[photo of highway]
Annual Report September 30, 2000
Oppenheimer
Intermediate Municipal Fund
[logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
Fears of higher inflation and rising yields early in the period gave way to a
more positive outlook and a bond market rally by the end of the reporting
period.
The Treasury and municipal markets, which generally move in tandem, decoupled
during the second half of the year.
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Managers
7 Fund Performance
12 Financial
Statements
30 Independent
Auditors' Report
31 Federal
Income Tax
Information
32 Officers and
Trustees
Average Annual
Total Returns*
For the 1-Year Period
Ended 9/30/00
Class A
Without With
Sales Chg. Sales Chg.
--------------------------
2.48% -1.11%
Class B
Without With
Sales Chg. Sales Chg.
--------------------------
1.71% -2.17%
Class C
Without With
Sales Chg. Sales Chg.
--------------------------
1.71% 0.74%
*See Notes on page 10 for further details.
<PAGE>
PRESIDENT'S LETTER
[photo]
James C. Swain
Chairman
Oppenheimer
Intermediate
Municipal Fund
Bridget A. Macaskill
President
Oppenheimer
Intermediate
Municipal Fund
Dear Shareholder,
Over the past several decades, our investment teams have learned the importance
of avoiding complacency when it comes to navigating the financial
markets--especially when times are good. Right now, times appear particularly
good. The U.S. economy is in its tenth year of expansion. In the bond market,
U.S. Treasury issues have been performing favorably over the past year. In
addition, despite volatility in the second quarter, the stock market has been
providing attractive returns from a wide spectrum of industry sectors,
capitalization ranges and investment styles.
We have arrived at this juncture after months of monitoring the rapid pace
of global economic growth and its implications for inflation, as well as the
Federal Reserve Board's evolving monetary policy. At this point, economic
indicators suggest a dampening of short-term inflationary pressures. While
recent increases in oil prices are certainly taking their toll, we don't believe
this signals a return to 1970's-style inflation. Accordingly, if the Fed
continues in its diligence, the economy could maintain its healthy rate of
growth.
In the bond market, the achievement of a federal budget surplus has
prompted the Treasury to buy back many of its long-term securities. The
resulting supply shortage boosted these securities' returns, causing an
inversion of the yield curve--an unusual situation in which shorter term
Treasuries yield more than their longer term counterparts. Other bond sectors
are offering many opportunities in the form of attractive valuations.
Perhaps most important is that we have begun to see encouraging signs in
the stock market. Formerly high-flying Internet stocks have generally come down
to earth, and investors have
1 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
PRESIDENT'S LETTER
begun to refocus on companies with strong business fundamentals and justifiable
valuations. Investors have also returned to long-neglected, value-oriented
companies.
What else do these various trends tell us? They tell us that the ability to
discriminate between long-term potential and short-lived fads has become more
critical than ever. Trying to generate good long-term performance requires
tracking the best companies through intensive research, combined with
hard-earned experience.
At OppenheimerFunds, our seasoned portfolio management teams fight
complacency by remaining constantly aware of the risks that face the economy and
financial markets. Virtually anything could affect the overall markets--a surge
in inflation, a decline in productivity, deteriorating corporate earnings, or
even the new Administration's proposals regarding tax reform, healthcare and
Social Security. However, by remaining vigilant in our quest for fundamentally
sound businesses, we believe we can find good investments that can weather
market volatility.
In this environment, we encourage you to consult your financial advisor and
to stay on track with your long-term financial plan. For our part, we will
continue to monitor the opportunities and risks ever present in the financial
markets. Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest.
Sincerely,
/s/James C. Swain /s/Bridget A. Macaskill
James C. Swain Bridget A. Macaskill
October 20, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and are
not intended to predict or depict performance of the securities markets or any
particular fund. Specific discussion, as it applies to your Fund, is contained
in the pages that follow. Stocks and bonds have different types of investment
risks; stocks are subject to market volatility and bonds are subject to credit
and interest rate risks.
2 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
[photo]
Portfolio
Management Team(1)
Jerry Webman
Merrell Hora
Q How would you characterize the Fund's performance for the fiscal year that
ended September 30, 2000?
The past year was a challenging period for municipal markets and Oppenheimer
Intermediate Municipal Fund. Following nearly three calendar quarters of general
weakness, the municipals market rallied after May 2000. The Fund, however, was
positioned defensively and as a result did not participate in most of the
market's rally. On a tax-free yield basis, the Fund's Class A shares tax-free
yield at net asset value, at 5.04%, was attractive in relation to comparable
U.S. Treasury securities. Indeed, for investors in the top federal income tax
bracket, that works out to a taxable equivalent yield of 8.34%.(2)
Why was the period "challenging" at the onset? Why did it change later on?
Initially, heated economic growth gave rise to concerns that the rate of
inflation might accelerate. Responding to the prospect of higher inflation,
investors demanded higher yields from all fixed income securities. Since bond
yields and prices move in opposite directions, the value of most bonds fell.
To preempt the possibility of faster inflation, the Federal Reserve Board
(the Fed) boosted key short-term interest rates by 0.25% in November 1999 as
well as in February and March 2000. By April, early signs of a slowdown in the
U.S. economy took some of the pressure off bond yields. Finally, in May 2000,
the Fed raised short-term rates by an additional 0.50%, the strongest such
action since 1994.
Investors were reassured by this event, as well as by two other factors.
First, some believed that in order to deal with higher prices for gasoline and
heating fuel, consumers would be forced to reduce their discretionary spending,
which would further cool the economy.
1. Effective August 28, 2000, Jerry Webman and Merrell Hora are managing the
Fund.
2. Dividend yields are calculated based on net asset value (NAV), are annualized
and divided by the offering price as of the Fund's distribution date on 9/7/00.
Dividend yields at NAV do not include sales charge. Falling share prices will
tend to artificially raise yields.
3 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Second, economic expansion in other nations slowed after early 2000,
prompting foreign investors to look to the strongest investment markets--those
in the United States--as an alternative. By June 2000, the market rallied as
investor demand pushed municipal prices up and yields down to levels not seen
since 1998. The effect was most pronounced for issues with longer maturities
(e.g., 20 to 30 years). However, the Fund was affected somewhat, as there were
only limited opportunities available for increasing the Fund's yield.
What other factors played a significant role?
Beginning in February, the U.S. Treasury used surplus funds in the federal
government's budget to buy back long-term government bonds. As the supply of
these relatively safe investments dwindled, their prices rose. Normally, prices
and yields on municipal bonds follow the direction of Treasuries, but that was
not the case between February and April 2000; Treasury prices rose sharply while
prices for municipal securities remained level or declined.
This decoupling of the Treasury and municipal markets was important to the
Fund's results because, for some time now, we have pursued a strategy of hedging
the portfolio with Treasury futures. We have invested in lower quality and/or
longer term municipal bonds for the relatively higher yields they provided. To
offset the greater risk associated with these securities, we have added higher
quality Treasury-related issues (futures) that had the potential to generate
income for the Fund if prices of Treasury securities fell. As long as interest
rates continued to rise and bond prices to decline (the general pattern after
mid-1998), this strategy worked well.
Unfortunately, when Treasury prices rose and yields dropped as a result of
the buyback program, the Fund's Treasury futures hampered performance. Also, as
municipals lagged behind Treasuries, our focus on higher yielding securities and
those with longer maturities hurt results.
[callout]
"We believe healthcare now offers some genuine opportunities, so we have
invested in a small number of higher yielding hospital bonds that we believe
offer particular promise."
4 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
How did you respond to this?
We limited our use of Treasury futures and shifted our emphasis to municipal
securities with shorter maturities. The latter performed well in the
municipal-market rally that occurred after May, though not as well as longer
term issues.
While we have been generally more cautious in recent months, we have
selectively added to the Fund's high yield holdings in one area: healthcare. It
is fair to say that this sector has been problematic for several years. Changes
in Medicaid and Medicare reimbursements sent a shock through the healthcare
system and hurt the profitability of many hospitals and HMOs. In our view,
however, the entire sector has been so beaten down that it now offers some
genuine opportunities, so we have invested in a small number of higher yielding
hospital bonds that we believe are particularly promising.
What do you anticipate for the economy, municipal markets and the Fund in the
coming months?
We look for the economy to decelerate gradually to a more manageable level of
growth, which should ease the concerns about inflation and give the Fed little
reason to increase short-term interest rates any time soon. If we are correct,
then municipal bond yields may fall slightly and prices for high yield bonds may
improve somewhat (relative to higher quality issues). As for the Fund, it is now
more conservatively positioned than in the recent past but should continue to
provide attractive rates of tax-exempt current income. That is what makes
Oppenheimer Intermediate Municipal Fund part of The Right Way to Invest.
Average Annual
Total Returns
For the Periods Ended 9/30/00(3)
Class A
1-Year 5-Year 10-Year
-------------------------------
-1.11% 3.92% 6.02%
Class B Since
1-Year 5-Year Inception
-------------------------------
-2.17% 3.70% 3.85%
Class C Since
1-Year 5-Year Inception
-------------------------------
0.74% 3.87% 3.62%
-------------------------------
Standardized Yields(4)
For the 30 Days Ended 9/30/00
-------------------------------
Class A 4.74%
-------------------------------
Class B 4.15
-------------------------------
Class C 4.15
3. See notes on page 10 for further details.
4. Standardized yield is based on net investment income for the 30-day period
ended September 30, 2000. Falling share prices will tend to artificially raise
yields.
5 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGERS
Top Ten Largest Positions By State(6)
-----------------------------------------------------------
New York 16.7%
-----------------------------------------------------------
Pennsylvania 11.8
-----------------------------------------------------------
California 9.7
-----------------------------------------------------------
Michigan 6.6
-----------------------------------------------------------
New Hampshire 3.8
-----------------------------------------------------------
U.S. Possessions 3.6
-----------------------------------------------------------
Arizona 3.6
-----------------------------------------------------------
Illinois 3.4
-----------------------------------------------------------
Connecticut 3.2
-----------------------------------------------------------
New Jersey 3.1
Credit Allocation(5)
[pie chart]
AAA 36.0%
AA 4.1
A 15.6
BBB 27.0
BB 10.9
B 6.2
CC 0.2
5. Portfolio data is subject to change. Percentages are as of September 30,
2000, and are dollar-weighted based on total market value of investments.
Securities rated by any rating organization are included in the equivalent
Standard & Poor's rating category. Average credit quality and allocation include
rated securities and those not rated by a national rating organization
(currently 26.07% of total investments) but which the ratings given above have
been assigned by the Manager for internal purposes as being comparable, in the
Manager's judgment, to securities rated by a rating agency in the same category.
6. Portfolio data is subject to change. Percentages are as of September 30,
2000, and are based on net assets.
6 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
FUND PERFORMANCE
How has the Fund performed? Below is a discussion by OppenheimerFunds, Inc. of
the Fund's performance during its fiscal year ended September 30, 2000, followed
by a graphical comparison of the Fund's performance to an appropriate
broad-based market index.
Management's discussion of performance. During the fiscal year that ended
September 30, 2000, Oppenheimer Intermediate Municipal Fund underperformed the
municipal market and its peer group. A weak bond market throughout much of the
period can be attributed to signs of strong economic growth that historically
have led to higher rates of inflation. Following a series of interest rate hikes
by the Federal Reserve, signals of a less robust economy and thus, less
inflationary pressure, a bond market rally ensued. Adding to the strength of the
rally was an increase in demand from foreign investors seeking the relative
safety of U.S. securities as economic expansion overseas decelerated. The Fund's
relative underperformance can be attributed to a relatively long average
maturity in its portfolio and relatively high allocation to high yield bonds
when interest rates and yields were rising (and prices falling) late in 1999 and
early in 2000, and to the use of a Treasury-related hedging strategy that proved
less profitable during the past year than in prior periods. In the final fiscal
quarter, the Fund was positioned more conservatively (i.e., shorter average
maturity and less hedging) and so did not participate as fully as it might have
in the municipal market rally that occurred in May.
Comparing the Fund's performance to the market. The graphs that follow show the
performance of a hypothetical $10,000 investment in each class of shares of the
Fund held until September 30, 2000. In the case of Class A shares, performance
is measured over a ten-year period. In the case of Class B shares, performance
is measured from inception of the Class on September 11, 1995. In the case of
Class C shares, performance is measured from inception of the Class on December
1, 1993. The Fund's performance reflects the deduction of the 3.50% maximum
initial sales charge on Class A shares, and the 4% (1-year) and 1% (since
inception) applicable contingent deferred sales charge for Class B, and the 1%
(1-year) contingent deferred sales charge for Class C shares. The graphs assume
that all dividends and capital gains distributions were reinvested in additional
shares.
The Fund's performance is compared to the performance of that of the Lehman
Brothers Municipal Bond Index, an unmanaged index of a broad range of investment
grade municipal bonds that is widely regarded as a measure of the performance of
the general municipal bond market.
Index performance reflects the reinvestment of dividends but does not
consider the effect of capital gains or transaction costs, and none of the data
in the graphs that follow shows the effect of taxes. The Fund's performance
reflects the effects of Fund business and operating expenses. While index
comparisons may be useful to provide a benchmark for the Fund's performance, it
must be noted that the Fund's investments are not limited to the securities in
the index.
7 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
FUND PERFORMANCE
Class A Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Intermediate Municipal Fund (Class A) Lehman Brothers Municipal Bond Index
<S> <C> <C>
09/30/90 9,650 10,000
12/31/90 10,077 10,431
03/31/91 10,291 10,667
06/30/91 10,501 10,895
09/30/91 10,924 11,319
12/31/91 11,272 11,698
03/31/92 11,314 11,733
06/30/92 11,775 12,177
09/30/92 12,136 12,502
12/31/92 12,323 12,729
03/31/93 12,701 13,202
06/30/93 12,956 13,634
09/30/93 13,366 14,095
12/31/93 13,545 14,293
03/31/94 12,923 13,508
06/30/94 13,058 13,657
09/30/94 13,133 13,751
12/31/94 12,954 13,554
03/31/95 13,593 14,512
06/30/95 13,894 14,862
09/30/95 14,287 15,289
12/31/95 14,690 15,920
03/31/96 14,684 15,728
06/30/96 14,781 15,849
09/30/96 15,060 16,212
12/31/96 15,433 16,625
03/31/97 15,493 16,585
06/30/97 15,921 17,157
09/30/97 16,373 17,674
12/31/97 16,826 18,153
03/31/98 16,995 18,362
06/30/98 17,156 18,642
09/30/98 17,705 19,214
12/31/98 17,859 19,329
03/31/99 17,979 19,501
06/30/99 17,606 19,156
09/30/99 17,513 19,080
12/31/99 17,245 18,932
03/31/00 17,496 19,485
06/30/00 17,585 19,780
09/30/00 17,947 20,258
</TABLE>
Average Annual Total Return of Class A Shares of the Fund at 9/30/00(1)
1-Year -1.11% 5-Year 3.92% 10-Year 6.02%
Class B Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Intermediate Municipal Fund (Class B) Lehman Brothers Municipal Bond Index
<S> <C> <C>
09/11/95 10,000 10,000
09/30/95 10,011 10,063
12/31/95 10,276 10,479
03/31/96 10,250 10,353
06/30/96 10,295 10,432
09/30/96 10,469 10,671
12/31/96 10,708 10,943
03/31/97 10,729 10,917
06/30/97 11,004 11,293
09/30/97 11,295 11,633
12/31/97 11,585 11,949
03/31/98 11,680 12,086
06/30/98 11,769 12,270
09/30/98 12,122 12,647
12/31/98 12,196 12,723
03/31/99 12,263 12,636
06/30/99 11,978 12,609
09/30/99 11,900 12,559
12/31/99 11,687 12,461
03/31/00 11,835 12,825
06/30/00 11,881 13,019
09/30/00 12,103 13,334
</TABLE>
Average Annual Total Return of Class B Shares of the Fund at 9/30/00(1)
1-Year -2.17% 5-Year 3.70% Life 3.85%
1. See page 10 for further details.
8 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
Class C Shares
Comparison of Change in Value of $10,000 Hypothetical Investments in:
<TABLE>
<CAPTION>
Oppenheimer Intermediate Municipal Fund (Class C) Lehman Brothers Municipal Bond Index
<S> <C> <C>
12/01/93 10,000 10,000
12/31/93 10,168 10,211
03/31/94 9,651 9,651
06/30/94 9,719 9,757
09/30/94 9,748 9,824
12/31/94 9,590 9,683
03/31/95 10,072 10,368
06/30/95 10,273 10,617
09/30/95 10,541 10,923
12/31/95 10,819 11,374
03/31/96 10,794 11,237
06/30/96 10,844 11,323
09/30/96 11,029 11,582
12/31/96 11,281 11,877
03/31/97 11,304 11,849
06/30/97 11,595 12,257
09/30/97 11,894 12,626
12/31/97 12,200 12,969
03/31/98 12,300 13,118
06/30/98 12,394 13,318
09/30/98 12,767 13,727
12/31/98 12,854 13,809
03/31/99 12,916 13,932
06/30/99 12,623 13,686
09/30/99 12,533 13,631
12/31/99 12,317 13,525
03/31/00 12,473 13,921
06/30/00 12,522 14,131
09/30/00 12,747 14,473
</TABLE>
Average Annual Total Return of Class C Shares of the Fund at 9/30/00(1)
1-Year 0.74% 5-Year 3.87% Life 3.62%
The performance information for the Lehman Brothers Municipal Bond Index in the
graphs begins on 9/30/90 for Class A, 8/31/95 for Class B and 11/30/93 for Class
C.
Past performance is not predictive of future performance. Graphs are not drawn
to the same scale.
9 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
NOTES
In reviewing performance and rankings, please remember that past performance
does not guarantee future results. Investment return and principal value of an
investment in the Fund will fluctuate so that an investor's shares, when
redeemed, may be worth more or less than the original cost. Because of ongoing
market volatility, the Fund's returns may fluctuate and current returns may be
less than the results shown as of 9/30/00. For quarterly updates on the Fund's
performance, please contact your financial advisor, call us at 1.800.525.7048 or
visit our website at www.oppenheimerfunds.com.
Total returns and the ending account values in the graphs include changes in
share price and reinvestment of dividends and capital gains distributions in a
hypothetical investment for the periods shown. The Fund's total returns shown do
not show the effects of income taxes on an individual's investment. Taxes may
reduce your actual investment returns on income or gains paid by the Fund or any
gains you may realize if you sell your shares.
Class A shares were first publicly offered on 11/11/86. Unless otherwise noted,
Class A returns include the current maximum initial sales charge of 3.50%. The
Fund's maximum sales charge for Class A shares was lower prior to 2/1/92, so
actual performance may have been higher.
Class B shares of the Fund were first publicly offered on 9/11/95. Unless
otherwise noted, Class B returns include the applicable contingent deferred
sales charge of 4% (1-year) and 1% (since inception). Class B shares are subject
to an annual 0.75% asset-based sales charge.
Class C shares of the Fund were first publicly offered on 12/1/93. Unless
otherwise noted, Class C returns include the contingent deferred sales charge of
1% for the 1-year period. Class C shares are subject to an annual 0.75%
asset-based sales charge.
An explanation of the calculation of performance is in the Fund's Statement of
Additional Information.
10 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
Financials
11 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS September 30, 2000
<TABLE>
<CAPTION>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
================================================================================================
<S> <C> <C> <C>
Municipal Bonds and Notes--97.8%
------------------------------------------------------------------------------------------------
Alaska--1.0%
AK HFA RB, Series A-2, 5.65%, 12/1/10 Aaa/AAA/AAA $1,300,000 $ 1,333,384
------------------------------------------------------------------------------------------------
Arizona--3.6%
AZ Educational LMC RRB, Jr. Subseries,
6.30%, 12/1/08 NR/NR/BBB 3,155,000 3,300,887
------------------------------------------------------------------------------------------------
AZ HFAU RB, Catholic Healthcare West,
6.125%, 7/1/09 Baa1/BBB+ 1,500,000 1,515,810
-----------
4,816,697
------------------------------------------------------------------------------------------------
California--9.7%
Berkeley, CA HF RRB, Alta Bates Medical
Center, Prerefunded, Series A, 6.50%, 12/1/11 A2/NR 2,845,000 2,985,401
------------------------------------------------------------------------------------------------
CA SCDAU Revenue Refunding COP,
Cedars-Sinai Medical Center, MBIA
Insured, 6.50%, 8/1/12 Aaa/AAA 1,000,000 1,131,860
------------------------------------------------------------------------------------------------
CA SCDAU Revenue Refunding COP,
Inverse Floater, 6.359%, 11/1/15(1) A1/NR 3,500,000 3,539,375
------------------------------------------------------------------------------------------------
Folsom, CA CFD No. 10 SPTX Bonds,
6.30%, 9/1/12 NR/NR 1,625,000 1,704,316
------------------------------------------------------------------------------------------------
Riverside Cnty., CA Refunding COP,
Air Force Village West, Inc.,
Prerefunded, Series A, 8.125%, 6/15/12 NR/NR 2,290,000 2,475,879
------------------------------------------------------------------------------------------------
Sacramento, CA Cogeneration RB,
Procter & Gamble Cogeneration Project,
Prerefunded, 6.375%, 7/1/10 NR/AAA 600,000 662,922
------------------------------------------------------------------------------------------------
Sacramento, CA Cogeneration RB,
Procter & Gamble Cogeneration Project,
Unrefunded Balance, 6.375%, 7/1/10 NR/BBB-/BBB 500,000 534,880
-----------
13,034,633
------------------------------------------------------------------------------------------------
Colorado--2.4%
Denver, CO City & Cnty. Airport RB,
6.197%, 11/15/14(2,3) A2/NR 1,000,000 1,088,560
------------------------------------------------------------------------------------------------
Denver, CO City & Cnty. Airport RB,
6.197%, 11/15/15(2,3) NR/NR 1,500,000 1,611,540
------------------------------------------------------------------------------------------------
Meridian Metropolitan District, CO
GORB, 7.50%, 12/1/11 A3/NR 500,000 517,755
-----------
3,217,855
12 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
----------------------------------------------------------------------------------------------------
Connecticut--3.2%
CT DAU RB, Mystic Marinelife Aquarium
Project, Series A, 6.875%, 12/1/17 NR/NR $1,000,000 $1,009,950
----------------------------------------------------------------------------------------------------
Mashantucket, CT Western Pequot Tribe
Special RB, Prerefunded, Series A, 6.50%, 9/1/05(2) Aaa/AAA 1,240,000 1,345,797
----------------------------------------------------------------------------------------------------
Mashantucket, CT Western Pequot Tribe
Special RB, Sub. Lien, Series B, 5.60%, 9/1/09(2) Baa3/NR 600,000 599,550
----------------------------------------------------------------------------------------------------
Mashantucket, CT Western Pequot Tribe
Special RB, Unrefunded Balance, Series A,
6.50%, 9/1/05(2) NR/BBB- 1,260,000 1,336,432
----------
4,291,729
----------------------------------------------------------------------------------------------------
Delaware--0.8%
DE EDAU RB, Student Housing University
Courtyard Project, Series A, 5.75%, 8/1/14 NR/AA 1,080,000 1,083,791
----------------------------------------------------------------------------------------------------
Florida--1.8%
FL HFA MH RRB, Series C, 6%, 8/1/11 NR/AAA 1,000,000 1,027,560
----------------------------------------------------------------------------------------------------
Grand Haven, FL CDD SPAST Bonds, Series A,
6.30%, 5/1/02 NR/NR 1,361,000 1,366,498
----------
2,394,058
----------------------------------------------------------------------------------------------------
Hawaii--2.9%
HI Airport System RB, 6.197%, 7/1/20(2,3) NR/NR 2,700,000 2,804,463
----------------------------------------------------------------------------------------------------
HI Airport System RRB, Series B, FGIC Insured,
6.50%, 7/1/15 Aaa/AAA/AAA 1,000,000 1,081,540
----------
3,886,003
----------------------------------------------------------------------------------------------------
Illinois--3.4%
Chicago, IL BOE GOB, Chicago School Reform
Project, MBIA Insured, 6.25%, 12/1/11 Aaa/AAA/A- 1,000,000 1,105,470
----------------------------------------------------------------------------------------------------
IL Development FAU SWD RB, Waste
Management, Inc. Project, 5.05%, 1/1/10 NR/BBB 1,035,000 909,382
----------------------------------------------------------------------------------------------------
IL HFAU RRB, Franciscan Sisters Health Care
Project, Escrowed to Maturity, Series C, MBIA
Insured, 6%, 9/1/19 Aaa/AAA 2,000,000 2,105,520
----------------------------------------------------------------------------------------------------
Southwestern IL DAU Hospital RB, St. Elizabeth
Medical Center, 8%, 6/1/10 NR/A 500,000 510,995
----------
4,631,367
----------------------------------------------------------------------------------------------------
Indiana--2.9%
IN Bond Bank RB, State Revolving Fund Program,
Series A, 6.875%, 2/1/12 NR/AAA 1,135,000 1,237,400
----------------------------------------------------------------------------------------------------
Indianapolis, IN Airport Authority RB, SPF Federal
Express Corp. Project, 7.10%, 1/15/17 Baa2/BBB 2,500,000 2,637,850
----------
3,875,250
13 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
-----------------------------------------------------------------------------------------------------
Kentucky--0.7%
Kenton Cnty., KY AB RB, SPF Delta Airlines Project,
Series A, 6.125%, 2/1/22 Baa3/BBB- $ 910,000 $ 874,865
-----------------------------------------------------------------------------------------------------
Maine--0.6%
ME Educational LMC Student Loan RRB,
Series A-4, 6.05%, 11/1/04 Aaa/NR/AAA 750,000 780,660
-----------------------------------------------------------------------------------------------------
Massachusetts--1.9%
MA POAU RB, Series 1999A, 5.75%, 10/1/29 Baa3/BB+ 2,500,000 2,485,775
-----------------------------------------------------------------------------------------------------
Michigan--6.6%
Detroit, MI GORB, Series B, FGIC Insured,
7%, 4/1/04 Aaa/AAA/AAA 2,000,000 2,148,740
-----------------------------------------------------------------------------------------------------
MI Building Authority RRB, Series I, MBIA-IBC
Insured, 6.25%, 10/1/20 Aaa/AAA/AA 1,000,000 1,022,320
-----------------------------------------------------------------------------------------------------
MI Hospital FAU RRB, Greater Detroit Sinai Hospital,
Series 1995, 6%, 1/1/08 Baa3/NR/A- 2,500,000 2,360,675
-----------------------------------------------------------------------------------------------------
MI Strategic Fund SWD RRB, Genesee Power Station
Project, 7.50%, 1/1/21 NR/NR 2,000,000 2,061,040
-----------------------------------------------------------------------------------------------------
Romulus, MI Community Schools RB, 6%, 5/1/12 Aaa/AAA 1,250,000 1,328,725
----------
8,921,500
-----------------------------------------------------------------------------------------------------
Missouri--1.9%
St. Louis, MO Airport RB, 6%, 1/1/04 Baa3/BBB- 1,250,000 1,264,012
-----------------------------------------------------------------------------------------------------
St. Louis, MO Airport RB, 6%, 1/1/08 Baa3/BBB- 1,250,000 1,255,062
----------
2,519,074
-----------------------------------------------------------------------------------------------------
Nebraska--0.9%
NE Higher Education Loan Program RB,
Jr. Sub. Lien, Series A-6, MBIA Insured,
5.90%, 6/1/03 Aaa/AAA/AAA 1,165,000 1,194,544
-----------------------------------------------------------------------------------------------------
New Hampshire--3.8%
Manchester, NH Redevelopment & HAU RB,
Series A, 6.75%, 1/1/14 Baa3/A/A 2,000,000 2,124,420
-----------------------------------------------------------------------------------------------------
NH Business PCFAU RRB, UTD Illuminating Co.,
5.40%, 12/1/02 Baa1/BBB+ 3,000,000 3,006,450
----------
5,130,870
-----------------------------------------------------------------------------------------------------
New Jersey--3.1%
NJ EDAU RRB, First Mtg. Franciscan Oaks Project,
5.60%, 10/1/12 NR/NR 2,500,000 2,255,725
-----------------------------------------------------------------------------------------------------
NJ EDAU RRB, First Mtg. Keswick Pines,
5.60%, 1/1/12 NR/NR 900,000 777,591
-----------------------------------------------------------------------------------------------------
NJ HCF FAU RB, Columbus Hospital, Series A,
7.50%, 7/1/21 B2/B 1,330,000 1,146,487
----------
4,179,803
14 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
----------------------------------------------------------------------------------------------------
New York--16.7%
Nassau Cnty., NY Improvement District Refunding
GOUN, Series F, 7%, 3/1/14 Aaa/AAA/AAA $ 2,000,000 $ 2,269,380
----------------------------------------------------------------------------------------------------
NYC GOB, Prerefunded, Series F, 8.40%, 11/15/07 Aaa/AAA/AAA 2,500,000 2,646,825
----------------------------------------------------------------------------------------------------
NYC IDAU SPF RB, Terminal One Group Assn
Project, 6%, 1/1/08 A3/A/A- 2,000,000 2,091,720
----------------------------------------------------------------------------------------------------
NYC IDAU SPF RB, Terminal One Group Assn
Project, 6.10%, 1/1/09 A3/A/A- 2,000,000 2,078,400
----------------------------------------------------------------------------------------------------
NYS DA RRB, Mount Sinai Health, Series A,
6.50%, 7/1/15 Baa1/BBB+/A- 1,000,000 1,073,130
----------------------------------------------------------------------------------------------------
NYS HFA RRB, NYC HF, Series A, 6.375%, 11/1/04 Baa1/A- 2,000,000 2,105,360
----------------------------------------------------------------------------------------------------
NYS MTAU Dedicated Tax Fund RB, Series A,
FGIC Insured, 6.125%, 4/1/14 Aaa/AAA/AAA 1,000,000 1,072,330
----------------------------------------------------------------------------------------------------
NYS Thruway Authority Service Contract RRB,
6%, 4/1/11 Baa1/AA- 2,500,000 2,647,500
----------------------------------------------------------------------------------------------------
Onondaga Cnty., NY IDA SWD Facility RRB,
Solvay Paperboard LLC Project, 6.80%, 11/1/14 NR/NR 5,000,000 4,811,500
----------------------------------------------------------------------------------------------------
TSASC, Inc., NY RB, 6%, 7/15/18 Aa1/A/A+ 1,675,000 1,686,524
-----------
22,482,669
----------------------------------------------------------------------------------------------------
Ohio--2.4%
Montgomery Cnty., OH HCF RRB, Series B,
6%, 2/1/10 NR/NR 1,000,000 942,480
----------------------------------------------------------------------------------------------------
OH Air Quality DAU RRB, PC Ohio Edison,
Series C, 5.80%, 6/1/04 Baa3/BB- 2,000,000 2,030,840
----------------------------------------------------------------------------------------------------
OH Solid Waste RB, Republic Engineered
Steels, Inc. Project, 9%, 6/1/21 NR/NR 1,600,000 316,224
-----------
3,289,544
----------------------------------------------------------------------------------------------------
Oklahoma--2.3%
OK Industrial Authority Health Systems RB,
Baptist Medical Center, Series C, AMBAC
Insured, 7%, 8/15/05 Aaa/AAA/AAA 955,000 1,052,964
----------------------------------------------------------------------------------------------------
Tulsa, OK Municipal Airport Trust RRB,
American Airlines/AMR Corp., 7.35%, 12/1/11 Baa2/BBB- 2,000,000 2,087,920
-----------
3,140,884
----------------------------------------------------------------------------------------------------
Pennsylvania--11.8%
Allegheny Cnty., PA HDAU RB, West Pennsylvania
Health System, Series B, 9.25%, 11/15/22 B1/B+/B+ 1,250,000 1,182,238
----------------------------------------------------------------------------------------------------
Carbon Cnty., PA IDAU RRB, Panther Creek
Partners Project, 6.65%, 5/1/10 NR/BBB- 2,000,000 2,038,140
----------------------------------------------------------------------------------------------------
Lehigh Cnty., PA GP RRB, Kidspeace Obligation
Group, 6%, 11/1/18 NR/NR 4,165,000 3,537,001
----------------------------------------------------------------------------------------------------
PA EDFAU RR RB, Northampton Generating,
Sr. Lien, Series A, 6.40%, 1/1/09 NR/BBB- 2,500,000 2,465,125
15 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
STATEMENT OF INVESTMENTS Continued
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
---------------------------------------------------------------------------------------------------
Pennsylvania Continued
Philadelphia, PA Airport RB, Inverse Floater,
4.957%, 6/15/12(1) NR/NR $2,000,000 $ 2,017,680
---------------------------------------------------------------------------------------------------
Philadelphia, PA Airport RB, Series 387B,
Inverse Floater, 4.937%, 6/15/14(1) NR/NR 1,960,000 1,907,335
----------------------------------------------------------------------------------------------------
Schuylkill Cnty., PA IDAU RR RRB, Schuylkill
Energy Resources, Inc., 6.50%, 1/1/10 NR/NR/BB+ 2,775,000 2,716,281
-----------
15,863,800
---------------------------------------------------------------------------------------------------
South Carolina--1.0%
Florence Cnty., SC IDV RB, Stone Container
Project, 7.375%, 2/1/07 NR/NR 1,385,000 1,389,861
---------------------------------------------------------------------------------------------------
Tennessee--2.0%
Chattanooga-Hamilton Cnty., TN HA RB,
Erlanger Medical Center, Prerefunded, Series B,
FSA Insured, Inverse Floater, 9.165%, 5/25/21(1) Aaa/AAA/AAA 1,500,000 1,595,625
---------------------------------------------------------------------------------------------------
Memphis Shelby Cnty., TN Airport Authority
RRB, Series A, MBIA Insured, 6.25%, 2/15/11 Aaa/AAA 1,000,000 1,084,580
-----------
2,680,205
---------------------------------------------------------------------------------------------------
Texas--2.7%
Dallas-Fort Worth, TX International Airport
Facilities Improvement Corp. RB, American
Airlines, Inc., 7.25%, 11/1/30 Baa1/BBB- 1,000,000 1,030,800
---------------------------------------------------------------------------------------------------
Matagorda Cnty., TX Navigation District No. 1
RRB, Series C, 5.20%, 5/1/29(3) Baa1/BBB+ 1,500,000 1,494,360
---------------------------------------------------------------------------------------------------
North Central TX HFDC RB, Series A, 7%,
11/15/10 NR/NR 1,100,000 1,075,382
-----------
3,600,542
---------------------------------------------------------------------------------------------------
Utah--1.6%
Davis Cnty., UT Solid Waste Management &
Recovery RRB, Special Service District,
Prerefunded, 6.125%, 6/15/09 Aaa/A 2,000,000 2,116,060
---------------------------------------------------------------------------------------------------
Vermont--0.7%
VT SAC Educational Loan RB, Series A-3, FSA
Insured, 6.25%, 6/15/03 Aaa/AAA/AAA 900,000 930,996
---------------------------------------------------------------------------------------------------
Washington--1.0%
Port Seattle, WA SPF RB, Series B, 5.75%, 9/1/14 Aaa/AAA/AAA 1,280,000 1,302,528
---------------------------------------------------------------------------------------------------
District of Columbia--0.8%
DC Hospital RRB, Medlantic Healthcare Group,
Series A, MBIA Insured, 6%, 8/15/12 Aaa/AAA/AAA 1,000,000 1,077,060
16 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
Ratings:
Moody's/ Market
S&P/Fitch Principal Value
(Unaudited) Amount See Note 1
-------------------------------------------------------------------------------------------------------
U.S. Possessions--3.6%
PR CMWLTH GOB, Prerefunded, 6.35%, 7/1/10 Aaa/AAA $1,500,000 $ 1,627,650
-------------------------------------------------------------------------------------------------------
PR Municipal FAU GOB, Series PA-638A,
6.779%, 8/1/13(2,3) NR/NR 1,925,000 2,185,145
-------------------------------------------------------------------------------------------------------
Virgin Islands PFAU RB, Series A, 5.625%, 10/1/10 NR/BBB- 1,000,000 1,018,370
------------
4,831,165
-------------------------------------------------------------------------------------------------------
Total Investments, at Value (Cost $131,359,302) 97.8% 131,357,172
-------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 2.2 2,928,957
----------------------------
Net Assets 100.0% $134,286,129
============================
</TABLE>
Footnotes to Statement of Investments
To simplify the listings of securities, abbreviations are used per the table
below:
<TABLE>
<S> <C>
AB Airport Board IDV Industrial Development
BOE Board of Education IDA Industrial Development Agency
CDD Community Development District IDAU Industrial Development Authority
CFD Community Facilities District LMC Loan Marketing Corp.
CMWLTH Commonwealth MH Multifamily Housing
COP Certificates of Participation MTAU Metropolitan Transportation Authority
DA Dormitory Authority NR Not Rated
DAU Development Authority NYC New York City
EDAU Economic Development Authority NYS New York State
EDFAU Economic Development Finance Authority PC Pollution Control
FAU Finance Authority PCFAU Pollution Control Finance Authority
GP General Purpose PFAU Public Finance Authority
GOB General Obligation Bonds POAU Port Authority
GORB General Obligation Refunding Bonds RB Revenue Bonds
GOUN General Obligation Unlimited Notes RR Resource Recovery
HA Hospital Authority RRB Revenue Refunding Bonds
HAU Housing Authority SAC Student Assistance Corp.
HCF Health Care Facilities SCDAU Statewide Communities
HDAU Hospital Development Authority Development Authority
HF Health Facilities SPAST Special Assessment
HFA Housing Finance Agency SPF Special Facilities
HFAU Health Facilities Authority SPTX Special Tax
HFDC Health Facilities Development Corp SWD Solid Waste Disposal
</TABLE>
1. Represents the current interest rate for a variable rate bond known as an
"inverse floater" which pays interest at a rate that varies inversely with
short-term interest rates. As interest rates rise, inverse floaters produce less
current income. Their price may be more volatile than the price of a comparable
fixed rate security. Inverse floaters amount to $9,060,015 or 6.75% of the
Fund's net assets as of September 30, 2000.
2. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Trustees. These securities amount to $10,971,487 or 8.17% of the Fund's net
assets as of September 30, 2000.
3. Represents the current interest rate for a variable or increasing rate
security.
As of September 30, 2000, securities subject to the alternative minimum tax
amount to $44,457,686 or 33.11% of the Fund's net assets.
See accompanying Notes to Financial Statements.
17 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES September 30, 2000
<TABLE>
===================================================================================================
<S> <C>
Assets
Investments, at value (cost $131,359,302)--see accompanying statement $131,357,172
---------------------------------------------------------------------------------------------------
Cash 993,694
---------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 2,357,407
Shares of beneficial interest sold 158,244
Other 13,019
------------
Total assets 134,879,536
===================================================================================================
Liabilities
Payables and other liabilities:
Dividends 378,730
Distribution and service plan fees 82,347
Shares of beneficial interest redeemed 43,880
Shareholder reports 43,230
Transfer and shareholder servicing agent fees 31,224
Trustees' compensation 2,779
Other 11,217
-------------
Total liabilities 593,407
===================================================================================================
Net Assets $134,286,129
============
===================================================================================================
Composition of Net Assets
Paid-in capital $140,380,464
---------------------------------------------------------------------------------------------------
Undistributed net investment income 41,989
---------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (6,134,194)
---------------------------------------------------------------------------------------------------
Net unrealized depreciation on investments (2,130)
------------
Net Assets $134,286,129
============
===================================================================================================
Net Asset Value Per Share
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$99,031,594 and 6,935,014 shares of beneficial interest outstanding) $14.28
Maximum offering price per share (net asset value plus sales charge of 3.50% of
offering price) $14.80
---------------------------------------------------------------------------------------------------
Class B Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $17,972,316
and 1,258,729 shares of beneficial interest outstanding) $14.28
---------------------------------------------------------------------------------------------------
Class C Shares:
Net asset value, redemption price (excludes applicable contingent deferred
sales charge) and offering price per share (based on net assets of $17,282,219
and 1,212,621 shares of beneficial interest outstanding) $14.25
</TABLE>
See accompanying Notes to Financial Statements.
18 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
STATEMENT OF OPERATIONS For the Year Ended September 30, 2000
<TABLE>
<S> <C>
==================================================================================
Investment Income
Interest $ 8,744,987
==================================================================================
Expenses
Management fees 699,909
----------------------------------------------------------------------------------
Distribution and service plan fees:
Class A 257,754
Class B 185,134
Class C 189,331
----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 110,846
----------------------------------------------------------------------------------
Shareholder reports 72,089
----------------------------------------------------------------------------------
Custodian fees and expenses 41,781
----------------------------------------------------------------------------------
Accounting service fees 12,000
----------------------------------------------------------------------------------
Trustees' compensation 5,006
----------------------------------------------------------------------------------
Other 68,601
-----------
Total expenses 1,642,451
Less expenses paid indirectly (10,659)
-----------
Net expenses 1,631,792
==================================================================================
Net Investment Income 7,113,195
==================================================================================
Realized and Unrealized Gain (Loss)
Net realized loss on:
Investments (5,631,370)
Closing of futures contracts (502,824)
-----------
Net realized loss (6,134,194)
----------------------------------------------------------------------------------
Net change in unrealized appreciation on investments 1,698,137
-----------
Net realized and unrealized loss (4,436,057)
==================================================================================
Net Increase in Net Assets Resulting from Operations $2,677,138
==========
</TABLE>
See accompanying Notes to Financial Statements.
19 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Year Ended September 30, 2000 1999
================================================================================================================
<S> <C> <C>
Operations
Net investment income $ 7,113,195 $ 7,126,771
----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) (6,134,194) 1,133,780
----------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) 1,698,137 (10,696,534)
---------------------------------
Net increase (decrease) in net assets resulting from operations 2,677,138 (2,435,983)
================================================================================================================
Dividends and/or Distributions to Shareholders
Dividends from net investment income:
Class A (5,444,951) (5,534,424)
Class B (801,595) (668,630)
Class C (821,842) (818,168)
----------------------------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (770,641) (120,985)
Class B (124,867) (16,601)
Class C (137,356) (22,404)
================================================================================================================
Beneficial Interest Transactions
Net increase (decrease) in net assets resulting from beneficial interest
transactions:
Class A (21,194,571) 24,617,737
Class B (237,454) 6,407,741
Class C (3,862,911) 5,478,559
================================================================================================================
Net Assets
Total increase (decrease) (30,719,050) 26,886,842
----------------------------------------------------------------------------------------------------------------
Beginning of period 165,005,179 138,118,337
---------------------------------
End of period [including undistributed (overdistributed)
net investment income of $41,989 and $(2,818), respectively] $ 134,286,129 $ 165,005,179
=================================
</TABLE>
See accompanying Notes to Financial Statements.
20 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Class A Year Ended September 30, 2000 1999 1998 1997 1996
=====================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $14.76 $15.65 $15.16 $14.69 $14.69
---------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .72 .72 .69 .80 .79
Net realized and unrealized gain (loss) (.39) (.88) .51 .45 (.01)
----------------------------------------------------------------
Total income (loss) from investment operations .33 (.16) 1.20 1.25 .78
---------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.72) (.71) (.71) (.78) (.78)
Distributions from net realized gain (.09) (.02) -- -- --
----------------------------------------------------------------
Total dividends and/or distributions
to shareholders (0.81) (.73) (.71) (.78) (.78)
---------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.28 $14.76 $15.65 $15.16 $14.69
================================================================
=====================================================================================================================
Total Return, at Net Asset Value(1) 2.48% (1.08)% 8.14% 8.72% 5.41%
=====================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $ 99,032 $124,273 $106,909 $87,111 $83,253
---------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $106,818 $118,906 $ 97,001 $85,590 $82,217
---------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 5.13% 4.72% 4.58% 5.35% 5.35%
Expenses 0.94% 0.90% 0.94%(3) 1.02%(3) 1.02%(3)
---------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 74% 10% 53% 31% 53%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly. See accompanying Notes to Financial Statements.
21 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
FINANCIAL HIGHLIGHTS Continued
<TABLE>
<CAPTION>
Class B Year Ended September 30, 2000 1999 1998 1997(1) 1996
================================================================================================================================
<S> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $14.76 $15.65 $15.16 $14.69 $14.69
--------------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .62 .62 .59 .67 .66
Net realized and unrealized gain (loss) (.39) (.89) .50 .46 --
----------------------------------------------------------------------------
Total income (loss) from investment operations .23 (.27) 1.09 1.13 .66
--------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.62) (.60) (.60) (.66) (.66)
Distributions from net realized gain (.09) (.02) -- -- --
----------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.71) (.62) (.60) (.66) (.66)
--------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.28 $14.76 $15.65 $15.16 $14.69
============================================================================
================================================================================================================================
Total Return, at Net Asset Value(2) 1.71% (1.83)% 7.32% 7.88% 4.56%
================================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $17,972 $18,856 $13,537 $7,690 $2,858
--------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $18,498 $17,203 $10,830 $4,763 $1,440
--------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.36% 3.96% 3.92% 4.54% 4.51%
Expenses 1.70% 1.66% 1.69%(4) 1.79%(4) 1.81%(4)
--------------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 74% 10% 53% 31% 53%
</TABLE>
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
3. Annualized for periods of less than one full year.
4. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
22 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
<TABLE>
<CAPTION>
Class C Year Ended September 30, 2000 1999 1998 1997 1996
=========================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $14.73 $15.62 $15.13 $14.67 $14.67
-------------------------------------------------------------------------------------------------------------------------
Income (loss) from investment operations:
Net investment income .62 .61 .58 .66 .68
Net realized and unrealized gain (loss) (.39) (.88) .51 .47 (.01)
------------------------------------------------------------------
Total income (loss) from investment operations .23 (.27) 1.09 1.13 .67
-------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.62) (.60) (.60) (.67) (.67)
Distributions from net realized gain (.09) (.02) -- -- --
------------------------------------------------------------------
Total dividends and/or distributions
to shareholders) (.71) (.62) (.60) (.67) (.67)
-------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $14.25 $14.73 $15.62 $15.13 $14.67
==================================================================
=========================================================================================================================
Total Return, at Net Asset Value(1) 1.71% (1.84)% 7.34% 7.85% 4.63%
=========================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in thousands) $17,282 $21,876 $17,673 $13,940 $10,908
-------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $18,906 $21,036 $16,367 $11,970 $9,015
-------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(2)
Net investment income 4.37% 3.96% 3.85% 4.57% 4.56%
Expenses 1.70% 1.66% 1.69%(3) 1.77%(3) 1.78%(3)
-------------------------------------------------------------------------------------------------------------------------
Portfolio turnover rate 74% 10% 53% 31% 53%
</TABLE>
1. Assumes a $1,000 hypothetical initial investment on the business day before
the first day of the fiscal period (or inception of offering), with all
dividends and distributions reinvested in additional shares on the reinvestment
date, and redemption at the net asset value calculated on the last business day
of the fiscal period. Sales charges are not reflected in the total returns.
Total returns are not annualized for periods of less than one full year.
2. Annualized for periods of less than one full year.
3. Expense ratio has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
23 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
1. Significant Accounting Policies
Oppenheimer Intermediate Municipal Fund (the Fund) is a separate series of
Oppenheimer Municipal Fund, an open-end management investment company registered
under the Investment Company Act of 1940, as amended. The Fund's investment
objective is to seek a high level of current income exempt from federal income
tax. The Fund's investment advisor is OppenheimerFunds, Inc. (the Manager).
The Fund offers Class A, Class B and Class C shares. Class A shares are
sold at their offering price, which is normally net asset value plus a front-end
sales charge. Class B and Class C shares are sold without a front-end sales
charge but may be subject to a contingent deferred sales charge (CDSC). All
classes of shares have identical rights to earnings, assets and voting
privileges, except that each class has its own expenses directly attributable to
that class and exclusive voting rights with respect to matters affecting that
class. Classes A, B and C have separate distribution and/or service plans. Class
B shares will automatically convert to Class A shares six years after the date
of purchase. The following is a summary of significant accounting policies
consistently followed by the Fund.
--------------------------------------------------------------------------------
Securities Valuation. Securities listed or traded on National Stock Exchanges or
other domestic or foreign exchanges are valued based on the last sale price of
the security traded on that exchange prior to the time when the Fund's assets
are valued. In the absence of a sale, the security is valued at the last sale
price on the prior trading day, if it is within the spread of the closing bid
and asked prices, and if not, at the closing bid price. Securities (including
restricted securities) for which quotations are not readily available are valued
primarily using dealer-supplied valuations, a portfolio pricing service
authorized by the Board of Trustees, or at their fair value. Fair value is
determined in good faith under consistently applied procedures under the
supervision of the Board of Trustees. Short-term "money market type" debt
securities with remaining maturities of sixty days or less are valued at
amortized cost (which approximates market value).
--------------------------------------------------------------------------------
Allocation of Income, Expenses, Gains and Losses. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated daily to
each class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
--------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income, including any net realized gain on
investments not offset by loss carryovers, to shareholders. Therefore, no
federal income or excise tax provision is required.
As of September 30, 2000, the Fund had available for federal tax purposes an
unused capital loss carryover as follows:
Expiring
--------------------------------------
2008 $196,064
24 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
--------------------------------------------------------------------------------
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
--------------------------------------------------------------------------------
Classification of Dividends and Distributions to Shareholders. Net investment
income (loss) and net realized gain (loss) may differ for financial statement
and tax purposes. The character of dividends and distributions made during the
fiscal year from net investment income or net realized gains may differ from its
ultimate characterization for federal income tax purposes. Also, due to timing
of dividends and distributions, the fiscal year in which amounts are distributed
may differ from the fiscal year in which the income or realized gain was
recorded by the Fund.
The Fund adjusts the classification of distributions to shareholders to
reflect the differences between financial statement amounts and distributions
determined in accordance with income tax regulations. Accordingly, during the
year ended September 30, 2000, amounts have been reclassified to reflect an
increase in paid-in capital of $2,931. Accumulated net realized loss on
investments was increased by the same amount. All of which is distributed in
connection with Fund share redemptions which increased paid-in capital and
increased accumulated net realized loss. Net assets of the Fund were unaffected
by the reclassifications.
--------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
--------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of trade date. Original
issue discount is accreted and premium is amortized in accordance with federal
income tax requirements. For municipal bonds acquired after April 30, 1993, on
disposition or maturity, taxable ordinary income is recognized to the extent of
the lesser of gain or market discount that would have accrued over the holding
period. Realized gains and losses on investments and unrealized appreciation and
depreciation are determined on an identified cost basis, which is the same basis
used for federal income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
25 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STATEMENTS Continued
================================================================================
2. Shares of Beneficial Interest
The Fund has authorized an unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial interest were as
follows:
<TABLE>
<CAPTION>
Year Ended September 30, 2000 Year Ended September 30, 1999
Shares Amount Shares Amount
---------------------------------------------------------------------------------------
Class A
<S> <C> <C> <C> <C>
Sold 1,163,684 $ 16,634,283 3,070,665 $ 47,404,468
Dividends and/or
distributions reinvested 326,801 4,681,187 256,517 3,932,257
Redeemed (2,974,289) (42,510,041) (1,738,667) (26,718,988)
-----------------------------------------------------------
Net increase (decrease) (1,483,804) $(21,194,571) 1,588,515 $24,617,737
===========================================================
---------------------------------------------------------------------------------------
Class B
Sold 332,417 $ 4,772,600 631,307 $ 9,725,674
Dividends and/or
distributions reinvested 42,695 611,338 30,406 465,950
Redeemed (394,129) (5,621,392) (249,024) (3,783,883)
-----------------------------------------------------------
Net increase (decrease) (19,017) $ (237,454) 412,689 $ 6,407,741
===========================================================
---------------------------------------------------------------------------------------
Class C
Sold 311,943 $ 4,469,853 626,045 $ 9,634,721
Dividends and/or
distributions reinvested 47,117 673,935 37,914 580,815
Redeemed (631,187) (9,006,699) (310,316) (4,736,977)
-----------------------------------------------------------
Net increase (decrease) (272,127) $ (3,862,911) 353,643 $ 5,478,559
===========================================================
</TABLE>
--------------------------------------------------------------------------------
3. Purchases and Sales of Securities
The aggregate cost of purchases and proceeds from sales of securities, other
than short-term obligations, for the year ended September 30, 2000, were
$105,555,767 and $133,465,218, respectively.
As of September 30, 2000, unrealized appreciation (depreciation) based on cost
of securities for federal income tax purposes of $131,359,302 was:
Gross unrealized appreciation $ 3,403,747
Gross unrealized depreciation (3,405,877)
-----------
Net unrealized depreciation $ (2,130)
===========
26 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
================================================================================
4. Fees and Other Transactions with Affiliates
Management Fees. Management fees paid to the Manager were in accordance with the
investment advisory agreement with the Fund which provides for a fee of 0.50% of
the first $100 million of average annual net assets, 0.45% of the next $150
million, 0.425% of the next $250 million, and 0.40% of average annual net assets
in excess of $500 million. The Fund's management fee for the year ended
September 30, 2000, an annualized rate of 0.49%, before any waiver by the
Manager if applicable.
--------------------------------------------------------------------------------
Accounting Fees. The Manager acts as the accounting agent for the Fund at an
annual fee of $12,000, plus out-of-pocket costs and expenses reasonably
incurred.
--------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
acts as the transfer and shareholder servicing agent for the Fund on an
"at-cost" basis. OFS also acts as the transfer and shareholder servicing agent
for the other Oppenheimer funds.
--------------------------------------------------------------------------------
Distribution and Service Plan Fees. Under its General Distributor's Agreement
with the Manager, the Distributor acts as the Fund's principal underwriter in
the continuous public offering of the different classes of shares of the Fund.
The compensation paid to (or retained by) the Distributor from the sale of
shares or on the redemption of shares is shown in the table below for the period
indicated.
<TABLE>
<CAPTION>
Aggregate Class A Commissions Commissions Commissions
Front-End Front-End on Class A on Class B on Class C
Sales Charges Sales Charges Shares Shares Shares
on Class A Retained by Advanced by Advanced by Advanced by
Year Ended Shares Distributor Distributor(1) Distributor(1) Distributor(1)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
September 30, 2000 $90,064 $22,643 $20,322 $103,343 $25,677
</TABLE>
1. The Distributor advances commission payments to dealers for certain sales of
Class A shares and for sales of Class B and Class C shares from its own
resources at the time of sale.
<TABLE>
<CAPTION>
Class A Class B Class C
Contingent Deferred Contingent Deferred Contingent Deferred
Sales Charges Sales Charges Sales Charges
Year Ended Retained by Distributor Retained by Distributor Retained by Distributor
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
September 30, 2000 $14,802 $54,598 $7,574
</TABLE>
The Fund has adopted a Service Plan for Class A shares and Distribution and
Service Plans for Class B and Class C shares under Rule 12b-1 of the Investment
Company Act. Under those plans the Fund pays the Distributor for all or a
portion of its costs incurred in connection with the distribution and/or
servicing of the shares of the particular class.
27 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
NOTES TO FINANCIAL STAEMENTS Continued
================================================================================
4. Fees and Other Transactions with Affiliates Continued
Class A Service Plan Fees. Under the Class A service plan, the Distributor
currently uses the fees it receives from the Fund to pay brokers, dealers and
other financial institutions. The Class A service plan permits reimbursements to
the Distributor at a rate of up to 0.25% of average annual net assets of Class A
shares purchased. The Distributor makes payments to plan recipients quarterly at
an annual rate not to exceed 0.25% of the average annual net assets consisting
of Class A shares of the Fund. For the year ended September 30, 2000, payments
under the Class A plan totaled $257,754 prior to Manager waiver if applicable,
all of which were paid by the Distributor to recipients, and included $31,947
paid to an affiliate of the Manager. Any unreimbursed expenses the Distributor
incurs with respect to Class A shares in any fiscal year cannot be recovered in
subsequent years.
--------------------------------------------------------------------------------
Class B and Class C Distribution and Service Plan Fees. Under each plan, service
fees and distribution fees are computed on the average of the net asset value of
shares in the respective class, determined as of the close of each regular
business day during the period. The Class B and Class C plans provide for the
Distributor to be compensated at a flat rate, whether the Distributor's
distribution expenses are more or less than the amounts paid by the Fund under
the plan during the period for which the fee is paid.
The Distributor retains the asset-based sales charge on Class B shares. The
Distributor retains the asset-based sales charge on Class C shares during the
first year the shares are outstanding. The asset-based sales charges on Class B
and Class C shares allow investors to buy shares without a front-end sales
charge while allowing the Distributor to compensate dealers that sell those
shares.
The Distributor's actual expenses in selling Class B and Class C shares may
be more than the payments it receives from the contingent deferred sales charges
collected on redeemed shares and asset-based sales charges from the Fund under
the plans. If any plan is terminated by the Fund, the Board of Trustees may
allow the Fund to continue payments of the asset-based sales charge to the
Distributor for distributing shares before the plan was terminated. The plans
allow for the carry-forward of distribution expenses, to be recovered from
asset-based sales charges in subsequent fiscal periods.
Distribution fees paid to the Distributor for the year ended September 30, 2000,
were as follows:
<TABLE>
<CAPTION>
Distributor's Distributor's
Aggregate Unreimbursed
Unreimbursed Expenses as %
Total Payments Amount Retained Expenses of Net Assets
Under Plan by Distributor Under Plan of Class
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Plan $185,134 $152,519 $275,376 1.53%
Class C Plan 189,331 44,347 375,080 2.17
</TABLE>
28 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
================================================================================
5. Futures Contracts
A futures contract is a commitment to buy or sell a specific amount of a
commodity or financial instrument at a particular price on a stipulated future
date at a negotiated price. Futures contracts are traded on a commodity
exchange. The Fund may buy and sell futures contracts that relate to broadly
based securities indices "financial futures" or debt securities "interest rate
futures" in order to gain exposure to or to seek to protect against changes in
market value of stock and bonds or interest rates. The Fund may also buy or
write put or call options on these futures contracts.
The Fund generally sells futures contracts to hedge against increases in
interest rates and decreases in market value of portfolio securities. The Fund
may also purchase futures contracts to gain exposure to changes in interest
rates as it may be more efficient or cost effective than actually buying fixed
income securities.
Upon entering into a futures contract, the Fund is required to deposit
either cash or securities (initial margin) in an amount equal to a certain
percentage of the contract value. Subsequent payments (variation margin) are
made or received by the Fund each day. The variation margin payments are equal
to the daily changes in the contract value and are recorded as unrealized gains
and losses. The Fund recognizes a realized gain or loss when the contract is
closed or expires.
Securities held in collateralized accounts to cover initial margin
requirements on open futures contracts are noted in the Statement of
Investments. The Statement of Assets and Liabilities reflects a receivable
and/or payable for the daily mark to market for variation margin.
Risks of entering into futures contracts (and related options) include the
possibility that there may be an illiquid market and that a change in the value
of the contract or option may not correlate with changes in the value of the
underlying securities.
================================================================================
6. Bank Borrowings
The Fund may borrow from a bank for temporary or emergency purposes including,
without limitation, funding of shareholder redemptions provided asset coverage
for borrowings exceeds 300%. The Fund has entered into an agreement which
enables it to participate with other Oppenheimer funds in an unsecured line of
credit with a bank, which permits borrowings up to $400 million, collectively.
Interest is charged to each fund, based on its borrowings, at a rate equal to
the Federal Funds Rate plus 0.45%. Borrowings are payable 30 days after such
loan is executed. The Fund also pays a commitment fee equal to its pro rata
share of the average unutilized amount of the credit facility at a rate of 0.08%
per annum.
The Fund had no borrowings outstanding during the year ended September 30,
2000.
29 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders of Oppenheimer Intermediate Municipal
Fund:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Intermediate Municipal Fund, including the statement of investments,
as of September 30, 2000, and the related statement of operations for the year
then ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended. These financial statements and financial highlights
are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based
on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of September 30, 2000, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Intermediate Municipal Fund as of September 30, 2000, the results of
its operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for each
of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
Deloitte & Touche LLP
Denver, Colorado
October 20, 2000
30 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
FEDERAL INCOME TAX INFORMATION Unaudited
================================================================================
In early 2001 shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 2000. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
Distributions of $0.1552, $0.1455 and $0.1455 per share were paid to Class
A, Class B and Class C shareholders, respectively, on December 10, 1999, of
which $0.0594 was designated as a "capital gain distribution" for federal income
tax purposes. Whether received in stock or in cash, the capital gain
distribution should be treated by shareholders as a gain from the sale of
capital assets held for more than one year (long-term capital gains).
None of the dividends paid by the Fund during the year ended September 30,
2000 are eligible for the corporate dividend-received deduction. The dividends
were derived from interest on municipal bonds and are not subject to federal
income tax. To the extent a shareholder is subject to any state or local tax
laws, some or all of the dividends received may be taxable.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because of
the complexity of the federal regulations which may affect your individual tax
return and the many variations in state and local tax regulations, we recommend
that you consult your tax advisor for specific guidance.
31 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
================================================================================
Officers and Trustees James C. Swain, Trustee and Chairman of the Board
Bridget A. Macaskill, Trustee and President
William L. Armstrong, Trustee
Robert G. Avis, Trustee
George C. Bowen, Trustee
Jon S. Fossel, Trustee
Sam Freedman, Trustee
Raymond J. Kalinowski, Trustee
C. Howard Kast, Trustee
Robert M. Kirchner, Trustee
Andrew J. Donohue, Vice President and Secretary
Merrell Hora, Vice President
Jerry Webman, Vice President
Brian W. Wixted, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
================================================================================
Independent Auditors Deloitte & Touche LLP
================================================================================
Legal Counsel Myer, Swanson, Adams and Wolf, P.C.
For more complete information about Oppenheimer
Intermediate Municipal Fund, please refer to the
Prospectus. To obtain a copy, call your financial
advisor, call OppenheimerFunds Distributor, Inc. at
1.800.525.7048 or visit the OppenheimerFunds
Internet website at www.oppenheimerfunds.com.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
Oppenheimer funds are distributed by
OppenheimerFunds Distributor, Inc., Two World Trade
Center, New York, NY 10048-0203.
(C)Copyright 2000 OppenheimerFunds, Inc. All rights
reserved.
32 | OPPENHEIMER INTERMEDIATE MUNICIPAL FUND
<PAGE>
INFORMATION AND SERVICES
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to
help.
Internet
24-hr access to account information and transactions(1)
www.oppenheimerfunds.com
--------------------------------------------------------------------------------
General Information
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.525.7048
--------------------------------------------------------------------------------
Telephone Transactions
Mon-Fri 8am-9pm ET, Sat 10am-4pm ET
1.800.852.8457
--------------------------------------------------------------------------------
PhoneLink
24-hr automated information and automated transactions
1.800.533.3310
--------------------------------------------------------------------------------
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Mon-Fri 9am-6:30pm ET
1.800.843.4461
--------------------------------------------------------------------------------
OppenheimerFunds Market Hotline
24 hours a day, timely and insightful messages on the
economy and issues that may affect your investments
1.800.835.3104
--------------------------------------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services
P.O. Box 5270, Denver, CO 80217-5270
--------------------------------------------------------------------------------
Ticker Symbols Class A: OPITX Class B: OIMBX Class C: OITCX
1. At times this website may be inaccessible or its transaction feature may be
unavailable.
RA0860.001.0900 November 29, 2000 [logo]OppenheimerFunds(R)
Distributor, Inc.
