OPPENHEIMER CASH RESERVES
Supplement dated September 15, 1997
to the Prospectus dated November 26, 1996
1. The Supplement dated May 1, 1997 to the Prospectus is replaced
by this supplement.
2. In "How Can I Buy Shares?" under "A Brief Overview of the
Fund" on page 6, the third sentence is replaced with the following
sentence: "Class B shares may be purchased directly only by
investors who have established an Asset Builder Plan and by
participants in the OppenheimerFunds prototype 401(k) plan, and
Class C shares may be purchased directly only by participants in
the OppenheimerFunds prototype 401(k) plan."
3. In "Classes of Shares" on page 18, the fourth sentence is
replaced with the following: "Class B shares may be purchased
directly only by investors who have established an Asset Builder
Plan and by participants in the OppenheimerFunds 401(k) plan, and
Class C shares may be purchased directly only by participants in
the OppenheimerFunds prototype 401(k) plan."
4. In "Class A Shares" under "Classes of Shares" on page 18 the
second sentence is replaced by the following: "However, if Class
A shares acquired by an exchange of Class A shares of other
Oppenheimer funds purchased subject to a Class A contingent
deferred sales charge are redeemed within 12 months (18 months if
the shares were purchased prior to May 1, 1997) of the end of the
calendar month of the initial purchase of the exchanged Class A
shares, a Class A contingent deferred sales charge may be deducted
from the proceeds."
5. The following is added to "How are Shares Purchased?" in "How
to Buy Shares" on page 19: "The Distributor may pay periodic
compensation from its own resources to securities dealers or
financial institutions based upon the value of shares of the Fund
owned by the dealer or financial institution for its own account or
for its customers."
6. The section caption "Asset Builder Plans" on page 20 is
deleted and replaced with the following:
Asset Builder Plans. You may purchase Class
A shares of the Fund (and up to four other
Oppenheimer funds) automatically each month
from you account at a bank or other financial
institution under an Asset Builder Plan with
AccountLink. You may also purchase Class B
shares directly under an Asset Builder Plan
either through AccountLink or otherwise.
Details are in the Statement of Additional
Information.
7. Under "Buying Class B Shares" on page 21, the second and third
sentences in the first paragraph are deleted and replaced with the
following:
Class B shares may be purchased directly only by
investors who establish an Asset Builder Plan and by plan
administrators or plan sponsors on behalf of plan
participants in OppenheimerFunds prototype 401(k) plans.
On direct purchases of the Fund's Class B shares for
Asset Builder Plans the Distributor pays sales
commissions of 4.00% of the purchase price to dealers
from its own resources at the time of sale. On direct
purchases of the Fund's Class B shares for
OppenheimerFunds prototype 401(k) plans the Distributor
pays sales commissions of 3.00% of the purchase price to
dealers from its own resources at the time of sale.
8. The fifth paragraph in "Distribution and Service Plans for
Class B and Class C shares" on page 23 is deleted and replaced with
the following:
On direct purchases of the Fund's Class B shares for
Asset Builder Plans, the Distributor currently pays sales
commissions of 4.00% of the purchase price of Class B
shares to dealers from its own resources at the time of
sale. On direct purchases of the Fund's Class B shares
for OppenheimerFunds prototype 401(k) plans, the
Distributor pays sales commissions of 3.00% of the
purchase price of Class B shares to dealers from its own
resources at the time of sale. The Distributor retains
the Class B asset-based sales charge in either case. If,
however, a dealer has a special agreement with the
Distributor, the Distributor will pay the Class B asset-
based sales charge to the dealer quarterly in lieu of
paying the sales commission at the time of purchase.
9. The following is added to the end of the sixth paragraph of
"Distribution and Service Plans for Class B and Class C shares" on
page 22:
If a dealer has a special agreement with the Distributor, the
Distributor will pay the Class C asset-based sales charge to
the dealer quarterly in lieu of paying the sales commission at
the time of purchase.
10. The introductory phrase in the sixth sub-paragraph of "Waivers
for Redemptions of Shares in Certain Cases" in "Waivers of Class B
and Class C Sales Charges" on page 23 is replaced with the
following and a new sub-section (6) is added as follows:
distributions from OppenheimerFunds prototype 401(k)
plans and from certain Massachusetts Mutual Life
Insurance Company prototype 401(k) plans...(6) for loans
to participants or beneficiaries.
11. The following sub-paragraph is added at the end of "Waivers
for Redemptions of Shares in Certain Cases" in "Waivers of Class B
and Class C Sales Charges" on page 23:
distributions from 401(k) plans sponsored by broker-dealers
that have entered into a special agreement with the Distributor
allowing this waiver.
12. The section captioned "Special Investor Services" on page 24
is revised by adding the following after the sub-section captioned
"PhoneLink":
Shareholder Transactions by Fax." Requests for certain
account transactions may be sent to the Transfer Agent by
fax (telecopier). Please call 1-800-525-7048 for
information about which transactions are included.
Transaction requests submitted by fax are subject to the
same rules and restrictions as written and telephone
requests described in this Prospectus.
September 15, 1997 PX0760.005
<PAGE>
OPPENHEIMER CASH RESERVES
Supplement dated September 15, 1997
to the Statement of Additional Information
dated November 26, 1996
1. The section captioned "Asset Builder Plan" on page 20 is
revised by adding the following after the first paragraph:
Investors who wish to purchase Class B shares of other
Oppenheimer funds by dollar-cost averaging may do so by
establishing an Asset Builder Plan in Class B shares of the
Fund and directing that the entire amount invested in Class B
shares of the Fund be reinvested in Class B shares of other
Oppenheimer funds over a period that may not exceed 24 months.
Investors who establish Asset Builder Plans may purchase Class
B shares of the Fund directly. The minimum initial investment
for Class B Asset Builder Plans is $5,000 and the maximum
initial investment is $500,000. Any redemption of Class B
shares of the Fund or any other Oppenheimer fund within 6
years of investment may be subject to a contingent deferred
sales charge, as further described in the Fund's Prospectus.
September 15, 1997 PX0760.003
