On February 16, 2001, the Fund acquired all of the net assets of Oppenheimer
World Bond Fund, pursuant to an Agreement and Plan of Reorganization approved by
the Oppenheimer World Bond Fund shareholders on February 9, 2001. The Fund
issued (at an exchange ratio of 1.663545 for Class A, 1.671579 for Class B and
1.668707 for Class C of the Fund to one share of Oppenheimer International Bond
Fund) 9,099,764, 2,119,613 and 389,518 shares of beneficial interest for Class
A, Class B and Class C, respectively, valued at $38,855,992, $9,008,355 and
$1,655,452 in exchange for the net assets, resulting in combined Class A net
assets of $141,638,099, Class B net assets of $103,839,460 and Class C net
assets of $29,637,104 on February 16, 2001. The net assets acquired included net
unrealized appreciation of $432,989. The exchange qualified as a tax-free
reorganization for federal income tax purposes.