OppenheimerFunds Adds Roth 401k Option to Retirement Programs

NEW YORK, December 12, 2005 -- OppenheimerFunds, Inc., a leading asset management company, announced today that it will offer an after-tax salary deferral option for its 401k and 403(b) retirement programs effective January 1, 2006. The new after tax features are known as Roth 401k and Roth 403(b), and both resulted from the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). This legislation and related tax rules established the ability for 403(b) and 401k plan participants to make after-tax "Roth" type contributions beginning January 1, 2006.

"The new Roth savings option offers advantages to a broad spectrum of employees, including younger workers, high-income earners, dual-income couples and investors with large accumulations of tax-deferred and taxable assets," said John Stoma, Senior Vice President, Director of Retirement Plans at OppenheimerFunds. "We are committed to providing financial advisors, plan sponsors and participants the tools necessary to maximize workplace savings opportunities to help plan for a comfortable retirement. We firmly believe that the Roth option can offer significant advantages for certain segments of the employee population."

Benefits of Roth 401k and Roth 403(b) include:

• No income restrictions - Employees at all income levels are eligible to participate, provided the employer offers this feature in the plan.
• Higher contribution limits than a Roth IRA ($15,000 in 2006 for Roth 401k or Roth 403(b) vs. $4,000 for a Roth IRA).
• Employees with large accumulations of tax-deferred and taxable assets can leverage a Roth 401k/ Roth 403(b) to diversify and hedge against possible higher future federal income tax rates.
• Contributions are more convenient than Roth IRAs because they are made directly through payroll deductions.
• Younger employees who have a longer savings horizon to accumulate money tax free, especially as their incomes rise, may be interested in potential tax-free growth.

OppenheimerFunds has incorporated the Roth options into the following retirement programs:

• OppenheimerFunds 403(b)(7) - This full service Non-ERISA 403(b) program offers a broad selection of Oppenheimer funds, educational materials and participant services for employees of educational, religious and charitable non-profit organizations.
• Single K(SM) Personal 401k plan that combines the benefit of a 401k with a conventional profit-sharing plan, allowing owner-only businesses to save more retirement dollars than other plans might allow.
• Ascender - A full-service 401k program designed for businesses with fewer than 50 eligible employees. It provides comprehensive participant educational materials, and complete recordkeeping, administration and trustee services, in a user-friendly format.
• Pinnacle-OppenheimerFunds' full-service 401k program that provides the investment alternatives, educational materials, client servicing and automation tools needed for small to medium-sized businesses.
• Record(k)eeper Pro(sm)-A fully automated unbundled 401k recordkeeping program. It offers a robust lineup of investments including Oppenheimer funds and outside investment options, premier recordkeeping services through Financial Administrative Services Corporation (FASCore), and personalized administrative services with the third party administrator (TPA) of the plan's choice. (Roth 401k feature is dependent on whether the plan's TPA will offer the feature.)
• Custom Plus-OppenheimerFunds' program that provides maximum plan design flexibility with the competitive costs of an unbundled 401k approach. (Roth 401k feature is dependent on whether the plan's TPA will offer the feature.)

  In support of its new Roth 401k and Roth 403(b) offerings, OppenheimerFunds has developed variety of educational materials for financial advisors, participants and plan sponsors including Q&A documents, fact sheets and supporting literature on the new savings opportunities.

  "We recognize that each employee has his or her own unique retirement goals," added Stoma. "We are pleased to offer advisors and plan sponsors a broad selection of retirement programs to help participants as they pursue their retirement savings goals."

  About OppenheimerFunds, Inc.

  OppenheimerFunds, Inc. is one of the nation's largest and most respected investment management companies. As of September 30, 2005, OppenheimerFunds, Inc., including subsidiaries and controlled affiliates, managed more than $190 billion in assets, including mutual funds having more than 6 million shareholder accounts.

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