OppenheimerFunds, Inc. Watch

from NSAR-B 1 page Oppenheimer Select Managers Gartmore Millennium Growth Fund II Merged Into Oppenheimer Midcap Fund Effective September 4, 2003. Oppenheimer Select Managers Qm Active Balanced Fund Merged Into Oppenheimer Multiple Strategies Fund Effective September 4, 2003. Oppenheimer Select Managers Mercury Advisors S&P 500 Index Fund Merged Into Oppenheimer Main Street Fund Effective October 16, 2003. Oppenheimer Select Managers Jennison Growth Fund Merged Into Oppenheimer Growth Fund Effective October 16, 2003. Oppenheimer Select Managers Mercury Advisors Focus Growth Fund Merged Into Oppenheimer Growth Fund Effective November 6, 2003. Oppenheimer Select Managers Salomon Brothers All Cap Fund Merged Into Oppenheimer Value Fund Effective November 6, 2003

from NSAR-B 1 page <page> 6. Acquisition of Oppenheimer Mortgage Income Fund on July 27, 1995, the Fund Acquired All of the Net Assets of Oppenheimer Mortgage Income Fund, Pursuant to an Agreement and Plan of Reorganization Approved by the Oppenheimer Mortgage Income Fund Shareholders on July 12, 1995. the Fund Issued 8,262,838 and 683,099 Shares of Beneficial Interest for Class a and Class B, Respectively, Valued at $77,918,563 and $6,434,794 in Exchange for the Net Assets, Resulting in Combined Class a Net Assets of $385,440,401 and Class B Net Assets of $6,806,465 on July 27, 1995. the Exchange Qualifies as a Tax-Free Reorganization for Federal Income Tax Purposes