OPPENHEIMER INTERNATIONAL SMALL COMPANY FUND
Supplement dated September 25, 1998
to the Prospectus dated May 15, 1998
The Prospectus is changed as follows:
1. The supplement dated June 1, 1998 is replaced by this supplement.
2. The cumulative total returns for the period from November 17, 1997 to
February 28, 1998, set forth in the line captioned "Total Return, At Net Asset
Value" appearing in the Financial Highlights table (unaudited) on page 8 are
replaced with the following:
Class A Class B Class C
11.50% 11.30% 11.30%
3. The following is added after the section entitled "Foreign Securities" on
page10:
Risks of Conversion to Euro. On January 1, 1999, eleven countries in
the European Monetary Union will adopt the euro as their official
currency. However, their current currencies (for example, the franc, the
mark, and the lire) will also continue in use until January 1, 2002. After
that date, it is expected that only the euro will be used in those
countries. A common currency is expected to confer some benefits in those
markets, by consolidating the government debt market for those countries
and reducing some currency risks and costs. But the conversion to the new
currency will affect the Fund operationally and also has potential risks,
some of which are listed below. Among other things, the conversion will
affect:
issuers in which the Fund invests, because of changes in the competitive
environment from a consolidated currency market and greater operational costs
from converting to the new currency. This might depress stock values.
vendors the Fund depends on to carry out its business, such as its Custodian
(which holds the foreign securities the Fund buys), the Manager (which must
price the Fund's investments to deal with the conversion to the euro) and
brokers, foreign markets and securities depositories. If they are not prepared,
there could be delays in settlements and additional costs to the Fund.
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exchange contracts and derivatives that are outstanding during the
transition to the euro. The lack of currency rate calculations between the
affected currencies and the need to update the Fund's contracts could pose
extra costs to the Fund.
The Manager is upgrading (at its expense) its computer and
bookkeeping systems to deal with the conversion. The Fund's Custodian has
advised the Manager of its plans to deal with the conversion, including
how it will update its record keeping systems and handle the
redenomination of outstanding foreign debt. The Fund's portfolio manager
will also monitor the effects of the conversion on the issuers in which
the Fund invests. The possible effect of these factors on the Fund's
investments cannot be determined with certainty at this time, but they may
reduce the value of some of the Fund's holdings and increase its
operational costs.
September 25, 1998 PS0815.002
