N-SAR EXHIBIT 77E



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

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

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