced minimums
available under the following special investment plans:
o     By using an Asset Builder Plan or Automatic Exchange Plan (details are
      in the Statement of Additional Information), or government allotment
      plan, you can make subsequent investments (after making an initial
      investment of $500) for as little as $50. For any type of account
      established under one of these plans prior to November 1, 2002, the
      minimum additional investment will remain $25.
o     The minimum investment requirement does not apply to reinvesting
      dividends from the Fund or other Oppenheimer funds (a list of them
      appears in the Statement of Additional Information, or you can ask your
      dealer or call the Transfer Agent), or reinvesting distributions from
      unit investment trusts that have made arrangements with the Distributor.

AT WHAT PRICE ARE SHARES SOLD? Shares are sold at their offering price which
is the net asset value per share plus any initial sales charge that applies.
The offering price that applies to a purchase order is based on the next
calculation of the net asset value per share that is made after the
Distributor receives the purchase order at its offices in Colorado, or after
any agent appointed by the Distributor receives the order.


Net Asset Value. The Fund calculates the net asset value of each class of
      shares as of the close of The New York Stock Exchange (the "Exchange"),
      on each day the Exchange is open for trading (referred to in this
      Prospectus as a "regular business day"). The Exchange normally closes
      at 4:00 p.m., Eastern time, but may close earlier on some days. All
      references to time in this Prospectus mean "Eastern time."


            The net asset value per share for a class of shares on a "regular
      business day" is determined by dividing the value of the Fund's net
      assets attributable to that class by the number of shares of that class
      outstanding on that day.  To determine net asset values, the Fund
      assets are valued primarily on the basis of current market quotations.
      If market quotations are not readily available or do not accurately
      reflect fair value for a security (in the Manager's judgment) or if a
      security's value has been materially affected by events occurring after
      the close of the exchange or market on which the security is
      principally traded, that security may be valued by another method that
      the Board of Trustees believes accurately reflects the fair value.

            The Board has adopted valuation procedures for the Fund and has
      delegated the day-to-day responsibility for fair value determinations
      to the Manager's Valuation Committee.  Fair value determinations by the
      Manager are subject to review, approval and ratification by the Board
      at its next scheduled meeting after the fair valuations are
      determined.  In determining whether current market prices are readily
      available and reliable, the Manager monitors the information it
      receives in the ordinary course of its investment management
      responsibilities for significant events that it believes in good faith
      will affect the market prices of the securities of issuers held by the
      Fund.  Those may include events affecting specific issuers (for
      example, a halt in trading of the securities of an issuer on an
      exchange during the trading day) or events affecting securities markets
      (for example, a foreign securities market closes early because of a
      natural disaster).

            If, after the close of the principal market on which a security
      held by the Fund is traded and before the time as of which the Fund's
      net asset values are calculated that day, a significant event occurs
      that the Manager learns of and believes in the exercise of its judgment
      will cause a material change in the value of that security from the
      closing price of the security on the principal market on which it is
      traded, the Manager will use its best judgment to determine a fair
      value for that security.

            The Manager believes that foreign securities values may be
      affected by volatility that occurs in U.S. markets on a trading day
      after the close of foreign securities markets.  The Manager's fair
      valuation procedures therefore include a procedure whereby foreign
      securities prices may be "fair valued" to take those factors into
      account.

The Offering Price. To receive the offering price for a particular day, the
      Distributor or its designated agent must receive your order by the time
      the Exchange closes that day. If your order is received on a day when
      the Exchange is closed or after it has closed, the order will receive
      the next offering price that is determined after your order is received.

Buying Through a Dealer. If you buy shares through a dealer, your dealer must
      receive the order by the close of the Exchange and transmit it to the
      Distributor so that it is received before the Distributor's close of
      business on a regular business day (normally 5:00 p.m.) to receive that
      day's offering price, unless your dealer has made alternative
      arrangements with the Distributor. Otherwise, the order will receive
      the next offering price that is determined.


WHAT CLASSES OF SHARES DOES THE FUND OFFER? The Fund offers investors four
      different classes of shares. The different classes of shares represent
      investments in the same portfolio of securities, but the classes are
      subject to different expenses and will likely have different share
      prices. When you buy shares, be sure to specify the class of shares. If
      you do not choose a class, your investment will be made in Class A
      shares.
------------------------------------------------------------------------------

------------------------------------------------------------------------------
------------------------------------------------------------------------------
Class A Shares. If you buy Class A shares, you pay an initial sales charge
      (on investments up to $1 million). The amount of that sales charge will
      vary depending on the amount you invest. The sales charge rates are
      listed in "How Can You Buy Class A Shares?" below.
------------------------------------------------------------------------------
Class B Shares. If you buy Class B shares, you pay no sales charge at the
      time of purchase, but you will pay an annual asset-based sales charge.
      If you sell your shares within 6 years of buying them, you will
      normally pay a contingent deferred sales charge. That contingent
      deferred sales charge varies depending on how long you own your shares,
      as described in "How Can You Buy Class B Shares?" below.
------------------------------------------------------------------------------
Class C Shares. If you buy Class C shares, you pay no sales charge at the
      time of purchase, but you will pay an annual asset-based sales charge.
      If you sell your shares within 12 months of buying them, you will
      normally pay a contingent deferred sales charge of 1.0%, as described
      in "How Can You Buy Class C Shares?" below.
------------------------------------------------------------------------------
Class Y Shares. Class Y shares generally are offered only to certain
      institutional investors that have special agreements with the
      Distributor, as described in "Who Can Buy Class Y Shares?" below.

WHICH CLASS OF SHARES SHOULD YOU CHOOSE? Once you decide that the Fund is an
appropriate investment for you, the decision as to which class of shares is
best suited to your needs depends on a number of factors that you should
discuss with your financial advisor. Some factors to consider are how much
you plan to invest and how long you plan to hold your investment. If your
goals and objectives change over time and you plan to purchase additional
shares, you should re-evaluate those factors to see if you should consider
another class of shares. The Fund's operating costs that apply to a class of
shares and the effect of the different types of sales charges on your
investment will vary your investment results over time.

      The discussion below is not intended to be investment advice or a
recommendation, because each investor's financial considerations are
different. The discussion below assumes that you will purchase only one class
of shares and not a combination of shares of different classes. Of course,
these examples are based on approximations of the effects of current sales
charges and expenses projected over time, and do not detail all of the
considerations in selecting a class of shares. You should analyze your
options carefully with your financial advisor before making that choice.

How Long Do You Expect to Hold Your Investment? While future financial needs
      cannot be predicted with certainty, knowing how long you expect to hold
      your investment will assist you in selecting the appropriate class of
      shares. Because of the effect of class-based expenses, your choice will
      also depend on how much you plan to invest. For example, the reduced
      sales charges available for larger purchases of Class A shares may,
      over time, offset the effect of paying an initial sales charge on your
      investment, compared to the effect over time of higher class-based
      expenses on shares of Class B or Class C.

   o  Investing for the Shorter Term. While the Fund is meant to be a
      long-term investment, if you have a relatively short-term investment
      horizon (that is, you plan to hold your shares for not more than six
      years), you should most likely invest in Class A or Class C shares
      rather than Class B shares. That is because of the effect of the Class
      B contingent deferred sales charge if you redeem within six  years, as
      well as the effect of the Class B asset-based sales charge on the
      investment return for that class in the short-term. Class C shares
      might be the appropriate choice (especially for investments of less
      than $100,000), because there is no initial sales charge on Class C
      shares, and the contingent deferred sales charge does not apply to
      amounts you sell after holding them one year.

      However, if you plan to invest more than $100,000 for the shorter term,
      then as your investment horizon increases toward six years, Class C
      shares might not be as advantageous as Class A shares. That is because
      the annual asset-based sales charge on Class C shares will have a
      greater impact on your account over the longer term than the reduced
      front-end sales charge available for larger purchases of Class A
      shares.

      If you invest $1 million or more, in most cases Class A shares will be
      the most advantageous choice, no matter how long you intend to hold
      your shares. The Distributor will not accept purchase orders of
      $100,000 or more for Class B shares or $1 million or more of Class C
      shares from a single investor.  Dealers or other financial
      intermediaries purchasing shares for their customers in omnibus
      accounts are responsible for compliance with those limits.

o     Investing for the Longer Term.  If you are investing  less than $100,000
      for the  longer-term,  for example for retirement,  and do not expect to
      need  access to your money for seven  years or more,  Class B shares may
      be appropriate.

Are There  Differences  in Account  Features  That Matter to You? Some account
      features  may not be  available  to  Class B and  Class C  shareholders.
      Other  features  may not be  advisable  (because  of the  effect  of the
      contingent  deferred sales charge) for Class B and Class C shareholders.
      Therefore,  you  should  carefully  review  how  you  plan  to use  your
      investment account before deciding which class of shares to buy.

      Additionally, the dividends payable to Class B and Class C shareholders
      will be reduced by the additional expenses borne by those classes that
      are not borne by Class A or Class Y shares, such as the Class B and
      Class C asset-based sales charge described below and in the Statement
      of Additional Information. Also, checkwriting is not available on
      accounts subject to a contingent deferred sales charge.

How Do Share Classes Affect Payments to Your Broker? A financial advisor may
      receive different compensation for selling one class of shares than for
      selling another class. It is important to remember that Class B and
      Class C contingent deferred sales charges and asset-based sales charges
      have the same purpose as the front-end sales charge on sales of Class A
      shares: to compensate the Distributor for concessions and expenses it
      pays to dealers and financial institutions for selling shares. The
      Distributor may pay additional compensation from its own resources to
      securities dealers or financial institutions based upon the value of
      shares of the Fund owned by the dealer or financial institution for its
      own account or for its customers.

HOW CAN YOU BUY CLASS A SHARES? Class A shares are sold at their offering
price, which is normally net asset value plus an initial sales charge.
However, in some cases, described below, purchases are not subject to an
initial sales charge, and the offering price will be the net asset value. In
other cases, reduced sales charges may be available, as described below or in
the Statement of Additional Information. Out of the amount you invest, the
Fund receives the net asset value to invest for your account.

      The sales charge varies depending on the amount of your purchase. A
portion of the sales charge may be retained by the Distributor or allocated
to your dealer as concession. The Distributor reserves the right to reallow
the entire concession to dealers. The current sales charge rates and
concessions paid to dealers and brokers are as follows:







 ------------------------------------------------------------------------------
 Amount of Purchase       Front-End Sales  Front-End Sales   Concession As a
                                           Charge As a
                          Charge As a      Percentage of
                          Percentage of    Net               Percentage of
                          Offering Price   Amount Invested   Offering Price
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 Less than $50,000             4.75%             4.98%             4.00%
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 $50,000 or more but           4.50%             4.71%             4.00%
 less than $100,000
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 $100,000 or more but          3.50%             3.63%             3.00%
 less than $250,000
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 $250,000 or more but          2.50%             2.56%             2.25%
 less than $500,000
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 $500,000 or more but          2.00%             2.04%             1.80%
 less than $1 million
 ------------------------------------------------------------------------------

Due to rounding,  the actual sales charge for a particular  transaction may be
higher or lower than the rates listed above.

SPECIAL SALES CHARGE ARRANGEMENTS AND WAIVERS. Appendix C to the Statement of
Additional Information details the conditions for the waiver of sales charges
that apply in certain cases and the special sales charge rates that apply to
purchases of shares of the Fund by certain groups, or in other special types
of transactions. To receive a waiver or special sales charge rate, you must
advise the Distributor when purchasing shares or the Transfer Agent when
redeeming shares that a special condition applies.


Can You Reduce Class A Sales Charges?  You and your spouse may be eligible to
buy Class A shares of the Fund at reduced sales charge rates set forth in the
table above under the Fund's "Right of Accumulation" or a "Letter of Intent."
The Fund reserves the right to modify or to cease offering these programs at
any time.

o     Right of Accumulation. To qualify for the reduced Class A sales charge
         that would apply to a larger purchase than you are currently
         making (as shown in the table above), you can add the value of
         any Class A, Class B or Class C shares of the Fund or other
         Oppenheimer funds that you or your spouse currently own, or are
         currently purchasing, to the value of your Class A share
         purchase. Your Class A shares of Oppenheimer Money Market Fund,
         Inc. or Oppenheimer Cash Reserves on which you have not paid a
         sales charge will not be counted for this purpose. In totaling
         your holdings, you may count shares held in your individual
         accounts (including IRAs and 403(b) plans), your joint accounts
         with your spouse, or accounts you or your spouse hold as trustees
         or custodians on behalf of your children who are minors. A
         fiduciary can count all shares purchased for a trust, estate or
         other fiduciary account (including employee benefit plans for the
         same employer) that has multiple accounts. To qualify for this
         Right of Accumulation, if you are buying shares directly from the
         Fund you must inform the Fund's Distributor of your eligibility
         and holdings at the time of your purchase. If you are buying
         shares through your financial intermediary you must notify your
         intermediary of your eligibility for this Right of Accumulation
         at the time of your purchase.

               To count shares of eligible Oppenheimer funds held in accounts
         at other intermediaries under this Right of Accumulation, you may be
         requested to provide the Distributor or your current intermediary
         (depending on the way you are buying your shares) a copy of each
         account statement showing your current holdings of the Fund or other
         eligible Oppenheimer funds, including statements for accounts held
         by you and your spouse or in retirement plans or trust or custodial
         accounts for minor children as described above. The Distributor or
         intermediary through which you are buying shares will combine the
         value of all your eligible Oppenheimer fund accounts based on the
         current offering price per share to determine what Class A sales
         charge breakpoints you may qualify for on your current purchase.

o     Letters of Intent. You may also qualify for reduced Class A sales
         charges by submitting a Letter of Intent to the Distributor. A
         Letter of Intent is a written statement of your intention to
         purchase a specified value of Class A, Class B or Class C shares
         of the Fund or other Oppenheimer funds over a 13-month period.
         The total amount of your intended purchases of Class A, Class B
         and Class C shares will determine the reduced sales charge rate
         that will apply to your Class A share purchases of the Fund
         during that period. You can choose to include purchases made up
         to 90 days before the date that you submit a Letter.  Your Class
         A shares of Oppenheimer Money Market Fund, Inc. or Oppenheimer
         Cash Reserves on which you did not pay a sales charge will not be
         counted for this purpose. Submitting a Letter of Intent does not
         obligate you to purchase the specified amount of shares. You can
         also apply the Right of Accumulation to these purchases.

            If you do not complete the Letter of Intent, the front-end
         sales charge you paid on your purchases will be recalculated
         to reflect the actual value of shares you purchased.  A
         certain portion of your shares will be held in escrow by the
         Fund's Transfer Agent for this purpose. Please refer to "How
         to Buy Shares - Letters of Intent" in the Fund's Statement of
         Additional Information for more complete information.

Other Special Sales Charge Arrangements and Waivers.  The Fund and the
Distributor offer other opportunities to purchase shares without
front-end or contingent deferred sales charges under the programs
described below. The Fund reserves the right to amend or discontinue
these programs at any time without prior notice.
o     Dividend Reinvestment.  Dividends and/or capital gains distributions
         received by a shareholder from the Fund may be reinvested in shares
         of the Fund or any of the other Oppenheimer funds without a sales
         charge, at the net asset value per share in effect on the payable
         date. You must notify the Transfer Agent in writing to elect this
         option and must have an existing account in the fund selected for
         reinvestment.

o     Exchanges of Shares.  Shares of the Fund may be exchanged for shares of
         certain other Oppenheimer funds at net asset value per share at the
         time of exchange, without sales charge, and shares of the Fund can
         be purchased by exchange of shares of certain other Oppenheimer
         funds on the same basis. Please refer to "How to Exchange Shares" in
         this Prospectus and in the Statement of Additional Information for
         more details, including a discussion of circumstances in which sales
         charges may apply on exchanges.

o     Reinvestment Privilege.  Within six months of a redemption of certain
         Class A and Class B shares, the proceeds may be reinvested in Class
         A shares of the Fund without sales charge. This privilege applies to
         redemptions of Class A shares that were subject to an initial sales
         charge or Class A or Class B shares that were subject to a
         contingent deferred sales charge when redeemed. The investor must
         ask the Transfer Agent for that privilege at the time of
         reinvestment and must identify the account from which the redemption
         was made.


Other Special Reductions and Waivers. The Fund and the Distributor offer
      additional arrangements to reduce or eliminate front-end sales charges
      or to waive contingent deferred sales charges for certain types of
      transactions and for certain classes of investors (primarily retirement
      plans that purchase shares in special programs through the
      Distributor). These are described in greater detail in Appendix C to
      the Statement of Additional Information, which may be ordered by
      calling 800.225.5677 or through the OppenheimerFunds website, at
      www.oppenheimerfunds.com (follow the hyperlinks "Access Accounts and
      ------------------------
      Services - Forms & Literature" - "Order Literature" - "Statement of
      Additional Information"). A description of these waivers and special
      sales charge arrangements is also available for viewing on the
      OppenheimerFunds website (under the hyperlinks "Research Fund - Fund
      Documents - View a description..."). To receive a waiver or special
      sales charge rate under these programs, the purchaser must notify the
      Distributor (or other financial intermediary through which shares are
      being purchased) at the time of purchase or notify the Transfer Agent
      at the time of redeeming shares for those waivers that apply to
      contingent deferred sales charges.


Class A Contingent Deferred Sales Charge. There is no initial sales charge on
      purchases of Class A shares of any one or more of the Oppenheimer funds
      aggregating $1 million or more. The Distributor pays dealers of record
      concessions in an amount equal to 1.0% of purchases of $1 million or
      more (other than purchases by retirement plans, which are not permitted
      in the Fund). That concession will not be paid on purchases of shares
      by exchange or that were previously subject to a front-end sales charge
      and dealer concession.

      If you redeem any of those shares within a 24 month "holding period"
      measured from the beginning of the calendar month of their purchase, a
      contingent deferred sales charge (called the "Class A contingent
      deferred sales charge") may be deducted from the redemption proceeds.
      That sales charge will be equal to 1.0% of the lesser of:
o     the aggregate net asset value of the redeemed shares at the time of
      redemption (excluding shares purchased by reinvestment of dividends or
      capital gain distributions) or
o     the original net asset value of the redeemed shares.

      The Class A contingent deferred sales charge will not exceed the
      aggregate amount of the concessions the Distributor paid to your dealer
      on all purchases of Class A shares of all Oppenheimer funds you made
      that were subject to the Class A contingent deferred sales charge.

HOW CAN YOU BUY CLASS B SHARES? Class B shares are sold at net asset value
per share without an initial sales charge. However, if Class B shares are
redeemed within six years from the beginning of the calendar month of their
purchase, a contingent deferred sales charge will be deducted from the
redemption proceeds. The Class B contingent deferred sales charge is paid to
compensate the Distributor for its expenses of providing distribution-related
services to the Fund in connection with the sale of Class B shares.

      The amount of the contingent deferred sales charge will depend on the
number of years since you invested and the dollar amount being redeemed,
according to the following schedule for the Class B contingent deferred sales
charge holding period:

--------------------------------------------------------------------------------
Years Since Beginning of Month in       Contingent Deferred Sales Charge on
Which Purchase Order was Accepted       Redemptions in That Year
                                        (As % of Amount Subject to Charge)
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
0 - 1                                   5.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1 - 2                                   4.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2 - 3                                   3.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
3 - 4                                   3.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
4 - 5                                   2.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
5 - 6                                   1.0%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
More than 6                             None
--------------------------------------------------------------------------------
In the table,  a "year" is a  12-month  period.  In  applying  the  contingent
deferred  sales charge,  all purchases are considered to have been made on the
first regular business day of the month in which the purchase was made.


Automatic Conversion of Class B Shares. Class B shares automatically convert
      to Class A shares 72 months after you purchase them. This conversion
      feature relieves Class B shareholders of the asset-based sales charge
      that applies to Class B shares under the Class B Distribution and
      Service Plan, described below. The conversion is based on the relative
      net asset value of the two classes, and no sales load or other charge
      is imposed. When any Class B shares that you hold convert, any other
      Class B shares that were acquired by reinvesting dividends and
      distributions on the converted shares will also convert to Class A
      shares. For further information on the conversion feature and its tax
      implications, see "Class B Conversion" in the Statement of Additional
      Information.

HOW CAN YOU BUY CLASS C SHARES? Class C shares are sold at net asset value
per share without an initial sales charge. However, if Class C shares are
redeemed within a holding period of 12 months from the beginning of the
calendar month of their purchase, a contingent deferred sales charge of 1.0%
will be deducted from the redemption proceeds. The Class C contingent
deferred sales charge is paid to compensate the Distributor for its expenses
of providing distribution-related services to the Fund in connection with the
sale of Class C shares.

WHO CAN BUY CLASS Y SHARES?  Class Y shares are sold at net asset value per
share without a sales charge directly to institutional investors that have
special agreements with the Distributor for this purpose. They may include
insurance companies, registered investment companies, employee benefit plans
and Section 529 plans, among others.

      An institutional investor that buys Class Y shares for its customers'
accounts may impose charges on those accounts. The procedures for buying,
selling, exchanging and transferring the Fund's other classes of shares
(other than the time those orders must be received by the Distributor or
Transfer Agent at their Colorado office) and the special account features
available to investors buying other classes of shares do not apply to Class Y
shares. Instructions for purchasing, redeeming, exchanging or transferring
Class Y shares held by institutional investors must be submitted by the
institutional investor, not by its customers for whose benefit the shares are
held.

DISTRIBUTION AND SERVICE (12b-1) PLANS.

Service Plan for Class A Shares. The Fund has adopted a Service Plan for
      Class A shares. It reimburses the Distributor for a portion of its
      costs incurred for services provided to accounts that hold Class A
      shares. Reimbursement is made quarterly at an annual rate of up to
      0.15% of the average annual net assets of Class A shares of the Fund.
      The Board of Trustees can increase that fee to 0.25% of average annual
      net assets without shareholder approval. Shareholders will be notified
      of any such change. The Distributor currently uses all of those fees to
      pay dealers, brokers, banks and other financial institutions quarterly
      for providing personal service and maintenance of accounts of their
      customers that hold Class A shares.

Distribution and Service Plans for Class B and Class C Shares. The Fund has
      adopted Distribution and Service Plans for Class B and Class C shares
      to pay the Distributor for its services and costs in distributing Class
      B and Class C shares and servicing accounts. Under the plans, the Fund
      pays the Distributor an annual asset-based sales charge of 0.75% per
      year on Class B shares and on Class C shares. The Distributor also
      receives a service fee of up to 0.25% per year under each plan.

      The asset-based sales charge and service fees increase Class B and
      Class C expenses by 1.00% of the net assets per year of the respective
      class. Because these fees are paid out of the Fund's assets on an
      ongoing basis, over time these fees will increase the cost of your
      investment and may cost you more than other types of sales charges.

      The Distributor uses the service fees to compensate dealers for
      providing personal services for accounts that hold Class B or Class C
      shares. The Distributor normally pays the 0.25% service fees to dealers
      in advance for the first year after the shares are sold by the dealer.
      After the shares have been held for a year, the Distributor pays the
      service fees to dealers on a quarterly basis.

      The Distributor currently pays a sales concession of 3.75% of the
      purchase price of Class B shares to dealers from its own resources at
      the time of sale. Including the advance of the service fee, the total
      amount paid by the Distributor to the dealer at the time of sale of
      Class B shares is therefore 4.00% of the purchase price. The
      Distributor normally retains the Class B asset-based sales charge. See
      the Statement of Additional Information for exceptions.

      The Distributor currently pays a sales concession of 0.75% of the
      purchase price of Class C shares to dealers from its own resources at
      the time of sale. Including the advance of the service fee, the total
      amount paid by the Distributor to the dealer at the time of sale of
      Class C shares is therefore 1.00% of the purchase price. The
      Distributor pays the asset-based sales charge as an ongoing concession
      to the dealer on Class C shares that have been outstanding for a year
      or more. The Distributor normally retains the Class C asset-based sales
      charge during the first year after Class C shares are purchased. See
      the Statement of Additional Information for exceptions.

      Under certain circumstances, the Distributor will pay the full Class B
      or Class C asset-based sales charge and the service fee to the dealer
      beginning in the first year after purchase of such shares in lieu of
      paying the dealer the sales concession and the advance of the first
      year's service fee at the time of purchase, if there is a special
      agreement between the dealer and the Distributor.  In those
      circumstances, the sales concession will not be paid to the dealer.

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

Special Investor Services

ACCOUNTLINK. You can use our AccountLink feature to link your Fund account
with an account at a U.S. bank or other financial institution. It must be an
Automated Clearing House (ACH) member. AccountLink lets you:
    o transmit funds electronically to purchase shares by telephone (through
      a service representative or by PhoneLink) or automatically under Asset
      Builder Plans, or
    o have the Transfer Agent send redemption proceeds or transmit dividends
      and distributions directly to your bank account. Please call the
      Transfer Agent for more information.
      You may purchase shares by telephone only after your account has been
established. To purchase shares in amounts up to $250,000 through a telephone
representative, call the Distributor at 1.800.225.5677. The purchase payment
will be debited from your bank account.

      AccountLink privileges should be requested on your Application or your
dealer's settlement instructions if you buy your shares through a dealer.
After your account is established, you can request AccountLink privileges by
sending signature-guaranteed instructions and proper documentation to the
Transfer Agent. AccountLink privileges will apply to each shareholder listed
in the registration on your account as well as to your dealer representative
of record unless and until the Transfer Agent receives written instructions
terminating or changing those privileges. After you establish AccountLink for
your account, any change of bank account information must be made by
signature-guaranteed instructions to the Transfer Agent signed by all
shareholders who own the account.

PHONELINK. PhoneLink is the OppenheimerFunds automated telephone system that
enables shareholders to perform a number of account transactions
automatically using a touch-tone phone. PhoneLink may be used on
already-established Fund accounts after you obtain a Personal Identification
Number (PIN), by calling the PhoneLink number, 1.800.225.5677.
Purchasing Shares. You may purchase shares in amounts up to $100,000 by
      phone, by calling 1.800.225.5677. You must have established AccountLink
      privileges to link your bank account with the Fund to pay for these
      purchases.
Exchanging Shares. With the OppenheimerFunds Exchange Privilege, described
      below, you can exchange shares automatically by phone from your Fund
      account to another OppenheimerFunds account you have already
      established by calling the special PhoneLink number.
Selling Shares. You can redeem shares by telephone automatically by calling
      the PhoneLink number and the Fund will send the proceeds directly to
      your AccountLink bank account. Please refer to "How to Sell Shares,"
      below for details.

CAN YOU SUBMIT TRANSACTION REQUESTS BY FAX? You may send requests for certain
types of account transactions to the Transfer Agent by fax (telecopier).
Please call 1.800.225.5677 for information about which transactions may be
handled this way. Transaction requests submitted by fax are subject to the
same rules and restrictions as written and telephone requests described in
this Prospectus.

OPPENHEIMERFUNDS INTERNET WEBSITE. You can obtain information about the Fund,
as well as your account balance, on the OppenheimerFunds Internet website, at
www.oppenheimerfunds.com. Additionally, shareholders listed in the account
------------------------
registration (and the dealer of record) may request certain account
transactions through a special section of that website. To perform account
transactions or obtain account information online, you must first obtain a
user I.D. and password on that website. If you do not want to have Internet
account transaction capability for your account, please call the Transfer
Agent at 1.800.225.5677. At times, the website may be inaccessible or its
transaction features may be unavailable.

AUTOMATIC WITHDRAWAL AND EXCHANGE PLANS. The Fund has several plans that
enable you to sell shares automatically or exchange them to another
OppenheimerFunds account on a regular basis. Please call the Transfer Agent
or consult the Statement of Additional Information for details.


How to Sell Shares

You can sell (redeem) some or all of your shares on any regular business day.
Your shares will be sold at the next net asset value calculated after your
order is received in proper form (which means that it must comply with the
procedures described below) and is accepted by the Transfer Agent. The Fund
lets you sell your shares by writing a letter, by wire, by using the Fund's
checkwriting privilege, or by telephone. You can also set up Automatic
Withdrawal Plans to redeem shares on a regular basis. If you have questions
about any of these procedures, and especially if you are redeeming shares in
a special situation, such as due to the death of the owner, please call the
Transfer Agent first, at 1.800.225.5677, for assistance.

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

Where Can You Have Your Signature Guaranteed? The Transfer Agent will accept
      a guarantee of your signature by a number of financial institutions,
      including:
o     a U.S. bank, trust company, credit union or savings association,
o     a foreign bank that has a U.S. correspondent bank,
o     a U.S. registered dealer or broker in securities, municipal securities
      or government securities, or
o     a U.S. national securities exchange, a registered securities
      association or a clearing agency.
      If you are signing on behalf of a corporation, partnership or other
business or as a fiduciary, you must also include your title in the signature.

Sending Redemption Proceeds by Wire. While the Fund normally sends your money
      by check, you can arrange to have the proceeds of shares you sell sent
      by Federal Funds wire to a bank account you designate. It must be a
      commercial bank that is a member of the Federal Reserve wire system.
      The minimum redemption you can have sent by wire is $2,500. There is a
      $10 fee for each request. To find out how to set up this feature on
      your account or to arrange a wire, call the Transfer Agent at
      1.800.225.5677.

CHECKWRITING. To write checks against your Fund account, request that
privilege on your account application, or contact the Transfer Agent for
signature cards. They must be signed (with a signature guarantee) by all
owners of the account and returned to the Transfer Agent so that checks can
be sent to you to use. Shareholders with joint accounts can elect in writing
to have checks paid over the signature of one owner. If you previously signed
a signature card to establish checkwriting in another Oppenheimer fund,
simply call 1.800.225.5677 to request checkwriting for an account in this
Fund with the same registration as the other account.

o     Checks can be written to the order of whomever you wish, but may not be
      cashed at the bank the checks are payable through or the Fund's
      custodian bank.
o     Checkwriting privileges are not available for accounts holding shares
      that are subject to a contingent deferred sales charge.
o     Checks must be written for at least $500. Checks written below the
      stated amount on the check will not be accepted. However, if you have
      existing checks indicating a $100 minimum, you may still use them for
      amounts of $100 or more.
o     Checks cannot be paid if they are written for more than your account
      value. Remember, your shares fluctuate in value and you should not
      write a check close to the total account value.
o     You may not write a check that would require the Fund to redeem shares
      that were purchased by check or Asset Builder Plan payments within the
      prior 10 days.
o     Don't use your checks if you changed your Fund account number, until
      you receive new checks.

HOW DO YOU SELL SHARES BY MAIL? Write a letter of instruction that includes:
   o  Your name,
   o  The Fund's name,
   o  Your Fund account number (from your account statement),
   o  The dollar amount or number of shares to be redeemed,
   o  Any special payment instructions,
   o  Any share certificates for the shares you are selling,
   o  The signatures of all registered owners exactly as the account is
      registered, and
   o  Any special documents requested by the Transfer Agent to assure proper
      authorization of the person asking to sell the shares.

Use the following address for            Send courier or express mail
requests by mail:                        requests to:
OppenheimerFunds Services                OppenheimerFunds Services
P.O. Box 5270                            10200 E. Girard Avenue, Building D
Denver, Colorado 80217-5270              Denver, Colorado 80231


HOW DO YOU SELL SHARES BY TELEPHONE? You and your dealer representative of
record may also sell your shares by telephone. To receive the redemption
price calculated on a particular regular business day, your call must be
received by the Transfer Agent by the close of the Exchange that day, which
is normally 4:00 P.M., but may be earlier on some days. You may not redeem
shares under a share certificate by telephone.

   o  To redeem shares through a service representative or automatically on
      PhoneLink, call 1.800.225.5677.

      Whichever method you use, you may have a check sent to the address on
the account statement, or, if you have linked your Fund account to your bank
account on AccountLink, you may have the proceeds sent to that bank account.

Are There Limits on Amounts Redeemed by Telephone?
Telephone Redemptions Paid by Check. Up to $100,000 may be redeemed by
      telephone in any seven-day period. The check must be payable to all
      owners of record of the shares and must be sent to the address on the
      account statement. This service is not available within 30 days of
      changing the address on an account.

Telephone Redemptions Through AccountLink or by Wire. There are no dollar
      limits on telephone redemption proceeds sent to a bank account
      designated when you establish AccountLink. Normally the ACH transfer to
      your bank is initiated on the business day after the redemption. You do
      not receive dividends on the proceeds of the shares you redeemed while
      they are waiting to be transferred.

      If you have requested Federal Funds wire privileges for your account,
      the wire of the redemption proceeds will normally be transmitted on the
      next bank business day after the shares are redeemed. There is a
      possibility that the wire may be delayed up to seven days to enable the
      Fund to sell securities to pay the redemption proceeds. No dividends
      are accrued or paid on the proceeds of shares that have been redeemed
      and are awaiting transmittal by wire.

CAN YOU SELL SHARES THROUGH YOUR DEALER? The Distributor has made
arrangements to repurchase Fund shares from dealers and brokers on behalf of
their customers. Brokers or dealers may charge for that service. If your
shares are held in the name of your dealer, you must redeem them through your
dealer.

HOW CONTINGENT DEFERRED SALES CHARGES AFFECT REDEMPTIONS. If you purchase
shares subject to a Class A, Class B or Class C contingent deferred sales
charge and redeem any of those shares during the applicable holding period
for the class of shares, the contingent deferred sales charge will be
deducted from the redemption proceeds (unless you are eligible for a waiver
of that sales charge based on the categories listed in Appendix C to the
Statement of Additional Information and you advise the Transfer Agent of your
eligibility for the waiver when you place your redemption request.)

      A  contingent  deferred  sales charge will be based on the lesser of the
net  asset  value of the  redeemed  shares  at the time of  redemption  or the
original net asset value.  A contingent  deferred  sales charge is not imposed
on:
o     the amount of your  account  value  represented  by an  increase  in net
      asset value over the initial purchase price,
o     shares  purchased by the  reinvestment  of  dividends  or capital  gains
      distributions, or
o     shares redeemed in the special circumstances  described in Appendix C to
      the Statement of Additional Information.

      To determine whether a contingent deferred sales charge applies to a
redemption, the Fund redeems shares in the following order:
   1. shares acquired by reinvestment of dividends and capital gains
      distributions,
   2. shares held for the holding period that applies to the class, and
   3. shares held the longest during the holding period.

Contingent deferred sales charges are not charged when you exchange shares of
the Fund for shares of other Oppenheimer funds. However, if you acquire Class
B or Class C shares of this Fund by exchanging shares of another Oppenheimer
fund that are still subject to a contingent deferred sales charge holding
period, that holding period will carry over to this Fund. If you exchange
Class A shares subject to a contingent deferred sales charge of another
Oppenheimer fund for Class A shares of this Fund, the 24 month contingent
deferred sales charge holding period applicable to Class A shares of this
Fund will apply. If you exchange Class A shares subject to a contingent
deferred sales charge holding period of this Fund for Class A shares of
another Oppenheimer fund, the holding period of the other Oppenheimer fund
will normally apply.

How to Exchange Shares

If you want to change all or part of your investment from one Oppenheimer
fund to another, you can exchange your shares for shares of the same class of
another Oppenheimer fund that offers the exchange privilege. For example, you
can exchange Class A shares of the Fund only for Class A shares of another
fund. To exchange shares, you must meet several conditions:

   o  Shares of the fund selected for exchange must be available for sale in
      your state of residence.

   o  The prospectus of the selected fund must offer the exchange privilege.
   o  You must hold shares you buy when you establish an account for at least

      seven days before you can exchange them. After your account is open for
      seven days, you can exchange shares on any regular business day,
      subject to the limitations described below.
   o  You must meet the minimum purchase requirements for the selected fund.
   o  Generally,  exchanges  may be made only between  identically  registered
      accounts,  unless all account owners send written exchange  instructions
      with a signature guarantee.
   o  Before exchanging into a fund, you must obtain its prospectus and
      should read it.


      For tax purposes, an exchange of shares of the Fund is considered a
------
sale of those shares and a purchase of the shares of the fund to which you
are exchanging. An exchange may result in a capital gain or loss.

You can find a list of the Oppenheimer funds that are currently  available for
exchanges in the Statement of Additional  Information or you can obtain a list
by calling a service  representative  at  1.800.225.5677.  The funds available
for  exchange  can  change  from  time to time.  There  are a number  of other
special  conditions and limitations  that apply to certain types of exchanges.
In some  cases,  sales  charges may be imposed on  exchange  transactions.  In
general,  a  contingent  deferred  sales  charge  (CDSC)  is  not  imposed  on
exchanges  of shares  that are  subject to a CDSC.  However,  if you  exchange
shares that are  subject to a CDSC,  the CDSC  holding  period will be carried
over to the acquired  shares,  and the CDSC may be imposed if those shares are
redeemed  before the end of the CDSC  holding  period.  These  conditions  and
circumstances  are described in detail in the "How to Exchange Shares" section
in the Statement of Additional Information.

HOW DO YOU SUBMIT EXCHANGE REQUESTS? Exchanges may be requested in writing,
by telephone or the internet, or by establishing an Automatic Exchange Plan.

Written Exchange Requests. Send a request letter, signed by all owners of the
      account, to the Transfer Agent at the address on the back cover.
      Exchanges of shares for which share certificates have been issued
      cannot be processed unless the Transfer Agent receives the certificates
      with the request letter.


Telephone and Internet Exchange Requests. Telephone exchange requests may be
      made either by calling a service representative or by using PhoneLink
      by calling 1.800.225.5677. You may submit internet exchange requests on
      the OppenheimerFunds internet website, at www.oppenheimerfunds.com. You
                                                ------------------------
      must have obtained a user I.D. and password to make transactions on
      that website. Telephone and/or internet exchanges may be made only
      between accounts that are registered with the same name(s) and address.
      Shares for which share certificates have been issued may not be
      exchanged by telephone or the internet.

Automatic Exchange Plan. Shareholders can authorize the Transfer Agent to
      exchange a pre-determined amount of shares automatically on a monthly,
      quarterly, semi-annual or annual basis.


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

ARE THERE LIMITATIONS ON FREQUENT PURCHASES, REDEMPTIONS AND EXCHANGES?

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

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


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


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

o     Exchanges of Client Accounts by Financial Advisers.  The Fund and the
      Transfer Agent permit dealers and financial intermediaries to submit
      exchange requests on behalf of their customers (unless the customer has
      revoked that authority). The Distributor and/or the Transfer Agent have
      agreements with a number of financial intermediaries that permit them
      to submit exchange orders in bulk on behalf of their clients. Those
      intermediaries are required to follow the exchange policies stated in
      this Prospectus and to comply with additional, more stringent
      restrictions. Those additional restrictions include limitations on the
      funds available for exchanges, the requirement to give advance notice
      of exchanges to the Transfer Agent, and limits on the amount of client
      assets that may be invested in a particular fund. A fund or the
      Transfer Agent may limit or refuse bulk exchange requests submitted by
      such financial intermediaries if, in the Transfer Agent's judgment,
      exercised in its discretion, the exchanges would be disruptive to any
      of the funds involved in the transaction.

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

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


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

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




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


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




The Fund's Board has adopted additional policies and procedures to detect and
prevent frequent and/or excessive exchanges and purchase and redemption
activity. Those additional policies and procedures will take effect on June
20, 2005:


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


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

o     Dividend Reinvestments/B Share Conversions.  Reinvestment of dividends
      or distributions from one fund to purchase shares of another fund and
      the conversion of Class B shares into Class A shares will not be
      considered exchanges for purposes of imposing the 30-day limit.

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

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

Shareholder Account Rules and Policies

More information about the Fund's policies and procedures for buying, selling
and exchanging shares is contained in the Statement of Additional Information.
A $12 annual "Minimum Balance Fee" is assessed on each Fund account with a
      value of less than $500. The fee is automatically deducted from each
      applicable Fund account annually on or about the second to last
      "regular business day" of September.  See the Statement of Additional
      Information to learn how you can avoid this fee and for circumstances
      under which this fee will not be assessed.
The offering of shares may be suspended during any period in which the
      determination of net asset value is suspended, and the offering may be
      suspended by the Board of Trustees at any time the Board believes it is
      in the Fund's best interest to do so.
Telephone transaction privileges for purchases, redemptions or exchanges may
      be modified, suspended or terminated by the Fund at any time. The Fund
      will provide you notice whenever it is required to do so by applicable
      law. If an account has more than one owner, the Fund and the Transfer
      Agent may rely on the instructions of any one owner. Telephone
      privileges apply to each owner of the account and the dealer
      representative of record for the account unless the Transfer Agent
      receives cancellation instructions from an owner of the account.
The Transfer Agent will record any telephone calls to verify data concerning
      transactions and has adopted other procedures to confirm that telephone
      instructions are genuine, by requiring callers to provide tax
      identification numbers and other account data or by using PINs, and by
      confirming such transactions in writing. The Transfer Agent and the
      Fund will not be liable for losses or expenses arising out of telephone
      instructions reasonably believed to be genuine.
Redemption or transfer requests will not be honored until the Transfer Agent
      receives all required documents in proper form. From time to time, the
      Transfer Agent in its discretion may waive certain of the requirements
      for redemptions stated in this Prospectus.
Dealers that perform account transactions for their clients by participating
      in NETWORKING through the National Securities Clearing Corporation are
      responsible for obtaining their clients' permission to perform those
      transactions, and are responsible to their clients who are shareholders
      of the Fund if the dealer performs any transaction erroneously or
      improperly.
The redemption price for shares will vary from day to day because the value
      of the securities in the Fund's portfolio fluctuates. The redemption
      price, which is the net asset value per share, will normally differ for
      each class of shares. The redemption value of your shares may be more
      or less than their original cost.
Payment for redeemed shares ordinarily is made in cash. It is forwarded by
      check, or through AccountLink or by Federal Funds wire (as elected by
      the shareholder) within seven days after the Transfer Agent receives
      redemption instructions in proper form. However, under unusual
      circumstances determined by the Securities and Exchange Commission,
      payment may be delayed or suspended. For accounts registered in the
      name of a broker-dealer, payment will normally be forwarded within
      three business days after redemption.
The Transfer Agent may delay processing any type of redemption payment as
      described under "How to Sell Shares" for recently purchased shares, but
      only until the purchase payment has cleared. That delay may be as much
      as 10 days from the date the shares were purchased. That delay may be
      avoided if you purchase shares by Federal Funds wire or certified
      check, or arrange with your bank to provide telephone or written
      assurance to the Transfer Agent that your purchase payment has cleared.
Involuntary redemptions of small accounts may be made by the Fund if the
      account value has fallen below $200 for reasons other than the fact
      that the market value of shares has dropped. In some cases, involuntary
      redemptions may be made to repay the Distributor for losses from the
      cancellation of share purchase orders.
Shares may be "redeemed in kind" under unusual circumstances (such as a lack
      of liquidity in the Fund's portfolio to meet redemptions). This means
      that the redemption proceeds will be paid with liquid securities from
      the Fund's portfolio. If the Fund redeems your shares in kind, you may
      bear transaction costs and will bear market risks until such time as
      such securities are converted into cash.
Federal regulations may require the Fund to obtain your name, your date of
      birth (for a natural person), your residential street address or
      principal place of business and your Social Security Number, Employer
      Identification Number or other government issued identification when
      you open an account. Additional information may be required in certain
      circumstances or to open corporate accounts.  The Fund or the Transfer
      Agent may use this information to attempt to verify your identity.  The
      Fund may not be able to establish an account if the necessary
      information is not received.  The Fund may also place limits on account
      transactions while it is in the process of attempting to verify your
      identity.  Additionally, if the Fund is unable to verify your identity
      after your account is established, the Fund may be required to redeem
      your shares and close your account.
"Backup withholding" of federal income tax may be applied against taxable
      dividends, distributions and redemption proceeds (including exchanges)
      if you fail to furnish the Fund your correct, certified Social Security
      or Employer Identification Number when you sign your application, or if
      you under-report your income to the Internal Revenue Service.
To avoid sending duplicate copies of materials to households, the Fund will
      mail only one copy of each prospectus, annual and semi-annual report
      and annual notice of the Fund's privacy policy to shareholders having
      the same last name and address on the Fund's records. The consolidation
      of these mailings, called householding, benefits the Fund through
      reduced mailing expense.

      If you want to receive multiple copies of these materials, you may call
      the Transfer Agent at 1.800.225.5677. You may also notify the Transfer
      Agent in writing. Individual copies of prospectuses, reports and
      privacy notices will be sent to you commencing 30 days after the
      Transfer Agent receives your request to stop householding.

Dividends, Capital Gains and Taxes

DIVIDENDS. The Fund intends to declare dividends separately for each class of
shares from net tax-exempt income and/or net taxable investment income each
regular business day and to pay those dividends to shareholders monthly on a
date selected by the Board of Trustees. Daily dividends will not be declared
or paid on newly-purchased shares until Federal Funds are available to the
Fund from the purchase payment for such shares.

       The Fund attempts to pay dividends on Class A shares at a constant
level. There is no assurance that it will be able to do so. The Board of
Trustees may change the targeted dividend level at any time, without prior
notice to shareholders. The amount of those dividends and any other
distributions paid on other classes of shares may vary over time, depending
on market conditions, the composition of the Fund's portfolio, and expenses
borne by the particular class of shares. Dividends and other distributions
paid on Class A and Class Y shares will generally be higher than dividends
for Class B and Class C shares, which normally have higher expenses than
Class A and Class Y. The Fund cannot guarantee that it will pay any dividends
or other distributions.

CAPITAL GAINS. Although the Fund does not seek capital gains, it may realize
capital gains on the sale of portfolio securities. If it does, it may make
distributions out of any net short-term or long-term capital gains in
December of each year. The Fund may make supplemental distributions of
dividends and capital gains following the end of its fiscal year. There can
be no assurance that the Fund will pay any capital gains distributions in a
particular year. Long-term capital gains will be separately identified in the
tax information the Fund sends you after the end of the calendar year.

WHAT CHOICES DO YOU HAVE FOR RECEIVING DISTRIBUTIONS? When you open your
account, specify on your application how you want to receive your dividends
and distributions. You have four options:
Reinvest All Distributions in the Fund. You can elect to reinvest all
      dividends and capital gains distributions in additional shares of the
      Fund.
Reinvest Dividends or Capital Gains. You can elect to reinvest some
      distributions (dividends, short-term capital gains or long-term capital
      gains distributions) in the Fund while receiving the other types of
      distributions by check or having them sent to your bank account through
      AccountLink.
Receive All Distributions in Cash. You can elect to receive a check for all
      dividends and capital gains distributions or have them sent to your
      bank through AccountLink.
Reinvest Your Distributions in Another OppenheimerFunds Account. You can
      reinvest all distributions in the same class of shares of another
      OppenheimerFunds account you have established.

TAXES. Dividends paid from net investment income earned by the Fund on
municipal securities will be excludable from gross income for federal income
tax purposes. All or a portion of the dividends paid by the Fund that are
derived from interest paid on certain "private activity bonds" may be an item
of tax preference if you are subject to the federal alternative minimum tax.

      Dividends and capital gains distributions may be subject to federal,
state or local taxes. Any short-term capital gain distributions are taxable
to you as ordinary income. Any long-term capital gain distributions are
taxable to you as long-term capital gains, no matter how long you have owned
shares in the Fund. The Fund may derive gains in part from municipal
obligations the Fund purchased below their principal or face values. All, or
a portion of these gains may be taxable to you as ordinary income rather than
capital gains. Whether you reinvest your distributions in additional shares
or take them in cash, the tax treatment is the same.

      Exempt-interest dividends earned by residents of New York should not
be subject to federal, state, or local income taxes. The portion of the
Fund's dividends that are attributable to income earned on other
obligations (not New York municipal securities) will normally be subject
to New York State and City personal income tax.

     Every year the Fund will send you and the IRS a statement showing the
amount of any taxable distribution you received in the previous year. The
Fund will also send you a separate statement summarizing the total
distributions paid by the Fund.

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

Remember, There May be Taxes on Transactions. Because the Fund's share prices
      fluctuate, you may have a capital gain or loss when you sell or
      exchange your shares. A capital gain or loss is the difference between
      the price you paid for the shares and the price you received when you
      sold them. Any capital gain is subject to capital gains tax.

Returns of Capital Can Occur. Distributions in excess of the Fund's earnings
      and profits would constitute a return of capital and may result in
      certain tax consequences to shareholders. It that occurs, those
      distributions will be identified in notices to shareholders.


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

Financial Highlights

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

FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

CLASS A     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.62       $   17.38      $   17.52       $    17.67       $  16.78
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                    1.07 1          1.11           1.08             1.06           1.04
Net realized and unrealized gain (loss)                   .16             .23           (.15)            (.17)           .89
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.23            1.34            .93              .89           1.93
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                    (1.09)          (1.10)         (1.07)           (1.04)         (1.04)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.76       $   17.62      $   17.38       $    17.52       $  17.67
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       7.25%           8.12%          5.46%            5.14%         11.93%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $  4,699       $   4,228      $   4,299       $    4,073       $  3,536
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $  4,387       $   4,100      $   4,292       $    3,893       $  3,341
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    6.09%           6.49%          6.18%            5.97%          6.07%
Total expenses                                           0.72%           0.71%          0.72%            0.72%          0.78%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       0.71% 4,6        0.70% 4,6      0.74% 4,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         54 | ROCHESTER FUND MUNICIPALS

CLASS B     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.60       $   17.36      $   17.51       $    17.66       $  16.77
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                     .91 1           .96            .93              .91            .89
Net realized and unrealized gain (loss)                   .18             .23           (.16)            (.17)           .90
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.09            1.19            .77              .74           1.79
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                     (.94)           (.95)          (.92)            (.89)          (.90)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.75       $   17.60      $   17.36       $    17.51       $  17.66
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       6.40%           7.19%          4.50%            4.25%         10.98%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $  1,073       $   1,231      $   1,342       $    1,157       $    803
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $  1,130       $   1,259      $   1,275       $      997       $    711
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    5.23%           5.62%          5.32%            5.10%          5.19%
Total expenses                                           1.59%           1.58%          1.58%            1.58%          1.65%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       1.57% 4,6        1.56% 5,6      1.60% 5,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         55 | ROCHESTER FUND MUNICIPALS

FINANCIAL HIGHLIGHTS  Continued
--------------------------------------------------------------------------------

CLASS C     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.59       $   17.36      $   17.50       $    17.66       $  16.76
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                     .91 1           .96            .93              .91            .89
Net realized and unrealized gain (loss)                   .18             .22           (.15)            (.18)           .91
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.09            1.18            .78              .73           1.80
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                     (.94)           (.95)          (.92)            (.89)          (.90)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.74       $   17.59      $   17.36       $    17.50       $  17.66
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       6.40%           7.14%          4.57%            4.19%         11.06%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $    498       $     443      $     471       $      429       $    259
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $    459       $     436      $     460       $      356       $    225
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    5.22%           5.62%          5.32%            5.09%          5.20%
Total expenses                                           1.59%           1.58%          1.58%            1.57%          1.63%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       1.57% 4,6        1.55% 4,6      1.59% 4,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         56 | ROCHESTER FUND MUNICIPALS

CLASS Y     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001          2000 1
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.61       $   17.38      $   17.52       $    17.67       $  16.88
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                    1.10 2          1.14           1.10             1.08            .70
Net realized and unrealized gain (loss)                   .17             .21           (.15)            (.17)           .78
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.27            1.35            .95              .91           1.48
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                    (1.12)          (1.12)         (1.09)           (1.06)          (.69)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.76       $   17.61      $   17.38       $    17.52       $  17.67
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3                       7.50%           8.16%          5.57%            5.25%          8.97%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $      8       $       9      $      12       $       12       $     11
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $      8       $      11      $      12       $       12       $     10
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income                                    6.27%           6.79%          6.30%            6.08%          6.07%
Total expenses                                           0.55%           0.61%          0.62%            0.62%          0.68%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 5           N/A 5         0.61% 5,6        0.60% 5,6      0.64% 5,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

1. For the period from April 28, 2000 (inception of offering) to December 31,
2000.

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

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

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

5. Reduction to custodian expenses less than 0.01%.

6. Excludes interest expenses.

INFORMATION AND SERVICES

For More Information on Rochester Fund Municipals
The following additional information about the Fund is available without
charge upon request:

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

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

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

------------------------------------------------------------------------------
By Telephone:                 Call OppenheimerFunds Services toll-free:
                              1.800.CALL OPP (225.5677)
------------------------------------------------------------------------------
------------------------------------------------------------------------------
By Mail:                      Write to:
                              OppenheimerFunds Services
                              P.O. Box 5270
                              Denver, Colorado 80217-5270
------------------------------------------------------------------------------
------------------------------------------------------------------------------
On the Internet:              You can request these documents by e-mail or
                              through the OppenheimerFunds website. You may
                              also read or download certain documents on the
                              OppenheimerFunds website at:
                              www.oppenheimerfunds.com
                              ------------------------
------------------------------------------------------------------------------

Information about the Fund including the Statement of Additional Information
can be reviewed and copied at the SEC's Public Reference Room in Washington,
D.C. Information on the operation of the Public Reference Room may be
obtained by calling the SEC at 1.202.942.8090.  Reports and other information
about the Fund are available on the EDGAR database on the SEC's Internet
website at www.sec.gov. Copies may be obtained after payment of a duplicating
           -----------
fee by electronic request at the SEC's e-mail address: publicinfo@sec.gov or
by writing to the SEC's Public Reference Section, Washington, D.C. 20549-0102.
No one has been authorized to provide any information about the Fund or to
make any representations about the Fund other than what is contained in this
Prospectus. This Prospectus is not an offer to sell shares of the Fund, nor a
solicitation of an offer to buy shares of the Fund, to any person in any
state or other jurisdiction where it is unlawful to make such an offer.


The Fund's shares are distributed by:                [logo]   OppenheimerFunds
Distributor, Inc.
The Fund's SEC File No.: 811-3614
PR0365.001.0405
Printed on recycled paper






                          Appendix to Prospectus of
                          ROCHESTER FUND MUNICIPALS


      Graphic material included in the Prospectus of Rochester Fund
Municipals under the heading:  "Annual Total Returns (Class A) (as of 12/31
each year)."

      A bar  chart  will be  included  in the  Prospectus  of  Rochester  Fund
Municipals  (the "Fund")  depicting the annual total returns of a hypothetical
investment  in  Class A shares  of the  Fund for each of the last 10  calendar
years,  without  deducting  sales  charges or taxes.  Set forth  below are the
relevant data points that will appear in the bar chart:

      Calendar       Annual
      Year           Total
      Ended:         Returns


      12/31/95       18.61%
      12/31/96         5.37%
      12/31/97       10.20%
      12/31/98         6.52%
      12/31/99        -5.51%
      12/31/00       11.93%
      12/31/01         5.14%
      12/31/02         5.46%
      12/31/03         8.12%
      12/31/04         7.25%

Rochester Fund Municipals
6803 S. Tucson Way, Centennial, CO 80112
1.800.225.5677


Statement of Additional Information dated April 29, 2005

This Statement of Additional Information is not a Prospectus. This document
contains additional information about the Fund and supplements information in
the Prospectus dated April 29, 2005, as further supplemented thereafter. It
should be read together with the Prospectus, which may be obtained by writing
to the Fund's Transfer Agent, OppenheimerFunds Services, at P.O. Box 5270,
Denver, Colorado 80217 or by calling the Transfer Agent at the toll-free
number shown above or by downloading it from the OppenheimerFunds Internet
website at www.oppenheimerfunds.com.


Contents                                                                Page

About the Fund
Additional Information About the Fund's Investment Policies and Risks...
     The Fund's Investment Policies.....................................
     Municipal Securities...............................................
     Other Investment Techniques and Strategies.........................
     Other Investment Restrictions......................................
     Disclosure of Portfolio Holdings
How the Fund is Managed.................................................
     Organization and History...........................................
     Board of Trustees and Oversight Committees.........................
     Trustees and Officers of the Fund..................................
     The Manager........................................................
Brokerage Policies of the Fund..........................................
Distribution and Service Plans..........................................
Performance of the Fund.................................................

About Your Account
How To Buy Shares.......................................................
How To Sell Shares......................................................
How to Exchange Shares..................................................
Dividends, Capital Gains and Taxes......................................
Additional Information About the Fund...................................

Financial Information About the Fund

Independent Registered Public Accounting Firm's Report..................
Financial Statements ...................................................


Appendix A: Municipal Bond Ratings Definitions..........................A-1
Appendix B: Industry Classifications....................................B-1
Appendix C: Special Sales Charge Arrangements and Waivers...............C-1






                                      48
ABOUT THE FUND

Additional Information About the Fund's Investment Policies and Risks

The investment objective, principal investment policies and main risks of the
Fund are described in the Prospectus. This Statement of Additional
Information contains supplemental information about those policies and risks
and the types of securities that the Fund's investment manager,
OppenheimerFunds, Inc., (the "Manager") can select for the Fund. Additional
explanations are also provided about the strategies the Fund can use to try
to achieve its objective.

The Fund's Investment Policies. The composition of the Fund's portfolio and
the techniques and strategies that the Manager uses will vary over time. The
Fund is not required to use all of the investment techniques and strategies
described below in seeking its goal. The Fund does not make investments with
the objective of seeking capital growth. However, the values of the
securities held by the Fund may be affected by changes in general interest
rates and other factors prior to their maturity. Because the current value of
debt securities varies inversely with changes in prevailing interest rates,
if interest rates increase after a security is purchased, that security will
normally fall in value. Conversely, should interest rates decrease after a
security is purchased, normally its value will rise.

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

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


Municipal Securities. The types of municipal securities in which the Fund can
invest are described in the Prospectus under "What does the Fund Mainly
Invest In" and "About the Fund's Investments." The Fund may from time to time
invest in municipal securities other than New York municipal securities. For
example, to seek a higher yield, the Fund may invest in municipal securities
issued by other states and their respective political subdivisions. Although
any interest from these securities generally would be exempt from federal
income tax, any such interest may be subject to New York State and New York
City personal income tax. Nonetheless, the Fund does not expect to invest a
significant portion of its assets in securities other than New York municipal
securities.


      Municipal securities are generally classified as general obligation
bonds, revenue bonds and notes. A discussion of the general characteristics
of these principal types of municipal securities follows below.

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

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

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

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

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

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


      The Fund will purchase industrial revenue bonds only if the interest
paid on the bonds is tax-exempt under the Internal Revenue Code. The Internal
Revenue Code limits the types of facilities that may be financed with
tax-exempt industrial revenue bonds and private-activity bonds (discussed
below) and the amounts of these bonds that each state can issue.

      The Fund will not invest more than 5% of its total assets in industrial
development bonds for which the underlying credit is one business or one
charitable entity. Additionally, the Fund will not invest more than 5% of its
total assets in securities for which industrial users having less than three
years' operating history are responsible for the payments of interest and
principal on the securities.

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

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

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

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

      In addition, corporate taxpayers subject to the alternative minimum tax
may, under some circumstances, have to include exempt-interest dividends in
calculating their alternative minimum taxable income. That could occur in
situations where the "adjusted current earnings" of the corporation exceeds
its alternative minimum taxable income.
      To determine whether a municipal security is treated as a taxable
private activity bond, it is subject to a test for: (a) a trade or business
use and security interest, or (b) a private loan restriction. Under the trade
or business use and security interest test, an obligation is a private
activity bond if: (i) more than 10% of the bond proceeds are used for private
business purposes and (ii) 10% or more of the payment of principal or
interest on the issue is directly or indirectly derived from such private use
or is secured by the privately used property or the payments related to the
use of the property. For certain types of uses, a 5% threshold is substituted
for this 10% threshold.

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

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

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

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

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

o     Revenue Anticipation Notes. These are notes issued in expectation of
receipt of other types of revenue, such as federal revenues available under
federal revenue-sharing programs.
o     Bond Anticipation Notes. Bond anticipation notes are issued to provide
interim financing until long-term financing can be arranged. The long-term
bonds that are issued typically also provide the money for the repayment of
the notes.

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

o     Miscellaneous, Temporary and Anticipatory Instruments. These
instruments may include notes issued to obtain interim financing pending
entering into alternate financial arrangements such as receipt of anticipated
federal, state or other grants or aid, passage of increased legislative
authority to issue longer term instruments or obtaining other refinancing.

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

      Some municipal lease securities may be deemed to be "illiquid"
securities. If they are illiquid, their purchase by the Fund will be subject
to the percentage limitations on the Fund's investments in illiquid
securities described in the Prospectus and below in "Illiquid and Restricted
Securities." The Fund may not invest more than 5% of its net assets in
unrated or illiquid municipal lease obligations. That limitation does not
apply to a municipal lease obligation that the Manager has determined to be
liquid under guidelines set by the Board of Trustees and that has received an
investment grade rating from a nationally-recognized rating organization.

      Those Board guidelines require the Manager to evaluate, among other
things:
o     the frequency of trades and price quotations for the obligation;
o     the number of dealers willing to purchase or sell the securities and
         the number of potential buyers;
o     the willingness of dealers to undertake to make a market in the
         obligation;
o     the nature of the marketplace trades for the securities;
o     the likelihood that the marketability of the obligation will continue
         while the Fund owns it; and
o     the likelihood that the municipality will continue to appropriate
         funding for the leased property.

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

      To reduce the risk of "non-appropriation," the Fund will not invest
more than 10% of its total assets in municipal leases that contain
"non-appropriation" clauses. Also, the Fund will invest in leases with
non-appropriation clauses only if certain conditions are met:

o     the nature of the leased equipment or property is such that its
         ownership or use is essential to a governmental function of a
         municipality,
o     appropriate covenants are obtained from the municipal obligor
         prohibiting the substitution or purchase of similar equipment if
         lease payments are not appropriated,
o     the lease obligor has maintained good market acceptability in the past,
o     the investment is of a size that will be attractive to institutional
         investors, and
o     the underlying leased equipment has elements of portability and/or use
         that enhance its marketability if foreclosure is ever required on
         the underlying equipment.

      Municipal leases may be subject to an "abatement" risk. The leases
underlying certain municipal lease obligations may state that lease payments
are subject to partial or full abatement. That abatement might occur, for
example, if material damage or destruction of the leased property interferes
with the lessee's use of the property. In some cases that risk might be
reduced by insurance covering the leased property, or by the use of credit
enhancements such as letters of credit to back lease payments, or perhaps by
the lessee's maintenance of reserve funds for lease payments.

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

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

      Subject to the foregoing percentage limitations on investments in
Illiquid Securities, the Fund may invest in a tax-exempt lease only if the
following requirements are met:
o     the Fund must receive the opinion of issuer's legal counsel that the
         tax-exempt obligation will generate interest income that is exempt
         from federal and New York State income taxes; that legal counsel
         must be experienced in municipal lease transactions;
o     the Fund must receive an opinion that, as of the effective date of the
         lease or at the date of the Fund's purchase of the obligation (if
         that occurs on a date other than the effective date of the lease),
         the lease is the valid and binding obligation of the governmental
         issuer;
o     the Fund must receive an opinion of issuer's legal counsel that the
         obligation has been issued in compliance with all applicable federal
         and state securities laws;
o     the Manager must perform its own credit analysis in instances where a
         credit rating has not been provided for the lease obligation by a
         national rating agency;
o     if a particular exempt obligation is unrated and, in the opinion of the
         Manager, not of investment- grade quality, then at the time the Fund
         makes the investment the Manager must include the investment within
         the Fund's illiquid investments; it will also be subject to the
         Fund's overall limitation on investments in unrated tax-exempt
         leases.

      Municipal lease obligations are generally not rated by rating
organizations. In those cases the Manager must perform its own credit
analysis of the obligation. In those cases, the Manager generally will rely
on current information furnished by the issuer or obtained from other sources
considered by the Manager to be reliable.

      |X|   Credit Ratings of Municipal Securities. Ratings by ratings
organizations such as Moody's Investors Service ("Moody's"), Standard &
Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc.
("Standard and Poor's") and Fitch, Inc. ("Fitch"), represent the respective
rating agency's opinions of the credit quality of the municipal securities
they undertake to rate. However, their ratings are general opinions and are
not guarantees of quality. Credit ratings typically evaluate the safety of
municipal and interest payments, not market risk. Municipal securities that
have the same maturity, coupon and rating may have different yields, while
other municipal securities that have the same maturity and coupon but
different ratings may have the same yield.

      After the Fund buys a municipal security, it may cease to be rated or
its rating may be reduced below the minimum required to enable the Fund to
buy it. Neither event requires the Fund to sell a security, but the Manager
will consider those events in determining whether the Fund should continue to
hold that security. If ratings given by Moody's, Standard & Poor's, or
another rating organization change as a result of changes in those rating
organizations or their rating systems, the Fund will attempt to use
comparable ratings as standards for investments in accordance with the Fund's
investment policies.

      The Fund may buy municipal securities that are "pre-refunded." The
issuer's obligation to repay the principal value of the security is generally
collateralized with U.S. government securities placed in an escrow account.
This causes the pre-refunded security to have essentially the same risks of
default as a "AAA"-rated security.

      The rating definitions of Moody's, Standard & Poor's and Fitch
municipal securities are contained in Appendix A to this Statement of
Additional Information. The Fund can purchase securities that are unrated by
nationally-recognized rating organizations. The Manager will make its own
assessment of the credit quality of unrated issues the Fund buys. The Manager
will use criteria similar to those used by the rating agencies, and assign a
rating category to a security that is comparable to what the Manager believes
a rating agency would assign to that security. However, the Manager's rating
does not constitute a guarantee of the quality of a particular issue.

      In evaluating the credit quality of a particular security, whether it
is rated or unrated, the Manager will normally take into consideration a
number of factors. Among them are the financial resources of the issuer, or
the underlying source of funds for debt service on a security, the issuer's
sensitivity to economic conditions and trends, any operating history of the
facility financed by the obligation and the degree of community support for
it, the capabilities of the issuer's management and regulatory factors
affecting the issuer and the particular facility.


o     Special Risks of Lower-Grade Securities. Lower-grade securities,
commonly called "junk bonds," may offer higher yields than securities rated
in investment grade rating categories. In addition to having a greater risk
of default than higher-grade securities, there may be less of a market for
these securities. As a result they may be more difficult to value and harder
to sell at an acceptable price. These additional risks mean that the Fund
might not receive the anticipated level of income from these securities, and
the Fund's net asset value could be affected by declines in the value of
lower-grade securities. However, because the added risk of lower-grade
securities might not be consistent with the portion of the Fund's objective
to seek preservation of capital, the Fund limits its investments in
lower-grade securities to not more than 25% of its tax-exempt investments
(including New York municipal securities).


      While securities rated "Baa" by Moody's or "BBB" by Standard & Poor's
or Fitch are considered investment grade, they may be subject to special
risks and have some speculative characteristics. The Fund will not invest
more than 5% of its net assets in the securities of any one issuer if the
securities are rated "B" or below by a national rating organization or are
given a comparable rating by the Manager.


Special Investment Considerations - New York Municipal Securities.  As
explained in the Prospectus, the Fund's investments are highly sensitive to
the fiscal stability of New York State (referred to in this section as the
"State") and its subdivisions, agencies, instrumentalities or authorities,
including New York City (the "City"), which issue the municipal securities in
which the Fund invests.  The following information on risk factors in
concentrating in New York municipal securities is only a summary, based on
the State's Annual Information Statement dated September 19, 2004, as updated
on January 25, 2005 and supplemented on March 15, 2005 and on
publicly-available official statements relating to offerings by issuers of
New York municipal securities on or prior to March 1, 2005 with respect to
offerings of New York State, and on or prior to February 17, 2005 with
respect to offerings by the City.  No representation is made as to the
accuracy of this information.

      During the mid-1970's the State, some of its agencies,
instrumentalities and public benefit corporations (the "Authorities"), and
certain of its municipalities faced serious financial difficulties. To
address many of these financial problems, the State developed various
programs, many of which were successful in reducing the financial crisis.
Any further financial problems experienced by these Authorities or
municipalities could have a direct adverse effect on the New York municipal
securities in which the Fund invests.

      |X| Factors Affecting Investments in New York State Securities.  On
January 18, 2005, the Governor presented the Executive Budget for 2005-06 to
the New York State Legislature containing the Financial Plan for 2005-06 (the
"2005-06 Executive Budget" or "Executive Budget" containing the "2005-06
Financial Plan" or "Financial Plan").

      The State reported that its economy is experiencing sustained growth,
and is generating tax collections above levels previously forecast.  The New
York Division of the Budget ("DOB") has projected underlying annual receipts
growth of 10.2 percent in 2004-05 and 6.5 percent in 2005-06, based on actual
results observed and a revised economic forecast.

      The State expected an improvement in tax collections, in combination
with savings from the statewide Fiscal Management Plan, to permit the State
to end the 2004-05 fiscal year with a $170 million cash surplus in the
General Fund and to make the maximum possible contribution ($70 million) to
the Tax Stabilization ("Rainy Day") Fund, bringing the balance to $864
million, equal to its statutory cap of 2 percent of General Fund spending.

      The revised revenue and spending projections also reduced the projected
budget gaps to $4.2 billion in 2005-06 and $5.8 billion in 2006-07, at the
lower end of the range previously forecast.  The 2005-06 Executive Budget
recommended closing the $4.2 billion gap primarily through permanent spending
restraint, supplemented with limited levels of revenue enhancements and
nonrecurring resources.  DOB projected that the recommendations would produce
net recurring savings of roughly $3 billion annually, reducing the 2006-07
and 2007-08 budget gaps to about $2.7 billion

      Many complex political, social and economic forces influence the
State's economy and finances.  Such forces may affect the State's Financial
Plan unpredictably from fiscal year to fiscal year.  For example, the
Financial Plan is necessarily based on forecasts of national and State
economic activity.  Economic forecasts have frequently failed to accurately
predict the timing and magnitude of specific and cyclical changes to the
national and State economies.  The Financial Plan also relies on estimates
and assumptions concerning Federal aid, law changes and audit activity.  DOB
believed that its current receipts and spending estimates related to the
performance of the State and national economies were reasonable.  However,
there could be no assurance that actual results would not differ materially
and adversely from the current forecast.

      DOB could provide no assurance that the Legislature would adopt a
budget for 2005-06, before the fiscal year begins on April 1, 2005.
Furthermore, DOB could provide no assurance that, when the Legislature does
enact a budget, it would not differ materially and adversely from the 2005-06
Financial Plan projections set forth by the Governor.

      DOB believed that the U.S. economy would grow at approximately its
long-term trend growth rate through the end of its forecast horizon, but that
risks attend this forecast.  The forecast was contingent upon the absence of
any further severe shocks to the economy.  Unpredictable events such as a
terrorist attack remain the biggest risk to economic expansion.  Such a shock
could induce firms to postpone their spending and hiring plans yet again,
reducing future investment and employment, which in turn could result in
lower consumption growth.  Moreover, successful attacks on oil facilities
abroad could send oil prices back up to their Fall 2004 highs, having adverse
economic repercussions.  A major setback in the Iraqi conflict could have a
similar impact.

      On the other hand, a more rapid increase in export growth due to either
a weakened dollar or faster global growth could generate a somewhat stronger
increase in total output than expected.  Similarly, lower inflation than
expected, perhaps as a result of an even greater drop in the price of oil or
stronger productivity growth than expected, could induce the Federal Reserve
to be even more measured in its interest rate increases, resulting in
stronger consumption and investment growth than projected.  Moreover,
stronger employment growth could result in higher real wages, supporting
faster growth in consumer spending than anticipated.

      In addition to the risks described above for the national forecast, the
State believed there were risks specific to New York.  Another attack
targeted at New York City would once again disproportionately affect the
State economy.  Any other such shock that had a strong and prolonged impact
on the financial markets would also disproportionately affect New York State,
resulting in lower income and employment growth than reflected in the current
forecast.  In addition, if the national and world economies grow more slowly
than expected, demand for New York State goods and services would also be
lower than projected, dampening employment and income growth relative to the
forecast.  In contrast, should the national and world economies grow faster
than expected, a stronger upturn in stock prices, along with even stronger
activity in mergers and acquisitions and IPOs is possible, resulting in
higher wage growth than projected.  It is important to recall that the
financial markets, which are so pivotal to the direction of the downstate
economy, are notoriously difficult to forecast.  In an environment of global
uncertainty, the pace of both technological and regulatory change is as rapid
as it has ever been, compounding even further the difficulty in projecting
industry revenues and profits.


      New York is the third most populous state in the nation and has a
relatively high level of personal wealth.  The State's economy is diverse,
with a comparatively large share of the nation's financial activities,
information, education and health services employment, and a very small share
of the nation's farming and mining activity.  The State's location and its
air transport facilities and natural harbors have made it an important link
in international commerce.  Travel and tourism constitute an important part
of the economy.  Like the rest of the nation, New York has a declining
proportion of its workforce engaged in manufacturing, and an increasing
proportion engaged in service industries.

      Relative to the nation, the State has a smaller share of manufacturing
and construction and a larger share of service-related industries.  The
State's financial activities sector share, as measured by wages, is
particularly large relative to the nation.  The State has projected that it
is likely to be less affected than the nation as a whole during an economic
recession that is concentrated in manufacturing and construction, but likely
to be more affected by any economic downturn that is concentrated in the
services sector.


      The State reported that above-trend national growth rates have helped
to buttress the State's economy.  The State was estimated to have emerged
from recession in the summer of 2003.  The New York City economy appeared to
be on its way to recovery from the impact of the September 11, 2001 attack,
reversing several years where the City's job base was in decline.  The
continued strengthening of the State economy was expected to help sustain the
housing market, although not at the torrid pace of growth observed in 2004.
Moreover, with the pickup in equity market activity toward the end of 2004,
the profit outlook for the finance industry was observed to be brightening,
though the levels of profits for the year were not expected to match that of
2003.  Bonus growth was expected to slow to 15 percent resulting in total New
York wage growth of 4.9 percent for 2005, reduced modestly from 5.7 percent
in 2004.  State nonagricultural employment was projected to rise 1.1 percent
in 2005, a significant improvement compared with 0.4 percent growth for 2004,
but below projected growth of 1.8 percent for the nation.

      The State reported that following two years of growth well above the
economy's long-term trend rate, the nation is entering the fourth year of
economic expansion.  The national economy added an average of 185,000 jobs
per month in 2004, almost returning total payroll employment to its
pre-recession level.  Despite lackluster growth in both employment and wages,
the bedrock of the nation's economic recovery has to this point been
household spending, fueled by two rounds of tax cuts and very low interest
rates.  However, those supports were expected to begin to diminish in 2005,
bringing economic growth closer to its estimated long-term trend rate.  DOB
projected growth in real U.S. GDP to decelerate from 4.4 percent for 2004 to
3.4 percent for 2005.

      DOB projected measured steady trend growth throughout the forecast
period, permitting the Federal Reserve to maintain its "measured" course of
interest rate increases. Data indicated that employment growth may finally be
rebounding to rates that are more typical of a maturing expansion.  Total
nonagricultural employment was projected to grow 1.8 percent in 2005,
following an increase of 1.0 percent in 2004.  The U.S. employment rate was
expected to decline to 5.3 percent in 2005, from 5.5 percent in 2004.  The
inflation rate, measured by the Consumer Price Index (CPI), was forecast to
be 2.5 percent in 2005, following a similar rate in 2004.

      |X| The 2004-05 Financial Plan.  The State projected General Fund
receipts of $45.1 billion in 2005-06, an increase of $1.6 billion (3.6
percent) from 2004-05.  The increase in General Fund receipts was attributed
to increased collections from the personal income tax and sales tax,
resulting from temporary tax actions taken in the 2003-04 budget as well as
continued growth resulting from the improving economic climate.

      General Fund Personal Income Tax (PIT) receipts were projected to reach
$19.7 billion, an increase of $1.3 billion from 2004-05 offset by increased
School Tax Relief deposits of $130 million.  The 2005-06 estimate reflects
the accelerated phase-out of the temporary tax surcharge and other tax
actions.

      General Fund user taxes and fees receipts for 2005-06 were projected to
reach $8.6 billion, a decrease of $130 million from 2004-05.  The sales tax
and use tax was projected to decrease by $146 million from 2004-05 due to the
loss of the temporary one-quarter percent sales tax surcharge which was
partially offset by growth in the sales tax base.  The other user taxes and
fees were projected to increase by $16 million from 2004-05, due mainly to
the proposed increase in alcoholic beverage taxes partially offset by the
increased dedication of motor vehicle fees to transportation funds.

      General Fund business tax receipts in 2004-05 were projected to be $4.1
billion or $302 million over 2004-05.  This reflected the continued strength
of corporate and bank profitability.

      General Fund other taxes, which include estate and gift tax, real
property gains tax, and pari-mutuel taxes, were estimated for 2005-06 to be
$778 million, which was $48 million above 2004-05.  This estimate reflected
an increase in estimated receipts from the estate tax, offset by minor losses
in the other sources of revenue in this category.

      General Fund miscellaneous receipts were projected to total $2.5
billion in 2005-06, an increase of $158 million from 2004-05.  Recommended
increases in various fines and penalties, property sales, local government
reimbursements, the proposal to increase the Part D Medicare subsidy, the
increased payments from the New York Power Authority, and the expected modest
increase in abandoned property receipts.  These were offset by losses of
tobacco bond proceeds, the loss of the deposit of the wireless surcharge in
the General Fund and the loss of the Local Government Assistance Corporation
sales tax deposit.

      Transfers from other Funds to the General Fund were expected to total
$9.3 billion, an increase of $289 million from 2004-05.  This annual increase
comprised primarily higher transfers from the Revenue Bond Tax Fund ($287
million), the Local Government Assistance Corporation ($129 million), offset
by lower transfers from the Clean Water/Clean Air Fund ($10 million) and all
other funds ($117 million).

      The State projected adjusted General Fund disbursements, including
transfers to other funds, of $45.1 billion in 2005-06, an increase $1.2
billion from 2004-05.  Increases in Grants to Local Governments ($454
million), State Operations ($448 million), General State Charges ($224
million), and transfers ($34 million) accounted for the change.


      |_|   State Governmental Funds Group.  Substantially all State
non-pension financial operations are accounted for in the State's
governmental funds group.  Governmental funds include the following four fund
types, the State's projections of receipts and disbursements in which
comprise the State's Financial Plan:

      o     the General Fund, which is the major operating fund of the State
and receives all receipts that are not required by law to be deposited in
another fund, including most State tax receipts and certain fees, transfers
from other funds and miscellaneous receipts from other sources;

      o     Special Revenue Funds, which account for the proceeds of specific
revenue sources (other than expendable trusts or major capital projects),
such as federal grants, that are legally restricted to specified purposes;

      o     Capital Projects Funds, which account for financial resources of
the State to be used for the acquisition or construction of major capital
facilities (other than those financed by Special Revenue Funds, Proprietary
Funds and Fiduciary Funds); and

      o     Debt Service Funds, which account for the accumulation of
resources (including receipts from certain taxes, transfers from other funds
and miscellaneous revenues, such as dormitory room rental fees, which are
dedicated by statute for payment of lease-purchase rentals) for the payment
of general long-term debt service and related costs and payments under
lease-purchase and contractual-obligation financing arrangements.

      |_|   Local Government Assistance Corporation.  In 1990, as part of a
State fiscal reform program, legislation was enacted creating Local
Government Assistance Corporation (LGAC), a public benefit corporation
empowered to issue long-term obligations to fund payments to local
governments that had been traditionally funded through the State's annual
seasonal borrowing.  The legislation also dedicated revenues equal to one
percent of the State sales and use tax to pay debt service on these bonds.
As of June 1995, LGAC had issued bonds and notes to provide net proceeds of
$4.7 billion, completing the program.  The issuance of these long-term
obligations, which are to be amortized over no more than 30 years, was
expected to eliminate the need for continued short-term seasonal borrowing.

      The legislation also imposed a limitation on the annual seasonal
borrowing of the State except in cases where the Governor and the legislative
leaders have certified the need for additional seasonal borrowing, based on
emergency or extraordinary factors or factors unanticipated at the time of
adoption of the budget, and provided a schedule for eliminating it over
time.  Any seasonal borrowing is required by law to be eliminated by the
fourth fiscal year after the limit was first exceeded (i.e., no tax and
revenue anticipation note (TRAN) seasonal borrowing in the fifth year).  This
provision limiting the State's seasonal borrowing practices was included as a
covenant with LGAC's bondholders in the resolution authorizing such bonds.
No restrictions were placed upon the State's ability to issue deficit notes.

      The impact of the LGAC reforms, as well as other changes in revenue and
spending patterns, is that the State has been able to meet its cash flow
needs throughout the fiscal year without relying on short-term seasonal
borrowings.

      |X|   Authorities.  The fiscal stability of the State is related to the
fiscal stability of its public Authorities.  Authorities refer to public
benefit corporations, created pursuant to State law, other than local
authorities.  Authorities have various responsibilities, including those
which finance, construct and/or operate revenue-producing public facilities.
Authorities are not subject to the constitutional restrictions on the
incurrence of debt that apply to the State itself, and may issue bonds and
notes within the amounts and restrictions set forth in their legislative
authorization.  The State's access to the public credit markets could be
impaired and the market price of its outstanding debt may be materially and
adversely affected if any of its Authorities were to default on their
respective obligations, especially those involving State-supported or
State-related debt. As of December 31, 2003, there were 18 public authorities
that had outstanding debt of $100 million or more, and the aggregate
outstanding debt, including refunding bonds, of these State public
authorities was $114.9 billion, only a portion of which constituted
State-supported or State-related debt.

      Authorities generally pay their operating expenses and debt service
costs from revenues generated by the projects they finance or operate, such
as tolls charged for the use of highways, bridges or tunnels, charges for
public power, electric and gas utility services, rentals charged for housing
units and charges for occupancy at medical care facilities.  In addition,
State legislation authorizes several financing techniques for Authorities.
There are statutory arrangements providing for State local assistance
payments otherwise payable to localities to be made under certain
circumstances to Authorities.  Although the State has no obligation to
provide additional assistance to localities whose local assistance payments
have been paid to Authorities under these arrangements, the affected
localities could seek additional State assistance if local assistance
payments are diverted.  Some Authorities also receive moneys from State
appropriations to pay for the operating costs of certain of their programs.


      |X|   Ratings of the State's Securities.  As of March 1, 2005, S&P had
rated the State's general obligation bonds "AA," Moody's had rated those
bonds "A1" and Fitch had rated those bonds "AA-".


      Ratings reflect only the views of the ratings organizations, and an
explanation of the significance of a rating must be obtained from the rating
agency furnishing the rating.  There is no assurance that a particular rating
will continue for any given period of time or that any such rating will not
be revised downward or withdrawn entirely if, in the judgment of the agency
originally establishing the rating, circumstances so warrant. A downward
revision or withdrawal of a rating may have an effect on the market price of
the State and municipal securities in which the Fund invests.

      |X|   The State's General Obligation Debt.  As of March 31, 2004, the
State had approximately $3.8 billion in general obligation bonds
outstanding.  Principal and interest due on general obligation bonds were
$509 million for the 2003-04 fiscal year and were estimated to be $486
million for the State's 2004-05 fiscal year.

      |X|   Pending Litigation.  The State is a defendant in numerous legal
proceedings pertaining to matters incidental to the performance of routine
governmental operations.  That litigation includes, but is not limited to,
claims asserted against the State involving State finances and programs and
arising from alleged violations of civil rights, alleged torts, alleged
breaches of contracts, real property proceedings and other alleged violations
of State and Federal laws.  These proceedings could affect adversely the
financial condition of the State in the 2004-05 fiscal year or thereafter.


      The State has reported its belief that the 2004-05 Financial Plan
included sufficient reserves to offset the costs associated with the payment
of judgments that may be required during the 2004-05 fiscal year.  These
reserves included (but were not limited to) amounts appropriated for Court of
Claims payments and projected fund balances in the General Fund.  In
addition, any amounts ultimately required to be paid by the State may not be
subject to settlement or may be paid over a multi-year period.  There could
be no assurance given, however, that adverse decisions in legal proceedings
against the State would not exceed the amount of all potential 2004-05
Financial Plan resources available for the payment of judgments, and could
therefore adversely affect the ability of the State to maintain a balanced
2004-05 Financial Plan.


      In addition, the State is party to other claims and litigation that
either its legal counsel has advised are not probable that the State will
suffer adverse court decisions or the State has determined are not material.
Although the amounts of potential losses, if any, are not presently
determinable, it was the State's opinion that its ultimate liability in these
cases is not expected to have a material adverse effect on the State's
financial position in the 2004-05 fiscal year or thereafter.

      |X|   Other Functions.  Certain localities in addition to the City have
experienced financial problems and have requested and received additional
State assistance during the last several State fiscal years. The potential
impact on the State of any future requests by localities for additional
oversight or financial assistance was not included in the projections of the
State's receipts and disbursements for the State's 2004-05 fiscal year or
thereafter.

      |X|   Factors Affecting Investments in New York City Municipal
Securities. The City has a highly diversified economic base, with a
substantial volume of business activity in the service, wholesale and retail
trade and manufacturing industries and is the location of many securities,
banking, law, accounting, news media and advertising firms.


      The City is a major seaport and focal point for international
business.  Many of the major corporations headquartered in the City are
multinational in scope and have extensive foreign operations.  Numerous
foreign-owned companies in the United States are also headquartered in the
City.  These firms, which have increased in number substantially over the
past decade, are found in all sectors of the City's economy, but are
concentrated in trade, professional and business services, tourism and
finance.  The City is the location of the headquarters of the United Nations,
and several affiliated organizations maintain their principal offices in the
City.  A large diplomatic community exists in the City to staff the missions
to the United Nations and the foreign consulates.

      Economic activity in the City has experienced periods of growth and
recession and can be expected to experience periods of growth and recession
in the future. The City experienced a recession in the early 1970s through
the middle of that decade, followed by a period of expansion in the late
1970s through the late 1980s.  The City fell into recession again in the
early 1990s which was followed by an expansion that lasted until 2001.  The
City's financial plan assumed that the economic slowdown that began in 2001
as a result of the September 11 attack, a national economic recession, and a
downturn in the securities industry had come to an end in 2004.  The
financial plan assumed continued moderate growth in calendar year 2005.

       For each of the 1981 through 2004 fiscal years, the City's General
Fund had an operating surplus, before discretionary and other transfers, and
achieved balanced operating results as reported in accordance with then
applicable generally accepted accounting principles ("GAAP") after
discretionary and other transfers.  The City has been required to close
substantial gaps between forecast revenues and forecast expenditures in order
to maintain balanced operating results. There can be no assurance that the
City will continue to maintain balanced operating results as required by
State law without tax or other revenue increases or reductions in City
services or entitlement programs, which could adversely affect the City's
economic base.

      The Mayor is responsible for preparing the City's financial plan,
including the City's financial plan for the 2005 through 2008 fiscal years
submitted to the Control Board on June 29, 2004 (the "June Financial Plan"
and as subsequently modified to include the Mayor's preliminary budget for
the 2006 fiscal year and extended to include the 2009 fiscal, the "2005-2009
Financial Plan", or "Financial Plan").  The City's projections set forth in
the Financial Plan are based on various assumptions and contingencies which
are uncertain and which may not materialize.


      Implementation of the Financial Plan is dependent upon the City's
ability to market its securities successfully.  Implementation of the
Financial Plan is also dependent upon the ability to market the securities of
other financing entities, including the New York City Municipal Water Finance
Authority ("Water Authority"), which issues debt secured by water and sewer
revenues.  In addition, the City issues revenue and tax anticipation notes to
finance its seasonal working capital requirements.  The success of projected
public sales of City, Water Authority and other bonds and notes will be
subject to prevailing market conditions.  Future developments concerning the
City and public discussion of such developments, as well as prevailing market
conditions, may affect the market for outstanding City general obligation
bonds and notes.


      |X|   The City's 2005-09 Financial Plan.  For the 2004 fiscal year, the
City's General Fund had an operating surplus of $1.928 billion, before
discretionary transfers, and achieved balanced operating results in
accordance with GAAP, after discretionary transfers.  The 2004 fiscal year
was the twenty-fourth consecutive year that the City had achieved balanced
operating results when reported in accordance with GAAP.

      The Financial Plan projected revenues and expenditures for the 2005 and
2006 fiscal years balanced in accordance with GAAP, and projected gaps of
$3.7 billion, $3.6 billion and $3.2 billion in fiscal years 2007 through
2009, respectively.  The Financial Plan included an out-year gap-closing
program to reduce expenditures and increase revenues by a total of $3.0
billion in fiscal years 2005 and 2006, and $1.9 billion and $1.7 billion in
fiscal years 2007 and 2008, respectively.

      The Financial Plan sets forth gap-closing actions to eliminate a
previously projected gap for the 2006 fiscal year and to reduce previously
projected gaps for fiscal years 2007 and 2008.  The gap-closing actions
include:  (i) reduced agency expenditures or increased revenues totaling $423
million, $506 million, $350 million and $349 million in fiscal years 2005
through 2008, respectively; (ii) debt service savings of $10 million and $85
million in fiscal years 2005 and 2006, respectively; (iii) $85 million from
the lease with the Port Authority of New York and New Jersey (the "Port
Authority") for LaGuardia and John F. Kennedy International Airports and taxi
medallion sales; (iv) decreased pension and health insurance costs of $325
million and $200 million in fiscal years 2006 and 2007, respectively, which
will require the passage of State legislation and, in the case of health
insurance costs, will require approval by the municipal unions; and (v)
additional State actions of $500 million, $200 million and $100 million in
fiscal years 2006 through 2008, respectively, and federal actions of $250
million in fiscal year 2006, which require the approval of the State and
federal governments.  Additional federal actions could include the provision
of homeland security funding on a threat-based allocation, Medicaid reforms,
increased funding for local law enforcement or other federal assistance.
Additional State actions could include increased State Medicaid share to
cover all children with disabilities, the continued State takeover of the
City's funding of Medicaid long-term care and Family Health Plus or other
State assistance.

      The Financial Plan made provisions for wage increases for all City
employees for the 2002-05 round of bargaining.  Any labor settlement in
excess of the City's projections could result in substantial additional costs
to the City.  Each incremental 1% wage increase for the portion of the City's
workforce which did not yet have settled contracts for the 2002-05 round of
bargaining would cost approximately $170 million annually.  The Financial
Plan made no provision for any wage increases subsequent to the 2002-05 round
of bargaining.

      The Mayor has publicly noted in connection with publication of his
Preliminary Budget for fiscal year 2006 that the City may be faced with
substantial additional costs, not provided for in that budget, as a result of
court mandate in connection with the Campaign for Fiscal Equity lawsuit or as
may be required to support mass transit service by the Metropolitan
Transportation Authority in the City.  In addition, the economic and
financial condition of the City may be affected by various financial, social,
economic, geo-political and other factors which could have a material effect
on the City.

      The Financial Plan is based on numerous assumptions, including the
condition of the City's and the region's economies and the concomitant
receipt of economically sensitive tax revenues in the amounts projected.  The
Financial Plan is subject to various other uncertainties and contingencies
relating to, among other factors, the continuing effects on the City economy
of the September 11 attack, the extent, if any, to which wage increases for
City employees exceed the annual wage costs assumed for the 2005 through 2009
fiscal years; realization of projected interest earnings for pension fund
assets and current assumptions with respect to wages for City employees
affecting the City's required pension fund contributions; the willingness and
ability of the State to provide the aid contemplated by the Financial Plan
and to take various other actions to assist the City; the ability of HHC and
other such entities to maintain balanced budgets; the willingness of the
federal government to provide the amount of federal aid contemplated in the
Financial Plan; the impact on City revenues and expenditures of federal and
State welfare reform and any future legislation affecting Medicare or other
entitlement programs; adoption of the City's budgets by the City Council in
substantially the forms submitted by the Mayor; the ability of the City to
implement cost reduction initiatives and the success with which the City
controls expenditures; the impact of conditions in the real estate market on
real estate tax revenues; and the ability of the City and other financing
entities to market their securities successfully in the public credit
markets.  Certain of these assumptions have been questioned by the City
Comptroller and other public officials.


      From time to time, the City Comptroller and other public officials
issue reports and make public statements regarding the City's financial
condition, commenting on, among other matters, the City's financial plans,
projected revenues and expenditures and actions by the City to eliminate
projected operating deficits.  Some of these reports and statements have
warned that the City may have underestimated certain expenditures and
overestimated certain revenues and have suggested that the City may not have
adequately provided for future contingencies.  Certain of these reports have
analyzed the City's future economic and social conditions and have questioned
whether the City has the capacity to generate sufficient revenues in the
future to meet the costs of its expenditure increases and to provide
necessary services.  It is reasonable to expect that reports and statements
will continue to be issued and to engender public comment.


      On December 14, 2004 the City Comptroller released a report on the
adopted budget for fiscal year 2005 and the subsequently modified financial
plan submitted to the Control Board on October 21, 2004 (the "October
Financial Plan").  The report concluded that the City has adopted a fiscal
year 2005 budget that is likely to end fiscal year 2005 in balance, with
reserves available to the City which appear to be sufficient to offset risks
identified by the City Comptroller.  However, the report noted that the
subsequent years of the October Financial Plan continued to contain
multi-billion dollar deficits because the City's expenses continue to outpace
the growth of its revenues.

      On December 8, 2004, the staff of the Office of the State Deputy
Comptroller issued a report on the October Financial Plan.  The report noted
that while the October Financial Plan projected a net increase in tax
revenues, large budget gaps reopen in outlying years because the City
continues to have a structural imbalance between revenues and expenditures,
due to expenditures growing at a faster rate than revenues.

      On December 15, 2004, the staff of the Control Board issued a report
reviewing the October Financial Plan.  In its report, the staff noted that
the City has adopted a fiscal year 2005 budget that is likely to end the year
in balance and with a surplus that can be used to reduce the fiscal year 2006
budget gap, and that the City should be able to easily manage the financial
risks identified in the report for fiscal year 2005 because the fiscal year
2005 budget still contains a $300 million general reserve.  The report noted
that the City's finances remain structurally imbalanced, with revenues
constrained by a forecasted weak economic recovery and the planned phase-out
of recent temporary tax increases and upward pressure continuing on operating
expenditures.  The report noted that spending continues to grow in areas such
as overtime, pensions, Medicaid and debt service.  The report projected that
the combined debt service of the City, Transitional Finance Authority and
Municipal Assistance Corporation would grow by over 24 percent, from $4.3
billion in fiscal year 2005 to $5.3 billion in fiscal year 2008, causing the
portion of tax revenues absorbed by debt service to increase from 15.1
percent in fiscal year 2005 to 16.9 percent in 2008, and noted that the
gap-closing program in the October Financial Plan did not address the growth
in debt service.    The report also noted that the estimated budget gaps do
not reflect any collective bargaining increases after fiscal year 2006,
potential higher rewards on current contracts for the uniformed services or
teachers' union, or additional City spending that may be required to fund
education.


      Various actions proposed in the Financial Plan are uncertain.  If these
measures cannot be implemented, the City will be required to take other
actions to decrease expenditures or increase revenues to maintain a balanced
financial plan.

      The projections and assumptions contained in the Financial Plan are
subject to revision which may involve substantial change, and no assurance
can be given that these estimates and projections, which include actions
which the City expects will be taken but which are not within the City's
control, will be realized.


      |X|   Ratings of the City's Bonds.  As of February 17, 2005, Moody's,
S&P and Fitch rated the City's general obligations bonds A2, A and A+,
respectively.  These ratings reflect only the views of Moody's, S&P and Fitch
from which an explanation of the significance of such ratings may be
obtained.  There is no assurance that those ratings will continue for any
given period of time or that they will not be revised downward or withdrawn
entirely.  Any such downward revision or withdrawal could have an adverse
effect on the market prices of the City's bonds.

      |X|   The City's Outstanding Indebtedness.  As of September 30, 2004,
the City had $31.928 billion of outstanding net long-term indebtedness.

      For its normal operations, the City depends on aid from the State both
to enable the City to balance its budget and to meet its cash requirements.
There can be no assurance that there will not be delays or reductions in
State aid to the City from the amounts projected; that State budgets in
future fiscal years will be adopted by the April 1 statutory deadline; that
interim appropriations will be enacted; or that any such reductions or delays
will not have adverse effects on the City's cash flow or expenditures.  In
addition, the Federal budget negotiation process could result in a reduction
or a delay in the receipt of Federal grants which could have adverse effects
on the City's cash flow or revenues.

      |X|   Pending Litigation.  The City is a defendant in lawsuits
pertaining to material matters as well as claims asserted that are incidental
to performing routine governmental and other functions. That litigation
includes, but is not limited to, actions commenced and claims asserted
against the City arising out of alleged constitutional violations, torts,
breaches of contract, and other violations of law and condemnation
proceedings.  While the ultimate outcome and fiscal impact, if any, on the
City of such proceedings and claims were not predictable, adverse
determinations in certain of them might have a material adverse effect upon
the City's ability to carry out the Financial Plan.  For the fiscal year
ended on June 30, 2004, the City paid $591 million for judgments and claims,
$159.8 million of which was reimbursed by the Health & Hospitals
Corporation.  The Financial Plan includes provisions for the payment of
judgments and claims of $612.2 million, $640.7 million, $675.5 million,
$717.8 million and $768.7 million for the 2005 through 2009 fiscal years,
respectively.  The City has estimated that its potential future liability for
outstanding claims against it as of June 30, 2004 amounted to approximately
$4.4 billion.


Tobacco Settlement Revenue Bonds. The Fund may invest a significant portion
of its assets in tobacco settlement revenue bonds.  As of the Fund's fiscal
year ended December 31, 2004, 10.0% of the Fund's assets were invested in
tobacco revenue settlement bonds.

      Tobacco settlement revenue bonds are secured by an issuing state's
proportionate share in the Master Settlement Agreement ("MSA"). The MSA is an
agreement, reached out of court in November 1998 between 46 states and nearly
all the U.S. tobacco manufacturers (approximately 99% of the current combined
market share of tobacco manufacturers). The MSA provides for payments
annually by the manufacturers to the states and jurisdictions in perpetuity,
in exchange for releasing all claims against the manufacturers and a pledge
of no further litigation. Tobacco manufacturers pay into a master escrow
trust based on their market share, and each state receives a fixed percentage
of the payment as set forth in the MSA.

      A number of states have securitized the future flow of those payments
by selling bonds pursuant to indentures, some through distinct governmental
entities created for such purpose. The bonds are backed by the future revenue
flow that is used for principal and interest payments on the bonds. Annual
payments on the bonds, and thus risk to the Fund, are highly dependent on the
receipt of future settlement payments to the state or its governmental
entity, as well as several other factors. The actual amount of future
settlement payments, therefore, is dependent on many factors, including, but
not limited to, annual domestic cigarette shipments, cigarette consumption,
inflation and the financial capability of participating tobacco companies. As
a result, payments made by tobacco manufacturers could be negatively impacted
if the decrease in tobacco consumption is significantly greater than the
forecasted decline. A market share loss by the MSA companies to non-MSA
participating tobacco manufacturers would cause a downward adjustment in the
payment amounts. A participating manufacturer filing for bankruptcy also
could cause delays or reductions in bond payments. The MSA itself has been
subject to legal challenges and has, to date, withstood those challenges.


      On September 21, 2004, a civil trial (United States v. Philip Morris,
et. al.) began in U.S. district court nearly five years after the U.S.
Department of Justice first filed charges against the tobacco industry. The
federal government alleges that the major tobacco companies defrauded and
misled the American public about the health risks associated with smoking
cigarettes. The civil lawsuit seeks a disgorgement of $280 billion,
representing industry profits, and funding for cessation and
counter-advertising programs, and release of all industry documents. However,
in February 2005, the Federal Circuit Court of Appeals for the District of
Columbia dismissed the specific claim seeking the disgorgement of $280
billion. The named defendant tobacco companies represent approximately 98% of
the tobacco industry's market share. The tobacco industry denies any
wrongdoing and counters that it has greatly modified its practices, including
warning labels on cigarette packs since the 1960s and agreeing to the MSA
with the states. A negative outcome to the trial would adversely affect the
MSA companies and, in turn, could potentially cause delays or reductions in
bond payments by those companies. However, to date, it is not possible to
predict the outcome of the litigation.


Other Investment Techniques and Strategies. In seeking its objective, the
Fund may from time to time employ the types of investment strategies and
investments described below. It is not required to use all of these
strategies at all times, and at times may not use any of them.

      |X|   Floating Rate and Variable Rate Obligations. Variable rate demand
obligations may have a demand feature that allows the Fund to tender the
obligation to the issuer or a third party prior to its maturity. The tender
may be at par value plus accrued interest, according to the terms of the
obligations.
      The interest rate on a floating rate demand note is based on a stated
prevailing market rate, such as a bank's prime rate, the 91-day U.S. Treasury
Bill rate or some other standard, and is adjusted automatically each time
such rate is adjusted. The interest rate on a variable rate note is also
based on a stated prevailing market rate but is adjusted automatically at
specified intervals of not less than one year. Generally, the changes in the
interest rate on such securities reduce the fluctuation in their market
value. As interest rates decrease or increase, the potential for capital
appreciation or depreciation is less than that for fixed-rate obligations of
the same maturity. The Manager may determine that an unrated floating rate or
variable rate obligation meets the Fund's quality standards by reason of the
backing provided by a letter of credit or guarantee issued by a bank that
meets those quality standards.

      Floating rate and variable rate demand notes that have a stated
maturity in excess of one year may have features that permit the holder to
recover the principal amount of the underlying security at specified
intervals not exceeding one year and upon no more than 30 days' notice. The
issuer of that type of note normally has a corresponding right in its
discretion, after a given period, to prepay the outstanding principal amount
of the note plus accrued interest. Generally the issuer must provide a
specified number of days' notice to the holder.

      |X|   Inverse Floaters and Other Derivative Investments. "Inverse
floaters" are municipal obligations on which the interest rates typically
fall as market rates increase and increase as market rates fall. Changes in
market interest rates or the floating rate of the security inversely affect
the residual interest rate of an inverse floater. As a result, the price of
an inverse floater will be considerably more volatile than that of a
fixed-rate obligation when interest rates change. The Fund can invest up to
20% of its total assets in inverse floaters. Certain inverse floaters may be
illiquid and therefore subject to the Fund's limitation on illiquid
securities.

      To provide investment leverage, a municipal issuer might decide to
issue two variable rate obligations instead of a single long-term, fixed-rate
bond. The interest rate on one obligation reflects short-term interest rates.
The interest rate on the other instrument, the inverse floater, reflects the
approximate rate the issuer would have paid on a fixed-rate bond, multiplied
by a factor of two, minus the rate paid on the short-term instrument. The two
portions may be recombined to create a fixed-rate bond. The Manager might
acquire both portions of that type of offering, to reduce the effect of the
volatility of the individual securities. This provides the Manager with a
flexible portfolio management tool to vary the degree of investment leverage
efficiently under different market conditions.

      Inverse floaters may offer relatively high current income, reflecting
the spread between short-term and long-term tax-exempt interest rates. As
long as the municipal yield curve remains relatively steep and short-term
rates remain relatively low, owners of inverse floaters will have the
opportunity to earn interest at above-market rates because they receive
interest at the higher long-term rates but have paid for bonds with lower
short-term rates. If the yield curve flattens and shifts upward, an inverse
floater will lose value more quickly than a conventional long-term bond. The
Fund might invest in inverse floaters to seek higher tax-exempt yields than
are available from fixed-rate bonds that have comparable maturities and
credit ratings. In some cases, the holder of an inverse floater may have an
option to convert the floater to a fixed-rate bond, pursuant to a "rate-lock"
option.

      Some inverse floaters have a feature known as an interest rate "cap" as
part of the terms of the investment. Investing in inverse floaters that have
interest rate caps might be part of a portfolio strategy to try to maintain a
high current yield for the Fund when the Fund has invested in inverse
floaters that expose the Fund to the risk of short-term interest rate
fluctuations. "Embedded" caps can be used to hedge a portion of the Fund's
exposure to rising interest rates. When interest rates exceed a
pre-determined rate, the cap generates additional cash flows that offset the
decline in interest rates on the inverse floater, and the hedge is
successful. However, the Fund bears the risk that if interest rates do not
rise above the pre-determined rate, the cap (which is purchased for
additional cost) will not provide additional cash flows and will expire
worthless.

      Inverse floaters are a form of derivative investment. Certain
derivatives, such as options, can be used to increase or decrease the Fund's
exposure to changing security prices, interest rates or other factors that
affect the value of securities. However, these techniques could result in
losses to the Fund, if the Manager judges market conditions incorrectly or
employs a strategy that does not correlate well with the Fund's other
investments. These techniques can cause losses if the counterparty does not
perform its promises. An additional risk of investing in municipal securities
that are derivative investments is that their market value could be expected
to vary to a much greater extent than the market value of municipal
securities that are not derivative investments but have similar credit
quality, redemption provisions and maturities.


      |X| Other Derivatives. The Fund can invest in other municipal
derivative securities that pay interest that depends on the change in value
of an underlying asset, interest rate or index.  Examples are interest rate
swaps, municipal bond indices or swap indices.


      |X|   Options Transactions. The Fund can write (that is, sell) call
options. The Fund's call writing is subject to a number of restrictions:
(1)   Calls the Fund sells must be listed on a national securities exchange.
(2)   Each call the Fund writes must be "covered" while it is outstanding.
              That means the Fund must own the investment on which the call
              was written.
(3)   As an operating policy, no more than 5% of the Fund's net assets will
              be invested in options transactions.

      When the Fund writes a call on a security, it receives cash (a
premium). The Fund agrees to sell the underlying investment to a purchaser of
a corresponding call on the same security during the call period at a fixed
exercise price regardless of market price changes during the call period. The
call period is usually not more than nine months. The exercise price may
differ from the market price of the underlying security. The Fund has
retained the risk of loss that the price of the underlying security may
decline during the call period. That risk may be offset to some extent by the
premium the Fund receives. If the value of the investment does not rise above
the call price, it is likely that the call will lapse without being
exercised. In that case the Fund would keep the cash premium and the
investment.

      The Fund's custodian bank, or a securities depository acting for the
custodian, will act as the Fund's escrow agent through the facilities of the
Options Clearing Corporation ("OCC"), as to the investments on which the Fund
has written calls traded on exchanges, or as to other acceptable escrow
securities. In that way, no margin will be required for such transactions.
OCC will release the securities on the expiration of the calls or upon the
Fund's entering into a closing purchase transaction.

      To terminate its obligation on a call it has written, the Fund may
purchase a corresponding call in a "closing purchase transaction."  The Fund
will then realize a profit or loss, depending upon whether the net of the
amount of the option transaction costs and the premium received on the call
the Fund wrote was more or less than the price of the call the Fund purchased
to close out the transaction. A profit may also be realized if the call
lapses unexercised, because the Fund retains the underlying investment and
the premium received. Any such profits are considered short-term capital
gains for federal tax purposes, as are premiums on lapsed calls. When
distributed by the Fund they are taxable as ordinary income.

o     Purchasing Calls and Puts. The Fund may buy calls only to close out a
call it has written, as discussed above. Calls the Fund buys must be listed
on a securities exchange. A call or put option may not be purchased if the
purchase would cause the value of all the Fund's put and call options to
exceed 5% of its total assets. The Fund may not sell puts other than puts it
has previously purchased, to close out a position.

      When the Fund purchases a put, it pays a premium. The Fund then has the
right to sell the underlying investment to a seller of a corresponding put on
the same investment during the put period at a fixed exercise price. Puts on
municipal bond indices are settled in cash. Buying a put on a debt security
the Fund owns enables it to protect itself during the put period against a
decline in the value of the underlying investment below the exercise price.
If the market price of the underlying investment is equal to or above the
exercise price and as a result the put is not exercised or resold, the put
will become worthless at its expiration date. In that case the Fund will lose
its premium payment and the right to sell the underlying investment. A put
may be sold prior to expiration (whether or not at a profit).

o     Risks of Hedging with Options. The use of hedging instruments requires
special skills and knowledge of investment techniques that are different than
what is required for normal portfolio management. If the Manager uses a
hedging instrument at the wrong time or judges market conditions incorrectly,
hedging strategies may reduce the Fund's returns. The Fund could also
experience losses if the prices of its options positions were not correlated
with its other investments.

      The Fund's option activities could affect its portfolio turnover rate
and brokerage commissions. The exercise of calls written by the Fund might
cause the Fund to sell related portfolio securities, thus increasing its
turnover rate. The Fund could pay a brokerage commission each time it buys a
call or put, sells a call or put, or buys or sells an underlying investment
in connection with the exercise of a call or put. Such commissions might be
higher on a relative basis than the commissions for direct purchases or sales
of the underlying investments. Premiums paid for options are small in
relation to the market value of the underlying investments. Consequently, put
and call options offer large amounts of leverage. The leverage offered by
trading in options could result in the Fund's net asset value being more
sensitive to changes in the value of the underlying investment.

      If a covered call written by the Fund is exercised on an investment
that has increased in value, the Fund will be required to sell the investment
at the call price. It will not be able to realize any profit if the
investment has increased in value above the call price.

      An option position may be closed out only on a market that provides
secondary trading for options of the same series. There is no assurance that
a liquid secondary market will exist for a particular option. If the Fund
could not effect a closing purchase transaction due to a lack of a market, it
would have to hold the callable investment until the call lapsed or was
exercised, and could experience losses.


     |X| Interest Rate Swap Transactions.  In an interest rate swap, the Fund
and another party exchange their right to receive or their obligation to pay
interest on a security.  For example, they may swap a right to receive
floating rate payments for fixed rate payments.  The Fund can enter into
swaps only on securities it owns. The Fund cannot enter into swaps with
respect to more than 25% of its total assets.  Also, the Fund will segregate
liquid assets (such as cash or U.S. Government securities) to cover any
amounts it could owe under swaps that exceed the amounts it is entitled to
receive, and it will adjust that amount daily, as needed.  Income from
interest rate swaps may be taxable.

     Swap agreements entail both interest rate risk and credit risk. There is
a risk that, based on movements of interest rates in the future, the payments
made by the Fund under a swap agreement will have been greater than those
received by it. Credit risk arises from the possibility that the counterparty
will default.  If the counterparty to an interest rate swap defaults, the
Fund's loss will consist of the net amount of contractual interest payments
that the Fund has not yet received.  The Manager will monitor the
creditworthiness of counterparties to the Fund's interest rate swap
transactions on an ongoing basis.

      The Fund can enter into swap transactions with appropriate
counterparties pursuant to master netting agreements.  A master netting
agreement provides that all swaps done between the Fund and that counterparty
under the master agreement shall be regarded as parts of an integral
agreement. If on any date amounts are payable under one or more swap
transactions, the net amount payable on that date shall be paid. In addition,
the master netting agreement may provide that if one party defaults generally
or on one swap, the counterparty can terminate the swaps with that party.
Under master netting agreements, if there is a default resulting in a loss to
one party, that party's damages are calculated by reference to the average
cost of a replacement swap with respect to each swap.  The gains and losses
on all swaps are then netted, and the result is the counterparty's gain or
loss on termination. The termination of all swaps and the netting of gains
and losses on termination is generally referred to as "aggregation."


o     Regulatory Aspects of Hedging Instruments. Transactions in options by
the Fund are subject to limitations established by the option exchanges. The
exchanges limit the maximum number of options that may be written or held by
a single investor or group of investors acting in concert. Those limits apply
regardless of whether the options were written or purchased on the same or
different exchanges, or are held in one or more accounts or through one or
more different exchanges or through one or more brokers. Thus, the number of
options that the Fund may write or hold may be affected by options written or
held by other entities, including other investment companies having the same
advisor as the Fund (or an advisor that is an affiliate of the Fund's
advisor). An exchange may order the liquidation of positions found to be in
violation of those limits and may impose certain other sanctions.


|X|   When-Issued  and  Delayed-Delivery  Transactions.  Subject to the Fund's
fundamental  policy  as  stated  in the  Prospectus,  the  Fund  may  purchase
securities on a "when-issued"  basis, and may purchase or sell such securities
on a  "delayed-delivery"  or  "forward  commitment"  basis.  "When-issued"  or
"delayed  delivery"  refers  to  securities  whose  terms  and  indenture  are
available  and for which a market  exists,  but which  are not  available  for
immediate delivery.


      When such transactions are negotiated the price (which is generally
expressed in yield terms) is fixed at the time the commitment is made.
Delivery and payment for the securities take place at a later date. Normally
the settlement date is within six months of the purchase of municipal bonds
and notes. However, the Fund may, from time to time, purchase municipal
securities having a settlement date more than six months and possibly as long
as two years or more after the trade date. The securities are subject to
change in value from market fluctuation during the settlement period. The
value at delivery may be less than the purchase price. For example, changes
in interest rates in a direction other than that expected by the Manager
before settlement will affect the value of such securities and may cause loss
to the Fund. No income begins to accrue to the Fund on a when-issued security
until the Fund receives the security at settlement of the trade.

      The Fund may engage in when-issued transactions in order to secure what
is considered to be an advantageous price and yield at the time of entering
into the obligation. When the Fund engages in when-issued or delayed-delivery
transactions, it relies on the buyer or seller, as the case may be, to
complete the transaction. Its failure to do so may cause the Fund to lose the
opportunity to obtain the security at a price and yield it considers
advantageous.

      When the Fund engages in when-issued and delayed-delivery transactions,
it does so for the purpose of acquiring or selling securities consistent with
its investment objective and policies or for delivery pursuant to options
contracts it has entered into, and not for the purposes of investment
leverage. Although the Fund will enter into when-issued or delayed-delivery
purchase transactions to acquire securities, the Fund may dispose of a
commitment prior to settlement. If the Fund chooses to dispose of the right
to acquire a when-issued security prior to its acquisition or to dispose of
its right to deliver or receive against a forward commitment, it may incur a
gain or loss.

      At the time the Fund makes a commitment to purchase or sell a security
on a when-issued or forward commitment basis, it records the transaction on
its books and reflects the value of the security purchased. In a sale
transaction, it records the proceeds to be received, in determining its net
asset value. The Fund will identify on its books liquid securities at least
equal to the value of purchase commitments until the Fund pays for the
investment.

      When-issued transactions and forward commitments can be used by the
Fund as a defensive technique to hedge against anticipated changes in
interest rates and prices. For instance, in periods of rising interest rates
and falling prices, the Fund might sell securities in its portfolio on a
forward commitment basis to attempt to limit its exposure to anticipated
falling prices. In periods of falling interest rates and rising prices, the
Fund might sell portfolio securities and purchase the same or similar
securities on a when-issued or forward commitment basis, to obtain the
benefit of currently higher cash yields.

      |X|   Zero-Coupon Securities. The Fund can invest without limit in
zero-coupon and delayed interest municipal securities. Zero-coupon securities
do not make periodic interest payments and are sold at a deep discount from
their face value. The buyer recognizes a rate of return determined by the
gradual appreciation of the security, which is redeemed at face value on a
specified maturity date. This discount depends on the time remaining until
maturity, as well as prevailing interest rates, the liquidity of the security
and the credit quality of the issuer. In the absence of threats to the
issuer's credit quality, the discount typically decreases as the maturity
date approaches. Some zero-coupon securities are convertible, in that they
are zero-coupon securities until a predetermined date, at which time they
convert to a security with a specified coupon rate.

      Because zero-coupon securities pay no interest and compound
semi-annually at the rate fixed at the time of their issuance, their value is
generally more volatile than the value of other debt securities. Their value
may fall more dramatically than the value of interest-bearing securities when
interest rates rise. When prevailing interest rates fall, zero-coupon
securities tend to rise more rapidly in value because they have a fixed rate
of return.

      The Fund's investment in zero-coupon securities may cause the Fund to
recognize income and make distributions to shareholders before it receives
any cash payments on the zero-coupon investment. To generate cash to satisfy
those distribution requirements, the Fund may have to sell portfolio
securities that it otherwise might have continued to hold or to use cash
flows from other sources such as the sale of Fund shares.

      |X|   Puts and Standby Commitments. The Fund can acquire "stand-by
commitments" or "puts" with respect to municipal securities it purchases in
order to enhance portfolio liquidity. These arrangements give the Fund the
right to sell the securities at a set price on demand to the issuing
broker-dealer or bank. However, securities having this feature may have a
relatively lower interest rate.

      When the Fund buys a municipal security subject to a standby commitment
to repurchase the security, the Fund is entitled to same-day settlement from
the purchaser. The Fund receives an exercise price equal to the amortized
cost of the underlying security plus any accrued interest at the time of
exercise. A put purchased in conjunction with a municipal security enables
the Fund to sell the underlying security within a specified period of time at
a fixed exercise price.

      The Fund might purchase a standby commitment or put separately in cash
or it might acquire the security subject to the standby commitment or put (at
a price that reflects that additional feature). The Fund will enter into
these transactions only with banks and securities dealers that, in the
Manager's opinion, present minimal credit risks. The Fund's ability to
exercise a put or standby commitment will depend on the ability of the bank
or dealer to pay for the securities if the put or standby commitment is
exercised. If the bank or dealer should default on its obligation, the Fund
might not be able to recover all or a portion of any loss sustained from
having to sell the security elsewhere.

      Puts and standby commitments are not transferable by the Fund. They
terminate if the Fund sells the underlying security to a third party. The
Fund intends to enter into these arrangements to facilitate portfolio
liquidity, although such arrangements might enable the Fund to sell a
security at a pre-arranged price that may be higher than the prevailing
market price at the time the put or standby commitment is exercised. However,
the Fund might refrain from exercising a put or standby commitment if the
exercise price is significantly higher than the prevailing market price, to
avoid imposing a loss on the seller that could jeopardize the Fund's business
relationships with the seller.

      A put or standby commitment increases the cost of the security and
reduces the yield otherwise available from the security. Any consideration
paid by the Fund for the put or standby commitment will be reflected on the
Fund's books as unrealized depreciation while the put or standby commitment
is held, and a realized gain or loss when the put or commitment is exercised
or expires. Interest income received by the Fund from municipal securities
subject to puts or stand-by commitments may not qualify as tax-exempt in its
hands if the terms of the put or stand-by commitment cause the Fund not to be
treated as the tax owner of the underlying municipal securities.

      |X|                 Repurchase Agreements. The Fund can acquire
securities subject to repurchase agreements. It might do so for liquidity
purposes to meet anticipated redemptions of Fund shares, or pending the
investment of the proceeds from sales of Fund shares, or pending the
settlement of portfolio securities transactions.

       In a repurchase transaction, the Fund acquires a security from, and
simultaneously resells it to an approved vendor for delivery on an agreed
upon future date. The resale price exceeds the purchase price by an amount
that reflects an agreed-upon interest rate effective for the period during
which the repurchase agreement is in effect. Approved vendors include U.S.
commercial banks, U.S. branches of foreign banks or broker-dealers that have
been designated a primary dealer in government securities, which meet the
credit requirements set by the Manager from time to time.

      The majority of these transactions run from day to day. Delivery
pursuant to resale typically will occur within one to five days of the
purchase. Repurchase agreements having a maturity beyond seven days are
subject to the Fund's limits on holding illiquid securities.

      Repurchase agreements, considered "loans" under the Investment Company
Act of 1940 (the "Investment Company Act"), are collateralized by the
underlying security. The Fund's repurchase agreements require that at all
times while the repurchase agreement is in effect, the value of the
collateral must equal or exceed the repurchase price to fully collateralize
the repayment obligation. However, if the vendor fails to pay the resale
price on the delivery date, the Fund may incur costs in disposing of the
collateral and may experience losses if there is any delay in its ability to
do so. The Manager will monitor the vendor's creditworthiness to confirm that
the vendor is financially sound and will monitor the collateral's value on an
ongoing basis.

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

      |X|   Illiquid and Restricted Securities. Under the policies and
procedures established by the Fund's Board of Trustees, the Manager
determines the liquidity of certain of the Fund's investments. To enable the
Fund to sell its holdings of a restricted security not registered under the
Securities Act of 1933, the Fund may have to cause those securities to be
registered.  The expenses of registering restricted securities may be
negotiated by the Fund with the issuer at the time the Fund buys the
securities. When the Fund must arrange registration because the Fund wishes
to sell the security, a considerable period may elapse between the time the
decision is made to sell the security and the time the security is registered
so that the Fund could sell it. The Fund would bear the risks of any downward
price fluctuation during that period.

      The Fund may also acquire restricted securities through private
placements. Those securities have contractual restrictions on their public
resale. Those restrictions might limit the Fund's ability to dispose of the
securities and might lower the amount the Fund could realize upon the sale.

      The Fund has limitations that apply to purchases of restricted
securities, as stated in the Prospectus. Those percentage restrictions do not
limit purchases of restricted securities that are eligible for sale to
qualified institutional purchasers under Rule 144A of the Securities Act of
1933, if those securities have been determined to be liquid by the Manager
under Board-approved guidelines. Those guidelines take into account the
trading activity for such securities and the availability of reliable pricing
information, among other factors.  If there is a lack of trading interest in
a particular Rule 144A security, the Fund's holdings of that security may be
considered to be illiquid. Illiquid securities include repurchase agreements
maturing in more than seven days.

      |X|   Borrowing for Leverage. As a fundamental policy, the Fund may
borrow up to 5% of its total assets from banks on an unsecured basis for
temporary and emergency purposes or to purchase additional portfolio
securities. Borrowing to purchase portfolio securities is a speculative
investment technique known as "leveraging."  This investment technique may
subject the Fund to greater risks and costs, including the burden of interest
expense, an expense the Fund would not otherwise incur. The Fund can borrow
only if it maintains a 300% ratio of assets to borrowings at all times in the
manner required under applicable provisions of the Investment Company Act. If
the value of the Fund's assets fails to meet this 300% asset coverage
requirement, the Fund is required to reduce its bank debt within three days
to meet the requirement. To do so, the Fund might have to sell a portion of
its investments at a disadvantageous time.

      The Fund will pay interest on these loans, and that interest expense
will raise the overall expenses of the Fund and reduce its returns. If it
does borrow, its expenses will be greater than comparable funds that do not
borrow for leverage. The interest on a loan might be more (or less) than the
yield on the securities purchased with the loan proceeds. Additionally, the
Fund's net asset value per share might fluctuate more than that of funds that
do not borrow.


      Until January of 2005, the Fund was party to an agreement enabling it
to participate with other OppenheimerFunds in an unsecured line of credit
with a bank. Interest was charged to each fund based on its respective
borrowings. The Fund paid a commitment fee equal to its pro rata share of the
average amortized amount of the credit line. This fee is described in the
notes to the Financial Statements at the end of this Statement of Additional
Information.


      In addition, pursuant to an exemptive order issued by the SEC to
Citicorp North America, Inc. ("Citicorp"), the Fund also has the ability to
borrow, subject to the limits established by its investment policies, from
commercial paper and medium-term note conduits administered by Citicorp that
issue promissory notes to fund loans to investment companies such as the
Fund. These loans may be secured by assets of the Fund, so long as the Fund's
policies permit it to pledge its assets to secure a debt. Liquidity support
for these loans will be provided by banks obligated to make loans to the Fund
in the event the conduit or conduits are unable or unwilling to make such
loans. The Fund will have the right to prepay such loans and terminate its
participation in the conduit loan facility at any time upon prior notice. As
a borrower under a conduit loan facility, the Fund maintains rights and
remedies under state and federal law comparable to those it would maintain
with respect to a loan from a bank.

      |X|   Taxable Investments. While the Fund can invest up to 20% of its
net assets in investments that generate income subject to income taxes, it
attempts to invest 100% of its assets in tax-exempt securities under normal
market conditions. The Fund does not anticipate investing substantial amounts
of its assets in taxable investments under normal market conditions or as
part of its normal trading strategies and policies. To the extent it invests
in taxable securities, the Fund would not be able to meet its objective of
providing tax-exempt income to its shareholders. Taxable investments include,
for example, options, repurchase agreements and some of the types of
securities it would buy for temporary defensive purposes.

      |X|   Portfolio Turnover. A change in the securities held by the Fund
from buying and selling investments is known as "portfolio turnover."
Short-term trading increases the rate of portfolio turnover and could
increase the Fund's transaction costs. However, the Fund ordinarily incurs
little or no brokerage expense because most of the Fund's portfolio
transactions are principal trades that do not require payment of brokerage
commissions.

      The Fund ordinarily does not trade securities to achieve capital gains,
because they would not be tax-exempt income. To a limited degree, the Fund
may engage in short-term trading to attempt to take advantage of short-term
market variations. It may also do so to dispose of a portfolio security prior
to its maturity. That might be done if, on the basis of a revised credit
evaluation of the issuer or other considerations, the Manager believes such
disposition is advisable or the Fund needs to generate cash to satisfy
requests to redeem Fund shares. In those cases, the Fund may realize a
capital gain or loss on its investments. The Fund's annual portfolio turnover
rate normally is not expected to exceed 50%.

|X|   Temporary Defensive and Interim Investments.  The securities the Fund
can invest in for temporary defensive purposes include the following:
o     short-term municipal securities;
o     obligations issued or guaranteed by the U.S. government or its agencies
            or instrumentalities;
o     commercial paper rated "A-1" by Standard & Poor's, or having a
            comparable rating by another nationally-recognized rating agency;
            and
o     certificates of deposit of domestic banks with assets of $1 billion or
            more.

      The Fund also might hold these types of securities pending the
investment of proceeds from the sale of portfolio securities or to meet
anticipated redemptions of Fund shares. The income from some of these
temporary defensive or interim investments may not be tax-exempt. Therefore
when making those investments, the Fund might not achieve its objective.

      |X|   Investments in Other Investment Companies. On a temporary basis,
the Fund can invest up to 5% of its total assets in shares of other
investment companies that have an investment objective of seeking income
exempt from federal, New York State and New York City personal income taxes.
It can invest up to 5% of its total assets in any one investment company (but
cannot own more than 3% of the outstanding voting stock of that company).
These limits do not apply to shares acquired in a merger, consolidation,
reorganization or acquisition of another investment company. Because the Fund
would be subject to its ratable share of the other investment company's
expenses, the Fund will not make these investments unless the Manager
believes that the potential investment benefits justify the added costs and
expenses.

Other Investment Restrictions

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

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


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

o     The Fund cannot borrow money or mortgage or pledge any of its assets,
except that the Fund may borrow from a bank for temporary or emergency
purposes or for investment purposes in amounts not exceeding 5% of its total
assets. Where borrowings are made for a purpose other than temporary or
emergency purposes, the Investment Company Act requires that the Fund
maintain asset coverage of at least 300% for all such borrowings. Should such
asset coverage at any time fall below 300%, the Fund will be required to
reduce its borrowings within three days to the extent necessary to meet that
asset coverage requirement. To reduce its borrowings, the Fund might have to
sell investments at a time when it would be disadvantageous to do so.
Additionally, interest paid by the Fund on its borrowings will decrease the
net earnings of the Fund.

o     The Fund cannot buy any securities on margin or sell any securities
short.

o     The Fund cannot lend any of its funds or other assets, except by the
purchase of a portion of an issue of publicly distributed bonds, debentures,
notes or other debt securities.

o     The Fund cannot act as underwriter of securities issued by other
persons. A permitted exception is if the Fund technically is deemed to be an
underwriter under the federal securities laws in connection with the
disposition of its portfolio securities.

o     The Fund cannot purchase the securities of any issuer that would result
in the Fund owning more than 10% of the voting securities of that issuer.

o     The Fund cannot purchase securities from or sell them to its officers
and trustees, or any firm of which any officer or trustee is a member, as
principal. However, the Fund may deal with such persons or firms as brokers
and pay a customary brokerage commission. The Fund cannot retain securities
of any issuer, if to the knowledge of the Fund, one or more of its officers,
trustees or investment advisor, own beneficially more than1/2of 1% of the
securities of such issuer and all such officers and trustees together own
beneficially more than 5% of those securities.

o     The Fund cannot acquire, lease or hold real estate, except as may be
necessary or advisable for the maintenance of its offices or to enable the
Fund to take appropriate such action in the event of financial difficulties,
default or bankruptcy of either the issuer of or the underlying source of
funds for debt service for any obligations in the Fund's portfolio.

o     The Fund cannot invest in commodities and commodity contracts, puts,
calls, straddles, spreads or any combination thereof, or interests in oil,
gas or other mineral exploration or development programs. The Fund may,
however, write covered call options (or purchase put options) listed for
trading on a national securities exchange. The Fund can also purchase call
options (and sell put options) to the extent necessary to close out call
options it previously wrote or put options it previously purchased.

o     The Fund cannot invest in companies for the purpose of exercising
control or management.

o     The Fund cannot invest more than 25% of its total assets in securities
of  issuers of a particular industry. For the purposes of this limitation,
tax-exempt securities and United States government obligations are not
considered to be part of an industry. However, with respect to industrial
development bonds and other revenue obligations for which the underlying
credit is a business or charitable entity, the industry of that entity will
be considered for purposes of this 25% limitation.

o     The Fund cannot issue "senior securities," but this does not prohibit
certain investment activities for which assets of the Fund are designated as
segregated, or margin, collateral or escrow arrangements are established, to
cover the related obligations. Examples of those activities include borrowing
money, reverse repurchases agreements, delayed-delivery and when-issued
arrangements for portfolio securities transactions and contracts to buy or
sell derivatives, hedging instruments, options or futures.

      Unless the Prospectus or Statement of Additional Information states
that a percentage restriction applies on an ongoing basis, it applies only at
the time the Fund makes an investment. In that case the Fund need not sell
securities to meet the percentage limits if the value of the investment
increases in proportion to the size of the Fund.


Diversification. The Fund intends to be "diversified," as defined in the
Investment Company Act, with respect to 75% of its total assets, and to
satisfy the restrictions against investing too much of its assets in any
"issuer" as set forth above. Under the Investment Company Act's requirements
for diversification, as to 75% of its total assets, the Fund cannot invest
more than 5% of its total assets in the securities of any one issuer (other
than the U.S. government, its agencies or instrumentalities) nor can it own
more than 10% of an issuer's voting securities. In applying its
diversification policy with respect to the remaining 25% of its total assets
not covered by that diversification requirement, the Fund will not invest
more than 10% of its assets in the securities of any one issuer.


      In implementing this policy, the identification of the issuer of a
municipal security depends on the terms and conditions of the security. When
the assets and revenues of an agency, authority, instrumentality or other
political subdivision are separate from those of the government creating it
and the security is backed only by the assets and revenues of the
subdivision, agency, authority or instrumentality, the latter would be deemed
to be the sole issuer. Similarly, if an industrial development bond is backed
only by the assets and revenues of the non-governmental user, then that user
would be deemed to be the sole issuer. However, if in either case the
creating government or some other entity guarantees a security, the guarantee
would be considered a separate security and would be treated as an issue of
that government or other entity.

      In implementing the Fund's policy not to concentrate its investments,
the Manager will consider a non-governmental user of facilities financed by
industrial development bonds as being in a particular industry. That is done
even though the bonds are municipal securities, as to which the Fund has no
concentration limitation. Although this application of the concentration
restriction is not a fundamental policy of the Fund, it will not be changed
without shareholder approval.

      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 B 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, from time to time the Fund may
increase the relative emphasis of its investments in a particular segment of
the municipal securities market above 25% of its net assets. For example,
these might include, among others, general obligation bonds, pollution
control bonds, hospital bonds, or any other segment of the municipal
securities market as listed in Appendix B to this Statement of Additional
Information. To the extent it does so, the Fund's exposure to market risks
from economic, business, political or other changes affecting one bond in a
particular segment (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.

      |X|   Does the Fund Have Any Restrictions That Are Not Fundamental? The
Fund operates under certain investment restrictions which are non-fundamental
investment policies of the Fund and which can be changed by the Board without
shareholder approval. These restrictions provide that:

o     The Fund may not acquire more than 3% of the voting securities issued
by any one investment company. An exception is if the acquisition results
from a dividend or a merger, consolidation or other reorganization. Also, the
Fund cannot invest more than 5% of its assets in securities issued by any one
investment company or invest more than 5% of the Fund's assets in securities
of other investment companies.

o     For purposes of the Fund's investment restriction as to concentration
described above, its policy with respect to concentration of investments
shall be interpreted as prohibiting the Fund from making an investment in any
given industry if, upon making the proposed investment, 25% or more of the
value of its total assets would be invested in such industry.

o     For the purposes of the Fund's policy regarding minimum investments in
the tax-exempt securities, the minimum investment requirement is based on net
assets plus borrowings used for investment purposes.


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

o     Public Disclosure. The Fund's portfolio holdings are made publicly
      available no later than 60 days after the close of each of the Fund's
      fiscal quarters in semi-annual and annual reports to shareholders, or
      in its Statements of Investments on Form N-Q, which are publicly
      available at the SEC. In addition, the top 10 or more holdings shall be
      posted on the OppenheimerFunds' website at www.oppenheimerfunds.com in
      the "Fund Profiles" section. Other general information about the Fund's
      portfolio investments, such as portfolio composition by asset class,
      industry, country, currency, credit rating or maturity, may also be
      posted with a 15-day lag.

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

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

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

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


o     The third-party recipient must first submit a request for release of
            Fund portfolio holdings, explaining the business reason for the
            request;
o     Senior officers (a Senior Vice President or above) in the Manager's
            Portfolio and Legal departments must approve the completed
            request for release of Fund portfolio holdings; and

o     The third-party recipient must sign the Manager's portfolio holdings
            non-disclosure agreement before receiving the data, agreeing to
            keep information that is not publicly available regarding the
            Fund's holdings and agreeing not to trade directly or indirectly
            based on the information.


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

o     Employees of the Fund's Manager, Distributor and Transfer Agent who
            need to have access to such information (as determined by senior
            officers of such entity),

o     The Fund's certified public accountants and independent registered
            public accounting firm,

o     Members of the Fund's Board and the Board's legal counsel,
o     The Fund's custodian bank,
o     A proxy voting service designated by the Fund and its Board,
o     Rating/ranking organizations (such as Lipper and Morningstar),
o     Portfolio pricing services retained by the Manager to provide portfolio
            security prices, and

o     Dealers, to obtain bids (price quotations, if securities are not priced
            by the Fund's regular pricing services).

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


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

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

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

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

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

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

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

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

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


How the Fund Is Managed

Organization and History. The Fund was organized as a New York corporation in
June 1965 and reorganized as Massachusetts business trust in February 1991.
The Fund is an open-end, diversified management investment company with an
unlimited number of authorized shares of beneficial interest.

      Classes of Shares. The Trustees are authorized, without shareholder
approval, to create new series and classes of shares.  The Trustees may
reclassify unissued shares of the Fund into additional series or classes of
shares.  The Trustees also may divide or combine the shares of a class into a
greater or lesser number of shares without changing the proportionate
beneficial interest of a shareholder in the Fund.  Shares do not have
cumulative voting rights or preemptive or subscription rights.  Shares may be
voted in person or by proxy at shareholder meetings.

      The Fund currently has four classes of shares: Class A, Class B, Class
C and Class Y.  All classes invest in the same investment portfolio. Only
certain institutional investors may elect to purchase Class Y shares.  Each
class of shares:
o     has its own dividends and distributions,
o     pays certain expenses which may be different for the different classes,
o     may have a different net asset value,
o     may have separate voting rights on matters in which interests of one
         class are different from interests of another class, and
o     votes as a class on matters that affect that class alone.

      Shares are freely transferable, and each share of each class has one
vote at shareholder meetings, with fractional shares voting proportionally on
matters submitted to the vote of shareholders.  Each share of the Fund
represents an interest in the Fund proportionately equal to the interest of
each other share of the same class.

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

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

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

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


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

      The Board of Trustees has an Audit Committee which is comprised solely
of Independent Trustees.  The members of the Audit Committee are John Cannon,
Paul Y. Clinton (Chairman), Thomas W. Courtney, Robert G. Galli, Lacy B.
Herrmann and Brian Wruble.  The Audit Committee met 6 times during the Fund's
fiscal year ended December 31, 2004.
The Audit Committee provides the Board with recommendations regarding the
selection of the Fund's independent registered public accounting firm. The
Audit Committee also reviews the scope and results of audits and the audit
fees charged and reviews reports from the Fund's independent registered
public accounting firm concerning the Fund's internal accounting procedures,
and controls, and reviews reports of the Manager's internal auditor, among
            -
other duties as set forth in the Committee's charter.


The Audit Committee's functions include selecting and nominating, to the full
Board, nominees for election as Directors and selecting and nominating
Independent Trustees for election.  The Audit Committee may, but need not,
consider the advice and recommendation of the Manager and its affiliates in
selecting nominees.  The full Board elects new Trustees except for those
instances when a shareholder vote is required.


      To date, the Committee has been able to identify from its own resources
an ample number of qualified candidates.  Nonetheless, shareholders may
submit names of individuals, accompanied by complete and properly supported
resumes, for the Audit Committee's consideration by mailing such information
to the Committee in care of the Fund.  The Committee may consider such
persons at such time as it meets to consider possible nominees.  The
Committee, however, reserves sole discretion to determine the candidates to
present to the Board and/or shareholders when it meets for the purpose of
considering potential nominees.


Trustees and Officers of the Fund. Each of the Trustees is an "Independent
Trustee" under the Investment Company Act. The Fund's Trustees and officers
and their positions held with the Fund and length of service in such
position(s) and their principal occupations and business affiliations during
the past five years are listed in the chart below. The information for the
Trustees also includes the dollar range of shares of the Fund as well as the
aggregate dollar range of shares beneficially owned in any of the Oppenheimer
funds overseen by the Trustees. All of the Trustees are also trustees or
directors of the following Oppenheimer funds (except for Mr. Cannon who is
only a Trustee of Rochester Fund Municipals, Limited-Term New York Municipal
Fund and Convertible Securities Fund) (referred to as "Board III Funds"):

Oppenheimer Quest For Value Funds, a
  series fund having the following three
  series:
  Oppenheimer Small Cap Value Fund,        Oppenheimer Quest  International Value
                                           Fund, Inc.
  Oppenheimer Quest Balanced Value Fund    Oppenheimer  Quest Capital Value Fund,
  and                                      Inc.
  Oppenheimer Quest Opportunity Value Fund Oppenheimer Quest Value Fund, Inc.
Rochester Portfolio Series, a series fund  Bond Fund Series, a series fund
  having one series: Limited-Term New        having one series: Oppenheimer
  York Municipal Fund                        Convertible Securities Fund
Rochester Fund Municipals                  Oppenheimer MidCap Fund


      In addition to being a trustee or director of the Board III Funds, Mr.
Galli is also a director or trustee of 24 other portfolios in the
OppenheimerFunds complex. Present or former officers, directors, trustees and
employees (and their immediate family members) of the Fund, the Manager and
its affiliates, and retirement plans established by them for their employees
are permitted to purchase Class A shares of the Fund and the other
Oppenheimer funds at net asset value without sales charge. The sales charge
on Class A shares is waived for that group because of the economies of sales
efforts realized by the Distributor.

      Messrs. Fielding, Murphy, Vottiero, Wixted, Peteresen, Miao, Gillespie,
Vandehey, and Zack and Mses. Bloomberg and Ives who are officers of the Fund,
respectively hold the same offices of one or more of the other Board III
Funds as with the Fund. As of March 31, 2005, the Trustees and officers of
the Fund, as a group, owned of record or beneficially less than 1% of any
class of shares of the Fund.  The foregoing statement does not reflect
ownership of shares of the Fund held of record by an employee benefit plan
for employees of the Manager, other than the shares beneficially owned under
the plan by the officers of the Fund listed above. In addition, each
Independent Trustee (and their immediate family members) do not own
securities of either the Manager or Distributor of the Board III Funds or of
any entity directly or indirectly controlling, controlled by or under common
control with the Manager or Distributor.


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

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

Thomas W.          Principal  of  Courtney  Associates,  Inc. $0         $10,001-$50,000
Courtney,          (1982-Present)   (venture  capital  firm);
Chairman of the    former General  Partner of Trivest Venture
Board of Trustees, Fund  (private   venture   capital  fund);
Trustee since 1995 President   of    Investment    Counseling
Age: 71            Federated  Investors,   Inc.  (1973-1982);
                   Trustee   of   the   following    open-end
                   investment  companies:  Cash Assets Trust,
                   PIMCO  Advisors  VIT,  Tax  Free  Trust of
                   Arizona  and four  funds for the  Hawaiian
                   Tax Free Trust.  Oversees 10 portfolios in
                   the OppenheimerFunds complex.

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

John Cannon,       Director,    Neuberger    Berman    Income $0         $10,001-$50,000
Trustee, since     Managers Trust,  Neuberger & Berman Income

1992               Funds   and   Neuberger    Berman   Trust,
Age: 75            (1995-present);  Neuberger  Berman  Equity

                   Funds  (November  2000-present);  Trustee,
                   Neuberger  Berman  Mutual  Funds  (October
                   1994-present);     formerly    held    the
                   following   positions  at  CDC  Investment
                   Advisors    (a    registered    investment
                   adviser):     Chairman    and    Treasurer
                   (December       1993-February       1996),
                   Independent  Consultant,  Chief Investment
                   Officer  (1996-June  2000) and  Consultant
                   and   director   (December   1993-February
                   1999).   Oversees  3  portfolios   in  the
                   OppenheimerFunds complex.

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

Paul Y. Clinton,   Principal     of    Clinton     Management $0         Over
Trustee, since     Associates   (a   financial   and  venture            $100,000
1995               capital  consulting firm)  (1996-present);
Age: 74            Trustee of PIMCO  Advisors  VIT  (open-end
                   investment  company);  former  director or
                   trustee   of   the   following    open-end
                   investment  companies:  OCC Cash Reserves,
                   Inc.  (1989-December  2002),  Capital Cash
                   Management  Trust  (1979-December   2004),
                   Prime Cash Fund and  Narragansett  Insured
                   Tax-Free   Income   Fund    (1996-December
                   2004).   Oversees  10  portfolios  in  the
                   OppenheimerFunds complex.

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

Robert G. Galli,   A   trustee   or    director    of   other $0         Over
Trustee since 1998 Oppenheimer funds.  Oversees 34 portfolios            $100,000
Age: 71            in the OppenheimerFunds complex.

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

Lacy B. Herrmann,  Chairman or Chairman Emeritus of the       $0         $10,001-$50,000
Trustee since 1995 Board of Trustees and President of Aquila
Age: 75            Management Corporation, the sponsoring
                   organization and parent of the manager,
                   administrator, adviser and/or sub-adviser
                   of 11 funds in the Aquila(sm) fund
                   complex; Chairman (since 2004) and Chief
                   Executive Officer (1986-2004) of Aquila
                   Investment Management (sub-adviser and
                   administrator of funds in the Aquila fund
                   complex; Director of Aquila Distributors,
                   Inc., (since 1981) and formerly President
                   and Secretary (distributor of the above
                   funds); Trustee PIMCO Advisors VIT;
                   Trustee Emeritus of Brown University and
                   the Hopkins School. Oversees 10
                   portfolios in the OppenheimerFunds
                   complex.

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

Brian Wruble,      General Partner of Odyssey Partners,  L.P. $0         Over
Trustee since 2001 (since  September  1996)  (hedge  funds in            $100,000
Age:  62           distribution    since    January    1997);
                   Director  of Special  Value  Opportunities
                   Fund,   LLC   (since    September   2004);
                   Investment   Advisory   Board  of   Zurich
                   Financial  Services  (since October 2004);
                   Board  of   Governing   Trustees   of  The
                   Jackson  Laboratory  (since  August  1990)
                   (non  profit);  Trustee of  Institute  for
                   Advanced    Study    (since    May   1992)
                   (educational institute).  Formerly Special
                   Limited  Partner  (January  1999-September
                   2004)  and  Managing   Principal  (through
                   December   1998)  of  Odyssey   Investment
                   Partners,      LLC     (private     equity
                   investment);     Trustee    of    Research
                   Foundation     of     AIMR     (2000-2002)
                   (investment     research,     non-profit);
                   Governor,  Jerome Levy Economics Institute
                   of  Bard  College  (August  1990-September
                   2001)  (economics  research);  Director of
                   Ray &  Berendtson,  Inc.  (May  2000-April
                   2002)  (executive  search firm).  Oversees
                   10  portfolios  in  the   OppenheimerFunds
                   complex.

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


      The address of the Officers in the chart below is as follows: for
Messrs. Fielding , Murphy, Zack, Gillespie and Miao and Ms. Bloomberg, Two
World Financial Center, 225 Liberty Street, New York, NY 10281-1008, for
Messrs. Vandehey, Vottiero, Petersen and Wixted and Ms. Ives, 6803 S. Tucson
Way, Centennial, CO 80112-3924, and for Mr. Fielding, 350 Linden Oaks,
Rochester, NY 14625. Each Officer serves for an indefinite term or until his
or her earlier resignation, death or removal.


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

Ronald H. Fielding,     Senior Vice  President of the Manager  since  January  1996;

Vice President and      Chairman of the  Rochester  Division  of the  Manager  since

Portfolio Manager       January   1996;   an  officer  of  10   portfolios   in  the
since 1996              OppenheimerFunds complex.
Age: 56

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
John V. Murphy,         Chairman,  Chief Executive  Officer and director (since June
President since 2001    2001) and President  (since  September 2000) of the Manager;
Age: 55                 President  and a director  or  trustee of other  Oppenheimer

                        funds;  President  and  a  director  (since  July  2001)  of
                        Oppenheimer  Acquisition Corp. (the Manager's parent holding
                        company) and of Oppenheimer  Partnership  Holdings,  Inc. (a
                        holding  company  subsidiary  of the  Manager);  a  director
                        (since November 2001) of OppenheimerFunds  Distributor, Inc.
                        (a  subsidiary  of the  Manager);  Chairman  and a  director
                        (since  July  2001) of  Shareholder  Services,  Inc.  and of
                        Shareholder   Financial   Services,   Inc.  (transfer  agent
                        subsidiaries  of  the  Manager);  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 the Manager:  OFI Institutional  Asset Management,  Inc.,
                        Centennial Asset Management Corporation,  Trinity Investment
                        Management Corporation and Tremont Capital Management,  Inc.
                        (since  November   2001),   HarbourView   Asset   Management
                        Corporation  and OFI Private  Investments,  Inc. (since July
                        2001);  President  (since  November  1, 2001) and a director
                        (since  July 2001) of  Oppenheimer  Real  Asset  Management,
                        Inc.;  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 Babson  Capital  Management  LLC); a member of the
                        Investment  Company  Institute's Board of Governors (elected
                        to serve from October 3, 2003 through  September  30, 2006).
                        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 Select 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
                        62   portfolios  as   Trustee/Director   and  20  additional
                        portfolios as Officer in the OppenheimerFunds complex.

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Mark S. Vandehey,       Senior Vice  President and Chief  Compliance  Officer (since
Vice President and      March  2004) of the  Manager;  Vice  President  (since  June
Chief Compliance        1983)  of  OppenheimerFunds  Distributor,  Inc.,  Centennial
Officer since 2004      Asset Management Corporation and Shareholder Services,  Inc.
Age:  54                Formerly  (until  February 2004) Vice President and Director

                        of  Internal  Audit  of  the  Manager.   An  officer  of  82
                        portfolios in the Oppenheimer funds complex.

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Brian W. Wixted,        Senior Vice  President and  Treasurer  (since March 1999) of
Treasurer since 1999    the  Manager;  Treasurer  of  HarbourView  Asset  Management
Age: 45                 Corporation,    Shareholder   Financial   Services,    Inc.,

                        Shareholder   Services,   Inc.,   Oppenheimer   Real   Asset
                        Management   Corporation,    and   Oppenheimer   Partnership
                        Holdings,   Inc.   (since  March   1999),   of  OFI  Private
                        Investments,  Inc. (since March 2000),  of  OppenheimerFunds
                        International  Ltd.  and  OppenheimerFunds  plc  (since  May
                        2000), of OFI Institutional  Asset  Management,  Inc. (since
                        November 2000),  and of  OppenheimerFunds  Legacy Program (a
                        Colorado   non-profit   corporation)   (since   June  2003);
                        Treasurer and Chief  Financial  Officer  (since May 2000) of
                        OFI  Trust  Company  (a  trust  company  subsidiary  of  the
                        Manager);   Assistant   Treasurer   (since  March  1999)  of
                        Oppenheimer  Acquisition Corp.  Formerly Assistant Treasurer
                        of   Centennial   Asset   Management    Corporation   (March
                        1999-October  2003)  and  OppenheimerFunds   Legacy  Program
                        (April  2000-June  2003). An officer of 82 portfolios in the
                        OppenheimerFunds complex.

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Brian Petersen,         Assistant  Vice  President of the Manager since August 2002;
Assistant Treasurer     formerly   Manager/Financial  Product  Accounting  (November

since 2004              1998-July 2002) of the Manager.  An officer of 82 portfolios
Age: 34                 in the OppenheimerFunds complex.

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Philip Vottiero,        Vice  President/Fund  Accounting  of the Manager since March
Assistant Treasurer     2002.  Formerly Vice  President/Corporate  Accounting of the

since 2002              Manager (July 1999-March  2002). An officer of 82 portfolios
Age: 41                 in the OppenheimerFunds complex.

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Robert G. Zack,         Executive  Vice  President  (since January 2004) and General
Secretary since 2001    Counsel  (since  February  2002)  of  the  Manager;  General
Age: 56                 Counsel  and  a  director   (since  November  2001)  of  the

                        Distributor;   General  Counsel  (since  November  2001)  of
                        Centennial   Asset  Management   Corporation;   Senior  Vice
                        President  and  General  Counsel  (since  November  2001) of
                        HarbourView  Asset  Management  Corporation;  Secretary  and
                        General   Counsel  (since   November  2001)  of  Oppenheimer
                        Acquisition  Corp.;   Assistant  Secretary  and  a  director
                        (since October 1997) of OppenheimerFunds  International Ltd.
                        and  OppenheimerFunds  plc;  Vice  President  and a director
                        (since November 2001) of Oppenheimer  Partnership  Holdings,
                        Inc.; a director (since  November 2001) of Oppenheimer  Real
                        Asset  Management,  Inc.;  Senior  Vice  President,  General
                        Counsel and a director  (since November 2001) of Shareholder
                        Financial Services,  Inc.,  Shareholder Services,  Inc., OFI
                        Private  Investments,  Inc.  and  OFI  Trust  Company;  Vice
                        President (since November 2001) of  OppenheimerFunds  Legacy
                        Program;  Senior Vice  President and General  Counsel (since
                        November 2001) of OFI Institutional Asset Management,  Inc.;
                        a  director  (since  June 2003) of  OppenheimerFunds  (Asia)
                        Limited.  Formerly Senior Vice President (May  1985-December
                        2003), 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);   and
                        OppenheimerFunds  International Ltd. (October  1997-November
                        2001).  An officer of 82 portfolios in the  OppenheimerFunds
                        complex.

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Kathleen T. Ives,       Vice  President  (since  June 1998) and Senior  Counsel  and
Assistant Secretary     Assistant  Secretary  (since  October  2003) of the Manager;
since 2001              Vice President  (since 1999) and Assistant  Secretary (since
Age: 39                 October  2003)  of  the  Distributor;   Assistant  Secretary

                        (since   October  2003)  of  Centennial   Asset   Management
                        Corporation;  Vice President and Assistant  Secretary (since
                        1999) of Shareholder  Services,  Inc.;  Assistant  Secretary
                        (since  December  2001) of  OppenheimerFunds  Legacy Program
                        and of Shareholder  Financial  Services,  Inc..  Formerly an
                        Assistant Counsel (August  1994-October 2003). An officer of
                        82 portfolios in the OppenheimerFunds complex.

-------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------
Lisa I. Bloomberg,      Vice  President and  Associate  Counsel of the Manager since
Assistant Secretary     May  2004;  formerly  First  Vice  President  and  Associate
since 2004              General  Counsel of UBS Financial  Services Inc.  (formerly,
Age:  37                PaineWebber  Incorporated)  (May  1999  -  April  2004).  An

                        officer of 82 portfolios in the OppenheimerFunds complex.

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

Phillip S. Gillespie,   Senior  Vice  President  and Deputy  General  Counsel of the
Assistant Secretary     Manager since  September 2004.  Formerly Mr.  Gillespie held
since 2004              the  following   positions  at  Merrill   Lynch   Investment
Age:  41                Management:  First  Vice  President  (2001-September  2004);
                        Director  (from  2000) and Vice  President  (1998-2000).  An
                        officer of 82 portfolios in the OppenheimerFunds complex.

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

Wayne Miao,             Assistant  Vice  President  and  Assistant  Counsel  of  the
Assistant Secretary     Manager since June 2004.  Formerly an Associate  with Sidley
since 2004              Austin  Brown & Wood LLP  (September  1999 - May  2004).  An
Age:  32                officer of 82 portfolios in the OppenheimerFunds complex.

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


|X|   Remuneration of Trustees. The officers of the Fund who are affiliated
with the Manager receive no salary or fee from the Fund. The Trustees of the
Fund received the compensation shown below from the Fund during the Fund's
fiscal year ended December 31, 2004. The compensation from all 10 of the
Board III Funds (including the Fund) represents compensation received for
serving as a director or trustee and member of a committee (if applicable) of
the boards of those funds during the calendar year 2004. The amounts shown
for Mr. Cannon relate solely to Rochester Fund Municipals, Limited Term New
York Municipal Fund and Oppenheimer Convertible Securities Fund, as Mr.
Cannon serves as Trustee of those Board III Funds only.









--------------------------------------------------------------------------------
Trustee Name and         Aggregate   Retirement   Estimated         Total
                                                                Compensation
                                                    Annual        From All
                                      Benefits    Retirement     Oppenheimer
                                     Accrued as  Benefits to   Funds For Which

Other Fund                             Part of     be Paid       Individual
Position(s) (as        Compensation     Fund         Upon         Serves As
applicable)             From Fund1    Expenses   Retirement2  Trustee/Director3

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

Thomas W. Courtney        $24,847      $34,028     $78,862        $121,000

Board Chairman and
Audit Committee Member
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

John Cannon               $19,769      $16,736     $24,5334       $36,0544

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

Paul Y. Clinton           $23,507      $38,734     $76,994        $116,0005

Audit Committee
Chairman
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Robert G. Galli           $21,868      $22,342     $80,9235       $237,3126

Audit Committee Member
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Lacy B. Herrmann          $22,168      $31,120     $74,648        $111,0008

Audit Committee Member
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Brian Wruble              $22,168      $14,329     $22,238        $111,000

Audit Committee Member
--------------------------------------------------------------------------------
1.    Aggregate Compensation From Fund includes fees and deferred
   compensation, if any, for a Trustee.
2.    Estimated Annual Retirement Benefits to be Paid Upon Retirement is
   based on a straight life payment plan election, with the assumption that a
   trustee will retire at the age of 75 and is eligible (after 7 years of
   service) to receive retirement plan benefits as described below under
   "Retirement Plan for Trustees."

3.    Total Compensation From Fund and Fund Complex includes fees, deferred
   compensation (if any) and accrued retirement benefits (if any).
1.    Total Compensation and Estimated Annual Retirement Benefits for Mr. are
   for serving as a Trustee of the Fund and two other funds in the Complex.
5.    Includes $43,933 estimated to be paid to Mr. Galli for serving as
   trustee or director of 25 other Oppenheimer funds (at December 31, 2004)
   that are not Board III Funds.
1.    Includes $129,312 paid to Mr. Galli for serving as trustee or director
   of 25 other Oppenheimer funds (at December 31, 2004) that are not Board
   III Funds


|X|   Retirement Plan for Trustees. The Fund has adopted a retirement plan
that provides for payments to retired Trustees. Payments are up to 80% of the
average compensation paid during a Trustee's five years of service in which
the highest compensation was received. A Trustee must serve as Trustee for
any of the Board III Funds listed above for at least 15 years to be eligible
for the maximum payment. Each Trustee's retirement benefits will depend on
the amount of the Trustee's future compensation and length of service.

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

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


      |X|   Major Shareholders. As of March 31, 2005, the only person who
owned of record or were known by the Fund to own beneficially 5% or more of
any class of the Fund's outstanding shares were:

      Citigroup Global Markets, Inc., 109801250, Attn Cindy Tempesta, 7th.
      Floor, 333 West 34th Street, New York, NY 10001-2483, which owned
      41,716,621.001 Class A shares (15.11% of the outstanding Class A
      shares).

      Merrill Lynch Pierce Fenner & Smith, Inc. for the sole benefit of its
      customers, Attn Fund Admin/975G2, 4800 Deer Lake Drive, E FL 3,
      Jacksonville, FL 32246-6484, which owned 18,441,697.623 Class A shares
      (6.68% of the outstanding Class A shares).

      Citigroup Global Markets, Inc., 109801250, Attn Cindy Tempesta, 7th.
      Floor, 333 West 34th Street, New York, NY 10001-2483, which owned
      6,295,721.948 Class B shares (10.85% of the outstanding Class B shares).

      Merrill Lynch Pierce Fenner & Smith, Inc. for the sole benefit of its
      customers, Attn Fund Admin, 4800 Deer Lake Drive, E FL 3, Jacksonville,
      FL 32246-6484, which owned 5,169,048.721 Class B shares (8.91% of the
      outstanding Class B shares).

      Merrill Lynch Pierce Fenner & Smith, Inc. for the sole benefit of its
      customers, Attn Fund Admin, 4800 Deer Lake Drive, E FL 3, Jacksonville,
      FL 32246-6484, which owned 4,772,970.969 Class C shares (15.86% of the
      outstanding Class C shares).

      Citigroup Global Markets, Inc., 109801250, Attn Cindy Tempesta, 7th.
      Floor, 333 West 34th Street, New York, NY 10001-2483, which owned
      4,104,88.545 Class C shares (13.64% of the outstanding Class C shares).

      Roger W. Kirby Trust, UW Gwenoline Hoguet Trust, FBO Geoffrey R.
      Hoguet, 580 Park Ave. New York, NY 10021-7313, who owned 379,138.094
      Class Y shares (81.89% of the outstanding Class Y shares).

      Elizabeth N. Hoguet, 238 McLain Street, Mount Kisco, NY 10549-4931, who
      owed 77,618.493 Class Y shares (16.76% of the outstanding Class Y
      shares).


The Manager. The Manager is wholly-owned by Oppenheimer Acquisition Corp., a
holding company controlled by Massachusetts Mutual Life Insurance Company, a
global, diversified insurance and financial services organization.

      |X|   Code of Ethics. The Fund, the Manager and the Distributor have a
Code of Ethics. It is designed to detect and prevent improper personal
trading by certain employees, including portfolio managers, that would
compete with or take advantage of the Fund's portfolio transactions. Covered
persons include persons with knowledge of the investments and investment
intentions of the Fund and other funds advised by the Manager. The Code of
Ethics does permit personnel subject to the Code to invest in securities,
including securities that may be purchased or held by the Fund, subject to a
number of restrictions and controls. Compliance with the Code of Ethics is
carefully monitored and enforced by the Manager.

      The Code of Ethics is an exhibit to the Fund's registration statement
filed with the SEC and can be reviewed and copied at the SEC's Public
Reference Room in Washington, D.C. You can obtain information about the hours
of operation of the Public Reference Room by calling the SEC at
1.202.942.8090. The Code of Ethics can also be viewed as part of the Fund's
registration statement on the SEC's EDGAR database at the SEC's Internet
website at http://www.sec.gov. Copies may be obtained, after paying a
           ------------------
duplicating fee, by electronic request at the following E-mail address:
publicinfo@sec.gov., or by writing to the SEC's Public Reference Section,
-------------------
Washington, D.C. 20549-0102.

|X|   Portfolio Proxy Voting.  The Fund has adopted Portfolio Proxy Voting
Policies and Procedures under which the Fund votes proxies relating to
securities ("portfolio proxies") held by the Fund.  The Fund's primary
consideration in voting portfolio proxies is the financial interests of the
Fund and its shareholders. The Fund has retained an unaffiliated third-party
as its agent to vote portfolio proxies in accordance with the Fund's
Portfolio Proxy Voting Guidelines and to maintain records of such portfolio
proxy voting. The Proxy Voting Guidelines include provisions to address
conflicts of interest that may arise between the Fund and OFI where an OFI
directly-controlled affiliate manages or administers the assets of a pension
plan of a company soliciting the proxy. The Fund's Portfolio Proxy Voting
Guidelines on routine and non-routine proxy proposals are summarized below.

o     The Fund votes with the recommendation of the issuer's management on
            routine matters, including election of directors nominated by
            management and ratification of auditors, unless circumstances indicate
            otherwise.
o     In general, the Fund opposes anti-takeover proposals and supports
            elimination of anti-takeover proposals, absent unusual circumstances.
o     The Fund supports shareholder proposals to reduce a super-majority vote
            requirement, and opposes management proposals to add a super-majority
            vote requirement.
o     The Fund opposes proposals to classify the board of directors.
o     The Fund supports proposals to eliminate cumulative voting.
o     The Fund opposes re-pricing of stock options.
o     The Fund generally considers executive compensation questions such as
            stock option plans and bonus plans to be ordinary business activity.
            The Fund analyzes stock option plans, paying particular attention to
            their dilutive effect. While the Fund generally supports management
            proposals, the Fund opposes plans it considers to be excessive.

      The Fund is required to file Form N-PX, with its complete proxy voting
record for the 12 months ended June 30th, no later than August 31st of each
year.  The Fund's Form N-PX filing is available (i) without charge, upon
request, by calling the Fund toll-free at  1.800.525-7048 and (ii) on the
SEC's website at www.sec.gov.
                 -----------

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


      The Fund pays expenses not expressly assumed by the Manager under the
advisory agreement. The investment advisory agreement lists examples of
expenses paid by the Fund. The major categories relate to interest, taxes,
fees to Independent Trustees, legal and audit expenses, custodian and
transfer agent expenses, share issuance costs, certain printing and
registration costs, brokerage commissions, and non-recurring expenses,
including litigation cost. The management fees paid by the Fund to the
Manager are calculated at the rates described in the Prospectus, which are
applied to the assets of the Fund as a whole. The fees are allocated to each
class of shares based upon the relative proportion of the Fund's net assets
represented by that class. The management fees paid by the Fund to the
Manager during its last three fiscal years are listed further below.


--------------------------------------------------------------------------------
The  investment  advisory  agreement  states  that  in the  absence  of  willful
misfeasance,  bad faith,  gross negligence in the performance of its duties,  or
reckless disregard for its obligations and duties under the investment  advisory
agreement,  the  Manager is not liable  for any loss the Fund  sustains  for any
investment, adoption of any investment policy or the purchase, sale or retention
of any security.

     The  agreement  permits  the Manager to act as  investment  advisor for any
other  person,  firm  or  corporation  and  to use  the  name  "Oppenheimer"  in
connection  with other  investment  companies for which it may act as investment
advisor or general distributor. If the Manager shall no longer act as investment
advisor to the Fund,  the Manager may  withdraw the Fund's right to use the name
"Oppenheimer" as part of its name.

o Accounting and Administrative  Services.  The Manager provides  accounting and
administrative services to the Fund pursuant to an Accounting and Administration
Agreement approved by the Board of Trustees.  Under that agreement,  the Manager
maintains  the  general  ledger  accounts  and  records  relating  to the Fund's
business and  calculates  the daily net asset values of the Fund's  shares.  The
Accounting  and  Administrative  Services  fees paid by the Fund to the  Manager
during its last three fiscal years are listed below.

                          Management Fee       Accounting and Administrative
                          Paid to              Services Fees Paid to
Fiscal Year Ended 12/31 OppenheimerFunds, Inc. OppenheimerFunds, Inc.
--------------------------------------------------------------------------------
-------------------------------------------------------------------------------
    2002                $28,013,299                      $1,814,185
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
    2003                $26,976,540                      $1,745,069
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------

    2004                $27,768,032                      $1,797,931

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

         |X|      Annual Approval of Investment Advisory Agreement. Each
year, the Board of Trustees including a majority of the Independent Trustees
is required to approve the renewal of the investment advisory agreement. The
Investment Company Act requires that the Board request and evaluate and the
Manager provide such information as may be reasonably necessary to evaluate
the terms of the investment advisory agreement.  The Board employs an
independent consultant to prepare a report that provides such information as
the Board requests for this purpose.

      The Board also receives information about the 12b-1 distribution fees
the Fund pays.  These distribution fees are reviewed and approved at a
different time of the year.

      The Board reviewed the foregoing information in arriving at its
decision to renew the investment advisory agreement.  Among other factors,
the Board considered:
o     The nature, cost, and quality of the services provided to the Fund and
         its shareholders;
o     The profitability of the Fund to the Manager;
o     The investment performance of the Fund in comparison to regular market
         indices
o     Economies of scale that may be available to the Fund from the Manager;
o     Fees paid by other mutual funds for similar services;
o     The value and quality of any other benefits or services received by the
         Fund from its relationship with the Manager, and
o     The direct and indirect benefits the Manager received from its
         relationship with the Fund.  These included services provided by the
         Distributor and the Transfer Agent, and brokerage and soft dollar
         arrangements permissible under Section 28(e) of the Securities
         Exchange Act.

      The Board considered that the Manager must be able to pay and retain
high quality personnel at competitive rates to provide services to the Fund.
The Board also considered that maintaining the financial viability of the
Manager is important so that the Manager will be able to continue to provide
quality services to the Fund and its shareholders in adverse times.  The
Board also considered the investment performance of other mutual funds
advised by the Manager. The Board is aware that there are alternatives to the
use of the Manager.

      These matters were also considered by the Independent Trustees meeting
separately from the full Board with experienced Counsel to the Fund who
assisted the Board in its deliberations.  The Fund's Counsel is independent
of the Manager within the meaning and intent of the SEC Rules regarding the
independence of counsel.

      After careful deliberation, the Board, including the Independent
Trustees, concluded that it was in the best interest of shareholders to
continue the investment advisory agreement for another year. In arriving at a
decision, the Board did not single out any one factor or group of factors as
being more important than other factors, but considered all factors
together.  The Board judged the terms and conditions of the investment
advisory agreement, including the investment advisory fee, in light of all of
the surrounding circumstances.


Portfolio Managers. The Fund's portfolio is managed by Ronald H. Fielding and
a team of investment professionals including Daniel G. Loughran, Scott
Cottier and Troy Willis (each is referred to as a "Portfolio Manager" and
collectively they are referred to as the "Portfolio Managers") who are
responsible for the day-to-day management of the Fund's investments.


        Other Accounts Managed.  In addition to managing the Fund's
investment portfolio, Messrs. Fielding, Loughran, Cottier and Willis also
manage other investment portfolios and other accounts on behalf of the
Manager or its affiliates. The following table provides information regarding
the other portfolios and accounts managed by Messrs. Fielding, Loughran,
Cottier and Willis as of December 31, 2004.  No account has a
performance-based advisory fee:


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

Portfolio        Registered     Total     Other        Total    Other   Total
                                                     Assets in
                              Assets in                Other
                              Registered  Pooled      Pooled             Assets
                 Investment   Investment  InvestmentInvestment          in Other
                  Companies   Companies   Vehicles   Vehicles   AccountsAccounts
Manager            Managed     Managed*    Managed   Managed*   Managed Managed*

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

Ronald H.
Fielding             10       $15,466.1     None        $0       None      $0

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

Daniel G.
Loughran             10       $15,466.1     None        $0       None      $0

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

Scott Cottier        10       $15,466.1     None        $0       None      $0

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

Troy Willis          10       $15,466.1     None        $0       None      $0

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


   * In millions.


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

     Compensation of the Portfolio Managers.  The Fund's Portfolio Managers
are employed and compensated by the Manager, not the Fund. Under the
Manager's compensation program for its portfolio managers and portfolio
analysts, their compensation is based primarily on the investment performance
results of the funds and accounts they manage, rather than on the financial
success of the Manager. This is intended to align the portfolio managers' and
analysts' interests with the success of the funds and accounts and their
investors.  The Manager's compensation structure is designed to attract and
retain highly qualified investment management professionals and to reward
individual and team contributions toward creating shareholder value.  As of
December 31, 2004, the Portfolio Managers' compensation consisted of three
elements: a base salary, an annual discretionary bonus and eligibility to
participate in long-term awards of options and appreciation rights in regard
to the common stock of the Manager's holding company parent.  Senior
portfolio managers may also be eligible to participate in the Manager's
deferred compensation plan.

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













       Ownership of Fund Shares.  As of December 31, 2004, the
Portfolio Managers did not beneficially own any shares of the Fund.


Brokerage Policies of the Fund

Brokerage Provisions of the Investment Advisory Agreement. One of the duties
of the Manager under the investment advisory agreement is to buy and sell
portfolio securities for the Fund. The investment advisory agreement allows
the Manager to use broker-dealers to effect the Fund's portfolio
transactions. The Manager is authorized by the advisory agreement to employ
broker-dealers, including "affiliated" brokers, as that term is defined in
the Investment Company Act) that, in the Manager's best judgment based on all
relevant factors, will implement the Fund's policy to obtain, at reasonable
expense, the "best execution" of portfolio transactions. "Best execution"
refers to prompt and reliable execution at the most favorable price
obtainable. The Manager need not seek competitive commission bidding.
However, the Manager is expected to minimize the commissions paid to the
extent consistent with the interest and policies of the Fund as established
by its Board of Trustees.

      Under the investment advisory agreement, in choosing brokers to execute
portfolio transactions for the Fund, the Manager may select brokers (other
than affiliates) that provide brokerage and/or research services to the Fund
and/or the other accounts over which the Manager or its affiliates have
investment discretion.  The commissions paid to those brokers may be higher
than another qualified broker would charge, if the Manager makes a good faith
determination that the commission is fair and reasonable in relation to the
services provided.

      Rule 12b-1 under the Investment Company Act prohibits any fund from
compensating a broker or dealer for promoting or selling the fund's shares by
(1) directing to that broker or dealer any of the fund's portfolio
transactions, or (2) directing any other remuneration to that broker or
dealer, such as commissions, mark-ups, mark downs or other fees from the
fund's portfolio transactions, that were effected by another broker or dealer
(these latter arrangements are considered to be a type of "step-out"
transaction). In other words, a fund and its investment adviser cannot use
the fund's brokerage for the purpose of rewarding broker-dealers for selling
the fund's shares.

      However, the Rule permits funds to effect brokerage transactions
through firms that also sell fund shares, provided that certain procedures
are adopted to prevent a quid pro quo with respect to portfolio brokerage
allocations. As permitted by the Rule, the Manager has adopted procedures
(and the Fund's Board of Trustees has approved those procedures) that permit
the Fund to direct portfolio securities transactions to brokers or dealers
that also promote or sell shares of the Fund, subject to the "best execution"
considerations discussed above. Those procedures are designed to prevent: (1)
the Manager's personnel who effect the Fund's portfolio transactions from
taking into account a broker's or dealer's promotion or sales of the Fund
shares when allocating the Fund's portfolio transactions, and (2) the Fund,
the Manager and the Distributor from entering into agreements or
understandings under which the Manager directs or is expected to direct the
Fund's brokerage directly, or through a "step-out" arrangement, to any broker
or dealer in consideration of that broker's or dealer's promotion or sale of
the Fund's shares or the shares of any of the other Oppenheimer funds.

Brokerage Practices Followed by the Manager. The Manager allocates brokerage
for the Fund subject to the provisions of the investment advisory agreement
and the procedures and rules described above. Generally the Manager's
portfolio traders allocate brokerage upon recommendations from the Manager's
portfolio managers. In certain instances, portfolio managers may directly
place trades and allocate brokerage. In either case, the Manager's executive
officers supervise the allocation of brokerage.

      Most securities purchases made by the Fund are in principal
transactions at net prices. The Fund usually deals directly with the selling
or purchasing principal or market maker without incurring charges for the
services of a broker on its behalf unless the Manager determines that a
better price or execution may be obtained by using the services of a broker.
Therefore, the Fund does not incur substantial brokerage costs. Portfolio
securities purchased from underwriters include a commission or concession
paid by the issuer to the underwriter in the price of the security. Portfolio
securities purchased from dealers include a spread between the bid and asked
price.

      The Fund seeks to obtain prompt execution of orders at the most
favorable net prices. In an option transaction, the Fund ordinarily uses the
same broker for the purchase or sale of the option and any transaction in the
investment to which the option relates. Other funds advised by the Manager
have investment objectives and policies similar to those of the Fund. Those
other funds may purchase or sell the same securities as the Fund at the same
time as the Fund, which could affect the supply and price of the securities.
When possible, the Manager tries to combine concurrent orders to purchase or
sell the same security by more than one of the accounts managed by the
Manager or its affiliates. The transactions under those combined orders are
averaged as to price and allocated in accordance with the purchase or sale
orders actually placed for each account.

      The investment advisory agreement permits the Manager to allocate
brokerage for research services. The research services provided by a
particular broker may be useful only to one or more of the advisory accounts
of the Manager and its affiliates. Investment research received by the
Manager for the commissions paid by those other accounts may be useful both
to the Fund and one or more of the Manager's other accounts. Investment
research services may be supplied to the Manager by a third party at the
instance of a broker through which trades are placed.

      Investment research services include information and analyses on
particular companies and industries as well as market or economic trends and
portfolio strategy, market quotations for portfolio evaluations, information
systems, computer hardware and similar products and services. If a research
service also assists the Manager in a non-research capacity (such as
bookkeeping or other administrative functions), then only the percentage or
component that provides assistance to the Manager in the investment
decision-making process may be paid in commission dollars.

      The research services provided by brokers broaden the scope and
supplement the research activities of the Manager. That research provides
additional views and comparisons for consideration and helps the Manager to
obtain market information for the valuation of securities that are either
held in the Fund's portfolio or are being considered for purchase. The
Manager provides information to the Board of the Fund about the commissions
paid to brokers furnishing such services, together with the Manager's
representation that the amount of such commissions was reasonably related to
the value or benefit of such services.







----------------------------------------------------------------
  Fiscal Year Ended    Total Brokerage Commissions Paid by the
        12/31                           Fund1
----------------------------------------------------------------
----------------------------------------------------------------
         2002                            None
----------------------------------------------------------------
----------------------------------------------------------------
         2003                            None
----------------------------------------------------------------
----------------------------------------------------------------

         2004                            None

----------------------------------------------------------------
1.    Amounts do not include spreads or commissions on principal amounts on a
           net trade basis.

Distribution and Service Plans

The Distributor. Under its General Distributor's Agreement with the Fund, the
Distributor acts as the Fund's principal underwriter in the continuous public
offering of the Fund's classes of shares. The Distributor bears the expenses
normally attributable to sales, including advertising and the cost of
printing and mailing prospectuses, other than those furnished to existing
shareholders. The Distributor is not obligated to sell a specific number of
shares.

      The sales charges and concessions paid to, or retained by, the
Distributor from the sale of shares and the contingent deferred sales charges
retained by the Distributor on the redemption of shares during the Fund's
three most recent fiscal years are shown in the tables below.

-------------------------------------------------------------------------------
Fiscal    Aggregate     Class A      Concessions    Concessions  Concessions
          Front-End     Front-End
Year      Sales         Sales        on Class A     on Class B   on Class C
Ended     Charges       Charges      Shares         Shares       Shares
12/31:    on Class A    Retained by  Advanced by    Advanced by  Advanced by
          Shares        Distributor  Distributor1   Distributor1 Distributor1
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
  2002     $15,818,044   $2,187,155    $2,632,657   $12,022,476   $1,480,192
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
  2003     $8,983,346    $1,256,842     $790,325     $4,732,115    $608,374
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------

  2004     $13,168,741   $1,926,707    $1,784,635    $3,862,535   $1,090,378

-------------------------------------------------------------------------------
1. The Distributor advances concession payments to dealers for certain sales
   of Class A shares and for sales of Class B and Class C shares from its own
   resources at the time of sale.

-------------------------------------------------------------------------------
Fiscal Year  Class A Contingent    Class B Contingent    Class C Contingent
             Deferred Sales        Deferred Sales        Deferred Sales
             Charges Retained by   Charges Retained by   Charges Retained by
Ended 12/31: Distributor           Distributor           Distributor
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
    2002           $163,987             $3,268,897             $134,035
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
    2003           $117,684             $3,574,383              $79,710
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------

    2004            $63,952             $2,288,830              $46,687

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

Distribution and Service Plans. The Fund has adopted a Service Plan for Class
A shares and Distribution and Service Plans for Class B and Class C shares
under Rule 12b-1 of the Investment Company Act. Under those plans the Fund
pays the Distributor for all or a portion of its costs incurred in connection
with the distribution and/or servicing of the shares of the particular class.
Each plan has been approved by a vote of the Board of Trustees, including a
majority of the Independent Trustees1, cast in person at a meeting called for
the purpose of voting on that plan.

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

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

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

      The Board of Trustees and the Independent Trustees must approve all
material amendments to a plan. An amendment to increase materially the amount
of payments to be made under a plan must be approved by shareholders of the
class affected by the amendment. Because Class B shares of the Fund
automatically convert into Class A shares 72 months after purchase, the Fund
must obtain the approval of both Class A and Class B shareholders for a
proposed material amendment to the Class A plan that would materially
increase payments under the plan. That approval must be by a majority of the
shares of each class, voting separately by class.

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

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

      Under the plans for a class, no payment will be made to any recipient
in any quarter in which the aggregate net asset value of all Fund shares of
that class held by the recipient for itself and its customers does not exceed
a minimum amount, if any, that may be set from time to time by a majority of
the Independent Trustees. The Board of Trustees currently limits aggregate
payments under the Class A plan to 0.15% of average annual net assets.


|X|   Class A Service Plan Fees. Under the Class A service plan, the
Distributor currently uses the fees it receives from the Fund to pay brokers,
dealers and other financial institutions (they are referred to as
"recipients") for personal services and account maintenance services they
provide for their customers who hold Class A shares. The services include,
among others, answering customer inquiries about the Fund, assisting in
establishing and maintaining accounts in the Fund, making the Fund's
investment plans available and providing other services at the request of the
Fund or the Distributor. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of
Class A shares, however, the Board has set the rate at 0.15%. The Distributor
does not receive or retain the service fee on Class A shares in accounts for
which the Distributor has been listed as the broker-dealer of record. While
the plan permits the Board to authorize payments to the Distributor to
reimburse itself for services under the plan, the Board has not yet done so.
The Distributor makes payments to plan recipients quarterly at an annual rate
currently not to exceed 0.15% of the average annual net assets consisting of
Class A shares held in the accounts of the recipients or their customers.

      For the fiscal year ended December 31, 2004 payments under the Class A
plan totaled $6,472,909, of which $13,886 was retained by the Distributor
under the arrangement described above, and included $58,618 paid to an
affiliate of the Distributor's parent company. Any unreimbursed expenses the
Distributor incurs with respect to Class A shares for any fiscal year may not
be recovered in subsequent years. The Distributor may not use payments
received under the Class A plan to pay any of its interest expenses, carrying
charges, other financial costs or allocation of overhead.


      |X|   Class B and Class C Distribution and Service Plan Fees. Under
each plan, distribution and service fees are computed on the average of the
net asset value of shares in the respective class, determined as of the close
of each regular business day during the period. Each plan provides for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund
under the plan during the period for which the fee is paid. The types of
services that recipients provide are similar to the services provided under
the Class A service plan, described above.


      Each plan permits the Distributor to retain both the asset-based sales
charges and the service fee on shares or to pay recipients the service fee on
a quarterly basis, without payment in advance. However, the Distributor
currently intends to pay the service fee to recipients in advance for the
first year after Class B and Class C shares are purchased. After the first
year shares are outstanding, after their purchase, the Distributor makes
service fee payments quarterly on those shares. The advance payment is based
on the net asset value of shares sold. Shares purchased by exchange do not
qualify for the advance service fee payment. If Class B or Class C shares are
redeemed during the first year after their purchase, the recipient of the
service fees on those shares will be obligated to repay the Distributor a pro
rata portion of the advance payment made on those shares. Class B or Class C
shares may not be purchased by an investor directly from the Distributor
without the investor designating another registered broker-dealer.  If the
investor no longer has another broker-dealer of record for an existing
account, the Distributor is automatically designated as the broker-dealer of
record, but solely for the purpose of acting as the investor's agent to
purchase the shares.  In those cases, the Distributor retains the asset-based
sales charge paid on Class B and Class C shares, but does not retain any
service fees as to the assets represented by that account.


      The asset-based sales charge and service fees increase Class B and
Class C expenses by 1.00% of the net assets per year of the respective class.

      The Distributor retains the asset-based sales charge on Class B shares.
The Distributor retains the asset-based sales charge on Class C shares during
the first year the shares are outstanding. It pays the asset-based sales
charge as an ongoing concession to the recipient on Class C shares
outstanding for a year or more. If a dealer has a special agreement with the
Distributor, the Distributor will pay the Class B and/or Class C service fee
and the asset-based sales charge to the dealer quarterly in lieu of paying
the sales concession and service fee in advance at the time of purchase.

      The asset-based sales charge on Class B and Class C shares allows
investors to buy shares without a front-end sales charge while allowing the
Distributor to compensate dealers that sell those shares. The Fund pays the
asset-based sales charge to the Distributor for its services rendered in
distributing Class B and Class C shares. The payments are made to the
Distributor in recognition that the Distributor:
o     pays sales concessions to authorized brokers and dealers at the time of
         sale and pays service fees as described above,
o     may finance payment of sales concessions and/or the advance of the
         service fee payment to recipients under the plans, or may provide
         such financing from its own resources or from the resources of an
         affiliate,
o     employs personnel to support distribution of Class B and Class C
         shares,
o     bears the costs of sales literature, advertising and prospectuses
         (other than those furnished to current shareholders) and state "blue
         sky" registration fees and certain other distribution expenses,
o     may not be able to adequately compensate dealers that sell Class B and
         Class C shares without receiving payment under the plans and
         therefore may not be able to offer such Classes for sale absent the
         plans,
o     receives payments under the plans consistent with the service fees and
         asset-based sales charges paid by other non-proprietary funds that
         charge 12b-1 fees,
o     may use the payments under the plan to include the Fund in various
         third-party distribution programs that may increase sales of Fund
         shares,
o     may experience increased difficulty selling the Fund's shares if
         payments under the plan are discontinued because most competitor
         funds have plans that pay dealers for rendering distribution
         services as much or more than the amounts currently being paid by
         the Fund, and
o     may not be able to continue providing, at the same or at a lesser cost,
         the same quality distribution sales efforts and services, or to
         obtain such services from brokers and dealers, if the plan payments
         were to be discontinued.

      The Distributor's actual expenses in selling Class B and Class C shares
may be more than the payments it receives from the contingent deferred sales
charges collected on redeemed shares and from the Fund under the plans. If
either the Class B or the Class C plan is terminated by the Fund, the Board
of Trustees may allow the Fund to continue payments of the asset-based sales
charge to the Distributor for distributing shares before the plan was
terminated.

---------------------------------------------------------------------------------
 Distribution Fees Paid to the Distributor for the Fiscal Year Ended 12/31/2004

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Class:        Total          Amount         Distributor's       Distributor's
                                                                Unreimbursed
                                            Aggregate           Expenses as %
              Payments       Retained by    Unreimbursed        of Net Assets
              Under Plan     Distributor    Expenses Under Plan of Class
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

Class B Plan   $11,292,305    $8,663,0171       $37,893,512          3.53%

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

Class C Plan    $4,586,486     $794,7522        $11,067,836          2.22%

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

1.    Includes  $16,145  paid  to an  affiliate  of the  Distributor's  parent
    company.
2.    Includes  $31,801  paid  to an  affiliate  of the  Distributor's  parent
    company.


      All payments under the Class B and the Class C plans are subject to the
limitations imposed by the Conduct Rules of the National Association of
Securities Dealers, Inc. on payments of asset-based sales charges and service
fees.

Performance of the Fund

Explanation of Performance Terminology. The Fund uses a variety of terms to
illustrate its performance. These terms include "standardized yield,"
"tax-equivalent yield," "dividend yield," "average annual total return,"
"cumulative total return," "average annual total return at net asset value"
and "total return at net asset value." An explanation of how yields and total
returns are calculated is set forth below. The charts below show the Fund's
performance as of the Fund's most recent fiscal year end. You can obtain
current performance information by calling the Fund's Transfer Agent at
1.800.225.5677 or by visiting the OppenheimerFunds Internet website at
www.oppenheimerfunds.com.

      The Fund's illustrations of its performance data in advertisements must
comply with rules of the SEC. Those rules describe the types of performance
data that may be used and how it is to be calculated. In general, any
advertisement by the Fund of its performance data must include the average
annual total returns for the advertised class of shares of the Fund.

      Use of standardized performance calculations enables an investor to
compare the Fund's performance to the performance of other funds for the same
periods. However, a number of factors should be considered before using the
Fund's performance information as a basis for comparison with other
investments:
o     Yields and total returns measure the performance of a hypothetical
         account in the Fund over various periods and do not show the
         performance of each shareholder's account. Your account's
         performance will vary from the model performance data if your
         dividends are received in cash, or you buy or sell shares during the
         period, or you bought your shares at a different time and price than
         the shares used in the model.
o     The Fund's performance returns may not reflect the effect of taxes on
         dividends and capital gains distributions.
o     An investment in the Fund is not insured by the FDIC or any other
         government agency.
o     The principal value of the Fund's shares, and its yields and total
         returns are not guaranteed and normally will fluctuate on a daily
         basis.
o     When an investor's shares are redeemed, they may be worth more or less
         than their original cost.
o     Yields and total returns for any given past period represent historical
         performance information and are not, and should not be considered, a
         prediction of future yields or returns.

      The performance of each class of shares is shown separately, because
the performance of each class of shares will usually be different. That is
because of the different kinds of expenses each class bears. The yields and
total returns of each class of shares of the Fund are affected by market
conditions, the quality of the Fund's investments, the maturity of those
investments, the types of investments the Fund holds, and its operating
expenses that are allocated to the particular class.

|X|   Yields. The Fund uses a variety of different yields to illustrate its
current returns. Each class of shares calculates its yield separately because
of the different expenses that affect each class.
o     Standardized Yield. The "standardized yield" (sometimes referred to
just as "yield") is shown for a class of shares for a stated 30-day period.
It is not based on actual distributions paid by the Fund to shareholders in
the 30-day period, but is a hypothetical yield based upon the net investment
income from the Fund's portfolio investments for that period. It may
therefore differ from the "dividend yield" for the same class of shares,
described below.

      Standardized yield is calculated using the following formula set forth
in rules adopted by the SEC, designed to assure uniformity in the way that
all funds calculate their yields:

 Standardized Yield = 2a-b +1)6 -1]
                       ---
                     [(
                       cd

      The symbols above represent the following factors:
      a =  dividends and interest earned during the 30-day period.
      b =  expenses accrued for the period (net of any expense assumptions).
      c =  the average daily number of shares of that class outstanding
           during the 30-day period that were entitled to receive dividends.
      d =  the maximum offering price per share of that class on the last day
           of the period, adjusted for undistributed net investment income.

      The standardized yield for a particular 30-day period may differ from
the yield for other periods. The SEC formula assumes that the standardized
yield for a 30-day period occurs at a constant rate for a six-month period
and is annualized at the end of the six-month period. Additionally, because
each class of shares is subject to different expenses, it is likely that the
standardized yields of the Fund's classes of shares will differ for any
30-day period.

o     Dividend Yield. The Fund may quote a "dividend yield" for each class of
its shares. Dividend yield is based on the dividends paid on a class of
shares during the actual dividend period. To calculate dividend yield, the
dividends of a class declared during a stated period are added together, and
the sum is multiplied by 12 (to annualize the yield) and divided by the
maximum offering price on the last day of the dividend period. The formula is
shown below:

  Dividend Yield = dividends paid x 12/maximum offering price (payment date)

      The maximum offering price for Class A shares includes the current
maximum initial sales charge. The maximum offering price for Class B and
Class C shares is the net asset value per share, without considering the
effect of contingent deferred sales charges. There is no sales charge on
Class Y shares. The Class A dividend yield may also be quoted without
deducting the maximum initial sales charge.

o     Tax-Equivalent Yield. The "tax-equivalent yield" of a class of shares
 is the equivalent yield that would have to be earned on a taxable investment
 to achieve the after-tax results represented by the Fund's tax-equivalent
 yield. It adjusts the Fund's standardized yield, as calculated above, by a
 stated tax rate. Using different tax rates to show different tax equivalent
 yields shows investors in different tax brackets the tax equivalent yield of
 the Fund based on their own tax bracket.

      The tax-equivalent yield is based on a 30-day period, and is computed
by dividing the tax-exempt portion of the Fund's current yield (as calculated
above) by one minus a stated income tax rate. The result is added to the
portion (if any) of the Fund's current yield that is not tax-exempt.

      The  tax-equivalent  yield may be used to  compare  the tax  effects  of
income  derived from the Fund with income from taxable  investments at the tax
rates  stated.  Your tax  bracket  is  determined  by your  federal  and state
taxable  income (the net amount  subject to federal and state income tax after
deductions and exemptions).


--------------------------------------------------------------------------------
The Fund's Yields for the 30-Day Periods Ended 12/31/2004
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Class of    Standardized Yield      Dividend Yield       Tax-Equivalent Yield

                                                           (40.01%Combined

                                                         Federal/New York Tax
Shares                                                        Bracket)1
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
          Without     After      Without    After      Without      After
          Sales       Sales      Sales      Sales                   Sales
          Charge      Charge     Charge     Charge     Sales Charge Charge
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Class A      5.35%      5.09%      6.09%      5.80%       8.92%        8.49%

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

Class B      4.47%       N/A       5.00%       N/A        7.45%         N/A

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

Class C      4.48%       N/A       5.02%       N/A        7.46%         N/A

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

Class Y      5.54%       N/A       6.33%       N/A        9.23%         N/A

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

1. The  tax-equivalent  yield  calculation  assumes that the investor is taxed
   just below the highest federal income tax bracket  (currently 35%) and also
   assumes the 2004 combined  federal and New York State rates  (regardless of
   whether a switch to non-taxable  investments would cause a lower bracket to
   apply).


      |X|   Total Return Information. There are different types of "total
returns" to measure the Fund's performance. Total return is the change in
value of a hypothetical investment in the Fund over a given period, assuming
that all dividends and capital gains distributions are reinvested in
additional shares and that the investment is redeemed at the end of the
period. Because of differences in expenses for each class of shares, the
total returns for each class are separately measured. The cumulative total
return measures the change in value over the entire period (for example, 10
years). An average annual total return shows the average rate of return for
each year in a period that would produce the cumulative total return over the
entire period. However, average annual total returns do not show actual
year-by-year performance. The Fund uses standardized calculations for its
total returns as prescribed by the SEC. The methodology is discussed below.

      In calculating total returns for Class A shares, the current maximum
sales charge of 4.75% (as a percentage of the offering price) is deducted
from the initial investment ("P" in the formula below) (unless the return is
shown without sales charge, as described below). For Class B shares, payment
of the applicable contingent deferred sales charge is applied, depending on
the period for which the return is shown: 5.0% in the first year, 4.0% in the
second year, 3.0% in the third and fourth years, 2.0% in the fifth year, 1.0%
in the sixth year and none thereafter. For Class C shares, the 1.0%
contingent deferred sales charge is deducted for returns for the one-year
period. There is no sales charge on Class Y shares.

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

    ERV      - 1  Average Annual Total
          l/n     Return
    ------
      P

o     Average Annual Total Return (After Taxes on Distributions). The
"average annual total return (after taxes on distributions)" of Class A
shares is an average annual compounded rate of return for each year in a
specified number of years, adjusted to show the effect of federal taxes
(calculated using the highest individual marginal federal income tax rates in
effect on any reinvestment date) on any distributions made by the Fund during
the specified period. It is the rate of return based on the change in value
of a hypothetical initial investment of $1,000 ("P" in the formula below)
held for a number of years ("n" in the formula) to achieve an ending value
("ATVD" in the formula) of that investment, after taking into account the
effect of taxes on Fund distributions, but not on the redemption of Fund
shares, according to the following formula:

           - 1 = Average Annual Total Return (After Taxes on
ATVD   l/n     Distributions)
---
  P

o     Average Annual Total Return (After Taxes on Distributions and
Redemptions).  The "average annual total return (after taxes on distributions
and redemptions)" of Class A shares is an average annual compounded rate of
return for each year in a specified number of years, adjusted to show the
effect of federal taxes (calculated using the highest individual marginal
federal income tax rates in effect on any reinvestment date) on any
distributions made by the Fund during the specified period and the effect of
capital gains taxes or capital loss tax benefits (each calculated using the
highest federal individual capital gains tax rate in effect on the redemption
date) resulting from the redemption of the shares at the end of the period.
It is the rate of return based on the change in value of a hypothetical
initial investment of $1,000 ("P" in the formula below) held for a number of
years ("n" in the formula) to achieve an ending value ("ATVDR" in the
formula) of that investment, after taking into account the effect of taxes on
fund distributions and on the redemption of Fund shares, according to the
following formula:

ATVDR       - 1  = Average Annual Total Return (After Taxes on Distributions
---
l/n              and Redemptions)
  P

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

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

o     Total Returns at Net Asset Value. From time to time the Fund may also
quote a cumulative or an average annual total return "at net asset value"
(without deducting sales charges) for each class of shares. There is no sales
charge on Class Y shares. Each is based on the difference in net asset value
per share at the beginning and the end of the period for a hypothetical
investment in that class of shares (without considering front-end or
contingent deferred sales charges) and takes into consideration the
reinvestment of dividends and capital gains distributions.

-----------------------------------------------------------------------------------
The Fund's Total Returns for the Periods Ended 12/31/2004
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
Class of  Cumulative Total               Average Annual Total Returns
               Returns
            (10 Years or
           life-of-class,
Shares        if less)
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
                                 1-Year            5-Year            10-Year
                                                 (or life of
                                                   class)       (or life of class)
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------
          After    Without  After     Without After     Without  After    Without
          Sales    Sales    Sales     Sales   Sales     Sales    Sales    Sales
           Charge   Charge   Charge   Charge   Charge    Charge   Charge   Charge
-----------------------------------------------------------------------------------
-----------------------------------------------------------------------------------

Class A1   90.02%   99.48%    2.16%    7.25%    6.51%    7.55%    6.63%    7.15%

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

Class B   50.77%2  50.77%2    1.40%    6.40%    6.32%    6.63%    5.41%2   5.41%2

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

Class C   48.42%3  48.42%3    5.40%    6.40%    6.65%    6.65%    5.20%3   5.20%3

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

Class Y   40.78%4  40.78%4    7.50%    7.50%   7.59%4    7.59%4    N/A      N/A

-----------------------------------------------------------------------------------
1. Inception of Class A:      5/15/86
2. Inception of Class B:      3/17/97
3. Inception of Class C:      3/17/97
4. Inception of Class Y:      4/28/00

---------------------------------------------------------------------------
   Average Annual Total Returns for Class A Shares (After Sales Charge)
                     For the Periods Ended 12/31/2004
---------------------------------------------------------------------------
---------------------------------------------------------------------------
                                1-Year         5-Year          10-Year
---------------------------------------------------------------------------
---------------------------------------------------------------------------

After Taxes on Distributions     2.16%          6.51%           6.63%

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

After Taxes on                   3.52%          6.47%           6.59%

Distributions and
Redemption of Fund Shares
---------------------------------------------------------------------------

Other Performance Comparisons. The Fund compares its performance annually to
that of an appropriate broadly-based market index in its Annual Report to
shareholders. You can obtain that information by contacting the Transfer
Agent at the addresses or telephone numbers shown on the cover of this
Statement of Additional Information. The Fund may also compare its
performance to that of other investments, including other mutual funds, or
use rankings of its performance by independent ranking entities. Examples of
these performance comparisons are set forth below.

      |X|   Lipper Rankings. From time to time the Fund may publish the
ranking of the performance of its classes of shares by Lipper, Inc.
("Lipper"). Lipper is a widely-recognized
independent mutual fund monitoring service. Lipper monitors the performance
of regulated investment companies, including the Fund, and ranks their
performance for various periods in categories based on investment styles. The
Lipper performance rankings are based on total returns that include the
reinvestment of capital gain distributions and income dividends but do not
take sales charges or taxes into consideration. Lipper also publishes
"peer-group" indices of the performance of all mutual funds in a category
that it monitors and averages of the performance of the funds in particular
categories.

|X|   Morningstar Ratings. From time to time the Fund may publish the star
rating of the performance of its classes of shares by Morningstar, Inc., an
independent mutual fund monitoring service. Morningstar rates and ranks
mutual funds in broad investment categories: domestic stock funds,
international stock funds, taxable bond funds and municipal bond funds. The
Fund is ranked among muni New York long-term funds.

      Morningstar proprietary star ratings reflect historical risk-adjusted
total investment return. For each fund with at least a three-year history,
Morningstar calculates a Morningstar Rating(TM)based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a fund's monthly
performance (including the effects of sales charges, loads, and redemption
fees), placing more emphasis on downward variations and rewarding consistent
performance.   The top 10% of funds in each category receive 5 stars, the
next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5%
receive 2 stars, and the bottom 10% receive 1 star.  (Each share class is
counted as a fraction of one fund within this scale and rated separately,
which may cause slight variations in the distribution percentages.) The
Overall Morningstar Rating for a fund is derived from a weighted average of
the performance figures associated with its three-, five-and ten-year (if
applicable) Morningstar Rating metrics.

      |X|   Performance Rankings and Comparisons by Other Entities and
Publications. From time to time the Fund may include in its advertisements
and sales literature performance information about the Fund cited in
newspapers and other periodicals such as The New York Times, The Wall Street
Journal, Barron's, or similar publications. That information may include
performance quotations from other sources, including Lipper and Morningstar.
The performance of the Fund's classes of shares may be compared in
publications to the performance of various market indices or other
investments, and averages, performance rankings or other benchmarks prepared
by recognized mutual fund statistical services.

      Investors may also wish to compare the returns on the Fund's share
classes to the return on fixed-income investments available from banks and
thrift institutions. Those include certificates of deposit, ordinary
interest-paying checking and savings accounts, and other forms of fixed or
variable time deposits, and various other instruments such as Treasury bills.
However, the Fund's returns and share price are not guaranteed or insured by
the FDIC or any other agency and will fluctuate daily, while bank depository
obligations may be insured by the FDIC and may provide fixed rates of return.
Repayment of principal and payment of interest on Treasury securities is
backed by the full faith and credit of the U.S. government.

      From time to time, the Fund may publish rankings or ratings of the
Manager or Transfer Agent, and of the investor services provided by them to
shareholders of the Oppenheimer funds, other than performance rankings of the
Oppenheimer funds themselves.  Those ratings or rankings of shareholder and
investor services by third parties may include comparisons of their services
to those provided by other mutual fund families selected by the rating or
ranking services. They may be based upon the opinions of the rating or
ranking service itself, using its research or judgment, or based upon surveys
of investors, brokers, shareholders or others.

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



ABOUT YOUR ACCOUNT

How to Buy Shares

Additional information is presented below about the methods that can be used
to buy shares of the Fund. Appendix C contains more information about the
special sales charge arrangements offered by the Fund, and the circumstances
in which sales charges may be reduced or waived for certain classes of
investors.

When you purchase shares of the Fund, your ownership interest in the shares
of the Fund will be recorded as a book entry on the records of the Fund.  The
Fund will not issue or re-register physical share certificates.

AccountLink. When shares are purchased through AccountLink, each purchase
must be at least $50 and shareholders must invest at least $500 before an
                     ---
Asset Builder Plan (described below) can be established on a new account.
Accounts established prior to November 1, 2002 will remain at $25 for
additional purchases. Shares will be purchased on the regular business day
the Distributor is instructed to initiate the Automated Clearing House
("ACH") transfer to buy the shares. Dividends will begin to accrue on shares
purchased with the proceeds of ACH transfers on the business day the Fund
receives Federal Funds for the purchase through the ACH system before the
close of The New York Stock Exchange (the "Exchange"). The Exchange normally
closes at 4:00 P.M., but may close earlier on certain days. If Federal Funds
are received on a business day after the close of the Exchange, the shares
will be purchased and dividends will begin to accrue on the next regular
business day. The proceeds of ACH transfers are normally received by the Fund
three days after the transfers are initiated. If the proceeds of the ACH
transfer are not received on a timely basis, the Distributor reserves the
right to cancel the purchase order. The Distributor and the Fund are not
responsible for any delays in purchasing shares resulting from delays in ACH
transmissions.

Reduced Sales Charges. As discussed in the Prospectus, a reduced sales charge
rate may be obtained for Class A shares under Right of Accumulation and
Letters of Intent because of the economies of sales efforts and reduction in
expenses realized by the Distributor, dealers and brokers making such sales.
No sales charge is imposed in certain other circumstances described in
Appendix C to this Statement of Additional Information because the
Distributor or dealer or broker incurs little or no selling expenses.

|X|   The Oppenheimer Funds. The Oppenheimer funds are those mutual funds for
which the Distributor acts as the distributor and currently include the
following:


Oppenheimer AMT-Free Municipals           Oppenheimer Limited Term Municipal Fund
Oppenheimer AMT-Free New York Municipals  Oppenheimer Main Street Fund
Oppenheimer Balanced Fund                 Oppenheimer Main Street Opportunity Fund
Oppenheimer California Municipal Fund     Oppenheimer Main Street Small Cap Fund
Oppenheimer Capital Appreciation Fund     Oppenheimer MidCap Fund
Oppenheimer Capital Income Fund           Oppenheimer New Jersey Municipal Fund
Oppenheimer Champion Income Fund          Oppenheimer Pennsylvania Municipal Fund

                                          Oppenheimer   Principal  Protected  Main

Oppenheimer Convertible Securities Fund   Street Fund

                                          Oppenheimer   Principal  Protected  Main

Oppenheimer Core Bond Fund                Street Fund II

                                          Oppenheimer   Principal  Protected  Main
Oppenheimer Developing Markets Fund       Street Fund III
Oppenheimer Disciplined Allocation Fund   Oppenheimer Quest Balanced Fund
                                          Oppenheimer  Quest  Capital  Value Fund,
Oppenheimer Discovery Fund                Inc.
                                          Oppenheimer  Quest  International  Value
Oppenheimer Emerging Growth Fund          Fund, Inc.
Oppenheimer Emerging Technologies Fund    Oppenheimer Quest Opportunity Value Fund
Oppenheimer Enterprise Fund               Oppenheimer Quest Value Fund, Inc.
Oppenheimer Equity Fund, Inc.             Oppenheimer Real Asset Fund
Oppenheimer Global Fund                   Oppenheimer Real Estate Fund
                                          Oppenheimer      Rochester      National
Oppenheimer Global Opportunities Fund     Municipals
Oppenheimer Gold & Special Minerals Fund  Oppenheimer Select Value Fund
Oppenheimer Growth Fund                   Oppenheimer Senior Floating Rate Fund
Oppenheimer High Yield Fund               Oppenheimer Small Cap Value Fund
Oppenheimer International Bond Fund       Oppenheimer Strategic Income Fund
Oppenheimer International Growth Fund     Oppenheimer Total Return Bond Fund
Oppenheimer  International  Small Company
Fund                                      Oppenheimer U.S. Government Trust
Oppenheimer International Value Fund      Oppenheimer Value Fund
Oppenheimer   Limited   Term   California
Municipal Fund                            Limited-Term New York Municipal Fund
Oppenheimer Limited-Term Government Fund  Rochester Fund Municipals

And the following money market funds:

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

      There is an initial sales charge on the purchase of Class A shares of
each of the Oppenheimer funds described above except the money market funds.
Under certain circumstances described in this Statement of Additional
Information, redemption proceeds of certain money market fund shares may be
subject to a contingent deferred sales charge.

   Letters of Intent. Under a Letter of Intent ("Letter"), you can reduce the
   sales charge rate that applies to your purchases of Class A shares if you
   purchase Class A, Class B or Class C shares of the Fund or other
   Oppenheimer funds during a 13-month period. The total amount of your
   purchases of Class A, Class B and Class C shares will determine the sales
   charge rate that applies to your Class A share purchases during that
   period. You can choose to include purchases that you made up to 90 days
   before the date of the Letter. Class A shares of Oppenheimer Money Market
   Fund and Oppenheimer Cash Reserves on which you have not paid a sales
   charge and any Class N shares you purchase, or may have purchased, will
   not be counted towards satisfying the purchases specified in a Letter.

         A Letter is an investor's statement in writing to the Distributor of
   his or her intention to purchase a specified value of Class A, Class B
   and Class C shares of the Fund and other Oppenheimer funds during a
   13-month period (the "Letter period"). At the investor's request, this may
   include purchases made up to 90 days prior to the date of the Letter. The
   Letter states the investor's intention to make the aggregate amount of
   purchases of shares which will equal or exceed the amount specified in the
   Letter. Purchases made by reinvestment of dividends or capital gains
   distributions and purchases made at net asset value (i.e. without a sales
   charge) do not count toward satisfying the amount of the Letter.

      Each purchase of Class A shares under the Letter will be made at the
offering price (including the sales charge) that would apply to a single
lump-sum purchase of shares in the amount intended to be purchased under the
Letter.

      In submitting a Letter, the investor makes no commitment to purchase
shares. However, if the investor's purchases of shares within the Letter
period, when added to the value (at offering price) of the investor's
holdings of shares on the last day of that period, do not equal or exceed the
intended purchase amount, the investor agrees to pay the additional amount of
sales charge applicable to such purchases. That amount is described in "Terms
of Escrow," below (those terms may be amended by the Distributor from time to
time). The investor agrees that shares equal in value to 5% of the intended
purchase amount will be held in escrow by the Transfer Agent subject to the
Terms of Escrow. Also, the investor agrees to be bound by the terms of the
Prospectus, this Statement of Additional Information and the application used
for a Letter. If those terms are amended, as they may be from time to time by
the Fund, the investor agrees to be bound by the amended terms and that those
amendments will apply automatically to existing Letters.

      If the total eligible purchases made during the Letter period do not
equal or exceed the intended purchase amount, the concessions previously paid
to the dealer of record for the account and the amount of sales charge
retained by the Distributor will be adjusted to the rates applicable to
actual total purchases. If total eligible purchases during the Letter period
exceed the intended purchase amount and exceed the amount needed to qualify
for the next sales charge rate reduction set forth in the Prospectus, the
sales charges paid will be adjusted to the lower rate. That adjustment will
be made only if and when the dealer returns to the Distributor the excess of
the amount of concessions allowed or paid to the dealer over the amount of
concessions that apply to the actual amount of purchases. The excess
concessions returned to the Distributor will be used to purchase additional
shares for the investor's account at the net asset value per share in effect
on the date of such purchase, promptly after the Distributor's receipt
thereof.

      The  Transfer  Agent  will not hold  shares in escrow for  purchases  of
shares of the Fund and other Oppenheimer funds by  OppenheimerFunds  prototype
401(k) plans under a Letter.  If the intended  purchase  amount under a Letter
entered into by an OppenheimerFunds  prototype 401(k) plan is not purchased by
the plan by the end of the  Letter  period,  there  will be no  adjustment  of
concessions paid to the  broker-dealer or financial  institution of record for
accounts held in the name of that plan.

      In determining the total amount of purchases made under a Letter,
shares redeemed by the investor prior to the termination of the Letter period
will be deducted. It is the responsibility of the dealer of record and/or the
investor to advise the Distributor about the Letter when placing any purchase
orders for the investor during the Letter period. All of such purchases must
be made through the Distributor.

      |X|   Terms of Escrow That Apply to Letters of Intent.

      1. Out of the initial purchase (or subsequent purchases if necessary)
made pursuant to a Letter, shares of the Fund equal in value up to 5% of the
intended purchase amount specified in the Letter shall be held in escrow by
the Transfer Agent. For example, if the intended purchase amount is $50,000,
the escrow shall be shares valued in the amount of $2,500 (computed at the
offering price adjusted for a $50,000 purchase). Any dividends and capital
gains distributions on the escrowed shares will be credited to the investor's
account.

      2. If the total minimum investment specified under the Letter is
completed within the 13-month Letter period, the escrowed shares will be
promptly released to the investor.

      3. If, at the end of the 13-month Letter period the total purchases
pursuant to the Letter are less than the intended purchase amount specified
in the Letter, the investor must remit to the Distributor an amount equal to
the difference between the dollar amount of sales charges actually paid and
the amount of sales charges which would have been paid if the total amount
purchased had been made at a single time. That sales charge adjustment will
apply to any shares redeemed prior to the completion of the Letter. If the
difference in sales charges is not paid within twenty days after a request
from the Distributor or the dealer, the Distributor will, within sixty days
of the expiration of the Letter, redeem the number of escrowed shares
necessary to realize such difference in sales charges. Full and fractional
shares remaining after such redemption will be released from escrow. If a
request is received to redeem escrowed shares prior to the payment of such
additional sales charge, the sales charge will be withheld from the
redemption proceeds.

      4. By signing the Letter, the investor irrevocably constitutes and
appoints the Transfer Agent as attorney-in-fact to surrender for redemption
any or all escrowed shares.

5.    The shares eligible for purchase under the Letter (or the holding of
which may be counted toward completion of a Letter) include:
(a)   Class A shares sold with a front-end sales charge or subject to a Class
            A contingent deferred sales charge,

(b)   Class B and Class C shares of other Oppenheimer funds acquired subject
            to a contingent deferred sales charge, and
(c)   Class A , Class B or Class C shares acquired by exchange of either (1)
            Class A shares of one of the other Oppenheimer funds that were
            acquired subject to a Class A initial or contingent deferred
            sales charge or (2) Class B or Class C shares of one of the other
            Oppenheimer funds that were acquired subject to a contingent
            deferred sales charge.


      6. Shares held in escrow hereunder will automatically be exchanged for
shares of another fund to which an exchange is requested, as described in the
section of the Prospectus entitled "How to Exchange Shares" and the escrow
will be transferred to that other fund.

Asset Builder Plans. As explained in the Prospectus, you must initially
establish your account with $500. Subsequently, you can establish an Asset
Builder Plan to automatically purchase additional shares directly from a bank
account for as little as $50. For those accounts established prior to
November 1, 2002 and which have previously established Asset Builder Plans,
additional purchases will remain at $25. Shares purchased by Asset Builder
Plan payments from bank accounts are subject to the redemption restrictions
for recent purchases described in the Prospectus. Asset Builder Plans are
available only if your bank is an ACH member. Asset Builder Plans may not be
used to buy shares for OppenheimerFunds employer-sponsored qualified
retirement accounts. Asset Builder Plans also enable shareholders of
Oppenheimer Cash Reserves to use their fund account to make monthly automatic
purchases of shares of up to four other Oppenheimer funds.

      If you make payments from your bank account to purchase shares of the
Fund, your bank account will be debited automatically. Normally the debit
will be made two business days prior to the investment dates you selected on
your application. Neither the Distributor, the Transfer Agent or the Fund
shall be responsible for any delays in purchasing shares that result from
delays in ACH transmissions.

      Before you establish Asset Builder payments, you should obtain a
prospectus of the selected fund(s) from your financial advisor (or the
Distributor) and request an application from the Distributor. Complete the
application and return it. You may change the amount of your Asset Builder
payment or you can terminate these automatic investments at any time by
writing to the Transfer Agent. The Transfer Agent requires a reasonable
period (approximately 10 days) after receipt of your instructions to
implement them. The Fund reserves the right to amend, suspend or discontinue
offering Asset Builder plans at any time without prior notice.

Cancellation of Purchase Orders. Cancellation of purchase orders for the
Fund's shares (for example, when a purchase check is returned to the Fund
unpaid) causes a loss to be incurred when the net asset values of the Fund's
shares on the cancellation date is less than on the purchase date. That loss
is equal to the amount of the decline in the net asset value per share
multiplied by the number of shares in the purchase order. The investor is
responsible for that loss. If the investor fails to compensate the Fund for
the loss, the Distributor will do so. The Fund may reimburse the Distributor
for that amount by redeeming shares from any account registered in that
investor's name, or the Fund or the Distributor may seek other redress.

Classes of Shares. Each class of shares of the Fund represents an interest in
the same portfolio of investments of the Fund. However, each class has
different shareholder privileges and features. The net income attributable to
Class B or Class C shares and the dividends payable on Class B or Class C
shares will be reduced by incremental expenses borne solely by that class.
Those expenses include the asset-based sales charges to which Class B and
Class C are subject.

      The availability of different classes of shares permits an investor to
choose the method of purchasing shares that is more appropriate for the
investor. That may depend on the amount of the purchase, the length of time
the investor expects to hold shares, and other relevant circumstances. Class
A shares normally are sold subject to an initial sales charge. While Class B
and Class C shares have no initial sales charge, the purpose of the deferred
sales charge and asset-based sales charge on Class B and Class C shares is
the same as that of the initial sales charge on Class A shares - to
compensate the Distributor and brokers, dealers and financial institutions
that sell shares of the Fund. A salesperson who is entitled to receive
compensation from his or her firm for selling Fund shares may receive
different levels of compensation for selling one class of shares rather than
another.

The Distributor will not accept a purchase order of $100,000 or more for
Class B shares or a purchase order of $1 million or more to purchase Class C
shares on behalf of a single investor (not including dealer "street name" or
omnibus accounts).


Class B or Class C shares may not be purchased by an investor directly form
the Distributor without designating another registered broker-dealer.


      |X|   Class B Conversion. Under current interpretations of applicable
federal income tax law by the Internal Revenue Service, the conversion of
Class B shares to Class A shares 72 months after purchase is not treated as a
taxable event for the shareholder. If those laws or the IRS interpretation of
those laws should change, the automatic conversion feature may be suspended.
In that event, no further conversions of Class B shares would occur while
that suspension remained in effect. Although Class B shares could then be
exchanged for Class A shares on the basis of relative net asset value of the
two classes, without the imposition of a sales charge or fee, such exchange
could constitute a taxable event for the shareholder, and absent such
exchange, Class B shares might continue to be subject to the asset-based
sales charge for longer than six years.

      |X|   Allocation of Expenses. The Fund pays expenses related to its
daily operations, such as custodian fees, Trustees' fees, transfer agency
fees, legal fees and auditing costs. Those expenses are paid out of the
Fund's assets and are not paid directly by shareholders. However, those
expenses reduce the net asset values of shares, and therefore are indirectly
borne by shareholders through their investment.

      The methodology for calculating the net asset value, dividends and
distributions of the Fund's share classes recognizes two types of expenses.
General expenses that do not pertain specifically to any one class are
allocated pro rata to the shares of all classes. The allocation is based on
the percentage of the Fund's total assets that is represented by the assets
of each class, and then equally to each outstanding share within a given
class. Such general expenses include management fees, legal, bookkeeping and
audit fees, printing and mailing costs of shareholder reports, Prospectuses,
Statements of Additional Information and other materials for current
shareholders, fees to unaffiliated Trustees, custodian expenses, share
issuance costs, organization and start-up costs, interest, taxes and
brokerage commissions, and non-recurring expenses, such as litigation costs.

      Other expenses that are directly attributable to a particular class are
allocated equally to each outstanding share within that class. Examples of
such expenses include distribution and  service plan (12b-1) fees, transfer
and shareholder servicing agent fees and expenses and shareholder meeting
expenses (to the extent that such expenses pertain only to a specific class).

Fund Account Fees. As stated in the Prospectus, a $12 annual "Minimum Balance
Fee" is assessed on each Fund account with a share balance valued under $500.
The Minimum Balance Fee is automatically deducted from each such Fund account
on or about the second to last business day of September.

   Listed below are certain cases in which the Fund has elected, in its
   discretion, not to assess the Fund Account Fees.  These exceptions are
   subject to change:
o     A fund account whose shares were acquired after September 30th of the
      prior year;
o     A fund account that has a balance below $500 due to the automatic
      conversion of shares from Class B to Class A shares. However, once all
      Class B shares held in the account have been converted to Class A
      shares the new account balance may become subject to the Minimum
      Balance Fee;
o     Accounts of shareholders who elect to access their account documents
      electronically via eDoc Direct;
o     A fund account that has only certificated shares and, has a balance
      below $500 and is being escheated;
o     Accounts of shareholders that are held by broker-dealers under the NSCC
      Fund/SERV system;
o     Accounts held under the Oppenheimer Legacy Program and/or holding
      certain Oppenheimer Variable Account Funds;
o     Omnibus accounts holding shares pursuant to the Pinnacle, Ascender,
      Custom Plus, Recordkeeper Pro and Pension Alliance Retirement Plan
      programs; and
o     A fund account that falls below the $500 minimum solely due to market
      fluctuations within the 12-month period preceding the date the fee is
      deducted.

To access account documents electronically via eDocs Direct, please visit the
Service Center on our website at www.oppenheimerfunds.com or call
                                 ------------------------
1.888.470.0862 for instructions.

      The Fund reserves the authority to modify Fund Account Fees in its
discretion.

Determination of Net Asset Values Per Share. The net asset values per share
of each class of shares of the Fund are determined as of the close of
business of the Exchange on each day that the Exchange is open. The
calculation is done by dividing the value of the Fund's net assets
attributable to a class by the number of shares of that class that are
outstanding. The Exchange normally closes at 4:00 P.M., Eastern time, but may
close earlier on some other days (for example, in case of weather emergencies
or on days falling before a U.S. holiday).  All references to time in this
Statement of Additional Information mean "Eastern time." The Exchange's most
recent annual announcement regarding holidays and days when the market may
close early is available on the Exchange's website at www.nyse.com.

      Dealers other than Exchange members may conduct trading in municipal
securities on days on which the Exchange is closed (including weekends and
holidays) or after 4:00 P.M. on a regular business day. Because the Fund's
net asset values will not be calculated on those days, the Fund's net asset
values per share may be significantly affected on such days when shareholders
may not purchase or redeem shares.

      |X|   Securities Valuation. The Fund's Board of Trustees has
established procedures for the valuation of the Fund's securities. In general
those procedures are as follows:

o     Long-term debt securities having a remaining maturity in excess of 60
days are valued based on the mean between the "bid" and "asked" prices
determined by a portfolio pricing service approved by the Fund's Board of
Trustees or obtained by the Manager from two active market makers in the
security on the basis of reasonable inquiry.
o     The following securities are valued at the mean between the "bid" and
"asked" prices determined by a pricing service approved by the Fund's Board
of Trustees or obtained by the Manager from two active market makers in the
security on the basis of reasonable inquiry:
(1)   debt instruments that have a maturity of more than 397 days when
               issued,
(2)   debt instruments that had a maturity of 397 days or less when issued
               and have a remaining maturity of more than 60 days, and
(3)   non-money market debt instruments that had a maturity of 397 days or
               less when issued and which have a remaining maturity of 60
               days or less.
o     The following securities are valued at cost, adjusted for amortization
of premiums and accretion of discounts:
(1)   money market debt securities held by a non-money market fund that had a
               maturity of less than 397 days when issued that have a
               remaining maturity of 60 days or less, and
(2)   debt instruments held by a money market fund that have a remaining
               maturity of 397 days or less.

      Securities (including restricted securities) not having
readily-available market quotations are valued at fair value determined under
the Board's procedures. If the Manager is unable to locate two market makers
willing to give quotes, a security may be priced at the mean between the
"bid" and "asked" prices provided by a single active market maker (which in
certain cases may be the "bid" price if no "asked" price is available).

      In the case of municipal securities, when last sale information is not
generally available, the Manager may use pricing services approved by the
Board of Trustees. The pricing service may use "matrix" comparisons to the
prices for comparable instruments on the basis of quality, yield and
maturity. Other special factors may be involved (such as the tax-exempt
status of the interest paid by municipal securities). The Manager will
monitor the accuracy of the pricing services. That monitoring may include
comparing prices used for portfolio valuation to actual sales prices of
selected securities.

      Puts, calls, futures and municipal bond index futures are valued at the
last sale price on the principal exchange on which they are traded or on
Nasdaq(R), as applicable, as determined by a pricing service approved by the
Board of Trustees or by the Manager. If there were no sales that day, they
shall be valued at the last sale price on the preceding trading day if it is
within the spread of the closing "bid" and "asked" prices on the principal
exchange or on Nasdaq(R)on the valuation date. If not, the value shall be the
closing bid price on the principal exchange or on Nasdaq(R)on the valuation
date. If the put, call or future is not traded on an exchange or on Nasdaq(R),
it shall be valued by the mean between "bid" and "asked" prices obtained by
the Manager from two active market makers. In certain cases that may be at
the "bid" price if no "asked" price is available.

      When the Fund writes an option, an amount equal to the premium received
is included in the Fund's Statement of Assets and Liabilities as an asset. An
equivalent credit is included in the liability section. The credit is
adjusted ("marked-to-market") to reflect the current market value of the
option. In determining the Fund's gain on investments, if a call written by
the Fund is exercised, the proceeds are increased by the premium received. If
a call written by the Fund expires, the Fund has a gain in the amount of the
premium. If the Fund enters into a closing purchase transaction, it will have
a gain or loss, depending on whether the premium received was more or less
than the cost of the closing transaction. If the Fund exercises a put it
holds, the amount the Fund receives on its sale of the underlying investment
is reduced by the amount of premium paid by the Fund.

How to Sell Shares

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

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

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

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

Reinvestment Privilege. Within six months of a redemption, a shareholder may
reinvest all or part of the redemption proceeds of:
o     Class A shares purchased subject to an initial sales charge or Class A
         shares on which a contingent deferred sales charge was paid, or
o     Class B shares that were subject to the Class B contingent deferred
         sales charge when redeemed.

      The reinvestment may be made without sales charge only in Class A
shares of the Fund or any of the other Oppenheimer funds into which shares of
the Fund are exchangeable as described in "How to Exchange Shares" below.
Reinvestment will be at the net asset value next computed after the Transfer
Agent receives the reinvestment order. The shareholder must ask the Transfer
Agent for that privilege at the time of reinvestment. This privilege does not
apply to Class C or Class Y shares. The Fund may amend, suspend or cease
offering this reinvestment privilege at any time as to shares redeemed after
the date of such amendment, suspension or cessation.

      Any capital gain that was realized when the shares were redeemed is
taxable, and reinvestment will not alter any capital gains tax payable on
that gain. If there has been a capital loss on the redemption, some or all of
the loss may not be tax deductible, depending on the timing and amount of the
reinvestment. Under the Internal Revenue Code, if the redemption proceeds of
Fund shares on which a sales charge was paid are reinvested in shares of the
Fund or another of the Oppenheimer funds within 90 days of payment of the
sales charge, the shareholder's basis in the shares of the Fund that were
redeemed may not include the amount of the sales charge paid. That would
reduce the loss or increase the gain recognized from the redemption. However,
in that case the sales charge would be added to the basis of the shares
acquired by the reinvestment of the redemption proceeds.

Payments "In Kind". The Prospectus states that payment for shares tendered
for redemption is ordinarily made in cash. However, under certain
circumstances, the Board of Trustees of the Fund may determine that it would
be detrimental to the best interests of the remaining shareholders of the
Fund to make payment of a redemption order wholly or partly in cash. In that
case, the Fund may pay the redemption proceeds in whole or in part by a
distribution "in kind" of liquid securities from the portfolio of the Fund,
in lieu of cash.

      The Fund has elected to be governed by Rule 18f-1 under the Investment
Company Act. Under that rule, the Fund is obligated to redeem shares solely
in cash up to the lesser of $250,000 or 1% of the net assets of the Fund
during any 90-day period for any one shareholder. If shares are redeemed in
kind, the redeeming shareholder might incur brokerage or other costs in
selling the securities for cash. The Fund will value securities used to pay
redemptions in kind using the same method the Fund uses to value its
portfolio securities described above under "Determination of Net Asset Values
Per Share." That valuation will be made as of the time the redemption price
is determined.

Involuntary Redemptions. The Fund's Board of Trustees has the right to cause
the involuntary redemption of the shares held in any account if the aggregate
net asset value of those shares is less than $200 or such lesser amount as
the Board may fix. The Board of Trustees will not cause the involuntary
redemption of shares in an account if the aggregate net asset value of such
shares has fallen below the stated minimum solely as a result of market
fluctuations. If the Board exercises this right, it may also fix the
requirements for any notice to be given to the shareholders in question (not
less than 30 days). The Board may alternatively set requirements for the
shareholder to increase the investment, or set other terms and conditions so
that the shares would not be involuntarily redeemed.

Transfers of Shares. A transfer of shares to a different registration is not
an event that triggers the payment of sales charges. Therefore, shares are
not subject to the payment of a contingent deferred sales charge of any class
at the time of transfer to the name of another person or entity. It does not
matter whether the transfer occurs by absolute assignment, gift or bequest,
as long as it does not involve, directly or indirectly, a public sale of the
shares. When shares subject to a contingent deferred sales charge are
transferred, the transferred shares will remain subject to the contingent
deferred sales charge. It will be calculated as if the transferee shareholder
had acquired the transferred shares in the same manner and at the same time
as the transferring shareholder.

      If less than all shares held in an account are transferred, and some
but not all shares in the account would be subject to a contingent deferred
sales charge if redeemed at the time of transfer, the priorities described in
the Prospectus under "How to Buy Shares" for the imposition of the Class B or
Class C contingent deferred sales charge will be followed in determining the
order in which shares are transferred.

Special Arrangements for Repurchase of Shares from Dealers and Brokers. The
Distributor is the Fund's agent to repurchase its shares from authorized
dealers or brokers on behalf of their customers. Shareholders should contact
their broker or dealer to arrange this type of redemption. The repurchase
price per share will be the net asset value next computed after the
Distributor receives an order placed by the dealer or broker. However, if the
Distributor receives a repurchase order from a dealer or broker after the
close of the Exchange on a regular business day, it will be processed at that
day's net asset value if the order was received by the dealer or broker from
its customers prior to the time the Exchange closes. Normally, the Exchange
closes at 4:00 P.M., but may do so earlier on some days. Additionally, the
order must have been transmitted to and received by the Distributor prior to
its close of business that day (normally 5:00 P.M.).

      Ordinarily, for accounts redeemed by a broker-dealer under this
procedure, payment will be made within three business days after the shares
have been redeemed upon the Distributor's receipt of the required redemption
documents in proper form. The signature(s) of the registered owners on the
redemption documents must be guaranteed as described in the Prospectus

Automatic Withdrawal and Exchange Plans. Investors owning shares of the Fund
valued at $5,000 or more can authorize the Transfer Agent to redeem shares
(having a value of at least $50) automatically on a monthly, quarterly,
semi-annual or annual basis under an Automatic Withdrawal Plan. Shares will
be redeemed three business days prior to the date requested by the
shareholder for receipt of the payment. Automatic withdrawals of up to $1,500
per month may be requested by telephone if payments are to be made by check
payable to all shareholders of record. Payments must also be sent to the
address of record for the account and the address must not have been changed
within the prior 30 days. Required minimum distributions from
OppenheimerFunds-sponsored retirement plans may not be arranged on this
basis.

      Payments are normally made by check, but shareholders having
AccountLink privileges (see "How To Buy Shares") may arrange to have
Automatic Withdrawal Plan payments transferred to the bank account designated
on the account application or by signature-guaranteed instructions sent to
the Transfer Agent. Shares are normally redeemed pursuant to an Automatic
Withdrawal Plan three business days before the payment transmittal date you
select in the account application. If a contingent deferred sales charge
applies to the redemption, the amount of the check or payment will be reduced
accordingly.

      The Fund cannot guarantee receipt of a payment on the date requested.
The Fund reserves the right to amend, suspend or discontinue offering these
plans at any time without prior notice. Because of the sales charge assessed
on Class A share purchases, shareholders should not make regular additional
Class A share purchases while participating in an Automatic Withdrawal Plan.
Class B and Class C shareholders should not establish automatic withdrawal
plans, because of the potential imposition of the contingent deferred sales
charge on such withdrawals (except where the contingent deferred sales charge
is waived as described in Appendix C to this Statement of Additional
Information).

      By requesting an Automatic Withdrawal or Exchange Plan, the shareholder
agrees to the terms and conditions that apply to such plans, as stated below.
These provisions may be amended from time to time by the Fund and/or the
Distributor. When adopted, any amendments will automatically apply to
existing Plans.

      |X|   Automatic Exchange Plans. Shareholders can authorize the Transfer
Agent to exchange a pre-determined amount of shares of the Fund for shares
(of the same class) of other Oppenheimer funds automatically on a monthly,
quarterly, semi-annual or annual basis under an Automatic Exchange Plan. The
minimum amount that may be exchanged to each other fund account is $50.
Instructions should be provided on the OppenheimerFunds Application or
signature-guaranteed instructions. Exchanges made under these plans are
subject to the restrictions that apply to exchanges as set forth in "How to
Exchange Shares" in the Prospectus and below in this Statement of Additional
Information..

      |X|   Automatic Withdrawal Plans. Fund shares will be redeemed as
necessary to meet withdrawal payments. Shares acquired without a sales charge
will be redeemed first. Shares acquired with reinvested dividends and capital
gains distributions will be redeemed next, followed by shares acquired with a
sales charge, to the extent necessary to make withdrawal payments. Depending
upon the amount withdrawn, the investor's principal may be depleted. Payments
made under these plans should not be considered as a yield or income on your
investment.

      The Transfer Agent will administer the investor's Automatic Withdrawal
Plan as agent for the shareholder(s) (the "Planholder") who executed the plan
authorization and application submitted to the Transfer Agent. Neither the
Fund nor the Transfer Agent shall incur any liability to the Planholder for
any action taken or not taken by the Transfer Agent in good faith to
administer the plan. Share certificates will not be issued for shares of the
Fund purchased for and held under the plan, but the Transfer Agent will
credit all such shares to the account of the Planholder on the records of the
Fund. Any share certificates held by a Planholder may be surrendered
unendorsed to the Transfer Agent with the plan application so that the shares
represented by the certificate may be held under the plan.

      For accounts subject to Automatic Withdrawal Plans, distributions of
capital gains must be reinvested in shares of the Fund, which will be done at
net asset value without a sales charge. Dividends on shares held in the
account may be paid in cash or reinvested.

      Shares will be redeemed to make withdrawal payments at the net asset
value per share determined on the redemption date. Checks or AccountLink
payments representing the proceeds of Plan withdrawals will normally be
transmitted three business days prior to the date selected for receipt of the
payment, according to the choice specified in writing by the Planholder.
Receipt of payment on the date selected cannot be guaranteed.

      The amount and the interval of disbursement payments and the address to
which checks are to be mailed or AccountLink payments are to be sent may be
changed at any time by the Planholder by writing to the Transfer Agent. The
Planholder should allow at least two weeks' time after mailing such
notification for the requested change to be put in effect. The Planholder
may, at any time, instruct the Transfer Agent by written notice to redeem
all, or any part of, the shares held under the plan. That notice must be in
proper form in accordance with the requirements of the then-current
Prospectus of the Fund. In that case, the Transfer Agent will redeem the
number of shares requested at the net asset value per share in effect and
will mail a check for the proceeds to the Planholder.

      The Planholder may terminate a Plan at any time by writing to the
Transfer Agent. The Fund may also give directions to the Transfer Agent to
terminate a Plan. The Transfer Agent will also terminate a Plan upon its
receipt of evidence satisfactory to it that the Planholder has died or is
legally incapacitated. Upon termination of a Plan by the Transfer Agent or
the Fund, shares that have not been redeemed will be held in uncertificated
form in the name of the Planholder. The account will continue as a
dividend-reinvestment, uncertificated account unless and until proper
instructions are received from the Planholder, his or her executor or
guardian, or another authorized person.

      If the Transfer Agent ceases to act as transfer agent for the Fund, the
Planholder will be deemed to have appointed any successor transfer agent to
act as agent in administering the plan.

How to Exchange Shares

As stated in the Prospectus, shares of a particular class of Oppenheimer
funds having more than one class of shares may be exchanged only for shares
of the same class of other Oppenheimer funds. Shares of Oppenheimer funds
that have a single class without a class designation are deemed "Class A"
shares for this purpose. You can obtain a current list showing which funds
offer which classes of shares by calling the Distributor.

o     All of the Oppenheimer funds currently offer Class A, B, C, N and Y
      shares with the following exceptions:

   The following funds only offer Class A shares:
   Centennial California Tax Exempt Trust    Centennial New York Tax Exempt
                                             Trust
   Centennial Government Trust               Centennial Tax Exempt Trust
   Centennial Money Market Trust             Oppenheimer Money Market Fund,
                                             Inc.


   The following funds do not offer Class N shares:

   Oppenheimer AMT-Free Municipals           Oppenheimer New Jersey Municipal
                                             Fund
   Oppenheimer AMT-Free New York             Oppenheimer Principal Protected Main
   Municipals                                Street Fund II
   Oppenheimer California Municipal Fund     Oppenheimer Pennsylvania Municipal

                                             Fund

   Oppenheimer International Value Fund      Oppenheimer Rochester National
                                             Municipals
   Oppenheimer Limited Term California       Limited Term New York Municipal Fund
   Municipal Fund
   Oppenheimer Money Market Fund, Inc.       Oppenheimer Senior Floating Rate Fund
   Oppenheimer Limited Term Municipal        Rochester Fund Municipals
   Fund


   The following funds do not offer Class Y shares:

   Limited Term New York Municipal Fund     Oppenheimer International Small Company
                                            Fund
   Oppenheimer AMT-Free Municipals          Oppenheimer Limited Term Municipal Fund
   Oppenheimer AMT-Free New York Municipals Oppenheimer New Jersey Municipal Fund
   Oppenheimer Balanced Fund                Oppenheimer Pennsylvania Municipal Fund
   Oppenheimer California Municipal Fund    Oppenheimer Principal Protected Main
                                            Street Fund
   Oppenheimer Capital Income Fund          Oppenheimer Principal Protected Main
                                            Street Fund II
   Oppenheimer Cash Reserves                Oppenheimer Principal Protected Main
                                            Street Fund III
   Oppenheimer Champion Income Fund         Oppenheimer Quest Capital Value Fund,
                                            Inc.
   Oppenheimer Convertible Securities Fund  Oppenheimer Quest International Value
                                            Fund, Inc.
   Oppenheimer Disciplined Allocation Fund  Oppenheimer Rochester National Municipals
   Oppenheimer Developing Markets Fund      Oppenheimer Senior Floating Rate Fund
   Oppenheimer Gold & Special Minerals Fund Oppenheimer Small Cap Value Fund
   Oppenheimer International Growth Fund    Oppenheimer Total Return Bond Fund




o     Oppenheimer Money Market Fund, Inc. only offers Class A and Class Y
      shares.
o     Class Y shares of Oppenheimer Real Asset Fund may not be exchanged for
      shares of any other fund.
o     Class B, Class C and Class N shares of Oppenheimer Cash Reserves are
      generally available only by exchange from the same class of shares of
      other Oppenheimer funds or through OppenheimerFunds-sponsored 401(k)
      plans.
o     Class M shares of Oppenheimer Convertible Securities Fund may be
      exchanged only for Class A shares of other Oppenheimer funds. They may
      not be acquired by exchange of shares of any class of any other
      Oppenheimer funds except Class A shares of Oppenheimer Money Market
      Fund or Oppenheimer Cash Reserves acquired by exchange of Class M
      shares.
   o  Class A shares of Oppenheimer funds may be exchanged at net asset value
      for shares of any money market fund offered by the Distributor. Shares
      of any money market fund purchased without a sales charge may be
      exchanged for shares of Oppenheimer funds offered with a sales charge
      upon payment of the sales charge. They may also be used to purchase
      shares of Oppenheimer funds subject to an early withdrawal charge or
      contingent deferred sales charge.
o     Shares of the Fund acquired by reinvestment of dividends or
      distributions from any of the other Oppenheimer funds or from any unit
      investment trust for which reinvestment arrangements have been made
      with the Distributor may be exchanged at net asset value for shares of
      any of the Oppenheimer funds.
o     Shares of Oppenheimer Principal Protected Main Street Fund may be
      exchanged at net asset value for shares of any of the Oppenheimer
      funds.  However, shareholders are not permitted to exchange shares of
      other Oppenheimer funds for shares of Oppenheimer Principal Protected
      Main Street Fund until after the expiration of the warranty period
      (8/5/2010).
o     Shares of Oppenheimer Principal Protected Main Street Fund II may be
      exchanged at net asset value for shares of any of the Oppenheimer
      funds. However, shareholders are not permitted to exchange shares of
      other Oppenheimer funds for shares of Oppenheimer Principal Protected
      Main Street Fund II until after the expiration of the warranty period
      (3/3/2011).
o     Shares of Oppenheimer Principal Protected Main Street Fund III may be
      exchanged at net asset value for shares of any of the Oppenheimer
      funds. However, shareholders are not permitted to exchange shares of
      other Oppenheimer funds for shares of Oppenheimer Principal Protected
      Main Street Fund III until after the expiration of the warranty period
      (12/06/2011).

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

      |X|   How Exchanges Affect Contingent Deferred Sales Charges. No
contingent deferred sales charge is imposed on exchanges of shares of any
class purchased subject to a contingent deferred sales charge, with the
following exceptions:

o     When Class A shares of any Oppenheimer fund (other than Rochester
National Municipals and Rochester Fund Municipals) acquired by exchange of
Class A shares of any Oppenheimer fund purchased subject to a Class A
contingent deferred sales charge are redeemed within 18 months measured from
the beginning of the calendar month of the initial purchase of the exchanged
Class A shares, the Class A contingent deferred sales charge is imposed on
the redeemed shares.

o     When Class A shares of Rochester National Municipals and Rochester Fund
Municipals acquired by exchange of Class A shares of any Oppenheimer fund
purchased subject to a Class A contingent deferred sales charge are redeemed
within 24 months of the beginning of the calendar month of the initial
purchase of the exchanged Class A shares, the Class A contingent deferred
sales charge is imposed on the redeemed shares.

o     If any Class A shares of another Oppenheimer fund that are exchanged
for Class A shares of Oppenheimer Senior Floating Rate Fund are subject to
the Class A contingent deferred sales charge of the other Oppenheimer fund at
the time of exchange, the holding period for that Class A contingent deferred
sales charge will carry over to the Class A shares of Oppenheimer Senior
Floating Rate Fund acquired in the exchange. The Class A shares of
Oppenheimer Senior Floating Rate Fund acquired in that exchange will be
subject to the Class A Early Withdrawal Charge of Oppenheimer Senior Floating
Rate Fund if they are repurchased before the expiration of the holding period.

o     When Class A shares of Oppenheimer Cash Reserves and Oppenheimer Money
Market Fund, Inc. acquired by exchange of Class A shares of any Oppenheimer
fund purchased subject to a Class A contingent deferred sales charge are
redeemed within the Class A holding period of the fund from which the shares
were exchanged, the Class A contingent deferred sales charge of the fund from
which the shares were exchanged is imposed on the redeemed shares.


          Except with respect to the Class B shares described in the next two
paragraphs, the contingent deferred sales charge is imposed on Class B shares
acquired by exchange if they are redeemed within six years of the initial
purchase of the exchanged Class B shares.

o     With respect to Class B shares of Limited-Term Government Fund, Limited
Term Municipal Fund, Limited Term New York Municipal Fund and Oppenheimer
Senior Floating Rate Fund, the Class B contingent deferred sales charge is
imposed on the acquired shares if they are redeemed within five years of the
initial purchase of the exchanged Class B shares.

o     With respect to Class B shares of Cash Reserves that were acquired
through the exchange of Class B shares initially purchased in the Oppenheimer
Capital Preservation Fund, the Class B contingent deferred sales charge is
imposed on the acquired shares if they are redeemed within five years of that
initial purchase.


o     With respect to Class C shares, the Class C contingent deferred sales
charge is imposed on Class C shares acquired by exchange if they are redeemed
within 12 months of the initial purchase of the exchanged Class C shares.

o     With respect to Class N shares, a 1% contingent deferred sales charge
will be imposed if the retirement plan (not including IRAs and 403(b) plans)
is terminated or Class N shares of all Oppenheimer funds are terminated as an
investment option of the plan and Class N shares are redeemed within 18
months after the plan's first purchase of Class N shares of any Oppenheimer
fund or with respect to an individual retirement plan or 403(b) plan, Class N
shares are redeemed within 18 months of the plan's first purchase of Class N
shares of any Oppenheimer fund.

o     When Class B, Class C or Class N shares are redeemed to effect an
exchange, the priorities described in "How To Buy Shares" in the Prospectus
for the imposition of the Class B, Class C or Class N contingent deferred
sales charge will be followed in determining the order in which the shares
are exchanged. Before exchanging shares, shareholders should take into
account how the exchange may affect any contingent deferred sales charge that
might be imposed in the subsequent redemption of remaining shares.

      Shareholders owning shares of more than one class must specify which
class of shares they wish to exchange.

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

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

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

      When you exchange some or all of your shares from one fund to another,
any special account feature such as an Asset Builder Plan or Automatic
Withdrawal Plan will be switched to the new fund account unless you tell the
Transfer Agent not to do so. However, special redemption and exchange
features such as Automatic Exchange Plans and Automatic Withdrawal Plans
cannot be switched to an account in Oppenheimer Senior Floating Rate Fund.

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

      The different Oppenheimer funds available for exchange have different
investment objectives, policies and risks. A shareholder should assure that
the fund selected is appropriate for his or her investment and should be
aware of the tax consequences of an exchange. For federal income tax
purposes, an exchange transaction is treated as a redemption of shares of one
fund and a purchase of shares of another. "Reinvestment Privilege," above,
discusses some of the tax consequences of reinvestment of redemption proceeds
in such cases. The Fund, the Distributor, and the Transfer Agent are unable
to provide investment, tax or legal advice to a shareholder in connection
with an exchange request or any other investment transaction.

Dividends, Capital Gains and Taxes

Dividends and Distributions. Dividends will be payable on shares held of
record at the time of the previous determination of net asset value, or as
otherwise described in "How to Buy Shares."  Daily dividends will not be
declared or paid on newly purchased shares until such time as Federal Funds
(funds credited to a member bank's account at the Federal Reserve Bank) are
available from the purchase payment for such shares. Normally, purchase
checks received from investors are converted to Federal Funds on the next
business day. Shares purchased through dealers or brokers normally are paid
for by the third business day following the placement of the purchase order.

      Shares redeemed through the regular redemption procedure will be paid
dividends through and including the day on which the redemption request is
received by the Transfer Agent in proper form. Dividends will be declared on
shares repurchased by a dealer or broker for three business days following
the trade date (that is, up to and including the day prior to settlement of
the repurchase). If all shares in an account are redeemed, all dividends
accrued on shares of the same class in the account will be paid together with
the redemption proceeds.

      The Fund's practice of attempting to pay dividends on Class A shares at
a constant level requires the Manager to monitor the Fund's portfolio and, if
necessary, to select higher-yielding securities when it is deemed appropriate
to seek income at the level needed to meet the target. Those securities must
be within the Fund's investment parameters, however. The Fund expects to pay
dividends at a targeted level from its net investment income and other
distributable income without any impact on the net asset values per share.

      Dividends, distributions and proceeds of the redemption of Fund shares
represented by checks returned to the Transfer Agent by the Postal Service as
undeliverable will be invested in shares of Oppenheimer Money Market Fund,
Inc. Reinvestment will be made as promptly as possible after the return of
such checks to the Transfer Agent, to enable the investor to earn a return on
otherwise idle funds. Unclaimed accounts may be subject to state escheatment
laws, and the Fund and the Transfer Agent will not be liable to shareholders
or their representatives for compliance with those laws in good faith.

      The amount of a distribution paid on a class of shares may vary from
time to time depending on market conditions, the composition of the Fund's
portfolio, and expenses borne by the Fund or borne separately by a class.
Dividends are calculated in the same manner, at the same time and on the same
day for shares of each class. However, dividends on Class B and Class C
shares are expected to be lower than dividends on Class A shares. That is due
to the effect of the asset-based sales charge on Class B and Class C shares.
Those dividends will also differ in amount as a consequence of any difference
in net asset value among the different classes of shares.

Tax Status of the Fund's Dividends, Distributions and Redemptions of Shares.
The federal tax treatment of the Fund's distributions is briefly highlighted
in the Prospectus. The following is only a summary of certain additional tax
considerations generally affecting the Fund and its shareholders.
      The tax discussion in the Prospectus and this Statement of Additional
Information is based on tax law in effect on the date of the Prospectus and
this Statement of Additional Information. Those laws and regulations may be
changed by legislative, judicial, or administrative action, sometimes with
retroactive effect. State and local tax treatment of exempt-interest
dividends and potential capital gain distributions from regulated investment
companies may differ from the treatment under the Internal Revenue Code
described below. Potential purchasers of shares of the Fund are urged to
consult their tax advisers with specific reference to their own tax
circumstances as well as the consequences of federal, state and local tax
rules affecting an investment in the Fund.

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

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

      To qualify as a regulated investment company, the Fund must distribute
at least 90% of its investment company taxable income (in brief, net
investment income and the excess of net short-term capital gain over net
long-term capital loss) and at least 90% of its net tax-exempt income for the
taxable year. The Fund must also satisfy certain other requirements of the
Internal Revenue Code, some of which are described below.  Distributions by
the Fund made during the taxable year or, under specified circumstances,
within 12 months after the close of the taxable year, will be considered
distributions of income and gains for the taxable year and will therefore
count toward satisfaction of the above-mentioned requirement.

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

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

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

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

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

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

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


      Distributions in excess of the Fund's earnings and profits would
constitute a return of capital and would first reduce the adjusted tax basis
of a holder's shares and, after such adjusted tax basis is reduced to zero,
would constitute capital gains to such a holder (assuming the shares are held
as a capital asset).


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

      In any year in which the Fund qualifies as a regulated investment
company under the Internal Revenue Code, the Fund will also be exempt from
New York corporate income and franchise taxes. It will also be qualified
under New York law to pay exempt-interest dividends that will be exempt from
New York State and New York City personal income taxes. That exemption
applies to the extent that the Fund's distributions are attributable to
interest on New York municipal securities. Distributions from the Fund
attributable to income from sources other than New York municipal securities
and U.S. government obligations will generally be subject to New York State
and New York City personal income taxes as ordinary income.

      Distributions by the Fund from investment income and long- and
short-term capital gains will generally not be excludable from taxable net
investment income in determining New York corporate franchise tax and New
York City general corporation tax for corporate shareholders of the Fund.
Additionally, certain distributions paid to corporate shareholders of the
Fund may be includable in income subject to the New York alternative minimum
tax.

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

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

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

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

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

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

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

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


      If the ordinary income dividends from the Fund are effectively
                                                     ---
connected with the conduct of a U.S. trade or business, then the foreign
person may claim an exemption from the U.S. tax described above provided the
Fund obtains a properly completed and signed Certificate of Foreign Status.
If the foreign person fails to provide a certification of his/her foreign
status, the Fund will be required to withhold U.S. tax at a rate of 28% on
ordinary income dividends (not including "exempt-interest dividends"),
capital gains distributions (including short-term and long-term) and the
proceeds of the redemption of shares, paid to any foreign person. Any tax
withheld (in this situation) by the Fund is remitted by the Fund to the U.S.
Treasury and is identified in reports mailed to shareholders in January of
each year with a copy sent to the IRS.


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

Dividend Reinvestment in Another Fund. Shareholders of the Fund may elect to
reinvest all dividends and/or capital gains distributions in shares of the
same class of any of the other Oppenheimer funds listed above. Reinvestment
will be made without sales charge at the net asset value per share in effect
at the close of business on the payable date of the dividend or distribution.
To elect this option, the shareholder must notify the Transfer Agent in
writing and must have an existing account in the fund selected for
reinvestment. Otherwise the shareholder first must obtain a prospectus for
that fund and an application from the Distributor to establish an account.
Dividends and/or distributions from shares of certain other Oppenheimer funds
(other than Oppenheimer Cash Reserves) may be invested in shares of this Fund
on the same basis.


Additional Information About the Fund

The Distributor. The Fund's shares are sold through dealers, brokers and
other financial institutions that have a sales agreement with
OppenheimerFunds Distributor, Inc., a subsidiary of the Manager that acts as
the Fund's Distributor. The Distributor also distributes shares of the other
Oppenheimer funds and is sub-distributor for funds managed by a subsidiary of
the Manager.

The Transfer Agent. OppenheimerFunds Services, the Fund's Transfer Agent, is
a division of the Manager. It is responsible for maintaining the Fund's
shareholder registry and shareholder accounting records, and for paying
dividends and distributions to shareholders. It also handles shareholder
servicing and administrative functions. It serves as the Transfer Agent for
an annual per account fee. It also acts as shareholder servicing agent for
the other Oppenheimer funds.  Shareholders should direct inquiries about
their accounts to the Transfer Agent at the address and toll-free numbers
shown on the back cover.

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

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

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF ROCHESTER FUND MUNICIPALS:

We have audited the accompanying statement of assets and liabilities of
Rochester Fund Municipals, including the statement of investments, as of
December 31, 2004, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended. 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 the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
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, 2004, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. 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
Rochester Fund Municipals as of December 31, 2004, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the five-year period then ended, in conformity with U.S. generally
accepted accounting principles.


KPMG LLP

Denver, Colorado
February 8, 2005






STATEMENT OF INVESTMENTS  December 31, 2004
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
 MUNICIPAL BONDS AND NOTES--100.4%
------------------------------------------------------------------------------------------------------------
NEW YORK--87.7%
$     125,000    Albany County Airport Authority                     5.500%      12/15/2019  $       134,675
------------------------------------------------------------------------------------------------------------
      635,000    Albany County IDA (Albany College of Pharmacy)      5.375       12/01/2024          658,692
------------------------------------------------------------------------------------------------------------
    1,700,000    Albany County IDA (Albany College of Pharmacy)      5.625       12/01/2034        1,771,264
------------------------------------------------------------------------------------------------------------
      885,000    Albany Hsg. Authority (Lark Drive)                  5.500       12/01/2028          910,975
------------------------------------------------------------------------------------------------------------
    1,420,000    Albany IDA (Albany Medical Center)                  6.000       05/01/2019        1,437,736
------------------------------------------------------------------------------------------------------------
    2,460,000    Albany IDA (Albany Medical Center)                  6.000       05/01/2029        2,387,233
------------------------------------------------------------------------------------------------------------
      400,000    Albany IDA (Albany Municipal Golf Course
                 Clubhouse)                                          7.500       05/01/2012          404,864
------------------------------------------------------------------------------------------------------------
      915,000    Albany IDA (Albany Rehab.)                          8.375       06/01/2023          953,759
------------------------------------------------------------------------------------------------------------
    4,005,000    Albany IDA (Charitable Leadership)                  5.750       07/01/2026        4,125,671
------------------------------------------------------------------------------------------------------------
    3,730,000    Albany IDA (Daughters of Sarah Nursing Home)        5.375       10/20/2030        3,966,258
------------------------------------------------------------------------------------------------------------
    2,750,000    Albany IDA (Hampton Plaza)                          6.250       03/15/2018        2,822,518
------------------------------------------------------------------------------------------------------------
    1,610,000    Albany IDA (MARA Mansion Rehab.)                    6.500       02/01/2023        1,612,125
------------------------------------------------------------------------------------------------------------
    1,285,000    Albany IDA (Sage Colleges)                          5.250       04/01/2019        1,321,635
------------------------------------------------------------------------------------------------------------
    1,760,000    Albany IDA (Sage Colleges)                          5.300       04/01/2029        1,777,653
------------------------------------------------------------------------------------------------------------
      125,000    Albany IDA (University Heights-Albany Pharmacy)     6.750       12/01/2029          149,799
------------------------------------------------------------------------------------------------------------
    1,770,000    Albany Parking Authority                            0.000 1     11/01/2017          955,393
------------------------------------------------------------------------------------------------------------
    2,510,000    Albany Parking Authority                            5.625       07/15/2020        2,699,681
------------------------------------------------------------------------------------------------------------
    2,000,000    Albany Parking Authority                            5.625       07/15/2025        2,124,740
------------------------------------------------------------------------------------------------------------
    5,700,000    Allegany County IDA (Houghton College)              5.250       01/15/2024        5,841,246
------------------------------------------------------------------------------------------------------------
      920,000    Amherst IDA (Asbury Pointe)                         5.800       02/01/2015          920,147
------------------------------------------------------------------------------------------------------------
       10,000    Amherst IDA (Asbury Pointe)                         6.000       02/01/2023            9,986
------------------------------------------------------------------------------------------------------------
    3,000,000    Amherst IDA (Asbury Pointe)                         6.000       02/01/2029        3,027,930
------------------------------------------------------------------------------------------------------------
    2,880,000    Amherst IDA (Daemen College)                        6.000       10/01/2021        3,057,725
------------------------------------------------------------------------------------------------------------
   10,055,000    Amherst IDA (Daemen College)                        6.125       10/01/2031       10,531,305
------------------------------------------------------------------------------------------------------------
    3,000,000    Appleridge Retirement Community                     5.750       09/01/2041        3,298,440
------------------------------------------------------------------------------------------------------------
      800,000    Babylon IDA (WWH Ambulance)                         7.375       09/15/2008          815,192
------------------------------------------------------------------------------------------------------------
      700,000    Battery Park City Authority                        10.000       06/01/2023          717,934
------------------------------------------------------------------------------------------------------------
      370,000    Bethany Retirement Home                             7.450       02/01/2024          378,965
------------------------------------------------------------------------------------------------------------
      810,000    Bethlehem Water System                              5.250       03/01/2018          875,707
------------------------------------------------------------------------------------------------------------
      855,000    Bethlehem Water System                              5.375       03/01/2019          931,001
------------------------------------------------------------------------------------------------------------
      905,000    Bethlehem Water System                              5.375       03/01/2020          981,862
------------------------------------------------------------------------------------------------------------
      955,000    Bethlehem Water System                              5.500       03/01/2021        1,042,898
------------------------------------------------------------------------------------------------------------
      505,000    Bethlehem Water System                              5.500       03/01/2022          549,879
------------------------------------------------------------------------------------------------------------
    1,065,000    Blauvelt Volunteer Fire Company                     6.250       10/15/2017        1,051,336
------------------------------------------------------------------------------------------------------------
      900,000    Bleeker Terrace HDC                                 8.750       07/01/2007          907,407
------------------------------------------------------------------------------------------------------------
      580,000    Brookhaven IDA (Brookhaven Memorial Hospital)       8.250       11/15/2030          610,792
------------------------------------------------------------------------------------------------------------
    6,830,000    Brookhaven IDA (Dowling College)                    6.750       03/01/2023        6,830,956
------------------------------------------------------------------------------------------------------------
    1,250,000    Brookhaven IDA (St. Joseph's College)               6.000       12/01/2020        1,313,563
------------------------------------------------------------------------------------------------------------
    2,425,000    Brookhaven IDA (Stony Brook Foundation)             6.500       11/01/2020        2,555,465
------------------------------------------------------------------------------------------------------------
    3,030,000    Broome County IDA (University Plaza)                5.000       08/01/2036        3,041,999


                         19 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,000,000    Broome County IDA (University Plaza)                5.100%      08/01/2030  $     1,006,970
------------------------------------------------------------------------------------------------------------
    1,250,000    Broome County IDA (University Plaza)                5.100       08/01/2036        1,255,688
------------------------------------------------------------------------------------------------------------
    3,000,000    Broome County IDA (University Plaza)                5.200       08/01/2030        3,040,560
------------------------------------------------------------------------------------------------------------
    4,450,000    Broome County IDA (University Plaza)                5.200       08/01/2036        4,498,016
------------------------------------------------------------------------------------------------------------
    1,000,000    Canton Human Services Initiatives                   5.700       09/01/2024        1,071,990
------------------------------------------------------------------------------------------------------------
    1,260,000    Canton Human Services Initiatives                   5.750       09/01/2032        1,328,884
------------------------------------------------------------------------------------------------------------
      600,000    Capital District Youth Center                       6.000       02/01/2017          633,852
------------------------------------------------------------------------------------------------------------
      500,000    Carnegie Redevelopment Corp. 2                      7.000       09/01/2021          501,350
------------------------------------------------------------------------------------------------------------
      570,000    Cattaraugus County IDA
                 (Jamestown Community College)                       6.400       07/01/2019          623,717
------------------------------------------------------------------------------------------------------------
    1,000,000    Cattaraugus County IDA
                 (Jamestown Community College)                       6.500       07/01/2030        1,077,820
------------------------------------------------------------------------------------------------------------
    4,295,000    Cattaraugus County IDA (Olean General Hospital)     5.250       08/01/2023        4,461,990
------------------------------------------------------------------------------------------------------------
    1,465,000    Cattaraugus County IDA (St. Bonaventure
                 University)                                         5.450       09/15/2019        1,522,501
------------------------------------------------------------------------------------------------------------
    2,900,000    Chautauqua County IDA
                 (Jamestown Community College)                       5.250       08/01/2028        2,992,481
------------------------------------------------------------------------------------------------------------
      825,000    Chautauqua County IDA (Jamestown Devel. Corp.)      7.125       11/01/2008          856,556
------------------------------------------------------------------------------------------------------------
    3,395,000    Chautauqua County IDA (Jamestown Devel. Corp.)      7.125       11/01/2018        3,531,004
------------------------------------------------------------------------------------------------------------
    2,500,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2029        2,518,475
------------------------------------------------------------------------------------------------------------
      915,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2029          921,762
------------------------------------------------------------------------------------------------------------
    1,000,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2034        1,002,410
------------------------------------------------------------------------------------------------------------
    1,455,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2034        1,458,507
------------------------------------------------------------------------------------------------------------
    1,290,000    Chemung County IDA (Hathorn Redevel. Company)       4.850       07/01/2023        1,307,944
------------------------------------------------------------------------------------------------------------
    1,515,000    Chemung County IDA (Hathorn Redevel. Company)       5.000       07/01/2033        1,524,681
------------------------------------------------------------------------------------------------------------
    6,880,000    Chemung County IDA (St. Joseph's Hospital)          6.000       01/01/2013        6,508,205
------------------------------------------------------------------------------------------------------------
    7,060,000    Chemung County IDA (St. Joseph's Hospital)          6.350       01/01/2013        6,828,503
------------------------------------------------------------------------------------------------------------
    4,910,000    Chemung County IDA (St. Joseph's Hospital)          6.500       01/01/2019        4,634,696
------------------------------------------------------------------------------------------------------------
    1,960,000    Clifton Springs Hospital & Clinic                   7.650       01/01/2012        1,986,127
------------------------------------------------------------------------------------------------------------
    3,065,000    Clifton Springs Hospital & Clinic                   8.000       01/01/2020        3,093,811
------------------------------------------------------------------------------------------------------------
       35,000    Cohoes GO                                           6.200       03/15/2012           36,891
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.200       03/15/2013           26,249
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.250       03/15/2014           26,169
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.250       03/15/2015           26,121
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.250       03/15/2016           26,072
------------------------------------------------------------------------------------------------------------
    1,855,000    Columbia County IDA (Berkshire Farms)               7.500       12/15/2014        1,914,453
------------------------------------------------------------------------------------------------------------
    3,300,000    Corinth IDA (International Paper Company)           5.750       02/01/2022        3,426,093
------------------------------------------------------------------------------------------------------------
    5,370,000    Cortland County IDA (Cortland Memorial Hospital)    5.250       07/01/2032        5,563,589
------------------------------------------------------------------------------------------------------------
      155,000    Dutchess County IDA
                 (Astor Learning Center Civic Facility)              5.150       11/01/2024          161,657
------------------------------------------------------------------------------------------------------------
      120,000    Dutchess County IDA (Bard College)                  5.750       08/01/2030          128,669
------------------------------------------------------------------------------------------------------------
    3,500,000    Dutchess County IDA (Bard College)                  7.000       11/01/2017        3,548,090
------------------------------------------------------------------------------------------------------------
    1,000,000    Dutchess County IDA (St. Francis Hospital)          7.500       03/01/2029          998,630


                         20 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   2,505,000    Dutchess County IDA (Vassar Brothers Hospital)      6.500%      04/01/2020  $     2,736,312
------------------------------------------------------------------------------------------------------------
    5,615,000    Dutchess County IDA (Vassar Brothers Hospital)      6.500       04/01/2030        6,065,435
------------------------------------------------------------------------------------------------------------
       25,000    Dutchess County IDA (Vassar College)                5.350       09/01/2040           26,224
------------------------------------------------------------------------------------------------------------
    1,000,000    Dutchess County Water & Wastewater Authority        0.000 1     06/01/2027          335,260
------------------------------------------------------------------------------------------------------------
    3,350,000    East Rochester Hsg. Authority (Episcopal
                 Senior Hsg.)                                        7.750       10/01/2032        3,362,027
------------------------------------------------------------------------------------------------------------
    1,355,000    East Rochester Hsg. Authority (Gates
                 Senior Hsg.)                                        6.125       04/20/2043        1,499,511
------------------------------------------------------------------------------------------------------------
    1,400,000    East Rochester Hsg. Authority
                 (Genesee Valley Nursing Home)                       5.200       12/20/2024        1,487,402
------------------------------------------------------------------------------------------------------------
    2,665,000    East Rochester Hsg. Authority
                 (Jefferson Park Apartments)                         6.750       03/01/2030        2,566,848
------------------------------------------------------------------------------------------------------------
    2,000,000    East Rochester Hsg. Authority (Linden Knoll)        5.350       02/01/2038        2,026,600
------------------------------------------------------------------------------------------------------------
    4,095,000    East Rochester Hsg. Authority (St. John's
                 Meadows)                                            5.950       08/01/2027        4,270,594
------------------------------------------------------------------------------------------------------------
      525,000    Erie County IDA (Air Cargo)                         8.250       10/01/2007          526,979
------------------------------------------------------------------------------------------------------------
    2,380,000    Erie County IDA (Air Cargo)                         8.500       10/01/2015        2,390,282
------------------------------------------------------------------------------------------------------------
    1,760,000    Erie County IDA (DePaul Properties)                 5.750       09/01/2028        1,384,821
------------------------------------------------------------------------------------------------------------
    3,055,000    Erie County IDA (DePaul Properties)                 6.500       09/01/2018        2,869,287
------------------------------------------------------------------------------------------------------------
   11,310,000    Erie County IDA (Medaille College)                  7.625       04/01/2035       11,675,879
------------------------------------------------------------------------------------------------------------
    3,515,000    Erie County IDA (Medaille College)                  8.250       11/01/2026        3,680,170
------------------------------------------------------------------------------------------------------------
    2,340,000    Erie County IDA (Mercy Hospital)                    6.250       06/01/2010        2,222,485
------------------------------------------------------------------------------------------------------------
       25,000    Erie County IDA (The Episcopal Church Home)         5.875       02/01/2018           25,743
------------------------------------------------------------------------------------------------------------
    9,600,000    Erie County IDA (The Episcopal Church Home)         6.000       02/01/2028        9,819,648
------------------------------------------------------------------------------------------------------------
      620,000    Erie County Tobacco Asset Securitization Corp.      6.125       07/15/2030          600,563
------------------------------------------------------------------------------------------------------------
   10,560,000    Erie County Tobacco Asset Securitization Corp.      6.250       07/15/2040       10,302,442
------------------------------------------------------------------------------------------------------------
       90,000    Erie County Tobacco Asset Securitization Corp.      6.500       07/15/2032           90,234
------------------------------------------------------------------------------------------------------------
   10,120,000    Erie County Tobacco Asset Securitization
                 Corp. RITES 2                                       9.519 3     07/15/2040        9,626,245
------------------------------------------------------------------------------------------------------------
   22,440,000    Erie County Tobacco Asset Securitization
                 Corp. RITES 2                                      10.519 3     07/15/2040       23,326,829
------------------------------------------------------------------------------------------------------------
    4,440,000    Essex County IDA (International Paper Company)      5.200       03/01/2028        4,430,765
------------------------------------------------------------------------------------------------------------
    1,850,000    Essex County IDA (International Paper Company)      5.500       08/15/2022        1,878,897
------------------------------------------------------------------------------------------------------------
    1,625,000    Essex County IDA (International Paper Company)      5.500       10/01/2026        1,643,753
------------------------------------------------------------------------------------------------------------
      310,000    Essex County IDA (International Paper Company)      5.800       12/01/2019          319,895
------------------------------------------------------------------------------------------------------------
    2,300,000    Essex County IDA (International Paper Company)      6.450       11/15/2023        2,487,473
------------------------------------------------------------------------------------------------------------
    5,000,000    Essex County IDA (Moses Ludington Nursing Home)     6.375       02/01/2050        5,545,400
------------------------------------------------------------------------------------------------------------
      225,000    Essex County IDA (Moses Ludington Nursing Home)     9.000       02/01/2008          227,212
------------------------------------------------------------------------------------------------------------
    5,680,000    Franklin County IDA (Adirondack Medical Center)     5.500       12/01/2029        6,002,056
------------------------------------------------------------------------------------------------------------
      430,000    Glen Cove IDA (SLCD)                                6.875       07/01/2008          431,810
------------------------------------------------------------------------------------------------------------
    3,775,000    Glen Cove IDA (SLCD)                                7.375       07/01/2023        3,891,270
------------------------------------------------------------------------------------------------------------
    1,355,000    Green Island Power Authority                        5.125       12/15/2024        1,367,588
------------------------------------------------------------------------------------------------------------
    2,795,000    Green Island Power Authority                        6.000       12/15/2020        2,966,166
------------------------------------------------------------------------------------------------------------
    1,695,000    Green Island Power Authority                        6.000       12/15/2025        1,767,241
------------------------------------------------------------------------------------------------------------
      840,000    Hempstead GO                                        5.000       07/01/2020          859,782
------------------------------------------------------------------------------------------------------------
    1,025,000    Hempstead GO                                        5.000       07/01/2021        1,044,803
------------------------------------------------------------------------------------------------------------
    1,270,000    Hempstead GO                                        5.000       07/01/2022        1,292,111


                         21 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   2,500,000    Hempstead IDA (Adelphi University)                  5.500%      06/01/2032  $     2,661,100
------------------------------------------------------------------------------------------------------------
    3,735,000    Hempstead IDA (Bristal Gardens)                     7.500       05/01/2046        3,732,498
------------------------------------------------------------------------------------------------------------
    5,175,000    Hempstead IDA (Bristal Gardens)                     7.500       05/01/2046        5,255,678
------------------------------------------------------------------------------------------------------------
    5,175,000    Hempstead IDA (Bristal Gardens)                     7.500       05/01/2046        5,213,502
------------------------------------------------------------------------------------------------------------
    7,250,000    Hempstead IDA (Bristal Gardens) 6                   7.500       05/01/2046        7,363,028
------------------------------------------------------------------------------------------------------------
      345,000    Hempstead IDA (Dentaco Corp.)                       7.250       11/01/2012          352,880
------------------------------------------------------------------------------------------------------------
    1,270,000    Hempstead IDA (Dentaco Corp.)                       8.250       11/01/2025        1,321,041
------------------------------------------------------------------------------------------------------------
    4,140,000    Hempstead IDA (Engel Burman Senior Hsg.)            6.250       11/01/2010        4,148,528
------------------------------------------------------------------------------------------------------------
   18,825,000    Hempstead IDA (Engel Burman Senior Hsg.)            6.750       11/01/2024       18,869,427
------------------------------------------------------------------------------------------------------------
    2,435,000    Hempstead IDA (Franklin Hospital
                 Medical Center)                                     5.750       11/01/2008        2,409,286
------------------------------------------------------------------------------------------------------------
    9,375,000    Hempstead IDA (Franklin Hospital
                 Medical Center)                                     6.375       11/01/2018        9,134,813
------------------------------------------------------------------------------------------------------------
    9,540,000    Hempstead IDA (Franklin Hospital
                 Medical Center)                                     7.750       11/01/2022       10,214,096
------------------------------------------------------------------------------------------------------------
    2,500,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044        2,548,025
------------------------------------------------------------------------------------------------------------
    5,700,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044        5,700,798
------------------------------------------------------------------------------------------------------------
    4,770,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044        4,861,632
------------------------------------------------------------------------------------------------------------
   12,530,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044       12,770,701
------------------------------------------------------------------------------------------------------------
    6,355,000    Hempstead IDA (South Shore Y JCC)                   6.750       11/01/2024        6,384,869
------------------------------------------------------------------------------------------------------------
    8,110,000    Herkimer County IDA (Burrows Paper) 2               8.000       01/01/2009        7,982,105
------------------------------------------------------------------------------------------------------------
    1,285,000    Herkimer County IDA (College Foundation)            6.400       11/01/2020        1,376,299
------------------------------------------------------------------------------------------------------------
    2,000,000    Herkimer County IDA (College Foundation)            6.500       11/01/2030        2,102,980
------------------------------------------------------------------------------------------------------------
    1,000,000    Herkimer County IDA
                 (Herkimer County College Foundation)                6.250       08/01/2034        1,048,830
------------------------------------------------------------------------------------------------------------
      295,000    Herkimer Hsg. Authority                             7.150       03/01/2011          297,882
------------------------------------------------------------------------------------------------------------
      990,000    Hudson IDA (Have, Inc.)                             8.125       12/01/2017          992,732
------------------------------------------------------------------------------------------------------------
    1,255,000    Hudson IDA (Hudson Fabrics)                         6.750       11/01/2024        1,263,785
------------------------------------------------------------------------------------------------------------
      145,000    Huntington Hsg. Authority (GJSR)                    5.875       05/01/2019          142,441
------------------------------------------------------------------------------------------------------------
    1,000,000    Huntington Hsg. Authority (GJSR)                    6.000       05/01/2029          970,420
------------------------------------------------------------------------------------------------------------
    8,500,000    Huntington Hsg. Authority (GJSR)                    6.000       05/01/2039        8,119,540
------------------------------------------------------------------------------------------------------------
      845,000    Islip IDA (Leeway School)                           9.000       08/01/2021          846,318
------------------------------------------------------------------------------------------------------------
   19,065,000    Islip IDA (Southside Hospital Civic Facilities)     7.750       12/01/2022       20,149,417
------------------------------------------------------------------------------------------------------------
    1,315,000    Islip Res Rec, Series E                             5.750       07/01/2021        1,463,043
------------------------------------------------------------------------------------------------------------
    1,000,000    Islip Res Rec, Series E                             5.750       07/01/2023        1,106,820
------------------------------------------------------------------------------------------------------------
    3,000,000    Kenmore Hsg. Authority (SUNY at Buffalo)            5.500       08/01/2024        3,202,110
------------------------------------------------------------------------------------------------------------
    3,000,000    L.I. Power Authority                                5.750       12/01/2024        3,283,170
------------------------------------------------------------------------------------------------------------
    7,905,000    L.I. Power Authority RITES 2                       12.697 3     12/01/2022       10,238,872
------------------------------------------------------------------------------------------------------------
   21,000,000    L.I. Power Authority RITES 2                       12.698 3     12/01/2022       27,200,040
------------------------------------------------------------------------------------------------------------
    3,750,000    L.I. Power Authority RITES 2                       13.162 3     12/01/2026        4,766,250
------------------------------------------------------------------------------------------------------------
    2,915,000    L.I. Power Authority RITES 2                       13.242 3     09/01/2028        3,665,671
------------------------------------------------------------------------------------------------------------
   24,130,000    L.I. Power Authority, Series A                      5.125       09/01/2029       24,716,600
------------------------------------------------------------------------------------------------------------
   44,530,000    L.I. Power Authority, Series A                      5.375       09/01/2025       47,502,378
------------------------------------------------------------------------------------------------------------
   86,300,000    L.I. Power Authority, Series L                      5.375       05/01/2033       89,764,945


                         22 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     100,000    Lowville GO                                         7.200%      09/15/2012  $       123,522
------------------------------------------------------------------------------------------------------------
      100,000    Lowville GO                                         7.200       09/15/2013          124,514
------------------------------------------------------------------------------------------------------------
      100,000    Lowville GO                                         7.200       09/15/2014          125,899
------------------------------------------------------------------------------------------------------------
    3,830,000    Lyons Community Health Initiatives Corp.            5.550       09/01/2024        4,012,193
------------------------------------------------------------------------------------------------------------
    4,410,000    Macleay Hsg. Corp. (Larchmont Woods)                8.500       01/01/2031        4,460,274
------------------------------------------------------------------------------------------------------------
    1,290,000    Madison County IDA (Oneida Healthcare Center)       5.300       02/01/2021        1,365,401
------------------------------------------------------------------------------------------------------------
    5,500,000    Madison County IDA (Oneida Healthcare Center)       5.350       02/01/2031        5,736,170
------------------------------------------------------------------------------------------------------------
       60,000    Middleton IDA (Flanagan Design & Display)           7.000       11/01/2006           61,273
------------------------------------------------------------------------------------------------------------
      690,000    Middleton IDA (Flanagan Design & Display)           7.500       11/01/2018          721,588
------------------------------------------------------------------------------------------------------------
    3,955,000    Middletown IDA (Southwinds Retirement Home)         6.375       03/01/2018        3,711,807
------------------------------------------------------------------------------------------------------------
      375,000    Middletown IDA (YMCA)                               6.250       11/01/2009          357,968
------------------------------------------------------------------------------------------------------------
    1,255,000    Middletown IDA (YMCA)                               7.000       11/01/2019        1,140,632
------------------------------------------------------------------------------------------------------------
      270,000    Monroe County COP                                   8.050       01/01/2011          282,299
------------------------------------------------------------------------------------------------------------
      780,000    Monroe County IDA (Canal Ponds)                     7.000       06/15/2013          795,288
------------------------------------------------------------------------------------------------------------
       50,000    Monroe County IDA (Cloverwood Senior Living)        6.750       05/01/2023           44,078
------------------------------------------------------------------------------------------------------------
    1,395,390    Monroe County IDA (Cottrone Devel.)                 9.500       12/01/2010        1,413,823
------------------------------------------------------------------------------------------------------------
      950,000    Monroe County IDA (Dayton Rogers Manufacturing)     6.100       12/01/2009          912,095
------------------------------------------------------------------------------------------------------------
    2,545,000    Monroe County IDA (DePaul Community Facilities)     5.875       02/01/2028        2,136,019
------------------------------------------------------------------------------------------------------------
    5,545,000    Monroe County IDA (DePaul Community Facilities)     5.950       08/01/2028        4,947,138
------------------------------------------------------------------------------------------------------------
      880,000    Monroe County IDA (DePaul Community Facilities)     6.450       02/01/2014          891,722
------------------------------------------------------------------------------------------------------------
    1,285,000    Monroe County IDA (DePaul Community Facilities)     6.500       02/01/2024        1,300,536
------------------------------------------------------------------------------------------------------------
    4,485,000    Monroe County IDA (DePaul Properties)               6.150       09/01/2021        4,068,702
------------------------------------------------------------------------------------------------------------
    1,000,000    Monroe County IDA
                 (Jewish Home of Rochester Senior Hsg.)              6.875       04/01/2017        1,037,580
------------------------------------------------------------------------------------------------------------
    5,005,000    Monroe County IDA
                 (Jewish Home of Rochester Senior Hsg.)              6.875       04/01/2027        5,174,119
------------------------------------------------------------------------------------------------------------
      190,000    Monroe County IDA (Machine Tool Research)           7.750       12/01/2006          188,573
------------------------------------------------------------------------------------------------------------
      600,000    Monroe County IDA (Machine Tool Research)           8.000       12/01/2011          589,116
------------------------------------------------------------------------------------------------------------
      300,000    Monroe County IDA (Machine Tool Research)           8.500       12/01/2013          292,617
------------------------------------------------------------------------------------------------------------
      820,000    Monroe County IDA (Melles Griot)                    9.500       12/01/2009          830,004
------------------------------------------------------------------------------------------------------------
    1,136,000    Monroe County IDA (Morrell/Morrell)                 7.000       12/01/2007        1,136,216
------------------------------------------------------------------------------------------------------------
    4,330,000    Monroe County IDA (Piano Works)                     7.625       11/01/2016        4,454,964
------------------------------------------------------------------------------------------------------------
    2,890,000    Monroe County IDA (Rochester Institute of
                 Technology)                                         5.375       04/01/2029        2,826,536
------------------------------------------------------------------------------------------------------------
    1,000,000    Monroe County IDA (Southview Towers)                6.125       02/01/2020        1,099,920
------------------------------------------------------------------------------------------------------------
    1,465,000    Monroe County IDA (St. John Fisher College)         5.200       06/01/2019        1,574,113
------------------------------------------------------------------------------------------------------------
    2,190,000    Monroe County IDA (St. John Fisher College)         5.250       06/01/2026        2,312,574
------------------------------------------------------------------------------------------------------------
    3,075,000    Monroe County IDA (St. John Fisher College)         5.375       06/01/2024        3,255,626
------------------------------------------------------------------------------------------------------------
      970,000    Monroe County IDA (Volunteers of America)           5.700       08/01/2018          977,314
------------------------------------------------------------------------------------------------------------
    2,720,000    Monroe County IDA (Volunteers of America)           5.750       08/01/2028        2,627,302
------------------------------------------------------------------------------------------------------------
      345,000    Monroe County IDA (West End Business)               8.000       12/01/2014          351,652
------------------------------------------------------------------------------------------------------------
      170,000    Monroe County IDA (West End Business)               8.000       12/01/2014          173,278
------------------------------------------------------------------------------------------------------------
      515,000    Monroe County IDA (West End Business)               8.000       12/01/2014          525,769


                         23 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,375,000    Monroe County IDA (West End Business)               8.000%      12/01/2014  $     1,407,354
------------------------------------------------------------------------------------------------------------
   12,000,000    Monroe County IDA (Woodlawn Village)                8.550       11/15/2032       13,114,560
------------------------------------------------------------------------------------------------------------
   16,285,000    Monroe County Tobacco Asset Securitization Corp.    6.375       06/01/2035       16,229,631
------------------------------------------------------------------------------------------------------------
    3,000,000    Monroe County Tobacco Asset Securitization
                 Corp. Fixed Receipts                                6.600       06/01/2042        3,027,030
------------------------------------------------------------------------------------------------------------
   15,000,000    Monroe County Tobacco Asset Securitization
                 Corp. RITES 2                                       9.769 3     06/01/2035       14,898,150
------------------------------------------------------------------------------------------------------------
    6,870,000    Monroe County Tobacco Asset Securitization
                 Corp. RITES 2                                      10.384 3     06/01/2042        6,993,729
------------------------------------------------------------------------------------------------------------
    9,000,000    Monroe County Tobacco Asset Securitization
                 Corp. RITES 2                                      14.258 3     06/01/2042        9,243,180
------------------------------------------------------------------------------------------------------------
    2,160,000    Monroe Newpower Corp.                               5.500       01/01/2034        2,232,166
------------------------------------------------------------------------------------------------------------
      580,000    Monroe Newpower Corp.                               5.625       01/01/2026          611,993
------------------------------------------------------------------------------------------------------------
    5,860,000    Montgomery County IDA (ASMF) 2,4,5                  7.250       01/15/2019          580,140
------------------------------------------------------------------------------------------------------------
      500,000    Mount Vernon IDA (Kings Court)                      5.200       12/01/2033          501,505
------------------------------------------------------------------------------------------------------------
    3,275,000    Mount Vernon IDA (Macedonia Towers)                 5.200       12/01/2033        3,284,858
------------------------------------------------------------------------------------------------------------
    2,295,000    Mount Vernon IDA (Meadowview)                       6.150       06/01/2019        2,327,589
------------------------------------------------------------------------------------------------------------
    2,600,000    Mount Vernon IDA (Meadowview)                       6.200       06/01/2029        2,629,120
------------------------------------------------------------------------------------------------------------
   14,200,000    MTA RITES 2                                        12.162 3     11/15/2025       16,693,804
------------------------------------------------------------------------------------------------------------
    1,910,000    MTA RITES 2                                        12.162 3     11/15/2028        2,142,600
------------------------------------------------------------------------------------------------------------
   10,000,000    MTA RITES 2                                        12.162 3     11/15/2030       11,057,800
------------------------------------------------------------------------------------------------------------
    5,000,000    MTA RITES 2                                        12.162 3     11/15/2030        5,528,900
------------------------------------------------------------------------------------------------------------
    2,890,000    MTA RITES 2                                        12.162 3     11/15/2030        3,195,704
------------------------------------------------------------------------------------------------------------
    7,500,000    MTA RITES 2                                        12.162 3     11/15/2031        8,273,550
------------------------------------------------------------------------------------------------------------
    2,125,000    MTA RITES 2                                        12.162 3     11/15/2032        2,338,478
------------------------------------------------------------------------------------------------------------
    2,220,000    MTA Service Contract RITES 2                       12.662 3     01/01/2024        2,641,933
------------------------------------------------------------------------------------------------------------
   20,000,000    MTA Service Contract, Series A                      5.125       01/01/2024       20,950,400
------------------------------------------------------------------------------------------------------------
  136,550,000    MTA Service Contract, Series A                      5.125       01/01/2029      140,486,737
------------------------------------------------------------------------------------------------------------
   20,000,000    MTA Service Contract, Series A                      5.750       07/01/2031       22,631,800
------------------------------------------------------------------------------------------------------------
   33,275,000    MTA Service Contract, Series B                      5.250       01/01/2031       34,795,002
------------------------------------------------------------------------------------------------------------
   42,295,000    MTA, Series A                                       5.125       11/15/2031       43,368,870
------------------------------------------------------------------------------------------------------------
   20,000,000    MTA, Series B                                       5.250       11/15/2032       20,827,800
------------------------------------------------------------------------------------------------------------
   34,755,000    MTA, Series E                                       5.250       11/15/2031       36,082,293
------------------------------------------------------------------------------------------------------------
      802,824    Municipal Assistance Corp. for Troy, NY             0.000 1     07/15/2021          383,019
------------------------------------------------------------------------------------------------------------
    1,218,573    Municipal Assistance Corp. for Troy, NY             0.000 1     01/15/2022          562,859
------------------------------------------------------------------------------------------------------------
    1,195,000    Nassau County IDA (ALIA-ACDS)                       7.500       06/01/2015        1,307,784
------------------------------------------------------------------------------------------------------------
    2,975,000    Nassau County IDA (ALIA-ACLD)                       6.250       09/01/2022        3,035,571
------------------------------------------------------------------------------------------------------------
      250,000    Nassau County IDA (ALIA-ACLD)                       7.125       06/01/2017          268,415
------------------------------------------------------------------------------------------------------------
      400,000    Nassau County IDA (ALIA-ACLD)                       7.500       06/01/2015          437,752
------------------------------------------------------------------------------------------------------------
    6,175,000    Nassau County IDA (ALIA-CSMR)                       7.000       11/01/2016        6,646,400
------------------------------------------------------------------------------------------------------------
    3,705,000    Nassau County IDA (ALIA-CSMR)                       7.125       06/01/2017        3,982,542
------------------------------------------------------------------------------------------------------------
    1,995,000    Nassau County IDA (ALIA-CSMR)                       7.500       06/01/2015        2,183,288


                         24 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     365,000    Nassau County IDA (ALIA-FREE)                       7.125%      06/01/2012  $       396,846
------------------------------------------------------------------------------------------------------------
    2,465,000    Nassau County IDA (ALIA-FREE)                       7.500       06/01/2015        2,697,647
------------------------------------------------------------------------------------------------------------
    4,030,000    Nassau County IDA (ALIA-FREE)                       8.150       06/01/2030        4,331,525
------------------------------------------------------------------------------------------------------------
    6,550,000    Nassau County IDA (ALIA-FREE)                       8.250       06/01/2032        7,002,343
------------------------------------------------------------------------------------------------------------
      995,000    Nassau County IDA (ALIA-HH)                         7.125       06/01/2017        1,069,535
------------------------------------------------------------------------------------------------------------
      765,000    Nassau County IDA (ALIA-HHS)                        7.125       06/01/2017          822,306
------------------------------------------------------------------------------------------------------------
      260,000    Nassau County IDA (ALIA-LVH)                        7.500       06/01/2015          284,539
------------------------------------------------------------------------------------------------------------
      600,000    Nassau County IDA (CNGCS)                           7.500       06/01/2030          656,628
------------------------------------------------------------------------------------------------------------
    2,245,000    Nassau County IDA (CNGCS)                           8.150       06/01/2030        2,448,150
------------------------------------------------------------------------------------------------------------
    5,240,000    Nassau County IDA (Engel Burman Senior Hsg.)        7.750       05/01/2047        5,285,588
------------------------------------------------------------------------------------------------------------
    3,410,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        3,439,667
------------------------------------------------------------------------------------------------------------
    5,875,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        5,919,415
------------------------------------------------------------------------------------------------------------
    6,450,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        6,496,827
------------------------------------------------------------------------------------------------------------
    9,155,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        9,217,895
------------------------------------------------------------------------------------------------------------
      860,000    Nassau County IDA (Leo D. Bernstein & Sons)         8.000       11/01/2010          852,914
------------------------------------------------------------------------------------------------------------
    6,060,000    Nassau County IDA (Leo D. Bernstein & Sons)         8.875       11/01/2026        6,046,910
------------------------------------------------------------------------------------------------------------
    3,910,000    Nassau County IDA (Little Village School)           7.500       12/01/2031        4,138,852
------------------------------------------------------------------------------------------------------------
    2,290,000    Nassau County IDA (North Shore CFGA)                6.750       05/01/2024        2,301,152
------------------------------------------------------------------------------------------------------------
    2,759,599    Nassau County IDA (Sharp International) 2,4,5       7.375       12/01/2007          104,865
------------------------------------------------------------------------------------------------------------
    1,752,588    Nassau County IDA (Sharp International) 2,4,5       7.375       12/01/2007           66,598
------------------------------------------------------------------------------------------------------------
    2,527,212    Nassau County IDA (Sharp International) 2,4,5       7.875       12/01/2012           96,034
------------------------------------------------------------------------------------------------------------
    1,597,663    Nassau County IDA (Sharp International) 2,4,5       7.875       12/01/2012           60,711
------------------------------------------------------------------------------------------------------------
    2,050,000    Nassau County IDA (United Cerebral Palsy)           6.250       11/01/2014        1,999,652
------------------------------------------------------------------------------------------------------------
   24,400,000    Nassau County IDA (Westbury Senior Living)          7.900       11/01/2031       24,507,116
------------------------------------------------------------------------------------------------------------
    4,375,000    Nassau County IFA RITES 2                          12.755 3     11/15/2021        5,209,750
------------------------------------------------------------------------------------------------------------
   17,730,000    Nassau County Tobacco Settlement Corp. RITES 2      9.819 3     07/15/2033       18,355,692
------------------------------------------------------------------------------------------------------------
   10,535,000    Nassau County Tobacco Settlement Corp. RITES 2     10.019 3     07/15/2027       11,044,473
------------------------------------------------------------------------------------------------------------
   17,590,000    Nassau County Tobacco Settlement Corp. RITES 2     10.219 3     07/15/2039       18,471,435
------------------------------------------------------------------------------------------------------------
    7,155,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        7,350,546
------------------------------------------------------------------------------------------------------------
    3,340,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        3,344,977
------------------------------------------------------------------------------------------------------------
    4,290,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        4,296,392
------------------------------------------------------------------------------------------------------------
    6,195,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        6,244,436
------------------------------------------------------------------------------------------------------------
    4,775,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        4,782,115
------------------------------------------------------------------------------------------------------------
    4,775,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        4,806,515
------------------------------------------------------------------------------------------------------------
    2,000,000    New Hartford-Sunset Wood Funding Corp.              5.500       02/01/2029        2,090,300
------------------------------------------------------------------------------------------------------------
   13,010,000    New Rochelle IDA (College of New Rochelle)          5.250       07/01/2027       13,410,448
------------------------------------------------------------------------------------------------------------
    6,500,000    New Rochelle IDA (College of New Rochelle)          5.500       07/01/2019        6,905,535
------------------------------------------------------------------------------------------------------------
    4,950,000    Newark-Wayne Community Hospital                     5.875       01/15/2033        4,963,415
------------------------------------------------------------------------------------------------------------
    2,515,000    Newark-Wayne Community Hospital                     7.600       09/01/2015        2,505,544
------------------------------------------------------------------------------------------------------------
    3,300,000    Niagara County IDA (American Ref-Fuel Company)      5.550       11/15/2024        3,543,177
------------------------------------------------------------------------------------------------------------
    1,500,000    Niagara County IDA (Niagara University)             5.350       11/01/2023        1,598,895


                         25 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   5,400,000    Niagara County IDA (Niagara University)             5.400%      11/01/2031  $     5,633,118
------------------------------------------------------------------------------------------------------------
    1,550,000    Niagara County IDA (Sevenson Hotel)                 6.600       05/01/2007        1,550,357
------------------------------------------------------------------------------------------------------------
    6,500,000    Niagara County IDA (Solid Waste Disposal)           5.625       11/15/2024        6,987,630
------------------------------------------------------------------------------------------------------------
    1,305,000    Niagara County Tobacco Asset Securitization
                 Corp.                                               6.250       05/15/2034        1,283,337
------------------------------------------------------------------------------------------------------------
    5,915,000    Niagara County Tobacco Asset Securitization
                 Corp.                                               6.250       05/15/2040        5,770,556
------------------------------------------------------------------------------------------------------------
    1,700,000    Niagara Falls CSD COP (High School Facility)        5.375       06/15/2028        1,728,033
------------------------------------------------------------------------------------------------------------
      750,000    Niagara Falls CSD COP (High School Facility)        6.625       06/15/2028          810,840
------------------------------------------------------------------------------------------------------------
       25,000    Niagara Frontier Transportation Authority
                 (Buffalo Niagara International Airport)             5.625       04/01/2029           26,477
------------------------------------------------------------------------------------------------------------
      715,000    North Babylon Volunteer Fire Company                5.750       08/01/2022          784,312
------------------------------------------------------------------------------------------------------------
    1,555,000    North Country Devel. Authority
                 (Clarkson University)                               5.500       07/01/2019        1,648,362
------------------------------------------------------------------------------------------------------------
    3,145,000    North Country Devel. Authority
                 (Clarkson University)                               5.500       07/01/2029        3,276,052
------------------------------------------------------------------------------------------------------------
      375,000    North Tonawanda HDC (Bishop Gibbons Associates)     6.800       12/15/2007          392,516
------------------------------------------------------------------------------------------------------------
    3,295,000    North Tonawanda HDC (Bishop Gibbons Associates)     7.375       12/15/2021        3,679,428
------------------------------------------------------------------------------------------------------------
       25,000    Nunda GO                                            8.000       05/01/2010           29,981
------------------------------------------------------------------------------------------------------------
      715,000    NY Counties Tobacco Trust I (TASC)                  6.500       06/01/2035          714,950
------------------------------------------------------------------------------------------------------------
    3,975,000    NY Counties Tobacco Trust I (TASC) Fixed
                 Receipts 2                                          6.225       06/01/2028        3,969,197
------------------------------------------------------------------------------------------------------------
   11,915,000    NY Counties Tobacco Trust I (TASC) RITES 2         13.130 3     06/01/2028       11,862,812
------------------------------------------------------------------------------------------------------------
   29,525,000    NY Counties Tobacco Trust I RITES 2                 9.982 3     06/01/2042       29,902,920
------------------------------------------------------------------------------------------------------------
    9,105,000    NY Counties Tobacco Trust I RITES 2                10.019 3     06/01/2035        9,092,799
------------------------------------------------------------------------------------------------------------
   29,780,000    NY Counties Tobacco Trust II (TASC)                 5.625       06/01/2035       27,341,316
------------------------------------------------------------------------------------------------------------
   53,565,000    NY Counties Tobacco Trust II (TASC)                 5.750       06/01/2043       48,781,646
------------------------------------------------------------------------------------------------------------
      200,000    NY Counties Tobacco Trust III                       6.000       06/01/2043          191,342
------------------------------------------------------------------------------------------------------------
      450,000    NYC Educational Construction Fund                   5.500       04/01/2026          477,446
------------------------------------------------------------------------------------------------------------
      200,000    NYC GO                                              0.000 1     05/15/2012          149,790
------------------------------------------------------------------------------------------------------------
       40,000    NYC GO                                              0.000 1     10/01/2012           29,450
------------------------------------------------------------------------------------------------------------
    2,955,000    NYC GO                                              5.000       12/01/2033        2,997,582
------------------------------------------------------------------------------------------------------------
   30,550,000    NYC GO                                              5.000       11/01/2034       30,972,201
------------------------------------------------------------------------------------------------------------
       50,000    NYC GO                                              5.100       11/01/2019           52,678
------------------------------------------------------------------------------------------------------------
    4,910,000    NYC GO                                              5.100       08/15/2027        5,069,575
------------------------------------------------------------------------------------------------------------
    3,710,000    NYC GO                                              5.250       10/15/2021        3,952,857
------------------------------------------------------------------------------------------------------------
    1,015,000    NYC GO                                              5.250       08/15/2023        1,069,089
------------------------------------------------------------------------------------------------------------
      515,000    NYC GO                                              5.250       08/01/2024          538,561
------------------------------------------------------------------------------------------------------------
   33,420,000    NYC GO                                              5.250       06/01/2027       34,892,485
------------------------------------------------------------------------------------------------------------
    4,400,000    NYC GO                                              5.250       06/01/2028        4,601,300
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC GO                                              5.250       09/15/2033        1,042,850
------------------------------------------------------------------------------------------------------------
   20,830,000    NYC GO                                              5.375       12/01/2026       21,959,194
------------------------------------------------------------------------------------------------------------
      500,000    NYC GO                                              5.375       08/01/2027          522,830
------------------------------------------------------------------------------------------------------------
    1,115,000    NYC GO                                              5.375       03/15/2028        1,170,962
------------------------------------------------------------------------------------------------------------
   55,765,000    NYC GO                                              5.375       06/01/2032       58,456,219
------------------------------------------------------------------------------------------------------------
   11,500,000    NYC GO                                              5.500       08/01/2020       12,615,385


                         26 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$  11,860,000    NYC GO                                              5.500%      08/01/2021  $    12,947,681
------------------------------------------------------------------------------------------------------------
    1,255,000    NYC GO                                              5.500       06/01/2028        1,337,579
------------------------------------------------------------------------------------------------------------
    6,910,000    NYC GO                                              5.500       12/01/2031        7,319,072
------------------------------------------------------------------------------------------------------------
    7,075,000    NYC GO                                              5.500       11/15/2037        7,356,161
------------------------------------------------------------------------------------------------------------
    5,000,000    NYC GO                                              5.625       03/15/2019        5,446,800
------------------------------------------------------------------------------------------------------------
       20,000    NYC GO                                              5.750       02/01/2020           20,896
------------------------------------------------------------------------------------------------------------
    1,500,000    NYC GO                                              5.750       03/01/2020        1,680,255
------------------------------------------------------------------------------------------------------------
        5,000    NYC GO                                              5.950       08/01/2014            5,529
------------------------------------------------------------------------------------------------------------
   25,255,000    NYC GO                                              6.000       01/15/2021       28,816,965
------------------------------------------------------------------------------------------------------------
      335,000    NYC GO                                              6.350       05/15/2014          373,183
------------------------------------------------------------------------------------------------------------
        5,000    NYC GO                                              7.000       02/01/2010            5,019
------------------------------------------------------------------------------------------------------------
        5,000    NYC GO                                              7.250       08/15/2024            5,018
------------------------------------------------------------------------------------------------------------
       15,000    NYC GO                                              7.750       08/15/2028           15,089
------------------------------------------------------------------------------------------------------------
      100,000    NYC GO DIAMONDS                                     0.000 7     08/01/2025           88,903
------------------------------------------------------------------------------------------------------------
      837,000    NYC GO RIBS                                        10.120 3     08/12/2010          842,365
------------------------------------------------------------------------------------------------------------
      837,000    NYC GO RIBS                                        10.120 3     09/01/2011          842,348
------------------------------------------------------------------------------------------------------------
      322,522    NYC HDC (Albert Einstein Staff Hsg.)                6.500       12/15/2017          338,880
------------------------------------------------------------------------------------------------------------
    1,240,364    NYC HDC (Atlantic Plaza Towers)                     7.034       02/15/2019        1,305,533
------------------------------------------------------------------------------------------------------------
    1,045,000    NYC HDC (Barclay Avenue)                            6.450       04/01/2017        1,083,529
------------------------------------------------------------------------------------------------------------
    4,055,000    NYC HDC (Barclay Avenue)                            6.600       04/01/2033        4,187,639
------------------------------------------------------------------------------------------------------------
      304,807    NYC HDC (Bay Towers)                                6.500       08/15/2017          320,739
------------------------------------------------------------------------------------------------------------
    2,280,862    NYC HDC (Boulevard Towers)                          6.500       08/15/2017        2,399,787
------------------------------------------------------------------------------------------------------------
      387,029    NYC HDC (Bridgeview III)                            6.500       12/15/2017          407,259
------------------------------------------------------------------------------------------------------------
      416,133    NYC HDC (Cadman Plaza North)                        7.000       12/15/2018          437,527
------------------------------------------------------------------------------------------------------------
    1,081,962    NYC HDC (Cadman Towers)                             6.500       11/15/2018        1,138,527
------------------------------------------------------------------------------------------------------------
      154,673    NYC HDC (Candia House)                              6.500       06/15/2018          162,739
------------------------------------------------------------------------------------------------------------
    2,945,944    NYC HDC (Clinton Towers)                            6.500       07/15/2017        3,099,546
------------------------------------------------------------------------------------------------------------
      255,537    NYC HDC (Contello III)                              7.000       12/15/2018          268,950
------------------------------------------------------------------------------------------------------------
    1,204,944    NYC HDC (Cooper Gramercy)                           6.500       08/15/2017        1,267,770
------------------------------------------------------------------------------------------------------------
      919,362    NYC HDC (Court Plaza)                               6.500       08/15/2017          967,417
------------------------------------------------------------------------------------------------------------
    1,442,434    NYC HDC (Crown Gardens)                             7.250       01/15/2019        1,518,652
------------------------------------------------------------------------------------------------------------
    2,996,538    NYC HDC (East Midtown Plaza)                        6.500       11/15/2018        3,153,197
------------------------------------------------------------------------------------------------------------
    2,896,589    NYC HDC (Esplanade Gardens)                         7.000       01/15/2019        3,049,124
------------------------------------------------------------------------------------------------------------
       69,488    NYC HDC (Essex Terrace)                             6.500       07/15/2018           73,112
------------------------------------------------------------------------------------------------------------
      415,534    NYC HDC (Forest Park Crescent)                      6.500       12/15/2017          437,200
------------------------------------------------------------------------------------------------------------
    1,383,063    NYC HDC (Gouverneur Gardens)                        7.034       02/15/2019        1,455,922
------------------------------------------------------------------------------------------------------------
      955,339    NYC HDC (Janel Towers)                              6.500       09/15/2017        1,005,274
------------------------------------------------------------------------------------------------------------
      334,279    NYC HDC (Kingsbridge Arms)                          6.500       08/15/2017          351,752
------------------------------------------------------------------------------------------------------------
      191,669    NYC HDC (Kingsbridge Arms)                          6.500       11/15/2018          201,665
------------------------------------------------------------------------------------------------------------
    1,469,849    NYC HDC (Lincoln-Amsterdam)                         7.250       11/15/2018        1,545,458
------------------------------------------------------------------------------------------------------------
    2,198,163    NYC HDC (Montefiore Hospital Hsg. Sec. II)          6.500       10/15/2017        2,312,775


                         27 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,000,000    NYC HDC (Multifamily Hsg.), Series A                5.500%      11/01/2034  $     3,086,280
------------------------------------------------------------------------------------------------------------
   10,470,000    NYC HDC (Multifamily Hsg.), Series A                5.600       11/01/2042       10,852,888
------------------------------------------------------------------------------------------------------------
      775,000    NYC HDC (Multifamily Hsg.), Series C                5.700       05/01/2031          800,870
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC HDC (Multifamily Hsg.), Series E                5.200       11/01/2033        1,013,210
------------------------------------------------------------------------------------------------------------
   11,000,000    NYC HDC (Multifamily Hsg.), Series E-1              4.950       11/01/2034       11,067,430
------------------------------------------------------------------------------------------------------------
    2,155,000    NYC HDC (Multifamily Hsg.), Series F                5.200       11/01/2032        2,184,868
------------------------------------------------------------------------------------------------------------
    1,345,000    NYC HDC (Multifamily Hsg.), Series H-2              5.200       11/01/2038        1,346,439
------------------------------------------------------------------------------------------------------------
    3,400,000    NYC HDC (Multifamily Hsg.), Series H-2              5.250       05/01/2046        3,411,390
------------------------------------------------------------------------------------------------------------
   15,510,000    NYC HDC (Multifamily Hsg.), Series I-2              5.200       11/01/2038       15,550,326
------------------------------------------------------------------------------------------------------------
      734,102    NYC HDC (New Amsterdam House)                       6.500       08/15/2018          734,102
------------------------------------------------------------------------------------------------------------
      750,418    NYC HDC (New Amsterdam House)                       6.500       08/15/2018          752,332
------------------------------------------------------------------------------------------------------------
      902,856    NYC HDC (Riverbend)                                 6.500       11/15/2018          950,058
------------------------------------------------------------------------------------------------------------
    5,656,772    NYC HDC (Riverside Park Community)                  7.250       11/15/2018        5,960,427
------------------------------------------------------------------------------------------------------------
      395,504    NYC HDC (RNA House)                                 7.000       12/15/2018          416,323
------------------------------------------------------------------------------------------------------------
      557,644    NYC HDC (Robert Fulton Terrace)                     6.500       12/15/2017          586,792
------------------------------------------------------------------------------------------------------------
      206,388    NYC HDC (Rosalie Manning Apartments)                7.034       11/15/2018          217,228
------------------------------------------------------------------------------------------------------------
      549,632    NYC HDC (Scott Tower)                               7.000       12/15/2018          578,482
------------------------------------------------------------------------------------------------------------
      751,882    NYC HDC (Seaview Towers)                            6.500       01/15/2018          791,093
------------------------------------------------------------------------------------------------------------
      310,602    NYC HDC (St. Martin Tower)                          6.500       11/15/2018          326,840
------------------------------------------------------------------------------------------------------------
    1,437,113    NYC HDC (Stevenson Commons)                         6.500       05/15/2018        1,512,059
------------------------------------------------------------------------------------------------------------
      409,747    NYC HDC (Strycker's Bay Apartments)                 7.034       11/15/2018          415,430
------------------------------------------------------------------------------------------------------------
    1,431,106    NYC HDC (Tivoli Towers)                             6.500       01/15/2018        1,504,894
------------------------------------------------------------------------------------------------------------
      194,402    NYC HDC (Town House West)                           6.500       01/15/2018          204,406
------------------------------------------------------------------------------------------------------------
      299,969    NYC HDC (Tri-Faith House)                           7.000       01/15/2019          315,724
------------------------------------------------------------------------------------------------------------
    1,257,886    NYC HDC (University River View)                     6.500       08/15/2017        1,323,636
------------------------------------------------------------------------------------------------------------
      382,264    NYC HDC (Washington Square Southeast)               7.000       01/15/2019          402,115
------------------------------------------------------------------------------------------------------------
      343,643    NYC HDC (West Side Manor)                           6.500       11/15/2018          361,564
------------------------------------------------------------------------------------------------------------
      215,821    NYC HDC (Westview Apartments)                       6.500       10/15/2017          227,102
------------------------------------------------------------------------------------------------------------
      510,778    NYC HDC (Woodstock Terrace)                         7.034       02/15/2019          537,614
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC Health & Hospital Corp.                         5.375       02/15/2026        1,040,340
------------------------------------------------------------------------------------------------------------
    5,875,000    NYC Health & Hospital Corp. RITES 2                12.232 3     02/15/2020        7,272,310
------------------------------------------------------------------------------------------------------------
    1,245,000    NYC IDA (A Very Special Place)                      5.750       01/01/2029        1,036,487
------------------------------------------------------------------------------------------------------------
      400,000    NYC IDA (A-Lite Vertical Products)                  6.750       11/01/2009          395,560
------------------------------------------------------------------------------------------------------------
    1,330,000    NYC IDA (A-Lite Vertical Products)                  7.500       11/01/2019        1,314,905
------------------------------------------------------------------------------------------------------------
    3,600,000    NYC IDA (Acme Architectural Products)               6.375       11/01/2019        3,267,756
------------------------------------------------------------------------------------------------------------
   29,635,000    NYC IDA (Airis JFK I/JFK International Airport)     5.500       07/01/2028       29,688,047
------------------------------------------------------------------------------------------------------------
   20,745,000    NYC IDA (Airis JFK I/JFK International Airport)     6.000       07/01/2027       21,178,363
------------------------------------------------------------------------------------------------------------
    1,035,000    NYC IDA (ALA Realty)                                7.500       12/01/2010        1,063,421
------------------------------------------------------------------------------------------------------------
    1,450,000    NYC IDA (ALA Realty)                                8.375       12/01/2015        1,510,335
------------------------------------------------------------------------------------------------------------
      330,000    NYC IDA (Allied Metal)                              6.375       12/01/2014          328,400
------------------------------------------------------------------------------------------------------------
      940,000    NYC IDA (Allied Metal)                              7.125       12/01/2027          944,493


                         28 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,360,000    NYC IDA (Amboy Properties)                          6.750%      06/01/2020  $     3,121,742
------------------------------------------------------------------------------------------------------------
    2,595,000    NYC IDA (American Airlines)                         5.400       07/01/2019        1,684,025
------------------------------------------------------------------------------------------------------------
   29,935,000    NYC IDA (American Airlines)                         5.400       07/01/2020       19,200,908
------------------------------------------------------------------------------------------------------------
   38,410,000    NYC IDA (American Airlines)                         6.900       08/01/2024       28,239,416
------------------------------------------------------------------------------------------------------------
  331,800,000    NYC IDA (American Airlines)                         8.500       08/01/2028      271,332,768
------------------------------------------------------------------------------------------------------------
      705,000    NYC IDA (Atlantic Paste & Glue Company)             6.000       11/01/2007          705,296
------------------------------------------------------------------------------------------------------------
    4,620,000    NYC IDA (Atlantic Paste & Glue Company)             6.625       11/01/2019        4,671,467
------------------------------------------------------------------------------------------------------------
    1,160,000    NYC IDA (Atlantic Veal & Lamb)                      8.375       12/01/2016        1,207,908
------------------------------------------------------------------------------------------------------------
      605,000    NYC IDA (Baco Enterprises)                          7.500       11/01/2011          609,168
------------------------------------------------------------------------------------------------------------
    1,685,000    NYC IDA (Baco Enterprises)                          8.500       11/01/2021        1,693,257
------------------------------------------------------------------------------------------------------------
      225,000    NYC IDA (Bark Frameworks)                           6.000       11/01/2007          218,957
------------------------------------------------------------------------------------------------------------
    1,500,000    NYC IDA (Bark Frameworks)                           6.750       11/01/2019        1,398,210
------------------------------------------------------------------------------------------------------------
   10,915,000    NYC IDA (Berkeley Carroll School)                   6.100       11/01/2028       10,010,365
------------------------------------------------------------------------------------------------------------
    5,500,000    NYC IDA (Beth Abraham Health Services)              6.500       02/15/2022        5,804,370
------------------------------------------------------------------------------------------------------------
    1,035,000    NYC IDA (Beth Abraham Health Services)              6.500       11/15/2027        1,066,329
------------------------------------------------------------------------------------------------------------
    4,220,000    NYC IDA (Beth Abraham Health Services)              6.500       11/15/2034        4,349,174
------------------------------------------------------------------------------------------------------------
   30,430,000    NYC IDA (British Airways)                           5.250       12/01/2032       23,675,149
------------------------------------------------------------------------------------------------------------
   14,890,000    NYC IDA (British Airways)                           7.625       12/01/2032       15,464,307
------------------------------------------------------------------------------------------------------------
   72,320,000    NYC IDA (Brooklyn Navy Yard Cogeneration
                 Partners)                                           5.650       10/01/2028       70,062,893
------------------------------------------------------------------------------------------------------------
  139,740,000    NYC IDA (Brooklyn Navy Yard Cogeneration
                 Partners)                                           5.750       10/01/2036      132,428,803
------------------------------------------------------------------------------------------------------------
    8,510,000    NYC IDA (Brooklyn Navy Yard Cogeneration
                 Partners)                                           6.200       10/01/2022        8,598,674
------------------------------------------------------------------------------------------------------------
   16,205,000    NYC IDA (Calhoun School)                            6.625       12/01/2034       16,607,046
------------------------------------------------------------------------------------------------------------
      345,000    NYC IDA (Cellini Furniture Crafters) 2              6.625       11/01/2009          322,851
------------------------------------------------------------------------------------------------------------
      885,000    NYC IDA (Cellini Furniture Crafters) 2              7.125       11/01/2019          810,722
------------------------------------------------------------------------------------------------------------
    2,235,000    NYC IDA (Chardan Corp.)                             7.750       11/01/2020        2,201,788
------------------------------------------------------------------------------------------------------------
    2,500,000    NYC IDA (College of Aeronautics)                    5.450       05/01/2018        2,576,550
------------------------------------------------------------------------------------------------------------
    9,600,000    NYC IDA (College of Aeronautics)                    5.500       05/01/2028        9,654,240
------------------------------------------------------------------------------------------------------------
    2,500,000    NYC IDA (College of New Rochelle)                   5.750       09/01/2017        2,643,025
------------------------------------------------------------------------------------------------------------
    2,900,000    NYC IDA (College of New Rochelle)                   5.800       09/01/2026        3,044,072
------------------------------------------------------------------------------------------------------------
    2,400,000    NYC IDA (Community Hospital of Brooklyn)            6.875       11/01/2010        2,349,576
------------------------------------------------------------------------------------------------------------
    3,975,000    NYC IDA (Comprehensive Care Management)             6.375       11/01/2028        4,002,348
------------------------------------------------------------------------------------------------------------
    1,575,000    NYC IDA (Comprehensive Care Management)             6.375       11/01/2028        1,585,647
------------------------------------------------------------------------------------------------------------
    1,770,000    NYC IDA (Comprehensive Care Management)             7.875       12/01/2016        1,884,006
------------------------------------------------------------------------------------------------------------
    1,250,000    NYC IDA (Comprehensive Care Management)             8.000       12/01/2011        1,277,238
------------------------------------------------------------------------------------------------------------
    1,900,000    NYC IDA (Continental Airlines)                      7.250       11/01/2008        1,901,615
------------------------------------------------------------------------------------------------------------
    2,000,000    NYC IDA (Continental Airlines)                      8.375       11/01/2016        1,904,280
------------------------------------------------------------------------------------------------------------
      550,000    NYC IDA (Dioni)                                     6.000       11/01/2007          547,800
------------------------------------------------------------------------------------------------------------
    3,600,000    NYC IDA (Dioni)                                     6.625       11/01/2019        3,625,560
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (Eger Harbor House)                         5.875       05/20/2044        1,105,810
------------------------------------------------------------------------------------------------------------
    5,500,000    NYC IDA (Family Support Systems)                    7.500       11/01/2034        5,500,000
------------------------------------------------------------------------------------------------------------
    7,315,000    NYC IDA (Friends Seminary School)                   7.125       09/15/2031        7,870,794


                         29 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,280,000    NYC IDA (Gabrielli Truck Sales)                     8.125%      12/01/2017  $     3,477,062
------------------------------------------------------------------------------------------------------------
    2,265,000    NYC IDA (Gateway School of NY)                      6.500       11/01/2019        2,408,103
------------------------------------------------------------------------------------------------------------
    8,000,000    NYC IDA (General Motors Corp.)                      5.125       12/30/2023        8,029,280
------------------------------------------------------------------------------------------------------------
    2,175,000    NYC IDA (Good Shepherd Services)                    5.875       06/01/2014        2,216,477
------------------------------------------------------------------------------------------------------------
    1,130,000    NYC IDA (Graphic Artists)                           8.250       12/30/2023        1,145,289
------------------------------------------------------------------------------------------------------------
      405,000    NYC IDA (Herbert G. Birch Childhood Project)        7.375       02/01/2009          407,264
------------------------------------------------------------------------------------------------------------
    2,195,000    NYC IDA (Herbert G. Birch Childhood Project)        8.375       02/01/2022        2,287,366
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (Institute of International Education)      5.250       09/01/2021        1,053,610
------------------------------------------------------------------------------------------------------------
    3,000,000    NYC IDA (Institute of International Education)      5.250       09/01/2031        3,105,090
------------------------------------------------------------------------------------------------------------
    1,605,000    NYC IDA (Julia Gray)                                7.500       11/01/2020        1,630,969
------------------------------------------------------------------------------------------------------------
      870,000    NYC IDA (Just Bagels Manufacturing)                 8.500       11/01/2016          934,537
------------------------------------------------------------------------------------------------------------
    1,050,000    NYC IDA (Just Bagels Manufacturing)                 8.750       11/01/2026        1,132,289
------------------------------------------------------------------------------------------------------------
    1,675,000    NYC IDA (Koenig Iron Works)                         8.375       12/01/2025        1,770,073
------------------------------------------------------------------------------------------------------------
    1,380,000    NYC IDA (L&M Optical Disc)                          7.125       11/01/2010        1,391,785
------------------------------------------------------------------------------------------------------------
    3,025,000    NYC IDA (Little Red Schoolhouse)                    6.750       11/01/2018        3,144,488
------------------------------------------------------------------------------------------------------------
      470,000    NYC IDA (Lucky Polyethylene Manufacturing
                 Company)                                            7.000       11/01/2009          440,616
------------------------------------------------------------------------------------------------------------
    2,995,000    NYC IDA (Lucky Polyethylene Manufacturing
                 Company)                                            7.800       11/01/2024        2,682,442
------------------------------------------------------------------------------------------------------------
    2,000,000    NYC IDA (Lycee Francais De New York)                5.375       06/01/2023        2,077,580
------------------------------------------------------------------------------------------------------------
   23,000,000    NYC IDA (Magen David Yeshivah)                      5.700       06/15/2027       24,419,790
------------------------------------------------------------------------------------------------------------
      680,000    NYC IDA (Marymount School of NY)                    5.125       09/01/2021          700,577
------------------------------------------------------------------------------------------------------------
    3,960,000    NYC IDA (Marymount School of NY)                    5.250       09/01/2031        4,099,907
------------------------------------------------------------------------------------------------------------
   19,335,000    NYC IDA (MediSys Health Network)                    6.250       03/15/2024       17,624,626
------------------------------------------------------------------------------------------------------------
    1,915,000    NYC IDA (Mesorah Publications)                      6.450       02/01/2011        1,928,692
------------------------------------------------------------------------------------------------------------
    4,790,000    NYC IDA (Mesorah Publications)                      6.950       02/01/2021        4,709,959
------------------------------------------------------------------------------------------------------------
    2,275,000    NYC IDA (Morrisons Pastry)                          6.500       11/01/2019        2,247,700
------------------------------------------------------------------------------------------------------------
   18,510,000    NYC IDA (Northwest Airlines)                        6.000       06/01/2027       13,236,871
------------------------------------------------------------------------------------------------------------
    4,180,000    NYC IDA (NY Hostel Company)                         7.600       01/01/2017        4,277,896
------------------------------------------------------------------------------------------------------------
      405,000    NYC IDA (NY Vanities & Manufacturing)               7.000       11/01/2009          391,501
------------------------------------------------------------------------------------------------------------
    1,405,000    NYC IDA (NY Vanities & Manufacturing)               7.500       11/01/2019        1,354,308
------------------------------------------------------------------------------------------------------------
      715,000    NYC IDA (NYC Outward Bound Center)                  7.250       11/01/2010          721,178
------------------------------------------------------------------------------------------------------------
      420,000    NYC IDA (Paradise Products)                         7.125       11/01/2007          427,766
------------------------------------------------------------------------------------------------------------
    4,475,000    NYC IDA (Paradise Products)                         8.250       11/01/2022        4,695,931
------------------------------------------------------------------------------------------------------------
      680,000    NYC IDA (Petrocelli Electric)                       7.250       11/01/2007          697,170
------------------------------------------------------------------------------------------------------------
      220,000    NYC IDA (Petrocelli Electric)                       7.250       11/01/2008          226,004
------------------------------------------------------------------------------------------------------------
    3,780,000    NYC IDA (Petrocelli Electric)                       8.000       11/01/2017        3,928,705
------------------------------------------------------------------------------------------------------------
      940,000    NYC IDA (Petrocelli Electric)                       8.000       11/01/2018          984,208
------------------------------------------------------------------------------------------------------------
    6,310,000    NYC IDA (Polytechnic University)                    6.000       11/01/2020        6,057,411
------------------------------------------------------------------------------------------------------------
   34,000,000    NYC IDA (Polytechnic University)                    6.125       11/01/2030       32,594,780
------------------------------------------------------------------------------------------------------------
      180,000    NYC IDA (Pop Display)                               6.750       12/15/2004          180,000
------------------------------------------------------------------------------------------------------------
    2,645,000    NYC IDA (Pop Display)                               7.900       12/30/2014        2,674,095
------------------------------------------------------------------------------------------------------------
    2,240,000    NYC IDA (Precision Gear)                            6.375       11/01/2024        2,236,170


                         30 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,910,000    NYC IDA (Precision Gear)                            6.375%      11/01/2024  $     1,884,482
------------------------------------------------------------------------------------------------------------
      930,000    NYC IDA (Precision Gear)                            7.625       11/01/2024          976,556
------------------------------------------------------------------------------------------------------------
    4,100,000    NYC IDA (PSCH)                                      6.375       07/01/2033        4,344,032
------------------------------------------------------------------------------------------------------------
      445,000    NYC IDA (Psycho Therapy)                            9.625       04/01/2010          445,672
------------------------------------------------------------------------------------------------------------
      815,000    NYC IDA (Puerto Rican Family Foundation)            7.000       10/01/2016          817,421
------------------------------------------------------------------------------------------------------------
    2,825,000    NYC IDA (Riverdale Terrace Hsg. Devel. Fund)        6.250       11/01/2014        2,681,010
------------------------------------------------------------------------------------------------------------
    8,595,000    NYC IDA (Riverdale Terrace Hsg. Devel. Fund)        6.750       11/01/2028        7,953,211
------------------------------------------------------------------------------------------------------------
    1,250,000    NYC IDA (Sahadi Fine Foods)                         6.250       11/01/2009        1,209,650
------------------------------------------------------------------------------------------------------------
    4,085,000    NYC IDA (Sahadi Fine Foods)                         6.750       11/01/2019        3,859,304
------------------------------------------------------------------------------------------------------------
    4,380,000    NYC IDA (Showman Fabricators)                       7.500       11/01/2028        4,335,105
------------------------------------------------------------------------------------------------------------
    3,485,000    NYC IDA (South Bronx Overall Economic Devel.)       8.625       12/01/2025        3,559,231
------------------------------------------------------------------------------------------------------------
    4,255,000    NYC IDA (Special Needs Facilities Pooled
                 Program)                                            6.650       07/01/2023        4,214,833
------------------------------------------------------------------------------------------------------------
      735,000    NYC IDA (Special Needs Facilities Pooled
                 Program)                                            7.125       08/01/2006          750,648
------------------------------------------------------------------------------------------------------------
    7,010,000    NYC IDA (Special Needs Facilities Pooled
                 Program)                                            7.875       08/01/2025        7,564,561
------------------------------------------------------------------------------------------------------------
    5,115,000    NYC IDA (St. Bernard's School)                      7.000       12/01/2021        5,381,133
------------------------------------------------------------------------------------------------------------
    1,550,000    NYC IDA (St. Francis College)                       5.000       10/01/2034        1,568,864
------------------------------------------------------------------------------------------------------------
       10,000    NYC IDA (Staten Island University Hospital)         6.375       07/01/2031            9,552
------------------------------------------------------------------------------------------------------------
    4,535,000    NYC IDA (Staten Island University Hospital)         6.375       07/01/2031        4,331,787
------------------------------------------------------------------------------------------------------------
    1,495,000    NYC IDA (Staten Island University Hospital)         6.450       07/01/2032        1,441,060
------------------------------------------------------------------------------------------------------------
      585,000    NYC IDA (Streamline Plastics)                       7.750       12/01/2015          591,131
------------------------------------------------------------------------------------------------------------
    1,275,000    NYC IDA (Streamline Plastics)                       8.125       12/01/2025        1,301,125
------------------------------------------------------------------------------------------------------------
    1,485,000    NYC IDA (Summit School)                             8.250       12/01/2024        1,521,947
------------------------------------------------------------------------------------------------------------
    1,040,000    NYC IDA (Surprise Plastics)                         7.500       11/01/2013        1,043,827
------------------------------------------------------------------------------------------------------------
    2,480,000    NYC IDA (Surprise Plastics)                         8.500       11/01/2023        2,411,874
------------------------------------------------------------------------------------------------------------
    3,885,000    NYC IDA (Terminal One Group Association)            6.000       01/01/2015        3,933,834
------------------------------------------------------------------------------------------------------------
   25,790,000    NYC IDA (Terminal One Group Association)            6.000       01/01/2019       26,476,014
------------------------------------------------------------------------------------------------------------
      210,000    NYC IDA (Terminal One Group Association)            6.100       01/01/2009          212,409
------------------------------------------------------------------------------------------------------------
   10,965,000    NYC IDA (Terminal One Group Association)            6.125       01/01/2024       11,256,669
------------------------------------------------------------------------------------------------------------
      380,000    NYC IDA (The Bank Street College)                   5.250       12/01/2021          407,216
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (The Bank Street College)                   5.250       12/01/2030        1,042,980
------------------------------------------------------------------------------------------------------------
   10,000,000    NYC IDA (The Child School)                          7.550       06/01/2033       10,284,800
------------------------------------------------------------------------------------------------------------
      420,000    NYC IDA (Therapy & Learning Center)                 7.500       10/01/2011          430,038
------------------------------------------------------------------------------------------------------------
    3,735,000    NYC IDA (Therapy & Learning Center)                 8.250       10/01/2031        3,879,507
------------------------------------------------------------------------------------------------------------
      350,000    NYC IDA (THR Products Corp.)                        7.250       11/01/2010          356,335
------------------------------------------------------------------------------------------------------------
    1,085,000    NYC IDA (THR Products Corp.)                        8.250       11/01/2020        1,128,606
------------------------------------------------------------------------------------------------------------
    4,325,000    NYC IDA (Touro College)                             6.350       06/01/2029        4,355,145
------------------------------------------------------------------------------------------------------------
    4,485,000    NYC IDA (Ulano)                                     6.900       11/01/2019        4,251,780
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (United Nations School)                     6.350       12/01/2015        1,046,360
------------------------------------------------------------------------------------------------------------
    1,155,000    NYC IDA (Urban Health Plan)                         6.250       09/15/2009        1,134,383
------------------------------------------------------------------------------------------------------------
    9,830,000    NYC IDA (Urban Health Plan)                         7.050       09/15/2026        9,362,584
------------------------------------------------------------------------------------------------------------
    3,640,000    NYC IDA (Urban Resource Institute)                  7.375       11/01/2033        3,772,132


                         31 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$      75,000    NYC IDA (Utleys)                                    6.625%      11/01/2006  $        74,216
------------------------------------------------------------------------------------------------------------
    1,335,000    NYC IDA (Utleys)                                    7.375       11/01/2023        1,290,064
------------------------------------------------------------------------------------------------------------
      530,000    NYC IDA (Van Blarcom Closures)                      7.125       11/01/2007          528,458
------------------------------------------------------------------------------------------------------------
    2,965,000    NYC IDA (Van Blarcom Closures)                      8.000       11/01/2017        3,046,419
------------------------------------------------------------------------------------------------------------
      200,000    NYC IDA (Visy Paper)                                7.550       01/01/2005          200,000
------------------------------------------------------------------------------------------------------------
   19,300,000    NYC IDA (Visy Paper)                                7.800       01/01/2016       20,228,330
------------------------------------------------------------------------------------------------------------
   59,000,000    NYC IDA (Visy Paper)                                7.950       01/01/2028       61,837,900
------------------------------------------------------------------------------------------------------------
    1,930,000    NYC IDA (Vocational Instruction)                    7.750       02/01/2033        2,016,406
------------------------------------------------------------------------------------------------------------
      570,000    NYC IDA (W & W Jewelers)                            7.250       02/01/2011          563,451
------------------------------------------------------------------------------------------------------------
    1,555,000    NYC IDA (W & W Jewelers)                            8.250       02/01/2021        1,563,350
------------------------------------------------------------------------------------------------------------
    5,930,000    NYC IDA (Weizmann Institute)                        5.900       11/01/2034        6,020,788
------------------------------------------------------------------------------------------------------------
    2,900,000    NYC IDA (Weizmann Institute)                        5.900       11/01/2034        2,915,341
------------------------------------------------------------------------------------------------------------
    3,900,000    NYC IDA (Westchester Square Medical Center)         8.000       11/01/2010        4,022,967
------------------------------------------------------------------------------------------------------------
    6,160,000    NYC IDA (Westchester Square Medical Center)         8.375       11/01/2015        6,424,387
------------------------------------------------------------------------------------------------------------
    1,660,000    NYC IDA (World Casing Corp.)                        6.700       11/01/2019        1,511,164
------------------------------------------------------------------------------------------------------------
    9,000,000    NYC IDA Special Facilities
                 (JFK International Airport)                         8.000       08/01/2012        7,481,070
------------------------------------------------------------------------------------------------------------
      530,000    NYC Municipal Water Finance Authority               0.000 1     06/15/2019          268,233
------------------------------------------------------------------------------------------------------------
    1,650,000    NYC Municipal Water Finance Authority               5.000       06/15/2034        1,686,482
------------------------------------------------------------------------------------------------------------
    5,265,000    NYC Municipal Water Finance Authority               5.000       06/15/2035        5,388,359
------------------------------------------------------------------------------------------------------------
   50,000,000    NYC Municipal Water Finance Authority               5.000       06/15/2036       51,180,500
------------------------------------------------------------------------------------------------------------
   18,000,000    NYC Municipal Water Finance Authority               5.000       06/15/2038       18,353,880
------------------------------------------------------------------------------------------------------------
      795,000    NYC Municipal Water Finance Authority               5.125       06/15/2031          817,395
------------------------------------------------------------------------------------------------------------
       25,000    NYC Municipal Water Finance Authority               5.125       06/15/2033           25,780
------------------------------------------------------------------------------------------------------------
   20,545,000    NYC Municipal Water Finance Authority               5.125       06/15/2034       21,178,197
------------------------------------------------------------------------------------------------------------
      605,000    NYC Municipal Water Finance Authority               5.250       06/15/2034          633,810
------------------------------------------------------------------------------------------------------------
    2,260,000    NYC Municipal Water Finance Authority               5.375       06/15/2026        2,354,039
------------------------------------------------------------------------------------------------------------
      260,000    NYC Municipal Water Finance Authority               5.500       06/15/2033          281,128
------------------------------------------------------------------------------------------------------------
    2,930,000    NYC Municipal Water Finance Authority RITES 2      12.093 3     06/15/2032        3,139,905
------------------------------------------------------------------------------------------------------------
    2,500,000    NYC Municipal Water Finance Authority RITES 2      12.162 3     06/15/2029        2,701,400
------------------------------------------------------------------------------------------------------------
    7,850,000    NYC Municipal Water Finance Authority RITES 2      12.162 3     06/15/2034        8,508,772
------------------------------------------------------------------------------------------------------------
   14,425,000    NYC Municipal Water Finance Authority RITES 2      12.186 3     06/15/2026       16,138,690
------------------------------------------------------------------------------------------------------------
    2,805,000    NYC Municipal Water Finance Authority RITES 2      12.244 3     06/15/2027        3,183,002
------------------------------------------------------------------------------------------------------------
   11,210,000    NYC Municipal Water Finance Authority RITES 2      12.593 3     06/15/2032       12,448,032
------------------------------------------------------------------------------------------------------------
    5,000,000    NYC Municipal Water Finance Authority RITES 2      12.662 3     06/15/2030        5,689,100
------------------------------------------------------------------------------------------------------------
    3,555,000    NYC Municipal Water Finance Authority RITES 2      12.697 3     06/15/2021        4,331,270
------------------------------------------------------------------------------------------------------------
   18,240,000    NYC Municipal Water Finance Authority RITES 2      12.732 3     06/15/2030       20,753,837
------------------------------------------------------------------------------------------------------------
    4,030,000    NYC Municipal Water Finance Authority RITES 2      12.744 3     06/15/2030        4,585,415
------------------------------------------------------------------------------------------------------------
    5,000,000    NYC Municipal Water Finance Authority RITES 2      12.744 3     06/15/2030        5,689,100
------------------------------------------------------------------------------------------------------------
   17,300,000    NYC Municipal Water Finance Authority RITES 2      14.162 3     06/15/2033       22,923,192
------------------------------------------------------------------------------------------------------------
    3,140,000    NYC Municipal Water Finance Authority RITES 2      14.197 3     06/15/2027        3,966,825
------------------------------------------------------------------------------------------------------------
    2,150,000    NYC TFA RITES 2                                    12.198 3     08/15/2027        2,314,647


                         32 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$      50,000    NYC Trust for Cultural Resources
                 (Museum of American Folk Art)                       6.125%      07/01/2030  $        54,223
------------------------------------------------------------------------------------------------------------
   18,826,356    NYS Certificate of Lease 2                          5.875       01/02/2023       19,536,675
------------------------------------------------------------------------------------------------------------
    1,690,000    NYS DA (4201 Schools Program)                       6.250       07/01/2020        1,937,399
------------------------------------------------------------------------------------------------------------
      350,000    NYS DA (Augustana Lutheran Home)                    5.400       02/01/2031          370,577
------------------------------------------------------------------------------------------------------------
    1,500,000    NYS DA (Augustana Lutheran Home)                    5.500       02/01/2041        1,585,545
------------------------------------------------------------------------------------------------------------
       35,000    NYS DA (Bethel Springvale Home)                     6.000       02/01/2035           36,857
------------------------------------------------------------------------------------------------------------
       40,000    NYS DA (Bishop Henry B. Hucles Nursing Home)        6.000       07/01/2024           42,528
------------------------------------------------------------------------------------------------------------
   14,360,000    NYS DA (Buena Vida Nursing Home)                    5.250       07/01/2028       14,883,135
------------------------------------------------------------------------------------------------------------
    8,435,000    NYS DA (Center for Nursing)                         5.550       08/01/2037        8,883,236
------------------------------------------------------------------------------------------------------------
    2,905,000    NYS DA (Chapel Oaks)                                5.450       07/01/2026        3,034,563
------------------------------------------------------------------------------------------------------------
       25,000    NYS DA (City University)                            5.000       07/01/2023           26,446
------------------------------------------------------------------------------------------------------------
    1,895,000    NYS DA (City University)                            5.250       07/01/2031        1,967,294
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS DA (Concord Nursing Home)                       6.500       07/01/2029        2,730,800
------------------------------------------------------------------------------------------------------------
    1,250,000    NYS DA (D'Youville College)                         5.250       07/01/2025        1,331,513
------------------------------------------------------------------------------------------------------------
      525,000    NYS DA (Dept. of Health)                            5.500       07/01/2021          550,820
------------------------------------------------------------------------------------------------------------
       20,000    NYS DA (Ellis Hospital)                             5.600       08/01/2025           20,716
------------------------------------------------------------------------------------------------------------
   17,630,000    NYS DA (FHA Insured Mtg.), Series B                 0.000 1     08/15/2040        2,114,366
------------------------------------------------------------------------------------------------------------
    6,480,000    NYS DA (Frances Schervier Home &
                  Hospital Obligated Group)                          5.500       07/01/2027        6,936,062
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (Grace Manor Health Care Facility)           6.150       07/01/2018        1,070,780
------------------------------------------------------------------------------------------------------------
    2,000,000    NYS DA (Highland Hospital)                          5.450       08/01/2037        2,148,500
------------------------------------------------------------------------------------------------------------
  140,615,000    NYS DA (Insured Hospital)                           0.000 1     08/15/2036       25,885,815
------------------------------------------------------------------------------------------------------------
   38,650,000    NYS DA (Interfaith Medical Center)                  5.400       02/15/2028       40,094,351
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (Jones Memorial Hospital)                    5.375       08/01/2034        1,039,770
------------------------------------------------------------------------------------------------------------
    3,450,000    NYS DA (L.I. University)                            5.125       09/01/2023        3,606,147
------------------------------------------------------------------------------------------------------------
    1,400,000    NYS DA (L.I. University)                            5.250       09/01/2028        1,460,214
------------------------------------------------------------------------------------------------------------
      235,000    NYS DA (L.I. University)                            5.250       09/01/2028          245,425
------------------------------------------------------------------------------------------------------------
    1,585,000    NYS DA (L.I. University)                            5.500       09/01/2020        1,718,917
------------------------------------------------------------------------------------------------------------
       25,000    NYS DA (Lakeside Memorial Hospital)                 6.000       02/01/2021           26,092
------------------------------------------------------------------------------------------------------------
    9,415,000    NYS DA (Lutheran Social Services of Upstate NY)
                 RITES 2                                             7.999 3     02/01/2038       10,507,140
------------------------------------------------------------------------------------------------------------
    3,115,000    NYS DA (Menorah Home & Hospital) RITES 2           12.609 3     08/01/2038        3,461,388
------------------------------------------------------------------------------------------------------------
    5,825,000    NYS DA (Menorah Home) RITES 2                      12.797 3     08/01/2038        6,415,772
------------------------------------------------------------------------------------------------------------
    3,660,000    NYS DA (Mental Health)                              5.000       02/15/2033        3,722,842
------------------------------------------------------------------------------------------------------------
    4,625,000    NYS DA (Mental Health) RITES 2                     12.244 3     02/15/2023        5,241,050
------------------------------------------------------------------------------------------------------------
    3,465,000    NYS DA (Millard Fillmore Hospital)                  5.375       02/01/2032        3,644,868
------------------------------------------------------------------------------------------------------------
    4,125,000    NYS DA (Miriam Osborn Memorial Home Association)    6.375       07/01/2029        4,529,869
------------------------------------------------------------------------------------------------------------
    2,430,000    NYS DA (Miriam Osborn Memorial Home Association)    6.875       07/01/2019        2,758,609
------------------------------------------------------------------------------------------------------------
    6,860,000    NYS DA (Miriam Osborn Memorial Home Association)    6.875       07/01/2025        7,719,421
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS DA (Montefiore Medical Center)                  5.000       08/01/2033        5,133,300
------------------------------------------------------------------------------------------------------------
    2,375,000    NYS DA (Montefiore Medical Center) RITES 2         14.197 3     08/01/2038        2,847,625


                         33 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   6,800,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.000%      07/01/2014  $     7,036,232
------------------------------------------------------------------------------------------------------------
    3,000,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.500       07/01/2017        3,180,540
------------------------------------------------------------------------------------------------------------
   27,420,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.500       07/01/2025       28,711,208
------------------------------------------------------------------------------------------------------------
   43,630,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.600       07/01/2026       44,426,248
------------------------------------------------------------------------------------------------------------
    8,820,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.625       07/01/2019        9,439,605
------------------------------------------------------------------------------------------------------------
   15,000,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.750       07/01/2020       16,149,600
------------------------------------------------------------------------------------------------------------
    7,280,000    NYS DA (Mt. Sinai/NYU Health)                       6.000       07/01/2026        7,287,498
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS DA (Mt. Sinai/NYU Health)                       6.250       07/01/2022        2,503,550
------------------------------------------------------------------------------------------------------------
    2,850,000    NYS DA (Municipal Health Facilities) RITES 2       12.244 3     01/15/2023        3,258,063
------------------------------------------------------------------------------------------------------------
    4,000,000    NYS DA (North Shore Long Island Jewish Group)       5.500       05/01/2033        4,172,040
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (Norwegian Christian Home & Health
                 Center)                                             5.200       08/01/2036        1,039,730
------------------------------------------------------------------------------------------------------------
    2,000,000    NYS DA (Norwegian Christian Home & Health
                 Center)                                             6.100       08/01/2041        2,226,260
------------------------------------------------------------------------------------------------------------
    4,215,000    NYS DA (Nursing Homes)                              5.200       02/01/2032        4,399,743
------------------------------------------------------------------------------------------------------------
    6,860,000    NYS DA (NY Hospital Medical Center)                 5.600       02/15/2039        7,539,140
------------------------------------------------------------------------------------------------------------
    4,188,875    NYS DA (Our Lady of Mercy Medical Center)
                 Computer Lease  2                                   6.200       08/15/2006        4,140,996
------------------------------------------------------------------------------------------------------------
   10,635,000    NYS DA (Rochester General Hospital) RITES 2         8.649 3     08/01/2033       10,898,961
------------------------------------------------------------------------------------------------------------
      580,000    NYS DA (Sarah Neumann Home)                         5.450       08/01/2027          623,517
------------------------------------------------------------------------------------------------------------
       50,000    NYS DA (School Districts Financing Program),
                 Series B                                            6.000       10/01/2022           57,793
------------------------------------------------------------------------------------------------------------
       25,000    NYS DA (School Districts Financing Program),
                 Series B                                            6.000       10/01/2029           28,757
------------------------------------------------------------------------------------------------------------
   20,400,000    NYS DA (SCSMC/SV/CHSLI Obligated Group)             6.000       07/01/2030       21,692,748
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (GSHMC/MMC/SCHRC Obligated Group)            5.100       07/01/2034        1,005,010
------------------------------------------------------------------------------------------------------------
    9,000,000    NYS DA (St. Agnes Hospital)                         5.400       02/15/2025        9,398,430
------------------------------------------------------------------------------------------------------------
    2,470,000    NYS DA (St. Barnabas Hospital)                      5.450       08/01/2035        2,635,786
------------------------------------------------------------------------------------------------------------
      905,000    NYS DA (St. Catherine of Siena Medical Center)      6.000       07/01/2030          964,603
------------------------------------------------------------------------------------------------------------
    1,750,000    NYS DA (St. Clare's Hospital)                       5.300       02/15/2019        1,833,108
------------------------------------------------------------------------------------------------------------
    2,970,000    NYS DA (St. Clare's Hospital)                       5.400       02/15/2025        3,101,482
------------------------------------------------------------------------------------------------------------
    2,580,000    NYS DA (St. James Mercy Hospital)                   5.400       02/01/2038        2,679,485
------------------------------------------------------------------------------------------------------------
    1,500,000    NYS DA (St. Thomas Aquinas College)                 5.250       07/01/2028        1,544,235
------------------------------------------------------------------------------------------------------------
    3,885,000    NYS DA (St. Vincent DePaul Residence)               5.300       07/01/2018        4,100,773
------------------------------------------------------------------------------------------------------------
      130,000    NYS DA (St. Vincent's Hospital & Medical
                 Center)                                             7.400       08/01/2030          135,772
------------------------------------------------------------------------------------------------------------
       95,000    NYS DA (State University Educational
                 Facilities)                                         6.000       05/15/2017           97,332
------------------------------------------------------------------------------------------------------------
    1,700,000    NYS DA (Vassar Brothers)                            5.375       07/01/2025        1,821,074
------------------------------------------------------------------------------------------------------------
    7,030,000    NYS DA (White Plains Hospital)                      5.375       02/15/2043        7,357,528
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS DA (Willow Towers)                              5.400       02/01/2034        2,658,800
------------------------------------------------------------------------------------------------------------
   26,070,000    NYS DA (Wyckoff Heights Medical Center)             5.300       08/15/2021       27,240,804


                         34 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   5,000,000    NYS DA RITES 2                                     15.201% 3    02/01/2012  $     7,365,700
------------------------------------------------------------------------------------------------------------
    4,095,000    NYS EFC (Clean Water & Drinking Revolving
                 Funds)                                              5.400       07/15/2021        4,455,032
------------------------------------------------------------------------------------------------------------
    1,090,000    NYS EFC (Consolidated Water Company)                7.150       11/01/2014        1,096,834
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS EFC (NYC Municipal Water Finance Authority)     5.000       06/15/2034        2,581,725
------------------------------------------------------------------------------------------------------------
    7,500,000    NYS EFC (NYS Water Services)                        5.950       01/15/2020        8,178,975
------------------------------------------------------------------------------------------------------------
    2,340,000    NYS EFC (NYS Water Services)                        6.000       01/15/2031        2,496,476
------------------------------------------------------------------------------------------------------------
       25,000    NYS EFC (NYS Water Services)                        7.500       03/15/2011           25,110
------------------------------------------------------------------------------------------------------------
   11,895,000    NYS EFC (Occidental Petroleum)                      5.700       09/01/2028       11,920,574
------------------------------------------------------------------------------------------------------------
   15,300,000    NYS EFC (Occidental Petroleum)                      6.100       11/01/2030       15,769,710
------------------------------------------------------------------------------------------------------------
    4,700,000    NYS ERDA (Brooklyn Union Gas) RIBS                  9.323 3     07/08/2026        4,811,625
------------------------------------------------------------------------------------------------------------
    7,000,000    NYS ERDA (Brooklyn Union Gas) RIBS                 10.576 3     04/01/2020        8,677,550
------------------------------------------------------------------------------------------------------------
   16,300,000    NYS ERDA (Brooklyn Union Gas) RIBS                 11.673 3     07/01/2026       18,767,005
------------------------------------------------------------------------------------------------------------
      210,000    NYS ERDA (Central Hudson Gas & Electric)            5.450       08/01/2027          227,816
------------------------------------------------------------------------------------------------------------
       60,000    NYS ERDA (Corning Natural Gas)                      8.250       12/01/2018           62,160
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS ERDA (LILCO)                                    5.150       03/01/2016        5,105,050
------------------------------------------------------------------------------------------------------------
   23,000,000    NYS ERDA (LILCO)                                    5.300       11/01/2023       23,920,690
------------------------------------------------------------------------------------------------------------
      300,000    NYS ERDA (LILCO)                                    5.300       10/01/2024          311,358
------------------------------------------------------------------------------------------------------------
    3,485,000    NYS ERDA (NIMO) RITES 2                            12.844 3     11/01/2025        4,395,770
------------------------------------------------------------------------------------------------------------
    8,250,000    NYS ERDA (NYSEG)                                    6.150       07/01/2026        8,566,140
------------------------------------------------------------------------------------------------------------
    3,625,000    NYS ERDA (RG&E) Residual Certificates 2            16.900 3     09/01/2033        5,045,565
------------------------------------------------------------------------------------------------------------
    3,175,000    NYS HFA (Children's Rescue)                         7.625       05/01/2018        3,176,429
------------------------------------------------------------------------------------------------------------
       20,000    NYS HFA (General Hsg.)                              6.600       11/01/2008           20,679
------------------------------------------------------------------------------------------------------------
    2,640,000    NYS HFA (HELP-Bronx Hsg.)                           8.050       11/01/2005        2,698,793
------------------------------------------------------------------------------------------------------------
      340,000    NYS HFA (HELP-Suffolk Hsg.)                         8.100       11/01/2005          346,212
------------------------------------------------------------------------------------------------------------
      200,000    NYS HFA (Hospital & Nursing Home)                   7.000       11/01/2017          246,888
------------------------------------------------------------------------------------------------------------
        5,000    NYS HFA (Meadow Manor)                              7.750       11/01/2019            5,013
------------------------------------------------------------------------------------------------------------
       35,000    NYS HFA (Multifamily Hsg.)                          0.000 1     11/01/2016           18,043
------------------------------------------------------------------------------------------------------------
      745,000    NYS HFA (Multifamily Hsg.)                          5.250       11/15/2028          759,453
------------------------------------------------------------------------------------------------------------
    1,340,000    NYS HFA (Multifamily Hsg.)                          5.300       08/15/2024        1,383,805
------------------------------------------------------------------------------------------------------------
    1,700,000    NYS HFA (Multifamily Hsg.)                          5.300       11/15/2039        1,728,594
------------------------------------------------------------------------------------------------------------
    1,070,000    NYS HFA (Multifamily Hsg.)                          5.350       08/15/2020        1,130,701
------------------------------------------------------------------------------------------------------------
    2,860,000    NYS HFA (Multifamily Hsg.)                          5.350       08/15/2031        2,924,607
------------------------------------------------------------------------------------------------------------
    2,080,000    NYS HFA (Multifamily Hsg.)                          5.375       02/15/2035        2,133,643
------------------------------------------------------------------------------------------------------------
    3,250,000    NYS HFA (Multifamily Hsg.)                          5.450       08/15/2032        3,362,028
------------------------------------------------------------------------------------------------------------
    2,075,000    NYS HFA (Multifamily Hsg.)                          5.500       08/15/2030        2,102,224
------------------------------------------------------------------------------------------------------------
    1,215,000    NYS HFA (Multifamily Hsg.)                          5.550       08/15/2019        1,280,598
------------------------------------------------------------------------------------------------------------
    1,385,000    NYS HFA (Multifamily Hsg.)                          5.600       08/15/2019        1,461,687
------------------------------------------------------------------------------------------------------------
    1,240,000    NYS HFA (Multifamily Hsg.)                          5.600       02/15/2026        1,280,523
------------------------------------------------------------------------------------------------------------
    1,730,000    NYS HFA (Multifamily Hsg.)                          5.600       08/15/2033        1,804,944
------------------------------------------------------------------------------------------------------------
    1,190,000    NYS HFA (Multifamily Hsg.)                          5.650       08/15/2030        1,236,612
------------------------------------------------------------------------------------------------------------
    3,200,000    NYS HFA (Multifamily Hsg.)                          5.650       08/15/2030        3,311,904


                         35 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,000,000    NYS HFA (Multifamily Hsg.)                          5.650%      08/15/2031  $     1,038,750
------------------------------------------------------------------------------------------------------------
    1,710,000    NYS HFA (Multifamily Hsg.)                          5.650       02/15/2034        1,758,188
------------------------------------------------------------------------------------------------------------
    2,120,000    NYS HFA (Multifamily Hsg.)                          5.700       08/15/2033        2,207,386
------------------------------------------------------------------------------------------------------------
       95,000    NYS HFA (Multifamily Hsg.)                          5.950       08/15/2024           95,204
------------------------------------------------------------------------------------------------------------
    1,285,000    NYS HFA (Multifamily Hsg.)                          6.100       11/15/2036        1,354,274
------------------------------------------------------------------------------------------------------------
    4,700,000    NYS HFA (Multifamily Hsg.)                          6.125       08/15/2038        4,884,992
------------------------------------------------------------------------------------------------------------
       40,000    NYS HFA (Multifamily Hsg.)                          6.200       08/15/2012           40,064
------------------------------------------------------------------------------------------------------------
       25,000    NYS HFA (Multifamily Hsg.)                          6.200       08/15/2016           26,103
------------------------------------------------------------------------------------------------------------
      745,000    NYS HFA (Multifamily Hsg.)                          6.250       02/15/2031          772,870
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS HFA (Multifamily Hsg.)                          6.300       08/15/2026        5,138,800
------------------------------------------------------------------------------------------------------------
    1,255,000    NYS HFA (Multifamily Hsg.)                          6.400       11/15/2027        1,308,664
------------------------------------------------------------------------------------------------------------
    2,095,000    NYS HFA (Multifamily Hsg.)                          6.500       08/15/2024        2,097,828
------------------------------------------------------------------------------------------------------------
    3,240,000    NYS HFA (Multifamily Hsg.)                          6.700       08/15/2025        3,246,415
------------------------------------------------------------------------------------------------------------
    5,650,000    NYS HFA (Multifamily Hsg.)                          6.750       11/15/2036        5,858,994
------------------------------------------------------------------------------------------------------------
       20,000    NYS HFA (Multifamily Hsg.)                          6.950       08/15/2012           20,490
------------------------------------------------------------------------------------------------------------
    5,400,000    NYS HFA (Multifamily Hsg.)                          7.050       08/15/2024        5,408,208
------------------------------------------------------------------------------------------------------------
      320,000    NYS HFA (Multifamily Hsg.)                          7.550       11/01/2029          326,176
------------------------------------------------------------------------------------------------------------
    2,805,000    NYS HFA (NH&HC) RITES 2                            12.839 3     11/01/2016        3,201,122
------------------------------------------------------------------------------------------------------------
        5,000    NYS HFA (Nonprofit Hsg.)                            6.400       11/01/2010            5,097
------------------------------------------------------------------------------------------------------------
      760,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2009          773,802
------------------------------------------------------------------------------------------------------------
      825,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2010          839,982
------------------------------------------------------------------------------------------------------------
      895,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2011          911,253
------------------------------------------------------------------------------------------------------------
      965,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2012          982,524
------------------------------------------------------------------------------------------------------------
    1,040,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2013        1,058,886
------------------------------------------------------------------------------------------------------------
    1,225,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2014        1,247,246
------------------------------------------------------------------------------------------------------------
    1,325,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2015        1,349,062
------------------------------------------------------------------------------------------------------------
    1,440,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2016        1,466,150
------------------------------------------------------------------------------------------------------------
    1,565,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2017        1,593,420
------------------------------------------------------------------------------------------------------------
    1,690,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2018        1,720,690
------------------------------------------------------------------------------------------------------------
    1,020,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2019        1,038,523
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS HFA (Phillips Village)                          7.750       08/15/2017        5,119,450
------------------------------------------------------------------------------------------------------------
       70,000    NYS HFA (Service Contract)                          5.375       03/15/2023           70,843
------------------------------------------------------------------------------------------------------------
    5,600,000    NYS HFA (Service Contract)                          5.500       09/15/2022        6,035,288
------------------------------------------------------------------------------------------------------------
    5,525,000    NYS HFA (Service Contract)                          5.500       03/15/2025        5,943,795
------------------------------------------------------------------------------------------------------------
      255,000    NYS HFA (Service Contract)                          6.500       03/15/2025          264,223
------------------------------------------------------------------------------------------------------------
      475,000    NYS HFA (Shorehill Hsg.)                            7.500       05/01/2008          475,565
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS HFA (Watergate II)                              4.750       02/15/2034          974,540
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS HFA (Watergate II)                              4.900       02/15/2045          940,420
------------------------------------------------------------------------------------------------------------
      400,000    NYS LGSC (SCSB) 2                                   7.250       12/15/2011          407,496
------------------------------------------------------------------------------------------------------------
      810,000    NYS LGSC (SCSB) 2                                   7.375       12/15/2016          841,898
------------------------------------------------------------------------------------------------------------
      980,000    NYS LGSC (SCSB) 2                                   7.750       12/15/2021        1,021,954


                         36 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,045,000    NYS Medcare (Central Suffolk Hospital)              6.125%      11/01/2016  $       832,687
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS Medcare (Hospital & Nursing Home)               6.375       08/15/2033        1,004,430
------------------------------------------------------------------------------------------------------------
    2,050,000    NYS Medcare (Hospital & Nursing Home)               7.400       11/01/2016        2,110,475
------------------------------------------------------------------------------------------------------------
    1,910,000    NYS Medcare (Hospital & Nursing Home)               9.375       11/01/2016        2,005,214
------------------------------------------------------------------------------------------------------------
      440,000    NYS Medcare (Hospital & Nursing Home)              10.000       11/01/2006          463,892
------------------------------------------------------------------------------------------------------------
    1,670,000    NYS Medcare (M.G. Nursing Home)                     6.375       02/15/2035        1,739,606
------------------------------------------------------------------------------------------------------------
      330,000    NYS Medcare (Montefiore Medical Center)             5.750       02/15/2025          337,811
------------------------------------------------------------------------------------------------------------
       25,000    NYS Medcare (Secured Hospital)                      6.250       02/15/2024           25,381
------------------------------------------------------------------------------------------------------------
   44,470,000    NYS Medcare (St. Luke's Hospital)                   5.700       02/15/2029       45,025,875
------------------------------------------------------------------------------------------------------------
   12,500,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.592 3     02/15/2029       12,812,500
------------------------------------------------------------------------------------------------------------
    8,400,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.649 3     02/15/2029        8,610,000
------------------------------------------------------------------------------------------------------------
    5,750,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.649 3     02/15/2029        5,893,750
------------------------------------------------------------------------------------------------------------
   10,000,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.684 3     02/15/2029       10,250,000
------------------------------------------------------------------------------------------------------------
   40,000,000    NYS Thruway Authority Permanently Linked
                 Convertible INFLOS & VDRNS                          5.000       01/01/2024       40,264,000
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS Thruway Authority RITES 2                      12.197 3     01/01/2024        2,566,000
------------------------------------------------------------------------------------------------------------
    7,140,000    NYS Thruway Authority RITES 2                      12.232 3     01/01/2025        7,920,116
------------------------------------------------------------------------------------------------------------
        5,000    NYS UDC (Correctional Facilities)                   0.000 1     01/01/2013            3,713
------------------------------------------------------------------------------------------------------------
    9,000,000    NYS UDC (State Personal Income Tax)                 5.125       03/15/2029       10,158,750
------------------------------------------------------------------------------------------------------------
    5,480,000    Oneida County IDA (Bonide Products)                 6.250       11/01/2018        5,375,606
------------------------------------------------------------------------------------------------------------
      625,000    Oneida County IDA (Mobile Climate Control)          8.000       11/01/2008          635,706
------------------------------------------------------------------------------------------------------------
    2,825,000    Oneida County IDA (Mobile Climate Control)          8.750       11/01/2018        2,887,207
------------------------------------------------------------------------------------------------------------
      450,000    Oneida County IDA
                 (Mohawk Valley Handicapped Services)                5.300       03/15/2019          468,135
------------------------------------------------------------------------------------------------------------
      740,000    Oneida County IDA
                 (Mohawk Valley Handicapped Services)                5.350       03/15/2029          750,464
------------------------------------------------------------------------------------------------------------
    1,190,000    Oneida County IDA (Presbyterian Home)               5.250       03/01/2019        1,234,006
------------------------------------------------------------------------------------------------------------
    1,015,000    Oneida County IDA (Presbyterian Home)               6.100       06/01/2020        1,110,725
------------------------------------------------------------------------------------------------------------
    4,000,000    Onondaga County IDA (Air Cargo)                     6.125       01/01/2032        4,064,400
------------------------------------------------------------------------------------------------------------
    2,000,000    Onondaga County IDA (Air Cargo)                     7.250       01/01/2032        2,046,180
------------------------------------------------------------------------------------------------------------
      490,000    Onondaga County IDA (Coltec Industries)             7.250       06/01/2008          498,428
------------------------------------------------------------------------------------------------------------
      770,000    Onondaga County IDA (Coltec Industries)             9.875       10/01/2010          808,115
------------------------------------------------------------------------------------------------------------
    1,460,000    Onondaga County IDA (Community General
                 Hospital)                                           5.500       11/01/2018        1,317,708
------------------------------------------------------------------------------------------------------------
    7,685,000    Onondaga County IDA (Community General
                 Hospital)                                           6.625       01/01/2018        7,691,302
------------------------------------------------------------------------------------------------------------
    4,700,000    Onondaga County IDA (Le Moyne College)              5.625       12/01/2021        5,061,618
------------------------------------------------------------------------------------------------------------
   11,500,000    Onondaga County IDA (Solvay Paperboard)             6.800       11/01/2014       12,003,355
------------------------------------------------------------------------------------------------------------
   67,200,000    Onondaga County IDA (Solvay Paperboard)             7.000       11/01/2030       70,412,160
------------------------------------------------------------------------------------------------------------
      750,000    Onondaga County IDA (Syracuse Home)                 5.200       12/01/2018          783,270
------------------------------------------------------------------------------------------------------------
      500,000    Onondaga County IDA Sewage Waste Facilities
                 (Anheuser-Busch Companies)                          6.250       12/01/2034          548,315
------------------------------------------------------------------------------------------------------------
   66,449,598    Onondaga County Res Rec                             0.000 7     05/01/2022       28,526,812
------------------------------------------------------------------------------------------------------------
   41,580,000    Onondaga County Res Rec                             5.000       05/01/2015       36,751,730


                         37 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     512,000    Ontario County IDA (Ontario Design)                 6.500%      11/01/2005  $       512,732
------------------------------------------------------------------------------------------------------------
      430,000    Orange County IDA (Adult Homes at Erie Station)     7.000       08/01/2021          437,220
------------------------------------------------------------------------------------------------------------
    2,500,000    Orange County IDA (Arden Hill Life Care Center)     7.000       08/01/2021        2,541,975
------------------------------------------------------------------------------------------------------------
    2,300,000    Orange County IDA (Arden Hill Life Care Center)     7.000       08/01/2031        2,308,326
------------------------------------------------------------------------------------------------------------
    2,090,000    Orange County IDA (Arden Hill Life Care Center)     7.000       08/01/2031        2,097,566
------------------------------------------------------------------------------------------------------------
    2,705,000    Orange County IDA (Glen Arden)                      5.625       01/01/2018        2,438,314
------------------------------------------------------------------------------------------------------------
    5,590,000    Orange County IDA (Glen Arden)                      5.700       01/01/2028        4,654,290
------------------------------------------------------------------------------------------------------------
    3,000,000    Orange County IDA (Kingston Manufacturing) 2        8.000       11/01/2017        1,457,910
------------------------------------------------------------------------------------------------------------
      385,000    Orange County IDA (Mental Retardation Project)      7.800       07/01/2011          386,063
------------------------------------------------------------------------------------------------------------
    1,715,000    Orange County IDA
                 (St. Luke's Cornwall Hospital Obligated Group)      5.375       12/01/2021        1,826,869
------------------------------------------------------------------------------------------------------------
    6,330,000    Orange County IDA
                 (St. Luke's Cornwall Hospital Obligated Group)      5.375       12/01/2026        6,669,351
------------------------------------------------------------------------------------------------------------
    2,235,000    Orange County IDA
                 (St. Luke's Cornwall Hospital Obligated Group)      5.375       12/01/2026        2,354,818
------------------------------------------------------------------------------------------------------------
    7,745,000    Orange County IDA (Tuxedo Place) 2                  7.000       08/01/2032        5,750,430
------------------------------------------------------------------------------------------------------------
    2,500,000    Orange County IDA (Tuxedo Place) 2                  7.000       08/01/2033        1,855,675
------------------------------------------------------------------------------------------------------------
    2,755,000    Oswego County IDA (Bishop's Common)                 5.375       02/01/2049        2,910,134
------------------------------------------------------------------------------------------------------------
    3,260,000    Oswego County IDA (Seneca Hill Manor)               5.650       08/01/2037        3,535,535
------------------------------------------------------------------------------------------------------------
    6,680,000    Otsego County IDA (Hartwick College)                5.900       07/01/2022        6,098,840
------------------------------------------------------------------------------------------------------------
    2,970,000    Otsego County IDA (Mary Imogene Bassett
                 Hospital)                                           5.350       11/01/2020        3,124,292
------------------------------------------------------------------------------------------------------------
   11,040,000    Peekskill IDA (Drum Hill)                           6.375       10/01/2028        9,905,750
------------------------------------------------------------------------------------------------------------
      617,716    Peekskill IDA (Karta)                               9.000       07/01/2010          624,258
------------------------------------------------------------------------------------------------------------
    4,070,000    Port Authority NY/NJ (Continental Airlines)         9.000       12/01/2006        4,125,759
------------------------------------------------------------------------------------------------------------
    1,770,000    Port Authority NY/NJ (Continental Airlines)         9.000       12/01/2010        1,794,249
------------------------------------------------------------------------------------------------------------
   53,250,000    Port Authority NY/NJ (Continental Airlines)         9.125       12/01/2015       53,979,525
------------------------------------------------------------------------------------------------------------
      795,000    Port Authority NY/NJ (Delta Air Lines)              6.950       06/01/2008          793,720
------------------------------------------------------------------------------------------------------------
      285,000    Port Authority NY/NJ (KIAC)                         6.750       10/01/2011          297,819
------------------------------------------------------------------------------------------------------------
   19,395,000    Port Authority NY/NJ (KIAC)                         6.750       10/01/2019       20,208,620
------------------------------------------------------------------------------------------------------------
   20,000,000    Port Authority NY/NJ RITES 2                       12.097 3     09/15/2013       21,744,800
------------------------------------------------------------------------------------------------------------
      170,000    Port Authority NY/NJ, 97th Series                   6.400       07/15/2015          171,962
------------------------------------------------------------------------------------------------------------
      190,000    Port Authority NY/NJ, 114th Series                  5.000       08/01/2024          193,777
------------------------------------------------------------------------------------------------------------
    3,000,000    Port Authority NY/NJ, 127th Series                  5.250       12/15/2032        3,109,890
------------------------------------------------------------------------------------------------------------
    5,000,000    Port Authority NY/NJ, 136th Series                  5.125       05/01/2034        5,132,500
------------------------------------------------------------------------------------------------------------
   19,175,000    Port Authority NY/NJ, 136th Series                  5.375       11/01/2028       20,263,757
------------------------------------------------------------------------------------------------------------
   22,855,000    Port Authority NY/NJ, 136th Series                  5.500       11/01/2029       24,486,618
------------------------------------------------------------------------------------------------------------
    2,755,000    Poughkeepsie IDA
                 (Eastman & Bixby Redevelopment Corp.)               6.000       08/01/2032        2,932,174
------------------------------------------------------------------------------------------------------------
    1,990,000    Putnam County IDA (Brewster Plastics)               8.500       12/01/2016        2,052,665
------------------------------------------------------------------------------------------------------------
    1,500,000    Rensselaer County IDA (Franciscan Heights)          5.375       12/01/2036        1,546,920
------------------------------------------------------------------------------------------------------------
    6,385,000    Rensselaer County Tobacco Asset Securitization
                 Corp.                                               5.625       06/01/2035        5,872,668
------------------------------------------------------------------------------------------------------------
    7,300,000    Rensselaer County Tobacco Asset Securitization
                 Corp.                                               5.750       06/01/2043        6,696,582


                         38 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$       5,000    Rensselaer Hsg. Authority (Renwyck)                 7.650%      01/01/2011  $         5,061
------------------------------------------------------------------------------------------------------------
   20,000,000    Rensselaer Municipal Leasing Corp.
                 (Rensselaer County Nursing Home)                    6.900       06/01/2024       20,358,400
------------------------------------------------------------------------------------------------------------
    1,785,000    Riverhead IDA (Michael Reilly Design) 4,5           8.625       02/01/2012        1,430,303
------------------------------------------------------------------------------------------------------------
      510,000    Riverhead IDA (Michael Reilly Design) 4,5           8.625       02/01/2012          408,510
------------------------------------------------------------------------------------------------------------
    4,535,000    Riverhead IDA (Michael Reilly Design) 4,5           8.875       02/01/2032        3,605,642
------------------------------------------------------------------------------------------------------------
       40,000    Rochester Hsg. Authority (Crossroads
                 Apartments)                                         7.300       07/01/2005           40,263
------------------------------------------------------------------------------------------------------------
   15,860,000    Rochester Hsg. Authority (Crossroads
                 Apartments)                                         7.700       01/01/2017       16,469,500
------------------------------------------------------------------------------------------------------------
    6,790,000    Rochester Museum & Science Center                   6.125       12/01/2015        6,824,425
------------------------------------------------------------------------------------------------------------
    1,655,000    Rockland County IDA (Dominican College)             5.900       05/01/2010        1,850,787
------------------------------------------------------------------------------------------------------------
    5,000,000    Rockland County IDA (Dominican College)             6.250       05/01/2028        5,646,200
------------------------------------------------------------------------------------------------------------
    9,225,000    Rockland County Tobacco Asset Securitization
                 Corp.                                               5.625       08/15/2035        8,354,990
------------------------------------------------------------------------------------------------------------
   10,100,000    Rockland County Tobacco Asset Securitization
                 Corp.                                               5.750       08/15/2043        9,196,656
------------------------------------------------------------------------------------------------------------
   25,850,000    Sales Tax Asset Receivables Corp., Series A         5.000       10/15/2032       26,727,866
------------------------------------------------------------------------------------------------------------
    1,160,000    Saratoga County IDA (ARC)                           8.400       03/01/2013        1,163,619
------------------------------------------------------------------------------------------------------------
    3,000,000    Saratoga County IDA (Saratoga Hospital)             5.125       12/01/2033        3,095,190
------------------------------------------------------------------------------------------------------------
   11,311,843    Schenectady GO                                      6.500       05/27/2005       11,300,418
------------------------------------------------------------------------------------------------------------
    1,635,000    Schenectady IDA (Schaffer Heights Hsg.)             6.000       11/01/2030        1,764,901
------------------------------------------------------------------------------------------------------------
    3,335,000    Schenectady Metroplex Devel. Authority,
                 Series A                                            5.375       12/15/2021        3,543,137
------------------------------------------------------------------------------------------------------------
      292,000    Schroon Lake Fire District 2                        7.250       03/01/2009          292,821
------------------------------------------------------------------------------------------------------------
      175,000    Scotia Hsg. Authority (Holyrood House)              7.000       06/01/2009          179,575
------------------------------------------------------------------------------------------------------------
    2,475,000    SONYMA, Series 29                                   5.450       04/01/2031        2,538,682
------------------------------------------------------------------------------------------------------------
       15,000    SONYMA, Series 30-C2                                5.800       10/01/2025           15,162
------------------------------------------------------------------------------------------------------------
    6,895,000    SONYMA, Series 65                                   5.850       10/01/2028        7,164,250
------------------------------------------------------------------------------------------------------------
       20,000    SONYMA, Series 66                                   5.700       10/01/2027           20,806
------------------------------------------------------------------------------------------------------------
   18,905,000    SONYMA, Series 67                                   5.800       10/01/2028       19,828,887
------------------------------------------------------------------------------------------------------------
    3,395,000    SONYMA, Series 69                                   5.400       10/01/2019        3,527,880
------------------------------------------------------------------------------------------------------------
    5,330,000    SONYMA, Series 69                                   5.500       10/01/2028        5,468,900
------------------------------------------------------------------------------------------------------------
    3,940,000    SONYMA, Series 69 RITES 2                           8.364 3     10/01/2028        4,145,353
------------------------------------------------------------------------------------------------------------
   13,100,000    SONYMA, Series 71                                   5.400       04/01/2029       13,410,601
------------------------------------------------------------------------------------------------------------
   10,150,000    SONYMA, Series 71 RITES 2                           8.164 3     04/01/2029       10,631,313
------------------------------------------------------------------------------------------------------------
    5,500,000    SONYMA, Series 73 RITES 2                          13.340 3     10/01/2028        5,960,900
------------------------------------------------------------------------------------------------------------
    1,675,000    SONYMA, Series 73-A                                 5.300       10/01/2028        1,710,091
------------------------------------------------------------------------------------------------------------
   10,175,000    SONYMA, Series 79                                   5.300       04/01/2029       10,393,559
------------------------------------------------------------------------------------------------------------
      125,000    SONYMA, Series 82                                   5.650       04/01/2030          131,153
------------------------------------------------------------------------------------------------------------
    5,945,000    SONYMA, Series 97                                   5.500       04/01/2031        6,123,291
------------------------------------------------------------------------------------------------------------
    2,400,000    SONYMA, Series 106                                  5.100       04/01/2023        2,470,272
------------------------------------------------------------------------------------------------------------
      300,000    St. Lawrence County IDA (Clarkson University)       5.125       07/01/2021          309,471
------------------------------------------------------------------------------------------------------------
    1,315,000    St. Lawrence County IDA (Clarkson University)       5.250       07/01/2031        1,345,903
------------------------------------------------------------------------------------------------------------
    2,370,000    St. Lawrence County IDA (Clarkson University)       5.500       07/01/2029        2,470,725
------------------------------------------------------------------------------------------------------------
    2,805,000    St. Lawrence County IDA (Hepburn Medical
                 Center)                                             5.375       12/01/2019        2,979,864


                         39 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,595,000    St. Lawrence County IDA
                 (Hepburn Medical Center)                            5.500%      12/01/2024  $     3,814,187
------------------------------------------------------------------------------------------------------------
    1,360,000    Suffolk County IDA (ACLD)                           6.000       12/01/2019        1,374,334
------------------------------------------------------------------------------------------------------------
      590,000    Suffolk County IDA (ALIA-ACDS)                      7.125       06/01/2017          634,197
------------------------------------------------------------------------------------------------------------
      375,000    Suffolk County IDA (ALIA-ACLD)                      6.375       06/01/2014          377,865
------------------------------------------------------------------------------------------------------------
    1,310,000    Suffolk County IDA (ALIA-ACLD)                      6.500       03/01/2018        1,346,929
------------------------------------------------------------------------------------------------------------
      745,000    Suffolk County IDA (ALIA-ACLD)                      7.500       09/01/2015          812,095
------------------------------------------------------------------------------------------------------------
      305,000    Suffolk County IDA (ALIA-ADD)                       6.950       12/01/2014          327,823
------------------------------------------------------------------------------------------------------------
      535,000    Suffolk County IDA (ALIA-ADD)                       7.125       06/01/2017          575,077
------------------------------------------------------------------------------------------------------------
      475,000    Suffolk County IDA (ALIA-ADD)                       7.500       09/01/2015          517,779
------------------------------------------------------------------------------------------------------------
    1,490,000    Suffolk County IDA (ALIA-DDI) 2                     6.375       06/01/2014        1,548,155
------------------------------------------------------------------------------------------------------------
      100,000    Suffolk County IDA (ALIA-DDI) 2                     7.500       09/01/2015          109,006
------------------------------------------------------------------------------------------------------------
      825,000    Suffolk County IDA (ALIA-FREE)                      6.375       06/01/2014          857,200
------------------------------------------------------------------------------------------------------------
    1,890,000    Suffolk County IDA (ALIA-FREE)                      6.950       12/01/2014        2,031,429
------------------------------------------------------------------------------------------------------------
    4,585,000    Suffolk County IDA (ALIA-FREE)                      7.125       06/01/2017        4,928,462
------------------------------------------------------------------------------------------------------------
      665,000    Suffolk County IDA (ALIA-IGHL)                      6.375       06/01/2014          670,081
------------------------------------------------------------------------------------------------------------
      645,000    Suffolk County IDA (ALIA-IGHL)                      6.950       12/01/2014          693,265
------------------------------------------------------------------------------------------------------------
    1,235,000    Suffolk County IDA (ALIA-IGHL)                      7.125       06/01/2017        1,327,514
------------------------------------------------------------------------------------------------------------
    1,945,000    Suffolk County IDA (ALIA-IGHL)                      7.250       12/01/2033        2,002,591
------------------------------------------------------------------------------------------------------------
      285,000    Suffolk County IDA (ALIA-IGHL)                      7.500       09/01/2015          310,667
------------------------------------------------------------------------------------------------------------
      390,000    Suffolk County IDA
                 (ALIA- L.I. Head Injury Association)                6.375       06/01/2014          394,138
------------------------------------------------------------------------------------------------------------
      770,000    Suffolk County IDA
                 (ALIA- L.I. Head Injury Association)                6.950       12/01/2014          827,619
------------------------------------------------------------------------------------------------------------
      300,000    Suffolk County IDA
                 (ALIA- L.I. Head Injury Association)                7.500       09/01/2015          327,018
------------------------------------------------------------------------------------------------------------
      650,000    Suffolk County IDA (ALIA-MCH)                       6.375       06/01/2014          654,966
------------------------------------------------------------------------------------------------------------
    1,830,000    Suffolk County IDA (ALIA-MCH)                       6.950       12/01/2014        1,966,939
------------------------------------------------------------------------------------------------------------
    1,510,000    Suffolk County IDA (ALIA-MCH)                       7.125       06/01/2017        1,623,114
------------------------------------------------------------------------------------------------------------
      745,000    Suffolk County IDA (ALIA-NYS ARC)                   7.500       09/01/2015          812,095
------------------------------------------------------------------------------------------------------------
      470,000    Suffolk County IDA (ALIA-Pederson-Krag Center)      8.375       06/01/2016          514,960
------------------------------------------------------------------------------------------------------------
      600,000    Suffolk County IDA (ALIA-SMCFS)                     7.500       09/01/2015          654,036
------------------------------------------------------------------------------------------------------------
      710,000    Suffolk County IDA (ALIA-Suffolk Hostels)           7.500       09/01/2015          773,943
------------------------------------------------------------------------------------------------------------
      275,000    Suffolk County IDA (ALIA-UCPAGS)                    6.375       06/01/2014          277,101
------------------------------------------------------------------------------------------------------------
    1,120,000    Suffolk County IDA (ALIA-UCPAGS)                    6.950       12/01/2014        1,203,810
------------------------------------------------------------------------------------------------------------
      890,000    Suffolk County IDA (ALIA-UCPAGS)                    7.000       06/01/2016          955,424
------------------------------------------------------------------------------------------------------------
      500,000    Suffolk County IDA (ALIA-UCPAGS)                    7.500       09/01/2015          545,030
------------------------------------------------------------------------------------------------------------
      400,000    Suffolk County IDA (ALIA-WORCA)                     6.950       12/01/2014          429,932
------------------------------------------------------------------------------------------------------------
      950,000    Suffolk County IDA (ALIA-WORCA)                     7.125       06/01/2017        1,021,165
------------------------------------------------------------------------------------------------------------
      590,000    Suffolk County IDA (ALIA-WORCA)                     7.500       09/01/2015          643,135
------------------------------------------------------------------------------------------------------------
    7,293,119    Suffolk County IDA (Camelot Village) 2,4,5          7.900       11/01/2031            7,293
------------------------------------------------------------------------------------------------------------
      275,000    Suffolk County IDA (CCSSVD)                         7.000       04/01/2010          288,635
------------------------------------------------------------------------------------------------------------
    2,595,000    Suffolk County IDA (CCSSVD)                         8.000       04/01/2030        2,756,669
------------------------------------------------------------------------------------------------------------
      255,000    Suffolk County IDA (DDI)                            6.000       12/01/2019          257,688
------------------------------------------------------------------------------------------------------------
      820,000    Suffolk County IDA (DDI) 2                          6.250       03/01/2009          816,105


                         40 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   5,025,000    Suffolk County IDA (DDI) 2                          7.250%      03/01/2024  $     4,951,987
------------------------------------------------------------------------------------------------------------
    9,180,000    Suffolk County IDA (DDI)                            8.750       03/01/2023        9,394,812
------------------------------------------------------------------------------------------------------------
    2,605,000    Suffolk County IDA (Dowling College)                6.625       06/01/2024        2,608,465
------------------------------------------------------------------------------------------------------------
    3,240,000    Suffolk County IDA (Dowling College)                6.700       12/01/2020        3,265,175
------------------------------------------------------------------------------------------------------------
    1,925,000    Suffolk County IDA (Family Residence)               6.000       12/01/2019        1,945,290
------------------------------------------------------------------------------------------------------------
    1,345,000    Suffolk County IDA (Family Services League)         5.000       11/01/2027        1,359,176
------------------------------------------------------------------------------------------------------------
      830,000    Suffolk County IDA (Family Services League)         5.000       11/01/2034          829,817
------------------------------------------------------------------------------------------------------------
      225,000    Suffolk County IDA (Federation of
                 Organizations)                                      7.625       04/01/2010          232,385
------------------------------------------------------------------------------------------------------------
    2,195,000    Suffolk County IDA (Federation of
                 Organizations)                                      8.125       04/01/2030        2,293,292
------------------------------------------------------------------------------------------------------------
    2,500,000    Suffolk County IDA (Gurwin Jewish-Phase II)         6.700       05/01/2039        2,575,350
------------------------------------------------------------------------------------------------------------
    3,860,000    Suffolk County IDA (Huntington First Aid Squad)     6.650       11/01/2017        4,005,175
------------------------------------------------------------------------------------------------------------
      295,000    Suffolk County IDA (Independent Group Home
                 Living)                                             6.000       12/01/2019          298,109
------------------------------------------------------------------------------------------------------------
    6,500,000    Suffolk County IDA (Jefferson's Ferry)              7.200       11/01/2019        6,905,925
------------------------------------------------------------------------------------------------------------
   10,000,000    Suffolk County IDA (Jefferson's Ferry)              7.250       11/01/2028       10,519,700
------------------------------------------------------------------------------------------------------------
   13,660,000    Suffolk County IDA (Keyspan-Port Jefferson
                 Center)                                             5.250       06/01/2027       13,986,884
------------------------------------------------------------------------------------------------------------
    4,065,000    Suffolk County IDA ( L.I. Network Community
                 Services)                                           7.550       02/01/2034        4,145,894
------------------------------------------------------------------------------------------------------------
    3,360,000    Suffolk County IDA (New Interdisciplinary
                 School)                                             6.750       12/01/2019        3,393,970
------------------------------------------------------------------------------------------------------------
    3,500,000    Suffolk County IDA
                 (Nissequogue Cogeneration Partners)                 5.300       01/01/2013        3,435,250
------------------------------------------------------------------------------------------------------------
    7,585,000    Suffolk County IDA
                 (Nissequogue Cogeneration Partners)                 5.500       01/01/2023        7,320,511
------------------------------------------------------------------------------------------------------------
      695,000    Suffolk County IDA (OBPWC)                          7.500       11/01/2022          698,711
------------------------------------------------------------------------------------------------------------
    2,250,000    Suffolk County IDA
                 (Peconic Landing Retirement Home)                   7.000       10/01/2030        2,265,323
------------------------------------------------------------------------------------------------------------
    1,000,000    Suffolk County IDA
                 (Peconic Landing Retirement Home)                   8.000       10/01/2020        1,070,270
------------------------------------------------------------------------------------------------------------
    1,600,000    Suffolk County IDA
                 (Peconic Landing Retirement Home)                   8.000       10/01/2030        1,700,080
------------------------------------------------------------------------------------------------------------
      260,000    Suffolk County IDA (Pederson-Krag Center)           7.625       04/01/2010          277,516
------------------------------------------------------------------------------------------------------------
    2,545,000    Suffolk County IDA (Pederson-Krag Center)           8.125       04/01/2030        2,727,018
------------------------------------------------------------------------------------------------------------
      160,000    Suffolk County IDA (Rainbow Chimes)                 7.000       05/01/2007          158,238
------------------------------------------------------------------------------------------------------------
    2,210,000    Suffolk County IDA (Rainbow Chimes)                 8.000       11/01/2024        2,034,062
------------------------------------------------------------------------------------------------------------
    1,670,000    Suffolk County IDA (Rimland Facilities) 2           3.750 8     12/01/2009        1,649,526
------------------------------------------------------------------------------------------------------------
    2,345,000    Suffolk County IDA (United Cerebral Palsy
                 Association)                                        6.000       12/01/2019        2,369,716
------------------------------------------------------------------------------------------------------------
    5,635,000    Suffolk County IDA (United Cerebral Palsy
                 Association)                                        7.875       09/01/2041        5,793,963
------------------------------------------------------------------------------------------------------------
    1,620,000    Suffolk County IDA (Windmill Village)               5.700       12/01/2026        1,713,928
------------------------------------------------------------------------------------------------------------
    1,305,000    Suffolk County IDA (Windmill Village)               5.750       12/01/2031        1,380,077
------------------------------------------------------------------------------------------------------------
      910,000    Suffolk County IDA (Wireless Boulevard Realty)      7.875       12/01/2012          963,463
------------------------------------------------------------------------------------------------------------
    4,005,000    Suffolk County IDA (Wireless Boulevard Realty)      8.625       12/01/2026        4,264,003
------------------------------------------------------------------------------------------------------------
       50,000    Suffolk County Water Authority                      5.125       06/01/2026           52,384
------------------------------------------------------------------------------------------------------------
    2,785,000    Sullivan County IDA (Center Discovery Civic
                 Facility)                                           7.250       02/01/2012        2,804,913
------------------------------------------------------------------------------------------------------------
    9,965,000    Sullivan County IDA (Center Discovery Civic
                 Facility)                                           7.750       02/01/2027       10,049,005


                         41 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   8,725,000    Sullivan County IDA (SCCC Dorm Corp. Civic
                 Facility)                                           7.250 %     06/01/2027  $     8,850,117
------------------------------------------------------------------------------------------------------------
      372,500    Syracuse Hsg. Authority
                 (Loretto Sedgwick Heights Corp.)                    7.375       11/01/2008          345,345
------------------------------------------------------------------------------------------------------------
    6,995,000    Syracuse Hsg. Authority
                 (Loretto Sedgwick Heights Corp.)                    8.500       11/01/2031        6,440,716
------------------------------------------------------------------------------------------------------------
    6,590,000    Syracuse Hsg. Authority (LRRHCF)                    5.800       08/01/2037        7,237,665
------------------------------------------------------------------------------------------------------------
      425,000    Syracuse Hsg. Authority (LRRHCF)                    7.500       08/01/2010          429,590
------------------------------------------------------------------------------------------------------------
    2,435,000    Syracuse Hsg. Authority (Pavilion on James)         7.500       11/01/2042        2,431,883
------------------------------------------------------------------------------------------------------------
      210,000    Syracuse IDA (Anoplate Corp.)                       7.250       11/01/2007          211,762
------------------------------------------------------------------------------------------------------------
    2,195,000    Syracuse IDA (Anoplate Corp.)                       8.000       11/01/2022        2,268,115
------------------------------------------------------------------------------------------------------------
    1,000,000    Syracuse IDA (Crouse Irving Health Hospital)        5.375       01/01/2023          749,510
------------------------------------------------------------------------------------------------------------
   19,965,000    Syracuse IDA (James Square)                         0.000 1     08/01/2025        5,153,965
------------------------------------------------------------------------------------------------------------
      725,000    Syracuse IDA (Jewish Home of Central NY)            7.375       03/01/2021          749,324
------------------------------------------------------------------------------------------------------------
    2,050,000    Syracuse IDA (Jewish Home of Central NY)            7.375       03/01/2031        2,105,883
------------------------------------------------------------------------------------------------------------
    7,500,000    Tobacco Settlement Financing Corp. (TASC)           5.500       06/01/2019        8,316,750
------------------------------------------------------------------------------------------------------------
   13,825,000    Tobacco Settlement Financing Corp. (TASC)           5.500       06/01/2021       15,154,412
------------------------------------------------------------------------------------------------------------
   13,555,000    Tobacco Settlement Financing Corp. (TASC)           5.500       06/01/2022       14,767,901
------------------------------------------------------------------------------------------------------------
    3,750,000    Tompkins County IDA (Ithacare Center)               6.200       02/01/2037        4,073,663
------------------------------------------------------------------------------------------------------------
       95,000    Tompkins Health Care Corp.
                 (Reconstruction Home)                              10.800       02/01/2007          101,893
------------------------------------------------------------------------------------------------------------
       70,000    Tompkins Health Care Corp.
                 (Reconstruction Home)                              10.800       02/01/2028           79,226
------------------------------------------------------------------------------------------------------------
      605,000    Tonawanda SCHC                                      6.500       12/01/2010          615,285
------------------------------------------------------------------------------------------------------------
    8,265,000    Triborough Bridge & Tunnel Authority RITES 2       12.162 3     01/01/2027        9,198,119
------------------------------------------------------------------------------------------------------------
    4,190,000    Triborough Bridge & Tunnel Authority RITES 2       12.197 3     01/01/2032        4,572,296
------------------------------------------------------------------------------------------------------------
   15,615,000    TSASC, Inc. (TFABs)                                 5.750       07/15/2032       15,030,687
------------------------------------------------------------------------------------------------------------
      840,000    TSASC, Inc. (TFABs)                                 6.250       07/15/2027          852,508
------------------------------------------------------------------------------------------------------------
   78,575,000    TSASC, Inc. (TFABs)                                 6.250       07/15/2034       79,560,331
------------------------------------------------------------------------------------------------------------
  129,920,000    TSASC, Inc. (TFABs)                                 6.375       07/15/2039      132,305,331
------------------------------------------------------------------------------------------------------------
      995,000    UCP/HCA of Chemung County                           6.600       08/01/2022        1,082,809
------------------------------------------------------------------------------------------------------------
    1,700,000    Ulster County IDA (Benedictine Hospital)            6.450       06/01/2024        1,560,991
------------------------------------------------------------------------------------------------------------
    1,845,000    Ulster County IDA (Brooklyn Bottling)               8.600       06/30/2022        1,853,838
------------------------------------------------------------------------------------------------------------
    4,000,000    Ulster County IDA (Kingston Hospital)               5.650       11/15/2024        4,179,240
------------------------------------------------------------------------------------------------------------
    1,465,000    Ulster County IDA
                 (Mid-Hudson Family Health Services)                 5.350       07/01/2023        1,527,746
------------------------------------------------------------------------------------------------------------
    2,635,000    Ulster County Tobacco Asset
                 Securitization Corp.                                0.000 7     06/01/2040        1,817,518
------------------------------------------------------------------------------------------------------------
    2,680,000    Ulster County Tobacco Asset
                 Securitization Corp.                                6.000       06/01/2040        2,469,164
------------------------------------------------------------------------------------------------------------
    2,000,000    Ulster County Tobacco Asset
                 Securitization Corp. 2                              6.250       06/01/2025        2,008,680
------------------------------------------------------------------------------------------------------------
    2,000,000    United Nations Devel. Corp., Series A               5.250       07/01/2026        2,091,140
------------------------------------------------------------------------------------------------------------
       25,000    Upper Mohawk Valley Regional Water
                 Finance Authority                                   5.125       10/01/2026           26,370
------------------------------------------------------------------------------------------------------------
      500,000    Utica GO                                            6.100       01/15/2013          556,220
------------------------------------------------------------------------------------------------------------
    3,550,000    Utica IDA (Utica College Civic Facility)            6.850       12/01/2031        3,661,861


                         42 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     340,000    Watervliet Hsg. Authority
                 (Colonie Senior Service Center)                     5.875%      06/01/2018  $       330,164
------------------------------------------------------------------------------------------------------------
   10,800,000    Watervliet Hsg. Authority
                 (Colonie Senior Service Center)                     6.125       06/01/2038       10,117,656
------------------------------------------------------------------------------------------------------------
    2,820,000    Wayne County IDA (ARC)                              8.375       03/01/2018        2,827,811
------------------------------------------------------------------------------------------------------------
      300,000    Westchester County Healthcare Corp., Series A       5.875       11/01/2025          299,721
------------------------------------------------------------------------------------------------------------
    7,195,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        7,415,527
------------------------------------------------------------------------------------------------------------
    3,145,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        3,241,394
------------------------------------------------------------------------------------------------------------
    6,330,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        6,524,015
------------------------------------------------------------------------------------------------------------
    3,590,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        3,700,608
------------------------------------------------------------------------------------------------------------
    8,470,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        8,730,961
------------------------------------------------------------------------------------------------------------
    8,115,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        8,363,725
------------------------------------------------------------------------------------------------------------
    6,290,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        6,482,789
------------------------------------------------------------------------------------------------------------
    6,865,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        7,075,412
------------------------------------------------------------------------------------------------------------
    1,870,000    Westchester County IDA (Beth Abraham Hospital)      8.375       12/01/2025        1,957,890
------------------------------------------------------------------------------------------------------------
       40,000    Westchester County IDA (Children's Village)         5.375       03/15/2019           40,311
------------------------------------------------------------------------------------------------------------
    4,600,000    Westchester County IDA (Children's Village)         6.000       06/01/2022        4,659,110
------------------------------------------------------------------------------------------------------------
    1,040,400    Westchester County IDA (Clearview School)           9.375       01/01/2021        1,068,824
------------------------------------------------------------------------------------------------------------
    1,300,000    Westchester County IDA
                 (Guiding Eyes for the Blind)                        5.375       08/01/2024        1,347,632
------------------------------------------------------------------------------------------------------------
    2,000,000    Westchester County IDA
                 (Hebrew Hospital Senior Hsg.)                       7.375       07/01/2030        2,131,020
------------------------------------------------------------------------------------------------------------
    1,560,000    Westchester County IDA (JDAM)                       6.750       04/01/2016        1,625,146
------------------------------------------------------------------------------------------------------------
    3,250,000    Westchester County IDA (Lawrence Hospital)          5.000       01/01/2028        3,195,498
------------------------------------------------------------------------------------------------------------
      800,000    Westchester County IDA (Lawrence Hospital)          5.125       01/01/2018          820,904
------------------------------------------------------------------------------------------------------------
    1,275,000    Westchester County IDA
                 (Living Independently for the Elderly)              5.375       08/20/2021        1,375,636
------------------------------------------------------------------------------------------------------------
    3,035,000    Westchester County IDA
                 (Living Independently for the Elderly)              5.400       08/20/2032        3,206,690
------------------------------------------------------------------------------------------------------------
    1,645,000    Westchester County IDA (Rippowam-Cisqua School)     5.750       06/01/2029        1,677,127
------------------------------------------------------------------------------------------------------------
    1,000,000    Westchester County IDA (Schnurmacher Center)        6.500       11/01/2013        1,042,490
------------------------------------------------------------------------------------------------------------
    1,710,000    Westchester County IDA (Schnurmacher Center)        6.500       11/01/2033        1,799,724
------------------------------------------------------------------------------------------------------------
       85,000    Westchester County IDA
                 (Westchester Airport Association)                   5.950       08/01/2024           85,897
------------------------------------------------------------------------------------------------------------
    2,585,000    Westchester County IDA (Winward School)             5.250       10/01/2031        2,679,094
------------------------------------------------------------------------------------------------------------
   76,375,000    Westchester County Tobacco Asset
                 Securitization Corp.                                0.000 7     07/15/2039       60,178,154
------------------------------------------------------------------------------------------------------------
    1,423,800    Yates County IDA (Keuka College)                    8.750       08/01/2015        1,673,321
------------------------------------------------------------------------------------------------------------
    3,825,000    Yates County IDA (SSMH)                             5.650       02/01/2039        4,164,622
------------------------------------------------------------------------------------------------------------
   15,185,000    Yonkers IDA (Community Devel. Properties)           6.625       02/01/2026       16,361,686
------------------------------------------------------------------------------------------------------------
    4,685,000    Yonkers IDA (Hudson Scenic Studio)                  6.625       11/01/2019        4,724,213
------------------------------------------------------------------------------------------------------------
    1,590,000    Yonkers IDA (Philipsburgh Hall Associates)          7.500       11/01/2030        1,572,764
------------------------------------------------------------------------------------------------------------
    2,500,000    Yonkers IDA (St. John's Riverside Hospital)         7.125       07/01/2031        2,554,775
------------------------------------------------------------------------------------------------------------
    3,050,000    Yonkers IDA (St. Joseph's Hospital)                 8.500       12/30/2013        3,120,913
------------------------------------------------------------------------------------------------------------
    3,300,000    Yonkers IDA (Westchester School)                    8.750       12/30/2023        3,434,970


                         43 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     800,000    Yonkers Parking Authority                           6.000%      06/15/2018  $       850,864
------------------------------------------------------------------------------------------------------------
    1,215,000    Yonkers Parking Authority                           6.000       06/15/2024        1,264,317
                                                                                             ---------------
                                                                                               5,503,800,665
------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--12.7%
    2,435,000    Guam EDA (Royal Socio Apartments)                   9.500       11/01/2018        2,387,250
------------------------------------------------------------------------------------------------------------
      290,000    Guam Power Authority, Series A                      5.250       10/01/2023          281,065
------------------------------------------------------------------------------------------------------------
   20,000,000    Guam Power Authority, Series A                      5.250       10/01/2034       18,613,200
------------------------------------------------------------------------------------------------------------
    1,000,000    Northern Mariana Islands, Series A                  6.000       06/01/2020        1,068,130
------------------------------------------------------------------------------------------------------------
    8,010,000    Northern Mariana Islands, Series A                  6.250       03/15/2028        8,286,986
------------------------------------------------------------------------------------------------------------
   19,340,000    Northern Mariana Islands, Series A                  6.600       03/15/2028       21,179,814
------------------------------------------------------------------------------------------------------------
   10,000,000    Northern Mariana Islands, Series A                  7.375       06/01/2030       10,502,500
------------------------------------------------------------------------------------------------------------
    6,290,000    Puerto Rico Children's Trust Fund (TASC)            5.500       05/15/2039        5,770,257
------------------------------------------------------------------------------------------------------------
   21,405,000    Puerto Rico Children's Trust Fund (TASC)            5.625       05/15/2043       19,828,522
------------------------------------------------------------------------------------------------------------
    1,900,000    Puerto Rico Commonwealth GO                         5.000       07/01/2029        1,947,671
------------------------------------------------------------------------------------------------------------
   17,500,000    Puerto Rico Commonwealth GO                         5.000       07/01/2034       17,838,100
------------------------------------------------------------------------------------------------------------
    2,000,000    Puerto Rico Commonwealth GO                         5.125       07/01/2031        2,053,900
------------------------------------------------------------------------------------------------------------
       50,000    Puerto Rico Electric Power Authority                5.250       07/01/2029           53,198
------------------------------------------------------------------------------------------------------------
      210,000    Puerto Rico Electric Power Authority                5.375       07/01/2030          214,578
------------------------------------------------------------------------------------------------------------
       30,000    Puerto Rico Electric Power Authority, Series NN     5.125       07/01/2029           31,076
------------------------------------------------------------------------------------------------------------
    4,700,000    Puerto Rico GO                                      5.000       07/01/2033        4,774,824
------------------------------------------------------------------------------------------------------------
      750,000    Puerto Rico HBFA                                    6.250       04/01/2029          768,338
------------------------------------------------------------------------------------------------------------
      110,000    Puerto Rico HFC                                     5.100       12/01/2018          114,500
------------------------------------------------------------------------------------------------------------
    2,030,000    Puerto Rico HFC                                     5.500       12/01/2023        2,133,307
------------------------------------------------------------------------------------------------------------
      100,000    Puerto Rico HFC                                     7.500       10/01/2015          100,187
------------------------------------------------------------------------------------------------------------
    2,640,000    Puerto Rico HFC                                     7.500       04/01/2022        2,665,793
------------------------------------------------------------------------------------------------------------
    3,150,000    Puerto Rico Highway & Transportation Authority      5.000       07/01/2028        3,214,481
------------------------------------------------------------------------------------------------------------
   50,440,000    Puerto Rico Highway & Transportation Authority,
                 Series D                                            5.250       07/01/2038       52,402,620
------------------------------------------------------------------------------------------------------------
    4,000,000    Puerto Rico Highway & Transportation Authority,
                 Series D                                            5.375       07/01/2036        4,206,400
------------------------------------------------------------------------------------------------------------
    6,000,000    Puerto Rico Highway & Transportation Authority,
                 Series G                                            5.000       07/01/2033        6,095,520
------------------------------------------------------------------------------------------------------------
   53,300,000    Puerto Rico Highway & Transportation Authority,
                 Series G                                            5.000       07/01/2042       53,777,568
------------------------------------------------------------------------------------------------------------
    1,250,000    Puerto Rico Highway & Transportation Authority,
                 Series J                                            5.125       07/01/2039        1,282,138
------------------------------------------------------------------------------------------------------------
      220,000    Puerto Rico Infrastructure                          7.500       07/01/2009          225,632
------------------------------------------------------------------------------------------------------------
    1,080,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.375       02/01/2019        1,127,142
------------------------------------------------------------------------------------------------------------
    1,575,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.375       12/01/2021        1,668,114
------------------------------------------------------------------------------------------------------------
    5,750,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.375       02/01/2029        5,898,005
------------------------------------------------------------------------------------------------------------
    6,315,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.500       12/01/2031        6,604,353
------------------------------------------------------------------------------------------------------------
   42,400,000    Puerto Rico ITEMECF (Congeneration Facilities)      6.625       06/01/2026       45,962,872


                         44 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$   3,345,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        5.625%      07/01/2017  $     2,977,485
------------------------------------------------------------------------------------------------------------
      985,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        5.625       07/01/2027          823,332
------------------------------------------------------------------------------------------------------------
    8,735,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        6.500       07/01/2018        8,409,097
------------------------------------------------------------------------------------------------------------
   12,340,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        6.500       07/01/2026       11,546,538
------------------------------------------------------------------------------------------------------------
      750,000    Puerto Rico ITEMECF
                 (Ryder Memorial Hospital)                           6.400       05/01/2009          754,890
------------------------------------------------------------------------------------------------------------
    2,450,000    Puerto Rico ITEMECF
                 (Ryder Memorial Hospital)                           6.600       05/01/2014        2,450,368
------------------------------------------------------------------------------------------------------------
    5,250,000    Puerto Rico ITEMECF (Ryder Memorial Hospital)       6.700       05/01/2024        5,181,120
------------------------------------------------------------------------------------------------------------
    7,000,000    Puerto Rico ITEMECF
                 (San Lucas & Cristo Redentor Hospitals)             5.750       06/01/2029        4,971,610
------------------------------------------------------------------------------------------------------------
      500,000    Puerto Rico ITEMECF
                 (University of the Sacred Heart)                    5.250       09/01/2021          521,360
------------------------------------------------------------------------------------------------------------
    8,000,000    Puerto Rico ITEMECF
                 (University of the Sacred Heart)                    5.250       09/01/2031        8,161,600
------------------------------------------------------------------------------------------------------------
    1,000,000    Puerto Rico Port Authority (American Airlines),
                 Series A                                            6.250       06/01/2026          701,550
------------------------------------------------------------------------------------------------------------
   12,470,000    Puerto Rico Port Authority (American Airlines),
                 Series A                                            6.300       06/01/2023        8,810,803
------------------------------------------------------------------------------------------------------------
   52,715,000    Puerto Rico Public Buildings Authority              5.000       07/01/2036       53,552,114
------------------------------------------------------------------------------------------------------------
   57,835,000    Puerto Rico Public Buildings Authority              5.250       07/01/2033       60,565,969
------------------------------------------------------------------------------------------------------------
      325,000    Puerto Rico Public Buildings Authority              5.375       07/01/2033          364,549
------------------------------------------------------------------------------------------------------------
      120,000    Puerto Rico Public Buildings Authority              5.375       07/01/2033          126,388
------------------------------------------------------------------------------------------------------------
  136,350,000    Puerto Rico Public Finance Corp., Series E          5.500       08/01/2029      154,676,804
------------------------------------------------------------------------------------------------------------
   46,060,000    Puerto Rico Public Finance Corp., Series E          5.500       08/01/2029       48,768,328
------------------------------------------------------------------------------------------------------------
      112,707    Puerto Rico San Sebastian Garage Lease 2,4,5       10.000       09/16/2005          106,200
------------------------------------------------------------------------------------------------------------
    9,230,000    University of V.I. , Series A                       5.375       06/01/2034        9,562,649
------------------------------------------------------------------------------------------------------------
    2,040,000    University of V.I. , Series A                       6.250       12/01/2029        2,213,971
------------------------------------------------------------------------------------------------------------
    1,250,000    V.I. Government Refinery Facilities
                 (Hovensa Coker)                                     6.500       07/01/2021        1,369,800
------------------------------------------------------------------------------------------------------------
       45,000    V.I. Hsg. Finance Authority, Series A               6.450       03/01/2016           45,985
------------------------------------------------------------------------------------------------------------
   18,720,000    V.I. Public Finance Authority
                 (Gross Receipts Taxes Loan)                         5.000       10/01/2031       18,855,158
------------------------------------------------------------------------------------------------------------
      500,000    V.I. Public Finance Authority
                 (Gross Receipts Taxes Loan)                         5.000       10/01/2033          510,410
------------------------------------------------------------------------------------------------------------
   27,733,000    V.I. Public Finance Authority (Hovensa Coker)       6.500       07/01/2021       30,373,736
------------------------------------------------------------------------------------------------------------
    8,000,000    V.I. Public Finance Authority
                 (Hovensa Refinery)                                  6.125       07/01/2022        8,594,880
------------------------------------------------------------------------------------------------------------
   11,700,000    V.I. Public Finance Authority (Hovensa)             5.875       07/01/2022       12,432,186
------------------------------------------------------------------------------------------------------------
    1,550,000    V.I. Public Finance Authority Computer Lease 2      6.250       01/01/2005        1,550,000
------------------------------------------------------------------------------------------------------------
      750,000    V.I. Public Finance Authority, Series A             5.250       10/01/2024          790,013
------------------------------------------------------------------------------------------------------------
    1,000,000    V.I. Public Finance Authority, Series A             5.500       10/01/2018        1,044,830
------------------------------------------------------------------------------------------------------------
   16,220,000    V.I. Public Finance Authority, Series A             5.500       10/01/2022       16,878,694
------------------------------------------------------------------------------------------------------------
    7,500,000    V.I. Public Finance Authority, Series A             5.625       10/01/2025        7,797,075
------------------------------------------------------------------------------------------------------------
       50,000    V.I. Public Finance Authority, Series A             5.625       10/01/2025           52,191
------------------------------------------------------------------------------------------------------------
    3,830,000    V.I. Public Finance Authority, Series E             6.000       10/01/2022        3,937,393


                         45 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
-------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$   1,575,000    V.I. Water & Power Authority                        5.300%      07/01/2018  $     1,616,045
-------------------------------------------------------------------------------------------------------------
    3,515,000    V.I. Water & Power Authority                        5.300       07/01/2021        3,555,247
-------------------------------------------------------------------------------------------------------------
    2,500,000    V.I. Water & Power Authority                        5.500       07/01/2017        2,569,707
                                                                                             ----------------
                                                                                                 800,298,116

-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $6,159,195,985)--100.4%                                      6,304,098,781
-------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.4)                                                     (26,097,217)
                                                                                             ----------------
NET ASSETS--100.0%                                                                           $ 6,278,001,564
                                                                                             ================

FOOTNOTES TO STATEMENT OF INVESTMENTS

1. Represents a zero coupon bond.

2. Illiquid security. The aggregate value of illiquid securities as of December
31, 2004 was $618,907,796, which represents 9.86% of the Fund's net assets. See
Note 5 of Notes to Financial Statements.

3. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.

4. Non-income producing security.

5. Issue is in default. See Note 1 of Notes to Financial Statements.

6. When-issued security or forward commitment to be delivered and settled after
December 31, 2004. See Note 1 of Notes to Financial Statements.

7. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.

8. Represents the current interest rate for a variable or increasing rate
security.


                         46 | ROCHESTER FUND MUNICIPALS

--------------------------------------------------------------------------------
PORTFOLIO ABBREVIATIONS  December 31, 2004
--------------------------------------------------------------------------------

TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:

ACDS        Association for Children with Down Syndrome

ACLD        Adults and Children with Learning and Developmental Disabilities

ADD         Aid to the Developmentally Disabled

ALIA        Alliance of Long Island Agencies

ARC         Association of Retarded Citizens

ASMF        Amsterdam Sludge Management Facility

CCSSVD      Central Council of the Society of St. Vincent dePaul

CFGA        Child and Family Guidance Association

CHSLI       Catholic Health Services of Long Island

CNGCS       Central Nassau Guidance and Counseling Services

COP         Certificates of Participation

CSD         Central School District

CSMR        Community Services for the Mentally Retarded

DA          Dormitory Authority

DDI         Developmental Disabilities Institute

DIAMONDS    Direct Investment of Accrued Municipals

EDA         Economic Development Authority

EFC         Environmental Facilities Corp.

ERDA        Energy Research and Development Authority

FHA         Federal Housing Agency

FREE        Family Residences and Essential Enterprises

GJSR        Gurwin Jewish Senior Residences

GO          General Obligation

GSHMC       Good Samaritan Hospital Medical Center

HBFA        Housing Bank and Finance Agency

HDC         Housing Development Corp.

HELP        Homeless Economic Loan Program

HFA         Housing Finance Agency/Authority

HFC         Housing Finance Corp.

HH          Harmony Heights, Inc.

HHS         Harmony Heights School

HJDOI       Hospital for Joint Diseases Orthopedic Institute

IDA         Industrial Development Agency

IFA         Interim Finance Authority

IGHL        Independent Group Home for Living

INFLOS      Inverse Floating Rate Securities

ITEMECF     Industrial, Tourist, Educational, Medical and Environmental
            Community Facilities

JCC         Jewish Community Center

JDAM        Julia Dyckman Andrus Memorial

JFK         John Fitzgerald Kennedy

L.I.        Long Island

LGSC        Local Government Services Corporation

LILCO       Long Island Lighting Corporation

LRRHCF      Loretto Rest Residential Health Care Facility

LVH         Little Village House

MCH         Maryhaven Center of Hope

MMC         Mercy Medical Center

MSH/NYU     Mount Sinai Hospital/New York University

MTA         Metropolitan Transportation Authority

NH&HC       Nursing Home and Health Care

NIMO        Niagara Mohawk Power Corporation

NY/NJ       New York/New Jersey

NYC         New York City

NYS         New York State

NYSEG       New York State Electric and Gas

NYU         New York University

OBPWC       Ocean Bay Park Water Corporation

PSCH        Professional Service Centers for the Handicapped, Inc.

Res Rec     Resource Recovery Facility

RG&E        Rochester Gas and Electric

RIBS        Residual Interest Bonds

RITES       Residual Interest Tax Exempt Security

SCCC        Sullivan County Community College

SCHC        Senior Citizen Housing Corporation

SCHRC       St. Charles Hospital and Rehabilitation Center

SCSB        Schuyler Community Services Board

SCSMC       St. Catherine of Sienna Medical Center

SFH         St. Francis Hospital

SLCD        School for Language and Communication Development

SMCFS       St. Mary's Children and Family Services

SONYMA      State of New York Mortgage Agency

SSMH        Soldiers and Sailors Memorial Hospital

SUNY        State University of New York

SV          Sienna Village

TASC        Tobacco Settlement Asset-Backed Bonds

TFA         Transitional Finance Authority

TFABs       Tobacco Flexible Amortization Bonds

UCP/HCA     United Cerebral Palsy and Handicapped Children's Association

UCPAGS      United Cerebral Palsy Association of Greater Suffolk

UDC         Urban Development Corp.

VDRNs       Variable Demand Rate Notes

V.I.        United States Virgin Islands

WORCA       Working Organization for Retarded Children and Adults

WWH         Wyandach/Wheatley Heights

YMCA        Young Men's Christian Association


                         47 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS December 31, 2004
--------------------------------------------------------------------------------

DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:

INDUSTRY                                               MARKET VALUE     PERCENT
--------------------------------------------------------------------------------
Hospital/Health Care                                 $  732,574,658        11.6%
Tobacco Settlements                                     631,062,556        10.0
Electric Utilities                                      571,769,180         9.1
Highways/Railways                                       556,514,929         8.8
Airlines                                                496,204,941         7.9
General Obligation                                      422,428,655         6.7
Adult Living Facilities                                 365,637,114         5.8
Multifamily Housing                                     341,717,504         5.4
Sales Tax Revenue                                       288,734,669         4.6
Higher Education                                        275,255,577         4.4
Not-for-Profit Organization                             261,540,978         4.2
Water Utilities                                         245,946,792         3.9
Paper, Containers & Packaging                           186,850,726         3.0
Marine/Aviation Facilities                              164,711,404         2.6
Resource Recovery                                       120,604,695         1.9
Municipal Leases                                        109,701,458         1.8
Education                                               100,450,448         1.6
Single Family Housing                                    96,603,230         1.5
Manufacturing, Durable Goods                             89,823,822         1.4
Manufacturing, Non-Durable Goods                         82,119,575         1.3
Pollution Control                                        61,961,000         1.0
Special Assessment                                       40,330,203         0.6
Gas Utilities                                            32,318,340         0.5
Parking Fee Revenue                                      27,685,970         0.4
Hotels, Restaurants & Leisure                             1,550,357         0.0
                                                     ---------------------------
Total                                                $6,304,098,781       100.0%
                                                     ===========================


                         48 | ROCHESTER FUND MUNICIPALS

--------------------------------------------------------------------------------
SUMMARY OF RATINGS  December 31, 2004 / Unaudited
--------------------------------------------------------------------------------

DISTRIBUTION OF INVESTMENTS BY RATINGS CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:

RATINGS                                                                 PERCENT
--------------------------------------------------------------------------------
AAA                                                                        10.0%
AA                                                                         15.4
A                                                                          18.0
BBB                                                                        33.2
BB                                                                          4.2
B                                                                           0.1
CCC                                                                         6.6
Not Rated                                                                  12.5
                                                                         -------
Total                                                                     100.0%
                                                                         =======

Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         49 | ROCHESTER FUND MUNICIPALS

STATEMENT OF ASSETS AND LIABILITIES  December 31, 2004
--------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
ASSETS
-----------------------------------------------------------------------------------------------------
Investments, at value (cost $6,159,195,985)--see accompanying
statement of investments                                                            $  6,304,098,781
-----------------------------------------------------------------------------------------------------
Cash                                                                                       1,499,410
-----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest                                                                                 109,956,070
Shares of beneficial interest sold                                                         8,678,390
Investments sold                                                                           4,709,926
Other                                                                                         56,848
                                                                                    -----------------
Total assets                                                                           6,428,999,425

-----------------------------------------------------------------------------------------------------
LIABILITIES
-----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Notes payable to bank (interest rate 3.0000% at December 31, 2004)                       104,900,000
Investments purchased (including $32,140,000 purchased on a when-issued basis
or forward commitment)                                                                    35,037,416
Shares of beneficial interest redeemed                                                     6,625,393
Distribution and service plan fees                                                         2,676,259
Trustees' compensation                                                                     1,010,293
Transfer and shareholder servicing agent fees                                                216,871
Interest expense                                                                             159,748
Shareholder communications                                                                   149,305
Other                                                                                        222,576
                                                                                    -----------------
Total liabilities                                                                        150,997,861

-----------------------------------------------------------------------------------------------------
NET ASSETS                                                                          $  6,278,001,564
                                                                                    =================

-----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
-----------------------------------------------------------------------------------------------------
Paid-in capital                                                                     $  6,335,646,115
-----------------------------------------------------------------------------------------------------
Accumulated net investment income                                                          5,510,090
-----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments                                            (208,057,437)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments                                               144,902,796
                                                                                    -----------------
NET ASSETS                                                                          $  6,278,001,564
                                                                                    =================


                         50 | ROCHESTER FUND MUNICIPALS

-----------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
-----------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$4,698,762,604 and 264,524,066 shares of beneficial interest outstanding)                     $ 17.76
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price)                                                                      $ 18.65
-----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$1,073,376,421 and 60,476,705 shares of beneficial interest outstanding)                      $ 17.75
-----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $497,744,323
and 28,056,192 shares of beneficial interest outstanding)                                     $ 17.74
-----------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $8,118,216 and 457,097 shares of beneficial interest outstanding)                   $ 17.76

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         51 | ROCHESTER FUND MUNICIPALS

STATEMENT OF OPERATIONS  For the Year Ended December 31, 2004
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
INVESTMENT INCOME
--------------------------------------------------------------------------------
Interest                                                          $ 407,743,020

--------------------------------------------------------------------------------
EXPENSES
--------------------------------------------------------------------------------
Management fees                                                      27,768,032
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A                                                               6,472,909
Class B                                                              11,292,305
Class C                                                               4,586,486
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A                                                               1,564,074
Class B                                                                 593,119
Class C                                                                 223,275
Class Y                                                                   1,149
--------------------------------------------------------------------------------
Shareholder communications:
Class A                                                                 167,536
Class B                                                                  66,737
Class C                                                                  23,110
Class Y                                                                     448
--------------------------------------------------------------------------------
Accounting service fees                                               1,797,931
--------------------------------------------------------------------------------
Interest expense                                                      1,298,609
--------------------------------------------------------------------------------
Custodian fees and expenses                                             341,899
--------------------------------------------------------------------------------
Trustees' compensation                                                  248,976
--------------------------------------------------------------------------------
Other                                                                   471,128
                                                                  --------------
Total expenses                                                       56,917,723
Less reduction to custodian expenses                                    (32,340)
                                                                  --------------
Net expenses                                                         56,885,383

--------------------------------------------------------------------------------
NET INVESTMENT INCOME                                               350,857,637

--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
--------------------------------------------------------------------------------
Net realized loss on investments                                    (38,366,025)
--------------------------------------------------------------------------------
Net change in unrealized appreciation on investments                 94,781,929

--------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS              $ 407,273,541
                                                                  ==============

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         52 | ROCHESTER FUND MUNICIPALS

STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------

YEAR ENDED DECEMBER 31,                                                    2004               2003
---------------------------------------------------------------------------------------------------
OPERATIONS
---------------------------------------------------------------------------------------------------
Net investment income                                           $   350,857,637    $   361,925,409
---------------------------------------------------------------------------------------------------
Net realized loss                                                   (38,366,025)       (67,477,223)
---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)                 94,781,929        134,767,140
                                                                -----------------------------------
Net increase in net assets resulting from operations                407,273,541        429,215,326

---------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
---------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A                                                            (272,651,228)      (264,497,024)
Class B                                                             (60,767,414)       (70,438,857)
Class C                                                             (24,573,155)       (24,428,144)
Class Y                                                                (542,368)          (743,767)

---------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A                                                             431,796,391       (121,893,999)
Class B                                                            (164,466,975)      (123,811,036)
Class C                                                              51,246,009        (32,773,952)
Class Y                                                              (1,008,130)        (3,100,020)

---------------------------------------------------------------------------------------------------
NET ASSETS
---------------------------------------------------------------------------------------------------
Total increase (decrease)                                           366,306,671       (212,471,473)
---------------------------------------------------------------------------------------------------
Beginning of period                                               5,911,694,893      6,124,166,366
                                                                -----------------------------------
End of period (including accumulated net investment income of
$5,510,090 and $13,550,832, respectively)                       $ 6,278,001,564    $ 5,911,694,893
                                                                ===================================

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         53 | ROCHESTER FUND MUNICIPALS

FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

CLASS A     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.62       $   17.38      $   17.52       $    17.67       $  16.78
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                    1.07 1          1.11           1.08             1.06           1.04
Net realized and unrealized gain (loss)                   .16             .23           (.15)            (.17)           .89
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.23            1.34            .93              .89           1.93
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                    (1.09)          (1.10)         (1.07)           (1.04)         (1.04)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.76       $   17.62      $   17.38       $    17.52       $  17.67
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       7.25%           8.12%          5.46%            5.14%         11.93%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $  4,699       $   4,228      $   4,299       $    4,073       $  3,536
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $  4,387       $   4,100      $   4,292       $    3,893       $  3,341
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    6.09%           6.49%          6.18%            5.97%          6.07%
Total expenses                                           0.72%           0.71%          0.72%            0.72%          0.78%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       0.71% 4,6        0.70% 4,6      0.74% 4,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         54 | ROCHESTER FUND MUNICIPALS

CLASS B     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.60       $   17.36      $   17.51       $    17.66       $  16.77
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                     .91 1           .96            .93              .91            .89
Net realized and unrealized gain (loss)                   .18             .23           (.16)            (.17)           .90
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.09            1.19            .77              .74           1.79
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                     (.94)           (.95)          (.92)            (.89)          (.90)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.75       $   17.60      $   17.36       $    17.51       $  17.66
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       6.40%           7.19%          4.50%            4.25%         10.98%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $  1,073       $   1,231      $   1,342       $    1,157       $    803
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $  1,130       $   1,259      $   1,275       $      997       $    711
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    5.23%           5.62%          5.32%            5.10%          5.19%
Total expenses                                           1.59%           1.58%          1.58%            1.58%          1.65%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       1.57% 4,6        1.56% 5,6      1.60% 5,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         55 | ROCHESTER FUND MUNICIPALS

FINANCIAL HIGHLIGHTS  Continued
--------------------------------------------------------------------------------

CLASS C     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.59       $   17.36      $   17.50       $    17.66       $  16.76
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                     .91 1           .96            .93              .91            .89
Net realized and unrealized gain (loss)                   .18             .22           (.15)            (.18)           .91
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.09            1.18            .78              .73           1.80
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                     (.94)           (.95)          (.92)            (.89)          (.90)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.74       $   17.59      $   17.36       $    17.50       $  17.66
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       6.40%           7.14%          4.57%            4.19%         11.06%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $    498       $     443      $     471       $      429       $    259
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $    459       $     436      $     460       $      356       $    225
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    5.22%           5.62%          5.32%            5.09%          5.20%
Total expenses                                           1.59%           1.58%          1.58%            1.57%          1.63%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       1.57% 4,6        1.55% 4,6      1.59% 4,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         56 | ROCHESTER FUND MUNICIPALS

CLASS Y     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001          2000 1
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.61       $   17.38      $   17.52       $    17.67       $  16.88
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                    1.10 2          1.14           1.10             1.08            .70
Net realized and unrealized gain (loss)                   .17             .21           (.15)            (.17)           .78
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.27            1.35            .95              .91           1.48
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                    (1.12)          (1.12)         (1.09)           (1.06)          (.69)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.76       $   17.61      $   17.38       $    17.52       $  17.67
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3                       7.50%           8.16%          5.57%            5.25%          8.97%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $      8       $       9      $      12       $       12       $     11
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $      8       $      11      $      12       $       12       $     10
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income                                    6.27%           6.79%          6.30%            6.08%          6.07%
Total expenses                                           0.55%           0.61%          0.62%            0.62%          0.68%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 5           N/A 5         0.61% 5,6        0.60% 5,6      0.64% 5,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

1. For the period from April 28, 2000 (inception of offering) to December 31,
2000.

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

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

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

5. Reduction to custodian expenses less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         57 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES

Rochester Fund Municipals (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to provide as high a level of income
exempt from federal income tax and New York State and New York City personal
income taxes as is consistent with its investment policies and prudent
investment management while seeking preservation of shareholders' capital. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).

      The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B and Class C shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B and C have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase.

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

--------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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. Securities traded on NASDAQ
are valued based on the closing price provided by NASDAQ 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities may be valued primarily
using dealer-supplied valuations or a portfolio pricing service authorized by
the Board of Trustees. Securities (including restricted securities) for which
market quotations are not readily available are valued at their fair value.
Foreign and domestic securities whose values have been materially affected by
what the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective exchanges will be fair
valued. Fair value is determined in good faith using consistently applied
procedures under the supervision of the Board of Trustees. Short-term "money
market type" debt securities with


                         58 | ROCHESTER FUND MUNICIPALS

remaining maturities of sixty days or less are valued at amortized cost (which
approximates market value).

--------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of December 31, 2004, the Fund had purchased
$32,140,000 of securities on a when-issued basis or forward commitment.

--------------------------------------------------------------------------------
INVERSE FLOATING RATE SECURITIES. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund will invest no more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $590,301,309 as of December 31, 2004. Including the
effect of leverage, inverse floaters represent 16.80% of the Fund's total assets
as of December 31, 2004.

--------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of December 31, 2004, securities with an
aggregate market value of $6,466,296, representing 0.10% of the Fund's net
assets, were in default.

      There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.

--------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis 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.


                         59 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued

FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.

The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.

                                                            NET UNREALIZED
                                                              APPRECIATION
                                                          BASED ON COST OF
                                                            SECURITIES AND
  UNDISTRIBUTED   UNDISTRIBUTED           ACCUMULATED    OTHER INVESTMENTS
  NET INVESTMENT      LONG-TERM                  LOSS   FOR FEDERAL INCOME
  INCOME                   GAIN  CARRYFORWARD 1,2,3,4         TAX PURPOSES
  ------------------------------------------------------------------------
  $7,085,235                $--          $199,101,185         $135,946,546

1. As of December 31, 2004, the Fund had $199,101,185 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of December 31, 2004,
details of the capital loss carryforwards were as follows:

                        EXPIRING
                        ----------------------
                        2005     $   5,760,047
                        2006         4,332,921
                        2007        41,458,446
                        2008        48,591,026
                        2011        68,625,845
                        2012        30,332,900
                                 -------------
                        Total    $ 199,101,185
                                 =============

2. During the fiscal year ended December 31, 2004, the Fund did not utilize any
capital loss carryforward.

3. During the fiscal year ended December 31, 2003, the Fund did not utilize any
capital loss carryforward.

4. During the fiscal year ended December 31, 2004, $3,560,645 of unused capital
loss carryforward expired.

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. Accordingly, the
following amounts have been reclassified for December 31, 2004. Net assets of
the Fund were unaffected by the reclassifications.


                         60 | ROCHESTER FUND MUNICIPALS

                            REDUCTION TO          REDUCTION TO
                             ACCUMULATED       ACCUMULATED NET
        REDUCTION TO      NET INVESTMENT         REALIZED LOSS
        PAID-IN CAPITAL           INCOME      ON INVESTMENTS 5
        ------------------------------------------------------
        $3,196,431              $364,214            $3,560,645

5. $364,214 was distributed in connection with Fund share redemptions.

The tax character of distributions paid during the years ended December 31, 2004
and December 31, 2003 was as follows:

                                        YEAR ENDED             YEAR ENDED
                                 DECEMBER 31, 2004      DECEMBER 31, 2003
    ---------------------------------------------------------------------
    Distributions paid from:
    Exempt-interest dividends         $358,534,165           $360,107,792

The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of December 31, 2004 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.

        Federal tax cost of securities       $6,168,152,235
                                             ===============

        Gross unrealized appreciation        $  273,127,538
        Gross unrealized depreciation          (137,180,992)
                                             ---------------
        Net unrealized appreciation          $  135,946,546
                                             ===============

--------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended December
31, 2004, the Fund's projected benefit obligations were increased by $110,437
and payments of $14,819 were made to retired trustees, resulting in an
accumulated liability of $830,077 as of December 31, 2004.

      In January 1995, the then existing Board of Trustees of the Fund adopted
an unfunded retirement plan for its independent trustees. The retirement plan,
as amended and restated in October 1995, provides that no independent trustee of
the Fund who is elected after September 1995 may be eligible to receive benefits
thereunder. Upon retirement, eligible trustees receive annual payments based
upon their years of service. In connection with the sale of certain assets of
Rochester Capital Advisors, L.P. (the Fund's former investment advisor) to the
Manager, all but one of the existing independent trustees retired effective
January 4, 1996. During the year ended December 31, 2004, payments of $60,750
were made to retired trustees. As of December 31, 2004, the Fund had recognized
an accumulated liability of $118,125.

      The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining


                         61 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued

the amount owed to the Trustee under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of the Fund or in other
Oppenheimer funds selected by the Trustee. The Fund purchases shares of the
funds selected for deferral by the Trustee in amounts equal to his or her deemed
investment, resulting in a Fund asset equal to the deferred compensation
liability. Such assets are included as a component of "Other" within the asset
section of the Statement of Assets and Liabilities. Deferral of trustees' fees
under the plan will not affect the net assets of the Fund, and will not
materially affect the Fund's assets, liabilities or net investment income per
share. Amounts will be deferred until distributed in accordance to the Plan.

--------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.

--------------------------------------------------------------------------------
INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.

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

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

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


                         62 | ROCHESTER FUND MUNICIPALS

--------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST

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

                                              YEAR ENDED DECEMBER 31, 2004        YEAR ENDED DECEMBER 31, 2003
                                                 SHARES             AMOUNT          SHARES              AMOUNT
---------------------------------------------------------------------------------------------------------------
CLASS A
Sold                                         46,521,892     $  815,106,857      31,968,251      $  545,936,442
Dividends and/or
distributions reinvested                      8,491,183        148,621,535       9,003,352         153,817,637
Redeemed                                    (30,527,851)      (531,932,001)    (48,331,277)       (821,648,078)
                                            -------------------------------------------------------------------
Net increase (decrease)                      24,485,224     $  431,796,391      (7,359,674)     $ (121,893,999)
                                            ===================================================================

---------------------------------------------------------------------------------------------------------------
CLASS B
Sold                                          5,986,622     $  104,928,366       8,236,496      $  140,702,835
Dividends and/or
distributions reinvested                      1,972,158         34,491,896       2,559,786          43,684,161
Redeemed                                    (17,438,391)      (303,887,237)    (18,121,088)       (308,198,032)
                                            -------------------------------------------------------------------
Net decrease                                 (9,479,611)    $ (164,466,975)     (7,324,806)     $ (123,811,036)
                                            ===================================================================

---------------------------------------------------------------------------------------------------------------
CLASS C
Sold                                          6,761,505     $  118,507,396       4,623,365      $   79,157,974
Dividends and/or
distributions reinvested                        805,567         14,083,421         957,977          16,341,183
Redeemed                                     (4,677,791)       (81,344,808)     (7,557,987)       (128,273,109)
                                            -------------------------------------------------------------------
Net increase (decrease)                       2,889,281     $   51,246,009      (1,976,645)     $  (32,773,952)
                                            ===================================================================

---------------------------------------------------------------------------------------------------------------
CLASS Y
Sold                                                 --     $           --              --      $           --
Dividends and/or
distributions reinvested                             --                 --              --                  --
Redeemed                                        (58,749)        (1,008,130)       (179,098)         (3,100,020)
                                            -------------------------------------------------------------------
Net decrease                                    (58,749)    $   (1,008,130)       (179,098)     $   (3,100,020)
                                            ===================================================================

--------------------------------------------------------------------------------
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, 2004, were
$1,114,653,165 and $745,434,233, respectively.

--------------------------------------------------------------------------------
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 Fund which provides for a fee at an
annual rate of 0.54% of the first $100 million of average daily net assets,
0.52% on the next $150 million, 0.47% on the next $1.75 billion of average daily
net assets, 0.46% on the next $3 billion, and 0.45% of average daily net assets
over $5 billion. Effective January 1, 2005, the Fund pays the Manager an
advisory fee at an annual rate of 0.54% of the first


                         63 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued

$100 million of average daily net assets, 0.52% on the next $150 million, 0.47%
on the next $1.75 billion, 0.46% on the next $3 billion, 0.45% on the next $3
billion and 0.44% of average daily net assets over $8 billion.

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

--------------------------------------------------------------------------------
ACCOUNTING FEES. Accounting fees paid to the Manager were in accordance with the
accounting services agreement with the Fund which provides for an annual fee of
$12,000 for the first $30 million of average daily net assets and $9,000 for
each additional $30 million of average daily net assets. During the year ended
December 31, 2004, the Fund paid $1,797,931 to the Manager for accounting and
pricing services.

--------------------------------------------------------------------------------
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 per account fee. For the year ended December 31, 2004, the Fund paid
$2,391,378 to OFS for services to the Fund.

      Additionally, Class Y shares are subject to minimum fees of $10,000 for
assets of $10 million or more. The Class Y shares are subject to the minimum
fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.

--------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) Fees. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.

--------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.15% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.

--------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B and
Class C shares. The Distributor also receives a service fee of up to 0.25% per
year under each plan. If either the Class B or Class C plan is terminated by the
Fund or by the shareholders of a class, the Board of Trustees and its
independent trustees must determine whether the Distributor shall be entitled to


                         64 | ROCHESTER FUND MUNICIPALS

payment from the Fund of all or a portion of the service fee and/or asset-based
sales charge in respect to shares sold prior to the effective date of such
termination. The Distributor's aggregate uncompensated expenses under the plan
at December 31, 2004 for Class B and Class C shares were $37,893,512 and
$11,067,836, respectively. Fees incurred by the Fund under the plans are
detailed in the Statement of Operations.

--------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.

                                         CLASS A        CLASS B        CLASS C
                          CLASS A     CONTINGENT     CONTINGENT     CONTINGENT
                        FRONT-END       DEFERRED       DEFERRED       DEFERRED
                    SALES CHARGES  SALES CHARGES  SALES CHARGES  SALES CHARGES
                      RETAINED BY    RETAINED BY    RETAINED BY    RETAINED BY
YEAR ENDED            DISTRIBUTOR    DISTRIBUTOR    DISTRIBUTOR    DISTRIBUTOR
------------------------------------------------------------------------------
December 31, 2004     $ 1,926,707       $ 63,952    $ 2,288,830       $ 46,687

------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees for all classes to 0.35% of average annual
net assets per class. This undertaking may be amended or withdrawn at any time.

--------------------------------------------------------------------------------
5. ILLIQUID SECURITIES

As of December 31, 2004, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund will not invest more than 15% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities.

--------------------------------------------------------------------------------
6. BANK BORROWINGS

The Fund may borrow up to 5% of its total assets from a bank to purchase
portfolio securities, to meet redemption obligations or for temporary and
emergency purposes. The purchase of securities with borrowed funds creates
leverage in the Fund. The Fund has entered into an agreement which enables it to
participate with certain other Oppenheimer funds in a committed, unsecured line
of credit with a bank, which permits borrowings up to $540 million,
collectively. Interest is charged to each fund, based on its borrowings, at a
rate equal to the Federal Funds Rate plus 0.75%. The Fund also pays a commitment
fee equal to its pro rata share of the average unutilized amount of the credit
facility at a rate of 0.09% per annum. This agreement terminated on January 21,
2005.


                         65 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
6. BANK BORROWINGS Continued

      The Fund had borrowings outstanding of $104,900,000 at December 31, 2004
at an interest rate of 3.0%. For the year ended December 31, 2004, the average
month-end balance was $57,869,429 at an average daily interest rate of 2.189%.
The Fund had gross borrowings and gross loan repayments of $900,700,000 and
$850,200,000, respectively, during the year ended December 31, 2004. The maximum
amount of borrowings outstanding at any month-end was $147,000,000. The Fund
paid commitment fees of $43,889 and interest of $1,097,617 during the year ended
December 31, 2004.

      Effective January 21, 2005 the Fund has entered into a Revolving Credit
and Security Agreement with a conduit lender and a bank which enables it to
participate with a certain other Oppenheimer fund in a committed, unsecured
borrowing facility that permits borrowings of up to $300 million, collectively.
Interest is charged to the Fund, based on its borrowings, at current commercial
paper issuance rates (2.30% as of January 21, 2005). The Fund pays additional
fees of 0.30% per annum on its outstanding borrowings and is allocated its
pro-rata share of a 0.13% per annum commitment fee with respect to the facility
size.

--------------------------------------------------------------------------------
7. LITIGATION

A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor (collectively, the
"Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal
Defendants") including the Fund, 31 present and former Directors or Trustees and
9 present and former officers of the funds. This complaint, filed in the U.S.
District Court for the Southern District of New York on January 10, 2005,
consolidates into a single action and amends six individual previously-filed
putative derivative and class action complaints. Like those prior complaints,
the complaint alleges that the Manager charged excessive fees for distribution
and other costs, improperly used assets of the funds in the form of directed
brokerage commissions and 12b-1 fees to pay brokers to promote sales of the
funds, and failed to properly disclose the use of assets of the funds to make
those payments in violation of the Investment Company Act of 1940 and the
Investment Advisers Act of 1940. Also, like those prior complaints, the
complaint further alleges that by permitting and/or participating in those
actions, the Directors/Trustees and the Officers breached their fiduciary duties
to shareholders of the funds under the Investment Company Act of 1940 and at
common law. The complaint seeks unspecified compensatory and punitive damages,
rescission of the funds' investment advisory agreements, an accounting of all
fees paid, and an award of attorneys' fees and litigation expenses.

      The Oppenheimer defendants believe that the allegations contained in the
Complaints are without merit and that they, the funds named as Nominal
Defendants, and the Directors/Trustees of those funds have meritorious defenses
against the claims asserted. The Oppenheimer defendants intend to defend these
lawsuits vigorously and to contest any claimed liability, and they have retained
legal counsel to defend such suits.


                         66 | ROCHESTER FUND MUNICIPALS

The Oppenheimer defendants believe that it is premature to render any opinion as
to the likelihood of an outcome unfavorable to them and that no estimate can yet
be made with any degree of certainty as to the amount or range of any potential
loss.


                         67 | ROCHESTER FUND MUNICIPALS

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
THE BOARD OF TRUSTEES AND SHAREHOLDERS OF ROCHESTER FUND MUNICIPALS:

We have audited the accompanying statement of assets and liabilities of
Rochester Fund Municipals, including the statement of investments, as of
December 31, 2004, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the years in the
two-year period then ended, and the financial highlights for each of the years
in the five-year period then ended. 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 the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material misstatement.
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, 2004, by correspondence with
the custodian and brokers or by other appropriate auditing procedures where
replies from brokers were not received. 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
Rochester Fund Municipals as of December 31, 2004, the results of its operations
for the year then ended, the changes in its net assets for each of the years in
the two-year period then ended, and the financial highlights for each of the
years in the five-year period then ended, in conformity with U.S. generally
accepted accounting principles.


KPMG LLP

Denver, Colorado
February 8, 2005






STATEMENT OF INVESTMENTS  December 31, 2004
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
 MUNICIPAL BONDS AND NOTES--100.4%
------------------------------------------------------------------------------------------------------------
NEW YORK--87.7%
$     125,000    Albany County Airport Authority                     5.500%      12/15/2019  $       134,675
------------------------------------------------------------------------------------------------------------
      635,000    Albany County IDA (Albany College of Pharmacy)      5.375       12/01/2024          658,692
------------------------------------------------------------------------------------------------------------
    1,700,000    Albany County IDA (Albany College of Pharmacy)      5.625       12/01/2034        1,771,264
------------------------------------------------------------------------------------------------------------
      885,000    Albany Hsg. Authority (Lark Drive)                  5.500       12/01/2028          910,975
------------------------------------------------------------------------------------------------------------
    1,420,000    Albany IDA (Albany Medical Center)                  6.000       05/01/2019        1,437,736
------------------------------------------------------------------------------------------------------------
    2,460,000    Albany IDA (Albany Medical Center)                  6.000       05/01/2029        2,387,233
------------------------------------------------------------------------------------------------------------
      400,000    Albany IDA (Albany Municipal Golf Course
                 Clubhouse)                                          7.500       05/01/2012          404,864
------------------------------------------------------------------------------------------------------------
      915,000    Albany IDA (Albany Rehab.)                          8.375       06/01/2023          953,759
------------------------------------------------------------------------------------------------------------
    4,005,000    Albany IDA (Charitable Leadership)                  5.750       07/01/2026        4,125,671
------------------------------------------------------------------------------------------------------------
    3,730,000    Albany IDA (Daughters of Sarah Nursing Home)        5.375       10/20/2030        3,966,258
------------------------------------------------------------------------------------------------------------
    2,750,000    Albany IDA (Hampton Plaza)                          6.250       03/15/2018        2,822,518
------------------------------------------------------------------------------------------------------------
    1,610,000    Albany IDA (MARA Mansion Rehab.)                    6.500       02/01/2023        1,612,125
------------------------------------------------------------------------------------------------------------
    1,285,000    Albany IDA (Sage Colleges)                          5.250       04/01/2019        1,321,635
------------------------------------------------------------------------------------------------------------
    1,760,000    Albany IDA (Sage Colleges)                          5.300       04/01/2029        1,777,653
------------------------------------------------------------------------------------------------------------
      125,000    Albany IDA (University Heights-Albany Pharmacy)     6.750       12/01/2029          149,799
------------------------------------------------------------------------------------------------------------
    1,770,000    Albany Parking Authority                            0.000 1     11/01/2017          955,393
------------------------------------------------------------------------------------------------------------
    2,510,000    Albany Parking Authority                            5.625       07/15/2020        2,699,681
------------------------------------------------------------------------------------------------------------
    2,000,000    Albany Parking Authority                            5.625       07/15/2025        2,124,740
------------------------------------------------------------------------------------------------------------
    5,700,000    Allegany County IDA (Houghton College)              5.250       01/15/2024        5,841,246
------------------------------------------------------------------------------------------------------------
      920,000    Amherst IDA (Asbury Pointe)                         5.800       02/01/2015          920,147
------------------------------------------------------------------------------------------------------------
       10,000    Amherst IDA (Asbury Pointe)                         6.000       02/01/2023            9,986
------------------------------------------------------------------------------------------------------------
    3,000,000    Amherst IDA (Asbury Pointe)                         6.000       02/01/2029        3,027,930
------------------------------------------------------------------------------------------------------------
    2,880,000    Amherst IDA (Daemen College)                        6.000       10/01/2021        3,057,725
------------------------------------------------------------------------------------------------------------
   10,055,000    Amherst IDA (Daemen College)                        6.125       10/01/2031       10,531,305
------------------------------------------------------------------------------------------------------------
    3,000,000    Appleridge Retirement Community                     5.750       09/01/2041        3,298,440
------------------------------------------------------------------------------------------------------------
      800,000    Babylon IDA (WWH Ambulance)                         7.375       09/15/2008          815,192
------------------------------------------------------------------------------------------------------------
      700,000    Battery Park City Authority                        10.000       06/01/2023          717,934
------------------------------------------------------------------------------------------------------------
      370,000    Bethany Retirement Home                             7.450       02/01/2024          378,965
------------------------------------------------------------------------------------------------------------
      810,000    Bethlehem Water System                              5.250       03/01/2018          875,707
------------------------------------------------------------------------------------------------------------
      855,000    Bethlehem Water System                              5.375       03/01/2019          931,001
------------------------------------------------------------------------------------------------------------
      905,000    Bethlehem Water System                              5.375       03/01/2020          981,862
------------------------------------------------------------------------------------------------------------
      955,000    Bethlehem Water System                              5.500       03/01/2021        1,042,898
------------------------------------------------------------------------------------------------------------
      505,000    Bethlehem Water System                              5.500       03/01/2022          549,879
------------------------------------------------------------------------------------------------------------
    1,065,000    Blauvelt Volunteer Fire Company                     6.250       10/15/2017        1,051,336
------------------------------------------------------------------------------------------------------------
      900,000    Bleeker Terrace HDC                                 8.750       07/01/2007          907,407
------------------------------------------------------------------------------------------------------------
      580,000    Brookhaven IDA (Brookhaven Memorial Hospital)       8.250       11/15/2030          610,792
------------------------------------------------------------------------------------------------------------
    6,830,000    Brookhaven IDA (Dowling College)                    6.750       03/01/2023        6,830,956
------------------------------------------------------------------------------------------------------------
    1,250,000    Brookhaven IDA (St. Joseph's College)               6.000       12/01/2020        1,313,563
------------------------------------------------------------------------------------------------------------
    2,425,000    Brookhaven IDA (Stony Brook Foundation)             6.500       11/01/2020        2,555,465
------------------------------------------------------------------------------------------------------------
    3,030,000    Broome County IDA (University Plaza)                5.000       08/01/2036        3,041,999


                         19 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,000,000    Broome County IDA (University Plaza)                5.100%      08/01/2030  $     1,006,970
------------------------------------------------------------------------------------------------------------
    1,250,000    Broome County IDA (University Plaza)                5.100       08/01/2036        1,255,688
------------------------------------------------------------------------------------------------------------
    3,000,000    Broome County IDA (University Plaza)                5.200       08/01/2030        3,040,560
------------------------------------------------------------------------------------------------------------
    4,450,000    Broome County IDA (University Plaza)                5.200       08/01/2036        4,498,016
------------------------------------------------------------------------------------------------------------
    1,000,000    Canton Human Services Initiatives                   5.700       09/01/2024        1,071,990
------------------------------------------------------------------------------------------------------------
    1,260,000    Canton Human Services Initiatives                   5.750       09/01/2032        1,328,884
------------------------------------------------------------------------------------------------------------
      600,000    Capital District Youth Center                       6.000       02/01/2017          633,852
------------------------------------------------------------------------------------------------------------
      500,000    Carnegie Redevelopment Corp. 2                      7.000       09/01/2021          501,350
------------------------------------------------------------------------------------------------------------
      570,000    Cattaraugus County IDA
                 (Jamestown Community College)                       6.400       07/01/2019          623,717
------------------------------------------------------------------------------------------------------------
    1,000,000    Cattaraugus County IDA
                 (Jamestown Community College)                       6.500       07/01/2030        1,077,820
------------------------------------------------------------------------------------------------------------
    4,295,000    Cattaraugus County IDA (Olean General Hospital)     5.250       08/01/2023        4,461,990
------------------------------------------------------------------------------------------------------------
    1,465,000    Cattaraugus County IDA (St. Bonaventure
                 University)                                         5.450       09/15/2019        1,522,501
------------------------------------------------------------------------------------------------------------
    2,900,000    Chautauqua County IDA
                 (Jamestown Community College)                       5.250       08/01/2028        2,992,481
------------------------------------------------------------------------------------------------------------
      825,000    Chautauqua County IDA (Jamestown Devel. Corp.)      7.125       11/01/2008          856,556
------------------------------------------------------------------------------------------------------------
    3,395,000    Chautauqua County IDA (Jamestown Devel. Corp.)      7.125       11/01/2018        3,531,004
------------------------------------------------------------------------------------------------------------
    2,500,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2029        2,518,475
------------------------------------------------------------------------------------------------------------
      915,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2029          921,762
------------------------------------------------------------------------------------------------------------
    1,000,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2034        1,002,410
------------------------------------------------------------------------------------------------------------
    1,455,000    Chemung County IDA (Arnot Ogden Medical Center)     5.000       11/01/2034        1,458,507
------------------------------------------------------------------------------------------------------------
    1,290,000    Chemung County IDA (Hathorn Redevel. Company)       4.850       07/01/2023        1,307,944
------------------------------------------------------------------------------------------------------------
    1,515,000    Chemung County IDA (Hathorn Redevel. Company)       5.000       07/01/2033        1,524,681
------------------------------------------------------------------------------------------------------------
    6,880,000    Chemung County IDA (St. Joseph's Hospital)          6.000       01/01/2013        6,508,205
------------------------------------------------------------------------------------------------------------
    7,060,000    Chemung County IDA (St. Joseph's Hospital)          6.350       01/01/2013        6,828,503
------------------------------------------------------------------------------------------------------------
    4,910,000    Chemung County IDA (St. Joseph's Hospital)          6.500       01/01/2019        4,634,696
------------------------------------------------------------------------------------------------------------
    1,960,000    Clifton Springs Hospital & Clinic                   7.650       01/01/2012        1,986,127
------------------------------------------------------------------------------------------------------------
    3,065,000    Clifton Springs Hospital & Clinic                   8.000       01/01/2020        3,093,811
------------------------------------------------------------------------------------------------------------
       35,000    Cohoes GO                                           6.200       03/15/2012           36,891
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.200       03/15/2013           26,249
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.250       03/15/2014           26,169
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.250       03/15/2015           26,121
------------------------------------------------------------------------------------------------------------
       25,000    Cohoes GO                                           6.250       03/15/2016           26,072
------------------------------------------------------------------------------------------------------------
    1,855,000    Columbia County IDA (Berkshire Farms)               7.500       12/15/2014        1,914,453
------------------------------------------------------------------------------------------------------------
    3,300,000    Corinth IDA (International Paper Company)           5.750       02/01/2022        3,426,093
------------------------------------------------------------------------------------------------------------
    5,370,000    Cortland County IDA (Cortland Memorial Hospital)    5.250       07/01/2032        5,563,589
------------------------------------------------------------------------------------------------------------
      155,000    Dutchess County IDA
                 (Astor Learning Center Civic Facility)              5.150       11/01/2024          161,657
------------------------------------------------------------------------------------------------------------
      120,000    Dutchess County IDA (Bard College)                  5.750       08/01/2030          128,669
------------------------------------------------------------------------------------------------------------
    3,500,000    Dutchess County IDA (Bard College)                  7.000       11/01/2017        3,548,090
------------------------------------------------------------------------------------------------------------
    1,000,000    Dutchess County IDA (St. Francis Hospital)          7.500       03/01/2029          998,630


                         20 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   2,505,000    Dutchess County IDA (Vassar Brothers Hospital)      6.500%      04/01/2020  $     2,736,312
------------------------------------------------------------------------------------------------------------
    5,615,000    Dutchess County IDA (Vassar Brothers Hospital)      6.500       04/01/2030        6,065,435
------------------------------------------------------------------------------------------------------------
       25,000    Dutchess County IDA (Vassar College)                5.350       09/01/2040           26,224
------------------------------------------------------------------------------------------------------------
    1,000,000    Dutchess County Water & Wastewater Authority        0.000 1     06/01/2027          335,260
------------------------------------------------------------------------------------------------------------
    3,350,000    East Rochester Hsg. Authority (Episcopal
                 Senior Hsg.)                                        7.750       10/01/2032        3,362,027
------------------------------------------------------------------------------------------------------------
    1,355,000    East Rochester Hsg. Authority (Gates
                 Senior Hsg.)                                        6.125       04/20/2043        1,499,511
------------------------------------------------------------------------------------------------------------
    1,400,000    East Rochester Hsg. Authority
                 (Genesee Valley Nursing Home)                       5.200       12/20/2024        1,487,402
------------------------------------------------------------------------------------------------------------
    2,665,000    East Rochester Hsg. Authority
                 (Jefferson Park Apartments)                         6.750       03/01/2030        2,566,848
------------------------------------------------------------------------------------------------------------
    2,000,000    East Rochester Hsg. Authority (Linden Knoll)        5.350       02/01/2038        2,026,600
------------------------------------------------------------------------------------------------------------
    4,095,000    East Rochester Hsg. Authority (St. John's
                 Meadows)                                            5.950       08/01/2027        4,270,594
------------------------------------------------------------------------------------------------------------
      525,000    Erie County IDA (Air Cargo)                         8.250       10/01/2007          526,979
------------------------------------------------------------------------------------------------------------
    2,380,000    Erie County IDA (Air Cargo)                         8.500       10/01/2015        2,390,282
------------------------------------------------------------------------------------------------------------
    1,760,000    Erie County IDA (DePaul Properties)                 5.750       09/01/2028        1,384,821
------------------------------------------------------------------------------------------------------------
    3,055,000    Erie County IDA (DePaul Properties)                 6.500       09/01/2018        2,869,287
------------------------------------------------------------------------------------------------------------
   11,310,000    Erie County IDA (Medaille College)                  7.625       04/01/2035       11,675,879
------------------------------------------------------------------------------------------------------------
    3,515,000    Erie County IDA (Medaille College)                  8.250       11/01/2026        3,680,170
------------------------------------------------------------------------------------------------------------
    2,340,000    Erie County IDA (Mercy Hospital)                    6.250       06/01/2010        2,222,485
------------------------------------------------------------------------------------------------------------
       25,000    Erie County IDA (The Episcopal Church Home)         5.875       02/01/2018           25,743
------------------------------------------------------------------------------------------------------------
    9,600,000    Erie County IDA (The Episcopal Church Home)         6.000       02/01/2028        9,819,648
------------------------------------------------------------------------------------------------------------
      620,000    Erie County Tobacco Asset Securitization Corp.      6.125       07/15/2030          600,563
------------------------------------------------------------------------------------------------------------
   10,560,000    Erie County Tobacco Asset Securitization Corp.      6.250       07/15/2040       10,302,442
------------------------------------------------------------------------------------------------------------
       90,000    Erie County Tobacco Asset Securitization Corp.      6.500       07/15/2032           90,234
------------------------------------------------------------------------------------------------------------
   10,120,000    Erie County Tobacco Asset Securitization
                 Corp. RITES 2                                       9.519 3     07/15/2040        9,626,245
------------------------------------------------------------------------------------------------------------
   22,440,000    Erie County Tobacco Asset Securitization
                 Corp. RITES 2                                      10.519 3     07/15/2040       23,326,829
------------------------------------------------------------------------------------------------------------
    4,440,000    Essex County IDA (International Paper Company)      5.200       03/01/2028        4,430,765
------------------------------------------------------------------------------------------------------------
    1,850,000    Essex County IDA (International Paper Company)      5.500       08/15/2022        1,878,897
------------------------------------------------------------------------------------------------------------
    1,625,000    Essex County IDA (International Paper Company)      5.500       10/01/2026        1,643,753
------------------------------------------------------------------------------------------------------------
      310,000    Essex County IDA (International Paper Company)      5.800       12/01/2019          319,895
------------------------------------------------------------------------------------------------------------
    2,300,000    Essex County IDA (International Paper Company)      6.450       11/15/2023        2,487,473
------------------------------------------------------------------------------------------------------------
    5,000,000    Essex County IDA (Moses Ludington Nursing Home)     6.375       02/01/2050        5,545,400
------------------------------------------------------------------------------------------------------------
      225,000    Essex County IDA (Moses Ludington Nursing Home)     9.000       02/01/2008          227,212
------------------------------------------------------------------------------------------------------------
    5,680,000    Franklin County IDA (Adirondack Medical Center)     5.500       12/01/2029        6,002,056
------------------------------------------------------------------------------------------------------------
      430,000    Glen Cove IDA (SLCD)                                6.875       07/01/2008          431,810
------------------------------------------------------------------------------------------------------------
    3,775,000    Glen Cove IDA (SLCD)                                7.375       07/01/2023        3,891,270
------------------------------------------------------------------------------------------------------------
    1,355,000    Green Island Power Authority                        5.125       12/15/2024        1,367,588
------------------------------------------------------------------------------------------------------------
    2,795,000    Green Island Power Authority                        6.000       12/15/2020        2,966,166
------------------------------------------------------------------------------------------------------------
    1,695,000    Green Island Power Authority                        6.000       12/15/2025        1,767,241
------------------------------------------------------------------------------------------------------------
      840,000    Hempstead GO                                        5.000       07/01/2020          859,782
------------------------------------------------------------------------------------------------------------
    1,025,000    Hempstead GO                                        5.000       07/01/2021        1,044,803
------------------------------------------------------------------------------------------------------------
    1,270,000    Hempstead GO                                        5.000       07/01/2022        1,292,111


                         21 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   2,500,000    Hempstead IDA (Adelphi University)                  5.500%      06/01/2032  $     2,661,100
------------------------------------------------------------------------------------------------------------
    3,735,000    Hempstead IDA (Bristal Gardens)                     7.500       05/01/2046        3,732,498
------------------------------------------------------------------------------------------------------------
    5,175,000    Hempstead IDA (Bristal Gardens)                     7.500       05/01/2046        5,255,678
------------------------------------------------------------------------------------------------------------
    5,175,000    Hempstead IDA (Bristal Gardens)                     7.500       05/01/2046        5,213,502
------------------------------------------------------------------------------------------------------------
    7,250,000    Hempstead IDA (Bristal Gardens) 6                   7.500       05/01/2046        7,363,028
------------------------------------------------------------------------------------------------------------
      345,000    Hempstead IDA (Dentaco Corp.)                       7.250       11/01/2012          352,880
------------------------------------------------------------------------------------------------------------
    1,270,000    Hempstead IDA (Dentaco Corp.)                       8.250       11/01/2025        1,321,041
------------------------------------------------------------------------------------------------------------
    4,140,000    Hempstead IDA (Engel Burman Senior Hsg.)            6.250       11/01/2010        4,148,528
------------------------------------------------------------------------------------------------------------
   18,825,000    Hempstead IDA (Engel Burman Senior Hsg.)            6.750       11/01/2024       18,869,427
------------------------------------------------------------------------------------------------------------
    2,435,000    Hempstead IDA (Franklin Hospital
                 Medical Center)                                     5.750       11/01/2008        2,409,286
------------------------------------------------------------------------------------------------------------
    9,375,000    Hempstead IDA (Franklin Hospital
                 Medical Center)                                     6.375       11/01/2018        9,134,813
------------------------------------------------------------------------------------------------------------
    9,540,000    Hempstead IDA (Franklin Hospital
                 Medical Center)                                     7.750       11/01/2022       10,214,096
------------------------------------------------------------------------------------------------------------
    2,500,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044        2,548,025
------------------------------------------------------------------------------------------------------------
    5,700,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044        5,700,798
------------------------------------------------------------------------------------------------------------
    4,770,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044        4,861,632
------------------------------------------------------------------------------------------------------------
   12,530,000    Hempstead IDA (Hungry Harbor Associates)            8.000       05/01/2044       12,770,701
------------------------------------------------------------------------------------------------------------
    6,355,000    Hempstead IDA (South Shore Y JCC)                   6.750       11/01/2024        6,384,869
------------------------------------------------------------------------------------------------------------
    8,110,000    Herkimer County IDA (Burrows Paper) 2               8.000       01/01/2009        7,982,105
------------------------------------------------------------------------------------------------------------
    1,285,000    Herkimer County IDA (College Foundation)            6.400       11/01/2020        1,376,299
------------------------------------------------------------------------------------------------------------
    2,000,000    Herkimer County IDA (College Foundation)            6.500       11/01/2030        2,102,980
------------------------------------------------------------------------------------------------------------
    1,000,000    Herkimer County IDA
                 (Herkimer County College Foundation)                6.250       08/01/2034        1,048,830
------------------------------------------------------------------------------------------------------------
      295,000    Herkimer Hsg. Authority                             7.150       03/01/2011          297,882
------------------------------------------------------------------------------------------------------------
      990,000    Hudson IDA (Have, Inc.)                             8.125       12/01/2017          992,732
------------------------------------------------------------------------------------------------------------
    1,255,000    Hudson IDA (Hudson Fabrics)                         6.750       11/01/2024        1,263,785
------------------------------------------------------------------------------------------------------------
      145,000    Huntington Hsg. Authority (GJSR)                    5.875       05/01/2019          142,441
------------------------------------------------------------------------------------------------------------
    1,000,000    Huntington Hsg. Authority (GJSR)                    6.000       05/01/2029          970,420
------------------------------------------------------------------------------------------------------------
    8,500,000    Huntington Hsg. Authority (GJSR)                    6.000       05/01/2039        8,119,540
------------------------------------------------------------------------------------------------------------
      845,000    Islip IDA (Leeway School)                           9.000       08/01/2021          846,318
------------------------------------------------------------------------------------------------------------
   19,065,000    Islip IDA (Southside Hospital Civic Facilities)     7.750       12/01/2022       20,149,417
------------------------------------------------------------------------------------------------------------
    1,315,000    Islip Res Rec, Series E                             5.750       07/01/2021        1,463,043
------------------------------------------------------------------------------------------------------------
    1,000,000    Islip Res Rec, Series E                             5.750       07/01/2023        1,106,820
------------------------------------------------------------------------------------------------------------
    3,000,000    Kenmore Hsg. Authority (SUNY at Buffalo)            5.500       08/01/2024        3,202,110
------------------------------------------------------------------------------------------------------------
    3,000,000    L.I. Power Authority                                5.750       12/01/2024        3,283,170
------------------------------------------------------------------------------------------------------------
    7,905,000    L.I. Power Authority RITES 2                       12.697 3     12/01/2022       10,238,872
------------------------------------------------------------------------------------------------------------
   21,000,000    L.I. Power Authority RITES 2                       12.698 3     12/01/2022       27,200,040
------------------------------------------------------------------------------------------------------------
    3,750,000    L.I. Power Authority RITES 2                       13.162 3     12/01/2026        4,766,250
------------------------------------------------------------------------------------------------------------
    2,915,000    L.I. Power Authority RITES 2                       13.242 3     09/01/2028        3,665,671
------------------------------------------------------------------------------------------------------------
   24,130,000    L.I. Power Authority, Series A                      5.125       09/01/2029       24,716,600
------------------------------------------------------------------------------------------------------------
   44,530,000    L.I. Power Authority, Series A                      5.375       09/01/2025       47,502,378
------------------------------------------------------------------------------------------------------------
   86,300,000    L.I. Power Authority, Series L                      5.375       05/01/2033       89,764,945


                         22 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     100,000    Lowville GO                                         7.200%      09/15/2012  $       123,522
------------------------------------------------------------------------------------------------------------
      100,000    Lowville GO                                         7.200       09/15/2013          124,514
------------------------------------------------------------------------------------------------------------
      100,000    Lowville GO                                         7.200       09/15/2014          125,899
------------------------------------------------------------------------------------------------------------
    3,830,000    Lyons Community Health Initiatives Corp.            5.550       09/01/2024        4,012,193
------------------------------------------------------------------------------------------------------------
    4,410,000    Macleay Hsg. Corp. (Larchmont Woods)                8.500       01/01/2031        4,460,274
------------------------------------------------------------------------------------------------------------
    1,290,000    Madison County IDA (Oneida Healthcare Center)       5.300       02/01/2021        1,365,401
------------------------------------------------------------------------------------------------------------
    5,500,000    Madison County IDA (Oneida Healthcare Center)       5.350       02/01/2031        5,736,170
------------------------------------------------------------------------------------------------------------
       60,000    Middleton IDA (Flanagan Design & Display)           7.000       11/01/2006           61,273
------------------------------------------------------------------------------------------------------------
      690,000    Middleton IDA (Flanagan Design & Display)           7.500       11/01/2018          721,588
------------------------------------------------------------------------------------------------------------
    3,955,000    Middletown IDA (Southwinds Retirement Home)         6.375       03/01/2018        3,711,807
------------------------------------------------------------------------------------------------------------
      375,000    Middletown IDA (YMCA)                               6.250       11/01/2009          357,968
------------------------------------------------------------------------------------------------------------
    1,255,000    Middletown IDA (YMCA)                               7.000       11/01/2019        1,140,632
------------------------------------------------------------------------------------------------------------
      270,000    Monroe County COP                                   8.050       01/01/2011          282,299
------------------------------------------------------------------------------------------------------------
      780,000    Monroe County IDA (Canal Ponds)                     7.000       06/15/2013          795,288
------------------------------------------------------------------------------------------------------------
       50,000    Monroe County IDA (Cloverwood Senior Living)        6.750       05/01/2023           44,078
------------------------------------------------------------------------------------------------------------
    1,395,390    Monroe County IDA (Cottrone Devel.)                 9.500       12/01/2010        1,413,823
------------------------------------------------------------------------------------------------------------
      950,000    Monroe County IDA (Dayton Rogers Manufacturing)     6.100       12/01/2009          912,095
------------------------------------------------------------------------------------------------------------
    2,545,000    Monroe County IDA (DePaul Community Facilities)     5.875       02/01/2028        2,136,019
------------------------------------------------------------------------------------------------------------
    5,545,000    Monroe County IDA (DePaul Community Facilities)     5.950       08/01/2028        4,947,138
------------------------------------------------------------------------------------------------------------
      880,000    Monroe County IDA (DePaul Community Facilities)     6.450       02/01/2014          891,722
------------------------------------------------------------------------------------------------------------
    1,285,000    Monroe County IDA (DePaul Community Facilities)     6.500       02/01/2024        1,300,536
------------------------------------------------------------------------------------------------------------
    4,485,000    Monroe County IDA (DePaul Properties)               6.150       09/01/2021        4,068,702
------------------------------------------------------------------------------------------------------------
    1,000,000    Monroe County IDA
                 (Jewish Home of Rochester Senior Hsg.)              6.875       04/01/2017        1,037,580
------------------------------------------------------------------------------------------------------------
    5,005,000    Monroe County IDA
                 (Jewish Home of Rochester Senior Hsg.)              6.875       04/01/2027        5,174,119
------------------------------------------------------------------------------------------------------------
      190,000    Monroe County IDA (Machine Tool Research)           7.750       12/01/2006          188,573
------------------------------------------------------------------------------------------------------------
      600,000    Monroe County IDA (Machine Tool Research)           8.000       12/01/2011          589,116
------------------------------------------------------------------------------------------------------------
      300,000    Monroe County IDA (Machine Tool Research)           8.500       12/01/2013          292,617
------------------------------------------------------------------------------------------------------------
      820,000    Monroe County IDA (Melles Griot)                    9.500       12/01/2009          830,004
------------------------------------------------------------------------------------------------------------
    1,136,000    Monroe County IDA (Morrell/Morrell)                 7.000       12/01/2007        1,136,216
------------------------------------------------------------------------------------------------------------
    4,330,000    Monroe County IDA (Piano Works)                     7.625       11/01/2016        4,454,964
------------------------------------------------------------------------------------------------------------
    2,890,000    Monroe County IDA (Rochester Institute of
                 Technology)                                         5.375       04/01/2029        2,826,536
------------------------------------------------------------------------------------------------------------
    1,000,000    Monroe County IDA (Southview Towers)                6.125       02/01/2020        1,099,920
------------------------------------------------------------------------------------------------------------
    1,465,000    Monroe County IDA (St. John Fisher College)         5.200       06/01/2019        1,574,113
------------------------------------------------------------------------------------------------------------
    2,190,000    Monroe County IDA (St. John Fisher College)         5.250       06/01/2026        2,312,574
------------------------------------------------------------------------------------------------------------
    3,075,000    Monroe County IDA (St. John Fisher College)         5.375       06/01/2024        3,255,626
------------------------------------------------------------------------------------------------------------
      970,000    Monroe County IDA (Volunteers of America)           5.700       08/01/2018          977,314
------------------------------------------------------------------------------------------------------------
    2,720,000    Monroe County IDA (Volunteers of America)           5.750       08/01/2028        2,627,302
------------------------------------------------------------------------------------------------------------
      345,000    Monroe County IDA (West End Business)               8.000       12/01/2014          351,652
------------------------------------------------------------------------------------------------------------
      170,000    Monroe County IDA (West End Business)               8.000       12/01/2014          173,278
------------------------------------------------------------------------------------------------------------
      515,000    Monroe County IDA (West End Business)               8.000       12/01/2014          525,769


                         23 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,375,000    Monroe County IDA (West End Business)               8.000%      12/01/2014  $     1,407,354
------------------------------------------------------------------------------------------------------------
   12,000,000    Monroe County IDA (Woodlawn Village)                8.550       11/15/2032       13,114,560
------------------------------------------------------------------------------------------------------------
   16,285,000    Monroe County Tobacco Asset Securitization Corp.    6.375       06/01/2035       16,229,631
------------------------------------------------------------------------------------------------------------
    3,000,000    Monroe County Tobacco Asset Securitization
                 Corp. Fixed Receipts                                6.600       06/01/2042        3,027,030
------------------------------------------------------------------------------------------------------------
   15,000,000    Monroe County Tobacco Asset Securitization
                 Corp. RITES 2                                       9.769 3     06/01/2035       14,898,150
------------------------------------------------------------------------------------------------------------
    6,870,000    Monroe County Tobacco Asset Securitization
                 Corp. RITES 2                                      10.384 3     06/01/2042        6,993,729
------------------------------------------------------------------------------------------------------------
    9,000,000    Monroe County Tobacco Asset Securitization
                 Corp. RITES 2                                      14.258 3     06/01/2042        9,243,180
------------------------------------------------------------------------------------------------------------
    2,160,000    Monroe Newpower Corp.                               5.500       01/01/2034        2,232,166
------------------------------------------------------------------------------------------------------------
      580,000    Monroe Newpower Corp.                               5.625       01/01/2026          611,993
------------------------------------------------------------------------------------------------------------
    5,860,000    Montgomery County IDA (ASMF) 2,4,5                  7.250       01/15/2019          580,140
------------------------------------------------------------------------------------------------------------
      500,000    Mount Vernon IDA (Kings Court)                      5.200       12/01/2033          501,505
------------------------------------------------------------------------------------------------------------
    3,275,000    Mount Vernon IDA (Macedonia Towers)                 5.200       12/01/2033        3,284,858
------------------------------------------------------------------------------------------------------------
    2,295,000    Mount Vernon IDA (Meadowview)                       6.150       06/01/2019        2,327,589
------------------------------------------------------------------------------------------------------------
    2,600,000    Mount Vernon IDA (Meadowview)                       6.200       06/01/2029        2,629,120
------------------------------------------------------------------------------------------------------------
   14,200,000    MTA RITES 2                                        12.162 3     11/15/2025       16,693,804
------------------------------------------------------------------------------------------------------------
    1,910,000    MTA RITES 2                                        12.162 3     11/15/2028        2,142,600
------------------------------------------------------------------------------------------------------------
   10,000,000    MTA RITES 2                                        12.162 3     11/15/2030       11,057,800
------------------------------------------------------------------------------------------------------------
    5,000,000    MTA RITES 2                                        12.162 3     11/15/2030        5,528,900
------------------------------------------------------------------------------------------------------------
    2,890,000    MTA RITES 2                                        12.162 3     11/15/2030        3,195,704
------------------------------------------------------------------------------------------------------------
    7,500,000    MTA RITES 2                                        12.162 3     11/15/2031        8,273,550
------------------------------------------------------------------------------------------------------------
    2,125,000    MTA RITES 2                                        12.162 3     11/15/2032        2,338,478
------------------------------------------------------------------------------------------------------------
    2,220,000    MTA Service Contract RITES 2                       12.662 3     01/01/2024        2,641,933
------------------------------------------------------------------------------------------------------------
   20,000,000    MTA Service Contract, Series A                      5.125       01/01/2024       20,950,400
------------------------------------------------------------------------------------------------------------
  136,550,000    MTA Service Contract, Series A                      5.125       01/01/2029      140,486,737
------------------------------------------------------------------------------------------------------------
   20,000,000    MTA Service Contract, Series A                      5.750       07/01/2031       22,631,800
------------------------------------------------------------------------------------------------------------
   33,275,000    MTA Service Contract, Series B                      5.250       01/01/2031       34,795,002
------------------------------------------------------------------------------------------------------------
   42,295,000    MTA, Series A                                       5.125       11/15/2031       43,368,870
------------------------------------------------------------------------------------------------------------
   20,000,000    MTA, Series B                                       5.250       11/15/2032       20,827,800
------------------------------------------------------------------------------------------------------------
   34,755,000    MTA, Series E                                       5.250       11/15/2031       36,082,293
------------------------------------------------------------------------------------------------------------
      802,824    Municipal Assistance Corp. for Troy, NY             0.000 1     07/15/2021          383,019
------------------------------------------------------------------------------------------------------------
    1,218,573    Municipal Assistance Corp. for Troy, NY             0.000 1     01/15/2022          562,859
------------------------------------------------------------------------------------------------------------
    1,195,000    Nassau County IDA (ALIA-ACDS)                       7.500       06/01/2015        1,307,784
------------------------------------------------------------------------------------------------------------
    2,975,000    Nassau County IDA (ALIA-ACLD)                       6.250       09/01/2022        3,035,571
------------------------------------------------------------------------------------------------------------
      250,000    Nassau County IDA (ALIA-ACLD)                       7.125       06/01/2017          268,415
------------------------------------------------------------------------------------------------------------
      400,000    Nassau County IDA (ALIA-ACLD)                       7.500       06/01/2015          437,752
------------------------------------------------------------------------------------------------------------
    6,175,000    Nassau County IDA (ALIA-CSMR)                       7.000       11/01/2016        6,646,400
------------------------------------------------------------------------------------------------------------
    3,705,000    Nassau County IDA (ALIA-CSMR)                       7.125       06/01/2017        3,982,542
------------------------------------------------------------------------------------------------------------
    1,995,000    Nassau County IDA (ALIA-CSMR)                       7.500       06/01/2015        2,183,288


                         24 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     365,000    Nassau County IDA (ALIA-FREE)                       7.125%      06/01/2012  $       396,846
------------------------------------------------------------------------------------------------------------
    2,465,000    Nassau County IDA (ALIA-FREE)                       7.500       06/01/2015        2,697,647
------------------------------------------------------------------------------------------------------------
    4,030,000    Nassau County IDA (ALIA-FREE)                       8.150       06/01/2030        4,331,525
------------------------------------------------------------------------------------------------------------
    6,550,000    Nassau County IDA (ALIA-FREE)                       8.250       06/01/2032        7,002,343
------------------------------------------------------------------------------------------------------------
      995,000    Nassau County IDA (ALIA-HH)                         7.125       06/01/2017        1,069,535
------------------------------------------------------------------------------------------------------------
      765,000    Nassau County IDA (ALIA-HHS)                        7.125       06/01/2017          822,306
------------------------------------------------------------------------------------------------------------
      260,000    Nassau County IDA (ALIA-LVH)                        7.500       06/01/2015          284,539
------------------------------------------------------------------------------------------------------------
      600,000    Nassau County IDA (CNGCS)                           7.500       06/01/2030          656,628
------------------------------------------------------------------------------------------------------------
    2,245,000    Nassau County IDA (CNGCS)                           8.150       06/01/2030        2,448,150
------------------------------------------------------------------------------------------------------------
    5,240,000    Nassau County IDA (Engel Burman Senior Hsg.)        7.750       05/01/2047        5,285,588
------------------------------------------------------------------------------------------------------------
    3,410,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        3,439,667
------------------------------------------------------------------------------------------------------------
    5,875,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        5,919,415
------------------------------------------------------------------------------------------------------------
    6,450,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        6,496,827
------------------------------------------------------------------------------------------------------------
    9,155,000    Nassau County IDA (Engel Burman Senior Hsg.) 6      7.750       05/01/2047        9,217,895
------------------------------------------------------------------------------------------------------------
      860,000    Nassau County IDA (Leo D. Bernstein & Sons)         8.000       11/01/2010          852,914
------------------------------------------------------------------------------------------------------------
    6,060,000    Nassau County IDA (Leo D. Bernstein & Sons)         8.875       11/01/2026        6,046,910
------------------------------------------------------------------------------------------------------------
    3,910,000    Nassau County IDA (Little Village School)           7.500       12/01/2031        4,138,852
------------------------------------------------------------------------------------------------------------
    2,290,000    Nassau County IDA (North Shore CFGA)                6.750       05/01/2024        2,301,152
------------------------------------------------------------------------------------------------------------
    2,759,599    Nassau County IDA (Sharp International) 2,4,5       7.375       12/01/2007          104,865
------------------------------------------------------------------------------------------------------------
    1,752,588    Nassau County IDA (Sharp International) 2,4,5       7.375       12/01/2007           66,598
------------------------------------------------------------------------------------------------------------
    2,527,212    Nassau County IDA (Sharp International) 2,4,5       7.875       12/01/2012           96,034
------------------------------------------------------------------------------------------------------------
    1,597,663    Nassau County IDA (Sharp International) 2,4,5       7.875       12/01/2012           60,711
------------------------------------------------------------------------------------------------------------
    2,050,000    Nassau County IDA (United Cerebral Palsy)           6.250       11/01/2014        1,999,652
------------------------------------------------------------------------------------------------------------
   24,400,000    Nassau County IDA (Westbury Senior Living)          7.900       11/01/2031       24,507,116
------------------------------------------------------------------------------------------------------------
    4,375,000    Nassau County IFA RITES 2                          12.755 3     11/15/2021        5,209,750
------------------------------------------------------------------------------------------------------------
   17,730,000    Nassau County Tobacco Settlement Corp. RITES 2      9.819 3     07/15/2033       18,355,692
------------------------------------------------------------------------------------------------------------
   10,535,000    Nassau County Tobacco Settlement Corp. RITES 2     10.019 3     07/15/2027       11,044,473
------------------------------------------------------------------------------------------------------------
   17,590,000    Nassau County Tobacco Settlement Corp. RITES 2     10.219 3     07/15/2039       18,471,435
------------------------------------------------------------------------------------------------------------
    7,155,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        7,350,546
------------------------------------------------------------------------------------------------------------
    3,340,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        3,344,977
------------------------------------------------------------------------------------------------------------
    4,290,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        4,296,392
------------------------------------------------------------------------------------------------------------
    6,195,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        6,244,436
------------------------------------------------------------------------------------------------------------
    4,775,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        4,782,115
------------------------------------------------------------------------------------------------------------
    4,775,000    Nassau IDA (EBS North Hills LLC)                    7.800       05/01/2045        4,806,515
------------------------------------------------------------------------------------------------------------
    2,000,000    New Hartford-Sunset Wood Funding Corp.              5.500       02/01/2029        2,090,300
------------------------------------------------------------------------------------------------------------
   13,010,000    New Rochelle IDA (College of New Rochelle)          5.250       07/01/2027       13,410,448
------------------------------------------------------------------------------------------------------------
    6,500,000    New Rochelle IDA (College of New Rochelle)          5.500       07/01/2019        6,905,535
------------------------------------------------------------------------------------------------------------
    4,950,000    Newark-Wayne Community Hospital                     5.875       01/15/2033        4,963,415
------------------------------------------------------------------------------------------------------------
    2,515,000    Newark-Wayne Community Hospital                     7.600       09/01/2015        2,505,544
------------------------------------------------------------------------------------------------------------
    3,300,000    Niagara County IDA (American Ref-Fuel Company)      5.550       11/15/2024        3,543,177
------------------------------------------------------------------------------------------------------------
    1,500,000    Niagara County IDA (Niagara University)             5.350       11/01/2023        1,598,895


                         25 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   5,400,000    Niagara County IDA (Niagara University)             5.400%      11/01/2031  $     5,633,118
------------------------------------------------------------------------------------------------------------
    1,550,000    Niagara County IDA (Sevenson Hotel)                 6.600       05/01/2007        1,550,357
------------------------------------------------------------------------------------------------------------
    6,500,000    Niagara County IDA (Solid Waste Disposal)           5.625       11/15/2024        6,987,630
------------------------------------------------------------------------------------------------------------
    1,305,000    Niagara County Tobacco Asset Securitization
                 Corp.                                               6.250       05/15/2034        1,283,337
------------------------------------------------------------------------------------------------------------
    5,915,000    Niagara County Tobacco Asset Securitization
                 Corp.                                               6.250       05/15/2040        5,770,556
------------------------------------------------------------------------------------------------------------
    1,700,000    Niagara Falls CSD COP (High School Facility)        5.375       06/15/2028        1,728,033
------------------------------------------------------------------------------------------------------------
      750,000    Niagara Falls CSD COP (High School Facility)        6.625       06/15/2028          810,840
------------------------------------------------------------------------------------------------------------
       25,000    Niagara Frontier Transportation Authority
                 (Buffalo Niagara International Airport)             5.625       04/01/2029           26,477
------------------------------------------------------------------------------------------------------------
      715,000    North Babylon Volunteer Fire Company                5.750       08/01/2022          784,312
------------------------------------------------------------------------------------------------------------
    1,555,000    North Country Devel. Authority
                 (Clarkson University)                               5.500       07/01/2019        1,648,362
------------------------------------------------------------------------------------------------------------
    3,145,000    North Country Devel. Authority
                 (Clarkson University)                               5.500       07/01/2029        3,276,052
------------------------------------------------------------------------------------------------------------
      375,000    North Tonawanda HDC (Bishop Gibbons Associates)     6.800       12/15/2007          392,516
------------------------------------------------------------------------------------------------------------
    3,295,000    North Tonawanda HDC (Bishop Gibbons Associates)     7.375       12/15/2021        3,679,428
------------------------------------------------------------------------------------------------------------
       25,000    Nunda GO                                            8.000       05/01/2010           29,981
------------------------------------------------------------------------------------------------------------
      715,000    NY Counties Tobacco Trust I (TASC)                  6.500       06/01/2035          714,950
------------------------------------------------------------------------------------------------------------
    3,975,000    NY Counties Tobacco Trust I (TASC) Fixed
                 Receipts 2                                          6.225       06/01/2028        3,969,197
------------------------------------------------------------------------------------------------------------
   11,915,000    NY Counties Tobacco Trust I (TASC) RITES 2         13.130 3     06/01/2028       11,862,812
------------------------------------------------------------------------------------------------------------
   29,525,000    NY Counties Tobacco Trust I RITES 2                 9.982 3     06/01/2042       29,902,920
------------------------------------------------------------------------------------------------------------
    9,105,000    NY Counties Tobacco Trust I RITES 2                10.019 3     06/01/2035        9,092,799
------------------------------------------------------------------------------------------------------------
   29,780,000    NY Counties Tobacco Trust II (TASC)                 5.625       06/01/2035       27,341,316
------------------------------------------------------------------------------------------------------------
   53,565,000    NY Counties Tobacco Trust II (TASC)                 5.750       06/01/2043       48,781,646
------------------------------------------------------------------------------------------------------------
      200,000    NY Counties Tobacco Trust III                       6.000       06/01/2043          191,342
------------------------------------------------------------------------------------------------------------
      450,000    NYC Educational Construction Fund                   5.500       04/01/2026          477,446
------------------------------------------------------------------------------------------------------------
      200,000    NYC GO                                              0.000 1     05/15/2012          149,790
------------------------------------------------------------------------------------------------------------
       40,000    NYC GO                                              0.000 1     10/01/2012           29,450
------------------------------------------------------------------------------------------------------------
    2,955,000    NYC GO                                              5.000       12/01/2033        2,997,582
------------------------------------------------------------------------------------------------------------
   30,550,000    NYC GO                                              5.000       11/01/2034       30,972,201
------------------------------------------------------------------------------------------------------------
       50,000    NYC GO                                              5.100       11/01/2019           52,678
------------------------------------------------------------------------------------------------------------
    4,910,000    NYC GO                                              5.100       08/15/2027        5,069,575
------------------------------------------------------------------------------------------------------------
    3,710,000    NYC GO                                              5.250       10/15/2021        3,952,857
------------------------------------------------------------------------------------------------------------
    1,015,000    NYC GO                                              5.250       08/15/2023        1,069,089
------------------------------------------------------------------------------------------------------------
      515,000    NYC GO                                              5.250       08/01/2024          538,561
------------------------------------------------------------------------------------------------------------
   33,420,000    NYC GO                                              5.250       06/01/2027       34,892,485
------------------------------------------------------------------------------------------------------------
    4,400,000    NYC GO                                              5.250       06/01/2028        4,601,300
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC GO                                              5.250       09/15/2033        1,042,850
------------------------------------------------------------------------------------------------------------
   20,830,000    NYC GO                                              5.375       12/01/2026       21,959,194
------------------------------------------------------------------------------------------------------------
      500,000    NYC GO                                              5.375       08/01/2027          522,830
------------------------------------------------------------------------------------------------------------
    1,115,000    NYC GO                                              5.375       03/15/2028        1,170,962
------------------------------------------------------------------------------------------------------------
   55,765,000    NYC GO                                              5.375       06/01/2032       58,456,219
------------------------------------------------------------------------------------------------------------
   11,500,000    NYC GO                                              5.500       08/01/2020       12,615,385


                         26 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$  11,860,000    NYC GO                                              5.500%      08/01/2021  $    12,947,681
------------------------------------------------------------------------------------------------------------
    1,255,000    NYC GO                                              5.500       06/01/2028        1,337,579
------------------------------------------------------------------------------------------------------------
    6,910,000    NYC GO                                              5.500       12/01/2031        7,319,072
------------------------------------------------------------------------------------------------------------
    7,075,000    NYC GO                                              5.500       11/15/2037        7,356,161
------------------------------------------------------------------------------------------------------------
    5,000,000    NYC GO                                              5.625       03/15/2019        5,446,800
------------------------------------------------------------------------------------------------------------
       20,000    NYC GO                                              5.750       02/01/2020           20,896
------------------------------------------------------------------------------------------------------------
    1,500,000    NYC GO                                              5.750       03/01/2020        1,680,255
------------------------------------------------------------------------------------------------------------
        5,000    NYC GO                                              5.950       08/01/2014            5,529
------------------------------------------------------------------------------------------------------------
   25,255,000    NYC GO                                              6.000       01/15/2021       28,816,965
------------------------------------------------------------------------------------------------------------
      335,000    NYC GO                                              6.350       05/15/2014          373,183
------------------------------------------------------------------------------------------------------------
        5,000    NYC GO                                              7.000       02/01/2010            5,019
------------------------------------------------------------------------------------------------------------
        5,000    NYC GO                                              7.250       08/15/2024            5,018
------------------------------------------------------------------------------------------------------------
       15,000    NYC GO                                              7.750       08/15/2028           15,089
------------------------------------------------------------------------------------------------------------
      100,000    NYC GO DIAMONDS                                     0.000 7     08/01/2025           88,903
------------------------------------------------------------------------------------------------------------
      837,000    NYC GO RIBS                                        10.120 3     08/12/2010          842,365
------------------------------------------------------------------------------------------------------------
      837,000    NYC GO RIBS                                        10.120 3     09/01/2011          842,348
------------------------------------------------------------------------------------------------------------
      322,522    NYC HDC (Albert Einstein Staff Hsg.)                6.500       12/15/2017          338,880
------------------------------------------------------------------------------------------------------------
    1,240,364    NYC HDC (Atlantic Plaza Towers)                     7.034       02/15/2019        1,305,533
------------------------------------------------------------------------------------------------------------
    1,045,000    NYC HDC (Barclay Avenue)                            6.450       04/01/2017        1,083,529
------------------------------------------------------------------------------------------------------------
    4,055,000    NYC HDC (Barclay Avenue)                            6.600       04/01/2033        4,187,639
------------------------------------------------------------------------------------------------------------
      304,807    NYC HDC (Bay Towers)                                6.500       08/15/2017          320,739
------------------------------------------------------------------------------------------------------------
    2,280,862    NYC HDC (Boulevard Towers)                          6.500       08/15/2017        2,399,787
------------------------------------------------------------------------------------------------------------
      387,029    NYC HDC (Bridgeview III)                            6.500       12/15/2017          407,259
------------------------------------------------------------------------------------------------------------
      416,133    NYC HDC (Cadman Plaza North)                        7.000       12/15/2018          437,527
------------------------------------------------------------------------------------------------------------
    1,081,962    NYC HDC (Cadman Towers)                             6.500       11/15/2018        1,138,527
------------------------------------------------------------------------------------------------------------
      154,673    NYC HDC (Candia House)                              6.500       06/15/2018          162,739
------------------------------------------------------------------------------------------------------------
    2,945,944    NYC HDC (Clinton Towers)                            6.500       07/15/2017        3,099,546
------------------------------------------------------------------------------------------------------------
      255,537    NYC HDC (Contello III)                              7.000       12/15/2018          268,950
------------------------------------------------------------------------------------------------------------
    1,204,944    NYC HDC (Cooper Gramercy)                           6.500       08/15/2017        1,267,770
------------------------------------------------------------------------------------------------------------
      919,362    NYC HDC (Court Plaza)                               6.500       08/15/2017          967,417
------------------------------------------------------------------------------------------------------------
    1,442,434    NYC HDC (Crown Gardens)                             7.250       01/15/2019        1,518,652
------------------------------------------------------------------------------------------------------------
    2,996,538    NYC HDC (East Midtown Plaza)                        6.500       11/15/2018        3,153,197
------------------------------------------------------------------------------------------------------------
    2,896,589    NYC HDC (Esplanade Gardens)                         7.000       01/15/2019        3,049,124
------------------------------------------------------------------------------------------------------------
       69,488    NYC HDC (Essex Terrace)                             6.500       07/15/2018           73,112
------------------------------------------------------------------------------------------------------------
      415,534    NYC HDC (Forest Park Crescent)                      6.500       12/15/2017          437,200
------------------------------------------------------------------------------------------------------------
    1,383,063    NYC HDC (Gouverneur Gardens)                        7.034       02/15/2019        1,455,922
------------------------------------------------------------------------------------------------------------
      955,339    NYC HDC (Janel Towers)                              6.500       09/15/2017        1,005,274
------------------------------------------------------------------------------------------------------------
      334,279    NYC HDC (Kingsbridge Arms)                          6.500       08/15/2017          351,752
------------------------------------------------------------------------------------------------------------
      191,669    NYC HDC (Kingsbridge Arms)                          6.500       11/15/2018          201,665
------------------------------------------------------------------------------------------------------------
    1,469,849    NYC HDC (Lincoln-Amsterdam)                         7.250       11/15/2018        1,545,458
------------------------------------------------------------------------------------------------------------
    2,198,163    NYC HDC (Montefiore Hospital Hsg. Sec. II)          6.500       10/15/2017        2,312,775


                         27 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,000,000    NYC HDC (Multifamily Hsg.), Series A                5.500%      11/01/2034  $     3,086,280
------------------------------------------------------------------------------------------------------------
   10,470,000    NYC HDC (Multifamily Hsg.), Series A                5.600       11/01/2042       10,852,888
------------------------------------------------------------------------------------------------------------
      775,000    NYC HDC (Multifamily Hsg.), Series C                5.700       05/01/2031          800,870
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC HDC (Multifamily Hsg.), Series E                5.200       11/01/2033        1,013,210
------------------------------------------------------------------------------------------------------------
   11,000,000    NYC HDC (Multifamily Hsg.), Series E-1              4.950       11/01/2034       11,067,430
------------------------------------------------------------------------------------------------------------
    2,155,000    NYC HDC (Multifamily Hsg.), Series F                5.200       11/01/2032        2,184,868
------------------------------------------------------------------------------------------------------------
    1,345,000    NYC HDC (Multifamily Hsg.), Series H-2              5.200       11/01/2038        1,346,439
------------------------------------------------------------------------------------------------------------
    3,400,000    NYC HDC (Multifamily Hsg.), Series H-2              5.250       05/01/2046        3,411,390
------------------------------------------------------------------------------------------------------------
   15,510,000    NYC HDC (Multifamily Hsg.), Series I-2              5.200       11/01/2038       15,550,326
------------------------------------------------------------------------------------------------------------
      734,102    NYC HDC (New Amsterdam House)                       6.500       08/15/2018          734,102
------------------------------------------------------------------------------------------------------------
      750,418    NYC HDC (New Amsterdam House)                       6.500       08/15/2018          752,332
------------------------------------------------------------------------------------------------------------
      902,856    NYC HDC (Riverbend)                                 6.500       11/15/2018          950,058
------------------------------------------------------------------------------------------------------------
    5,656,772    NYC HDC (Riverside Park Community)                  7.250       11/15/2018        5,960,427
------------------------------------------------------------------------------------------------------------
      395,504    NYC HDC (RNA House)                                 7.000       12/15/2018          416,323
------------------------------------------------------------------------------------------------------------
      557,644    NYC HDC (Robert Fulton Terrace)                     6.500       12/15/2017          586,792
------------------------------------------------------------------------------------------------------------
      206,388    NYC HDC (Rosalie Manning Apartments)                7.034       11/15/2018          217,228
------------------------------------------------------------------------------------------------------------
      549,632    NYC HDC (Scott Tower)                               7.000       12/15/2018          578,482
------------------------------------------------------------------------------------------------------------
      751,882    NYC HDC (Seaview Towers)                            6.500       01/15/2018          791,093
------------------------------------------------------------------------------------------------------------
      310,602    NYC HDC (St. Martin Tower)                          6.500       11/15/2018          326,840
------------------------------------------------------------------------------------------------------------
    1,437,113    NYC HDC (Stevenson Commons)                         6.500       05/15/2018        1,512,059
------------------------------------------------------------------------------------------------------------
      409,747    NYC HDC (Strycker's Bay Apartments)                 7.034       11/15/2018          415,430
------------------------------------------------------------------------------------------------------------
    1,431,106    NYC HDC (Tivoli Towers)                             6.500       01/15/2018        1,504,894
------------------------------------------------------------------------------------------------------------
      194,402    NYC HDC (Town House West)                           6.500       01/15/2018          204,406
------------------------------------------------------------------------------------------------------------
      299,969    NYC HDC (Tri-Faith House)                           7.000       01/15/2019          315,724
------------------------------------------------------------------------------------------------------------
    1,257,886    NYC HDC (University River View)                     6.500       08/15/2017        1,323,636
------------------------------------------------------------------------------------------------------------
      382,264    NYC HDC (Washington Square Southeast)               7.000       01/15/2019          402,115
------------------------------------------------------------------------------------------------------------
      343,643    NYC HDC (West Side Manor)                           6.500       11/15/2018          361,564
------------------------------------------------------------------------------------------------------------
      215,821    NYC HDC (Westview Apartments)                       6.500       10/15/2017          227,102
------------------------------------------------------------------------------------------------------------
      510,778    NYC HDC (Woodstock Terrace)                         7.034       02/15/2019          537,614
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC Health & Hospital Corp.                         5.375       02/15/2026        1,040,340
------------------------------------------------------------------------------------------------------------
    5,875,000    NYC Health & Hospital Corp. RITES 2                12.232 3     02/15/2020        7,272,310
------------------------------------------------------------------------------------------------------------
    1,245,000    NYC IDA (A Very Special Place)                      5.750       01/01/2029        1,036,487
------------------------------------------------------------------------------------------------------------
      400,000    NYC IDA (A-Lite Vertical Products)                  6.750       11/01/2009          395,560
------------------------------------------------------------------------------------------------------------
    1,330,000    NYC IDA (A-Lite Vertical Products)                  7.500       11/01/2019        1,314,905
------------------------------------------------------------------------------------------------------------
    3,600,000    NYC IDA (Acme Architectural Products)               6.375       11/01/2019        3,267,756
------------------------------------------------------------------------------------------------------------
   29,635,000    NYC IDA (Airis JFK I/JFK International Airport)     5.500       07/01/2028       29,688,047
------------------------------------------------------------------------------------------------------------
   20,745,000    NYC IDA (Airis JFK I/JFK International Airport)     6.000       07/01/2027       21,178,363
------------------------------------------------------------------------------------------------------------
    1,035,000    NYC IDA (ALA Realty)                                7.500       12/01/2010        1,063,421
------------------------------------------------------------------------------------------------------------
    1,450,000    NYC IDA (ALA Realty)                                8.375       12/01/2015        1,510,335
------------------------------------------------------------------------------------------------------------
      330,000    NYC IDA (Allied Metal)                              6.375       12/01/2014          328,400
------------------------------------------------------------------------------------------------------------
      940,000    NYC IDA (Allied Metal)                              7.125       12/01/2027          944,493


                         28 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,360,000    NYC IDA (Amboy Properties)                          6.750%      06/01/2020  $     3,121,742
------------------------------------------------------------------------------------------------------------
    2,595,000    NYC IDA (American Airlines)                         5.400       07/01/2019        1,684,025
------------------------------------------------------------------------------------------------------------
   29,935,000    NYC IDA (American Airlines)                         5.400       07/01/2020       19,200,908
------------------------------------------------------------------------------------------------------------
   38,410,000    NYC IDA (American Airlines)                         6.900       08/01/2024       28,239,416
------------------------------------------------------------------------------------------------------------
  331,800,000    NYC IDA (American Airlines)                         8.500       08/01/2028      271,332,768
------------------------------------------------------------------------------------------------------------
      705,000    NYC IDA (Atlantic Paste & Glue Company)             6.000       11/01/2007          705,296
------------------------------------------------------------------------------------------------------------
    4,620,000    NYC IDA (Atlantic Paste & Glue Company)             6.625       11/01/2019        4,671,467
------------------------------------------------------------------------------------------------------------
    1,160,000    NYC IDA (Atlantic Veal & Lamb)                      8.375       12/01/2016        1,207,908
------------------------------------------------------------------------------------------------------------
      605,000    NYC IDA (Baco Enterprises)                          7.500       11/01/2011          609,168
------------------------------------------------------------------------------------------------------------
    1,685,000    NYC IDA (Baco Enterprises)                          8.500       11/01/2021        1,693,257
------------------------------------------------------------------------------------------------------------
      225,000    NYC IDA (Bark Frameworks)                           6.000       11/01/2007          218,957
------------------------------------------------------------------------------------------------------------
    1,500,000    NYC IDA (Bark Frameworks)                           6.750       11/01/2019        1,398,210
------------------------------------------------------------------------------------------------------------
   10,915,000    NYC IDA (Berkeley Carroll School)                   6.100       11/01/2028       10,010,365
------------------------------------------------------------------------------------------------------------
    5,500,000    NYC IDA (Beth Abraham Health Services)              6.500       02/15/2022        5,804,370
------------------------------------------------------------------------------------------------------------
    1,035,000    NYC IDA (Beth Abraham Health Services)              6.500       11/15/2027        1,066,329
------------------------------------------------------------------------------------------------------------
    4,220,000    NYC IDA (Beth Abraham Health Services)              6.500       11/15/2034        4,349,174
------------------------------------------------------------------------------------------------------------
   30,430,000    NYC IDA (British Airways)                           5.250       12/01/2032       23,675,149
------------------------------------------------------------------------------------------------------------
   14,890,000    NYC IDA (British Airways)                           7.625       12/01/2032       15,464,307
------------------------------------------------------------------------------------------------------------
   72,320,000    NYC IDA (Brooklyn Navy Yard Cogeneration
                 Partners)                                           5.650       10/01/2028       70,062,893
------------------------------------------------------------------------------------------------------------
  139,740,000    NYC IDA (Brooklyn Navy Yard Cogeneration
                 Partners)                                           5.750       10/01/2036      132,428,803
------------------------------------------------------------------------------------------------------------
    8,510,000    NYC IDA (Brooklyn Navy Yard Cogeneration
                 Partners)                                           6.200       10/01/2022        8,598,674
------------------------------------------------------------------------------------------------------------
   16,205,000    NYC IDA (Calhoun School)                            6.625       12/01/2034       16,607,046
------------------------------------------------------------------------------------------------------------
      345,000    NYC IDA (Cellini Furniture Crafters) 2              6.625       11/01/2009          322,851
------------------------------------------------------------------------------------------------------------
      885,000    NYC IDA (Cellini Furniture Crafters) 2              7.125       11/01/2019          810,722
------------------------------------------------------------------------------------------------------------
    2,235,000    NYC IDA (Chardan Corp.)                             7.750       11/01/2020        2,201,788
------------------------------------------------------------------------------------------------------------
    2,500,000    NYC IDA (College of Aeronautics)                    5.450       05/01/2018        2,576,550
------------------------------------------------------------------------------------------------------------
    9,600,000    NYC IDA (College of Aeronautics)                    5.500       05/01/2028        9,654,240
------------------------------------------------------------------------------------------------------------
    2,500,000    NYC IDA (College of New Rochelle)                   5.750       09/01/2017        2,643,025
------------------------------------------------------------------------------------------------------------
    2,900,000    NYC IDA (College of New Rochelle)                   5.800       09/01/2026        3,044,072
------------------------------------------------------------------------------------------------------------
    2,400,000    NYC IDA (Community Hospital of Brooklyn)            6.875       11/01/2010        2,349,576
------------------------------------------------------------------------------------------------------------
    3,975,000    NYC IDA (Comprehensive Care Management)             6.375       11/01/2028        4,002,348
------------------------------------------------------------------------------------------------------------
    1,575,000    NYC IDA (Comprehensive Care Management)             6.375       11/01/2028        1,585,647
------------------------------------------------------------------------------------------------------------
    1,770,000    NYC IDA (Comprehensive Care Management)             7.875       12/01/2016        1,884,006
------------------------------------------------------------------------------------------------------------
    1,250,000    NYC IDA (Comprehensive Care Management)             8.000       12/01/2011        1,277,238
------------------------------------------------------------------------------------------------------------
    1,900,000    NYC IDA (Continental Airlines)                      7.250       11/01/2008        1,901,615
------------------------------------------------------------------------------------------------------------
    2,000,000    NYC IDA (Continental Airlines)                      8.375       11/01/2016        1,904,280
------------------------------------------------------------------------------------------------------------
      550,000    NYC IDA (Dioni)                                     6.000       11/01/2007          547,800
------------------------------------------------------------------------------------------------------------
    3,600,000    NYC IDA (Dioni)                                     6.625       11/01/2019        3,625,560
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (Eger Harbor House)                         5.875       05/20/2044        1,105,810
------------------------------------------------------------------------------------------------------------
    5,500,000    NYC IDA (Family Support Systems)                    7.500       11/01/2034        5,500,000
------------------------------------------------------------------------------------------------------------
    7,315,000    NYC IDA (Friends Seminary School)                   7.125       09/15/2031        7,870,794


                         29 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,280,000    NYC IDA (Gabrielli Truck Sales)                     8.125%      12/01/2017  $     3,477,062
------------------------------------------------------------------------------------------------------------
    2,265,000    NYC IDA (Gateway School of NY)                      6.500       11/01/2019        2,408,103
------------------------------------------------------------------------------------------------------------
    8,000,000    NYC IDA (General Motors Corp.)                      5.125       12/30/2023        8,029,280
------------------------------------------------------------------------------------------------------------
    2,175,000    NYC IDA (Good Shepherd Services)                    5.875       06/01/2014        2,216,477
------------------------------------------------------------------------------------------------------------
    1,130,000    NYC IDA (Graphic Artists)                           8.250       12/30/2023        1,145,289
------------------------------------------------------------------------------------------------------------
      405,000    NYC IDA (Herbert G. Birch Childhood Project)        7.375       02/01/2009          407,264
------------------------------------------------------------------------------------------------------------
    2,195,000    NYC IDA (Herbert G. Birch Childhood Project)        8.375       02/01/2022        2,287,366
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (Institute of International Education)      5.250       09/01/2021        1,053,610
------------------------------------------------------------------------------------------------------------
    3,000,000    NYC IDA (Institute of International Education)      5.250       09/01/2031        3,105,090
------------------------------------------------------------------------------------------------------------
    1,605,000    NYC IDA (Julia Gray)                                7.500       11/01/2020        1,630,969
------------------------------------------------------------------------------------------------------------
      870,000    NYC IDA (Just Bagels Manufacturing)                 8.500       11/01/2016          934,537
------------------------------------------------------------------------------------------------------------
    1,050,000    NYC IDA (Just Bagels Manufacturing)                 8.750       11/01/2026        1,132,289
------------------------------------------------------------------------------------------------------------
    1,675,000    NYC IDA (Koenig Iron Works)                         8.375       12/01/2025        1,770,073
------------------------------------------------------------------------------------------------------------
    1,380,000    NYC IDA (L&M Optical Disc)                          7.125       11/01/2010        1,391,785
------------------------------------------------------------------------------------------------------------
    3,025,000    NYC IDA (Little Red Schoolhouse)                    6.750       11/01/2018        3,144,488
------------------------------------------------------------------------------------------------------------
      470,000    NYC IDA (Lucky Polyethylene Manufacturing
                 Company)                                            7.000       11/01/2009          440,616
------------------------------------------------------------------------------------------------------------
    2,995,000    NYC IDA (Lucky Polyethylene Manufacturing
                 Company)                                            7.800       11/01/2024        2,682,442
------------------------------------------------------------------------------------------------------------
    2,000,000    NYC IDA (Lycee Francais De New York)                5.375       06/01/2023        2,077,580
------------------------------------------------------------------------------------------------------------
   23,000,000    NYC IDA (Magen David Yeshivah)                      5.700       06/15/2027       24,419,790
------------------------------------------------------------------------------------------------------------
      680,000    NYC IDA (Marymount School of NY)                    5.125       09/01/2021          700,577
------------------------------------------------------------------------------------------------------------
    3,960,000    NYC IDA (Marymount School of NY)                    5.250       09/01/2031        4,099,907
------------------------------------------------------------------------------------------------------------
   19,335,000    NYC IDA (MediSys Health Network)                    6.250       03/15/2024       17,624,626
------------------------------------------------------------------------------------------------------------
    1,915,000    NYC IDA (Mesorah Publications)                      6.450       02/01/2011        1,928,692
------------------------------------------------------------------------------------------------------------
    4,790,000    NYC IDA (Mesorah Publications)                      6.950       02/01/2021        4,709,959
------------------------------------------------------------------------------------------------------------
    2,275,000    NYC IDA (Morrisons Pastry)                          6.500       11/01/2019        2,247,700
------------------------------------------------------------------------------------------------------------
   18,510,000    NYC IDA (Northwest Airlines)                        6.000       06/01/2027       13,236,871
------------------------------------------------------------------------------------------------------------
    4,180,000    NYC IDA (NY Hostel Company)                         7.600       01/01/2017        4,277,896
------------------------------------------------------------------------------------------------------------
      405,000    NYC IDA (NY Vanities & Manufacturing)               7.000       11/01/2009          391,501
------------------------------------------------------------------------------------------------------------
    1,405,000    NYC IDA (NY Vanities & Manufacturing)               7.500       11/01/2019        1,354,308
------------------------------------------------------------------------------------------------------------
      715,000    NYC IDA (NYC Outward Bound Center)                  7.250       11/01/2010          721,178
------------------------------------------------------------------------------------------------------------
      420,000    NYC IDA (Paradise Products)                         7.125       11/01/2007          427,766
------------------------------------------------------------------------------------------------------------
    4,475,000    NYC IDA (Paradise Products)                         8.250       11/01/2022        4,695,931
------------------------------------------------------------------------------------------------------------
      680,000    NYC IDA (Petrocelli Electric)                       7.250       11/01/2007          697,170
------------------------------------------------------------------------------------------------------------
      220,000    NYC IDA (Petrocelli Electric)                       7.250       11/01/2008          226,004
------------------------------------------------------------------------------------------------------------
    3,780,000    NYC IDA (Petrocelli Electric)                       8.000       11/01/2017        3,928,705
------------------------------------------------------------------------------------------------------------
      940,000    NYC IDA (Petrocelli Electric)                       8.000       11/01/2018          984,208
------------------------------------------------------------------------------------------------------------
    6,310,000    NYC IDA (Polytechnic University)                    6.000       11/01/2020        6,057,411
------------------------------------------------------------------------------------------------------------
   34,000,000    NYC IDA (Polytechnic University)                    6.125       11/01/2030       32,594,780
------------------------------------------------------------------------------------------------------------
      180,000    NYC IDA (Pop Display)                               6.750       12/15/2004          180,000
------------------------------------------------------------------------------------------------------------
    2,645,000    NYC IDA (Pop Display)                               7.900       12/30/2014        2,674,095
------------------------------------------------------------------------------------------------------------
    2,240,000    NYC IDA (Precision Gear)                            6.375       11/01/2024        2,236,170


                         30 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,910,000    NYC IDA (Precision Gear)                            6.375%      11/01/2024  $     1,884,482
------------------------------------------------------------------------------------------------------------
      930,000    NYC IDA (Precision Gear)                            7.625       11/01/2024          976,556
------------------------------------------------------------------------------------------------------------
    4,100,000    NYC IDA (PSCH)                                      6.375       07/01/2033        4,344,032
------------------------------------------------------------------------------------------------------------
      445,000    NYC IDA (Psycho Therapy)                            9.625       04/01/2010          445,672
------------------------------------------------------------------------------------------------------------
      815,000    NYC IDA (Puerto Rican Family Foundation)            7.000       10/01/2016          817,421
------------------------------------------------------------------------------------------------------------
    2,825,000    NYC IDA (Riverdale Terrace Hsg. Devel. Fund)        6.250       11/01/2014        2,681,010
------------------------------------------------------------------------------------------------------------
    8,595,000    NYC IDA (Riverdale Terrace Hsg. Devel. Fund)        6.750       11/01/2028        7,953,211
------------------------------------------------------------------------------------------------------------
    1,250,000    NYC IDA (Sahadi Fine Foods)                         6.250       11/01/2009        1,209,650
------------------------------------------------------------------------------------------------------------
    4,085,000    NYC IDA (Sahadi Fine Foods)                         6.750       11/01/2019        3,859,304
------------------------------------------------------------------------------------------------------------
    4,380,000    NYC IDA (Showman Fabricators)                       7.500       11/01/2028        4,335,105
------------------------------------------------------------------------------------------------------------
    3,485,000    NYC IDA (South Bronx Overall Economic Devel.)       8.625       12/01/2025        3,559,231
------------------------------------------------------------------------------------------------------------
    4,255,000    NYC IDA (Special Needs Facilities Pooled
                 Program)                                            6.650       07/01/2023        4,214,833
------------------------------------------------------------------------------------------------------------
      735,000    NYC IDA (Special Needs Facilities Pooled
                 Program)                                            7.125       08/01/2006          750,648
------------------------------------------------------------------------------------------------------------
    7,010,000    NYC IDA (Special Needs Facilities Pooled
                 Program)                                            7.875       08/01/2025        7,564,561
------------------------------------------------------------------------------------------------------------
    5,115,000    NYC IDA (St. Bernard's School)                      7.000       12/01/2021        5,381,133
------------------------------------------------------------------------------------------------------------
    1,550,000    NYC IDA (St. Francis College)                       5.000       10/01/2034        1,568,864
------------------------------------------------------------------------------------------------------------
       10,000    NYC IDA (Staten Island University Hospital)         6.375       07/01/2031            9,552
------------------------------------------------------------------------------------------------------------
    4,535,000    NYC IDA (Staten Island University Hospital)         6.375       07/01/2031        4,331,787
------------------------------------------------------------------------------------------------------------
    1,495,000    NYC IDA (Staten Island University Hospital)         6.450       07/01/2032        1,441,060
------------------------------------------------------------------------------------------------------------
      585,000    NYC IDA (Streamline Plastics)                       7.750       12/01/2015          591,131
------------------------------------------------------------------------------------------------------------
    1,275,000    NYC IDA (Streamline Plastics)                       8.125       12/01/2025        1,301,125
------------------------------------------------------------------------------------------------------------
    1,485,000    NYC IDA (Summit School)                             8.250       12/01/2024        1,521,947
------------------------------------------------------------------------------------------------------------
    1,040,000    NYC IDA (Surprise Plastics)                         7.500       11/01/2013        1,043,827
------------------------------------------------------------------------------------------------------------
    2,480,000    NYC IDA (Surprise Plastics)                         8.500       11/01/2023        2,411,874
------------------------------------------------------------------------------------------------------------
    3,885,000    NYC IDA (Terminal One Group Association)            6.000       01/01/2015        3,933,834
------------------------------------------------------------------------------------------------------------
   25,790,000    NYC IDA (Terminal One Group Association)            6.000       01/01/2019       26,476,014
------------------------------------------------------------------------------------------------------------
      210,000    NYC IDA (Terminal One Group Association)            6.100       01/01/2009          212,409
------------------------------------------------------------------------------------------------------------
   10,965,000    NYC IDA (Terminal One Group Association)            6.125       01/01/2024       11,256,669
------------------------------------------------------------------------------------------------------------
      380,000    NYC IDA (The Bank Street College)                   5.250       12/01/2021          407,216
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (The Bank Street College)                   5.250       12/01/2030        1,042,980
------------------------------------------------------------------------------------------------------------
   10,000,000    NYC IDA (The Child School)                          7.550       06/01/2033       10,284,800
------------------------------------------------------------------------------------------------------------
      420,000    NYC IDA (Therapy & Learning Center)                 7.500       10/01/2011          430,038
------------------------------------------------------------------------------------------------------------
    3,735,000    NYC IDA (Therapy & Learning Center)                 8.250       10/01/2031        3,879,507
------------------------------------------------------------------------------------------------------------
      350,000    NYC IDA (THR Products Corp.)                        7.250       11/01/2010          356,335
------------------------------------------------------------------------------------------------------------
    1,085,000    NYC IDA (THR Products Corp.)                        8.250       11/01/2020        1,128,606
------------------------------------------------------------------------------------------------------------
    4,325,000    NYC IDA (Touro College)                             6.350       06/01/2029        4,355,145
------------------------------------------------------------------------------------------------------------
    4,485,000    NYC IDA (Ulano)                                     6.900       11/01/2019        4,251,780
------------------------------------------------------------------------------------------------------------
    1,000,000    NYC IDA (United Nations School)                     6.350       12/01/2015        1,046,360
------------------------------------------------------------------------------------------------------------
    1,155,000    NYC IDA (Urban Health Plan)                         6.250       09/15/2009        1,134,383
------------------------------------------------------------------------------------------------------------
    9,830,000    NYC IDA (Urban Health Plan)                         7.050       09/15/2026        9,362,584
------------------------------------------------------------------------------------------------------------
    3,640,000    NYC IDA (Urban Resource Institute)                  7.375       11/01/2033        3,772,132


                         31 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$      75,000    NYC IDA (Utleys)                                    6.625%      11/01/2006  $        74,216
------------------------------------------------------------------------------------------------------------
    1,335,000    NYC IDA (Utleys)                                    7.375       11/01/2023        1,290,064
------------------------------------------------------------------------------------------------------------
      530,000    NYC IDA (Van Blarcom Closures)                      7.125       11/01/2007          528,458
------------------------------------------------------------------------------------------------------------
    2,965,000    NYC IDA (Van Blarcom Closures)                      8.000       11/01/2017        3,046,419
------------------------------------------------------------------------------------------------------------
      200,000    NYC IDA (Visy Paper)                                7.550       01/01/2005          200,000
------------------------------------------------------------------------------------------------------------
   19,300,000    NYC IDA (Visy Paper)                                7.800       01/01/2016       20,228,330
------------------------------------------------------------------------------------------------------------
   59,000,000    NYC IDA (Visy Paper)                                7.950       01/01/2028       61,837,900
------------------------------------------------------------------------------------------------------------
    1,930,000    NYC IDA (Vocational Instruction)                    7.750       02/01/2033        2,016,406
------------------------------------------------------------------------------------------------------------
      570,000    NYC IDA (W & W Jewelers)                            7.250       02/01/2011          563,451
------------------------------------------------------------------------------------------------------------
    1,555,000    NYC IDA (W & W Jewelers)                            8.250       02/01/2021        1,563,350
------------------------------------------------------------------------------------------------------------
    5,930,000    NYC IDA (Weizmann Institute)                        5.900       11/01/2034        6,020,788
------------------------------------------------------------------------------------------------------------
    2,900,000    NYC IDA (Weizmann Institute)                        5.900       11/01/2034        2,915,341
------------------------------------------------------------------------------------------------------------
    3,900,000    NYC IDA (Westchester Square Medical Center)         8.000       11/01/2010        4,022,967
------------------------------------------------------------------------------------------------------------
    6,160,000    NYC IDA (Westchester Square Medical Center)         8.375       11/01/2015        6,424,387
------------------------------------------------------------------------------------------------------------
    1,660,000    NYC IDA (World Casing Corp.)                        6.700       11/01/2019        1,511,164
------------------------------------------------------------------------------------------------------------
    9,000,000    NYC IDA Special Facilities
                 (JFK International Airport)                         8.000       08/01/2012        7,481,070
------------------------------------------------------------------------------------------------------------
      530,000    NYC Municipal Water Finance Authority               0.000 1     06/15/2019          268,233
------------------------------------------------------------------------------------------------------------
    1,650,000    NYC Municipal Water Finance Authority               5.000       06/15/2034        1,686,482
------------------------------------------------------------------------------------------------------------
    5,265,000    NYC Municipal Water Finance Authority               5.000       06/15/2035        5,388,359
------------------------------------------------------------------------------------------------------------
   50,000,000    NYC Municipal Water Finance Authority               5.000       06/15/2036       51,180,500
------------------------------------------------------------------------------------------------------------
   18,000,000    NYC Municipal Water Finance Authority               5.000       06/15/2038       18,353,880
------------------------------------------------------------------------------------------------------------
      795,000    NYC Municipal Water Finance Authority               5.125       06/15/2031          817,395
------------------------------------------------------------------------------------------------------------
       25,000    NYC Municipal Water Finance Authority               5.125       06/15/2033           25,780
------------------------------------------------------------------------------------------------------------
   20,545,000    NYC Municipal Water Finance Authority               5.125       06/15/2034       21,178,197
------------------------------------------------------------------------------------------------------------
      605,000    NYC Municipal Water Finance Authority               5.250       06/15/2034          633,810
------------------------------------------------------------------------------------------------------------
    2,260,000    NYC Municipal Water Finance Authority               5.375       06/15/2026        2,354,039
------------------------------------------------------------------------------------------------------------
      260,000    NYC Municipal Water Finance Authority               5.500       06/15/2033          281,128
------------------------------------------------------------------------------------------------------------
    2,930,000    NYC Municipal Water Finance Authority RITES 2      12.093 3     06/15/2032        3,139,905
------------------------------------------------------------------------------------------------------------
    2,500,000    NYC Municipal Water Finance Authority RITES 2      12.162 3     06/15/2029        2,701,400
------------------------------------------------------------------------------------------------------------
    7,850,000    NYC Municipal Water Finance Authority RITES 2      12.162 3     06/15/2034        8,508,772
------------------------------------------------------------------------------------------------------------
   14,425,000    NYC Municipal Water Finance Authority RITES 2      12.186 3     06/15/2026       16,138,690
------------------------------------------------------------------------------------------------------------
    2,805,000    NYC Municipal Water Finance Authority RITES 2      12.244 3     06/15/2027        3,183,002
------------------------------------------------------------------------------------------------------------
   11,210,000    NYC Municipal Water Finance Authority RITES 2      12.593 3     06/15/2032       12,448,032
------------------------------------------------------------------------------------------------------------
    5,000,000    NYC Municipal Water Finance Authority RITES 2      12.662 3     06/15/2030        5,689,100
------------------------------------------------------------------------------------------------------------
    3,555,000    NYC Municipal Water Finance Authority RITES 2      12.697 3     06/15/2021        4,331,270
------------------------------------------------------------------------------------------------------------
   18,240,000    NYC Municipal Water Finance Authority RITES 2      12.732 3     06/15/2030       20,753,837
------------------------------------------------------------------------------------------------------------
    4,030,000    NYC Municipal Water Finance Authority RITES 2      12.744 3     06/15/2030        4,585,415
------------------------------------------------------------------------------------------------------------
    5,000,000    NYC Municipal Water Finance Authority RITES 2      12.744 3     06/15/2030        5,689,100
------------------------------------------------------------------------------------------------------------
   17,300,000    NYC Municipal Water Finance Authority RITES 2      14.162 3     06/15/2033       22,923,192
------------------------------------------------------------------------------------------------------------
    3,140,000    NYC Municipal Water Finance Authority RITES 2      14.197 3     06/15/2027        3,966,825
------------------------------------------------------------------------------------------------------------
    2,150,000    NYC TFA RITES 2                                    12.198 3     08/15/2027        2,314,647


                         32 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$      50,000    NYC Trust for Cultural Resources
                 (Museum of American Folk Art)                       6.125%      07/01/2030  $        54,223
------------------------------------------------------------------------------------------------------------
   18,826,356    NYS Certificate of Lease 2                          5.875       01/02/2023       19,536,675
------------------------------------------------------------------------------------------------------------
    1,690,000    NYS DA (4201 Schools Program)                       6.250       07/01/2020        1,937,399
------------------------------------------------------------------------------------------------------------
      350,000    NYS DA (Augustana Lutheran Home)                    5.400       02/01/2031          370,577
------------------------------------------------------------------------------------------------------------
    1,500,000    NYS DA (Augustana Lutheran Home)                    5.500       02/01/2041        1,585,545
------------------------------------------------------------------------------------------------------------
       35,000    NYS DA (Bethel Springvale Home)                     6.000       02/01/2035           36,857
------------------------------------------------------------------------------------------------------------
       40,000    NYS DA (Bishop Henry B. Hucles Nursing Home)        6.000       07/01/2024           42,528
------------------------------------------------------------------------------------------------------------
   14,360,000    NYS DA (Buena Vida Nursing Home)                    5.250       07/01/2028       14,883,135
------------------------------------------------------------------------------------------------------------
    8,435,000    NYS DA (Center for Nursing)                         5.550       08/01/2037        8,883,236
------------------------------------------------------------------------------------------------------------
    2,905,000    NYS DA (Chapel Oaks)                                5.450       07/01/2026        3,034,563
------------------------------------------------------------------------------------------------------------
       25,000    NYS DA (City University)                            5.000       07/01/2023           26,446
------------------------------------------------------------------------------------------------------------
    1,895,000    NYS DA (City University)                            5.250       07/01/2031        1,967,294
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS DA (Concord Nursing Home)                       6.500       07/01/2029        2,730,800
------------------------------------------------------------------------------------------------------------
    1,250,000    NYS DA (D'Youville College)                         5.250       07/01/2025        1,331,513
------------------------------------------------------------------------------------------------------------
      525,000    NYS DA (Dept. of Health)                            5.500       07/01/2021          550,820
------------------------------------------------------------------------------------------------------------
       20,000    NYS DA (Ellis Hospital)                             5.600       08/01/2025           20,716
------------------------------------------------------------------------------------------------------------
   17,630,000    NYS DA (FHA Insured Mtg.), Series B                 0.000 1     08/15/2040        2,114,366
------------------------------------------------------------------------------------------------------------
    6,480,000    NYS DA (Frances Schervier Home &
                  Hospital Obligated Group)                          5.500       07/01/2027        6,936,062
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (Grace Manor Health Care Facility)           6.150       07/01/2018        1,070,780
------------------------------------------------------------------------------------------------------------
    2,000,000    NYS DA (Highland Hospital)                          5.450       08/01/2037        2,148,500
------------------------------------------------------------------------------------------------------------
  140,615,000    NYS DA (Insured Hospital)                           0.000 1     08/15/2036       25,885,815
------------------------------------------------------------------------------------------------------------
   38,650,000    NYS DA (Interfaith Medical Center)                  5.400       02/15/2028       40,094,351
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (Jones Memorial Hospital)                    5.375       08/01/2034        1,039,770
------------------------------------------------------------------------------------------------------------
    3,450,000    NYS DA (L.I. University)                            5.125       09/01/2023        3,606,147
------------------------------------------------------------------------------------------------------------
    1,400,000    NYS DA (L.I. University)                            5.250       09/01/2028        1,460,214
------------------------------------------------------------------------------------------------------------
      235,000    NYS DA (L.I. University)                            5.250       09/01/2028          245,425
------------------------------------------------------------------------------------------------------------
    1,585,000    NYS DA (L.I. University)                            5.500       09/01/2020        1,718,917
------------------------------------------------------------------------------------------------------------
       25,000    NYS DA (Lakeside Memorial Hospital)                 6.000       02/01/2021           26,092
------------------------------------------------------------------------------------------------------------
    9,415,000    NYS DA (Lutheran Social Services of Upstate NY)
                 RITES 2                                             7.999 3     02/01/2038       10,507,140
------------------------------------------------------------------------------------------------------------
    3,115,000    NYS DA (Menorah Home & Hospital) RITES 2           12.609 3     08/01/2038        3,461,388
------------------------------------------------------------------------------------------------------------
    5,825,000    NYS DA (Menorah Home) RITES 2                      12.797 3     08/01/2038        6,415,772
------------------------------------------------------------------------------------------------------------
    3,660,000    NYS DA (Mental Health)                              5.000       02/15/2033        3,722,842
------------------------------------------------------------------------------------------------------------
    4,625,000    NYS DA (Mental Health) RITES 2                     12.244 3     02/15/2023        5,241,050
------------------------------------------------------------------------------------------------------------
    3,465,000    NYS DA (Millard Fillmore Hospital)                  5.375       02/01/2032        3,644,868
------------------------------------------------------------------------------------------------------------
    4,125,000    NYS DA (Miriam Osborn Memorial Home Association)    6.375       07/01/2029        4,529,869
------------------------------------------------------------------------------------------------------------
    2,430,000    NYS DA (Miriam Osborn Memorial Home Association)    6.875       07/01/2019        2,758,609
------------------------------------------------------------------------------------------------------------
    6,860,000    NYS DA (Miriam Osborn Memorial Home Association)    6.875       07/01/2025        7,719,421
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS DA (Montefiore Medical Center)                  5.000       08/01/2033        5,133,300
------------------------------------------------------------------------------------------------------------
    2,375,000    NYS DA (Montefiore Medical Center) RITES 2         14.197 3     08/01/2038        2,847,625


                         33 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   6,800,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.000%      07/01/2014  $     7,036,232
------------------------------------------------------------------------------------------------------------
    3,000,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.500       07/01/2017        3,180,540
------------------------------------------------------------------------------------------------------------
   27,420,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.500       07/01/2025       28,711,208
------------------------------------------------------------------------------------------------------------
   43,630,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.600       07/01/2026       44,426,248
------------------------------------------------------------------------------------------------------------
    8,820,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.625       07/01/2019        9,439,605
------------------------------------------------------------------------------------------------------------
   15,000,000    NYS DA (MSH/NYU Hospital Center/
                 HJDOI Obligated Group)                              6.750       07/01/2020       16,149,600
------------------------------------------------------------------------------------------------------------
    7,280,000    NYS DA (Mt. Sinai/NYU Health)                       6.000       07/01/2026        7,287,498
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS DA (Mt. Sinai/NYU Health)                       6.250       07/01/2022        2,503,550
------------------------------------------------------------------------------------------------------------
    2,850,000    NYS DA (Municipal Health Facilities) RITES 2       12.244 3     01/15/2023        3,258,063
------------------------------------------------------------------------------------------------------------
    4,000,000    NYS DA (North Shore Long Island Jewish Group)       5.500       05/01/2033        4,172,040
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (Norwegian Christian Home & Health
                 Center)                                             5.200       08/01/2036        1,039,730
------------------------------------------------------------------------------------------------------------
    2,000,000    NYS DA (Norwegian Christian Home & Health
                 Center)                                             6.100       08/01/2041        2,226,260
------------------------------------------------------------------------------------------------------------
    4,215,000    NYS DA (Nursing Homes)                              5.200       02/01/2032        4,399,743
------------------------------------------------------------------------------------------------------------
    6,860,000    NYS DA (NY Hospital Medical Center)                 5.600       02/15/2039        7,539,140
------------------------------------------------------------------------------------------------------------
    4,188,875    NYS DA (Our Lady of Mercy Medical Center)
                 Computer Lease  2                                   6.200       08/15/2006        4,140,996
------------------------------------------------------------------------------------------------------------
   10,635,000    NYS DA (Rochester General Hospital) RITES 2         8.649 3     08/01/2033       10,898,961
------------------------------------------------------------------------------------------------------------
      580,000    NYS DA (Sarah Neumann Home)                         5.450       08/01/2027          623,517
------------------------------------------------------------------------------------------------------------
       50,000    NYS DA (School Districts Financing Program),
                 Series B                                            6.000       10/01/2022           57,793
------------------------------------------------------------------------------------------------------------
       25,000    NYS DA (School Districts Financing Program),
                 Series B                                            6.000       10/01/2029           28,757
------------------------------------------------------------------------------------------------------------
   20,400,000    NYS DA (SCSMC/SV/CHSLI Obligated Group)             6.000       07/01/2030       21,692,748
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS DA (GSHMC/MMC/SCHRC Obligated Group)            5.100       07/01/2034        1,005,010
------------------------------------------------------------------------------------------------------------
    9,000,000    NYS DA (St. Agnes Hospital)                         5.400       02/15/2025        9,398,430
------------------------------------------------------------------------------------------------------------
    2,470,000    NYS DA (St. Barnabas Hospital)                      5.450       08/01/2035        2,635,786
------------------------------------------------------------------------------------------------------------
      905,000    NYS DA (St. Catherine of Siena Medical Center)      6.000       07/01/2030          964,603
------------------------------------------------------------------------------------------------------------
    1,750,000    NYS DA (St. Clare's Hospital)                       5.300       02/15/2019        1,833,108
------------------------------------------------------------------------------------------------------------
    2,970,000    NYS DA (St. Clare's Hospital)                       5.400       02/15/2025        3,101,482
------------------------------------------------------------------------------------------------------------
    2,580,000    NYS DA (St. James Mercy Hospital)                   5.400       02/01/2038        2,679,485
------------------------------------------------------------------------------------------------------------
    1,500,000    NYS DA (St. Thomas Aquinas College)                 5.250       07/01/2028        1,544,235
------------------------------------------------------------------------------------------------------------
    3,885,000    NYS DA (St. Vincent DePaul Residence)               5.300       07/01/2018        4,100,773
------------------------------------------------------------------------------------------------------------
      130,000    NYS DA (St. Vincent's Hospital & Medical
                 Center)                                             7.400       08/01/2030          135,772
------------------------------------------------------------------------------------------------------------
       95,000    NYS DA (State University Educational
                 Facilities)                                         6.000       05/15/2017           97,332
------------------------------------------------------------------------------------------------------------
    1,700,000    NYS DA (Vassar Brothers)                            5.375       07/01/2025        1,821,074
------------------------------------------------------------------------------------------------------------
    7,030,000    NYS DA (White Plains Hospital)                      5.375       02/15/2043        7,357,528
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS DA (Willow Towers)                              5.400       02/01/2034        2,658,800
------------------------------------------------------------------------------------------------------------
   26,070,000    NYS DA (Wyckoff Heights Medical Center)             5.300       08/15/2021       27,240,804


                         34 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   5,000,000    NYS DA RITES 2                                     15.201% 3    02/01/2012  $     7,365,700
------------------------------------------------------------------------------------------------------------
    4,095,000    NYS EFC (Clean Water & Drinking Revolving
                 Funds)                                              5.400       07/15/2021        4,455,032
------------------------------------------------------------------------------------------------------------
    1,090,000    NYS EFC (Consolidated Water Company)                7.150       11/01/2014        1,096,834
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS EFC (NYC Municipal Water Finance Authority)     5.000       06/15/2034        2,581,725
------------------------------------------------------------------------------------------------------------
    7,500,000    NYS EFC (NYS Water Services)                        5.950       01/15/2020        8,178,975
------------------------------------------------------------------------------------------------------------
    2,340,000    NYS EFC (NYS Water Services)                        6.000       01/15/2031        2,496,476
------------------------------------------------------------------------------------------------------------
       25,000    NYS EFC (NYS Water Services)                        7.500       03/15/2011           25,110
------------------------------------------------------------------------------------------------------------
   11,895,000    NYS EFC (Occidental Petroleum)                      5.700       09/01/2028       11,920,574
------------------------------------------------------------------------------------------------------------
   15,300,000    NYS EFC (Occidental Petroleum)                      6.100       11/01/2030       15,769,710
------------------------------------------------------------------------------------------------------------
    4,700,000    NYS ERDA (Brooklyn Union Gas) RIBS                  9.323 3     07/08/2026        4,811,625
------------------------------------------------------------------------------------------------------------
    7,000,000    NYS ERDA (Brooklyn Union Gas) RIBS                 10.576 3     04/01/2020        8,677,550
------------------------------------------------------------------------------------------------------------
   16,300,000    NYS ERDA (Brooklyn Union Gas) RIBS                 11.673 3     07/01/2026       18,767,005
------------------------------------------------------------------------------------------------------------
      210,000    NYS ERDA (Central Hudson Gas & Electric)            5.450       08/01/2027          227,816
------------------------------------------------------------------------------------------------------------
       60,000    NYS ERDA (Corning Natural Gas)                      8.250       12/01/2018           62,160
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS ERDA (LILCO)                                    5.150       03/01/2016        5,105,050
------------------------------------------------------------------------------------------------------------
   23,000,000    NYS ERDA (LILCO)                                    5.300       11/01/2023       23,920,690
------------------------------------------------------------------------------------------------------------
      300,000    NYS ERDA (LILCO)                                    5.300       10/01/2024          311,358
------------------------------------------------------------------------------------------------------------
    3,485,000    NYS ERDA (NIMO) RITES 2                            12.844 3     11/01/2025        4,395,770
------------------------------------------------------------------------------------------------------------
    8,250,000    NYS ERDA (NYSEG)                                    6.150       07/01/2026        8,566,140
------------------------------------------------------------------------------------------------------------
    3,625,000    NYS ERDA (RG&E) Residual Certificates 2            16.900 3     09/01/2033        5,045,565
------------------------------------------------------------------------------------------------------------
    3,175,000    NYS HFA (Children's Rescue)                         7.625       05/01/2018        3,176,429
------------------------------------------------------------------------------------------------------------
       20,000    NYS HFA (General Hsg.)                              6.600       11/01/2008           20,679
------------------------------------------------------------------------------------------------------------
    2,640,000    NYS HFA (HELP-Bronx Hsg.)                           8.050       11/01/2005        2,698,793
------------------------------------------------------------------------------------------------------------
      340,000    NYS HFA (HELP-Suffolk Hsg.)                         8.100       11/01/2005          346,212
------------------------------------------------------------------------------------------------------------
      200,000    NYS HFA (Hospital & Nursing Home)                   7.000       11/01/2017          246,888
------------------------------------------------------------------------------------------------------------
        5,000    NYS HFA (Meadow Manor)                              7.750       11/01/2019            5,013
------------------------------------------------------------------------------------------------------------
       35,000    NYS HFA (Multifamily Hsg.)                          0.000 1     11/01/2016           18,043
------------------------------------------------------------------------------------------------------------
      745,000    NYS HFA (Multifamily Hsg.)                          5.250       11/15/2028          759,453
------------------------------------------------------------------------------------------------------------
    1,340,000    NYS HFA (Multifamily Hsg.)                          5.300       08/15/2024        1,383,805
------------------------------------------------------------------------------------------------------------
    1,700,000    NYS HFA (Multifamily Hsg.)                          5.300       11/15/2039        1,728,594
------------------------------------------------------------------------------------------------------------
    1,070,000    NYS HFA (Multifamily Hsg.)                          5.350       08/15/2020        1,130,701
------------------------------------------------------------------------------------------------------------
    2,860,000    NYS HFA (Multifamily Hsg.)                          5.350       08/15/2031        2,924,607
------------------------------------------------------------------------------------------------------------
    2,080,000    NYS HFA (Multifamily Hsg.)                          5.375       02/15/2035        2,133,643
------------------------------------------------------------------------------------------------------------
    3,250,000    NYS HFA (Multifamily Hsg.)                          5.450       08/15/2032        3,362,028
------------------------------------------------------------------------------------------------------------
    2,075,000    NYS HFA (Multifamily Hsg.)                          5.500       08/15/2030        2,102,224
------------------------------------------------------------------------------------------------------------
    1,215,000    NYS HFA (Multifamily Hsg.)                          5.550       08/15/2019        1,280,598
------------------------------------------------------------------------------------------------------------
    1,385,000    NYS HFA (Multifamily Hsg.)                          5.600       08/15/2019        1,461,687
------------------------------------------------------------------------------------------------------------
    1,240,000    NYS HFA (Multifamily Hsg.)                          5.600       02/15/2026        1,280,523
------------------------------------------------------------------------------------------------------------
    1,730,000    NYS HFA (Multifamily Hsg.)                          5.600       08/15/2033        1,804,944
------------------------------------------------------------------------------------------------------------
    1,190,000    NYS HFA (Multifamily Hsg.)                          5.650       08/15/2030        1,236,612
------------------------------------------------------------------------------------------------------------
    3,200,000    NYS HFA (Multifamily Hsg.)                          5.650       08/15/2030        3,311,904


                         35 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,000,000    NYS HFA (Multifamily Hsg.)                          5.650%      08/15/2031  $     1,038,750
------------------------------------------------------------------------------------------------------------
    1,710,000    NYS HFA (Multifamily Hsg.)                          5.650       02/15/2034        1,758,188
------------------------------------------------------------------------------------------------------------
    2,120,000    NYS HFA (Multifamily Hsg.)                          5.700       08/15/2033        2,207,386
------------------------------------------------------------------------------------------------------------
       95,000    NYS HFA (Multifamily Hsg.)                          5.950       08/15/2024           95,204
------------------------------------------------------------------------------------------------------------
    1,285,000    NYS HFA (Multifamily Hsg.)                          6.100       11/15/2036        1,354,274
------------------------------------------------------------------------------------------------------------
    4,700,000    NYS HFA (Multifamily Hsg.)                          6.125       08/15/2038        4,884,992
------------------------------------------------------------------------------------------------------------
       40,000    NYS HFA (Multifamily Hsg.)                          6.200       08/15/2012           40,064
------------------------------------------------------------------------------------------------------------
       25,000    NYS HFA (Multifamily Hsg.)                          6.200       08/15/2016           26,103
------------------------------------------------------------------------------------------------------------
      745,000    NYS HFA (Multifamily Hsg.)                          6.250       02/15/2031          772,870
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS HFA (Multifamily Hsg.)                          6.300       08/15/2026        5,138,800
------------------------------------------------------------------------------------------------------------
    1,255,000    NYS HFA (Multifamily Hsg.)                          6.400       11/15/2027        1,308,664
------------------------------------------------------------------------------------------------------------
    2,095,000    NYS HFA (Multifamily Hsg.)                          6.500       08/15/2024        2,097,828
------------------------------------------------------------------------------------------------------------
    3,240,000    NYS HFA (Multifamily Hsg.)                          6.700       08/15/2025        3,246,415
------------------------------------------------------------------------------------------------------------
    5,650,000    NYS HFA (Multifamily Hsg.)                          6.750       11/15/2036        5,858,994
------------------------------------------------------------------------------------------------------------
       20,000    NYS HFA (Multifamily Hsg.)                          6.950       08/15/2012           20,490
------------------------------------------------------------------------------------------------------------
    5,400,000    NYS HFA (Multifamily Hsg.)                          7.050       08/15/2024        5,408,208
------------------------------------------------------------------------------------------------------------
      320,000    NYS HFA (Multifamily Hsg.)                          7.550       11/01/2029          326,176
------------------------------------------------------------------------------------------------------------
    2,805,000    NYS HFA (NH&HC) RITES 2                            12.839 3     11/01/2016        3,201,122
------------------------------------------------------------------------------------------------------------
        5,000    NYS HFA (Nonprofit Hsg.)                            6.400       11/01/2010            5,097
------------------------------------------------------------------------------------------------------------
      760,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2009          773,802
------------------------------------------------------------------------------------------------------------
      825,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2010          839,982
------------------------------------------------------------------------------------------------------------
      895,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2011          911,253
------------------------------------------------------------------------------------------------------------
      965,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2012          982,524
------------------------------------------------------------------------------------------------------------
    1,040,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2013        1,058,886
------------------------------------------------------------------------------------------------------------
    1,225,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2014        1,247,246
------------------------------------------------------------------------------------------------------------
    1,325,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2015        1,349,062
------------------------------------------------------------------------------------------------------------
    1,440,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2016        1,466,150
------------------------------------------------------------------------------------------------------------
    1,565,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2017        1,593,420
------------------------------------------------------------------------------------------------------------
    1,690,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2018        1,720,690
------------------------------------------------------------------------------------------------------------
    1,020,000    NYS HFA (Nonprofit Hsg.)                            8.400       11/01/2019        1,038,523
------------------------------------------------------------------------------------------------------------
    5,000,000    NYS HFA (Phillips Village)                          7.750       08/15/2017        5,119,450
------------------------------------------------------------------------------------------------------------
       70,000    NYS HFA (Service Contract)                          5.375       03/15/2023           70,843
------------------------------------------------------------------------------------------------------------
    5,600,000    NYS HFA (Service Contract)                          5.500       09/15/2022        6,035,288
------------------------------------------------------------------------------------------------------------
    5,525,000    NYS HFA (Service Contract)                          5.500       03/15/2025        5,943,795
------------------------------------------------------------------------------------------------------------
      255,000    NYS HFA (Service Contract)                          6.500       03/15/2025          264,223
------------------------------------------------------------------------------------------------------------
      475,000    NYS HFA (Shorehill Hsg.)                            7.500       05/01/2008          475,565
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS HFA (Watergate II)                              4.750       02/15/2034          974,540
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS HFA (Watergate II)                              4.900       02/15/2045          940,420
------------------------------------------------------------------------------------------------------------
      400,000    NYS LGSC (SCSB) 2                                   7.250       12/15/2011          407,496
------------------------------------------------------------------------------------------------------------
      810,000    NYS LGSC (SCSB) 2                                   7.375       12/15/2016          841,898
------------------------------------------------------------------------------------------------------------
      980,000    NYS LGSC (SCSB) 2                                   7.750       12/15/2021        1,021,954


                         36 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   1,045,000    NYS Medcare (Central Suffolk Hospital)              6.125%      11/01/2016  $       832,687
------------------------------------------------------------------------------------------------------------
    1,000,000    NYS Medcare (Hospital & Nursing Home)               6.375       08/15/2033        1,004,430
------------------------------------------------------------------------------------------------------------
    2,050,000    NYS Medcare (Hospital & Nursing Home)               7.400       11/01/2016        2,110,475
------------------------------------------------------------------------------------------------------------
    1,910,000    NYS Medcare (Hospital & Nursing Home)               9.375       11/01/2016        2,005,214
------------------------------------------------------------------------------------------------------------
      440,000    NYS Medcare (Hospital & Nursing Home)              10.000       11/01/2006          463,892
------------------------------------------------------------------------------------------------------------
    1,670,000    NYS Medcare (M.G. Nursing Home)                     6.375       02/15/2035        1,739,606
------------------------------------------------------------------------------------------------------------
      330,000    NYS Medcare (Montefiore Medical Center)             5.750       02/15/2025          337,811
------------------------------------------------------------------------------------------------------------
       25,000    NYS Medcare (Secured Hospital)                      6.250       02/15/2024           25,381
------------------------------------------------------------------------------------------------------------
   44,470,000    NYS Medcare (St. Luke's Hospital)                   5.700       02/15/2029       45,025,875
------------------------------------------------------------------------------------------------------------
   12,500,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.592 3     02/15/2029       12,812,500
------------------------------------------------------------------------------------------------------------
    8,400,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.649 3     02/15/2029        8,610,000
------------------------------------------------------------------------------------------------------------
    5,750,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.649 3     02/15/2029        5,893,750
------------------------------------------------------------------------------------------------------------
   10,000,000    NYS Medcare (St. Luke's Hospital) RITES 2           8.684 3     02/15/2029       10,250,000
------------------------------------------------------------------------------------------------------------
   40,000,000    NYS Thruway Authority Permanently Linked
                 Convertible INFLOS & VDRNS                          5.000       01/01/2024       40,264,000
------------------------------------------------------------------------------------------------------------
    2,500,000    NYS Thruway Authority RITES 2                      12.197 3     01/01/2024        2,566,000
------------------------------------------------------------------------------------------------------------
    7,140,000    NYS Thruway Authority RITES 2                      12.232 3     01/01/2025        7,920,116
------------------------------------------------------------------------------------------------------------
        5,000    NYS UDC (Correctional Facilities)                   0.000 1     01/01/2013            3,713
------------------------------------------------------------------------------------------------------------
    9,000,000    NYS UDC (State Personal Income Tax)                 5.125       03/15/2029       10,158,750
------------------------------------------------------------------------------------------------------------
    5,480,000    Oneida County IDA (Bonide Products)                 6.250       11/01/2018        5,375,606
------------------------------------------------------------------------------------------------------------
      625,000    Oneida County IDA (Mobile Climate Control)          8.000       11/01/2008          635,706
------------------------------------------------------------------------------------------------------------
    2,825,000    Oneida County IDA (Mobile Climate Control)          8.750       11/01/2018        2,887,207
------------------------------------------------------------------------------------------------------------
      450,000    Oneida County IDA
                 (Mohawk Valley Handicapped Services)                5.300       03/15/2019          468,135
------------------------------------------------------------------------------------------------------------
      740,000    Oneida County IDA
                 (Mohawk Valley Handicapped Services)                5.350       03/15/2029          750,464
------------------------------------------------------------------------------------------------------------
    1,190,000    Oneida County IDA (Presbyterian Home)               5.250       03/01/2019        1,234,006
------------------------------------------------------------------------------------------------------------
    1,015,000    Oneida County IDA (Presbyterian Home)               6.100       06/01/2020        1,110,725
------------------------------------------------------------------------------------------------------------
    4,000,000    Onondaga County IDA (Air Cargo)                     6.125       01/01/2032        4,064,400
------------------------------------------------------------------------------------------------------------
    2,000,000    Onondaga County IDA (Air Cargo)                     7.250       01/01/2032        2,046,180
------------------------------------------------------------------------------------------------------------
      490,000    Onondaga County IDA (Coltec Industries)             7.250       06/01/2008          498,428
------------------------------------------------------------------------------------------------------------
      770,000    Onondaga County IDA (Coltec Industries)             9.875       10/01/2010          808,115
------------------------------------------------------------------------------------------------------------
    1,460,000    Onondaga County IDA (Community General
                 Hospital)                                           5.500       11/01/2018        1,317,708
------------------------------------------------------------------------------------------------------------
    7,685,000    Onondaga County IDA (Community General
                 Hospital)                                           6.625       01/01/2018        7,691,302
------------------------------------------------------------------------------------------------------------
    4,700,000    Onondaga County IDA (Le Moyne College)              5.625       12/01/2021        5,061,618
------------------------------------------------------------------------------------------------------------
   11,500,000    Onondaga County IDA (Solvay Paperboard)             6.800       11/01/2014       12,003,355
------------------------------------------------------------------------------------------------------------
   67,200,000    Onondaga County IDA (Solvay Paperboard)             7.000       11/01/2030       70,412,160
------------------------------------------------------------------------------------------------------------
      750,000    Onondaga County IDA (Syracuse Home)                 5.200       12/01/2018          783,270
------------------------------------------------------------------------------------------------------------
      500,000    Onondaga County IDA Sewage Waste Facilities
                 (Anheuser-Busch Companies)                          6.250       12/01/2034          548,315
------------------------------------------------------------------------------------------------------------
   66,449,598    Onondaga County Res Rec                             0.000 7     05/01/2022       28,526,812
------------------------------------------------------------------------------------------------------------
   41,580,000    Onondaga County Res Rec                             5.000       05/01/2015       36,751,730


                         37 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     512,000    Ontario County IDA (Ontario Design)                 6.500%      11/01/2005  $       512,732
------------------------------------------------------------------------------------------------------------
      430,000    Orange County IDA (Adult Homes at Erie Station)     7.000       08/01/2021          437,220
------------------------------------------------------------------------------------------------------------
    2,500,000    Orange County IDA (Arden Hill Life Care Center)     7.000       08/01/2021        2,541,975
------------------------------------------------------------------------------------------------------------
    2,300,000    Orange County IDA (Arden Hill Life Care Center)     7.000       08/01/2031        2,308,326
------------------------------------------------------------------------------------------------------------
    2,090,000    Orange County IDA (Arden Hill Life Care Center)     7.000       08/01/2031        2,097,566
------------------------------------------------------------------------------------------------------------
    2,705,000    Orange County IDA (Glen Arden)                      5.625       01/01/2018        2,438,314
------------------------------------------------------------------------------------------------------------
    5,590,000    Orange County IDA (Glen Arden)                      5.700       01/01/2028        4,654,290
------------------------------------------------------------------------------------------------------------
    3,000,000    Orange County IDA (Kingston Manufacturing) 2        8.000       11/01/2017        1,457,910
------------------------------------------------------------------------------------------------------------
      385,000    Orange County IDA (Mental Retardation Project)      7.800       07/01/2011          386,063
------------------------------------------------------------------------------------------------------------
    1,715,000    Orange County IDA
                 (St. Luke's Cornwall Hospital Obligated Group)      5.375       12/01/2021        1,826,869
------------------------------------------------------------------------------------------------------------
    6,330,000    Orange County IDA
                 (St. Luke's Cornwall Hospital Obligated Group)      5.375       12/01/2026        6,669,351
------------------------------------------------------------------------------------------------------------
    2,235,000    Orange County IDA
                 (St. Luke's Cornwall Hospital Obligated Group)      5.375       12/01/2026        2,354,818
------------------------------------------------------------------------------------------------------------
    7,745,000    Orange County IDA (Tuxedo Place) 2                  7.000       08/01/2032        5,750,430
------------------------------------------------------------------------------------------------------------
    2,500,000    Orange County IDA (Tuxedo Place) 2                  7.000       08/01/2033        1,855,675
------------------------------------------------------------------------------------------------------------
    2,755,000    Oswego County IDA (Bishop's Common)                 5.375       02/01/2049        2,910,134
------------------------------------------------------------------------------------------------------------
    3,260,000    Oswego County IDA (Seneca Hill Manor)               5.650       08/01/2037        3,535,535
------------------------------------------------------------------------------------------------------------
    6,680,000    Otsego County IDA (Hartwick College)                5.900       07/01/2022        6,098,840
------------------------------------------------------------------------------------------------------------
    2,970,000    Otsego County IDA (Mary Imogene Bassett
                 Hospital)                                           5.350       11/01/2020        3,124,292
------------------------------------------------------------------------------------------------------------
   11,040,000    Peekskill IDA (Drum Hill)                           6.375       10/01/2028        9,905,750
------------------------------------------------------------------------------------------------------------
      617,716    Peekskill IDA (Karta)                               9.000       07/01/2010          624,258
------------------------------------------------------------------------------------------------------------
    4,070,000    Port Authority NY/NJ (Continental Airlines)         9.000       12/01/2006        4,125,759
------------------------------------------------------------------------------------------------------------
    1,770,000    Port Authority NY/NJ (Continental Airlines)         9.000       12/01/2010        1,794,249
------------------------------------------------------------------------------------------------------------
   53,250,000    Port Authority NY/NJ (Continental Airlines)         9.125       12/01/2015       53,979,525
------------------------------------------------------------------------------------------------------------
      795,000    Port Authority NY/NJ (Delta Air Lines)              6.950       06/01/2008          793,720
------------------------------------------------------------------------------------------------------------
      285,000    Port Authority NY/NJ (KIAC)                         6.750       10/01/2011          297,819
------------------------------------------------------------------------------------------------------------
   19,395,000    Port Authority NY/NJ (KIAC)                         6.750       10/01/2019       20,208,620
------------------------------------------------------------------------------------------------------------
   20,000,000    Port Authority NY/NJ RITES 2                       12.097 3     09/15/2013       21,744,800
------------------------------------------------------------------------------------------------------------
      170,000    Port Authority NY/NJ, 97th Series                   6.400       07/15/2015          171,962
------------------------------------------------------------------------------------------------------------
      190,000    Port Authority NY/NJ, 114th Series                  5.000       08/01/2024          193,777
------------------------------------------------------------------------------------------------------------
    3,000,000    Port Authority NY/NJ, 127th Series                  5.250       12/15/2032        3,109,890
------------------------------------------------------------------------------------------------------------
    5,000,000    Port Authority NY/NJ, 136th Series                  5.125       05/01/2034        5,132,500
------------------------------------------------------------------------------------------------------------
   19,175,000    Port Authority NY/NJ, 136th Series                  5.375       11/01/2028       20,263,757
------------------------------------------------------------------------------------------------------------
   22,855,000    Port Authority NY/NJ, 136th Series                  5.500       11/01/2029       24,486,618
------------------------------------------------------------------------------------------------------------
    2,755,000    Poughkeepsie IDA
                 (Eastman & Bixby Redevelopment Corp.)               6.000       08/01/2032        2,932,174
------------------------------------------------------------------------------------------------------------
    1,990,000    Putnam County IDA (Brewster Plastics)               8.500       12/01/2016        2,052,665
------------------------------------------------------------------------------------------------------------
    1,500,000    Rensselaer County IDA (Franciscan Heights)          5.375       12/01/2036        1,546,920
------------------------------------------------------------------------------------------------------------
    6,385,000    Rensselaer County Tobacco Asset Securitization
                 Corp.                                               5.625       06/01/2035        5,872,668
------------------------------------------------------------------------------------------------------------
    7,300,000    Rensselaer County Tobacco Asset Securitization
                 Corp.                                               5.750       06/01/2043        6,696,582


                         38 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$       5,000    Rensselaer Hsg. Authority (Renwyck)                 7.650%      01/01/2011  $         5,061
------------------------------------------------------------------------------------------------------------
   20,000,000    Rensselaer Municipal Leasing Corp.
                 (Rensselaer County Nursing Home)                    6.900       06/01/2024       20,358,400
------------------------------------------------------------------------------------------------------------
    1,785,000    Riverhead IDA (Michael Reilly Design) 4,5           8.625       02/01/2012        1,430,303
------------------------------------------------------------------------------------------------------------
      510,000    Riverhead IDA (Michael Reilly Design) 4,5           8.625       02/01/2012          408,510
------------------------------------------------------------------------------------------------------------
    4,535,000    Riverhead IDA (Michael Reilly Design) 4,5           8.875       02/01/2032        3,605,642
------------------------------------------------------------------------------------------------------------
       40,000    Rochester Hsg. Authority (Crossroads
                 Apartments)                                         7.300       07/01/2005           40,263
------------------------------------------------------------------------------------------------------------
   15,860,000    Rochester Hsg. Authority (Crossroads
                 Apartments)                                         7.700       01/01/2017       16,469,500
------------------------------------------------------------------------------------------------------------
    6,790,000    Rochester Museum & Science Center                   6.125       12/01/2015        6,824,425
------------------------------------------------------------------------------------------------------------
    1,655,000    Rockland County IDA (Dominican College)             5.900       05/01/2010        1,850,787
------------------------------------------------------------------------------------------------------------
    5,000,000    Rockland County IDA (Dominican College)             6.250       05/01/2028        5,646,200
------------------------------------------------------------------------------------------------------------
    9,225,000    Rockland County Tobacco Asset Securitization
                 Corp.                                               5.625       08/15/2035        8,354,990
------------------------------------------------------------------------------------------------------------
   10,100,000    Rockland County Tobacco Asset Securitization
                 Corp.                                               5.750       08/15/2043        9,196,656
------------------------------------------------------------------------------------------------------------
   25,850,000    Sales Tax Asset Receivables Corp., Series A         5.000       10/15/2032       26,727,866
------------------------------------------------------------------------------------------------------------
    1,160,000    Saratoga County IDA (ARC)                           8.400       03/01/2013        1,163,619
------------------------------------------------------------------------------------------------------------
    3,000,000    Saratoga County IDA (Saratoga Hospital)             5.125       12/01/2033        3,095,190
------------------------------------------------------------------------------------------------------------
   11,311,843    Schenectady GO                                      6.500       05/27/2005       11,300,418
------------------------------------------------------------------------------------------------------------
    1,635,000    Schenectady IDA (Schaffer Heights Hsg.)             6.000       11/01/2030        1,764,901
------------------------------------------------------------------------------------------------------------
    3,335,000    Schenectady Metroplex Devel. Authority,
                 Series A                                            5.375       12/15/2021        3,543,137
------------------------------------------------------------------------------------------------------------
      292,000    Schroon Lake Fire District 2                        7.250       03/01/2009          292,821
------------------------------------------------------------------------------------------------------------
      175,000    Scotia Hsg. Authority (Holyrood House)              7.000       06/01/2009          179,575
------------------------------------------------------------------------------------------------------------
    2,475,000    SONYMA, Series 29                                   5.450       04/01/2031        2,538,682
------------------------------------------------------------------------------------------------------------
       15,000    SONYMA, Series 30-C2                                5.800       10/01/2025           15,162
------------------------------------------------------------------------------------------------------------
    6,895,000    SONYMA, Series 65                                   5.850       10/01/2028        7,164,250
------------------------------------------------------------------------------------------------------------
       20,000    SONYMA, Series 66                                   5.700       10/01/2027           20,806
------------------------------------------------------------------------------------------------------------
   18,905,000    SONYMA, Series 67                                   5.800       10/01/2028       19,828,887
------------------------------------------------------------------------------------------------------------
    3,395,000    SONYMA, Series 69                                   5.400       10/01/2019        3,527,880
------------------------------------------------------------------------------------------------------------
    5,330,000    SONYMA, Series 69                                   5.500       10/01/2028        5,468,900
------------------------------------------------------------------------------------------------------------
    3,940,000    SONYMA, Series 69 RITES 2                           8.364 3     10/01/2028        4,145,353
------------------------------------------------------------------------------------------------------------
   13,100,000    SONYMA, Series 71                                   5.400       04/01/2029       13,410,601
------------------------------------------------------------------------------------------------------------
   10,150,000    SONYMA, Series 71 RITES 2                           8.164 3     04/01/2029       10,631,313
------------------------------------------------------------------------------------------------------------
    5,500,000    SONYMA, Series 73 RITES 2                          13.340 3     10/01/2028        5,960,900
------------------------------------------------------------------------------------------------------------
    1,675,000    SONYMA, Series 73-A                                 5.300       10/01/2028        1,710,091
------------------------------------------------------------------------------------------------------------
   10,175,000    SONYMA, Series 79                                   5.300       04/01/2029       10,393,559
------------------------------------------------------------------------------------------------------------
      125,000    SONYMA, Series 82                                   5.650       04/01/2030          131,153
------------------------------------------------------------------------------------------------------------
    5,945,000    SONYMA, Series 97                                   5.500       04/01/2031        6,123,291
------------------------------------------------------------------------------------------------------------
    2,400,000    SONYMA, Series 106                                  5.100       04/01/2023        2,470,272
------------------------------------------------------------------------------------------------------------
      300,000    St. Lawrence County IDA (Clarkson University)       5.125       07/01/2021          309,471
------------------------------------------------------------------------------------------------------------
    1,315,000    St. Lawrence County IDA (Clarkson University)       5.250       07/01/2031        1,345,903
------------------------------------------------------------------------------------------------------------
    2,370,000    St. Lawrence County IDA (Clarkson University)       5.500       07/01/2029        2,470,725
------------------------------------------------------------------------------------------------------------
    2,805,000    St. Lawrence County IDA (Hepburn Medical
                 Center)                                             5.375       12/01/2019        2,979,864


                         39 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   3,595,000    St. Lawrence County IDA
                 (Hepburn Medical Center)                            5.500%      12/01/2024  $     3,814,187
------------------------------------------------------------------------------------------------------------
    1,360,000    Suffolk County IDA (ACLD)                           6.000       12/01/2019        1,374,334
------------------------------------------------------------------------------------------------------------
      590,000    Suffolk County IDA (ALIA-ACDS)                      7.125       06/01/2017          634,197
------------------------------------------------------------------------------------------------------------
      375,000    Suffolk County IDA (ALIA-ACLD)                      6.375       06/01/2014          377,865
------------------------------------------------------------------------------------------------------------
    1,310,000    Suffolk County IDA (ALIA-ACLD)                      6.500       03/01/2018        1,346,929
------------------------------------------------------------------------------------------------------------
      745,000    Suffolk County IDA (ALIA-ACLD)                      7.500       09/01/2015          812,095
------------------------------------------------------------------------------------------------------------
      305,000    Suffolk County IDA (ALIA-ADD)                       6.950       12/01/2014          327,823
------------------------------------------------------------------------------------------------------------
      535,000    Suffolk County IDA (ALIA-ADD)                       7.125       06/01/2017          575,077
------------------------------------------------------------------------------------------------------------
      475,000    Suffolk County IDA (ALIA-ADD)                       7.500       09/01/2015          517,779
------------------------------------------------------------------------------------------------------------
    1,490,000    Suffolk County IDA (ALIA-DDI) 2                     6.375       06/01/2014        1,548,155
------------------------------------------------------------------------------------------------------------
      100,000    Suffolk County IDA (ALIA-DDI) 2                     7.500       09/01/2015          109,006
------------------------------------------------------------------------------------------------------------
      825,000    Suffolk County IDA (ALIA-FREE)                      6.375       06/01/2014          857,200
------------------------------------------------------------------------------------------------------------
    1,890,000    Suffolk County IDA (ALIA-FREE)                      6.950       12/01/2014        2,031,429
------------------------------------------------------------------------------------------------------------
    4,585,000    Suffolk County IDA (ALIA-FREE)                      7.125       06/01/2017        4,928,462
------------------------------------------------------------------------------------------------------------
      665,000    Suffolk County IDA (ALIA-IGHL)                      6.375       06/01/2014          670,081
------------------------------------------------------------------------------------------------------------
      645,000    Suffolk County IDA (ALIA-IGHL)                      6.950       12/01/2014          693,265
------------------------------------------------------------------------------------------------------------
    1,235,000    Suffolk County IDA (ALIA-IGHL)                      7.125       06/01/2017        1,327,514
------------------------------------------------------------------------------------------------------------
    1,945,000    Suffolk County IDA (ALIA-IGHL)                      7.250       12/01/2033        2,002,591
------------------------------------------------------------------------------------------------------------
      285,000    Suffolk County IDA (ALIA-IGHL)                      7.500       09/01/2015          310,667
------------------------------------------------------------------------------------------------------------
      390,000    Suffolk County IDA
                 (ALIA- L.I. Head Injury Association)                6.375       06/01/2014          394,138
------------------------------------------------------------------------------------------------------------
      770,000    Suffolk County IDA
                 (ALIA- L.I. Head Injury Association)                6.950       12/01/2014          827,619
------------------------------------------------------------------------------------------------------------
      300,000    Suffolk County IDA
                 (ALIA- L.I. Head Injury Association)                7.500       09/01/2015          327,018
------------------------------------------------------------------------------------------------------------
      650,000    Suffolk County IDA (ALIA-MCH)                       6.375       06/01/2014          654,966
------------------------------------------------------------------------------------------------------------
    1,830,000    Suffolk County IDA (ALIA-MCH)                       6.950       12/01/2014        1,966,939
------------------------------------------------------------------------------------------------------------
    1,510,000    Suffolk County IDA (ALIA-MCH)                       7.125       06/01/2017        1,623,114
------------------------------------------------------------------------------------------------------------
      745,000    Suffolk County IDA (ALIA-NYS ARC)                   7.500       09/01/2015          812,095
------------------------------------------------------------------------------------------------------------
      470,000    Suffolk County IDA (ALIA-Pederson-Krag Center)      8.375       06/01/2016          514,960
------------------------------------------------------------------------------------------------------------
      600,000    Suffolk County IDA (ALIA-SMCFS)                     7.500       09/01/2015          654,036
------------------------------------------------------------------------------------------------------------
      710,000    Suffolk County IDA (ALIA-Suffolk Hostels)           7.500       09/01/2015          773,943
------------------------------------------------------------------------------------------------------------
      275,000    Suffolk County IDA (ALIA-UCPAGS)                    6.375       06/01/2014          277,101
------------------------------------------------------------------------------------------------------------
    1,120,000    Suffolk County IDA (ALIA-UCPAGS)                    6.950       12/01/2014        1,203,810
------------------------------------------------------------------------------------------------------------
      890,000    Suffolk County IDA (ALIA-UCPAGS)                    7.000       06/01/2016          955,424
------------------------------------------------------------------------------------------------------------
      500,000    Suffolk County IDA (ALIA-UCPAGS)                    7.500       09/01/2015          545,030
------------------------------------------------------------------------------------------------------------
      400,000    Suffolk County IDA (ALIA-WORCA)                     6.950       12/01/2014          429,932
------------------------------------------------------------------------------------------------------------
      950,000    Suffolk County IDA (ALIA-WORCA)                     7.125       06/01/2017        1,021,165
------------------------------------------------------------------------------------------------------------
      590,000    Suffolk County IDA (ALIA-WORCA)                     7.500       09/01/2015          643,135
------------------------------------------------------------------------------------------------------------
    7,293,119    Suffolk County IDA (Camelot Village) 2,4,5          7.900       11/01/2031            7,293
------------------------------------------------------------------------------------------------------------
      275,000    Suffolk County IDA (CCSSVD)                         7.000       04/01/2010          288,635
------------------------------------------------------------------------------------------------------------
    2,595,000    Suffolk County IDA (CCSSVD)                         8.000       04/01/2030        2,756,669
------------------------------------------------------------------------------------------------------------
      255,000    Suffolk County IDA (DDI)                            6.000       12/01/2019          257,688
------------------------------------------------------------------------------------------------------------
      820,000    Suffolk County IDA (DDI) 2                          6.250       03/01/2009          816,105


                         40 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   5,025,000    Suffolk County IDA (DDI) 2                          7.250%      03/01/2024  $     4,951,987
------------------------------------------------------------------------------------------------------------
    9,180,000    Suffolk County IDA (DDI)                            8.750       03/01/2023        9,394,812
------------------------------------------------------------------------------------------------------------
    2,605,000    Suffolk County IDA (Dowling College)                6.625       06/01/2024        2,608,465
------------------------------------------------------------------------------------------------------------
    3,240,000    Suffolk County IDA (Dowling College)                6.700       12/01/2020        3,265,175
------------------------------------------------------------------------------------------------------------
    1,925,000    Suffolk County IDA (Family Residence)               6.000       12/01/2019        1,945,290
------------------------------------------------------------------------------------------------------------
    1,345,000    Suffolk County IDA (Family Services League)         5.000       11/01/2027        1,359,176
------------------------------------------------------------------------------------------------------------
      830,000    Suffolk County IDA (Family Services League)         5.000       11/01/2034          829,817
------------------------------------------------------------------------------------------------------------
      225,000    Suffolk County IDA (Federation of
                 Organizations)                                      7.625       04/01/2010          232,385
------------------------------------------------------------------------------------------------------------
    2,195,000    Suffolk County IDA (Federation of
                 Organizations)                                      8.125       04/01/2030        2,293,292
------------------------------------------------------------------------------------------------------------
    2,500,000    Suffolk County IDA (Gurwin Jewish-Phase II)         6.700       05/01/2039        2,575,350
------------------------------------------------------------------------------------------------------------
    3,860,000    Suffolk County IDA (Huntington First Aid Squad)     6.650       11/01/2017        4,005,175
------------------------------------------------------------------------------------------------------------
      295,000    Suffolk County IDA (Independent Group Home
                 Living)                                             6.000       12/01/2019          298,109
------------------------------------------------------------------------------------------------------------
    6,500,000    Suffolk County IDA (Jefferson's Ferry)              7.200       11/01/2019        6,905,925
------------------------------------------------------------------------------------------------------------
   10,000,000    Suffolk County IDA (Jefferson's Ferry)              7.250       11/01/2028       10,519,700
------------------------------------------------------------------------------------------------------------
   13,660,000    Suffolk County IDA (Keyspan-Port Jefferson
                 Center)                                             5.250       06/01/2027       13,986,884
------------------------------------------------------------------------------------------------------------
    4,065,000    Suffolk County IDA ( L.I. Network Community
                 Services)                                           7.550       02/01/2034        4,145,894
------------------------------------------------------------------------------------------------------------
    3,360,000    Suffolk County IDA (New Interdisciplinary
                 School)                                             6.750       12/01/2019        3,393,970
------------------------------------------------------------------------------------------------------------
    3,500,000    Suffolk County IDA
                 (Nissequogue Cogeneration Partners)                 5.300       01/01/2013        3,435,250
------------------------------------------------------------------------------------------------------------
    7,585,000    Suffolk County IDA
                 (Nissequogue Cogeneration Partners)                 5.500       01/01/2023        7,320,511
------------------------------------------------------------------------------------------------------------
      695,000    Suffolk County IDA (OBPWC)                          7.500       11/01/2022          698,711
------------------------------------------------------------------------------------------------------------
    2,250,000    Suffolk County IDA
                 (Peconic Landing Retirement Home)                   7.000       10/01/2030        2,265,323
------------------------------------------------------------------------------------------------------------
    1,000,000    Suffolk County IDA
                 (Peconic Landing Retirement Home)                   8.000       10/01/2020        1,070,270
------------------------------------------------------------------------------------------------------------
    1,600,000    Suffolk County IDA
                 (Peconic Landing Retirement Home)                   8.000       10/01/2030        1,700,080
------------------------------------------------------------------------------------------------------------
      260,000    Suffolk County IDA (Pederson-Krag Center)           7.625       04/01/2010          277,516
------------------------------------------------------------------------------------------------------------
    2,545,000    Suffolk County IDA (Pederson-Krag Center)           8.125       04/01/2030        2,727,018
------------------------------------------------------------------------------------------------------------
      160,000    Suffolk County IDA (Rainbow Chimes)                 7.000       05/01/2007          158,238
------------------------------------------------------------------------------------------------------------
    2,210,000    Suffolk County IDA (Rainbow Chimes)                 8.000       11/01/2024        2,034,062
------------------------------------------------------------------------------------------------------------
    1,670,000    Suffolk County IDA (Rimland Facilities) 2           3.750 8     12/01/2009        1,649,526
------------------------------------------------------------------------------------------------------------
    2,345,000    Suffolk County IDA (United Cerebral Palsy
                 Association)                                        6.000       12/01/2019        2,369,716
------------------------------------------------------------------------------------------------------------
    5,635,000    Suffolk County IDA (United Cerebral Palsy
                 Association)                                        7.875       09/01/2041        5,793,963
------------------------------------------------------------------------------------------------------------
    1,620,000    Suffolk County IDA (Windmill Village)               5.700       12/01/2026        1,713,928
------------------------------------------------------------------------------------------------------------
    1,305,000    Suffolk County IDA (Windmill Village)               5.750       12/01/2031        1,380,077
------------------------------------------------------------------------------------------------------------
      910,000    Suffolk County IDA (Wireless Boulevard Realty)      7.875       12/01/2012          963,463
------------------------------------------------------------------------------------------------------------
    4,005,000    Suffolk County IDA (Wireless Boulevard Realty)      8.625       12/01/2026        4,264,003
------------------------------------------------------------------------------------------------------------
       50,000    Suffolk County Water Authority                      5.125       06/01/2026           52,384
------------------------------------------------------------------------------------------------------------
    2,785,000    Sullivan County IDA (Center Discovery Civic
                 Facility)                                           7.250       02/01/2012        2,804,913
------------------------------------------------------------------------------------------------------------
    9,965,000    Sullivan County IDA (Center Discovery Civic
                 Facility)                                           7.750       02/01/2027       10,049,005


                         41 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$   8,725,000    Sullivan County IDA (SCCC Dorm Corp. Civic
                 Facility)                                           7.250 %     06/01/2027  $     8,850,117
------------------------------------------------------------------------------------------------------------
      372,500    Syracuse Hsg. Authority
                 (Loretto Sedgwick Heights Corp.)                    7.375       11/01/2008          345,345
------------------------------------------------------------------------------------------------------------
    6,995,000    Syracuse Hsg. Authority
                 (Loretto Sedgwick Heights Corp.)                    8.500       11/01/2031        6,440,716
------------------------------------------------------------------------------------------------------------
    6,590,000    Syracuse Hsg. Authority (LRRHCF)                    5.800       08/01/2037        7,237,665
------------------------------------------------------------------------------------------------------------
      425,000    Syracuse Hsg. Authority (LRRHCF)                    7.500       08/01/2010          429,590
------------------------------------------------------------------------------------------------------------
    2,435,000    Syracuse Hsg. Authority (Pavilion on James)         7.500       11/01/2042        2,431,883
------------------------------------------------------------------------------------------------------------
      210,000    Syracuse IDA (Anoplate Corp.)                       7.250       11/01/2007          211,762
------------------------------------------------------------------------------------------------------------
    2,195,000    Syracuse IDA (Anoplate Corp.)                       8.000       11/01/2022        2,268,115
------------------------------------------------------------------------------------------------------------
    1,000,000    Syracuse IDA (Crouse Irving Health Hospital)        5.375       01/01/2023          749,510
------------------------------------------------------------------------------------------------------------
   19,965,000    Syracuse IDA (James Square)                         0.000 1     08/01/2025        5,153,965
------------------------------------------------------------------------------------------------------------
      725,000    Syracuse IDA (Jewish Home of Central NY)            7.375       03/01/2021          749,324
------------------------------------------------------------------------------------------------------------
    2,050,000    Syracuse IDA (Jewish Home of Central NY)            7.375       03/01/2031        2,105,883
------------------------------------------------------------------------------------------------------------
    7,500,000    Tobacco Settlement Financing Corp. (TASC)           5.500       06/01/2019        8,316,750
------------------------------------------------------------------------------------------------------------
   13,825,000    Tobacco Settlement Financing Corp. (TASC)           5.500       06/01/2021       15,154,412
------------------------------------------------------------------------------------------------------------
   13,555,000    Tobacco Settlement Financing Corp. (TASC)           5.500       06/01/2022       14,767,901
------------------------------------------------------------------------------------------------------------
    3,750,000    Tompkins County IDA (Ithacare Center)               6.200       02/01/2037        4,073,663
------------------------------------------------------------------------------------------------------------
       95,000    Tompkins Health Care Corp.
                 (Reconstruction Home)                              10.800       02/01/2007          101,893
------------------------------------------------------------------------------------------------------------
       70,000    Tompkins Health Care Corp.
                 (Reconstruction Home)                              10.800       02/01/2028           79,226
------------------------------------------------------------------------------------------------------------
      605,000    Tonawanda SCHC                                      6.500       12/01/2010          615,285
------------------------------------------------------------------------------------------------------------
    8,265,000    Triborough Bridge & Tunnel Authority RITES 2       12.162 3     01/01/2027        9,198,119
------------------------------------------------------------------------------------------------------------
    4,190,000    Triborough Bridge & Tunnel Authority RITES 2       12.197 3     01/01/2032        4,572,296
------------------------------------------------------------------------------------------------------------
   15,615,000    TSASC, Inc. (TFABs)                                 5.750       07/15/2032       15,030,687
------------------------------------------------------------------------------------------------------------
      840,000    TSASC, Inc. (TFABs)                                 6.250       07/15/2027          852,508
------------------------------------------------------------------------------------------------------------
   78,575,000    TSASC, Inc. (TFABs)                                 6.250       07/15/2034       79,560,331
------------------------------------------------------------------------------------------------------------
  129,920,000    TSASC, Inc. (TFABs)                                 6.375       07/15/2039      132,305,331
------------------------------------------------------------------------------------------------------------
      995,000    UCP/HCA of Chemung County                           6.600       08/01/2022        1,082,809
------------------------------------------------------------------------------------------------------------
    1,700,000    Ulster County IDA (Benedictine Hospital)            6.450       06/01/2024        1,560,991
------------------------------------------------------------------------------------------------------------
    1,845,000    Ulster County IDA (Brooklyn Bottling)               8.600       06/30/2022        1,853,838
------------------------------------------------------------------------------------------------------------
    4,000,000    Ulster County IDA (Kingston Hospital)               5.650       11/15/2024        4,179,240
------------------------------------------------------------------------------------------------------------
    1,465,000    Ulster County IDA
                 (Mid-Hudson Family Health Services)                 5.350       07/01/2023        1,527,746
------------------------------------------------------------------------------------------------------------
    2,635,000    Ulster County Tobacco Asset
                 Securitization Corp.                                0.000 7     06/01/2040        1,817,518
------------------------------------------------------------------------------------------------------------
    2,680,000    Ulster County Tobacco Asset
                 Securitization Corp.                                6.000       06/01/2040        2,469,164
------------------------------------------------------------------------------------------------------------
    2,000,000    Ulster County Tobacco Asset
                 Securitization Corp. 2                              6.250       06/01/2025        2,008,680
------------------------------------------------------------------------------------------------------------
    2,000,000    United Nations Devel. Corp., Series A               5.250       07/01/2026        2,091,140
------------------------------------------------------------------------------------------------------------
       25,000    Upper Mohawk Valley Regional Water
                 Finance Authority                                   5.125       10/01/2026           26,370
------------------------------------------------------------------------------------------------------------
      500,000    Utica GO                                            6.100       01/15/2013          556,220
------------------------------------------------------------------------------------------------------------
    3,550,000    Utica IDA (Utica College Civic Facility)            6.850       12/01/2031        3,661,861


                         42 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     340,000    Watervliet Hsg. Authority
                 (Colonie Senior Service Center)                     5.875%      06/01/2018  $       330,164
------------------------------------------------------------------------------------------------------------
   10,800,000    Watervliet Hsg. Authority
                 (Colonie Senior Service Center)                     6.125       06/01/2038       10,117,656
------------------------------------------------------------------------------------------------------------
    2,820,000    Wayne County IDA (ARC)                              8.375       03/01/2018        2,827,811
------------------------------------------------------------------------------------------------------------
      300,000    Westchester County Healthcare Corp., Series A       5.875       11/01/2025          299,721
------------------------------------------------------------------------------------------------------------
    7,195,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        7,415,527
------------------------------------------------------------------------------------------------------------
    3,145,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        3,241,394
------------------------------------------------------------------------------------------------------------
    6,330,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        6,524,015
------------------------------------------------------------------------------------------------------------
    3,590,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        3,700,608
------------------------------------------------------------------------------------------------------------
    8,470,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        8,730,961
------------------------------------------------------------------------------------------------------------
    8,115,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        8,363,725
------------------------------------------------------------------------------------------------------------
    6,290,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        6,482,789
------------------------------------------------------------------------------------------------------------
    6,865,000    Westchester County IDA (Ardsley Hsg.)               7.900       11/01/2044        7,075,412
------------------------------------------------------------------------------------------------------------
    1,870,000    Westchester County IDA (Beth Abraham Hospital)      8.375       12/01/2025        1,957,890
------------------------------------------------------------------------------------------------------------
       40,000    Westchester County IDA (Children's Village)         5.375       03/15/2019           40,311
------------------------------------------------------------------------------------------------------------
    4,600,000    Westchester County IDA (Children's Village)         6.000       06/01/2022        4,659,110
------------------------------------------------------------------------------------------------------------
    1,040,400    Westchester County IDA (Clearview School)           9.375       01/01/2021        1,068,824
------------------------------------------------------------------------------------------------------------
    1,300,000    Westchester County IDA
                 (Guiding Eyes for the Blind)                        5.375       08/01/2024        1,347,632
------------------------------------------------------------------------------------------------------------
    2,000,000    Westchester County IDA
                 (Hebrew Hospital Senior Hsg.)                       7.375       07/01/2030        2,131,020
------------------------------------------------------------------------------------------------------------
    1,560,000    Westchester County IDA (JDAM)                       6.750       04/01/2016        1,625,146
------------------------------------------------------------------------------------------------------------
    3,250,000    Westchester County IDA (Lawrence Hospital)          5.000       01/01/2028        3,195,498
------------------------------------------------------------------------------------------------------------
      800,000    Westchester County IDA (Lawrence Hospital)          5.125       01/01/2018          820,904
------------------------------------------------------------------------------------------------------------
    1,275,000    Westchester County IDA
                 (Living Independently for the Elderly)              5.375       08/20/2021        1,375,636
------------------------------------------------------------------------------------------------------------
    3,035,000    Westchester County IDA
                 (Living Independently for the Elderly)              5.400       08/20/2032        3,206,690
------------------------------------------------------------------------------------------------------------
    1,645,000    Westchester County IDA (Rippowam-Cisqua School)     5.750       06/01/2029        1,677,127
------------------------------------------------------------------------------------------------------------
    1,000,000    Westchester County IDA (Schnurmacher Center)        6.500       11/01/2013        1,042,490
------------------------------------------------------------------------------------------------------------
    1,710,000    Westchester County IDA (Schnurmacher Center)        6.500       11/01/2033        1,799,724
------------------------------------------------------------------------------------------------------------
       85,000    Westchester County IDA
                 (Westchester Airport Association)                   5.950       08/01/2024           85,897
------------------------------------------------------------------------------------------------------------
    2,585,000    Westchester County IDA (Winward School)             5.250       10/01/2031        2,679,094
------------------------------------------------------------------------------------------------------------
   76,375,000    Westchester County Tobacco Asset
                 Securitization Corp.                                0.000 7     07/15/2039       60,178,154
------------------------------------------------------------------------------------------------------------
    1,423,800    Yates County IDA (Keuka College)                    8.750       08/01/2015        1,673,321
------------------------------------------------------------------------------------------------------------
    3,825,000    Yates County IDA (SSMH)                             5.650       02/01/2039        4,164,622
------------------------------------------------------------------------------------------------------------
   15,185,000    Yonkers IDA (Community Devel. Properties)           6.625       02/01/2026       16,361,686
------------------------------------------------------------------------------------------------------------
    4,685,000    Yonkers IDA (Hudson Scenic Studio)                  6.625       11/01/2019        4,724,213
------------------------------------------------------------------------------------------------------------
    1,590,000    Yonkers IDA (Philipsburgh Hall Associates)          7.500       11/01/2030        1,572,764
------------------------------------------------------------------------------------------------------------
    2,500,000    Yonkers IDA (St. John's Riverside Hospital)         7.125       07/01/2031        2,554,775
------------------------------------------------------------------------------------------------------------
    3,050,000    Yonkers IDA (St. Joseph's Hospital)                 8.500       12/30/2013        3,120,913
------------------------------------------------------------------------------------------------------------
    3,300,000    Yonkers IDA (Westchester School)                    8.750       12/30/2023        3,434,970


                         43 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
NEW YORK Continued
$     800,000    Yonkers Parking Authority                           6.000%      06/15/2018  $       850,864
------------------------------------------------------------------------------------------------------------
    1,215,000    Yonkers Parking Authority                           6.000       06/15/2024        1,264,317
                                                                                             ---------------
                                                                                               5,503,800,665
------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS--12.7%
    2,435,000    Guam EDA (Royal Socio Apartments)                   9.500       11/01/2018        2,387,250
------------------------------------------------------------------------------------------------------------
      290,000    Guam Power Authority, Series A                      5.250       10/01/2023          281,065
------------------------------------------------------------------------------------------------------------
   20,000,000    Guam Power Authority, Series A                      5.250       10/01/2034       18,613,200
------------------------------------------------------------------------------------------------------------
    1,000,000    Northern Mariana Islands, Series A                  6.000       06/01/2020        1,068,130
------------------------------------------------------------------------------------------------------------
    8,010,000    Northern Mariana Islands, Series A                  6.250       03/15/2028        8,286,986
------------------------------------------------------------------------------------------------------------
   19,340,000    Northern Mariana Islands, Series A                  6.600       03/15/2028       21,179,814
------------------------------------------------------------------------------------------------------------
   10,000,000    Northern Mariana Islands, Series A                  7.375       06/01/2030       10,502,500
------------------------------------------------------------------------------------------------------------
    6,290,000    Puerto Rico Children's Trust Fund (TASC)            5.500       05/15/2039        5,770,257
------------------------------------------------------------------------------------------------------------
   21,405,000    Puerto Rico Children's Trust Fund (TASC)            5.625       05/15/2043       19,828,522
------------------------------------------------------------------------------------------------------------
    1,900,000    Puerto Rico Commonwealth GO                         5.000       07/01/2029        1,947,671
------------------------------------------------------------------------------------------------------------
   17,500,000    Puerto Rico Commonwealth GO                         5.000       07/01/2034       17,838,100
------------------------------------------------------------------------------------------------------------
    2,000,000    Puerto Rico Commonwealth GO                         5.125       07/01/2031        2,053,900
------------------------------------------------------------------------------------------------------------
       50,000    Puerto Rico Electric Power Authority                5.250       07/01/2029           53,198
------------------------------------------------------------------------------------------------------------
      210,000    Puerto Rico Electric Power Authority                5.375       07/01/2030          214,578
------------------------------------------------------------------------------------------------------------
       30,000    Puerto Rico Electric Power Authority, Series NN     5.125       07/01/2029           31,076
------------------------------------------------------------------------------------------------------------
    4,700,000    Puerto Rico GO                                      5.000       07/01/2033        4,774,824
------------------------------------------------------------------------------------------------------------
      750,000    Puerto Rico HBFA                                    6.250       04/01/2029          768,338
------------------------------------------------------------------------------------------------------------
      110,000    Puerto Rico HFC                                     5.100       12/01/2018          114,500
------------------------------------------------------------------------------------------------------------
    2,030,000    Puerto Rico HFC                                     5.500       12/01/2023        2,133,307
------------------------------------------------------------------------------------------------------------
      100,000    Puerto Rico HFC                                     7.500       10/01/2015          100,187
------------------------------------------------------------------------------------------------------------
    2,640,000    Puerto Rico HFC                                     7.500       04/01/2022        2,665,793
------------------------------------------------------------------------------------------------------------
    3,150,000    Puerto Rico Highway & Transportation Authority      5.000       07/01/2028        3,214,481
------------------------------------------------------------------------------------------------------------
   50,440,000    Puerto Rico Highway & Transportation Authority,
                 Series D                                            5.250       07/01/2038       52,402,620
------------------------------------------------------------------------------------------------------------
    4,000,000    Puerto Rico Highway & Transportation Authority,
                 Series D                                            5.375       07/01/2036        4,206,400
------------------------------------------------------------------------------------------------------------
    6,000,000    Puerto Rico Highway & Transportation Authority,
                 Series G                                            5.000       07/01/2033        6,095,520
------------------------------------------------------------------------------------------------------------
   53,300,000    Puerto Rico Highway & Transportation Authority,
                 Series G                                            5.000       07/01/2042       53,777,568
------------------------------------------------------------------------------------------------------------
    1,250,000    Puerto Rico Highway & Transportation Authority,
                 Series J                                            5.125       07/01/2039        1,282,138
------------------------------------------------------------------------------------------------------------
      220,000    Puerto Rico Infrastructure                          7.500       07/01/2009          225,632
------------------------------------------------------------------------------------------------------------
    1,080,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.375       02/01/2019        1,127,142
------------------------------------------------------------------------------------------------------------
    1,575,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.375       12/01/2021        1,668,114
------------------------------------------------------------------------------------------------------------
    5,750,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.375       02/01/2029        5,898,005
------------------------------------------------------------------------------------------------------------
    6,315,000    Puerto Rico ITEMECF (Ana G. Mendez University)      5.500       12/01/2031        6,604,353
------------------------------------------------------------------------------------------------------------
   42,400,000    Puerto Rico ITEMECF (Congeneration Facilities)      6.625       06/01/2026       45,962,872


                         44 | ROCHESTER FUND MUNICIPALS

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$   3,345,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        5.625%      07/01/2017  $     2,977,485
------------------------------------------------------------------------------------------------------------
      985,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        5.625       07/01/2027          823,332
------------------------------------------------------------------------------------------------------------
    8,735,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        6.500       07/01/2018        8,409,097
------------------------------------------------------------------------------------------------------------
   12,340,000    Puerto Rico ITEMECF
                 (Mennonite General Hospital)                        6.500       07/01/2026       11,546,538
------------------------------------------------------------------------------------------------------------
      750,000    Puerto Rico ITEMECF
                 (Ryder Memorial Hospital)                           6.400       05/01/2009          754,890
------------------------------------------------------------------------------------------------------------
    2,450,000    Puerto Rico ITEMECF
                 (Ryder Memorial Hospital)                           6.600       05/01/2014        2,450,368
------------------------------------------------------------------------------------------------------------
    5,250,000    Puerto Rico ITEMECF (Ryder Memorial Hospital)       6.700       05/01/2024        5,181,120
------------------------------------------------------------------------------------------------------------
    7,000,000    Puerto Rico ITEMECF
                 (San Lucas & Cristo Redentor Hospitals)             5.750       06/01/2029        4,971,610
------------------------------------------------------------------------------------------------------------
      500,000    Puerto Rico ITEMECF
                 (University of the Sacred Heart)                    5.250       09/01/2021          521,360
------------------------------------------------------------------------------------------------------------
    8,000,000    Puerto Rico ITEMECF
                 (University of the Sacred Heart)                    5.250       09/01/2031        8,161,600
------------------------------------------------------------------------------------------------------------
    1,000,000    Puerto Rico Port Authority (American Airlines),
                 Series A                                            6.250       06/01/2026          701,550
------------------------------------------------------------------------------------------------------------
   12,470,000    Puerto Rico Port Authority (American Airlines),
                 Series A                                            6.300       06/01/2023        8,810,803
------------------------------------------------------------------------------------------------------------
   52,715,000    Puerto Rico Public Buildings Authority              5.000       07/01/2036       53,552,114
------------------------------------------------------------------------------------------------------------
   57,835,000    Puerto Rico Public Buildings Authority              5.250       07/01/2033       60,565,969
------------------------------------------------------------------------------------------------------------
      325,000    Puerto Rico Public Buildings Authority              5.375       07/01/2033          364,549
------------------------------------------------------------------------------------------------------------
      120,000    Puerto Rico Public Buildings Authority              5.375       07/01/2033          126,388
------------------------------------------------------------------------------------------------------------
  136,350,000    Puerto Rico Public Finance Corp., Series E          5.500       08/01/2029      154,676,804
------------------------------------------------------------------------------------------------------------
   46,060,000    Puerto Rico Public Finance Corp., Series E          5.500       08/01/2029       48,768,328
------------------------------------------------------------------------------------------------------------
      112,707    Puerto Rico San Sebastian Garage Lease 2,4,5       10.000       09/16/2005          106,200
------------------------------------------------------------------------------------------------------------
    9,230,000    University of V.I. , Series A                       5.375       06/01/2034        9,562,649
------------------------------------------------------------------------------------------------------------
    2,040,000    University of V.I. , Series A                       6.250       12/01/2029        2,213,971
------------------------------------------------------------------------------------------------------------
    1,250,000    V.I. Government Refinery Facilities
                 (Hovensa Coker)                                     6.500       07/01/2021        1,369,800
------------------------------------------------------------------------------------------------------------
       45,000    V.I. Hsg. Finance Authority, Series A               6.450       03/01/2016           45,985
------------------------------------------------------------------------------------------------------------
   18,720,000    V.I. Public Finance Authority
                 (Gross Receipts Taxes Loan)                         5.000       10/01/2031       18,855,158
------------------------------------------------------------------------------------------------------------
      500,000    V.I. Public Finance Authority
                 (Gross Receipts Taxes Loan)                         5.000       10/01/2033          510,410
------------------------------------------------------------------------------------------------------------
   27,733,000    V.I. Public Finance Authority (Hovensa Coker)       6.500       07/01/2021       30,373,736
------------------------------------------------------------------------------------------------------------
    8,000,000    V.I. Public Finance Authority
                 (Hovensa Refinery)                                  6.125       07/01/2022        8,594,880
------------------------------------------------------------------------------------------------------------
   11,700,000    V.I. Public Finance Authority (Hovensa)             5.875       07/01/2022       12,432,186
------------------------------------------------------------------------------------------------------------
    1,550,000    V.I. Public Finance Authority Computer Lease 2      6.250       01/01/2005        1,550,000
------------------------------------------------------------------------------------------------------------
      750,000    V.I. Public Finance Authority, Series A             5.250       10/01/2024          790,013
------------------------------------------------------------------------------------------------------------
    1,000,000    V.I. Public Finance Authority, Series A             5.500       10/01/2018        1,044,830
------------------------------------------------------------------------------------------------------------
   16,220,000    V.I. Public Finance Authority, Series A             5.500       10/01/2022       16,878,694
------------------------------------------------------------------------------------------------------------
    7,500,000    V.I. Public Finance Authority, Series A             5.625       10/01/2025        7,797,075
------------------------------------------------------------------------------------------------------------
       50,000    V.I. Public Finance Authority, Series A             5.625       10/01/2025           52,191
------------------------------------------------------------------------------------------------------------
    3,830,000    V.I. Public Finance Authority, Series E             6.000       10/01/2022        3,937,393


                         45 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

    PRINCIPAL                                                                                          VALUE
       AMOUNT                                                       COUPON         MATURITY       SEE NOTE 1
-------------------------------------------------------------------------------------------------------------
U.S. POSSESSIONS Continued
$   1,575,000    V.I. Water & Power Authority                        5.300%      07/01/2018  $     1,616,045
-------------------------------------------------------------------------------------------------------------
    3,515,000    V.I. Water & Power Authority                        5.300       07/01/2021        3,555,247
-------------------------------------------------------------------------------------------------------------
    2,500,000    V.I. Water & Power Authority                        5.500       07/01/2017        2,569,707
                                                                                             ----------------
                                                                                                 800,298,116

-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $6,159,195,985)--100.4%                                      6,304,098,781
-------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS--(0.4)                                                     (26,097,217)
                                                                                             ----------------
NET ASSETS--100.0%                                                                           $ 6,278,001,564
                                                                                             ================

FOOTNOTES TO STATEMENT OF INVESTMENTS

1. Represents a zero coupon bond.

2. Illiquid security. The aggregate value of illiquid securities as of December
31, 2004 was $618,907,796, which represents 9.86% of the Fund's net assets. See
Note 5 of Notes to Financial Statements.

3. Represents the current interest rate for a variable rate bond known as an
"inverse floater." See Note 1 of Notes to Financial Statements.

4. Non-income producing security.

5. Issue is in default. See Note 1 of Notes to Financial Statements.

6. When-issued security or forward commitment to be delivered and settled after
December 31, 2004. See Note 1 of Notes to Financial Statements.

7. Denotes a step bond: a zero coupon bond that converts to a fixed or variable
interest rate at a designated future date.

8. Represents the current interest rate for a variable or increasing rate
security.


                         46 | ROCHESTER FUND MUNICIPALS

--------------------------------------------------------------------------------
PORTFOLIO ABBREVIATIONS  December 31, 2004
--------------------------------------------------------------------------------

TO SIMPLIFY THE LISTINGS OF SECURITIES, ABBREVIATIONS ARE USED PER THE TABLE
BELOW:

ACDS        Association for Children with Down Syndrome

ACLD        Adults and Children with Learning and Developmental Disabilities

ADD         Aid to the Developmentally Disabled

ALIA        Alliance of Long Island Agencies

ARC         Association of Retarded Citizens

ASMF        Amsterdam Sludge Management Facility

CCSSVD      Central Council of the Society of St. Vincent dePaul

CFGA        Child and Family Guidance Association

CHSLI       Catholic Health Services of Long Island

CNGCS       Central Nassau Guidance and Counseling Services

COP         Certificates of Participation

CSD         Central School District

CSMR        Community Services for the Mentally Retarded

DA          Dormitory Authority

DDI         Developmental Disabilities Institute

DIAMONDS    Direct Investment of Accrued Municipals

EDA         Economic Development Authority

EFC         Environmental Facilities Corp.

ERDA        Energy Research and Development Authority

FHA         Federal Housing Agency

FREE        Family Residences and Essential Enterprises

GJSR        Gurwin Jewish Senior Residences

GO          General Obligation

GSHMC       Good Samaritan Hospital Medical Center

HBFA        Housing Bank and Finance Agency

HDC         Housing Development Corp.

HELP        Homeless Economic Loan Program

HFA         Housing Finance Agency/Authority

HFC         Housing Finance Corp.

HH          Harmony Heights, Inc.

HHS         Harmony Heights School

HJDOI       Hospital for Joint Diseases Orthopedic Institute

IDA         Industrial Development Agency

IFA         Interim Finance Authority

IGHL        Independent Group Home for Living

INFLOS      Inverse Floating Rate Securities

ITEMECF     Industrial, Tourist, Educational, Medical and Environmental
            Community Facilities

JCC         Jewish Community Center

JDAM        Julia Dyckman Andrus Memorial

JFK         John Fitzgerald Kennedy

L.I.        Long Island

LGSC        Local Government Services Corporation

LILCO       Long Island Lighting Corporation

LRRHCF      Loretto Rest Residential Health Care Facility

LVH         Little Village House

MCH         Maryhaven Center of Hope

MMC         Mercy Medical Center

MSH/NYU     Mount Sinai Hospital/New York University

MTA         Metropolitan Transportation Authority

NH&HC       Nursing Home and Health Care

NIMO        Niagara Mohawk Power Corporation

NY/NJ       New York/New Jersey

NYC         New York City

NYS         New York State

NYSEG       New York State Electric and Gas

NYU         New York University

OBPWC       Ocean Bay Park Water Corporation

PSCH        Professional Service Centers for the Handicapped, Inc.

Res Rec     Resource Recovery Facility

RG&E        Rochester Gas and Electric

RIBS        Residual Interest Bonds

RITES       Residual Interest Tax Exempt Security

SCCC        Sullivan County Community College

SCHC        Senior Citizen Housing Corporation

SCHRC       St. Charles Hospital and Rehabilitation Center

SCSB        Schuyler Community Services Board

SCSMC       St. Catherine of Sienna Medical Center

SFH         St. Francis Hospital

SLCD        School for Language and Communication Development

SMCFS       St. Mary's Children and Family Services

SONYMA      State of New York Mortgage Agency

SSMH        Soldiers and Sailors Memorial Hospital

SUNY        State University of New York

SV          Sienna Village

TASC        Tobacco Settlement Asset-Backed Bonds

TFA         Transitional Finance Authority

TFABs       Tobacco Flexible Amortization Bonds

UCP/HCA     United Cerebral Palsy and Handicapped Children's Association

UCPAGS      United Cerebral Palsy Association of Greater Suffolk

UDC         Urban Development Corp.

VDRNs       Variable Demand Rate Notes

V.I.        United States Virgin Islands

WORCA       Working Organization for Retarded Children and Adults

WWH         Wyandach/Wheatley Heights

YMCA        Young Men's Christian Association


                         47 | ROCHESTER FUND MUNICIPALS

STATEMENT OF INVESTMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
INDUSTRY CONCENTRATIONS December 31, 2004
--------------------------------------------------------------------------------

DISTRIBUTION OF INVESTMENTS BY INDUSTRY OF ISSUE, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:

INDUSTRY                                               MARKET VALUE     PERCENT
--------------------------------------------------------------------------------
Hospital/Health Care                                 $  732,574,658        11.6%
Tobacco Settlements                                     631,062,556        10.0
Electric Utilities                                      571,769,180         9.1
Highways/Railways                                       556,514,929         8.8
Airlines                                                496,204,941         7.9
General Obligation                                      422,428,655         6.7
Adult Living Facilities                                 365,637,114         5.8
Multifamily Housing                                     341,717,504         5.4
Sales Tax Revenue                                       288,734,669         4.6
Higher Education                                        275,255,577         4.4
Not-for-Profit Organization                             261,540,978         4.2
Water Utilities                                         245,946,792         3.9
Paper, Containers & Packaging                           186,850,726         3.0
Marine/Aviation Facilities                              164,711,404         2.6
Resource Recovery                                       120,604,695         1.9
Municipal Leases                                        109,701,458         1.8
Education                                               100,450,448         1.6
Single Family Housing                                    96,603,230         1.5
Manufacturing, Durable Goods                             89,823,822         1.4
Manufacturing, Non-Durable Goods                         82,119,575         1.3
Pollution Control                                        61,961,000         1.0
Special Assessment                                       40,330,203         0.6
Gas Utilities                                            32,318,340         0.5
Parking Fee Revenue                                      27,685,970         0.4
Hotels, Restaurants & Leisure                             1,550,357         0.0
                                                     ---------------------------
Total                                                $6,304,098,781       100.0%
                                                     ===========================


                         48 | ROCHESTER FUND MUNICIPALS

--------------------------------------------------------------------------------
SUMMARY OF RATINGS  December 31, 2004 / Unaudited
--------------------------------------------------------------------------------

DISTRIBUTION OF INVESTMENTS BY RATINGS CATEGORY, AS A PERCENTAGE OF TOTAL
INVESTMENTS AT VALUE, IS AS FOLLOWS:

RATINGS                                                                 PERCENT
--------------------------------------------------------------------------------
AAA                                                                        10.0%
AA                                                                         15.4
A                                                                          18.0
BBB                                                                        33.2
BB                                                                          4.2
B                                                                           0.1
CCC                                                                         6.6
Not Rated                                                                  12.5
                                                                         -------
Total                                                                     100.0%
                                                                         =======

Bonds rated by any nationally recognized statistical rating organization are
included in the equivalent Standard & Poor's rating category. As a general
matter, unrated bonds may be backed by mortgage liens or equipment liens on the
underlying property, and also may be guaranteed. Bonds which are backed by a
letter of credit or by other financial institutions or agencies may be assigned
an investment-grade rating by the Manager, which reflects the quality of the
guarantor, institution or agency. Unrated bonds may also be assigned a rating
when the issuer has rated bonds outstanding with comparable credit
characteristics, or when, in the opinion of the Manager, the bond itself
possesses credit characteristics which allow for rating. The unrated bonds in
the portfolio are predominantly smaller issuers which have not applied for a
bond rating. Only those unrated bonds which subsequent to purchase have not been
designated investment grade by the Manager are included in the "Not Rated"
category.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         49 | ROCHESTER FUND MUNICIPALS

STATEMENT OF ASSETS AND LIABILITIES  December 31, 2004
--------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------
ASSETS
-----------------------------------------------------------------------------------------------------
Investments, at value (cost $6,159,195,985)--see accompanying
statement of investments                                                            $  6,304,098,781
-----------------------------------------------------------------------------------------------------
Cash                                                                                       1,499,410
-----------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest                                                                                 109,956,070
Shares of beneficial interest sold                                                         8,678,390
Investments sold                                                                           4,709,926
Other                                                                                         56,848
                                                                                    -----------------
Total assets                                                                           6,428,999,425

-----------------------------------------------------------------------------------------------------
LIABILITIES
-----------------------------------------------------------------------------------------------------
Payables and other liabilities:
Notes payable to bank (interest rate 3.0000% at December 31, 2004)                       104,900,000
Investments purchased (including $32,140,000 purchased on a when-issued basis
or forward commitment)                                                                    35,037,416
Shares of beneficial interest redeemed                                                     6,625,393
Distribution and service plan fees                                                         2,676,259
Trustees' compensation                                                                     1,010,293
Transfer and shareholder servicing agent fees                                                216,871
Interest expense                                                                             159,748
Shareholder communications                                                                   149,305
Other                                                                                        222,576
                                                                                    -----------------
Total liabilities                                                                        150,997,861

-----------------------------------------------------------------------------------------------------
NET ASSETS                                                                          $  6,278,001,564
                                                                                    =================

-----------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
-----------------------------------------------------------------------------------------------------
Paid-in capital                                                                     $  6,335,646,115
-----------------------------------------------------------------------------------------------------
Accumulated net investment income                                                          5,510,090
-----------------------------------------------------------------------------------------------------
Accumulated net realized loss on investments                                            (208,057,437)
-----------------------------------------------------------------------------------------------------
Net unrealized appreciation on investments                                               144,902,796
                                                                                    -----------------
NET ASSETS                                                                          $  6,278,001,564
                                                                                    =================


                         50 | ROCHESTER FUND MUNICIPALS

-----------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
-----------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$4,698,762,604 and 264,524,066 shares of beneficial interest outstanding)                     $ 17.76
Maximum offering price per share (net asset value plus sales charge of
4.75% of offering price)                                                                      $ 18.65
-----------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of
$1,073,376,421 and 60,476,705 shares of beneficial interest outstanding)                      $ 17.75
-----------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $497,744,323
and 28,056,192 shares of beneficial interest outstanding)                                     $ 17.74
-----------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on net
assets of $8,118,216 and 457,097 shares of beneficial interest outstanding)                   $ 17.76

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         51 | ROCHESTER FUND MUNICIPALS

STATEMENT OF OPERATIONS  For the Year Ended December 31, 2004
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
INVESTMENT INCOME
--------------------------------------------------------------------------------
Interest                                                          $ 407,743,020

--------------------------------------------------------------------------------
EXPENSES
--------------------------------------------------------------------------------
Management fees                                                      27,768,032
--------------------------------------------------------------------------------
Distribution and service plan fees:
Class A                                                               6,472,909
Class B                                                              11,292,305
Class C                                                               4,586,486
--------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A                                                               1,564,074
Class B                                                                 593,119
Class C                                                                 223,275
Class Y                                                                   1,149
--------------------------------------------------------------------------------
Shareholder communications:
Class A                                                                 167,536
Class B                                                                  66,737
Class C                                                                  23,110
Class Y                                                                     448
--------------------------------------------------------------------------------
Accounting service fees                                               1,797,931
--------------------------------------------------------------------------------
Interest expense                                                      1,298,609
--------------------------------------------------------------------------------
Custodian fees and expenses                                             341,899
--------------------------------------------------------------------------------
Trustees' compensation                                                  248,976
--------------------------------------------------------------------------------
Other                                                                   471,128
                                                                  --------------
Total expenses                                                       56,917,723
Less reduction to custodian expenses                                    (32,340)
                                                                  --------------
Net expenses                                                         56,885,383

--------------------------------------------------------------------------------
NET INVESTMENT INCOME                                               350,857,637

--------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
--------------------------------------------------------------------------------
Net realized loss on investments                                    (38,366,025)
--------------------------------------------------------------------------------
Net change in unrealized appreciation on investments                 94,781,929

--------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS              $ 407,273,541
                                                                  ==============

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         52 | ROCHESTER FUND MUNICIPALS

STATEMENTS OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------

YEAR ENDED DECEMBER 31,                                                    2004               2003
---------------------------------------------------------------------------------------------------
OPERATIONS
---------------------------------------------------------------------------------------------------
Net investment income                                           $   350,857,637    $   361,925,409
---------------------------------------------------------------------------------------------------
Net realized loss                                                   (38,366,025)       (67,477,223)
---------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)                 94,781,929        134,767,140
                                                                -----------------------------------
Net increase in net assets resulting from operations                407,273,541        429,215,326

---------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
---------------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A                                                            (272,651,228)      (264,497,024)
Class B                                                             (60,767,414)       (70,438,857)
Class C                                                             (24,573,155)       (24,428,144)
Class Y                                                                (542,368)          (743,767)

---------------------------------------------------------------------------------------------------
BENEFICIAL INTEREST TRANSACTIONS
---------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from beneficial
interest transactions:
Class A                                                             431,796,391       (121,893,999)
Class B                                                            (164,466,975)      (123,811,036)
Class C                                                              51,246,009        (32,773,952)
Class Y                                                              (1,008,130)        (3,100,020)

---------------------------------------------------------------------------------------------------
NET ASSETS
---------------------------------------------------------------------------------------------------
Total increase (decrease)                                           366,306,671       (212,471,473)
---------------------------------------------------------------------------------------------------
Beginning of period                                               5,911,694,893      6,124,166,366
                                                                -----------------------------------
End of period (including accumulated net investment income of
$5,510,090 and $13,550,832, respectively)                       $ 6,278,001,564    $ 5,911,694,893
                                                                ===================================

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         53 | ROCHESTER FUND MUNICIPALS

FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

CLASS A     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.62       $   17.38      $   17.52       $    17.67       $  16.78
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                    1.07 1          1.11           1.08             1.06           1.04
Net realized and unrealized gain (loss)                   .16             .23           (.15)            (.17)           .89
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.23            1.34            .93              .89           1.93
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                    (1.09)          (1.10)         (1.07)           (1.04)         (1.04)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.76       $   17.62      $   17.38       $    17.52       $  17.67
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       7.25%           8.12%          5.46%            5.14%         11.93%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $  4,699       $   4,228      $   4,299       $    4,073       $  3,536
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $  4,387       $   4,100      $   4,292       $    3,893       $  3,341
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    6.09%           6.49%          6.18%            5.97%          6.07%
Total expenses                                           0.72%           0.71%          0.72%            0.72%          0.78%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       0.71% 4,6        0.70% 4,6      0.74% 4,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         54 | ROCHESTER FUND MUNICIPALS

CLASS B     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.60       $   17.36      $   17.51       $    17.66       $  16.77
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                     .91 1           .96            .93              .91            .89
Net realized and unrealized gain (loss)                   .18             .23           (.16)            (.17)           .90
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.09            1.19            .77              .74           1.79
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                     (.94)           (.95)          (.92)            (.89)          (.90)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.75       $   17.60      $   17.36       $    17.51       $  17.66
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       6.40%           7.19%          4.50%            4.25%         10.98%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $  1,073       $   1,231      $   1,342       $    1,157       $    803
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $  1,130       $   1,259      $   1,275       $      997       $    711
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    5.23%           5.62%          5.32%            5.10%          5.19%
Total expenses                                           1.59%           1.58%          1.58%            1.58%          1.65%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       1.57% 4,6        1.56% 5,6      1.60% 5,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         55 | ROCHESTER FUND MUNICIPALS

FINANCIAL HIGHLIGHTS  Continued
--------------------------------------------------------------------------------

CLASS C     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001           2000
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.59       $   17.36      $   17.50       $    17.66       $  16.76
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                     .91 1           .96            .93              .91            .89
Net realized and unrealized gain (loss)                   .18             .22           (.15)            (.18)           .91
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.09            1.18            .78              .73           1.80
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                     (.94)           (.95)          (.92)            (.89)          (.90)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.74       $   17.59      $   17.36       $    17.50       $  17.66
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 2                       6.40%           7.14%          4.57%            4.19%         11.06%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $    498       $     443      $     471       $      429       $    259
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $    459       $     436      $     460       $      356       $    225
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income                                    5.22%           5.62%          5.32%            5.09%          5.20%
Total expenses                                           1.59%           1.58%          1.58%            1.57%          1.63%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 4           N/A 4,5       1.57% 4,6        1.55% 4,6      1.59% 4,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

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

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

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

4. Reduction to custodian expenses less than 0.01%.

5. Voluntary waiver of transfer agent fees less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         56 | ROCHESTER FUND MUNICIPALS

CLASS Y     YEAR ENDED DECEMBER 31,                      2004            2003           2002             2001          2000 1
---------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period                 $  17.61       $   17.38      $   17.52       $    17.67       $  16.88
---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income                                    1.10 2          1.14           1.10             1.08            .70
Net realized and unrealized gain (loss)                   .17             .21           (.15)            (.17)           .78
                                                     ----------------------------------------------------------------------------
Total from investment operations                         1.27            1.35            .95              .91           1.48
---------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income                    (1.12)          (1.12)         (1.09)           (1.06)          (.69)
---------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period                       $  17.76       $   17.61      $   17.38       $    17.52       $  17.67
                                                     ============================================================================

---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN, AT NET ASSET VALUE 3                       7.50%           8.16%          5.57%            5.25%          8.97%
---------------------------------------------------------------------------------------------------------------------------------

---------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in millions)              $      8       $       9      $      12       $       12       $     11
---------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions)                     $      8       $      11      $      12       $       12       $     10
---------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income                                    6.27%           6.79%          6.30%            6.08%          6.07%
Total expenses                                           0.55%           0.61%          0.62%            0.62%          0.68%
Expenses after payments and waivers and
reduction to custodian expenses                           N/A 5           N/A 5         0.61% 5,6        0.60% 5,6      0.64% 5,6
---------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate                                    14%             18%            29%              11%            26%

1. For the period from April 28, 2000 (inception of offering) to December 31,
2000.

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

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

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

5. Reduction to custodian expenses less than 0.01%.

6. Excludes interest expenses.

SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.


                         57 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES

Rochester Fund Municipals (the Fund) is registered under the Investment Company
Act of 1940, as amended, as a diversified, open-end management investment
company. The Fund's investment objective is to provide as high a level of income
exempt from federal income tax and New York State and New York City personal
income taxes as is consistent with its investment policies and prudent
investment management while seeking preservation of shareholders' capital. The
Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).

      The Fund offers Class A, Class B, Class C and Class Y shares. Class A
shares are sold at their offering price, which is normally net asset value plus
a front-end sales charge. Class B and Class C shares are sold without a
front-end sales charge but may be subject to a contingent deferred sales charge
(CDSC). Class Y shares are sold to certain institutional investors without
either a front-end sales charge or a CDSC, however, the institutional investor
may impose charges on those accounts. All classes of shares have identical
rights and voting privileges with respect to the Fund in general and exclusive
voting rights on matters that affect that class alone. Earnings, net assets and
net asset value per share may differ due to each class having its own expenses,
such as transfer and shareholder servicing agent fees and shareholder
communications, directly attributable to that class. Class A, B and C have
separate distribution and/or service plans. No such plan has been adopted for
Class Y shares. Class B shares will automatically convert to Class A shares six
years after the date of purchase.

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

--------------------------------------------------------------------------------
SECURITIES VALUATION. The Fund calculates the net asset value of its shares as
of the close of The New York Stock Exchange (the Exchange), normally 4:00 P.M.
Eastern time, on each day the Exchange is open for business. 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. Securities traded on NASDAQ
are valued based on the closing price provided by NASDAQ 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.
Corporate, government and municipal debt instruments having a remaining maturity
in excess of 60 days and all mortgage-backed securities will be valued at the
mean between the "bid" and "asked" prices. Securities may be valued primarily
using dealer-supplied valuations or a portfolio pricing service authorized by
the Board of Trustees. Securities (including restricted securities) for which
market quotations are not readily available are valued at their fair value.
Foreign and domestic securities whose values have been materially affected by
what the Manager identifies as a significant event occurring before the Fund's
assets are valued but after the close of their respective exchanges will be fair
valued. Fair value is determined in good faith using consistently applied
procedures under the supervision of the Board of Trustees. Short-term "money
market type" debt securities with


                         58 | ROCHESTER FUND MUNICIPALS

remaining maturities of sixty days or less are valued at amortized cost (which
approximates market value).

--------------------------------------------------------------------------------
SECURITIES ON A WHEN-ISSUED BASIS OR FORWARD COMMITMENT. Delivery and payment
for securities that have been purchased by the Fund on a when-issued basis or
forward commitment can take place up to ten days or more after the trade date.
Normally the settlement date occurs within six months after the trade date;
however, the Fund may, from time to time, purchase securities whose settlement
date extends six months or more beyond trade date. During this period, such
securities do not earn interest, are subject to market fluctuation and may
increase or decrease in value prior to their delivery. The Fund maintains
internally designated assets with a market value equal to or greater than the
amount of its purchase commitments. The purchase of securities on a when-issued
basis or forward commitment may increase the volatility of the Fund's net asset
value to the extent the Fund executes such transactions while remaining
substantially fully invested. The Fund may also sell securities that it
purchased on a when-issued basis or forward commitment prior to settlement of
the original purchase. As of December 31, 2004, the Fund had purchased
$32,140,000 of securities on a when-issued basis or forward commitment.

--------------------------------------------------------------------------------
INVERSE FLOATING RATE SECURITIES. The Fund invests in inverse floating rate
securities that pay interest at a rate that varies inversely with short-term
interest rates. Certain of these securities may be leveraged, whereby the
interest rate varies inversely at a multiple of the change in short-term rates.
As interest rates rise, inverse floaters produce less current income. The price
of such securities is more volatile than comparable fixed rate securities. The
Fund will invest no more than 20% of its total assets in inverse floaters.
Inverse floaters amount to $590,301,309 as of December 31, 2004. Including the
effect of leverage, inverse floaters represent 16.80% of the Fund's total assets
as of December 31, 2004.

--------------------------------------------------------------------------------
SECURITY CREDIT RISK. The Fund invests in high-yield securities, which may be
subject to a greater degree of credit risk, market fluctuations and loss of
income and principal, and may be more sensitive to economic conditions than
lower-yielding, higher-rated fixed-income securities. The Fund may acquire
securities in default, and is not obligated to dispose of securities whose
issuers subsequently default. As of December 31, 2004, securities with an
aggregate market value of $6,466,296, representing 0.10% of the Fund's net
assets, were in default.

      There are certain risks arising from geographic concentration in any
state. Certain revenue or tax related events in a state may impair the ability
of certain issuers of municipal securities to pay principal and interest on
their obligations.

--------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis 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.


                         59 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued

FEDERAL TAXES. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
to shareholders, therefore, no federal income or excise tax provision is
required.

The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years and
unrealized appreciation or depreciation of securities and other investments for
federal income tax purposes.

                                                            NET UNREALIZED
                                                              APPRECIATION
                                                          BASED ON COST OF
                                                            SECURITIES AND
  UNDISTRIBUTED   UNDISTRIBUTED           ACCUMULATED    OTHER INVESTMENTS
  NET INVESTMENT      LONG-TERM                  LOSS   FOR FEDERAL INCOME
  INCOME                   GAIN  CARRYFORWARD 1,2,3,4         TAX PURPOSES
  ------------------------------------------------------------------------
  $7,085,235                $--          $199,101,185         $135,946,546

1. As of December 31, 2004, the Fund had $199,101,185 of net capital loss
carryforwards available to offset future realized capital gains, if any, and
thereby reduce future taxable gain distributions. As of December 31, 2004,
details of the capital loss carryforwards were as follows:

                        EXPIRING
                        ----------------------
                        2005     $   5,760,047
                        2006         4,332,921
                        2007        41,458,446
                        2008        48,591,026
                        2011        68,625,845
                        2012        30,332,900
                                 -------------
                        Total    $ 199,101,185
                                 =============

2. During the fiscal year ended December 31, 2004, the Fund did not utilize any
capital loss carryforward.

3. During the fiscal year ended December 31, 2003, the Fund did not utilize any
capital loss carryforward.

4. During the fiscal year ended December 31, 2004, $3,560,645 of unused capital
loss carryforward expired.

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. Accordingly, the
following amounts have been reclassified for December 31, 2004. Net assets of
the Fund were unaffected by the reclassifications.


                         60 | ROCHESTER FUND MUNICIPALS

                            REDUCTION TO          REDUCTION TO
                             ACCUMULATED       ACCUMULATED NET
        REDUCTION TO      NET INVESTMENT         REALIZED LOSS
        PAID-IN CAPITAL           INCOME      ON INVESTMENTS 5
        ------------------------------------------------------
        $3,196,431              $364,214            $3,560,645

5. $364,214 was distributed in connection with Fund share redemptions.

The tax character of distributions paid during the years ended December 31, 2004
and December 31, 2003 was as follows:

                                        YEAR ENDED             YEAR ENDED
                                 DECEMBER 31, 2004      DECEMBER 31, 2003
    ---------------------------------------------------------------------
    Distributions paid from:
    Exempt-interest dividends         $358,534,165           $360,107,792

The aggregate cost of securities and other investments and the composition of
unrealized appreciation and depreciation of securities and other investments for
federal income tax purposes as of December 31, 2004 are noted below. The primary
difference between book and tax appreciation or depreciation of securities and
other investments, if applicable, is attributable to the tax deferral of losses
or tax realization of financial statement unrealized gain or loss.

        Federal tax cost of securities       $6,168,152,235
                                             ===============

        Gross unrealized appreciation        $  273,127,538
        Gross unrealized depreciation          (137,180,992)
                                             ---------------
        Net unrealized appreciation          $  135,946,546
                                             ===============

--------------------------------------------------------------------------------
TRUSTEES' COMPENSATION. The Fund has adopted an unfunded retirement plan for the
Fund's independent trustees. Benefits are based on years of service and fees
paid to each trustee during the years of service. During the year ended December
31, 2004, the Fund's projected benefit obligations were increased by $110,437
and payments of $14,819 were made to retired trustees, resulting in an
accumulated liability of $830,077 as of December 31, 2004.

      In January 1995, the then existing Board of Trustees of the Fund adopted
an unfunded retirement plan for its independent trustees. The retirement plan,
as amended and restated in October 1995, provides that no independent trustee of
the Fund who is elected after September 1995 may be eligible to receive benefits
thereunder. Upon retirement, eligible trustees receive annual payments based
upon their years of service. In connection with the sale of certain assets of
Rochester Capital Advisors, L.P. (the Fund's former investment advisor) to the
Manager, all but one of the existing independent trustees retired effective
January 4, 1996. During the year ended December 31, 2004, payments of $60,750
were made to retired trustees. As of December 31, 2004, the Fund had recognized
an accumulated liability of $118,125.

      The Board of Trustees has adopted a deferred compensation plan for
independent trustees that enables trustees to elect to defer receipt of all or a
portion of the annual compensation they are entitled to receive from the Fund.
For purposes of determining


                         61 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued

the amount owed to the Trustee under the plan, deferred amounts are treated as
though equal dollar amounts had been invested in shares of the Fund or in other
Oppenheimer funds selected by the Trustee. The Fund purchases shares of the
funds selected for deferral by the Trustee in amounts equal to his or her deemed
investment, resulting in a Fund asset equal to the deferred compensation
liability. Such assets are included as a component of "Other" within the asset
section of the Statement of Assets and Liabilities. Deferral of trustees' fees
under the plan will not affect the net assets of the Fund, and will not
materially affect the Fund's assets, liabilities or net investment income per
share. Amounts will be deferred until distributed in accordance to the Plan.

--------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.

--------------------------------------------------------------------------------
INVESTMENT INCOME. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.

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

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

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


                         62 | ROCHESTER FUND MUNICIPALS

--------------------------------------------------------------------------------
2. SHARES OF BENEFICIAL INTEREST

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

                                              YEAR ENDED DECEMBER 31, 2004        YEAR ENDED DECEMBER 31, 2003
                                                 SHARES             AMOUNT          SHARES              AMOUNT
---------------------------------------------------------------------------------------------------------------
CLASS A
Sold                                         46,521,892     $  815,106,857      31,968,251      $  545,936,442
Dividends and/or
distributions reinvested                      8,491,183        148,621,535       9,003,352         153,817,637
Redeemed                                    (30,527,851)      (531,932,001)    (48,331,277)       (821,648,078)
                                            -------------------------------------------------------------------
Net increase (decrease)                      24,485,224     $  431,796,391      (7,359,674)     $ (121,893,999)
                                            ===================================================================

---------------------------------------------------------------------------------------------------------------
CLASS B
Sold                                          5,986,622     $  104,928,366       8,236,496      $  140,702,835
Dividends and/or
distributions reinvested                      1,972,158         34,491,896       2,559,786          43,684,161
Redeemed                                    (17,438,391)      (303,887,237)    (18,121,088)       (308,198,032)
                                            -------------------------------------------------------------------
Net decrease                                 (9,479,611)    $ (164,466,975)     (7,324,806)     $ (123,811,036)
                                            ===================================================================

---------------------------------------------------------------------------------------------------------------
CLASS C
Sold                                          6,761,505     $  118,507,396       4,623,365      $   79,157,974
Dividends and/or
distributions reinvested                        805,567         14,083,421         957,977          16,341,183
Redeemed                                     (4,677,791)       (81,344,808)     (7,557,987)       (128,273,109)
                                            -------------------------------------------------------------------
Net increase (decrease)                       2,889,281     $   51,246,009      (1,976,645)     $  (32,773,952)
                                            ===================================================================

---------------------------------------------------------------------------------------------------------------
CLASS Y
Sold                                                 --     $           --              --      $           --
Dividends and/or
distributions reinvested                             --                 --              --                  --
Redeemed                                        (58,749)        (1,008,130)       (179,098)         (3,100,020)
                                            -------------------------------------------------------------------
Net decrease                                    (58,749)    $   (1,008,130)       (179,098)     $   (3,100,020)
                                            ===================================================================

--------------------------------------------------------------------------------
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, 2004, were
$1,114,653,165 and $745,434,233, respectively.

--------------------------------------------------------------------------------
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 Fund which provides for a fee at an
annual rate of 0.54% of the first $100 million of average daily net assets,
0.52% on the next $150 million, 0.47% on the next $1.75 billion of average daily
net assets, 0.46% on the next $3 billion, and 0.45% of average daily net assets
over $5 billion. Effective January 1, 2005, the Fund pays the Manager an
advisory fee at an annual rate of 0.54% of the first


                         63 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued

$100 million of average daily net assets, 0.52% on the next $150 million, 0.47%
on the next $1.75 billion, 0.46% on the next $3 billion, 0.45% on the next $3
billion and 0.44% of average daily net assets over $8 billion.

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

--------------------------------------------------------------------------------
ACCOUNTING FEES. Accounting fees paid to the Manager were in accordance with the
accounting services agreement with the Fund which provides for an annual fee of
$12,000 for the first $30 million of average daily net assets and $9,000 for
each additional $30 million of average daily net assets. During the year ended
December 31, 2004, the Fund paid $1,797,931 to the Manager for accounting and
pricing services.

--------------------------------------------------------------------------------
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 per account fee. For the year ended December 31, 2004, the Fund paid
$2,391,378 to OFS for services to the Fund.

      Additionally, Class Y shares are subject to minimum fees of $10,000 for
assets of $10 million or more. The Class Y shares are subject to the minimum
fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.

--------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLAN (12b-1) Fees. Under its General Distributor's
Agreement with the Fund, OppenheimerFunds Distributor, Inc. (the Distributor)
acts as the Fund's principal underwriter in the continuous public offering of
the Fund's classes of shares.

--------------------------------------------------------------------------------
SERVICE PLAN FOR CLASS A SHARES. The Fund has adopted a Service Plan for Class A
shares. It reimburses the Distributor for a portion of its costs incurred for
services provided to accounts that hold Class A shares. Reimbursement is made
quarterly at an annual rate of up to 0.15% of the average annual net assets of
Class A shares of the Fund. The Distributor currently uses all of those fees to
pay dealers, brokers, banks and other financial institutions quarterly for
providing personal services and maintenance of accounts of their customers that
hold Class A shares. Any unreimbursed expenses the Distributor incurs with
respect to Class A shares in any fiscal year cannot be recovered in subsequent
years. Fees incurred by the Fund under the Plan are detailed in the Statement of
Operations.

--------------------------------------------------------------------------------
DISTRIBUTION AND SERVICE PLANS FOR CLASS B AND CLASS C SHARES. The Fund has
adopted Distribution and Service Plans for Class B and Class C shares to
compensate the Distributor for its services in connection with the distribution
of those shares and servicing accounts. Under the plans, the Fund pays the
Distributor an annual asset-based sales charge of 0.75% per year on Class B and
Class C shares. The Distributor also receives a service fee of up to 0.25% per
year under each plan. If either the Class B or Class C plan is terminated by the
Fund or by the shareholders of a class, the Board of Trustees and its
independent trustees must determine whether the Distributor shall be entitled to


                         64 | ROCHESTER FUND MUNICIPALS

payment from the Fund of all or a portion of the service fee and/or asset-based
sales charge in respect to shares sold prior to the effective date of such
termination. The Distributor's aggregate uncompensated expenses under the plan
at December 31, 2004 for Class B and Class C shares were $37,893,512 and
$11,067,836, respectively. Fees incurred by the Fund under the plans are
detailed in the Statement of Operations.

--------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the table below for the period indicated.

                                         CLASS A        CLASS B        CLASS C
                          CLASS A     CONTINGENT     CONTINGENT     CONTINGENT
                        FRONT-END       DEFERRED       DEFERRED       DEFERRED
                    SALES CHARGES  SALES CHARGES  SALES CHARGES  SALES CHARGES
                      RETAINED BY    RETAINED BY    RETAINED BY    RETAINED BY
YEAR ENDED            DISTRIBUTOR    DISTRIBUTOR    DISTRIBUTOR    DISTRIBUTOR
------------------------------------------------------------------------------
December 31, 2004     $ 1,926,707       $ 63,952    $ 2,288,830       $ 46,687

------------------------------------------------------------------------------
PAYMENTS AND WAIVERS OF EXPENSES. OFS has voluntarily agreed to limit transfer
and shareholder servicing agent fees for all classes to 0.35% of average annual
net assets per class. This undertaking may be amended or withdrawn at any time.

--------------------------------------------------------------------------------
5. ILLIQUID SECURITIES

As of December 31, 2004, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund will not invest more than 15% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities.

--------------------------------------------------------------------------------
6. BANK BORROWINGS

The Fund may borrow up to 5% of its total assets from a bank to purchase
portfolio securities, to meet redemption obligations or for temporary and
emergency purposes. The purchase of securities with borrowed funds creates
leverage in the Fund. The Fund has entered into an agreement which enables it to
participate with certain other Oppenheimer funds in a committed, unsecured line
of credit with a bank, which permits borrowings up to $540 million,
collectively. Interest is charged to each fund, based on its borrowings, at a
rate equal to the Federal Funds Rate plus 0.75%. The Fund also pays a commitment
fee equal to its pro rata share of the average unutilized amount of the credit
facility at a rate of 0.09% per annum. This agreement terminated on January 21,
2005.


                         65 | ROCHESTER FUND MUNICIPALS

NOTES TO FINANCIAL STATEMENTS  Continued
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
6. BANK BORROWINGS Continued

      The Fund had borrowings outstanding of $104,900,000 at December 31, 2004
at an interest rate of 3.0%. For the year ended December 31, 2004, the average
month-end balance was $57,869,429 at an average daily interest rate of 2.189%.
The Fund had gross borrowings and gross loan repayments of $900,700,000 and
$850,200,000, respectively, during the year ended December 31, 2004. The maximum
amount of borrowings outstanding at any month-end was $147,000,000. The Fund
paid commitment fees of $43,889 and interest of $1,097,617 during the year ended
December 31, 2004.

      Effective January 21, 2005 the Fund has entered into a Revolving Credit
and Security Agreement with a conduit lender and a bank which enables it to
participate with a certain other Oppenheimer fund in a committed, unsecured
borrowing facility that permits borrowings of up to $300 million, collectively.
Interest is charged to the Fund, based on its borrowings, at current commercial
paper issuance rates (2.30% as of January 21, 2005). The Fund pays additional
fees of 0.30% per annum on its outstanding borrowings and is allocated its
pro-rata share of a 0.13% per annum commitment fee with respect to the facility
size.

--------------------------------------------------------------------------------
7. LITIGATION

A consolidated amended complaint has been filed as putative derivative and class
actions against the Manager, OFS and the Distributor (collectively, the
"Oppenheimer defendants"), as well as 51 of the Oppenheimer funds (as "Nominal
Defendants") including the Fund, 31 present and former Directors or Trustees and
9 present and former officers of the funds. This complaint, filed in the U.S.
District Court for the Southern District of New York on January 10, 2005,
consolidates into a single action and amends six individual previously-filed
putative derivative and class action complaints. Like those prior complaints,
the complaint alleges that the Manager charged excessive fees for distribution
and other costs, improperly used assets of the funds in the form of directed
brokerage commissions and 12b-1 fees to pay brokers to promote sales of the
funds, and failed to properly disclose the use of assets of the funds to make
those payments in violation of the Investment Company Act of 1940 and the
Investment Advisers Act of 1940. Also, like those prior complaints, the
complaint further alleges that by permitting and/or participating in those
actions, the Directors/Trustees and the Officers breached their fiduciary duties
to shareholders of the funds under the Investment Company Act of 1940 and at
common law. The complaint seeks unspecified compensatory and punitive damages,
rescission of the funds' investment advisory agreements, an accounting of all
fees paid, and an award of attorneys' fees and litigation expenses.

      The Oppenheimer defendants believe that the allegations contained in the
Complaints are without merit and that they, the funds named as Nominal
Defendants, and the Directors/Trustees of those funds have meritorious defenses
against the claims asserted. The Oppenheimer defendants intend to defend these
lawsuits vigorously and to contest any claimed liability, and they have retained
legal counsel to defend such suits.


                         66 | ROCHESTER FUND MUNICIPALS

The Oppenheimer defendants believe that it is premature to render any opinion as
to the likelihood of an outcome unfavorable to them and that no estimate can yet
be made with any degree of certainty as to the amount or range of any potential
loss.


                         67 | ROCHESTER FUND MUNICIPALS

                                     A-7
                                  Appendix A

                      MUNICIPAL BOND RATINGS DEFINITIONS
                      ----------------------------------

Below are summaries of the rating definitions used by the
nationally-recognized rating agencies listed below for municipal securities.
Those ratings represent the opinion of the agency as to the credit quality of
issues that they rate. The summaries below are based upon publicly available
information provided by the rating organizations.

Moody's Investors Service, Inc. ("Moody's")
Municipal Ratings are opinions of the investment quality of issuers and
issues in the U.S. municipal and tax-exempt markets. As such, these ratings
incorporate Moody's assessment of the default probability and loss severity
of these issuers and issues.

Municipal Ratings are based upon the analysis of four primary factors
relating to municipal finance: economy, debt, finances, and
administration/management strategies. Each of the factors is evaluated
individually and for its effect on the other factors in the context of the
municipality's ability to repay its debt.

MUNICIPAL LONG-TERM RATING DEFINITIONS

Aaa:  Issuers or issues rated Aaa demonstrate the strongest creditworthiness
relative to other US municipal or tax-exempt issuers or issues.

Aa:  Issuers or issues rated Aa demonstrate very strong creditworthiness
relative to other US municipal or tax-exempt issuers or issues.

A:  Issuers or issues rated A present above-average creditworthiness relative
to other US municipal or tax-exempt issuers or issues.

Baa:  Issuers or issues rated Baa represent average creditworthiness relative
to other US municipal or tax- exempt issuers or issues.

Ba:  Issuers or issues rated Ba demonstrate below-average creditworthiness
relative to other US municipal or tax-exempt issuers or issues.

B:  Issuers or issues rated B demonstrate weak creditworthiness relative to
other US municipal or tax- exempt issuers or issues.

Caa:  Issuers or issues rated Caa demonstrate very weak creditworthiness
relative to other US municipal or tax-exempt issuers or issues.

Ca:  Issuers or issues rated Ca demonstrate extremely weak creditworthiness
relative to other US municipal or tax-exempt issuers or issues.

C:  Issuers or issues rated C demonstrate the weakest creditworthiness
relative to other US municipal or tax-exempt issuers or issues.

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

MIG/VMIG RATINGS: U.S. SHORT-TERM RATINGS
In municipal debt issuance, there are three rating categories for short-term
obligations that are considered investment grade. These ratings are
designated as Moody's Investment Grade (MIG) and are divided into three
levels -- MIG 1 through MIG 3.
In addition, those short-term obligations that are of speculative quality are
designated SG, or speculative grade.

In the case of variable rate demand obligations (VRDOs), a two-component
rating is assigned. The first element represents Moody's evaluation of the
degree of risk associated with scheduled principal and interest payments. The
second element represents Moody's evaluation of the degree of risk associated
with the demand feature, using the MIG rating scale.

The short-term rating assigned to the demand feature of VRDOs is designated
as VMIG. When either the long- or short-term aspect of a VRDO is not rated,
that piece is designated NR, e.g., Aaa/NR or NR/VMIG 1.

MIG ratings expire at note maturity. By contrast, VMIG rating expirations
will be a function of each issue's specific structural or credit features.

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

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

MIG 3/VMIG 3: Denotes acceptable credit quality. Liquidity and cash-flow
protection may be narrow, and market access for refinancing is likely to be
less well established.

SG:  Denotes speculative-grade credit quality. Debt instruments in this
category may lack margins of protection.

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

LONG-TERM ISSUE CREDIT RATINGS
Issue credit ratings are based in varying degrees, on the following
considerations:
o     Likelihood of payment-capacity and willingness of the obligor to meet
      its financial commitment on an obligation in accordance with the terms
      of the obligation;
o     Nature of and provisions of the obligation; and
o     Protection afforded by, and relative position of, the obligation in the
      event of bankruptcy, reorganization, or other arrangement under the
      laws of bankruptcy and other laws affecting creditors' rights.
   The issue ratings definitions are expressed in terms of default risk. As
such, they pertain to senior obligations of an entity. Junior obligations are
typically rated lower than senior obligations, to reflect the lower priority
in bankruptcy, as noted above.

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






AA: An obligation rated `AA' differs from the highest-rated obligations only
in small degree. The obligor's capacity to meet its financial commitment on
the obligation is very strong.

A: An obligation rated `A' are somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than obligations
in higher-rated categories. However, the obligor's capacity to meet its
financial commitment on the obligation is still strong.

BBB: An obligation rated `BBB' exhibits adequate protection parameters.
However, adverse economic conditions or changing circumstances are more
likely to lead to a weakened capacity of the obligor to meet its financial
commitment on the obligation.

BB, B, CCC, CC, and C

An obligation rated `BB', `B', `CCC', `CC', and `C' are regarded as having
significant speculative characteristics. `BB' indicates the least degree of
speculation and `C' the highest. While such obligations will likely have some
quality and protective characteristics, these may be outweighed by large
uncertainties or major exposures to adverse conditions.

BB: An obligation rated `BB' are less vulnerable to nonpayment than other
speculative issues. However, it faces major ongoing uncertainties or exposure
to adverse business, financial, or economic conditions, which could lead to
the obligor's inadequate capacity to meet its financial commitment on the
obligation.

B: An obligation rated `B' are more vulnerable to nonpayment than obligations
rated `BB', but the obligor currently has the capacity to meet its financial
commitment on the obligation. Adverse business, financial, or economic
conditions will likely impair the obligor's capacity or willingness to meet
its financial commitment on the obligation.

CCC: An obligation rated `CCC' are currently vulnerable to nonpayment and are
dependent upon favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. In the event of
adverse business, financial, or economic conditions, the obligor is not
likely to have the capacity to meet its financial commitment on the
obligation.

CC: An obligation rated `CC' are currently highly vulnerable to nonpayment.

C: The `C' rating may be used to cover a situation where a bankruptcy
petition has been filed or similar action has been taken, but payments on
this obligation are being continued.

D: An obligation rated `D' are in payment default. The `D' rating category is
used when payments on an obligation are not made on the date due even if the
applicable grace period has not expired, unless Standard & Poor's believes
that such payments will be made during such grace period. The `D' rating also
will be used upon the filing of a bankruptcy petition or the taking of a
similar action if payments on an obligation are jeopardized.

The ratings from "AA" to "CCC" may be modified by the addition of a plus (+)
or minus (-) sign to show relative standing within the major rating
categories.







c: The `c' subscript is used to provide additional information to investors
that the bank may terminate its obligation to purchase tendered bonds if the
long-term credit rating of the issuer is below an investment-grade level
and/or the issuer's bonds are deemed taxable.

p: The letter `p' indicates that the rating is provisional. A provisional
rating assumes the successful completion of the project financed by the debt
being rated and indicates that payment of debt service requirements is
largely or entirely dependent upon the successful, timely completion of the
project. This rating, however, while addressing credit quality subsequent to
completion of the project, makes no comment on the likelihood of or the risk
of default upon failure of such completion. The investor should exercise his
own judgment with respect to such likelihood and risk.

Continuance of the ratings is contingent upon Standard & Poor's receipt of an
executed copy of the escrow agreement or closing documentation confirming
investments and cash flows.

r: The `r' highlights derivative, hybrid, and certain other obligations that
Standard & Poor's believes may experience high volatility or high variability
in expected returns as a result of noncredit risks. Examples of such
obligations are securities with principal or interest return indexed to
equities, commodities, or currencies; certain swaps and options; and
interest-only and principal-only mortgage securities. The absence of an `r'
symbol should not be taken as an indication that an obligation will exhibit
no volatility or variability in total return.

N.R. Not rated.

Debt obligations of issuers outside the United States and its territories are
rated on the same basis as domestic corporate and municipal issues. The
ratings measure the creditworthiness of the obligor but do not take into
account currency exchange and related uncertainties.

Bond Investment Quality Standards

Under present commercial bank regulations issued by the Comptroller of the
Currency, bonds rated in the top four categories (`AAA', `AA', `A', `BBB',
commonly known as investment-grade ratings) generally are regarded as
eligible for bank investment. Also, the laws of various states governing
legal investments impose certain rating or other standards for obligations
eligible for investment by savings banks, trust companies, insurance
companies, and fiduciaries in general.

SHORT-TERM ISSUE CREDIT RATINGS
Short-term ratings are generally assigned to those obligations considered
short-term in the relevant market. In the U.S., for example, that means
obligations with an original maturity of no more than 365 days-including
commercial paper.

A-1: A short-term obligation rated "A-1" is rated in the highest category by
Standard & Poor's. The obligor's capacity to meet its financial commitment on
the obligation is strong. Within this category, certain obligations are
designated with a plus sign (+). This indicates that the obligor's capacity
to meet its financial commitment on these obligations is extremely strong.







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

A-3: A short-term obligation rated "A-3" exhibits adequate protection
parameters. However, adverse economic conditions or changing circumstances
are more likely to lead to a weakened capacity of the obligor to meet its
financial commitment on the obligation.

B: A short-term obligation rated "B" is regarded as having significant
speculative characteristics. The obligor currently has the capacity to meet
its financial commitment on the obligation; however, it faces major ongoing
uncertainties which could lead to the obligor's inadequate capacity to meet
its financial commitment on the obligation.

C: A short-term obligation rated "C" is currently vulnerable to nonpayment
and is dependent upon favorable business, financial, and economic conditions
for the obligor to meet its financial commitment on the obligation.

D: A short-term obligation rated "D" is in payment default. The "D" rating
category is used when payments on an obligation are not made on the date due
even if the applicable grace period has not expired, unless Standard & Poor's
believes that such payments will be made during such grace period. The "D"
rating also will be used upon the filing of a bankruptcy petition or the
taking of a similar action if payments on an obligation are jeopardized.

Notes. A Standard & Poor's note rating reflects the liquidity factors and
market access risks unique to notes. Notes due in three years or less will
likely receive a note rating. Notes maturing beyond three years will most
likely receive a long-term debt rating. The following criteria will be used
in making that assessment:
o.....Amortization schedule-the larger the final maturity relative to other
      maturities, the more likely it will
      be treated as a note; and
o     Source of payment-the more dependent the issue is on the market for its
      refinancing, the more likely
      it will be treated as a note.

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

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

SP-3: Speculative capacity to pay principal and interest.


Fitch, Inc.
International credit ratings assess the capacity to meet foreign currency or
local currency commitments. Both "foreign currency" and "local currency"
ratings are internationally comparable assessments. The local currency rating
measures the probability of payment within the relevant sovereign state's
currency and jurisdiction and therefore, unlike the foreign currency rating,
does not take account of the possibility of foreign exchange controls
limiting transfer into foreign currency.

INTERNATIONAL LONG-TERM CREDIT RATINGS
The following ratings scale applies to foreign currency and local currency
ratings.
Investment Grade:

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

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

A: High Credit Quality. "A" ratings denote a low expectation of credit risk.
The capacity for timely payment of financial commitments is considered
strong. This capacity may, nevertheless, be more vulnerable to changes in
circumstances or in economic conditions than is the case for higher ratings.

BBB: Good Credit Quality. "BBB" ratings indicate that there is currently a
low expectation of credit risk. The capacity for timely payment of financial
commitments is considered adequate, but adverse changes in circumstances and
in economic conditions are more likely to impair this capacity. This is the
lowest investment-grade category.

Speculative Grade:

BB: Speculative. "BB" ratings indicate that there is a possibility of credit
risk developing, particularly as the result of adverse economic change over
time. However, business or financial alternatives may be available to allow
financial commitments to be met. Securities rated in this category are not
investment grade.

B: Highly Speculative. "B" ratings indicate that significant credit risk is
present, but a limited margin of safety remains. Financial commitments are
currently being met. However, capacity for continued payment is contingent
upon a sustained, favorable business and economic environment.

CCC, CC C: High Default Risk.  Default is a real possibility. Capacity for
meeting financial commitments is solely reliant upon sustained, favorable
business or economic developments. A "CC" rating indicates that default of
some kind appears probable. "C" ratings signal imminent default.

DDD, DD, and D: Default. The ratings of obligations in this category are
based on their prospects for achieving partial or full recovery in a
reorganization or liquidation of the obligor. While expected recovery values
are highly speculative and cannot be estimated with any precision, the
following serve as general guidelines. "DDD" obligations have the highest
potential for recovery, around 90%-100% of outstanding amounts and accrued
interest. "DD" indicates potential recoveries in the range of 50%-90%, and
"D" the lowest recovery potential, i.e., below 50%.

Entities rated in this category have defaulted on some or all of their
obligations. Entities rated "DDD" have the highest prospect for resumption of
performance or continued operation with or without a formal reorganization
process. Entities rated "DD" and "D" are generally undergoing a formal
reorganization or liquidation process; those rated "DD" are likely to satisfy
a higher portion of their outstanding obligations, while entities rated "D"
have a poor prospect for repaying all obligations.
Plus (+) and minus (-) signs may be appended to a rating symbol to denote
relative status within the major rating categories.  Plus and minus signs are
not added to the "AAA" category or to categories below "CCC," nor to
short-term ratings other than "F1" (see below).

INTERNATIONAL SHORT-TERM CREDIT RATINGS
The following ratings scale applies to foreign currency and local currency
ratings. A short-term rating has a time horizon of less than 12 months for
most obligations, or up to three years for U.S. public finance securities,
and thus places greater emphasis on the liquidity necessary to meet financial
commitments in a timely manner.

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

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

F3: Fair credit quality. Capacity for timely payment of financial commitments
is adequate. However, near-term adverse changes could result in a reduction
to non-investment grade.

B: Speculative. Minimal capacity for timely payment of financial commitments,
plus vulnerability to near-term adverse changes in financial and economic
conditions.

C: High default risk. Default is a real possibility. Capacity for meeting
financial commitments is solely reliant upon a sustained, favorable business
and economic environment.

D: Default. Denotes actual or imminent payment default.







                                     B-1
                                  Appendix B

                   MUNICIPAL BOND INDUSTRY CLASSIFICATIONS

Adult Living Facilities
Airlines
Education
Electric Utilities
Gas Utilities
General Obligation
Higher Education
Highways/Railways
Hospital/Healthcare
Hotels, Restaurants & Leisure
Manufacturing, Durable Goods
Manufacturing, Non Durable Goods
Marine/Aviation Facilities
Multi-Family Housing
Municipal Leases
Non Profit Organization
Paper, Containers & Packaging
Parking Fee Revenue
Pollution Control
Resource Recovery
Sales Tax Revenue
Sewer Utilities
Single Family Housing
Special Assessment
Special Tax
Sports Facility Revenue
Student Loans
Telephone Utilities
Tobacco
Water Utilities















                                     C-12

                                  Appendix C

OppenheimerFunds Special Sales Charge Arrangements and Waivers
--------------------------------------------------------------

In certain cases, the initial sales charge that applies to purchases of Class
A shares1 of the Oppenheimer funds or the contingent deferred sales charge
that may apply to Class A, Class B or Class C shares may be waived.2  That is
because of the economies of sales efforts realized by OppenheimerFunds
Distributor, Inc., (referred to in this document as the "Distributor"), or by
dealers or other financial institutions that offer those shares to certain
classes of investors.

Not all waivers apply to all funds. For example, waivers relating to
Retirement Plans do not apply to Oppenheimer municipal funds, because shares
of those funds are not available for purchase by or on behalf of retirement
plans. Other waivers apply only to shareholders of certain funds.

For the purposes of some of the waivers described below and in the Prospectus
and Statement of Additional Information of the applicable Oppenheimer funds,
the term "Retirement Plan" refers to the following types of plans:
         1) plans qualified under Sections 401(a) or 401(k) of the Internal
            Revenue Code,
         2) non-qualified deferred compensation plans,
         3) employee benefit plans3
         4) Group Retirement Plans4
         5) 403(b)(7) custodial plan accounts
         6) Individual Retirement Accounts ("IRAs"), including traditional
            IRAs, Roth IRAs, SEP-IRAs, SARSEPs or SIMPLE plans

The interpretation of these provisions as to the applicability of a special
arrangement or waiver in a particular case is in the sole discretion of the
Distributor or the transfer agent (referred to in this document as the
"Transfer Agent") of the particular Oppenheimer fund. These waivers and
special arrangements may be amended or terminated at any time by a particular
fund, the Distributor, and/or OppenheimerFunds, Inc. (referred to in this
document as the "Manager").

Waivers that apply at the time shares are redeemed must be requested by the
shareholder and/or dealer in the redemption request.
I.






 Applicability of Class A Contingent Deferred Sales Charges in Certain Cases
------------------------------------------------------------------------------

Purchases of Class A Shares of Oppenheimer Funds That Are Not Subject to
Initial Sales Charge but May Be Subject to the Class A Contingent Deferred
Sales Charge (unless a waiver applies).

      There is no initial sales charge on purchases of Class A shares of any
of the Oppenheimer funds in the cases listed below. However, these purchases
may be subject to the Class A contingent deferred sales charge if redeemed
within 18 months (24 months in the case of Oppenheimer Rochester National
Municipals and Rochester Fund Municipals) of the beginning of the calendar
month of their purchase, as described in the Prospectus (unless a waiver
described elsewhere in this Appendix applies to the redemption).
Additionally, on shares purchased under these waivers that are subject to the
Class A contingent deferred sales charge, the Distributor will pay the
applicable concession described in the Prospectus under "Class A Contingent
Deferred Sales Charge."5 This waiver provision applies to:
|_|   Purchases of Class A shares aggregating $1 million or more.
|_|   Purchases of Class A shares by a Retirement Plan that was permitted to
         purchase such shares at net asset value but subject to a contingent
         deferred sales charge prior to March 1, 2001. That included plans
         (other than IRA or 403(b)(7) Custodial Plans) that: 1) bought shares
         costing $500,000 or more, 2) had at the time of purchase 100 or more
         eligible employees or total plan assets of $500,000 or more, or 3)
         certified to the Distributor that it projects to have annual plan
         purchases of $200,000 or more.
|_|   Purchases by an OppenheimerFunds-sponsored Rollover IRA, if the
         purchases are made:
         1) through a broker, dealer, bank or registered investment adviser
            that has made special arrangements with the Distributor for those
            purchases, or
         2) by a direct rollover of a distribution from a qualified
            Retirement Plan if the administrator of that Plan has made
            special arrangements with the Distributor for those purchases.
|_|   Purchases of Class A shares by Retirement Plans that have any of the
         following record-keeping arrangements:
         1) The record keeping is performed by Merrill Lynch Pierce Fenner &
            Smith, Inc. ("Merrill Lynch") on a daily valuation basis for the
            Retirement Plan. On the date the plan sponsor signs the
            record-keeping service agreement with Merrill Lynch, the Plan
            must have $3 million or more of its assets invested in (a) mutual
            funds, other than those advised or managed by Merrill Lynch
            Investment Management, L.P. ("MLIM"), that are made available
            under a Service Agreement between Merrill Lynch and the mutual
            fund's principal underwriter or distributor, and  (b)  funds
            advised or managed by MLIM (the funds described in (a) and (b)
            are referred to as "Applicable Investments").
         2) The record keeping for the Retirement Plan is performed on a
            daily valuation basis by a record keeper whose services are
            provided under a contract or arrangement between the Retirement
            Plan and Merrill Lynch. On the date the plan sponsor signs the
            record keeping service agreement with Merrill Lynch, the Plan
            must have $3 million or more of its assets (excluding assets
            invested in money market funds) invested in Applicable
            Investments.
         3) The record keeping for a Retirement Plan is handled under a
            service agreement with Merrill Lynch and on the date the plan
            sponsor signs that agreement, the Plan has 500 or more eligible
            employees (as determined by the Merrill Lynch plan conversion
            manager).
II.






            Waivers of Class A Sales Charges of Oppenheimer Funds
------------------------------------------------------------------------------

A. Waivers of Initial and Contingent Deferred Sales Charges for Certain
Purchasers.

Class A shares purchased by the following investors are not subject to any
Class A sales charges (and no concessions are paid by the Distributor on such
purchases):
|_|   The Manager or its affiliates.
|_|   Present or former officers, directors, trustees and employees (and
         their "immediate families") of the Fund, the Manager and its
         affiliates, and retirement plans established by them for their
         employees. The term "immediate family" refers to one's spouse,
         children, grandchildren, grandparents, parents, parents-in-law,
         brothers and sisters, sons- and daughters-in-law, a sibling's
         spouse, a spouse's siblings, aunts, uncles, nieces and nephews;
         relatives by virtue of a remarriage (step-children, step-parents,
         etc.) are included.
|_|   Registered management investment companies, or separate accounts of
         insurance companies having an agreement with the Manager or the
         Distributor for that purpose.
|_|   Dealers or brokers that have a sales agreement with the Distributor, if
         they purchase shares for their own accounts or for retirement plans
         for their employees.
|_|   Employees and registered representatives (and their spouses) of dealers
         or brokers described above or financial institutions that have
         entered into sales arrangements with such dealers or brokers (and
         which are identified as such to the Distributor) or with the
         Distributor. The purchaser must certify to the Distributor at the
         time of purchase that the purchase is for the purchaser's own
         account (or for the benefit of such employee's spouse or minor
         children).
|_|   Dealers, brokers, banks or registered investment advisors that have
         entered into an agreement with the Distributor providing
         specifically for the use of shares of the Fund in particular
         investment products made available to their clients. Those clients
         may be charged a transaction fee by their dealer, broker, bank or
         advisor for the purchase or sale of Fund shares.
|_|   Investment advisors and financial planners who have entered into an
         agreement for this purpose with the Distributor and who charge an
         advisory, consulting or other fee for their services and buy shares
         for their own accounts or the accounts of their clients.
|_|   "Rabbi trusts" that buy shares for their own accounts, if the purchases
         are made through a broker or agent or other financial intermediary
         that has made special arrangements with the Distributor for those
         purchases.
|_|   Clients of investment advisors or financial planners (that have entered
         into an agreement for this purpose with the Distributor) who buy
         shares for their own accounts may also purchase shares without sales
         charge but only if their accounts are linked to a master account of
         their investment advisor or financial planner on the books and
         records of the broker, agent or financial intermediary with which
         the Distributor has made such special arrangements . Each of these
         investors may be charged a fee by the broker, agent or financial
         intermediary for purchasing shares.
|_|   Directors, trustees, officers or full-time employees of OpCap Advisors
         or its affiliates, their relatives or any trust, pension, profit
         sharing or other benefit plan which beneficially owns shares for
         those persons.
|_|   Accounts for which Oppenheimer Capital (or its successor) is the
         investment advisor (the Distributor must be advised of this
         arrangement) and persons who are directors or trustees of the
         company or trust which is the beneficial owner of such accounts.
|_|   A unit investment trust that has entered into an appropriate agreement
         with the Distributor.
|_|   Dealers, brokers, banks, or registered investment advisers that have
         entered into an agreement with the Distributor to sell shares to
         defined contribution employee retirement plans for which the dealer,
         broker or investment adviser provides administration services.
|_|   Retirement Plans and deferred compensation plans and trusts used to
         fund those plans (including, for example, plans qualified or created
         under sections 401(a), 401(k), 403(b) or 457 of the Internal Revenue
         Code), in each case if those purchases are made through a broker,
         agent or other financial intermediary that has made special
         arrangements with the Distributor for those purchases.
|_|   A TRAC-2000 401(k) plan (sponsored by the former Quest for Value
         Advisors) whose Class B or Class C shares of a Former Quest for
         Value Fund were exchanged for Class A shares of that Fund due to the
         termination of the Class B and Class C TRAC-2000 program on November
         24, 1995.
|_|   A qualified Retirement Plan that had agreed with the former Quest for
         Value Advisors to purchase shares of any of the Former Quest for
         Value Funds at net asset value, with such shares to be held through
         DCXchange, a sub-transfer agency mutual fund clearinghouse, if that
         arrangement was consummated and share purchases commenced by
         December 31, 1996.

B. Waivers of Initial and Contingent Deferred Sales Charges in Certain
Transactions.

Class A shares issued or purchased in the following transactions are not
subject to sales charges (and no concessions are paid by the Distributor on
such purchases):
|_|   Shares issued in plans of reorganization, such as mergers, asset
         acquisitions and exchange offers, to which the Fund is a party.
|_|   Shares purchased by the reinvestment of dividends or other
         distributions reinvested from the Fund or other Oppenheimer funds
         (other than Oppenheimer Cash Reserves) or unit investment trusts for
         which reinvestment arrangements have been made with the Distributor.
|_|   Shares purchased by the reinvestment of loan repayments by a
         participant in a Retirement Plan for which the Manager or an
         affiliate acts as sponsor.
|_|   Shares purchased in amounts of less than $5.

C. Waivers of the Class A Contingent Deferred Sales Charge for Certain
Redemptions.

The Class A contingent deferred sales charge is also waived if shares that
would otherwise be subject to the contingent deferred sales charge are
redeemed in the following cases:
|_|   To make Automatic Withdrawal Plan payments that are limited annually to
         no more than 12% of the account value adjusted annually.
|_|   Involuntary redemptions of shares by operation of law or involuntary
         redemptions of small accounts (please refer to "Shareholder Account
         Rules and Policies," in the applicable fund Prospectus).
|_|   For distributions from Retirement Plans, deferred compensation plans or
         other employee benefit plans for any of the following purposes:
         1) Following the death or disability (as defined in the Internal
            Revenue Code) of the participant or beneficiary. The death or
            disability must occur after the participant's account was
            established.
         2) To return excess contributions.
         3) To return contributions made due to a mistake of fact.
4)    Hardship withdrawals, as defined in the plan.6
         5) Under a Qualified Domestic Relations Order, as defined in the
            Internal Revenue Code, or, in the case of an IRA, a divorce or
            separation agreement described in Section 71(b) of the Internal
            Revenue Code.
         6) To meet the minimum distribution requirements of the Internal
            Revenue Code.
         7) To make "substantially equal periodic payments" as described in
            Section 72(t) of the Internal Revenue Code.
         8) For loans to participants or beneficiaries.
         9) Separation from service.7
         10)      Participant-directed redemptions to purchase shares of a
            mutual fund (other than a fund managed by the Manager or a
            subsidiary of the Manager) if the plan has made special
            arrangements with the Distributor.
         11)      Plan termination or "in-service distributions," if the
            redemption proceeds are rolled over directly to an
            OppenheimerFunds-sponsored IRA.
|_|   For distributions from 401(k) plans sponsored by broker-dealers that
         have entered into a special agreement with the Distributor allowing
         this waiver.
|_|   For distributions from retirement plans that have $10 million or more
         in plan assets and that have entered into a special agreement with
         the Distributor.
|_|   For distributions from retirement plans which are part of a retirement
         plan product or platform offered by certain banks, broker-dealers,
         financial advisors, insurance companies or record keepers which have
         entered into a special agreement with the Distributor.
III.    Waivers of Class B, Class C and Class N Sales Charges of Oppenheimer
                                         Funds
---------------------------------------------------------------------------------

The Class B, Class C and Class N contingent deferred sales charges will not
be applied to shares purchased in certain types of transactions or redeemed
in certain circumstances described below.

A. Waivers for Redemptions in Certain Cases.

The Class B, Class C and Class N contingent deferred sales charges will be
waived for redemptions of shares in the following cases:
|_|   Shares redeemed involuntarily, as described in "Shareholder Account
         Rules and Policies," in the applicable Prospectus.
|_|   Redemptions from accounts other than Retirement Plans following the
         death or disability of the last surviving shareholder. The death or
         disability must have occurred after the account was established, and
         for disability you must provide evidence of a determination of
         disability by the Social Security Administration.
|_|   The contingent deferred sales charges are generally not waived
         following the death or disability of a grantor or trustee for a
         trust account. The contingent deferred sales charges will only be
         waived in the limited case of the death of the trustee of a grantor
         trust or revocable living trust for which the trustee is also the
         sole beneficiary. The death or disability must have occurred after
         the account was established, and for disability you must provide
         evidence of a determination of disability by the Social Security
         Administration.
|_|   Distributions from accounts for which the broker-dealer of record has
         entered into a special agreement with the Distributor allowing this
         waiver.
|_|   Redemptions of Class B shares held by Retirement Plans whose records
         are maintained on a daily valuation basis by Merrill Lynch or an
         independent record keeper under a contract with Merrill Lynch.
|_|   Redemptions of Class C shares of Oppenheimer U.S. Government Trust from
         accounts of clients of financial institutions that have entered into
         a special arrangement with the Distributor for this purpose.
|_|   Redemptions of Class C shares of an Oppenheimer fund in amounts of $1
         million or more requested in writing by a Retirement Plan sponsor
         and submitted more than 12 months after the Retirement Plan's first
         purchase of Class C shares, if the redemption proceeds are invested
         to purchase Class N shares of one or more Oppenheimer funds.
|_|   Distributions8 from Retirement Plans or other employee benefit plans
         for any of the following purposes:
         1) Following the death or disability (as defined in the Internal
            Revenue Code) of the participant or beneficiary. The death or
            disability must occur after the participant's account was
            established in an Oppenheimer fund.
         2) To return excess contributions made to a participant's account.
         3) To return contributions made due to a mistake of fact.
         4) To make hardship withdrawals, as defined in the plan.9
         5) To make distributions required under a Qualified Domestic
            Relations Order or, in the case of an IRA, a divorce or
            separation agreement described in Section 71(b) of the Internal
            Revenue Code.
         6) To meet the minimum distribution requirements of the Internal
            Revenue Code.
         7) To make "substantially equal periodic payments" as described in
            Section 72(t) of the Internal Revenue Code.
         8) For loans to participants or beneficiaries.10
         9) On account of the participant's separation from service.11
         10)      Participant-directed redemptions to purchase shares of a
            mutual fund (other than a fund managed by the Manager or a
            subsidiary of the Manager) offered as an investment option in a
            Retirement Plan if the plan has made special arrangements with
            the Distributor.
         11)      Distributions made on account of a plan termination or
            "in-service" distributions, if the redemption proceeds are rolled
            over directly to an OppenheimerFunds-sponsored IRA.
         12)      For distributions from a participant's account under an
            Automatic Withdrawal Plan after the participant reaches age 59 1/2,
            as long as the aggregate value of the distributions does not
            exceed 10% of the account's value, adjusted annually.
         13)      Redemptions of Class B shares under an Automatic Withdrawal
            Plan for an account other than a Retirement Plan, if the
            aggregate value of the redeemed shares does not exceed 10% of the
            account's value, adjusted annually.
         14)      For distributions from 401(k) plans sponsored by
            broker-dealers that have entered into a special arrangement with
            the Distributor allowing this waiver.
|_|   Redemptions of Class B shares or Class C shares under an Automatic
         Withdrawal Plan from an account other than a Retirement Plan if the
         aggregate value of the redeemed shares does not exceed 10% of the
         account's value annually.

B. Waivers for Shares Sold or Issued in Certain Transactions.

The contingent deferred sales charge is also waived on Class B and Class C
shares sold or issued in the following cases:
|_|   Shares sold to the Manager or its affiliates.
|_|   Shares sold to registered management investment companies or separate
         accounts of insurance companies having an agreement with the Manager
         or the Distributor for that purpose.
|_|   Shares issued in plans of reorganization to which the Fund is a party.
|_|   Shares sold to present or former officers, directors, trustees or
         employees (and their "immediate families" as defined above in
         Section I.A.) of the Fund, the Manager and its affiliates and
         retirement plans established by them for their employees.
IV.






   Special Sales Charge Arrangements for Shareholders of Certain Oppenheimer
           Funds Who Were Shareholders of Former Quest for Value Funds
-------------------------------------------------------------------------------

The initial and contingent deferred sales charge rates and waivers for Class
A, Class B and Class C shares described in the Prospectus or Statement of
Additional Information of the Oppenheimer funds are modified as described
below for certain persons who were shareholders of the former Quest for Value
Funds.  To be eligible, those persons must have been shareholders on November
24, 1995, when OppenheimerFunds, Inc. became the investment advisor to those
former Quest for Value Funds.  Those funds include:
   Oppenheimer Quest Value Fund, Inc.           Oppenheimer Small Cap Value
   Fund
   Oppenheimer Quest Balanced Fund              Oppenheimer Quest
   International Value Fund, Inc.
   Oppenheimer Quest Opportunity Value Fund

      These arrangements also apply to shareholders of the following funds
when they merged (were reorganized) into various Oppenheimer funds on
November 24, 1995:

   Quest for Value U.S. Government Income Fund  Quest for Value New York
   Tax-Exempt Fund
   Quest for Value Investment Quality Income Fund     Quest for Value
   National Tax-Exempt Fund
   Quest for Value Global Income Fund     Quest for Value California
   Tax-Exempt Fund

      All of the funds listed above are referred to in this Appendix as the
"Former Quest for Value Funds."  The waivers of initial and contingent
deferred sales charges described in this Appendix apply to shares of an
Oppenheimer fund that are either:
|_|   acquired by such shareholder pursuant to an exchange of shares of an
         Oppenheimer fund that was one of the Former Quest for Value Funds,
         or
|_|   purchased by such shareholder by exchange of shares of another
         Oppenheimer fund that were acquired pursuant to the merger of any of
         the Former Quest for Value Funds into that other Oppenheimer fund on
         November 24, 1995.

A. Reductions or Waivers of Class A Sales Charges.

|X|   Reduced Class A Initial Sales Charge Rates for Certain Former Quest for
Value Funds Shareholders.

Purchases by Groups and Associations.  The following table sets forth the
initial sales charge rates for Class A shares purchased by members of
"Associations" formed for any purpose other than the purchase of securities.
The rates in the table apply if that Association purchased shares of any of
the Former Quest for Value Funds or received a proposal to purchase such
shares from OCC Distributors prior to November 24, 1995.

--------------------------------------------------------------------------------
                      Initial Sales       Initial Sales Charge   Concession as
Number of Eligible    Charge as a % of    as a % of Net Amount   % of Offering
Employees or Members  Offering Price      Invested               Price
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9 or Fewer                   2.50%                2.56%              2.00%
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
At  least  10 but not        2.00%                2.04%              1.60%
more than 49
--------------------------------------------------------------------------------

------------------------------------------------------------------------------
      For purchases by Associations having 50 or more eligible employees or
members, there is no initial sales charge on purchases of Class A shares, but
those shares are subject to the Class A contingent deferred sales charge
described in the applicable fund's Prospectus.







      Purchases made under this arrangement qualify for the lower of either
the sales charge rate in the table based on the number of members of an
Association, or the sales charge rate that applies under the Right of
Accumulation described in the applicable fund's Prospectus and Statement of
Additional Information. Individuals who qualify under this arrangement for
reduced sales charge rates as members of Associations also may purchase
shares for their individual or custodial accounts at these reduced sales
charge rates, upon request to the Distributor.

|X|   Waiver of Class A Sales Charges for Certain Shareholders.  Class A
shares purchased by the following investors are not subject to any Class A
initial or contingent deferred sales charges:
o     Shareholders who were shareholders of the AMA Family of Funds on
            February 28, 1991 and who acquired shares of any of the Former
            Quest for Value Funds by merger of a portfolio of the AMA Family
            of Funds.
o     Shareholders who acquired shares of any Former Quest for Value Fund by
            merger of any of the portfolios of the Unified Funds.

|X|   Waiver of Class A Contingent Deferred Sales Charge in Certain
Transactions.  The Class A contingent deferred sales charge will not apply to
redemptions of Class A shares purchased by the following investors who were
shareholders of any Former Quest for Value Fund:

      Investors who purchased Class A shares from a dealer that is or was not
permitted to receive a sales load or redemption fee imposed on a shareholder
with whom that dealer has a fiduciary relationship, under the Employee
Retirement Income Security Act of 1974 and regulations adopted under that law.

B. Class A, Class B and Class C Contingent Deferred Sales Charge Waivers.

|X|   Waivers for Redemptions of Shares Purchased Prior to March 6, 1995.  In
the following cases, the contingent deferred sales charge will be waived for
redemptions of Class A, Class B or Class C shares of an Oppenheimer fund. The
shares must have been acquired by the merger of a Former Quest for Value Fund
into the fund or by exchange from an Oppenheimer fund that was a Former Quest
for Value Fund or into which such fund merged. Those shares must have been
purchased prior to March 6, 1995 in connection with:
o     withdrawals under an automatic withdrawal plan holding only either
            Class B or Class C shares if the annual withdrawal does not
            exceed 10% of the initial value of the account value, adjusted
            annually, and
o     liquidation of a shareholder's account if the aggregate net asset value
            of shares held in the account is less than the required minimum
            value of such accounts.

|X|   Waivers for Redemptions of Shares Purchased on or After March 6, 1995
but Prior to November 24, 1995. In the following cases, the contingent
deferred sales charge will be waived for redemptions of Class A, Class B or
Class C shares of an Oppenheimer fund. The shares must have been acquired by
the merger of a Former Quest for Value Fund into the fund or by exchange from
an Oppenheimer fund that was a Former Quest For Value Fund or into which such
Former Quest for Value Fund merged. Those shares must have been purchased on
or after March 6, 1995, but prior to November 24, 1995:
o     redemptions following the death or disability of the shareholder(s) (as
            evidenced by a determination of total disability by the U.S.
            Social Security Administration);
o     withdrawals under an automatic withdrawal plan (but only for Class B or
            Class C shares) where the annual withdrawals do not exceed 10% of
            the initial value of the account value; adjusted annually, and
o     liquidation of a shareholder's account if the aggregate net asset value
            of shares held in the account is less than the required minimum
            account value.
      A shareholder's account will be credited with the amount of any
contingent deferred sales charge paid on the redemption of any Class A, Class
B or Class C shares of the Oppenheimer fund described in this section if the
proceeds are invested in the same Class of shares in that fund or another
Oppenheimer fund within 90 days after redemption.
V.         Special Sales Charge Arrangements for Shareholders of Certain
          Oppenheimer Funds Who Were Shareholders of Connecticut Mutual
                            Investment Accounts, Inc.
---------------------------------------------------------------------------

The initial and contingent deferred sale charge rates and waivers for Class A
and Class B shares described in the respective Prospectus (or this Appendix)
of the following Oppenheimer funds (each is referred to as a "Fund" in this
section):
   Oppenheimer U. S. Government Trust,
   Oppenheimer Bond Fund,
   Oppenheimer Value Fund and
   Oppenheimer Disciplined Allocation Fund
are modified as described below for those Fund shareholders who were
shareholders of the following funds (referred to as the "Former Connecticut
Mutual Funds") on March 1, 1996, when OppenheimerFunds, Inc. became the
investment adviser to the Former Connecticut Mutual Funds:
   Connecticut Mutual Liquid Account         Connecticut Mutual Total Return
   Account
   Connecticut Mutual Government Securities Account   CMIA LifeSpan Capital
   Appreciation Account
   Connecticut Mutual Income Account         CMIA LifeSpan Balanced Account
   Connecticut Mutual Growth Account         CMIA Diversified Income Account

A. Prior Class A CDSC and Class A Sales Charge Waivers.

|X|   Class A Contingent Deferred Sales Charge. Certain shareholders of a
Fund and the other Former Connecticut Mutual Funds are entitled to continue
to make additional purchases of Class A shares at net asset value without a
Class A initial sales charge, but subject to the Class A contingent deferred
sales charge that was in effect prior to March 18, 1996 (the "prior Class A
CDSC"). Under the prior Class A CDSC, if any of those shares are redeemed
within one year of purchase, they will be assessed a 1% contingent deferred
sales charge on an amount equal to the current market value or the original
purchase price of the shares sold, whichever is smaller (in such redemptions,
any shares not subject to the prior Class A CDSC will be redeemed first).

      Those shareholders who are eligible for the prior Class A CDSC are:
         1) persons whose purchases of Class A shares of a Fund and other
            Former Connecticut Mutual Funds were $500,000 prior to March 18,
            1996, as a result of direct purchases or purchases pursuant to
            the Fund's policies on Combined Purchases or Rights of
            Accumulation, who still hold those shares in that Fund or other
            Former Connecticut Mutual Funds, and
         2) persons whose intended purchases under a Statement of Intention
            entered into prior to March 18, 1996, with the former general
            distributor of the Former Connecticut Mutual Funds to purchase
            shares valued at $500,000 or more over a 13-month period entitled
            those persons to purchase shares at net asset value without being
            subject to the Class A initial sales charge

      Any of the Class A shares of a Fund and the other Former Connecticut
Mutual Funds that were purchased at net asset value prior to March 18, 1996,
remain subject to the prior Class A CDSC, or if any additional shares are
purchased by those shareholders at net asset value pursuant to this
arrangement they will be subject to the prior Class A CDSC.

|X|





      Class A Sales Charge Waivers. Additional Class A shares of a Fund may
be purchased without a sales charge, by a person who was in one (or more) of
the categories below and acquired Class A shares prior to March 18, 1996, and
still holds Class A shares:
         1) any purchaser, provided the total initial amount invested in the
            Fund or any one or more of the Former Connecticut Mutual Funds
            totaled $500,000 or more, including investments made pursuant to
            the Combined Purchases, Statement of Intention and Rights of
            Accumulation features available at the time of the initial
            purchase and such investment is still held in one or more of the
            Former Connecticut Mutual Funds or a Fund into which such Fund
            merged;
         2) any participant in a qualified plan, provided that the total
            initial amount invested by the plan in the Fund or any one or
            more of the Former Connecticut Mutual Funds totaled $500,000 or
            more;
         3) Directors of the Fund or any one or more of the Former
            Connecticut Mutual Funds and members of their immediate families;
         4) employee benefit plans sponsored by Connecticut Mutual Financial
            Services, L.L.C. ("CMFS"), the prior distributor of the Former
            Connecticut Mutual Funds, and its affiliated companies;
         5) one or more members of a group of at least 1,000 persons (and
            persons who are retirees from such group) engaged in a common
            business, profession, civic or charitable endeavor or other
            activity, and the spouses and minor dependent children of such
            persons, pursuant to a marketing program between CMFS and such
            group; and
         6) an institution acting as a fiduciary on behalf of an individual
            or individuals, if such institution was directly compensated by
            the individual(s) for recommending the purchase of the shares of
            the Fund or any one or more of the Former Connecticut Mutual
            Funds, provided the institution had an agreement with CMFS.

      Purchases of Class A shares made pursuant to (1) and (2) above may be
subject to the Class A CDSC of the Former Connecticut Mutual Funds described
above.

      Additionally, Class A shares of a Fund may be purchased without a sales
charge by any holder of a variable annuity contract issued in New York State
by Connecticut Mutual Life Insurance Company through the Panorama Separate
Account which is beyond the applicable surrender charge period and which was
used to fund a qualified plan, if that holder exchanges the variable annuity
contract proceeds to buy Class A shares of the Fund.

B. Class A and Class B Contingent Deferred Sales Charge Waivers.

In addition to the waivers set forth in the Prospectus and in this Appendix,
above, the contingent deferred sales charge will be waived for redemptions of
Class A and Class B shares of a Fund and exchanges of Class A or Class B
shares of a Fund into Class A or Class B shares of a Former Connecticut
Mutual Fund provided that the Class A or Class B shares of the Fund to be
redeemed or exchanged were (i) acquired prior to March 18, 1996 or (ii) were
acquired by exchange from an Oppenheimer fund that was a Former Connecticut
Mutual Fund. Additionally, the shares of such Former Connecticut Mutual Fund
must have been purchased prior to March 18, 1996:
   1) by the estate of a deceased shareholder;
   2) upon the disability of a shareholder, as defined in Section 72(m)(7) of
      the Internal Revenue Code;
   3) for retirement distributions (or loans) to participants or
      beneficiaries from retirement plans qualified under Sections 401(a) or
      403(b)(7)of the Code, or from IRAs, deferred compensation plans created
      under Section 457 of the Code, or other employee benefit plans;
4)    as tax-free returns of excess contributions to such retirement or
      employee benefit plans;
   5) in whole or in part, in connection with shares sold to any state,
      county, or city, or any instrumentality, department, authority, or
      agency thereof, that is prohibited by applicable investment laws from
      paying a sales charge or concession in connection with the purchase of
      shares of any registered investment management company;
   6) in connection with the redemption of shares of the Fund due to a
      combination with another investment company by virtue of a merger,
      acquisition or similar reorganization transaction;
   7) in connection with the Fund's right to involuntarily redeem or
      liquidate the Fund;
   8) in connection with automatic redemptions of Class A shares and Class B
      shares in certain retirement plan accounts pursuant to an Automatic
      Withdrawal Plan but limited to no more than 12% of the original value
      annually; or
   9) as involuntary redemptions of shares by operation of law, or under
      procedures set forth in the Fund's Articles of Incorporation, or as
      adopted by the Board of Directors of the Fund.
VI.       Special Reduced Sales Charge for Former Shareholders of Advance
                                America Funds, Inc.
------------------------------------------------------------------------------

Shareholders of Oppenheimer AMT-Free Municipals, Oppenheimer U.S. Government
Trust, Oppenheimer Strategic Income Fund and Oppenheimer Capital Income Fund
who acquired (and still hold) shares of those funds as a result of the
reorganization of series of Advance America Funds, Inc. into those
Oppenheimer funds on October 18, 1991, and who held shares of Advance America
Funds, Inc. on March 30, 1990, may purchase Class A shares of those four
Oppenheimer funds at a maximum sales charge rate of 4.50%.
VII.     Sales Charge Waivers on Purchases of Class M Shares of Oppenheimer
                            Convertible Securities Fund
------------------------------------------------------------------------------

Oppenheimer Convertible Securities Fund (referred to as the "Fund" in this
section) may sell Class M shares at net asset value without any initial sales
charge to the classes of investors listed below who, prior to March 11, 1996,
owned shares of the Fund's then-existing Class A and were permitted to
purchase those shares at net asset value without sales charge:
|_|   the Manager and its affiliates,
|_|   present or former officers, directors, trustees and employees (and
         their "immediate families" as defined in the Fund's Statement of
         Additional Information) of the Fund, the Manager and its affiliates,
         and retirement plans established by them or the prior investment
         advisor of the Fund for their employees,
|_|   registered management investment companies or separate accounts of
         insurance companies that had an agreement with the Fund's prior
         investment advisor or distributor for that purpose,
|_|   dealers or brokers that have a sales agreement with the Distributor, if
         they purchase shares for their own accounts or for retirement plans
         for their employees,
|_|   employees and registered representatives (and their spouses) of dealers
         or brokers described in the preceding section or financial
         institutions that have entered into sales arrangements with those
         dealers or brokers (and whose identity is made known to the
         Distributor) or with the Distributor, but only if the purchaser
         certifies to the Distributor at the time of purchase that the
         purchaser meets these qualifications,
|_|   dealers, brokers, or registered investment advisors that had entered
         into an agreement with the Distributor or the prior distributor of
         the Fund specifically providing for the use of Class M shares of the
         Fund in specific investment products made available to their
         clients, and
|_|   dealers, brokers or registered investment advisors that had entered
         into an agreement with the Distributor or prior distributor of the
         Fund's shares to sell shares to defined contribution employee
         retirement plans for which the dealer, broker, or investment advisor
         provides administrative services.









Rochester Fund Municipals

Internet Website
     www.oppenheimerfunds.com
     ------------------------

Investment Advisor
      OppenheimerFunds, Inc.
      Two World Financial Center
      225 Liberty Street, 11th Floor
      New York, New York 10281-1008

Distributor
      OppenheimerFunds Distributor, Inc.
      Two World Financial Center
      225 Liberty Street, 11th Floor
      New York, New York 10281-1008

Transfer Agent
     OppenheimerFunds Services
     P.O. Box 5270
     Denver, Colorado 80217
     1.800.CALLOPP(225.5677)

Custodian Bank
     Citibank, N.A.
     111 Wall Street
     New York, New York 10005

Independent Registered Public Accounting Firm
     KPMG LLP
     707 Seventeenth Street
     Denver, Colorado 80202

Legal Counsel
     Mayer, Brown, Rowe & Maw LLP
     1675 Broadway
     New York, New York 10019

1234
PX0365.001.0405


--------
1 In accordance with Rule 12b-1 of the Investment Company Act, the term
"Independent Trustees" in this Statement of Additional Information refers to
those Trustees who are not "interested persons" of the Fund and who do not
have any direct or indirect financial interest in the operation of the
distribution plan or any agreement under the plan.
1 Certain waivers also apply to Class M shares of Oppenheimer Convertible
Securities Fund.
2 In the case of Oppenheimer Senior Floating Rate Fund, a
continuously-offered closed-end fund, references to contingent deferred sales
charges mean the Fund's Early Withdrawal Charges and references to
"redemptions" mean "repurchases" of shares.
3 An "employee benefit plan" means any plan or arrangement, whether or not it
is "qualified" under the Internal Revenue Code, under which Class N shares of
an Oppenheimer fund or funds are purchased by a fiduciary or other
administrator for the account of participants who are employees of a single
employer or of affiliated employers. These may include, for example, medical
savings accounts, payroll deduction plans or similar plans. The fund accounts
must be registered in the name of the fiduciary or administrator purchasing
the shares for the benefit of participants in the plan.
4 The term "Group Retirement Plan" means any qualified or non-qualified
retirement plan for employees of a corporation or sole proprietorship,
members and employees of a partnership or association or other organized
group of persons (the members of which may include other groups), if the
group has made special arrangements with the Distributor and all members of
the group participating in (or who are eligible to participate in) the plan
purchase shares of an Oppenheimer fund or funds through a single investment
dealer, broker or other financial institution designated by the group. Such
plans include 457 plans, SEP-IRAs, SARSEPs, SIMPLE plans and 403(b) plans
other than plans for public school employees. The term "Group Retirement
Plan" also includes qualified retirement plans and non-qualified deferred
compensation plans and IRAs that purchase shares of an Oppenheimer fund or
funds through a single investment dealer, broker or other financial
institution that has made special arrangements with the Distributor.
5 However, that concession will not be paid on purchases of shares in amounts
of $1 million or more (including any right of accumulation) by a Retirement
Plan that pays for the purchase with the redemption proceeds of Class C
shares of one or more Oppenheimer funds held by the Plan for more than one
year.
6 This provision does not apply to IRAs.
7 This provision only applies to qualified retirement plans and 403(b)(7)
custodial plans after your separation from service in or after the year you
reached age 55.
8 The distribution must be requested prior to Plan termination or the
elimination of the Oppenheimer funds as an investment option under the Plan.
9 This provision does not apply to IRAs.
10 This provision does not apply to loans from 403(b)(7) custodial plans and
loans from the OppenheimerFunds-sponsored Single K retirement plan.
11 This provision does not apply to 403(b)(7) custodial plans if the
participant is less than age 55, nor to IRAs.

                          ROCHESTER FUND MUNICIPALS

                                  FORM N-1A

                                    PART C

                              OTHER INFORMATION



Item 23. Exhibits
-----------------

(a)   (i)   Amended and Restated Agreement and Declaration of Trust dated
      1/26/95: Previously filed with Registrant's Post Effective Amendment
      No. 16 filed 1/11/96, and incorporated herein by reference.

(ii)  Amendment dated 11/1/95 to the Amended and Restated Agreement and
      Declaration of Trust dated 1/26/95: Previously filed with Registrant's
      Post Effective Amendment No. 16 filed 1/11/96, and incorporated herein
      by reference.

(iii) Amendment dated 6/17/97 to the Amended and Restated Agreement and
      Declaration of Trust dated 1/26/95: Previously filed with Registrant's
      Post Effective Amendment No. 22 filed 4/30/99, and incorporated herein
      by reference.

(iv)  Amendment dated 6/10/98 to the Amended and Restated Agreement and
      Declaration of Trust dated 1/26/95: Previously filed with Registrant's
      Post Effective Amendment No. 22 filed 4/30/99, and incorporated herein
      by reference.

(v)   Amendment No. 4 dated 6/10/02 to the Amended and Restated Agreement and
      Declaration of Trust dated 1/26/95: Previously filed with registrant's
      Post Effective Amendment No. 27 filed 2/24/03, and incorporated herein
      by reference.

(b)   (i)   Bylaws: Previously filed with Registrant's Post Effective
      Amendment No. 13 filed 5/1/93, and incorporated herein by reference.

      (ii)  Amendment No. 1 to By-laws dated 7/22/98: Previously filed with
       Registrant's Post Effective Amendment No. 24 filed 4/27/00 and
       incorporated by reference.

(c)   (i)   Class A Specimen Share Certificate: Previously filed with
      Registrant's Post Effective Amendment No. 26 filed 4/29/02, and
      incorporated herein by reference.

      (ii)  Class B Specimen Share Certificate: Previously filed with
      Registrant's Post Effective Amendment No. 26 filed 4/29/02, and
      incorporated herein by reference.

      (iii) Class C Specimen Share Certificate: Previously filed with
      Registrant's Post Effective Amendment No. 26 filed 4/29/02, and
      incorporated herein by reference.

      (iv)  Class Y Specimen Share Certificate: Previously filed with
      Registrant's Post Effective Amendment No. 26 filed 4/29/02, and
      incorporated herein by reference.


(d)   Amended and Restated Investment Advisory Agreement dated 1/1/05 with
      OppenheimerFunds, Inc.: Previously filed with Registrant's
      Post-Effective Amendment No. 29 filed 2/25/05, and incorporated herein
      by reference.


(e)   (i)   General Distributor's Agreement dated 1/4/96 with Oppenheimer
      Funds Distributor, Inc.: Filed with Registrant's Post Effective
      Amendment No. 16 filed 1/11/96, and incorporated herein by reference.

      (ii)  Form of Dealer Agreement of OppenheimerFunds Distributor, Inc.:
      Previously filed with Post-Effective Amendment No. 45 to the
      Registration Statement of Oppenheimer High Yield Fund (Reg. No.
      2-62076), 10/26/01, and incorporated herein by reference.

      (iii) Form of Broker Agreement of OppenheimerFunds Distributor, Inc.:
      Previously filed with Post-Effective Amendment No. 45 to the
      Registration Statement of Oppenheimer High Yield Fund (Reg. No.
      2-62076), 10/26/01, and incorporated herein by reference.

      (iv)  Form of Agency Agreement of OppenheimerFunds Distributor, Inc.:
      Previously filed with Post-Effective Amendment No. 45 to the
      Registration Statement of Oppenheimer High Yield Fund (Reg. No.
      2-62076), 10/26/01, and incorporated herein by reference.

      (v)   Form of Trust Company Fund/SERV Purchase Agreement of
      OppenheimerFunds Distributor, Inc.: Previously filed with
      Post-Effective Amendment No. 45 to the Registration Statement of
      Oppenheimer High Yield Fund (Reg. No. 2-62076), 10/26/01, and
      incorporated herein by reference.

      (vi)  Form of Trust Company Agency Agreement of OppenheimerFunds
      Distributor, Inc.: Previously filed with Post-Effective Amendment No.
      45 to the Registration Statement of Oppenheimer High Yield Fund (Reg.
      No. 2-62076), 10/26/01, and incorporated herein by reference.

(f)   (i)   Form of Deferred Compensation Plan for Disinterested
      Trustees/Directors: Previously filed with Post-Effective Amendment No.
      43 to the Registration Statement of Oppenheimer Quest For Value Funds
      (Reg. No. 33-15489), 12/21/98, and incorporated herein by reference.

(g)   (i) Global Custodial Services Agreement dated July 15, 2003, between
      Registrant and Citibank, N.A.: Previously filed with the Pre-Effective
      Amendment No. 1 to the Registration Statement of Oppenheimer
      International Large-Cap Core Trust (Reg. No. 333-106014), 8/5/03, and
      incorporated herein by reference.

      (ii) Amended and Restated Foreign Custody Manager Agreement dated May
      31, 2001, as amended July 15, 2003, between Registrant and Citibank,
      N.A: Previously filed with the Pre-Effective Amendment No. 1 to the
      Registration Statement of Oppenheimer International Large-Cap Core
      Trust (Reg. No. 333-106014), 8/5/03, and incorporated herein by
      reference.


(h)   Not applicable.

(i)   Opinion and Consent of Counsel: Incorporated herein by reference to the
      Registrant's Rule 24f-2 Notice filed on 2/27/97.


(j)   Independent Registered Public Accounting Firm's Consent: Filed herewith.


(k)   Not applicable.

(l)   (i)   Form of Investment Letter regarding Class B shares from
      OppenheimerFunds, Inc.: Previously filed with Registrant's
      Post-Effective Amendment No. 19 filed 3/16/97, and incorporated herein
      by reference.

(ii)  Form of Investment Letter regarding Class C shares from
      OppenheimerFunds, Inc.: Previously filed with Registrant's
      Post-Effective Amendment No. 19 filed 3/16/97, and incorporated herein
      by reference.


(m)   (i)   Amended and Restated Service Plan and Agreement with Oppenheimer
      Funds Distributor, Inc. for Class A Shares dated 4/5/04: Previously
      filed with Registrant's Post-Effective Amendment No. 29 filed 2/25/02,
      and incorporated herein by reference.


      (ii)  Amended and Restated Distribution and Service Plan and Agreement
      for Class B Shares dated 2/3/98 under Rule 12b-1 of the Investment
      Company Act of 1940: Previously filed with Registration's
      Post-Effective Amendment No. 20, 3/31/98, and incorporated herein by
      reference.


      (iii) Amended and Restated Distribution and Service Plan and Agreement
      for Class C Shares dated 2/18/04 under Rule 12b-1 of the Investment
      Company Act of 1940: Filed herewith.


(n)   Oppenheimer Funds Multiple Class Plan under Rule 18f-3 updated through
      10/22/03: Previously filed with Post-Effective Amendment No. 11 to the
      Registration Statement of Oppenheimer Senior Floating Rate Fund (Reg.
      No. 333-82579), 11/17/03, and incorporated herein by reference.


(o)   (i) Powers of Attorney for John Murphy, Brian Wixted and all
      Trustees/Directors except John Cannon: Previously filed with
      Post-Effective Amendment No. 29 to the Registration Statement of
      Oppenheimer Convertible Securities Fund (Reg. No. 33-3076), 4/25/05,
      and incorporated herein by reference.

      (ii) Power of Attorney for John Cannon: Previously filed with
      Post-Effective Amendment No. 29 to the Registration Statement of
      Oppenheimer Convertible Securities Fund (Reg. No. 33-3076), 4/25/05,
      and incorporated herein by reference.


(p)   Amended and Restated Code of Ethics of the Oppenheimer Funds dated
      February 1, 2005 under Rule 17j-1 of the Investment Company Act of
      1940: Previously filed with the Initial Registration Statement of
      Oppenheimer Dividend Growth Fund (Reg. No. 333-122902), 2/18/05, and
      incorporated herein by reference.

Item 24.    Persons Controlled by or under Common Control with Registrant
--------    -------------------------------------------------------------

None.

Item 25.    Indemnification
--------    ---------------

      Registrant's  Amended and Restated  Agreement and  Declaration  of Trust
(the "Declaration of Trust"),  which is referenced  herein,  (see Item 23(a)),
contains certain  provisions  relating to the  indemnification of Registrant's
officers  and  trustees.  Section  6.4 of  Registrant's  Declaration  of Trust
provides  that  Registrant  shall  indemnify  (from the  assets of the Fund or
Funds in question)  each of its trustees and officers  (including  persons who
served at Registrant's  request as directors,  officers or trustees of another
organization in which  Registrant has any interest as a shareholder,  creditor
or  otherwise  hereinafter  referred  to as a "Covered  Person")  against  all
liabilities,  including but not limited to, amounts paid for  satisfaction  of
judgments,  in compromise or as fines and penalties,  and expenses,  including
reasonable  accountants'  and counsel fees,  incurred by any Covered Person in
connection  with the  defense  or  disposition  of any  action,  suit or other
proceeding,  whether civil or criminal,  before any court or administrative or
legislative  body,  in which  such  Covered  Person  may be or may  have  been
involved as a party or  otherwise or with which such person may be or may have
been threatened,  while in office or thereafter,  by reason of being or having
been such a trustee or officer,  director or trustee,  except with  respect to
any matter as to which it has been determined in one of the manners  described
below,  that  such  Covered  Person  (i)  did not  act in  good  faith  in the
reasonable  belief that such Covered  Person's action was in or not opposed to
the best interest of  Registrant  or (ii) had acted with willful  misfeasance,
bad faith,  gross negligence,  or reckless disregard of the duties involved in
the  conduct  described  in (i)  and  (ii)  being  referred  to  hereafter  as
"Disabling Conduct".

      Section 6.4 provides that a  determination  that the Covered Conduct may
be made by (i) a final  decision on the merits by a court or other body before
whom the  proceeding  was brought  that the person to be  indemnified  was not
liable by reason of Disabling Conduct,  (ii) dismissal of a court action or an
administrative  proceeding  against  a Covered  Person  for  insufficiency  of
evidence of  Disabling  Conduct,  or (iii) a reasonable  determination,  based
upon a review of the  facts,  that the  indemnity  was not liable by reason of
Disabling  Conduct by (a) a vote of a majority of a quorum of trustees who are
neither  "interested  persons" of Registrant as defined in Section 2(a)(19) of
the  1940 Act nor  parties  to the  proceeding,  or (b) an  independent  legal
counsel in a written opinion.

      In addition, Section 6.4 provides that expenses,  including accountants'
and  counsel  fees so  incurred  by any such  Covered  Person  (but  excluding
amounts  paid in  satisfaction  of  judgments,  in  compromise  or as fines or
penalties),  may be paid from time to time in advance of the final disposition
of any such  action,  suit or  proceeding,  provided  that the Covered  Person
shall  have  undertaken  to repay  the  amounts  so paid to the  Sub-trust  in
question if it is ultimately  determined that indemnification of such expenses
is not  authorized  under  Article 6 and (i) the  Covered  Person  shall  have
provided  security  for such  undertaking,  (ii)  Registrant  shall be insured
against losses arising by reason of any lawful  advances,  or (iii) a majority
of a quorum of  disinterested  trustees who are not a party to the proceeding,
by an independent  legal counsel in a written opinion,  based upon a review of
readily available facts (as opposed to a full trial-type inquiry),  that there
is  reason  to  believe  that  the  Covered  Person  ultimately  will be found
entitled to indemnification.

      Section  6.1  of   Registrant's   Agreement  and  Declaration  of  Trust
provides,  among other things,  that nothing in the Agreement and  Declaration
of Trust  shall  protect  any  trustee or officer  against  any  liability  to
Registrant  or the  shareholders  to  which  such  trustee  or  officer  would
otherwise  be  subject  by reason of willful  misfeasance,  bad  faith,  gross
negligence or reckless  disregard of the duties involved in the conduct of the
office of trustee or such officer.

      Insofar as  indemnification  for liability  arising under the Securities
Act of 1933 may be permitted to trustees,  officers and controlling persons of
the  Registrant  pursuant  to the  foregoing  provisions,  or  otherwise,  the
Registrant  has  been  advised  that  in the  opinion  of the  Securities  and
Exchange   Commission  such   indemnification  is  against  public  policy  as
expressed  in the Act and is,  therefore,  unenforceable.  In the event that a
claim for indemnification  against such liabilities (other than the payment by
the  Registrant  of  expenses  incurred  or  paid  by a  trustee,  officer  or
controlling  person of the Registrant in the successful defense of any action,
suit or  proceeding)  is asserted  by such  director,  officer or  controlling
person in connection  with the  securities  being  registered,  the Registrant
will,  unless in the  opinion of its  counsel  the matter has been  settled by
controlling  precedent,  submit  to a court of  appropriate  jurisdiction  the
question  whether  such  indemnification  by it is  against  public  policy as
expressed  in the Act and will be governed by the final  adjudication  of such
issue.

Item 26.   Business and Other Connections of Investment Adviser
-------    ----------------------------------------------------

(a)   OppenheimerFunds,  Inc. is the investment adviser of the Registrant;  it
and certain  subsidiaries  and  affiliates  act in the same  capacity to other
investment companies,  including without limitation those described in Parts A
and B hereof and listed in Item 26(b) below.

(b)   There  is  set  forth  below  information  as  to  any  other  business,
profession,  vocation  or  employment  of a  substantial  nature in which each
officer and director of  OppenheimerFunds,  Inc. is, or at any time during the
past two fiscal  years has been,  engaged  for  his/her  own account or in the
capacity of director, officer, employee, partner or trustee.

---------------------------------------------------------------------------------
Name and Current Position
with OppenheimerFunds, Inc.    Other Business and Connections During the Past
                               Two Years
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lizbeth Aaron-DiGiovanni,      Formerly  Vice  President  (April 2000) and First
Vice President                 Vice  President   (February  2003-July  2004)  of
                               Citigroup Global Markets Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Timothy L. Abbuhl,             Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Emeline S. Adwers,             Formerly  Senior  Analyst  at  Palantir   Capital
Vice President                 (November 1999-January 2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert Agan,                   Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.,  Shareholder Financial Services,  Inc., OFI
                               Private  Investments,  Inc. and Centennial  Asset
                               Management Corporation;  Senior Vice President of
                               Shareholders Services, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Carl Algermissen,              Formerly  Associate  Counsel and Legal Compliance
Assistant Vice President &     Officer at Great  West-Life  & Annuity  Insurance
Associate Counsel              Co.  (February  2004-October  2004);   previously
                               with   INVESCO    Funds   Group,    Inc.    (June
                               1993-December  2003),  most  recently  as  Senior
                               Staff Attorney.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Amato,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Erik Anderson,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Tracey Beck Apostolopoulos,    Assistant  Vice  President  of   OppenheimerFunds
Assistant Vice President       Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Janette Aprilante,             Secretary     (since     December    2001)    of:
Vice President & Secretary     OppenheimerFunds  Distributor,  Inc.,  Centennial
                               Asset   Management    Corporation,    Oppenheimer
                               Partnership  Holdings,   Inc.,  Oppenheimer  Real
                               Asset  Management,  Inc.,  Shareholder  Financial
                               Services,  Inc.,  Shareholder Services,  Inc. and
                               OppenheimerFunds  Legacy Program;  (since January
                               2005)   of    Trinity    Investment    Management
                               Corporation.  Secretary  (since  June  2003)  of:
                               HarbourView  Asset  Management  Corporation,  OFI
                               Private  Investments,  Inc. and OFI Institutional
                               Asset  Management,   Inc.   Assistant   Secretary
                               (since December 2001) of OFI Trust Company.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Hany S. Ayad,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert Baker,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Michael Banta,            None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Joanne Bardell,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kevin Baum,                    None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jeff Baumgartner,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lalit K. Behal                 Assistant    Secretary   of   HarbourView   Asset
Assistant Vice President       Management Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kathleen Beichert,             Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Gerald Bellamy,                Assistant  Vice  President  of OFI  Institutional
Assistant Vice President       Asset Management, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Erik S. Berg,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

Robert Bertucci,               None
Assistant Vice President

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Rajeev Bhaman,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Craig Billings,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark Binning,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert J. Bishop,              Treasurer     (since     October     2003)     of
Vice President                 OppenheimerFunds     Distributor,     Inc.    and
                               Centennial Asset Management Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John R. Blomfield,             None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lisa I. Bloomberg,             Formerly   First  Vice  President  and  Associate
Vice President & Associate     General  Counsel of UBS  Financial  Services Inc.
Counsel                        (May 1999-May 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Veronika Boesch,               Formerly  (until  February  2004) an  independent
Assistant Vice President       consultant/coach in organizational development.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Chad Boll,                     None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Antulio N. Bomfim,             A  senior  economist  with  the  Federal  Reserve
Vice President                 Board (June 1992-October 2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John C. Bonnell,               Vice  President of  Centennial  Asset  Management
Vice President                 Corporation.  Formerly  a  Portfolio  Manager  at
                               Strong Financial Corporation (May 1999-May 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michelle Borre Massick,        None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lori E. Bostrom,               Formerly Vice President and Corporate  Counsel at
Vice President & Senior        Prudential   Financial   Inc.   (October  2002  -
Counsel                        November 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

Lisa Bourgeois,                Assistant    Vice    President   of   Shareholder
Assistant Vice President       Services, Inc.

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Boydell,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Bromberg,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lowell Scott Brooks,           Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Joan Brunelle,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Paul Burke,                    None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark Burns,                    None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jeoffrey Caan,                 Formerly  Vice  President  of ABN AMRO  NA,  Inc.
Vice President                 (June 2002-August 2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Catherine Carroll,             None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Debra Casey,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Maria Castro,                  None
Assistant Vie President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lisa Chaffee,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Charles Chibnik,               None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brett Clark,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
H.C. Digby Clements,           None
Vice President: Rochester
Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Peter V. Cocuzza,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Gerald James Conception,       Formerly  (until  November 2004) an RIA Marketing
Assistant Vice President       Associate of OppenheimerFunds, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Susan Cornwell,                Vice  President of  Centennial  Asset  Management
Vice President                 Corporation,   Shareholder   Financial  Services,
                               Inc. and OppenheimerFunds  Legacy Program; Senior
                               Vice President of Shareholder Services, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Scott Cottier,                 None
Vice President: Rochester
Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Laura Coulston,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Julie C. Cusker,               None
Assistant Vice President:
Rochester Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
George Curry,                  None.
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Damian,                   None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John M. Davis,                 Assistant  Vice  President  of   OppenheimerFunds
Assistant Vice President       Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Craig P. Dinsell,              None
Executive Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Randall C. Dishmon,            None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Rebecca K. Dolan               None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Steven D. Dombrower,           Senior    Vice    President    of   OFI   Private
Vice President                 Investments,     Inc.;    Vice    President    of
                               OppenheimerFunds Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas Doyle,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bruce C. Dunbar,               None
Senior Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian Dvorak,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Richard Edmiston,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Daniel R. Engstrom,            None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James Robert Erven             None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
George R. Evans,               None
Senior Vice President and
Director of International
Equities
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Edward N. Everett,             None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kathy Faber,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David Falicia,                 Assistant   Secretary   (as  of  July   2004)  of
Assistant Vice President       HarbourView Asset Management Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas Farrell,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Emmanuel Ferreira,             Formerly  a  portfolio   manager   with   Lashire
Vice President                 Investments (July 1999-December 2002).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Ronald H. Fielding,            Vice President of  OppenheimerFunds  Distributor,
Senior Vice President;         Inc.;  Director of ICI Mutual Insurance  Company;
Chairman of the Rochester      Governor of St. John's  College;  Chairman of the
Division                       Board of  Directors  of  International  Museum of
                               Photography at George Eastman House.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bradley G. Finkle,             Formerly Head of Business  Management/Proprietary
Vice President                 Distribution   at  Citigroup   Asset   Management
                               (August 1986-September 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian Finley,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John E. Forrest,               Senior   Vice   President   of   OppenheimerFunds
Senior Vice President          Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jordan Hayes Foster,           Vice   President  of  OFI   Institutional   Asset
Vice President                 Management, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David Foxhoven,                Assistant  Vice  President  of   OppenheimerFunds
Vice President                 Legacy Program.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Colleen M. Franca,             None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Dominic Freud,                 Formerly,   a   Partner   and   European   Equity
Vice President                 Portfolio  manager  at  SLS  Management  (January
                               2002-February 2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Dan Gagliardo,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Hazem Gamal,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Seth Gelman,                   Formerly  an  Associate  in the Asset  Management
Vice President                 Legal   Department   at   Goldman   Sachs  &  Co.
                               (February 2003-August 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Subrata Ghose,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Charles W. Gilbert,            None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Phillip S. Gillespie,          Formerly  First Vice  President of Merrill  Lynch
Senior Vice President &        Investment Management (2001 to September 2004).
Deputy General Counsel
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Alan C. Gilston,               None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jill E. Glazerman,             None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bejamin J. Gord,               Vice  President of HarbourView  Asset  Management
Vice President                 Corporation  and  of  OFI   Institutional   Asset
                               Management, Inc..
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Laura Granger,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert B. Grill,               None
Senior Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert Haley,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Marilyn Hall,                  None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kelly Haney,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Steve Hauenstein,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas B. Hayes,               None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Dennis Hess,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Joseph Higgins,                Vice   President  of  OFI   Institutional   Asset
Vice President                 Management, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Dorothy F. Hirshman,           None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Daniel Hoelscher,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Edward Hrybenko,               Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Scott T. Huebl,                Assistant  Vice  President  of   OppenheimerFunds
Vice President                 Legacy Program.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Margaret Hui,                  None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Huttlin,                  Senior   Vice   President    (Director   of   the
Vice President                 International  Division)  (since January 2004) of
                               OFI   Institutional   Asset   Management,   Inc.;
                               Director  (since  June 2003) of  OppenheimerFunds
                               (Asia) Limited
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Corry E. Hyer,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James G. Hyland,               None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Steve P. Ilnitzki,             Vice President of  OppenheimerFunds  Distributor,
Senior Vice President          Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kelly Bridget Ireland,         Vice   President    (since   January   2004)   of
Vice President                 OppenheimerFunds   Distributor   Inc.   Formerly,
                               Director  of  INVESCO  Distributors  Inc.  (April
                               2000-December 2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kathleen T. Ives,              Vice   President  and   Assistant   Secretary  of
Vice President, Senior         OppenheimerFunds     Distributor,     Inc.    and
Counsel and Assistant          Shareholder  Services,  Inc.; Assistant Secretary
Secretary                      of  Centennial  Asset   Management   Corporation,
                               OppenheimerFunds  Legacy Program and  Shareholder
                               Financial Services, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
William Jaume,                 Senior  Vice  President  of   HarbourView   Asset
Vice President                 Management   Corporation  and  OFI  Institutional
                               Asset  Management,  Inc.;  Director  of OFI Trust
                               Company.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Frank V. Jennings,             None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Jennings,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Michael Johnson,          None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lisa Kadehjian,                Formerly Vice President,  Compensation Manager at
Assistant Vice President       The  Bank  of New  York  (November  1996-November
                               2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Charles Kandilis,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jennifer E. Kane,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lynn O. Keeshan,               Assistant  Treasurer of  OppenheimerFunds  Legacy
Senior Vice President          Program
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas W. Keffer,              None
Senior Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Cristina J. Keller,            Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Keogh,                 Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Martin S. Korn,                Formerly  a  Senior  Vice  President  at  Bank of
Senior Vice President          America   (Wealth   and   Investment   Management
                               Technology Group) (March 2002-August 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James Kourkoulakos,            None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian Kramer,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Paul Kunz,                     None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lisa Lamentino,                None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John W. Land,                  Formerly  Human  Resources   Manager  at  Goldman
Assistant Vice President       Sachs (October 2000-July 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Tracey Lange,                  Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

Jeffrey P. Lagarce,            President  and  Chief  Marketing  Officer  of OFI
Senior Vice President          Institutional   Asset  Management,   Inc.  as  of
                               January    2005.    Formerly    Executive    Vice
                               President-Head  of Fidelity  Tax-Exempt  Services
                               Business   at   Fidelity    Investments   (August
                               1996-January 2005).

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Latino,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kristina Lawrence,             Formerly     Assistant    Vice    President    of
Vice President                 OppenheimerFunds,   Inc.   (November   2002-March
                               2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Gayle Leavitt,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Christopher M. Leavy,          None
Senior Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Randy Legg,                    Formerly   an   associate    with   Dechert   LLP
Assistant Vice President &     (September 1998-January 2004).
Assistant Counsel
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Laura Leitzinger,              Senior Vice  President of  Shareholder  Services,
Vice President                 Inc.;  Vice  President of  Shareholder  Financial
                               Services, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Justin Leverenz,               Formerly,   a   research/technology   analyst  at
Vice President                 Goldman Sachs, Taiwan (May 2002-May 2004)
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael S. Levine,             None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Gang Li,                       None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Shanquan Li,                   None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Daniel Lifshey,                Formerly a  Marketing  Manager at PIMCO  Advisors
Assistant Vice President       (January 2002-September 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mitchell J. Lindauer,          None
Vice President & Assistant
General Counsel
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bill Linden,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Malissa B. Lischin,            Assistant  Vice  President  of   OppenheimerFunds
Vice President                 Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David P. Lolli,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Daniel G. Loughran             None
Vice President: Rochester
Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Patricia Lovett,               Vice   President   of    Shareholder    Financial
Vice President                 Services,  Inc.  and  Senior  Vice  President  of
                               Shareholder Services, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Dongyan Ma,                    Formerly  an  Assistant   Vice   President   with
Assistant Vice President       Standish   Mellon   Asset   Management   (October
                               2001-October 2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Steve Macchia,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark H. Madden,                Formerly   Senior  Vice   President   and  Senior
Vice President                 Portfolio Manager with Pioneer Investments,  Inc.
                               (July 1990-July 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Magee,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kathleen Mandzij,              Formerly   Marketing   Manager   -  Sales   Force
Assistant Vice President       Marketing     (March     2003-June    2004)    of
                               OppenheimerFunds, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jerry Mandzij,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Angelo G. Manioudakis          Senior  Vice  President  of   HarbourView   Asset
Senior Vice President          Management  Corporation and of OFI  Institutional
                               Asset   Management,   Inc.   Formerly   Executive
                               Director  and   portfolio   manager  for  Miller,
                               Anderson  &   Sherrerd,   a  division  of  Morgan
                               Stanley Investment  Management (August 1993-April
                               2002).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
LuAnn Mascia,                  Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Susan Mattisinko,              Assistant    Secretary   of   HarbourView   Asset
Vice President & Associate     Management  Corporation,  OppenheimerFunds Legacy
Counsel                        Program,  OFI  Private  Investments,   Inc.,  OFI
                               Institutional Asset Management,  Inc., Centennial
                               Asset  Management  Corporation,  Oppenheimer Real
                               Asset  Management,  Inc.  and Trinity  Investment
                               Management Corporation.  Formerly an Associate at
                               Sidley  Austin Brown and Wood LLP (1995 - October
                               2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Elizabeth McCormack,           Vice   President  and   Assistant   Secretary  of
Vice President                 HarbourView Asset Management Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Joseph McGovern,               None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Charles L. McKenzie,           Chairman  of the Board and  Director of OFI Trust
Senior Vice President          Company;  Chief  Executive  Officer,   President,
                               Senior   Managing   Director   and   Director  of
                               HarbourView Asset Management  Corporation and OFI
                               Institutional Asset Management,  Inc.; President,
                               Chairman  and  Director  of  Trinity   Investment
                               Management Corporation
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lucienne Mercogliano,          None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Wayne Miao,                    Formerly an Associate  with Sidley Austin Brown &
Assistant Vice President and   Wood LLP (September 1999 - May 2004).
Assistant Counsel
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Andrew J. Mika,                None
Senior Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Nikolaos D. Monoyios,          None
Senior Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Charles Moon,                  Vice  President of HarbourView  Asset  Management
Vice President                 Corporation  and  of  OFI   Institutional   Asset
                               Management, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Murphy,                   President    and    Director    of    Oppenheimer
Chairman, President, Chief     Acquisition  Corp.  and  Oppenheimer  Partnership
Executive Officer & Director   Holdings,   Inc.  Director  of  Centennial  Asset
                               Management     Corporation,      OppenheimerFunds
                               Distributor,    Inc.;    Chairman   Director   of
                               Shareholder   Services,   Inc.  and   Shareholder
                               Financial Services,  Inc.; President and Director
                               f  OppenheimerFunds  Legacy Program;  Director of
                               OFI   Institutional   Asset   Management,   Inc.,
                               Trinity   Investment   Management    Corporation,
                               Tremont  Capital  Management,  Inc.,  HarbourView
                               Asset   Management   Corporation,   OFI   Private
                               Investments,  Inc.;  President  and  Director  of
                               Oppenheimer   Real   Asset   Management,    Inc.;
                               Executive Vice President of Massachusetts  Mutual
                               Life   Insurance   Company;   Director   of   DLB
                               Acquisition   Corporation;   a   member   of  the
                               Investment    Company    Institute's   Board   of
                               Governors.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Meaghan Murphy,                Formerly  Marketing  Professional,  RFP Writer at
Assistant Vice President       JP Morgan  Fleming Asset  Management  (May 2002 -
                               October 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Suzanne Murphy,                Formerly  (until December 2003) a Vice President,
Vice President                 Senior Marketing Manager with Citigroup.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas J. Murray,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kenneth Nadler,                None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Christina Nasta,               Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Richard Nichols,               None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
William Norman,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James B. O'Connell,            Formerly   a   Senior    Designer    Manager   of
Assistant Vice President       OppenheimerFunds,  Inc.  (April  2002 -  December
                               2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Matthew O'Donnell,             None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John O'Hare,                   Formerly  Executive  Vice President and Portfolio
Vice President                 Manager  (June  2000 -  August  2003)  at  Geneva
                               Capital Management, Ltd.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John J. Okray,                 Formerly   Vice   President,    Head   of   Trust
Vice President                 Operations at Lehman Brothers (June  2004-October
                               2004)  prior to which  he was an  Assistant  Vice
                               President,   Director   of  Trust   Services   at
                               Cambridge Trust Company (October 2002-June 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lerae A. Palumbo,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David P. Pellegrino,           None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Allison C. Pells,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert H. Pemble,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lori L. Penna,                 Formerly  an RFP  Manager/Associate  at  JPMorgan
Assistant Vice President       Chase & Co. (June 2001-September 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian Petersen,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Marmeline Petion-Midy,         Formerly a Senior Financial  Analyst with General
Assistant Vice President       Motors,  NY Treasurer's  Office (July  2000-Augut
                               2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David Pfeffer,                 Senior  Vice  President  of   HarbourView   Asset
Senior Vice President and      Management   Corporation   since  February  2004.
Chief Financial Officer        Formerly,  Director and Chief  Financial  Officer
                               at   Citigroup   Asset    Management    (February
                               2000-February 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James F. Phillips,             None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Scott Phillips,                Formerly   Vice   President   at  Merrill   Lynch
Vice President                 Investment Management (June 2000-July 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Gary Pilc,                     None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jason Pizzorusso,              Formerly   a   Vice   President,   Research   and
Assistant Vice President       Development  at  Crucial  Security  Inc.  (August
                               2000-May 2002;  part-time while attending  school
                               until 2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David Poiesz,                  Formerly  a Senior  Portfolio  Manager at Merrill
Senior Vice President, Head    Lynch (October  2002-May 2004).  Founding partner
of Growth Equity Investments   of  RiverRock,   a  hedge  fund  product   (April
                               1999-July 2001).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jeffrey Portnoy,               None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Raghaw Prasad,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David Preuss,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jane C. Putnam,                None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael E. Quinn,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Julie S. Radtke,               None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Norma J. Rapini,               None
Assistant Vice President:
Rochester Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian N. Reid,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Marc Reinganum,                Formerly  (until  August  2002)  Vaughn  Rauscher
Vice President                 Chair  in  Financial  Investments  and  Director,
                               Finance    Institute   of   Southern    Methodist
                               University, Texas.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jill Reiter,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Claire Ring,                   None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David Robertson,               Senior   Vice   President   of   OppenheimerFunds
Senior Vice President          Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Antoinette Rodriguez,          None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Stacey Roode,                  None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jeffrey S. Rosen,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Stacy Roth,                    None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James H. Ruff,                 President   and   Director  of   OppenheimerFunds
Executive Vice President       Distributor,    Inc.   and    Centennial    Asset
                               Management Corporation;  Executive Vice President
                               of OFI Private Investments, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

Adrienne Ruffle,               Formerly an Associate  with Sidley Austin Brown &
Assistant Vice President and   Wood LLP (September 2002-February 2005).
Assistant Counsel

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Andrew Ruotolo,                Vice   Chairman,   Treasurer,   Chief   Financial
Executive Vice President and   Officer and  Management  Director of  Oppenheimer
Director                       Acquisition  Corp.;  President  and  Director  of
                               Shareholder   Services,   Inc.  and   Shareholder
                               Financial  Services,  Inc.;  Director  of Trinity
                               Investment  Management  Corporation  and Director
                               of OFI Trust Company.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kim Russomanno,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Timothy Ryan,                  Formerly   a   research   analyst  in  the  large
Vice President                 equities group at Credit Suisse Asset  Management
                               (August 2001-June 2004)
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Rohit Sah,                     None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Valerie Sanders,               None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Karen Sandler,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Rudi W. Schadt,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Ellen P. Schoenfeld,           None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Maria Schulte,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Scott A. Schwegel,             None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Allan P. Sedmak                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jennifer L. Sexton,            Senior    Vice    President    of   OFI   Private
Vice President                 Investments, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Navin Sharma,                  None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bonnie Sherman,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David C. Sitgreaves,           None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Edward James Sivigny           None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Enrique H. Smith,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Louis Sortino,                 None
Assistant Vice President:
Rochester Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Keith J. Spencer,              None
Senior Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Marco Antonio Spinar,          None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Richard A. Stein,              None
Vice President: Rochester
Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Arthur P. Steinmetz,           Senior  Vice  President  of   HarbourView   Asset
Senior Vice President          Management Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jennifer Stevens,              None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John P. Stoma,                 Senior   Vice   President   of   OppenheimerFunds
Senior Vice President          Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Stricker,              Vice President of Shareholder Services, Inc.
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Deborah A. Sullivan,           Secretary of OFI Trust Company.
Assistant Vice President &
Assistant Counsel
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Sussman,               Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Susan B. Switzer,              None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian C. Szilagyi,             Manager of Compliance at Berger  Financial  Group
Assistant Vice President       LLC (May 2001-March 2003);  Director of Financial
                               Reporting   and    Compliance   at   First   Data
                               Corporation (April 2003-June 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Martin Telles,                 Senior   Vice   President   of   OppenheimerFunds
Senior Vice President          Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Paul Temple,                   None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jeaneen Terrio,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Vincent Toner,                 None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Keith Tucker,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Cameron Ullyat,                None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Angela Uttaro,                 None
Assistant Vice President:
Rochester Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark S. Vandehey,              Vice President of  OppenheimerFunds  Distributor,
Senior Vice President and      Inc.,  Centennial  Asset  Management  Corporation
Chief Compliance Officer       and Shareholder  Services,  Inc.  Formerly (until
                               March 2004) Vice  President of  OppenheimerFunds,
                               Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Maureen Van Norstrand,         None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Nancy Vann,                    Formerly  Assistant  General  Counsel  at Reserve
Vice President and Assistant   Management  Company,   Inc.  (April  to  December
Counsel                        2004);  attorney  at Sidley  Austin  Brown & Wood
                               LLP (October 1997 - April 2004).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Rene Vecka,                    Formerly Vice President of Shareholder  Services,
Assistant Vice President,      Inc. (September 2000-July 2003).
Rochester Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Vincent Vermette,              Vice President of  OppenheimerFunds  Distributor,
Assistant Vice President       Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Phillip F. Vottiero,           None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lisa Walsh,                    None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Teresa M. Ward,                Vice President of  OppenheimerFunds  Distributor,
Vice President                 Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jerry A. Webman,               Senior  Vice  President  of   HarbourView   Asset
Senior Vice President          Management Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Christopher D. Weiler,         None
Vice President: Rochester
Division
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Adam Weiner,                   Formerly a Vice  President at AIG Trading  (March
Assistant Vice President       2003-May  2004)  prior to which he was a Managing
                               Director at ING Barings  (December  1999-February
                               2003).
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Barry D. Weiss,                Vice  President of HarbourView  Asset  Management
Vice President                 Corporation  and of Centennial  Asset  Management
                               Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Melissa Lynn Weiss,            None
Vice President & Associate
Counsel
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Christine Wells,               None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Joseph J. Welsh,               Vice  President of HarbourView  Asset  Management
Vice President                 Corporation.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Diederick Wermolder,           Director of  OppenheimerFunds  International Ltd.
Senior Vice President          and  OppenheimerFunds  plc; Senior Vice President
                               (Managing    Director   of   the    International
                               Division) of OFI Institutional  Asset Management,
                               Inc.;   Director   of   OppenheimerFunds   (Asia)
                               Limited.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Catherine M. White,            Assistant  Vice  President  of   OppenheimerFunds
Assistant Vice President       Distributor,   Inc.;   member  of  the   American
                               Society of Pension Actuaries (ASPA) since 1995.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Annabel Whiting,               None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
William L. Wilby,              None
Senior Vice President and
Senior Investment Officer,
Director of Equities
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Donna M. Winn,                 President,  Chief Executive  Officer and Director
Senior Vice President          of OFI Private  Investments,  Inc.;  Director and
                               President  of  OppenheimerFunds  Legacy  Program;
                               Senior   Vice   President   of   OppenheimerFunds
                               Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Philip Witkower,               Senior   Vice   President   of   OppenheimerFunds
Senior Vice President          Distributor, Inc.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian W. Wixted,               Treasurer   of   HarbourView   Asset   Management
Senior Vice President and      Corporation;    OppenheimerFunds    International
Treasurer                      Ltd.,  Oppenheimer  Partnership  Holdings,  Inc.,
                               Oppenheimer   Real   Asset   Management,    Inc.,
                               Shareholder    Services,     Inc.,    Shareholder
                               Financial    Services,    Inc.,    OFI    Private
                               Investments,   Inc.,  OFI   Institutional   Asset
                               Management,   Inc.,   OppenheimerFunds   plc  and
                               OppenheimerFunds  Legacy  Program;  Treasurer and
                               Chief  Financial  Officer  of OFI Trust  Company;
                               Assistant  Treasurer of  Oppenheimer  Acquisition
                               Corp.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Carol E. Wolf,                 Senior  Vice  President  of   HarbourView   Asset
Senior Vice President          Management  Corporation  and of Centennial  Asset
                               Management  Corporation;  serves  on the Board of
                               the Colorado Ballet.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kurt Wolfgruber,               Director  of Tremont  Capital  Management,  Inc.,
Executive Vice President,      HarbourView Asset Management  Corporation and OFI
Chief Investment Officer and   Institutional Asset Management,  Inc. (since June
Director                       2003)
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Caleb C. Wong,                 None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Edward C. Yoensky,             None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lucy Zachman,                  None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert G. Zack                 General Counsel and Director of  OppenheimerFunds
Executive Vice President and   Distributor,  Inc.; General Counsel of Centennial
General Counsel                Asset   Management   Corporation;   Senior   Vice
                               President  and  General  Counsel  of  HarbourView
                               Asset    Management     Corporation    and    OFI
                               Institutional  Asset  Management,   Inc.;  Senior
                               Vice  President,  General Counsel and Director of
                               Shareholder     Financial     Services,     Inc.,
                               Shareholder    Services,    Inc.,   OFI   Private
                               Investments,  Inc.  and OFI Trust  Company;  Vice
                               President    and    Director    of    Oppenheimer
                               Partnership   Holdings,    Inc.;   Director   and
                               Assistant  Secretary  of  OppenheimerFunds   plc;
                               Secretary  and  General  Counsel  of  Oppenheimer
                               Acquisition   Corp.;   Director   and   Assistant
                               Secretary   of   OppenheimerFunds   International
                               Ltd.;   Director   of   Oppenheimer   Real  Asset
                               Management,   Inc.  and  OppenheimerFunds  (Asia)
                               Limited);   Vice  President  of  OppenheimerFunds
                               Legacy Program.
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Neal A. Zamore,                None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark D. Zavanelli,             None
Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Alex Zhou,                     None
Assistant Vice President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Arthur J. Zimmer,              Senior  Vice  President  (since  April  1999)  of
Senior Vice President          HarbourView Asset Management Corporation.
---------------------------------------------------------------------------------


The Oppenheimer Funds include the following:

Centennial California Tax Exempt Trust
Centennial Government Trust
Centennial Money Market Trust
Centennial New York Tax Exempt Trust
Centennial Tax Exempt Trust
Limited Term New York Municipal Fund (Rochester Portfolio Series)
OFI Tremont Core Strategies Hedge Fund
OFI Tremont Market Neutral Hedge Fund
Oppenheimer AMT-Free Municipals
Oppenheimer AMT-Free New York Municipals
Oppenheimer Balanced Fund
Oppenheimer California Municipal Fund
Oppenheimer Capital Appreciation Fund
Oppenheimer Capital Income Fund
Oppenheimer Cash Reserves
Oppenheimer Champion Income Fund
Oppenheimer Convertible Securities Fund (Bond Fund Series)
Oppenheimer Core Bond Fund (a series of Oppenheimer Integrity Funds)
Oppenheimer Developing Markets Fund
Oppenheimer Discovery Fund
Oppenheimer Emerging Growth Fund
Oppenheimer Emerging Technologies Fund
Oppenheimer Enterprise Fund
Oppenheimer Equity Fund, Inc.
Oppenheimer Global Fund
Oppenheimer Global Opportunities Fund
Oppenheimer Gold & Special Minerals Fund
Oppenheimer Growth Fund
Oppenheimer High Yield Fund
Oppenheimer International Bond Fund
Oppenheimer International Growth Fund
Oppenheimer International Large-Cap Core Fund (a series of Oppenheimer
International Large-
    Cap Core Trust)
Oppenheimer International Small Company Fund
Oppenheimer International Value Fund (a series of Oppenheimer International
Value Trust)
Oppenheimer Limited Term California Municipal Fund
Oppenheimer Limited-Term Government Fund
Oppenheimer Limited Term Municipal Fund (a series of Oppenheimer Municipal
Fund)
Oppenheimer Main Street Fund (a series of Oppenheimer Main Street Funds, Inc.)
Oppenheimer Main Street Opportunity Fund
Oppenheimer Main Street Small Cap Fund
Oppenheimer MidCap Fund
Oppenheimer Money Market Fund, Inc.
Oppenheimer Multi-Sector Income Trust
Oppenheimer Multi-State Municipal Trust (3 series):
     Oppenheimer New Jersey Municipal Fund
     Oppenheimer Pennsylvania Municipal Fund
     Oppenheimer Rochester National Municipals
Oppenheimer Principal Protected Main Street Fund (a series of Oppenheimer
Principal
     Protected Trust)
Oppenheimer Principal Protected Main Street Fund II (a series of Oppenheimer
     Principal Protected Trust II)
Oppenheimer Principal Protected Main Street Fund III (a series of Oppenheimer
     Principal Protected Trust III)
Oppenheimer Quest Capital Value Fund, Inc.
Oppenheimer Quest For Value Funds (3 series)
     Oppenheimer Quest Balanced Fund
     Oppenheimer Quest Opportunity Value Fund
     Oppenheimer Small Cap Value Fund
Oppenheimer Quest International Value Fund, Inc.
Oppenheimer Quest Value Fund, Inc.
Oppenheimer Real Asset Fund
Oppenheimer Real Estate Fund
Oppenheimer Select Value Fund
Oppenheimer Senior Floating Rate Fund
Oppenheimer Series Fund, Inc. (2 series):
     Oppenheimer Disciplined Allocation Fund
     Oppenheimer Value Fund
Oppenheimer Strategic Income Fund
Oppenheimer Total Return Bond Fund
Oppenheimer Tremont Market Neutral Fund, LLC
Oppenheimer Tremont Opportunity Fund, LLC
Oppenheimer U.S. Government Trust

Oppenheimer Variable Account Funds (11 series):
     Oppenheimer Aggressive Growth Fund/VA
     Oppenheimer Balanced Fund/VA
     Oppenheimer Core Bond Fund/VA
     Oppenheimer Capital Appreciation Fund/VA
     Oppenheimer Global Securities Fund/VA
     Oppenheimer High Income Fund/VA
     Oppenheimer Main Street Fund/VA
     Oppenheimer Main Street Small Cap Fund/VA
     Oppenheimer Money Fund/VA
     Oppenheimer Strategic Bond Fund/VA
     Oppenheimer Value Fund/VA

Panorama Series Fund, Inc. (4 series):
     Growth Portfolio
     Government Securities Portfolio
     Oppenheimer International Growth Fund/VA
     Total Return Portfolio
Rochester Fund Municipals

The address of the  Oppenheimer  funds  listed  above,  Shareholder  Financial
Services,  Inc.,  Shareholder  Services,  Inc.,   OppenheimerFunds   Services,
Centennial   Asset   Management   Corporation,   Centennial   Capital   Corp.,
Oppenheimer Real Asset Management,  Inc. and  OppenheimerFunds  Legacy Program
is 6803 South Tucson Way, Centennial, Colorado 80112-3924.

The address of OppenheimerFunds,  Inc.,  OppenheimerFunds  Distributor,  Inc.,
HarbourView Asset Management  Corporation,  Oppenheimer  Partnership Holdings,
Inc.,  Oppenheimer  Acquisition  Corp.,  OFI Private  Investments,  Inc.,  OFI
Institutional Asset Management,  Inc. and Oppenheimer Trust Company is 2 World
Financial  Center,  225  Liberty  Street,  11th  Floor,  New  York,  New  York
10281-1008.

The address of Tremont  Advisers,  Inc. is 555 Theodore  Fremd  Avenue,  Suite
206-C, Rye, New York 10580.

The  address  of  OppenheimerFunds  International  Ltd.  is Bloc C, Irish Life
Center, Lower Abbey Street, Dublin 1, Ireland.

The address of Trinity Investment  Management  Corporation is 301 North Spring
Street, Bellefonte, Pennsylvania 16823.


Item 27. Principal Underwriter
------------------------------

(a)   OppenheimerFunds   Distributor,   Inc.   is  the   Distributor   of  the
Registrant's  shares.  It is  also  the  Distributor  of  each  of  the  other
registered open-end investment companies for which  OppenheimerFunds,  Inc. is
the  investment  adviser,  as described  in Part A and B of this  Registration
Statement  and listed in Item 26(b)  above  (except  Oppenheimer  Multi-Sector
Income Trust and Panorama Series Fund, Inc.) and for MassMutual  Institutional
Funds.

(b)   The directors  and officers of the  Registrant's  principal  underwriter
are:

---------------------------------------------------------------------------------
Name & Principal                Position & Office         Position and Office
Business Address                with Underwriter          with Registrant
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Timothy Abbhul(1)               Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert Agan(1)                  Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Janette Aprilante(2)            Secretary                 None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James Barker                    Vice President            None
2901B N. Lakewood Avenue
Chicago, IL 60657
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kathleen Beichert(1)            Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert J. Bishop(1)             Treasurer                 None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Douglas S. Blankenship          Vice President            None
17011 Wood Bark Road
Springs, TX 77379
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Tracey Blinzler(1)              Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David A Borrelli                Vice President            None
105 Black Calla Ct.
San Ramon, CA 94583
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michelle Brennan(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
L. Scott Brooks(2)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kevin E. Brosmith               Senior Vice President     None
5 Deer Path
South Natlick, MA 01760
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jeffrey W. Bryan                Vice President            None
1048 Malaga Avenue
Coral Gables, FL 33134
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Patrick Campbell(1)             Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Andrew Chonofsky                Vice President            None
300 West Fifth Street, Apt. 118
Charlotte, NC 28202
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Melissa Clayton(2)              Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Julian C. Curry(2)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jeffrey D. Damia(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Davis(2)                   Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Stephen J. Demetrovits(2)       Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Joseph A. DiMauro               Vice President            None
522 Lakeland Avenue
Grosse Pointe, MI 48230
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Steven Dombrower(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
George P. Dougherty             Vice President            None
328 Regency Drive
North Wales, PA 19454
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Ryan Drier(2)                   Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Cliff H. Dunteman               Vice President            None
N 53 27761 Bantry Road
Sussex, WI 53089-45533
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Hillary Eigen                   Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Eiler(2)                   Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kent M. Elwell                  Vice President            None
35 Crown Terrace
Yardley, PA 19067
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Gregg A. Everett                Vice President            None
4328 Auston Way
Palm Harbor, FL 34685-4017
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
George R. Fahey                 Senior Vice President     None
2 Pheasant Drive
Ringoes, NJ 08551
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Eric C. Fallon                  Vice President            None
10 Worth Circle
Newton, MA 02458
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Joseph Fernandez                Vice President            None
1717 Richbourg Park Drive
Brentwood, TN 37027
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark J. Ferro(2)                Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Ronald H. Fielding(3)           Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Eric Fishel                     Vice President            None
3A Lawnwood Place, Apt. 1
Charlestown, MA 02129
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Patrick W. Flynn (1)            Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John E. Forrest(2)              Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John ("J) Fortuna(2)            Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lucio Giliberti                 Vice President            None
6 Cyndi Court
Flemington, NJ 08822
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Raquel Granahan(2)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Ralph Grant                     Senior Vice President     None
10 Boathouse Close
Mt. Pleasant, SC 29464
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael D. Guman                Vice President            None
3913 Pleasant Avenue
Allentown, PA 18103
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James E. Gunther(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kevin Healy(2)                  Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Phillipe D. Hemery              Vice President            None
5 Duck Pond Lane
Ramsey, NJ 07446
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kevin Hennessey                 Vice President            None
10206 Emerald Woods Avenue
Orlando, FL 32836
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Elyse R. Jurman Herman          Vice President            None
5486 NW 42 Avenue
Boca Raton, FL 33496
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

Suzanne Heske                   Vice President            None

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Wendy G. Hetson                 Vice President            None
4 Craig Street
Jericho, NY 11753
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
William E. Hortz(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Edward Hrybenko(2)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Andrew Humble                   Vice President            None
419 Phillips Avenue
len Ellyn, IL 60137
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian F. Husch(2)               Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Stephen Ilnitzki(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kathleen T. Ives(1)             Vice President &          Assistant Secretary
                                Assistant Secretary
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Nivan Jaleeli                   Vice President            None
13622 E. Geronimo Rd.
Scottsdale, AZ 85259
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Eric K. Johnson(1)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark D. Johnson                 Vice President            None
15792 Scenic Green Court
Chesterfield, MO 63017
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Christina J. Keller(2)          Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Keogh(2)                Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Lisa Klassen(1)                 Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Richard Klein                   Senior Vice President     None
4820 Fremont Avenue So.
Minneapolis, MN 55409
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Richard Knott(1)                Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Dean Kopperud(2)                Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brent A. Krantz                 Senior Vice President     None
61500 Tam McArthurLoop
Bend, OR 97702
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David T. Kuzia                  Vice President            None
19102 Miranda Circle
Omaha, NE 68130
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Tracey Lange(2)                 Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Paul R. LeMire(2)               Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Eric J. Liberman(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Malissa Lischin(2)              Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James V. Loehle                 Vice President            None
30 Wesley Hill Lane
Warwick, NY 10990
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas Loncar(1)                Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Montana W. Low                  Vice President            None
1636 N. Wells Street, Apt. 3411
Chicago, IL 60614
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Craig Lyman                     Vice President            None
3930 Swenson St. #502
Las Vegas, NV 89119
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John J. Lynch                   Vice President            None
6325 Bryan Parkway
Dallas, TX 75214
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Malik                   Vice President            None
126 Bernard Street
San Francisco, CA 94109
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Steven C. Manns                 Vice President            None
1627 N. Hermitage Avenue
Chicago, IL 60622
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Todd A. Marion                  Vice President            None
24 Midland Avenue
Cold Spring Harbor, NY 11724
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
LuAnn Mascia(2)                 Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Theresa-Marie Maynier           Vice President            None
2421 Charlotte Drive
Charlotte, NC 28203
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Anthony P. Mazzariello          Vice President            None
8 Fairway Road
Sewickley, PA 15143
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John C. McDonough               Vice President            None
3812 Leland Street
Chevy Chase, MD 20815
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kent C. McGowan                 Vice President            None
9510 190th Place SW
Edmonds, WA 98020
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian F. Medina(1)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Daniel Melehan                  Vice President            None
906 Bridgeport Court
San Marcos, CA 92069
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark Mezzanotte                 Vice President            None
16 Cullen Way
Exeter, NH 03833
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Clint Modler(1)                 Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David W. Mountford(2)           Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert Moser(1)                 Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Gzim Muja(2)                    Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John V. Murphy(2)               Director                  President
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Wendy Jean Murray               Vice President            None
32 Carolin Road
Upper Montclair, NJ 07043
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John S. Napier(2)               Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Christina Nasta(2)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kevin P. Neznek(2)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bradford Norford                Vice President            None
4607 Timberglen Rd.
Dallas, TX 75287
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Alan Panzer                     Vice President            None
6755 Ridge Mill Lane
Atlanta, GA 30328
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian C. Perkes                 Vice President            None
6 Lawton Ct.
Frisco, TX 75034
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Charles K. Pettit               Vice President            None
22 Fall Meadow Drive
Pittsford, NY 14534
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Elaine Puleo-Carter(2)          Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Minnie Ra                       Vice President            None
100 Dolores Street, #203
Carmel, CA 93923
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Dusting Raring                  Vice President            None
27 Blakemore Drive
Ladera Ranch, CA 92797
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael A. Raso                 Vice President            None
3 Vine Place
Larchmont, NY 10538
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Richard Rath                    Vice President            None
46 Mt. Vernon Ave.
Alexandria, VA 22301
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Douglas Rentschler              Vice President            None
677 Middlesex Road
Grosse Pointe Park, MI 48230
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Ruxandra Risko(2)               Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David R. Robertson(2)           Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Ian M. Roche                    Vice President            None
7070 Bramshill Circle
Bainbridge, OH 44023
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kenneth A. Rosenson             Vice President            None
24753 Vantage Pt. Terrace
Malibu, CA 90265
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James H. Ruff(2)                President & Director      None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Matthew Rutig                   Vice President            None
199 North Street
Ridgefield, CT 06877
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
William R. Rylander             Vice President            None
85 Evergreen Road
Vernon, CT 06066
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas Sabow                    Vice President            None
6617 Southcrest Drive
Edina, MN 55435
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Saunders                   Vice President            None
911 North Orange Avenue #401
Orlando, FL 32801
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jill Schmitt(2)                 Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas Schmitt(2)               Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
William Schories(2)             Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Charles F. Scully               Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Eric Sharp                      Vice President            None
862 McNeill Circle
Woodland, CA 95695
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Debbie A. Simon                 Vice President            None
1 W. Superior Street, Apt. 4101
Chicago, IL 60610
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Douglas Bruce Smith             Vice President            None
8927 35th Street W.
University Place, WA 98466
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Spensley(2)                Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bryan Stein(2)                  Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Stoma(2)                   Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Wayne Strauss(3)                Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Brian C. Summe                  Vice President            None
2479 Legends Way
Crestview Hills, KY 41017
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael Sussman(2)              Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
George T. Sweeney               Senior Vice President     None
5 Smokehouse Lane
Hummelstown, PA 17036
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
James Taylor(2)                 Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Martin Telles(2)                Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
David G. Thomas                 Vice President            None
16628 Elk Run Court
Leesburg, VA 20176
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Barrie L. Tiedemann(2)          Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Bryan K.Toma                    Vice President            None
7311 W. 145th Terrace
Overland Park, KS 66223
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Mark Vandehey(1)                Vice President            Vice President and
                                                          Chief Compliance
                                                          Officer
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Vincent Vermete(2)              Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------

Rachel Walkey                   Assistant Vice President  None

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

Cynthia Walloga                 Vice President            None

---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Kenneth Lediard Ward            Vice President            None
1400 Cottonwood Valley Circle
N.
Irving, TX 75038
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Teresa Ward(1)                  Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Michael J. Weigner              Vice President            None
4905 W. San Nicholas Street
Tampa, FL 33629
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Donn Weise                      Vice President            None
3249 Earlmar Drive
Los Angeles, CA 90064
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Chris Werner(1)                 Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Catherine White(2)              Assistant Vice President  None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Thomas Wilson(2)                Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Donna Winn(2)                   Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Philip Witkower(2)              Senior Vice President     None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Cary Patrick Wozniak            Vice President            None
18808 Bravata Court
San Diego, CA 92128
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
John Charles Young              Vice President            None
3914 Southwestern
Houston, TX 77005
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Jill Zachman(2)                 Vice President            None
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
Robert G. Zack(2)               General Counsel &         Secretary
                                Director
---------------------------------------------------------------------------------

(1)6803 South Tucson Way, Centennial, CO 80112-3924
(2)Two World Financial  Center,  225 Liberty Street,  11th Floor, New York, NY
10281-1008
(3)350 Linden Oaks, Rochester, NY 14623

(c)   Not applicable.


Item 28. Location of Accounts and Records
-----------------------------------------

The  accounts,  books  and  other  documents  required  to  be  maintained  by
Registrant  pursuant to Section  31(a) of the  Investment  Company Act of 1940
and rules  promulgated  thereunder are in the possession of  OppenheimerFunds,
Inc. at its offices at 6803 South Tucson Way, Centennial, Colorado 80112-3924.



Item 29. Management Services
----------------------------

Not applicable

Item 30. Undertakings
---------------------

Not applicable.









                                  SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and/or the
Investment Company Act of 1940, the Registrant certifies that it meets all
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York and State of New York on
the 25th day of April, 2005.


                        ROCHESTER FUND MUNICIPALS
                        By:  /s/ John V. Murphy*
                        -------------------------------------------
                        John V. Murphy, President &
                        Principal Executive Officer

Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement has been signed below by the following persons in the capacities on
the dates indicated:

Signatures                   Title                       Date
----------                   -----                       ----


/s/ Thomas W. Courtney*      Chairman of the             April 25, 2005
------------------------------                           Board of Trustees
Thomas W. Courtney


/s/ John V. Murphy*          President & Principal

------------------------------                           Executive Officer
April 25, 2005
John V. Murphy


/s/ Brian W. Wixted*         Treasurer and Chief

--------------------------   Financial and               April 25, 2005
Brian W. Wixted              Accounting Officer


/s/ John Cannon*

---------------------        Trustee                     April 25, 2005
John Cannon

/s/ Paul Y. Clinton*         Trustee                     April 25, 2005

-----------------------
Paul Y. Clinton

/s/ Robert G. Galli*

------------------------     Trustee                     April 25, 2005
Robert G. Galli

/s/ Lacy B. Herrmann*        Trustee                     April 25, 2005

---------------------------
Lacy B. Herrmann


/s/ Brian Wruble*            Trustee                     April 25, 2005

---------------------
Brian Wruble

*By:  /s/ Mitchell J. Lindauer
-----------------------------------------
Mitchell J. Lindauer, Attorney-in-Fact


                                  FORM N-1A

                          ROCHESTER FUND MUNICIPALS


                        Registration Statement No. 30


                                EXHIBIT INDEX


Item No.          Description
----------        --------------



23(j)             Independent Registered Public Accounting Firm's Consent

23(m)(iii)        Amended and Restated  Service Plan and Agreement for Class C
                  Shares





























365_PartC-485b(Apr05)redline.doc