Oppenheimer Funds A Brief Primer on Customer Behavior

Oppenheimer. Funds A Brief Primer on Customer Behavior Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank and are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. For Institutional Use Only. This material has been prepared by Oppenheimer. Funds Distributor, Inc. for institutional investors only. It has not been filed with NASD and may not be reproduced, shown or quoted to, or used with, members of the public. Oppenheimer funds are distributed by Oppenheimer. Funds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY 10281 -1008 ® Kurt J. Wolfgruber Chief Investment Officer Oppenheimer. Funds, Inc.

Recent Past: Exaggerated Cycle ® Average Annual Total Returns Long-Term 1976– 2003 Bull 1995– 99 Bear 2000– 02 S&P 500 Index 12. 92% 28. 54% – 14. 54% Nasdaq Composite Index 14. 32 40. 62 – 30. 45 50. 77 Goldman Sachs Commodities Index 8. 81 4. 63 10. 41 20. 72 Lehman Aggregate Bond Index 9. 13 7. 73 10. 10 4. 10 1. Through 12/31/03. Source of data: Standard & Poor’s Micropal, Inc. The indices shown include reinvested income, are unmanaged and cannot be purchased directly by investors. For illustrative purposes only, not intended to predict or depict the performance of any investment. Past performance does not guarantee future results. Recovery 1 2003 28. 67%

Impact on Client Portfolios ® American Association of Individual Investors Allocation Survey January 1995 January 2000 January 2003 Source of chart data: Ned Davis Research.

Timing: Impact on Performance ® Annualized Returns, 1984– 2002 Source of chart data: Dalbar, 2003.

2003 : Poor Setup 1 ® Negatives • • • Post-bubble Hangover Iraq SARS Jobless Recovery Deflation Scare Continued Corporate Scandals • Mutual Fund Scandal 1. Through 12/31/03. Past performance does not guarantee future results. The indices shown include reinvested income, are unmanaged and cannot be purchased directly by investors. For illustrative purposes only, not intended to predict or depict the performance of any investment.

2003 : Poor Setup, Great Results 1 ® Negatives Results • • Economic Expansion Gains Momentum • Profits Recovery • S&P 500 Index +26. 4% • Nasdaq Index +50. 0% • Russell 2000 Index +45. 4% Post-bubble Hangover Iraq SARS Jobless Recovery Deflation Scare Continued Corporate Scandals • Mutual Fund Scandal 1. Through 12/31/03. Past performance does not guarantee future results. The indices shown include reinvested income, are unmanaged and cannot be purchased directly by investors. For illustrative purposes only, not intended to predict or depict the performance of any investment.

Diversification Counts ® 1990 1991 S&P -3. 1 30. 4 7. 6 1992 10. 1 1993 1. 3 1994 37. 5 1995 23. 0 1996 33. 4 1997 28. 6 1998 21. 0 1999 -9. 1 2000 -11. 9 2001 -19. 4 2002 28. 7 2003 327% Total Source of data: Strategic Inisght. 60/40 1. 7 50/50 2. 9 40/60 4. 1 LB Agg 9. 0 24. 6 23. 2 21. 8 16. 0 7. 5 7. 4 9. 9 9. 8 - 0. 4 -0. 8 -1. 2 -2. 9 29. 9 28. 0 26. 1 18. 5 15. 2 13. 3 11. 4 3. 6 23. 9 21. 5 19. 1 9. 7 20. 6 18. 6 16. 6 8. 7 12. 3 10. 1 7. 9 -0. 8 1. 3 3. 3 11. 6 -3. 8 -1. 7 0. 3 8. 4 -8. 9 -6. 3 -3. 7 6. 8 18. 8 16. 4 13. 9 4. 1 286% 273% 258% 196%money Includes mutual fund assets for all distribution channels, excluding market products. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank and are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. Bonds Stocks

“All Weather Portfolio” ® Portfolio vs. Index Results as of 3/31/04 1/3 Dom Eq 1/3 Bond 1/3 Global Portfolios Equally Weighted Opp Strategic Income Opp Main Street Opp Global Lehman Aggregate S&P 500 MSCI World Difference (OFI +/– Index) Cumulative Total Returns 1 Yr 3 Yr 5 Yr 10 YR Return/ Unit Risk 37. 9% 18. 9% 34. 6% 152. 6% 12. 4 28. 1 10. 6 137. 3 11. 2 +9. 8 +8. 9 + 24. 0 + 15. 3 Past performance does not guarantee future results. This material must be preceded or accompanied by the current prospectus of each fund. Fund performance shown without considering sales charges. The average annual total returns after deducting the current maximum sales charge of 5. 75% for Class A shares for the 1, 5 and 10 year periods ending 3/31/04 were (Strategic Income) 12. 29%, 6. 40% and 6. 85%, (Main Street) 26. 23%, -1. 56% and 8. 43%, (Global) 52. 71%, 8. 87% and 11. 49% respectively. The S&P 500 index is a broad-based stock index. The Lehman Aggregate Bond Index includes a broad range of investment-grade U. S. Government and corporate bonds. The MSCI World Index is a broad-based index, widely used as a measure of global stock market performance. Indices are unmanaged, include reinvested income and cannot be purchased directly by investors. Sample portfolio is not intended as investment advice, and each investor should consider his investment goals, risk tolerance and tax strategy, among other factors. + 1. 2

Oppenheimer. Funds Our Investment Organization Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank and are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. For Institutional Use Only. This material has been prepared by Oppenheimer. Funds Distributor, Inc. for institutional investors only. It has not been filed with NASD and may not be reproduced, shown or quoted to, or used with, members of the public. Oppenheimer funds are distributed by Oppenheimer. Funds Distributor, Inc. Two World Financial Center, 225 Liberty Street, New York, NY 10281 -1008 ® Kurt J. Wolfgruber Chief Investment Officer Oppenheimer. Funds, Inc.

Oppenheimer. Funds, Inc. ® Company Overview • Founded in 1960 • Headquarters: New York City • Owned by: Mass. Mutual Financial Group and OFI Management • Over $155 billion in assets under management • 65+ funds • 7. 4 million shareholder accounts through 200, 000 financial advisors • Approximately 2, 200 employees • Over 350 investment staff/professionals

Oppenheimer. Funds Corporate Strategy ® • Grow Assets and Profits Faster than the Asset Management Industry • Expand Beyond Mutual Funds • Embrace Customer Centricity • Drive Profitable Growth Through Investment Excellence

Asset Growth ® Assets Under Management vs. S&P 500 Index Source: Bloomberg.

Total Assets Under Management ~ $155 Billion ® Tremont $8. 9 B OFI Institutional $6. 8 B High Net Worth $2. 2 B Oppenheimer. Funds ~ $137 B

Oppenheimer. Funds, Inc. ® Key Strengths/Points of Differentiation • Top investment talent • Five portfolio managers in Barron’s annual Top 100 ranking, more than any other company

Top Investment Talent ® Investment Goals & Results Long-Term Assets, 5 Years Through 3/31/04 Source: Lipper

Oppenheimer. Funds, Inc. ® Key Strengths/Points of Differentiation • Top investment talent • Five portfolio managers in Barron’s annual Top 100 ranking, more than any other company • Entrepreneurial Organizational Structure

Investment Department Organizational Structure OFI Institutional Chuck Mc. Kenzie John Murphy Chairman Chief Executive Officer Tremont Sandra Manzke Robert Schulman Oppenheimer. Funds Kurt Wolfgruber Chief Investment Officer Bill Wilby Kurt Wolfgruber Jerry Webman Ken Winston Andy Mika Keith Spencer Global Equities Domestic Equities Fixed Income Risk Mgmt Operations Equity Trading Total 1 Investment Staff: 114 1. Retail Assets Only; Excluding OFI Institutional and Tremont

Oppenheimer’s Team Approach ® Entrepreneurial Organizational Structure U. S. Stock Global Stock Core (Main St) Global Growth “Global investing is a strong point at Oppenheimer” “A worthwhile option” “Solid pick” (Global Fund) (on Capital Appreciation Fund) (Main Street) Morningstar, 9/03 16% of Assets Morningstar, 6/03 13% of Assets Morningstar, 9/03 17% of Assets Bonds Value “An experienced manager with a good track record” Morningstar, on Chris Leavy, Value Fund, 6/03 12% of Assets Other Equity Taxable Muni “Good option” “Top-notch management” (Capital Income) (High Grade Bond Team) “Reputation for thorough research & high-income performance” Morningstar, 12/03 Morningstar, on Ron Fielding, Rochester Team leader, 4/03 Morningstar, 10/03 9% of Assets 18% of Assets Source of data: Strategic Insight as of 2/28/04. Past performance does not guarantee future results. Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank and are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. 15% of Assets

Oppenheimer. Funds, Inc. ® Key Strengths/Points of Differentiation • Top investment talent • Five portfolio managers in Barron’s annual Top 100 ranking, more than any other company • Entrepreneurial Organizational Structure • Broad Spectrum of Products

Broad Spectrum of Products Global Stock Independent Teams Mutual Funds U. S. Equity Diversification Bonds Global Growth Core Value Hybrid & Specialty Taxable Municipal Global Capital Appreciation Main Street Value Quest Balanced Limited- Term Gov’t Rochester National Municipals International Growth Main Street Opportunity Quest Value Oppenheimer Balanced Strategic Income Limited Term Municipal International Value Mid. Cap Main Street Small Cap Special Value Real Asset Bond Fund AMT-Free Municipals Global Opportunities Enterprise Equity Fund Quest Capital Value Real Estate Total Return Bond Rochester Fund Municipals Quest International Value Discovery Small Cap Value Convertible Securities U. S. Government Trust Limited Term NY Developing Markets Emerging Growth High Yield/ Champion AMT-Free NY Municipals Senior Floating Rate CA, NJ, PA Municipals International Bond Limited Term California International Small Company For more complete information about any of the Oppenheimer funds, including charges, expenses and risk or to obtain a prospectus, contact your sales representative today at 1. 800. 255. 2750. Or log on to our website at www. oppenheimerfunds. com. Read the prospectus carefully before you invest or send money.

10 Best Sellers–Oppenheimer. Funds ® Lipper Quartile Rankings based on total return as of 3/31/04 1 2 3 4 5 6 7 8 9 10 Global Main Street Fund Capital Appreciation Strategic Income Quest Balanced Developing Mkts Rochester Fund Munis Limited Term NY Muni Main Street Opportunity International Bond % Top Half Average % Rank 1 YR 1 2 1 1 1 1 3 YR 1 1 3 2 3 3 1 1 5 YR 1 1 1 2 1 10 YR 1 3 1 1 1 - 100% 10 70% 26 100% 15 86% 19 Past performance does not guarantee future results. Best selling funds are determined by 12 -month sales as of 2/28/04, the most current sales data available from Strategic Insight. Lipper quartile rankings are based on category peer groups and are for the primary share class as identified by Strategic Insight. Lipper rankings are based on total returns but do not consider sales charge and are subject to change monthly. If sales charges were considered rankings may change substantially. Rankings are relative peer group ratings and do not necessarily mean that the fund had high total returns. Funds are grouped by investment objective into Lipper categories and attempt to achieve the stated objective, however may or may not.

Oppenheimer. Funds, Inc. ® Key Strengths/Points of Differentiation • Top investment talent • Five portfolio managers in Barron’s annual Top 100 ranking, more than any other company • Entrepreneurial Organizational Structure • Broad Spectrum of Products • Powerful brand image • 5 th most recognized brand within the U. S. mutual fund industry (Nationwide Surveys, 2003) • Rated 9 th in overall reputation in entire U. S. financial services industry (American Banker, 2001)

Powerful Brand Image ®

Oppenheimer. Funds, Inc. ® Key Strengths/Points of Differentiation • Top investment talent • Five portfolio managers in Barron’s annual Top 100 ranking, more than any other company • Entrepreneurial Organizational Structure • Broad Spectrum of Products • Powerful brand image • 5 th most recognized brand within the U. S. mutual fund industry (Nationwide Surveys, 2003) • Rated 9 th in overall reputation in entire U. S. financial services industry (American Banker, 2001) • Strong intermediary partnerships

Near-term Challenges ® • Business Environment • Short-term… Short-term • Benchmark “Float” • Product/fund Proliferation • Regulatory Environment • Market Timing • Transaction Costs • Shelf Space Cost • Soft Dollars • Wall Street Research • Alignment of Interests