OPPENHEIMER DISCOVERY FUND
Supplement dated September 25, 1998 to the
Statement of Additional Information dated January 15, 1998
The supplement dated May 15, 1998 to the Statement of Additional Information is
replaced by this supplement.
1. The following is added after the paragraph captioned "Risks of Foreign
Investing" on page
3:
- 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: o
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. o 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. o 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.
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2. The section captioned APortfolio Management@ under AThe Manager and Its
Affiliates on page 22 is revised to read as follows:
O Portfolio Management. The Portfolio Managers of the Fund are Jay W.
Tracey, III and Alan Gilston, who are principally responsible for the
day-to-day management of the Fund=s portfolio. Messrs. Tracey's and
Gilston=s background is described in the Prospectus under APortfolio
Managers.@ Other members of the Manager=s Equity Portfolio Department
provide the portfolio managers with counsel and support in managing the
Fund=s portfolio.
3. The third sentence of the fourth paragraph in the section entitled AHow To
Exchange Shares@ on page 44 is revised to read as follows:
However, if you redeem Class A shares of the Fund that were acquired by
exchange of Class A shares of other Oppenheimer funds purchased subject to
a Class A contingent deferred sales charge within 18 months of the end of
the calendar month of the purchase of the exchanged Class A shares, the
Class A contingent deferred sales charge is imposed on the redeemed shares
(see "Class A Contingent Deferred Sales Charge" in the Prospectus). (A
different holding period may apply to shares purchased prior to June 1,
1998).
September 25, 1998 PX0500.008
