OppenheimerFunds will pay $20 million to settle allegations put forth by the State of Oregon concerning the company's management of the State's 529 college savings programs.

New York City-based Oppenheimer does not admit any wrongdoing.

The settlement funds are expected to be distributed to eligible plan participants early next year, according to a news release. Additional details, such as the timing and the State's distribution plan, will emerge after the settlement is finalized.

Oregon filed the suit in April 2009 when participants in the Oregon 529 plan who used the Oppenheimer Core Bond Fund were dealt $36 million in losses. The state alleged that Oppenheimer was pursuing far too risky investments on par with its hedge fund peers rather than a traditional bond fund.

The lawsuit was one of several class actions suits brought against OppFunds due to substantial losses in a handful of its funds, including the Champion Income Fund and its California Municipal fund.

Company Press Release

OppenheimerFunds, Inc. Agrees to Settle Oregon 529 Lawsuit

NEW YORK, Nov. 19 /PRNewswire/ -- OppenheimerFunds, Inc. (OFI) and the State of Oregon have reached an agreement in principle to settle a lawsuit filed by the State over the Company's management of the State's 529 college savings programs. The settlement allows both the State and OFI to avoid a lengthy and expensive legal process and to apply resources to more constructive ends.

Under the terms of the proposed settlement, OFI does not admit any wrongdoing and agrees to pay the State $20 million which the State intends to distribute to participants in the Plan. While the State and OFI currently expect that funds will be distributed to eligible plan participants early next year, further details on timing and the State's plans for distribution of settlement funds will be released after the settlement is finalized.

OFI is one of the largest and most successful 529 program managers and remains committed to its 529 plan management business. Long known for its advocacy on behalf of investors, the Company continues to help individuals reach the important goal of savings for a college education by encouraging smart planning and informed choices through its "Keeping College Within Reach" program.

About OppenheimerFunds, Inc.

OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. The Oppenheimer funds managed by OppenheimerFunds, Inc. and a subsidiary have nearly 6 million shareholder accounts.

Shares of mutual 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.

The products and services of OppenheimerFunds, Inc. and its controlled affiliates include: mutual funds, qualified retirement plans for individuals and corporations, investment management for institutions and sub-advisory services. OppenheimerFunds is widely recognized as a leader in educating and empowering investors and for its award-winning customer service.

Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and if available, summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting our website at www.oppenheimerfunds.com, or calling us at 1.800.525.7048. Read prospectuses and if available, summary prospectuses, carefully before investing.

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