OPPENHEIMER TAX-FREE BOND FUND
Supplement dated January 3, 1995 to the
Prospectus dated May 1, 1994
The Prospectus is amended as follows:
1.The supplement dated July 1, 1994 to the Prospectus is hereby
superseded.
2.As of July 1, 1994, the Fund's shareholders have approved a Service Plan
for Class A shares under Rule 12b-1 of the Investment Company Act of 1940
that applies to all Class A shares of the Fund, regardless of the date on
which the shares were purchased.
3.The column captioned "Class A Shares" within the table on page three
under the caption "Annual Fund Operating Expenses" is deleted and replaced
with the following that shows the Fund's Annual Operating Expenses as if
the Service Plan for Class A shares had been in effect for the Fund's
fiscal year ended December 31, 1993.
Class A
Shares
Management Fees 0.54%
12b-1 Distribution and/or Service
Plan Fees (restated) 0.23%*
Other Expenses 0.14%
Total Fund Operating
Expenses (restated) 0.91%
*Service Plan fees only.
4.The section captioned "Examples" on pages three and four is deleted and
replaced with the following:
Examples. To try to show the effect of these expenses on an
investment over time, we have created the hypothetical examples
shown below. Assume that you make a $1,000 investment in each class
of shares of the Fund, and that the Fund's annual return is 5%, and
that its operating expenses for each class are the ones shown in the
chart above. If you were to redeem your shares at the end of each
period shown below, your investment would incur the following
expenses by the end of each period shown:
1 year 3 years 5 years 10 years(1)
Class A Shares $56 $75 $96 $154
Class B Shares $68 $85 $114 $163
If you did not redeem your investment, it would incur the following
expenses:
Class A Shares $56 $75 $96 $154
Class B Shares $18 $55 $94 $163
(1) The Class B expenses in years 7 through 10 are based on the Class
A expenses shown above, because the Fund automatically converts your
Class B shares into Class A shares after 6 years. Long-term Class B
shareholders could pay the economic equivalent of more than the maximum
front-end sales charge allowed under applicable regulations, because of
the effect of the asset-based sales charge and contingent deferred
sales charge. The automatic conversion is designed to minimize the
likelihood that this will occur. Please refer to "How to Buy Shares -
Class B Shares" for more information.
These examples show the effect of expenses on an investment, but
are not meant to state or predict actual or expected costs or
investment returns of the Fund, all of which will vary.
5. (a) The section captioned "At What Price Are Shares
Sold?" under "How to Buy Shares" on page 14 is amended to
change the time of day at which the net asset value is
determined, by revising the second sentence to read as
follows: "In most cases, to enable you to receive that
day's offering price, the Distributor must receive your
order by the time of day The New York Stock Exchange
closes, which is normally 4:00 P.M., New York time, but
may be earlier on some days (all references to time in
this Prospectus mean "New York time")."
(b) The fourth sentence of the section captioned "At What Price Are
Shares Sold?" under "How to Buy Shares" on page 14 is revised to read
as follows: "If you buy shares through a dealer, the dealer must
receive your order by the close of The New York Stock Exchange on a
regular business day and transmit it to the Distributor so that it is
received before the Distributor's close of business that day, which is
normally 5:00 P.M."
6. The second sentence of the section captioned "Selling
Shares by Telephone" under "How to Sell Shares" on page 19
is revised to read as follows: "To receive the redemption
price on a regular business day, your call must be
received by the Transfer Agent by the close of The New
York Stock Exchange that day, which is normally 4:00 P.M.,
but may be earlier on some days."
7. The section captioned "How To Exchange Shares" on page 20
is amended by revising the first sentence in the first
"bulleted" paragraph following "Telephone Exchange
Requests" to read as two sentences as follows: "Shares are
normally redeemed from one fund and purchased from the
other fund in the exchange transaction on the same regular
business day on which the Transfer Agent receives an
exchange request that is in proper form by the close of
The New York Stock Exchange that day, which is normally
4:00 P.M. but may be earlier on some days. However,
either fund may delay the purchase of shares of the fund
you are exchanging into if it determines it would be
disadvantaged by a same-day transfer of the proceeds to
buy shares."
8. The first sentence of the section captioned "Net Asset
Value Per Share" under "Shareholder Account Rules and
Policies" on page 21 is revised to read as follows: "Net
Asset Value Per Share is determined for each class of
shares as of the close of The New York Stock Exchange on
each regular business day 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."
January 3, 1995
<PAGE>
OPPENHEIMER TAX-FREE BOND FUND
Supplement dated January 3, 1995
to the Statement of Additional Information dated May 1, 1994
The Statement of Additional Information is amended as follows:
1. The first sentence of the section entitled "Determination of Net
Asset Value Per Share" under "How to Buy Shares" on page 26 is
amended to read as follows, and a new second sentence is added
to that section as follows: "The net asset values per share of
Class A and Class B shares of the Fund are determined as of the
close of business of The New York Stock Exchange (the "NYSE")
on each day that the NYSE is open by dividing the Fund's net
assets attributable to a class by the number of shares of that
class that are outstanding. The NYSE normally closes at 4:00
P.M., New York time, but may close earlier on some days (for
example, in case of weather emergencies or on days falling
before a holiday)."
2. The section entitled "AccountLink" under "How to Buy Shares" on
page 27 is revised by replacing the text after the second
sentence with the following: "Dividends will begin to accrue
on shares purchased by 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 NYSE. The NYSE
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 NYSE, 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. The Distributor
and the Fund are not responsible for any delays in purchasing
shares resulting from delays in ACH transmissions."
3. The second sentence of the section entitled "Special
Arrangements for Repurchase of Shares from Dealers and Brokers"
under "How to Sell Shares" on page 32 is amended to read as
follows: "The repurchase price per share will be the net asset
value next computed after the Distributor receives the order
placed by the dealer or broker, except that if the Distributor
receives a repurchase order from a dealer or broker after the
close of the NYSE 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 customer prior to the
time the NYSE closes (normally, that is 4:00 P.M., but may be
earlier on some days) and the order was transmitted to and
received by the Distributor prior to its close of business that
day (normally 5:00 P.M.)."
January 3, 1995
