Oberweis Fund N-CSR Certified annual shareholder report (management investment company)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-4854

The Oberweis Funds

(Exact name of registrant as specified in charter)

3333 Warrenville Rd. Ste. 500, Lisle, IL	60532
(Address of principal executive offices)	(Zip code)

James W. Oberweis,

The Oberweis Funds, 3333 Warrenville Road, Suite 500, Lisle, IL 60532

(Name and address of agent for service)

Copy To:

James A. Arpaia,

Vedder Price P.C. 222 North Lasalle Street, Suite 2600, Chicago, IL 60601

Registrant’s telephone number, including area code: (800) 323-6166

Date of fiscal year end: December 31

Date of reporting period: December 31, 2007

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. §3507.

ITEM 1. REPORTS TO STOCKHOLDERS.

The Annual Report to Stockholders Follows.

                        

The OBERWEIS FUNDS

A VISION FOR FUTURE GROWTH

ANNUAL REPORT

AUDITED

DECEMBER 31, 2007

• The Emerging Growth Fund

• The Micro-Cap Fund

• The Mid-Cap Fund

• The China Opportunities Fund

• The International Opportunities Fund

1-800-245-7311

www.oberweisfunds.com

PRESIDENT’S LETTER

Dear Fellow Oberweis Funds Shareholder:

I am pleased to report a solid year for The Oberweis Funds. The China Opportunities Fund again delivered strong gains, appreciating +59.29%, following a gain of +81.17% in 2006. Our newest Fund, the International Opportunities Fund, returned +41.00% in 2007. Among our U.S.-focused Funds, the Micro-Cap Fund returned +10.17%, the Emerging Growth Fund returned +6.82%, and the Mid-Cap Fund returned +14.99%.

On a global basis, China was again a great place to invest in 2007. Despite governmental measures designed to slow the economy, growth in China continued at a rapid pace. Within the U.S., small-cap growth equities delivered good results, particularly when compared to their small-cap value brethren. After value stocks dominated the market from 2000-2006, the tables turned in 2007; the Russell 2000 Growth Index returned 7.1%, significantly better than the Russell 2000 Value Index return of -9.8%. On a capitalization basis, larger-cap stocks performed better than small-cap stocks during the year, with the Russell 1000 Growth Index (a large cap proxy) outperforming the Russell 2000 Growth Index by 470 basis points. Finally, in the international marketplace, the benchmark S&P/Citigroup EMI Growth World Ex-US Index returned +7.1% for the period February 1, 2007 through December 31, 2007. Our International Opportunities Fund performed much better, stemming from favorable stock selection in the industrial and consumer discretionary sectors.

While the year was a positive one, it looked much better prior to the fourth quarter. Gains were eroded in the final five months as investors reacted to the sub-prime mortgage crisis, looming $100 per barrel crude oil, accelerating inflation, and the prospect of a recession in 2008. After gaining almost 10% through late July, the S&P 500 Index dropped nearly 12% over the following four weeks as the magnitude of the housing market crisis became more apparent to the market. While the final tally on the S&P 500 Index produced a modest 5.5% gain for the year, stock volatility increased in the latter half of the year as investors reacted skittishly to news on the housing market, banking write-downs, and Federal Reserve moves (both speculated and actual). To stem a possible financial crisis, the Fed reduced interest rates three times late in the year and repeatedly injected liquidity into the system through open market operations. The correction has accelerated into January 2008. Due to the recent decline, stock valuations for smaller, high-growth companies, as measured by average P/E ratios as of the end of January 2008, are substantially lower than historical averages.

The average forward P/E ratio at the end of 2007 was 20.0 times for the Micro-Cap Fund, 24.3 times for the Emerging Growth Fund, 26.0 times for the Mid-Cap Fund, 33.5 times for the China Opportunities Fund, and 20.4 times for the International Opportunities Fund. As of 12/31/07, the weighted average market capitalization was $387 million for the Micro-Cap, $1.2 billion for the Emerging Growth, $3.4 billion for the Mid-Cap, $2.4 billion for International Opportunities and $5.9 billion for China Opportunities.

We are also proud to announce the launch of our sixth Fund, The Oberweis Asia Opportunities Fund (OBAOX), on February 1, 2008. Interested investors may obtain a prospectus at www.oberweisfunds.com. At present, all of The Oberweis Funds are open to new investors. If you have any questions about your account, please contact shareholder services at (800) 245-7311. Thank you for investing with us in The Oberweis Funds.

Sincerely,

James W. Oberweis, CFA

President & Portfolio Manager

2

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE

Market Environment

Global equities returned 7.11% in 2007, as measured by the S&P Citigroup BMI World Index. Emerging Asian countries including China led global returns. U.S. returns were more modest, with the S&P 500 returning 5.5% for the year. On a capitalization basis, larger-cap stocks performed better than small-cap stocks during the year, with the Russell 1000 Growth Index (a large cap proxy) outperforming the Russell 2000 Growth Index by 470 basis points. Domestic small-cap growth stocks outperformed small-cap value. After value stocks dominated the market from 2000-2006, the tables turned in 2007; the Russell 2000 Growth Index returned 7.1%, significantly better than the Russell 2000 Value Index return of -9.8%.

Gains were eroded in the final five months as investors reacted to the sub-prime mortgage crisis, looming $100 per barrel crude oil, accelerating inflation, and the prospect of a recession in 2008. Stock volatility increased in the latter half of the year as investors reacted skittishly to news on the housing market, banking write-downs, and Federal Reserve moves (both speculated and actual). To stem a possible financial crisis, the Fed reduced interest rates three times late in the year and repeatedly injected liquidity into the system through open market operations.

Discussion of The Oberweis Funds

For the year ending December 31, 2007, the Oberweis Micro-Cap Fund appreciated +10.17% and the Emerging Growth Fund appreciated +6.82%. For comparison, the benchmark Russell 2000 Growth Index appreciated +7.05%.

For the Micro-Cap Fund, the energy and technology sectors were the most important contributors to performance. The Fund’s holdings in these two sectors outperformed the corresponding sectors of the benchmark and the Fund benefited from higher relative weightings in these sectors as well. Healthcare was the greatest detractor to Fund performance. At the stock level, Vasco Data Security and Flotek Industries were among the top contributors to performance, while Kenexa and Vital Images were among the top detractors.

For the Emerging Growth Fund, financials and consumer discretionary were the most important contributing sectors compared to the benchmark. Stock selections in these two sectors significantly outperformed the benchmark sector returns. However, these gains were offset by the Fund’s healthcare and producer durables holdings, which underperformed and caused the Fund to slightly trail its benchmark for the year. At the stock level, Aquantive and Sigma Designs were among the top contributors to performance, while Heelys and Optium were among the top detractors.

The Oberweis Mid-Cap Fund appreciated +14.99%. For comparison, the Russell 2500 Growth Index appreciated +9.69% and the Russell Midcap Growth Index gained 11.43%. Favorable appreciation in the Fund’s consumer discretionary holdings helped performance. At the stock level, Intuitive Surgical and Baidu.com were among the top contributors to performance, while Heelys and Force Protection were among the top detractors.

3

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

The Oberweis China Opportunities Fund returned +59.29% for the year ended December 31, 2007. The benchmark S&P/Citigroup EMI China Index returned +78.36%. Despite strong absolute gains, the Fund underperformed its benchmark for the year. The benchmark index includes larger capitalization issues as well as A-shares, neither of which have played a significant role in the Fund but both of which performed particularly well for the index in 2007. Baidu.com and China National Building Materials were among the top contributors; China Life Insurance and Pine Agritech were among the top detractors.

Since inception on 2/1/2007, the Oberweis International Opportunities Fund returned +41.00% versus +7.10% for the S&P/Citigroup EMI Growth World Ex-US Index. A higher relative weight and strong stock selection in industrials materially contributed to performance. Also, favorable stock selection in the consumer sector contributed. At the stock level, Meyer Burger Technology and Korea Line Corp were among the top contributors to performance; Moneysupermarket.com and Temenos Group AG were among the top detractors.

The annual portfolio turnover rates were 65% for the Micro-Cap Fund, 85% for the Emerging Growth Fund, 110% for the Mid-Cap Fund, and 68% for the China Opportunities Fund. For the period February 1, 2007 through December 31, 2007, the portfolio turnover rate was 126% for the International Opportunities Fund. The annual net expense ratios were 1.58% for Micro-Cap, 1.28% for Emerging Growth, 1.80% for Mid-Cap, 1.78% for China Opportunities. For the period February 1, 2007 through December 31, 2007, the annualized net expense ratio was 1.99% for International Opportunities.

4

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

The SEC adopted a requirement that Funds present their portfolio holdings in a table, chart or graph format in their annual and semi-annual reports to shareholders, whether or not a schedule of investments is utilized. The following tables, which present portfolio holdings as a percentage of net assets, are provided in compliance with this requirement.

Oberweis Emerging Growth Fund

At December 31, 2007

Asset Allocation
Common Stocks	95.9	%
Commercial Paper	3.1	%
Warrants	0.3	%
Other Assets in excess of Liabilities	0.7	%
	100.0	%
Top Holdings
Focus Media Hldg. Ltd.	3.9	%
Sigma Designs, Inc.	3.2	%
Vasco Data Security Intl., Inc.	2.6	%
eHealth, Inc.	2.5	%
Synaptics, Inc.	2.4	%
Carrizo Oil & Gas, Inc.	2.4	%
Synchronoss Technologies, Inc.	2.3	%
Omrix Biopharmaceuticals, Inc.	2.1	%
Shoretel, Inc.	2.0	%
Zoltek Companies, Inc.	2.0	%
Other Holdings	74.6	%
	100.0	%
Top Industries
Computer Services Software & Systems	19.4	%
Communication Technology	7.9	%
Oil Crude Producer	6.0	%
Electronics Semi-Conductors	5.8	%
Advertising Agency	5.5	%
Computer Technology	5.2	%
Service Commercial	4.0	%
Healthcare Management Services	3.8	%
Drugs & Pharmaceuticals	3.6	%
Electronic Medical Systems	3.6	%
Other Industries	35.2	%
	100.0	%

Oberweis Micro-Cap Fund

At December 31, 2007

Asset Allocation
Common Stocks	98.9	%
Commercial Paper	1.7	%
Warrants	0.5	%
Other Liabilities in excess of Assets	(1.1	)%
	100.0	%
Top Holdings
Double-Take Software, Inc.	3.5	%
Omrix Biopharmaceuticals, Inc.	3.2	%
LSB Industries, Inc.	2.9	%
Vocus, Inc.	2.8	%
T-3 Energy Services, Inc.	2.7	%
Vasco Data Security Intl., Inc.	2.6	%
Astronics Corp.	2.6	%
Cybersource Corp.	2.6	%
Sigma Designs, Inc.	2.5	%
Perficient, Inc.	2.5	%
Other Holdings	72.1	%
	100.0	%
Top Industries
Computer Services Software & Systems	23.4	%
Machine Oilwell Equipment	8.2	%
Service Commercial	7.9	%
Chemicals	5.8	%
Biotechnology	4.9	%
Electronic Semi-Conductors	4.2	%
Communication Technology	3.7	%
Electronic Medical Systems	3.4	%
Metal Fabricating	3.1	%
Technology Misc.	2.8	%
Other Industries	32.6	%
	100.0	%

5

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

Oberweis Mid-Cap Fund

At December 31, 2007

Asset Allocation
Common Stocks	99.0	%
Other Assets in excess of Liabilities	1.0	%
	100.0	%
Top Holdings
Illumina, Inc.	4.5	%
Intuitive Surgical, Inc.	4.5	%
Omrix Biopharmaceutical, Inc.	3.9	%
FLIR Systems, Inc.	3.7	%
Nuance Communications, Inc.	3.2	%
Hologic, Inc.	3.2	%
BE Aerospace, Inc.	2.9	%
Cubist Pharmaceuticals, Inc.	2.5	%
Chipotle Mexican Grill, Inc.	2.4	%
Vasco Data Security Intl., Inc.	2.4	%
Other Holdings	66.8	%
	100.0	%
Top Industries
Computer Services Software & Systems	16.7	%
Electronic Medical Systems	13.9	%
Biotech Research & Production	8.4	%
Machine Oilwell	6.9	%
Health Care Management Services	4.7	%
Retail	4.5	%
Communication Technology	4.0	%
Electronics	3.7	%
Textile-Apparel Manufacturer	3.6	%
Electronics Semi-Conductors	3.2	%
Other Industries	30.4	%
	100.0	%

Oberweis China Opportunities Fund

At December 31, 2007

Asset Allocation
Common Stocks	98.8	%
Commercial Paper	1.7	%
Warrants	0.1	%
Other Liabilities in excess of Assets	(0.6	)%
	100.0	%
Top Holdings
Suntech Power Hldgs. Co. Ltd	3.3	%
Lee Man Paper Manufacturing Ltd	3.2	%
Baidu.com, Inc. ADR	2.9	%
Focus Media Hldgs. Ltd	2.8	%
China National Building Material Co. Ltd	2.8	%
Ezra Hldgs. Ltd	2.4	%
Raffles Education Corp. Ltd	2.3	%
Li Ning Co. Ltd	2.2	%
China Resources Power Hldgs. Co.	2.0	%
Parkson Retail Group Ltd	2.0	%
Other Holdings	74.1	%
	100.0	%
Top Industries
Internet Software & Services	7.5	%
Textile, Apparel & Luxury Goods	7.0	%
Electrical Equipment	6.7	%
Paper & Forest Products	6.6	%
Hotels Restaurants & Leisure	5.5	%
Energy Equipment & Services	4.9	%
Media	4.8	%
Machinery	4.5	%
Multiline Retail	4.1	%
Diversified Consumer Services	4.1	%
Other Industries	44.3	%
	100.0	%

6

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

Oberweis International Opportunities Fund

At December 31, 2007

Asset Allocation
Common Stocks	92.2	%
Commercial Paper	5.7	%
Other Assets in excess of Liabilities	2.1	%
	100.0	%
Top Holdings
Game Group	3.8	%
Wellstream Hldgs. PLC	3.6	%
Flsmidth & Co. AS	3.5	%
Roth & Rau AG	3.0	%
Hellenic Exchanges	2.8	%
Meyer Burger Technology AG	2.7	%
Boskalis Westminster	2.7	%
Aixtron AG	2.5	%
Schoeller-Bleckmann Oilfield	2.4	%
Tradus PLC	2.2	%
Other Holdings	70.8	%
	100.0	%
Top Industries
Machinery	18.4	%
Construction & Engineering	12.2	%
Energy Equipment & Services	9.4	%
Specialty Retail	5.8	%
Software	4.2	%
Textile, Apparel & Luxury Goods	3.4	%
Capital Markets	3.1	%
Electronic Equipment & Instruments	3.0	%
Diversified Financial Services	2.8	%
Commercial Service & Supply	2.7	%
Other Industries	35.0	%
	100.0	%

7

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

Average Annual Total Returns ⁽¹⁾ 

Periods ended 12/31/07

	One Year		Five Years		Ten Years		Since Inception 1/7/87		Expense Ratio (2)
OBEGX	+6.82	%	+15.45	%	+7.55	%	+11.02	%	1.29	%
Russell 2000 Growth	+7.05	%	+16.50	%	+4.32	%	+7.81	%
Russell 2000	-1.57	%	+16.25	%	+7.08	%	+9.95	%

Growth of an Assumed $10,000 Investment

from January 7, 1987 to December 31, 2007

⁽¹⁾ Performance data represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. You can obtain performance data current to the most recent month by visiting www.oberweisfunds.com. Returns are historical and include changes in share price and reinvestment of dividends and capital gains. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The Oberweis Funds invest in rapidly growing smaller and medium sized companies, which may offer greater return potential. However, these investments often involve greater risks and volatility. There is no guarantee that the portfolios can achieve their objectives.

The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted earnings growth rates. The Russell 2000 Index measures the performance of 2000 companies with small-market capitalizations. The Russell indices are unmanaged and are not available for investment. A sales load of 4% was charged on the Oberweis Emerging Growth Fund until December 31, 1991 and is not reflected in the total return figures or graph above.

⁽²⁾ Expense ratio is the total annual fund operating expense ratio gross of any fee waivers or expense reimbursement.

8

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

Average Annual Total Returns ⁽¹⁾ 

Periods ended 12/31/07

	One Year		Five Years		Ten Years		Since Inception 1/1/96		Expense Ratio (2)
OBMCX	+10.17	%	+21.93	%	+12.21	%	+12.92	%	1.59	%
Russell 2000 Growth	+7.05	%	+16.50	%	+4.32	%	+5.58	%
Russell 2000	-1.57	%	+16.25	%	+7.08	%	+9.04	%

Growth of an Assumed $10,000 Investment

from January 1, 1996 to December 31, 2007

⁽¹⁾ Performance data represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. You can obtain performance data current to the most recent month by visiting www.oberweisfunds.com. Returns are historical and include changes in share price and reinvestment of dividends and capital gains. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The Oberweis Funds invest in rapidly growing smaller and medium sized companies, which may offer greater return potential. However, these investments often involve greater risks and volatility. There is no guarantee that the portfolios can achieve their objectives.

The Russell 2000 Growth Index measures the performance of those Russell 2000 companies with higher price-to-book ratios and higher forecasted earnings growth rates. The Russell 2000 Index measures the performance of 2000 companies with small-market capitalizations. The Russell indices are unmanaged and are not available for investment.

⁽²⁾ Expense ratio is the total annual fund operating expense ratio gross of any fee waivers or expense reimbursement.

9

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

Average Annual Total Returns ⁽¹⁾ 

Period ended 12/31/07

	One Year		Five Years		Ten Years		Since Inception 9/15/96		Expense Ratio (2)
OBMDX	+14.99	%	+17.20	%	+7.86	%	+7.70	%	1.83	%
Russell 2500 Growth	+9.69	%	+17.43	%	+6.63	%	+7.47	%
Russell 2000	-1.57	%	+16.25	%	+7.08	%	+8.81	%

Growth of an Assumed $10,000 Investment

from September 15, 1996 to December 31, 2007

⁽¹⁾ Performance data represents past performance, which is no guarantee of future results. Current performance may be higher or lower than the performance shown. You can obtain performance data current to the most recent month by visiting www.oberweisfunds.com. Returns are historical and include changes in share price and reinvestment of dividends and capital gains. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. The Oberweis Funds invest in rapidly growing smaller and medium sized companies, which may offer greater return potential. However, these investments often involve greater risks and volatility. There is no guarantee that the portfolios can achieve their objectives.

The Russell 2000 Index measures the performance of 2000 companies with small-market capitalizations. The Russell 2500 Growth Index measures the performance of Russell 2500 companies with lower price-to-book ratios and lower forecasted growth values. The Russell indices are unmanaged and are not available for investment.

⁽²⁾ Expense ratio is the total annual fund operating expense ratio gross of any fee waivers or expense reimbursement.

10

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

Average Annual Total Returns ⁽¹⁾ 

Periods ended 12/31/07

	One Year		Since Inception 10/1/05		Expense Ratio (2)
OBCHX	+59.29	%	+65.64	%	1.78	%
S&P/Citigroup EMI China	+78.36	%	+67.81	%

Growth of an Assumed $10,000 Investment

from October 1, 2005 to December 31, 2007

⁽¹⁾ Performance data represents past performance, which is no guarantee of future results. Returns are historical and include changes in share price and reinvestment of dividends and capital gains. Current performance may be higher or lower than the performance shown. You can obtain performance data current to the most recent month by visiting www.oberweisfunds.com. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The Oberweis Funds invest in rapidly growing smaller and medium sized companies, which may offer greater return potential. However, these investments often involve greater risks and volatility. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. There is no guarantee that the portfolios can achieve their objectives.

The S&P/Citigroup EMI China Index represents the smallest 20% of companies, ranked by total market capitalization, which qualify for inclusion in the S&P/Citigroup BMI China Index, which is an unmanaged broad market index of the universe of institutionally investable securities in China.

⁽²⁾ Expense ratio is the total annual fund operating expense ratio gross of any fee waivers or expense reimbursement.

11

THE OBERWEIS FUNDS

MANAGEMENT DISCUSSION

ON FUND PERFORMANCE (continued)

Average Annual Total Returns ⁽¹⁾ 

Periods ended 12/31/07

	Since Inception 2/1/07		Expense Ratio (2)
OBIOX	+41.00	%	2.00	% (3)
S&P/Citigroup EMI Growth World EX US	+7.10	%

Growth of an Assumed $10,000 Investment

from February 1, 2007 to December 31, 2007

⁽¹⁾ Performance data represents past performance, which is no guarantee of future results. Returns are historical and include changes in share price and reinvestment of dividends and capital gains. Current performance may be higher or lower than the performance shown. You can obtain performance data current to the most recent month by visiting www.oberweisfunds.com. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. The Oberweis Funds invest in rapidly growing smaller and medium sized companies, which may offer greater return potential. However, these investments often involve greater risks and volatility. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. There is no guarantee that the portfolios can achieve their objectives.

The S&P/Citigroup EMI Growth World Ex-US Index captures the bottom 20% of institutionally investable capital of developed countries selected by the index sponsor, outside the United States.

⁽²⁾ Expense ratio is the total annual fund operating expense ratio gross of any fee waivers or expense reimbursement.

⁽³⁾ Annualized.

12

OBERWEIS EMERGING GROWTH FUND

Schedule of Investments

December 31, 2007

	Shares	Value
EQUITIES - 95.9%
Advertising Agency - 5.5%
Focus Media Hldg. Ltd. ADR *	149,978	$	8,520,250
inVentiv Health, Inc.*	40,750		1,261,620
ValueClick, Inc.*	101,500		2,222,850
			12,004,720
Auto Trucks & Parts - 0.8%
Spartan Motors, Inc.	234,400		1,790,816
Banks - 0.4%
Pinnacle Financial Partners, Inc.*	33,300		846,486
Biotechnology - 2.1%
Omrix Biopharmaceuticals, Inc.*	130,100		4,519,674
Building Materials - 2.0%
Zoltek Companies, Inc.*	100,000		4,287,000
Commercial Information Service - 0.6%
LoopNet, Inc.*	93,500		1,313,675
Communication Technology - 7.9%
Acme Packet, Inc.*	152,864		1,924,558
Atheros Communications, Inc.*	127,300		3,887,742
Geoeye, Inc.*	21,297		716,644
Globecom Systems, Inc.*	134,600		1,574,820
Novatel Wireless, Inc.*	154,700		2,506,140
Shoretel, Inc.*	319,650		4,465,510
Sierra Wireless, Inc.*	145,600		2,162,160
			17,237,574
Computer Services Software & Systems - 19.4%
Chordiant Software, Inc.*	214,500		1,833,975
Concur Technologies, Inc.*	81,600		2,954,736
DealerTrack Hldgs., Inc.*	102,200		3,420,634
Double-Take Software Inc.*	149,800		3,253,656
Interactive Intelligence, Inc.*	154,100		4,060,535
Kenexa Corp.*	68,600		1,332,212
PROS Hldgs., Inc.*	128,600		2,523,132
Sapient Corp.*	180,100		1,586,681
Sigma Designs, Inc.*	128,508		7,093,642
Stanley, Inc.*	120,500		3,858,410
Synchronoss Technologies, Inc.*	141,000		4,997,040
Vasco Data Security International, Inc.*	201,600		5,628,672
			42,543,325

See accompanying notes to the financial statements.

13

OBERWEIS EMERGING GROWTH FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Computer Technology - 5.2%
Advanced Analogic Technologies, Inc.*	146,800	$	1,655,904
Falconstor Software, Inc.*	258,900		2,915,214
Phoenix Technologies Ltd.*	112,000		1,442,560
Synaptics, Inc.*	129,400		5,326,104
			11,339,782
Drugs & Pharmaceuticals- 3.6%
Caraco Pharmaceutical Laboratories, Ltd. *	46,800		802,620
Obagi Medical Products, Inc.*	231,400		4,232,306
Salix Pharmaceuticals Ltd.*	5,766		45,436
Sciele Pharma, Inc.*	137,467		2,811,200
			7,891,562
Electrical - 0.6%
Axsys Technologies, Inc.*	11,990		439,434
Orion Energy Systems, Inc.*	42,100		785,586
			1,225,020
Electronics - Instruments - 0.4%
Virtual Radiologic Corp.*	39,000		790,920
Electronic Medical Systems - 3.6%
Accuray, Inc.*	276,800		4,212,896
Cynosure, Inc.*	86,600		2,291,436
Natus Medical, Inc.*	66,800		1,292,580
			7,796,912
Electronics Semi-Conductors - 5.8%
Anadigics, Inc.*	133,300		1,542,281
AuthenTec, Inc.*	24,800		360,344
IPG Photonics Corp.*	128,400		2,566,716
Mellanox Technologies Ltd.*	83,500		1,521,370
O2Micro International Ltd. ADR *	241,600		2,788,064
Tessera Technologies, Inc.*	97,103		4,039,485
			12,818,260
Energy Misc. - 0.8%
Dawson Geophysical Co.*	25,200		1,800,792
Finance Companies - 0.8%
Life Partners Hldgs., Inc	67,200		1,861,440
Financial Data Product Services - 2.7%
CyberSource Corp.*	148,000		2,629,960
Exlservice Hldgs., Inc.*	145,500		3,358,140
			5,988,100

See accompanying notes to the financial statements.

14

OBERWEIS EMERGING GROWTH FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Foods - 0.5%
Sunopta, Inc.*	90,000	$	1,201,500
Forms & Bulk Print - 1.9%
InnerWorkings, Inc.*	240,600		4,152,756
Health Care Management Services - 3.8%
Allscripts Healthcare, Inc.*	185,518		3,602,759
HealthExtras, Inc.*	93,000		2,425,440
Omnicell, Inc.*	90,300		2,431,779
			8,459,978
Health Care Services - 2.5%
Healthways, Inc.*	42,766		2,499,245
Nighthawk Radiology Hldgs., Inc.*	146,800		3,090,140
			5,589,385
Insurance - 2.5%
eHealth, Inc.*	173,100		5,558,241
Machine Oilwell Equipment - 2.0%
Dril-Quip, Inc.*	42,600		2,371,116
Flotek Industries Inc.*	34,100		1,228,964
T-3 Energy Services, Inc.*	19,400		911,994
			4,512,074
Machinery Specialty - 0.2%
TurboChef Technologies, Inc.*	30,900		509,850
Materials & Commodities Misc. - 0.3%
Ceradyne, Inc.*	13,102		614,877
Medical &Dental Services - 0.9%
Genoptix, Inc.*	9,600		294,720
Lifecell Corp.*	37,100		1,599,381
			1,894,101
Metal Fabricating - 1.5%
Dynamic Materials Corp	57,600		3,392,640
Oil Crude Producer - 6.0%
Arena Resources, Inc.*	91,200		3,803,952
Carrizo Oil & Gas, Inc.*	97,001		5,310,805
Gulfport Energy Corp.*	96,400		1,760,264
Warren Resources, Inc.*	164,500		2,324,385
			13,199,406
Production Technology Equipment - 0.5%
Fei Co.*	42,800		1,062,724

See accompanying notes to the financial statements.

15

OBERWEIS EMERGING GROWTH FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Restaurants - 0.9%
BJ’s Restaurants, Inc.*	118,500	$	1,926,810
Retail - 1.6%
Volcom, Inc.*	75,003		1,652,316
Zumiez, Inc.*	76,600		1,865,976
			3,518,292
Service Commercial- 4.0%
G-Market, Inc. ADR *	123,200		3,067,680
Liquidity Services, Inc.*	164,800		2,125,920
Perficient, Inc.*	120,800		1,901,392
The Knot, Inc.*	104,900		1,672,106
			8,767,098
Shoes - 1.2%
Iconix Brand Group, Inc.*	130,200		2,559,732
Technology Misc.- 0.4%
Dice Hldgs., Inc.*	97,100		775,829
Telecommunications - 0.8%
Opnext, Inc.*	208,800		1,847,880
Textile-Apparel Manufacturer - 0.3%
Lululemon Athletica *	11,900		563,703
Wholesale & International Trade - 1.9%
Central European Distribution Corp.*	73,350		4,260,168
Total Equities (Cost: $169,122,792)		$	210,423,102
	Face Amount	Value
Commercial Paper - 3.1%
HSBC Financial Corp	4,500,000
4.45%, due 01/03/2008		$	4,500,000
Toyota Motor Credit Corp	400,000
4.18%, due 01/03/2008			400,000
Toyota Motor Credit Corp	2,000,000
3.50%, due 01/03/2008			2,000,000
Total Commercial Paper - (Cost: $6,900,000)		$	6,900,000

See accompanying notes to the financial statements.

16

OBERWEIS EMERGING GROWTH FUND

Schedule of Investments (continued)

December 31, 2007

	Units	Value
Warrants - 0.3%
Internet Software & Systems
Think Partnership, Inc. ($2.50, expires 04/03/11)†	540,000	$	374,946
Think Partnership, Inc. ($3.05, expires 12/05/11)†	170,043		122,127
Think Partnership, Inc. ($4.00, expires 12/05/11)†	85,022		53,899
Total Warrants (Cost: $0)		$	550,972
Total Investments - 99.3% (Cost: $176,022,792)		$	217,874,074
Other Assets less Liabilities 0.7%			1,449,196
Net Assets - 100%		$	219,323,270

Based on the cost of investments of $176,279,086 for federal income tax purposes at December 31, 2007, the aggregate gross unrealized appreciation was $56,791,839 the aggregate gross unrealized depreciation was $15,196,851 and the net unrealized appreciation of investments was $41,594,988.

† Fair Valued Security

* Non-Income producing security during the year ended December 31, 2007.

ADR American Depositary Receipt

See accompanying notes to the financial statements.

17

OBERWEIS MICRO-CAP FUND

Schedule of Investments

December 31, 2007

	Shares	Value
EQUITIES - 98.9%
Air Transport - 0.7%
Edac Technologies Co.*	35,000	$	342,300
Banks - 1.1%
Alliance Bankshares Corp.*	11,800		77,762
Silver State Bancorp *	34,450		485,745
			563,507
Biotechnology - 4.9%
Omrix Biopharmaceuticals, Inc.*	46,300		1,608,462
Repligen Corp.*	137,400		899,970
			2,508,432
Casinos & Gambling - 0.3%
Century Casinos, Inc.*	21,400		137,816
Chemicals - 5.8%
KMG Chemicals, Inc	16,300		235,698
LSB Industries, Inc.*	51,700		1,458,974
Ultralife Batteries, Inc.*	61,900		1,247,285
			2,941,957
Commercial Information System - 1.1%
Internet Gold-Golden Lines Ltd.*	48,000		571,200
Communication Technology - 3.7%
Ceragon Networks Ltd.*	94,500		934,605
Chyron Corp.*	20,300		110,635
Network Equipment Technologies, Inc. *	59,200		498,464
Telular Corp.*	50,275		344,384
			1,888,088
Computer Services Software & Systems - 23.4%
Bitstream, Inc.*	41,300		264,320
ClickSoftware Technologies Ltd.*	203,600		822,544
Document Sciences Co.*	21,000		304,290
Double-Take Software, Inc.*	82,500		1,791,900
Ebix, Inc.*	8,800		636,680
Edgewater Technology, Inc.*	24,800		181,040
Global Med Technologies, Inc.*	68,300		73,764
GlobalScape, Inc.*	110,200		608,304
GSE Systems, Inc.*	62,800		643,072
Guidance Software Inc.*	23,000		320,620
Innodata Isogen, Inc.*	51,300		274,455
Kenexa Corp.*	63,532		1,233,792
NetSol Technologies, Inc.*	155,900		375,719
Sigma Designs, Inc.*	23,400		1,291,680

See accompanying notes to the financial statements.

18

OBERWEIS MICRO-CAP FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Silverstar Hldgs. Ltd.*	274,300	$	485,511
Simulations Plus, Inc.*	200,000		766,020
Unica Corp.*	10,700		98,975
Vasco Data Security International, Inc.*	48,008		1,340,383
Website Pros, Inc.*	34,900		405,189
			11,918,258
Computer Technology - 2.7%
NCI, Inc.*	37,000		633,070
Silicom Ltd.*	51,600		720,852
			1,353,922
Control & Filter Devices - 0.6%
K-Tron International, Inc.*	2,500		298,125
Diversified Production - 2.6%
Astronics Corp.*	31,500		1,338,750
Drugs & Pharmaceuticals - 0.8%
Questcor Pharmaceuticals, Inc.*	68,700		396,399
Education Services - 1.1%
GP Strategies Corp.*	51,800		551,670
Electronic Instruments - 1.1%
Perceptron, Inc.*	55,900		590,863
Electronic Medical Systems - 3.4%
Somanetics Corp.*	41,722		986,725
Visicu, Inc.*	65,100		772,737
			1,759,462
Electronics Semi-Conductors - 4.2%
Alliance Fiber Optic Products, Inc.*	57,300		114,600
AXT, Inc.*	149,700		928,140
Catalyst Semiconductor, Inc.*	97,600		453,840
NVE Corp.*	23,900		587,940
Simtek Corp.*	14,708		33,975
			2,118,495
Engineering & Construction Services - 1.8%
Versar, Inc.*	49,100		318,168
VSE Corp	11,900		581,196
			899,364
Equipment Misc. - 0.2%
MFRI, Inc.*	7,900		84,293

See accompanying notes to the financial statements.

19

OBERWEIS MICRO-CAP FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Financial Data Product Services - 2.6%
Cybersource Corp.*	73,929	$	1,313,718
Financial Information Services - 0.7%
TheStreet.com, Inc.	22,500		358,200
Health Care Facilities - 1.2%
Almost Family, Inc.*	31,700		613,712
Health Care Misc. - 0.3%
American Caresource Hldgs., Inc.*	50,100		160,320
Machine Oilwell Equipment - 8.2%
Allis-Chalmers Energy, Inc.*	41,600		613,600
Bolt Technology Corp.*	25,200		957,096
Flotek Industries, Inc.*	35,000		1,261,400
T-3 Energy Services, Inc.*	28,900		1,358,589
			4,190,685
Machinery - Construction - 0.1%
Paragon Technologies, Inc.*	9,900		67,815
Machinery & Engineering - 0.4%
Peerless Mfg. Co.*	4,500		185,355
Machine Tools - 0.9%
Hurco Companies, Inc.*	10,378		453,000
Medical & Dental Instruments & Supply - 2.7%
Rochester Medical Corp.*	19,299		214,991
Span-America Medical Systems, Inc	2,900		32,799
Synovis Life Technologies, Inc.*	32,100		627,555
Transcend Services, Inc.*	31,000		503,750
			1,379,095
Medical & Dental Services - 0.6%
Tutogen Medical, Inc.*	31,900		329,208
Metal Fabricating - 3.1%
Dynamic Materials Corp	21,202		1,248,798
Graham Corp	6,300		330,120
			1,578,918
Oil Crude Producer - 1.4%
Geokinetics, Inc.*	35,700		694,365
Oil Integrated Domestic - 1.0%
GMX Resources, Inc.*	16,000		516,480

See accompanying notes to the financial statements.

20

OBERWEIS MICRO-CAP FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Pollution & Environmental Service - 1.7%
Fuel - Tech N.V.*	38,600	$	874,290
Retail - 0.5%
Appliance Recycling Centers of America, Inc.*	26,400		236,280
Service Commercial - 7.9%
Bidz.com, Inc.*	72,300		648,531
CRM Hldgs. Ltd.*	93,800		735,392
ICF International, Inc.*	26,500		669,390
Inx, Inc.*	15,500		161,975
Perficient, Inc.*	80,618		1,268,927
Rainmaker Systems, Inc.*	88,134		569,346
			4,053,561
Technology Misc. - 2.8%
Vocus, Inc.*	41,700		1,439,901
Telecommunications - 0.9%
Numerex Corp.*	27,700		228,525
Vicon Industries, Inc.*	25,700		246,720
			475,245
Tires & Rubber - 0.4%
Female Health Co.*	88,700		226,185
Utilities Telecommunication - 1.9%
Commtouch Software Ltd.*	264,200		533,684
RRSAT Global Communication Network Ltd.*	22,500		443,025
			976,709
Wholesalers - 0.1%
Clean Diesel Technologies, Inc.*	1,700		38,981
Total Equities (Cost: $ 39,313,748)		$	50,424,924
	Face Amount	Value
Commercial Paper - 1.7%
HSBC Financial Corp	900,000
4.45%, due 01/03/2008		$	900,000
Total Commercial Paper - (Cost: $ 900,000)		$	900,000

See accompanying notes to the financial statements.

21

OBERWEIS MICRO-CAP FUND

Schedule of Investments (continued)

December 31, 2007

	Units	Value
Warrants - 0.5%
Internet Software & Systems
Think Partnership, Inc. ($2.50, expires 04/03/11)†	260,000	$	180,529
Think Partnership, Inc. ($3.05, expires 12/05/11)†	81,873		58,802
Think Partnership, Inc. ($4.00, expires 12/05/11)†	40,937		25,952
Total Warrants (Cost: $0)		$	265,283
Total Investments - 101.1% (Cost: $40,213,748)		$	51,590,207
Other Liabilities less Assets - (1.1%)			(586,103	)
Net Assets - 100%		$	51,004,104

Based on the cost of investments of $40,272,832 for federal income tax purposes at December 31, 2007, the aggregate gross unrealized appreciation was $14,510,512 the aggregate gross unrealized depreciation was $3,193,137 and the net unrealized appreciation of investments was $11,317,375.

† Fair Valued Security

* Non-Income producing security during the year ended December 31, 2007.

See accompanying notes to the financial statements.

22

OBERWEIS MID-CAP FUND

Schedule of Investments

December 31, 2007

	Shares	Value
EQUITIES - 99.0%
Advertising Agency - 1.9%
Focus Media Hldg. Ltd. ADR *	3,800	$	215,878
Auto Trucks & Parts - 0.8%
Spartan Motors, Inc	12,100		92,444
Beverage - Brewers Wine - 0.9%
Vina Concha y Toro S.A. ADR	2,400		101,952
Biotech Research & Production - 8.4%
Cubist Pharmaceuticals, Inc.*	14,200		291,242
Icon Plc. ADR *	3,600		222,696
Omrix Biopharmaceutical, Inc.*	12,900		448,146
			962,084
Building Materials - 1.9%
Zoltek Companies Inc.*	5,100		218,637
Business & Consumers Discretionary Misc. - 0.4%
Ulta Salon, Cosmetics, and Fragrance, Inc.*	2,500		42,875
Commercial Information Service - 1.7%
Baidu.com, Inc. ADR *	500		194,900
Communication Technology - 4.0%
Aruba Networks, Inc.*	1,800		26,838
Atheros Communications, Inc.*	3,800		116,052
Ciena Corp.*	3,600		122,796
Netgear, Inc.*	5,200		185,484
			451,170
Computer Services Software & Systems - 16.7%
Chordiant Software, Inc.*	13,100		112,005
Commvault Systems, Inc.*	9,400		199,092
Dealertrack Hldgs., Inc.*	6,000		200,820
Kenxa Corp.*	5,200		100,984
Nuance Communications, Inc.*	19,900		371,732
Omniture, Inc.*	8,000		266,320
Sapient Corp.*	17,500		154,175
Synchronoss Technologies, Inc.*	6,800		240,992
Vasco Data Security International, Inc.*	9,800		273,616
			1,919,736
Computer Technology - 2.8%
Riverbed Technology, Inc.*	2,500		66,850
Synaptics, Inc.*	6,200		255,192
			322,042

See accompanying notes to the financial statements.

23

OBERWEIS MID-CAP FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Diverse Financial Services - 2.8%
Euronet Worldwide, Inc.*	5,600	$	168,000
NASDAQ Stock Market, Inc.*	3,200		158,368
			326,368
Drugs & Pharmaceuticals - 2.8%
Adams Respiratory Therapeutics, Inc.*	900		53,766
Sciele Pharmaceutical, Inc.*	7,000		143,150
United Therapeutics Corp.*	1,300		126,945
			323,861
Electronic Medical Systems - 13.9%
Accuray, Inc.*	13,700		208,514
Hologic, Inc.*	5,300		363,792
Illumina, Inc.*	8,700		515,562
Intuitive Surgical, Inc.*	1,591		513,893
			1,601,761
Electronics - 3.7%
FLIR Systems, Inc.*	13,400		419,420
Electronics Semi-Conductors - 3.2%
SunTech Power Hldgs. Co. Ltd. ADR *	2,200		181,104
Tessera Technologies, Inc.*	4,400		183,040
			364,144
Forms & Bulk Print - 1.6%
InnerWorkings, Inc.*	10,800		186,408
Health Care Management Services - 4.7%
Allscripts Healthcare Solutions, Inc.*	6,400		124,288
Amerigroup Corp.*	5,000		182,250
HealthExtras, Inc.*	4,100		106,928
Phase Forward, Inc.*	5,900		128,325
			541,791
Leisure Time - 1.4%
Life Time Fitness, Inc.*	3,200		158,976
Machine Oilwell - 6.9%
Flotek Industries, Inc.*	7,100		255,884
Oceaneering International, Inc.*	4,000		269,400
W-H Energy Services, Inc.*	2,800		157,388
Willbros Group, Inc.*	3,000		114,870
			797,542

See accompanying notes to the financial statements.

24

OBERWEIS MID-CAP FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Oil Crude Producer - 2.9%
ATP Oil & Gas Corp.*	3,500	$	176,890
Gulfport Energy Corp.*	8,500		155,210
			332,100
Producer Durables Misc. - 2.9%
BE Aerospace, Inc.*	6,200		327,980
Restaurants - 2.4%
Chipotle Mexican Grill, Inc.*	1,900		279,433
Retail - 4.5%
Gamestop Corp.*	3,000		186,330
Priceline.com, Inc.*	1,800		206,748
Zumiez, Inc.*	5,200		126,672
			519,750
Textile - Apparel Manufacturer - 3.6%
Guess?, Inc*	6,300		238,707
Under Armour, Inc.*	4,000		174,680
			413,387
Wholesale and International Trade - 2.2%
Central European Distribution Corp.*	4,352		252,764
Total Equities (Cost: $9,491,852)		$	11,367,403
Total Investments - 99.0% (Cost: $9,491,852)		$	11,367,403
Other Assets less Liabilities - 1.0%			116,414
Net Assets - 100%		$	11,483,817

Based on the cost of investments of $9,551,254 for federal income tax purposes at December 31, 2007, the aggregate gross unrealized appreciation was $2,504,703 the aggregate gross unrealized depreciation was $688,554 and the net unrealized appreciation of investments was $1,816,149.

* Non-Income producing security during the year ended December 31, 2007.

ADR American Depositary Receipt

See accompanying notes to the financial statements.

25

OBERWEIS CHINA OPPORTUNITIES FUND

Schedule of Investments

December 31, 2007

	Shares	Value
EQUITIES - 98.8%
Auto Components - 3.1%
Minth Group Ltd.†	7,949,100	$	11,663,791
Xinyi Glass Hldg. Co. Ltd.†	10,866,900		10,433,333
Zhejiang Glass Co.†*	7,705,400		7,157,443
			29,254,567
Chemicals - 0.7%
Jiutian Chemical Group Ltd†	20,909,600		6,795,311
Commercial Service & Supply - 0.3%
Asia Environment Hldgs. Ltd.†	5,341,900		3,039,738
Communications Equipment - 0.9%
China Auto Electronics Group†*	8,336,600		3,433,212
Comtech Group, Inc.*	292,800		4,717,008
			8,150,220
Computers & Peripherals - 0.8%
China Digital TV Hldg. ADR*	268,600		7,246,828
Construction & Engineering - 1.0%
China Communications Construction Co.†	3,497,800		9,042,764
Construction Materials - 3.0%
China National Building Material Co. Ltd.†	6,859,700		25,987,226
China National Materials Co.*	1,527,600		1,861,159
			27,848,385
Containers & Packaging - 0.7%
AMVIG Hldgs. Ltd.†	5,020,200		7,019,807
Distributors - 2.4%
Huabao International Hldgs. Ltd.†	12,573,000		12,449,486
Li & Fung Ltd.†	2,528,800		10,081,601
			22,531,087
Diversified Consumer Services - 4.1%
Hartford Education Corp	2,567,050		312,087
New Oriental Education & Technology Group, Inc ADR*	205,700		16,577,363
Raffles Education Corp. Ltd.†	10,444,900		21,917,274
			38,806,724
Diversified Financial Services - 1.6%
Hong Kong Exchanges & Clearing†	541,700		15,185,899

See accompanying notes to the financial statements.

26

OBERWEIS CHINA OPPORTUNITIES FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Electrical Equipment - 6.7%
China High Speed Transmission†*	6,115,700	$	16,034,595
Dongfang Electrical Machinery Ltd.†	1,518,100		12,686,397
Neo-Neon Hldgs. Ltd.†*	3,858,500		3,809,807
Suntech Power Hldgs. Co., Ltd ADR *	376,300		30,977,016
			63,507,815
Electronic Equipment & Instruments - 1.3%
Kingboard Chemicals Hldgs. Ltd.†	2,085,600		12,321,126
Energy Equipment & Services - 4.9%
China Oilfield Services Ltd.†	7,533,100		16,823,640
Emer International Group Ltd.†*	6,611,800		4,531,356
Ezra Hldgs. Ltd.†	9,890,800		22,584,377
Shandong Molong Petroleum Co., Ltd.†	13,581,500		2,629,593
			46,568,966
Food Products - 2.0%
China Mengniu Dairy Co.†	3,581,900		12,995,378
Synear Food Hldgs. Ltd.†	5,429,200		6,276,894
			19,272,272
Food & Staples Retailing - 0.4%
Olam International Ltd.†	2,162,000		4,252,807
Gas Utilities - 1.2%
China Gas Hldgs. Ltd.†	7,744,500		3,328,862
Xinao Gas Hldgs. Ltd.†	4,185,400		8,275,363
			11,604,225
Health Care Equipment Supplies - 3.1%
Mindray Medical International Ltd. ADR*	345,300		14,837,541
Shandong Weigao Group†	6,141,600		14,065,488
			28,903,029
Hotels Restaurants & Leisure - 5.5%
Ajisen China Hldgs. Ltd.†*	3,716,900		6,590,497
Banyan Tree Hldgs. Ltd.†	3,876,600		5,477,251
Ctrip.com International Ltd. ADR*	316,300		18,177,761
Fu Ji Food & Catering Services Hldgs. Ltd.†	3,581,600		8,193,759
Home Inns & Hotels Mgmt. Inc. ADR *	369,800		13,179,672
			51,618,940
Household Durables - 0.4%
China Water Affairs Group.†*	5,682,000		3,448,594

See accompanying notes to the financial statements.

27

OBERWEIS CHINA OPPORTUNITIES FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Industrial Power Production/Energy Trade - 2.0%
China Resources Power Hldgs.Co.†	5,686,900	$	19,332,426
Internet Software & Services - 7.5%
Alibaba.com Ltd.*	2,124,900		7,535,010
Baidu.com, Inc. ADR *	71,300		27,792,740
Sohu.com, Inc.*	335,700		18,302,364
Tencent Hldgs. Ltd.†	2,237,000		16,707,843
			70,337,957
Leisure Equipment & Products - 2.2%
Li Ning Co. Ltd.†	5,589,100		20,580,194
Life Sciences Tools & Services - 0.7%
Wuxi Pharmatech, Inc. ADR *	230,100		6,728,124
Machinery - 4.5%
China Infrastructure Machinery Hldg.†	7,270,300		11,385,729
Enric Energy Equipment†*	3,215,300		3,715,322
Eva Precision Industrial Hldg.†	9,946,500		3,771,236
Guangzhou Shipyard International Co.†*	1,988,500		11,026,593
Yangzijiang Ship Building†*	9,062,200		12,405,478
			42,304,358
Marine - 1.0%
China Shipping Development†	3,845,300		9,985,037
Media - 4.8%
Air Media Group, Inc. ADR.*	560,400		12,541,752
Focus Media Hldgs. Ltd ADR.*	464,000		26,359,840
VisionChina Media, Inc. ADR.*	708,940		6,025,990
			44,927,582
Metals & Mining - 1.8%
China Molybdenum Co.†*	4,269,100		7,684,150
Zijin Mining Group Co., Ltd.†	6,036,975		9,143,028
			16,827,178
Multiline Retail - 4.1%
Golden Eagle Retail Group Ltd.†	6,861,464		7,106,447
Lifestyle, International Hldgs. Ltd.†	4,634,700		12,397,380
Parkson Retail Group Ltd.†	1,619,700		19,328,945
			38,832,772

See accompanying notes to the financial statements.

28

OBERWEIS CHINA OPPORTUNITIES FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Paper & Forest Products - 6.6%
China Grand Forestry†*	64,177,200	$	13,409,277
Lee Man Paper Manufacturing Ltd.†	6,872,900		29,963,231
Nine Dragons Paper Hldgs. Ltd.†	7,705,000		19,257,954
			62,630,462
Personal Products - 2.6%
China Flavors & Fragrances†	9,469,348		3,784,266
Ecogreen Fine Chemicals Group†	2,707,200		1,172,400
Hengan International Groups Co., Ltd.†	4,327,500		19,234,604
			24,191,270
Real Estate Management & Development - 3.9%
E House China Hldgs. ADS	420,900		10,030,047
Guangzhou R&F Properties Co., Ltd.†	3,062,600		10,741,684
Hopson Develpment Hldgs. Ltd.†	1,572,200		4,287,992
Sino-Ocean Land Hldgs.*	2,258,500		2,797,998
Yanlord Land Group Ltd.†	3,863,300		8,827,793
			36,685,514
Software - 1.0%
Longtop Financial Technologies Ltd. ADR *	330,525		7,826,832
VanceInfo Technologies, Inc. ADR *	218,130		1,963,170
			9,790,002
Specialty Retail - 1.2%
Belle International Hldgs.†	7,533,700		11,270,695
Semiconductors & Semi Equipment - 0.5%
Trina Solar Ltd. ADR *	95,200		5,121,760
Textile, Apparel & Luxury Goods - 7.0%
Anta Sports Products Co. Ltd.†*	10,120,700		13,922,809
China Hongxing Sports Ltd.†	14,964,300		9,819,916
China Sky Chemical Fibre Co.†	9,766,300		14,861,304
Peace Mark Hldgs. Ltd.†	9,182,400		14,584,158
Ports Design Ltd.†	3,653,195		12,529,483
			65,717,670
Trading Co. & Distribution - 1.4%
KS Energy Services Ltd.†	5,918,200		13,097,376
Transport Infrastructure - 1.2%
Hong Kong Aircraft Engineering†	412,600		11,136,422

See accompanying notes to the financial statements.

29

OBERWEIS CHINA OPPORTUNITIES FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Water Utilities - 0.7%
Epure International Ltd†*	4,839,500	$	7,004,827
Total Equities (Cost: $596,075,047)		$	932,920,730
	Face Amount	Value
Commercial Paper - 1.7%
Toyota Motor Credit	16,000,000
4.18%, due 01/03/2008		$	16,000,000
Total Commercial Paper (Cost: $16,000,000)		$	16,000,000
	Units	Value
Warrants - 0.1%
Chemicals
Jiutian Chemical Group Ltd. ($0.80, expires 10/15/10)	4,587,700	$	478,068
Total Warrants (Cost: $0)		$	478,068
Total Investments - 100.6% (Cost: $612,075,047)		$	949,398,798
Other Liabilities less Assets - (0.6%)			(5,574,024	)
Net Assets - 100%		$	943,824,774

Based on the cost of investments of $615,633,764 for federal income tax purposes at December 31, 2007, the aggregate gross unrealized appreciation was $349,713,335, the aggregate gross unrealized depreciation was $15,948,301 and the net unrealized appreciation of investments was $333,765,034.

† Fair Valued Security

* Non-Income producing security during the year ended December 31, 2007.

ADR American Depositary Receipt
COUNTRY ALLOCATION (as a percentage of Net Assets)
China (Includes the People’s Republic of China and Hong Kong)	87.0	%
Taiwan	0.4	%
Singapore	11.4	%

See accompanying notes to the financial statements.

30

OBERWEIS INTERNATIONAL OPPORTUNITES FUND

Schedule of Investments

December 31, 2007

	Shares	Value
EQUITIES - 92.2%
Australia - 8.8%
Ausenco Ltd.	100,000	$	1,336,389
Computershare Ltd.	105,000		910,887
JB HI-FI Ltd.	160,000		2,191,608
Leighton Hldgs. Ltd.	44,000		2,364,407
Monadelphous Group Ltd.	108,000		1,307,694
Tassal Group Ltd.	490,883		1,810,279
			9,921,264
Austria - 2.4%
Schoeller-Bleckmann Oilfield†	30,000		2,691,188
Canada - 2.0%
Absolute Software Corp.*	60,000		2,229,900
Denmark - 3.5%
Flsmidth & Co. AS†	39,000		3,976,874
Finland - 4.2%
Elisa Corp.†	21,000		642,220
Konecranes OYJ†	26,000		885,673
Outokumpu Technology†	28,000		1,518,141
Poyry OYJ†	64,000		1,622,237
			4,668,271
France - 1.8%
Seloger.com *	35,000		2,057,108
Germany - 6.6%
Aixtron AG†*	200,000		2,779,157
Roth & Rau AG†*	9,200		3,428,291
SGL Carbon AG†*	23,000		1,244,526
			7,451,974
Greece - 6.4%
Hellenic Exchanges	90,000		3,158,033
Jumbo S.A	49,000		1,776,686
Sprider Stores S.A	300,000		2,280,802
			7,215,521
HongKong - 3.9%
Pacific Basin Shipping Ltd.	100,000		161,336
Shandong Weigao Group Medical	671,900		1,551,055
Weichai Power Co. Ltd.	190,000		1,386,488
Xinyi Glass Hldg. Co. Ltd.	1,377,400		1,338,997
			4,437,876

See accompanying notes to the financial statements.

31

OBERWEIS INTERNATIONAL OPPORTUNITIES FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Italy - 2.1%
Ducati Motor Hldg.†*	1,100,000	$	2,313,800
Japan - 5.1%
Hitachi Construction Machinery†	25,000		742,124
NGK Insulators Ltd.†	62,000		1,662,301
O-M Ltd.†	120,000		1,015,103
Shima Seiki Mfg. Ltd.†	38,000		1,742,729
Works Applications Co. Ltd.†	500		544,012
			5,706,269
Netherlands - 4.3%
Boskalis Westminster	49,000		2,984,546
Smit International NV	18,000		1,842,186
			4,826,732
Norway - 2.8%
Odim ASA†*	150,000		2,325,573
Tandberg ASA†	40,900		844,486
			3,170,059
Russia- 0.5%
Wimm-Bill-Dann Foods OJSC ADR	4,500		589,680
Singpore- 2.0%
China Hongxing Sports Ltd.	1,300,000		866,998
Tat Hong Hldgs. Ltd.	600,000		1,425,544
			2,292,542
South Korea - 2.4%
Hyundai Mipo Dockyard†	3,500		1,062,457
Korea Line Corp.†	1,500		260,858
Taewoong Co. Ltd.†	15,000		1,415,680
			2,738,995
Spain- 1.2%
Grifols SA†	54,000		1,212,179
Sweden - 5.5%
Axis Communications AB†	77,100		1,886,481
Betsson AB†	160,000		2,020,842
Hagstromer & Qviberg AB†	58,000		1,558,445
Odd Molly International AB†*	25,000		678,811
			6,144,579

See accompanying notes to the financial statements.

32

OBERWEIS INTERNATIONAL OPPORTUNITIES FUND

Schedule of Investments (continued)

December 31, 2007

	Shares	Value
Switzerland - 6.4%
Burckhardt Compression Hldg.†	7,000	$	2,271,281
Meyer Burger Technology AG†*	8,200		3,018,767
Swissquote Group Hldgs†	35,000		1,944,564
			7,234,612
United Kingdom - 20.3%
Aggreko	135,000		1,432,339
Aquarius Platinum	120,000		1,373,517
Aveva Group	100,000		1,921,929
Game Group	870,000		4,329,564
Lamprell PLC	200,000		1,711,920
MoneySupermarket.com *	30,000		83,605
Senior PLC	500,000		1,171,968
Severfield-Rowen	20,000		183,136
Tradus PLC *	69,679		2,486,951
Weir Group	125,000		2,014,243
Wellstream Hldgs. PLC *	190,000		4,096,067
Wood Group (John) PLC	240,000		2,068,636
			22,873,875
Total Equities (Cost: $81,958,559)		$	103,753,298
	Face Amount	Value
Commercial Paper - 5.7%
HSBC Financial Corp	1,900,000
4.45%, due 01/03/2008		$	1,900,000
Toyota Motor Credit	4,500,000
3.50%, due 01/03/2008			4,500,000
Total Commercial Paper (Cost: $6,400,000)		$	6,400,000
Total Investments - 97.9% (Cost: $88,358,559)		$	110,153,298
Other Assets less Liabilities - 2.1%			2,316,674
Net Assets - 100%		$	112,469,972

Based on the cost of investments of $89,040,277 for federal income tax purposes at December 31, 2007, the aggregate gross unrealized appreciation was $21,969,299 the aggregate gross unrealized depreciation was $856,278 and the net unrealized appreciation of investments was $21,113,021.

† Fair Valued Security

* Non-Income producing security during the year ended December 31, 2007.

ADR American Depositary Receipt

See accompanying notes to the financial statements.

33

THE OBERWEIS FUNDS

Statement of Assets and Liabilities

December 31, 2007

	Emerging Growth Fund		Micro-Cap Fund		Mid-Cap Fund
Assets:
Investment securities at value	$	217,874,074	$	51,590,207	$	11,367,403
(Cost: $176,022,792, $40,213,748 and $9,491,852 respectively)
Cash		249,817		—		95,899
Receivable from fund shares sold		594,306		58,770		18,853
Receivable from securities sold		2,396,014		43,908		15,414
Dividends and interest receivable		3,792		875		661
Prepaid expenses		14,131		12,602		5,842
Total Assets		221,132,134		51,706,362		11,504,072
Liabilities:
Payable to custodian bank		—		458,506		—
Payable for fund shares redeemed		278,908		26,088		639
Payable for securities purchased		1,266,018		138,480		—
Payable to advisor (see note 2)		153,028		43,731		7,852
Payable to distributor		47,158		10,933		2,454
Accrued expenses		63,752		24,520		9,310
Total Liabilities		1,808,864		702,258		20,255
Net Assets	$	219,323,270	$	51,004,104	$	11,483,817
Analysis of net assets:
Capital	$	174,951,860	$	38,681,014	$	9,018,395
Undistributed net realized gains (losses) on investment and foreign currency transactions		2,520,128		946,631		589,871
Net unrealized appreciation of investments and translation of assets and liabilities denominated in foreign currencies		41,851,282		11,376,459		1,875,551
Net Assets	$	219,323,270	$	51,004,104	$	11,483,817
The Pricing of Shares:
Net asset value and offering price per share
Emerging Growth Fund:
($219,323,270 divided by 8,501,501 shares outstanding)	$	25.80
Micro-Cap Fund:
($51,004,104 divided by 3,278,648 shares outstanding)			$	15.56
Mid-Cap Fund:
($11,483,817 divided by 738,419 shares outstanding)					$	15.55

See accompanying notes to the financial statements.

34

THE OBERWEIS FUNDS

Statement of Assets and Liabilities

December 31, 2007

	China Opportunities Fund		International Opportunities Fund
Assets:
Investment securities at value	$	949,398,798	$	110,153,298
(Cost: $612,075,047 and $88,358,559 respectively)
Cash		—		570,348
Receivable from fund shares sold		1,334,077		241,776
Receivable from securities sold		6,596,445		6,487,783
Receivable from foreign tax reclaims		—		14,897
Dividends and interest receivable		304,189		24,539
Prepaid expenses		103,023		36,892
Total Assets		957,736,532		117,529,533
Liabilities:
Payable to custodian bank		5,294,457		—
Payable for fund shares redeemed		4,482,498		116,891
Payable for securities purchased		2,586,313		4,739,470
Payable to advisor (see note 2)		1,034,535		129,151
Payable to distributor		206,907		24,490
Accrued expenses		307,048		49,559
Total Liabilities		13,911,758		5,059,561
Net Assets	$	943,824,774	$	112,469,972
Analysis of net assets:
Capital	$	577,026,147	$	91,453,067
Undistributed net realized gains (losses) on investment and foreign currency transactions		29,473,720		(778,245	)
Net unrealized appreciation of investments and translation of assets and liabilities denominated in foreign currencies		337,324,907		21,795,150
Net Assets	$	943,824,774	$	112,469,972
The Pricing of Shares:
Net asset value and offering price per share
China Opportunities Fund:
($943,824,774 divided by 32,481,592 shares outstanding)	$	29.06
International Opportunities Fund:
($112,469,972 divided by 7,974,512 shares outstanding)			$	14.10

See accompanying notes to the financial statements.

35

THE OBERWEIS FUNDS

Statement of Operations

Year Ended December 31, 2007

	Emerging Growth Fund			Micro-Cap Fund			Mid-Cap Fund
Investment Income:
Interest	$	255,086		$	45,310		$	7,417
Dividends		50,255			102,615			2,237
Total Income		305,341			147,925			9,654
Expenses:
Investment advisory fees (see note 2)		884,681			321,493			45,304
Management fees (see note 2)		859,681			214,329			45,304
Distribution and shareholder services fees (see note 2)		537,301			133,955			28,315
Transfer agent fees and expenses		208,604			63,689			27,112
Custodian fees and expenses		138,340			70,102			42,640
Federal and state registration fees		37,380			19,682			14,311
Other		97,561			27,785			4,713
Total expenses before earnings credits		2,763,548			851,035			207,699
Earnings credit (see note 5)		8,983			3,630			3,998
Total Expenses		2,754,565			847,405			203,701
Net Investment Income (Loss)		(2,449,224	)		(699,480	)		(194,047	)
Net Realized and Unrealized Gains (Losses) from Investments:
Net realized gains on investment transactions		23,296,686			6,908,739			1,235,895
Increase (decrease) in unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		(7,420,577	)		(1,034,526	)		383,101
Net realized /unrealized gains on investments and foreign currencies		15,876,109			5,874,213			1,618,996
Net increase in net assets resulting from operations	$	13,426,885		$	5,174,733		$	1,424,949

See accompanying notes to the financial statements.

36

THE OBERWEIS FUNDS

Statement of Operations

Year Ended December 31, 2007

	China Opportunities Fund			International Opportunities Fund*
Investment Income:
Interest	$	3,291,626		$	124,273
Dividends(a)		7,214,209			840,695
Total Income		10,505,835			964,968
Expenses:
Investment advisory and management fees		10,518,280			1,014,441
Distribution and shareholder services fees (see note 2)		2,103,656			202,888
Transfer agent fees and expenses		929,610			101,182
Custodian fees and expenses		915,226			235,307
Other		515,575			68,299
Total expenses before earnings credits		14,982,347			1,622,117
Earnings credit (see note 5)		10,151			4,885
Total Expenses		14,972,196			1,617,232
Net Investment Income (Loss)		(4,466,361	)		(652,264	)
Net Realized and Unrealized Gains (Losses) from Investments:
Net realized gains (losses) on investment transactions		107,343,695			(778,245	)
Net realized gains on foreign currency transactions		(47,175	)		(33,368	)
Net realized gains (losses) on investment and foreign currency transactions		107,296,520			(811,613	)
Increase in unrealized appreciation on investments and translation of assets and liabilities denominated in foreign currencies		245,822,121			21,795,150
Net realized /unrealized gains on investments and foreign currencies		353,118,641			20,983,537
Net increase in net assets resulting from operations	$	348,652,280		$	20,331,273

* For the period from February 1, 2007 (commencement of operations) through December 31, 2007.

^(a) Dividends are net of foreign withholding tax of $8,890 and $68,711 for the China Opportunities Fund and the International Opportunities Fund, respectively.

See accompanying notes to the financial statements.

37

THE OBERWEIS FUNDS

Statements of Changes in Net Assets

	Emerging Growth Fund
	Year Ended December 31, 2007			Year Ended December 31, 2006
From Operations:
Net investment loss	$	(2,449,224	)	$	(2,205,740	)
Net realized gains on investments		23,296,686			7,613,371
Increase (decrease) in net unrealized appreciation of investments		(7,420,577	)		1,973,910
Net increase in net assets resulting from operations		13,426,885			7,381,541
From Distributions:
Distributions from net realized gains on investments		(25,010,586	)		(6,977,001	)
From Capital Share Transactions:
Proceeds from sale of shares		84,891,558			81,658,413
Proceeds from reinvestment of distributions		23,734,410			6,380,186
Redemption of shares		(76,764,286	)		(73,376,518	)
Net increase from capital share transactions		31,861,682			14,662,081
Total increase in net assets		20,277,981			15,066,621
Net Assets:
Beginning of year		199,045,289			183,978,668
End of year	$	219,323,270		$	199,045,289
Transactions in Shares:
Shares sold		2,978,611			2,935,204
Shares issued in reinvestment of dividends		913,213			247,486
Less shares redeemed		(2,703,835	)		(2,694,828	)
Net increase from capital share transactions		1,187,989			487,862

See accompanying notes to the financial statements.

38

THE OBERWEIS FUNDS

Statements of Changes in Net Assets

	Micro-Cap Fund
	Year Ended December 31, 2007			Year Ended December 31, 2006
From Operations:
Net investment loss	$	(699,480	)	$	(849,755	)
Net realized gains on investments		6,908,739			5,995,915
Decrease in net unrealized appreciation of investments		(1,034,526	)		(5,702,474	)
Net increase (decrease) in net assets resulting from operations		5,174,733			(556,314	)
From Distributions:
Distributions from net realized gains on investments		(6,199,169	)		(4,914,691	)
From Capital Share Transactions:
Proceeds from sale of shares		5,769,071			22,780,129
Proceeds from reinvestment of distributions		5,898,482			4,773,092
Redemption of shares		(15,426,931	)		(34,649,521	)
Net decrease from capital share transactions		(3,759,378	)		(7,096,300	)
Total decrease in net assets		(4,783,814	)		(12,567,305	)
Net Assets:
Beginning of year		55,787,918			68,355,223
End of year	$	51,004,104		$	55,787,918
Transactions in Shares:
Shares sold		324,990			1,260,834
Shares issued in reinvestment of dividends		379,568			311,967
Less shares redeemed		(900,156	)		(2,048,433	)
Net decrease from capital share transactions		(195,598	)		(475,632	)

See accompanying notes to the financial statements.

39

THE OBERWEIS FUNDS

Statements of Changes in Net Assets

	Mid-Cap Fund
	Year Ended December 31, 2007			Year Ended December 31, 2006
From Operations:
Net investment loss	$	(194,047	)	$	(189,303	)
Net realized gains on investments		1,235,895			1,136,078
Increase (decrease) in net unrealized appreciation of investments		383,101			(68,290	)
Net increase in net assets resulting from operations		1,424,949			878,485
From Distributions:
Distributions from net realized gains on investments		(414,988	)		—
From Capital Share Transactions:
Proceeds from sale of shares		3,307,068			5,134,641
Proceeds from reinvestment of distributions		338,782			—
Redemption of shares		(3,846,947	)		(4,110,868	)
Net increase (decrease) from capital share transactions		(201,097	)		1,023,773
Total increase in net assets		808,864			1,902,258
Net Assets:
Beginning of year		10,674,953			8,772,695
End of year	$	11,483,817		$	10,674,953
Transactions in Shares:
Shares sold		210,477			374,822
Shares issued in reinvestment of dividends		21,469			—
Less shares redeemed		(254,706	)		(313,945	)
Net increase (decrease)from capital share transactions		(22,760	)		60,877

See accompanying notes to the financial statements.

40

THE OBERWEIS FUNDS

Statements of Changes in Net Assets

	China Opportunities Fund
	Year Ended December 31, 2007			Year Ended December 31, 2006
From Operations:
Net investment loss	$	(4,466,361	)	$	(266,886	)
Net realized gains (losses) on investment and foreign currency transactions		107,296,520			(15,167,592	)
Increase in net unrealized appreciation of investments and translation of assets and liablities denominated in foreign currencies		245,822,121			90,948,105
Net increase in net assets resulting from operations		348,652,280			75,513,627
From Distributions:
Distributions from net realized gains on investments		(62,697,147	)		—
From Capital Share Transactions:
Proceeds from sale of shares		920,633,110			513,892,921
Proceeds from reinvestment of distributions		58,156,256			—
Redemption of shares		(767,003,200	)		(150,793,806	)
Net increase from capital share transactions		211,786,166			363,099,115
Total increase net assets		497,741,299			438,612,742
Net Assets:
Beginning of year		446,083,475			7,470,733
End of year	$	943,824,774		$	446,083,475
Transactions in Shares:
Shares sold		38,416,604			32,056,485
Shares issued in reinvestment of dividends		2,010,936			—
Less shares redeemed		(30,787,332	)		(9,908,000	)
Net increase from capital share transactions		9,640,208			22,148,485

See accompanying notes to the financial statements.

41

THE OBERWEIS FUNDS

Statements of Changes in Net Assets

	International Opportunities Fund
	Period Ended December 31, 2007 *
From Operations:
Net investment loss	$	(652,264	)
Net realized loss on investment and foreign currency transactions		(811,613	)
Increase in net unrealized appreciation of investments and translation of assets and liablities denominated in foreign currencies		21,795,150
Net increase in net assets resulting from operations		20,331,273
From Capital Share Transactions:
Proceeds from sale of shares		145,940,269
Redemption of shares		(53,801,570	)
Net increase from capital share transactions		92,138,699
Total increase net assets		112,469,972
Net Assets:
Beginning of year		—
End of year	$	112,469,972
Transactions in Shares:
Shares sold		12,002,336
Less shares redeemed		(4,027,824	)
Net increase from capital share transactions		7,974,512

* For the period from February 1, 2007 (commencement of operations) through December 31, 2007.

See accompanying notes to the financial statements.

42

THE OBERWEIS FUNDS

Notes to Financial Statements

December 31, 2007

1. Significant Accounting Policies

Description of business. The Oberweis Funds (the “Trust”) is registered under the Investment Company Act of 1940 as a diversified open-end management investment company. The Trust is authorized to operate numerous Funds under various trading strategies. The Trust consists of five Funds: the Oberweis Emerging Growth Fund, the Oberweis Micro-Cap Fund, the Oberweis Mid-Cap Fund, the Oberweis China Opportunities Fund, and the Oberweis International Opportunities Fund(collectively, the Funds).

Investment valuation. Investments in securities are stated at value as of the close of the regular trading session on the New York Stock Exchange (NYSE) (generally 3 p.m., Central Standard Time). Each listed and unlisted security for which last sale information is regularly reported is valued at the last reported sales price on that day. If there has been no sale on such day, then such security is valued at the current day’s bid price. Any unlisted security for which last sale information is not regularly reported and any listed debt security which has an inactive listed market for which over-the-counter market quotations are readily available is valued at the closing bid price determined on the basis of reasonable inquiry. Options are valued at the last reported bid price on the primary exchange as of the close of the regular trading session of the Chicago Board Options Exchange (CBOE). Restricted securities and any other securities or other assets for which market quotations are not readily available are valued by appraisal at their fair value as determined in good faith under procedures established by and under the general supervision and responsibility of the Board of Trustees. Short-term debt instruments maturing within 60 days are valued by the amortized cost method, which approximates fair value.

The Oberweis China Opportunities Fund and the Oberweis International Opportunities Fund hold foreign equity securities. Foreign securities at fair value are described in the circumstances below. Generally, trading in foreign securities markets is completed each day at various times prior to the close of the regular trading session of the NYSE. Due to the time differences between the closings of the relevant foreign securities exchanges and the close of the regular trading session of the NYSE for the Funds, the Funds will fair value their foreign investments when it is determined that the market quotations for the foreign investments either are not readily available or are unreliable and, therefore, do not represent fair value. When the fair value prices are utilized, these prices will attempt to reflect the impact of the U.S. financial markets’ perceptions and trading activities on the Funds’ foreign investments since the last closing prices of the foreign investments were calculated on their primary foreign securities markets or exchanges. For these purposes, the Board of Trustees of the Trust has determined that movements in relevant indices, after the close of the foreign securities exchanges, may demonstrate that market quotations are unreliable, and may trigger fair value pricing for certain securities. Consequently, fair valuation of portfolio securities may occur on a daily basis. In determining fair value prices, the Trust utilizes data furnished by an independent pricing service (and that data draws upon, among other information, the market values of foreign investments). When a Fund uses fair value pricing, the values assigned to the Fund’s foreign investments may not be the quoted or published prices of the investments on their primary markets or exchanges.

Foreign Currency Transactions. The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expenses are translated at the prevailing rate of exchange on the respective date

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of these transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. These fluctuations are included with the net realized and unrealized gains or losses from investments and foreign currencies.

Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries.

Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and a high price volatility with respect to securities of issuers from developing countries.

Fund share valuation. Fund shares are sold and redeemed on a continuous basis at net asset value. On each day the New York Stock Exchange is open for trading, the net asset value per share is determined as of the later of the close of the New York Stock Exchange or the Chicago Board of Options Exchange (CBOE) by dividing the total value of each Fund’s investments and other assets, less liabilities, by the number of each Fund’s shares outstanding.

Investment transactions and investment income. Investment transactions are accounted for on the trade date (date the order to buy or sell is executed). Dividend income is recorded on the ex-dividend date, and interest income is recorded on the accrual basis and includes amortization of premium and discount. Realized gains and losses from investment transactions are reported on an identified cost basis. Gains and losses on premiums from expired options are recognized on the date of expiration.

Federal income taxes and dividends to shareholders. It is each Fund’s policy and intention to comply with the provisions of the Internal Revenue Code available to investment companies and therefore no federal income tax provision is required. Dividends payable to its shareholders are recorded by each Fund on the ex-dividend date. Dividends are determined in accordance with income tax principles which may treat certain transactions differently from generally accepted accounting principles. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are considered permanent in nature, such amounts are reclassified within the composition of net assets based on their federal tax basis treatment; temporary differences do not require reclassification. The tax character of distributions paid during the fiscal year ended December 31, 2007, to shareholders of record on December 27, 2007 were as follows:

	Distributions Paid From Ordinary Income		Distributions Paid From Net Long-Term Capital Gains		Total Distributions Paid
Emerging Growth Fund	$	—	$	25,010,586	$	25,010,586
Micro-Cap Fund		—		6,199,169		6,199,169
Mid-Cap Fund		—		414,988		414,988
China Opportunities Fund		—		62,697,147		62,697,147

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No distributions were required for the International Opportunities Fund. The Funds designated the following amounts as long term capital gain distributions:

	Amount
Emerging Growth Fund	$	25,010,586
Micro-Cap Fund		6,199,169
Mid-Cap Fund		414,988
China Opportunities Fund		62,697,147

The tax character of distributions paid during the fiscal year ended December 31, 2006, to shareholders of record on November 6, 2006, were as follows:

	Distributions Paid From Ordinary Income		Distributions Paid From Net Long-Term Capital Gains		Total Distributions Paid
Emerging Growth Fund	$	—	$	6,977,001	$	6,977,001
Micro-Cap Fund		—		4,914,691		4,914,691

No distributions were made for the Mid-Cap Fund and China Opportunities Fund. The Micro-Cap Fund includes $1,849,015 of earnings and profit distributed to shareholders on redemptions of their shares:

	Amount
Emerging Growth Fund	$	6,977,001
Micro-Cap Fund		6,763,706

The tax components of undistributed net investment income and net realized gains at December 31, 2007 were as follows:

	Undistributed Ordinary Income		Undistributed Net Long-Term Capital Gains
Emerging Growth Fund	$	—	$	2,776,422
Micro-Cap Fund		—		1,005,717
Mid-Cap Fund		—		649,787
China Opportunities Fund		—		33,031,987

As of December 31, 2007, the following Funds had net capital loss carryforwards to offset future net capital gains, if any, to the extent provided by treasury regulations:

	2012		2013		2014		2015
International Opportunities Fund	$	—	$	—	$	—	$	96,526

Net capital losses incurred after October 31 and within the taxable year are deemed to arise on the first business day of the Fund’s next taxable year. For the year ended December 31, 2007, the International Opportunities Fund deferred to January 1, 2008 post-October capital losses of $18,903.

The Funds adopted Financial Accounting Standards Board (“FASB”) Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an Interpretation of FASB Statement No. 109 (“FIN 48”) effective June 29, 2007. FIN 48 requires management to determine whether a tax position of the Fund is more likely than not to be sustained upon examination by the applicable taxing authority, including resolution of any related appeals or litigation processes, based

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on the technical merits of the position. The tax benefit to be recognized is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. FIN 48 must be applied to all existing tax positions upon initial adoption and the cumulative effect, if any, is to be reported as an adjustment to net assets.

As of December 31, 2007, Management has evaluated the known implications of FIN 48 on its computation of net assets for the Funds. As a result of this evaluation, management believes that FIN 48 does not have any effect on the Fund’s Financial Statements. However, management’s conclusions regarding FIN 48 may be subject to review and adjustment at a later date based on factors including, but not limited to, further implementation guidance from the FASB, new tax laws, regulations, and administrative interpretations (including relevant court decisions). Each Fund’s federal tax returns for the prior three fiscal years remain subject to examination by the Internal Revenue Service. The Funds are not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months.

Use of estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates.

Indemnifications. Under the Trusts’ organizational documents, its present and former Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, in the normal course of business, the Trust enters into contracts that provide general indemnifications to other parties. The Trusts’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Trust that have not yet occurred. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

2. Transactions with affiliates

The Funds have written agreements with Oberweis Asset Management, Inc. (“OAM”) as the Funds’ investment adviser and manager. Oberweis Securities, Inc. (“Oberweis Securities”), the Funds’ principal distributor, is an affiliate of OAM.

Investment advisory agreement. Under the Advisory Agreement, OAM provides investment advisory services to the Emerging Growth, Micro-Cap and Mid-Cap Funds and pursuant to a separate Management Agreement, OAM provides non-investment advisory management services such as adminstrative, compliance and accounting services to these Funds. For investment advisory services, the Emerging Growth Fund paid monthly investment advisory fees at an annual rate equal to .45% of the first $50 million of average daily net assets and .40% of average daily net assets in excess of $50 million. The Micro-Cap Fund paid monthly investment advisory fees at an annual rate equal to .60% of average daily net assets. The Mid-Cap Fund paid monthly investment advisory fees at an annual rate equal to .40% of average daily net assets. For investment advisory and management services, the China Opportunities Fund paid monthly investment advisory and management fees at an annual rate equal to 1.25% of average daily net assets. The Oberweis International Opportunities Fund paid monthly investment advisory and management fees at an annual rate equal to 1.25% of average daily net assets. For the year ended December 31, 2007, the Emerging Growth Fund, Micro-Cap Fund, and Mid-Cap Fund, incurred investment advisory fees totaling $884,681, $321,493, and $45,304, respectively. For the year ended December 31, 2007, the China Opportunities Fund and International Opportunities Fund incurred investment advisory and management fees totaling $10,518,280 and $1,014,441, respectively.

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Management agreement. For management services and facilities furnished, the Emerging Growth Fund, Micro-Cap Fund, and Mid-Cap Fund each paid a monthly fee at an annual rate equal to .40% of average daily net assets. For the year ended December 31, 2007, the Emerging Growth Fund, Micro-Cap Fund, and Mid-Cap Fund incurred management fees totaling $859,681, $214,329 and $45,304, respectively.

Expense reimbursement. OAM is contractually obligated to reduce its management fees or reimburse the Emerging Growth Fund, Micro-Cap Fund, and Mid-Cap Fund to the extent that total ordinary operating expenses, as defined, exceed in any one year the following amounts expressed as a percentage of each Fund’s average daily net assets: 2% of the first $25,000,000; plus 1.8% of the next $25,000,000; plus 1.6% of average daily net assets in excess of $50,000,000. OAM is also contractually obligated to reduce its investment and management fees or reimburse the China Opportunities Fund and the International Opportunities Fund to the extent that total ordinary operating expenses, as defined, exceed in any one year 2.49% expressed as a percentage of the Funds’ average daily net assets. For the year ended December 31, 2007 OAM has not reimbursed the Funds.

Officers and trustees. Certain officers or trustees of the Trust are also officers or directors of OAM and Oberweis Securities. For the year ended December 31, 2007, the Trust made no direct payments to its officers and paid $40,000 to its unaffiliated trustees.

Distribution and shareholder service agreement. The Funds have a distribution and shareholder services agreement with Oberweis Securities. For services under the distribution and shareholder services agreement, the Funds pay Oberweis Securities a fee at the annual rate of .25% of the average daily net assets as compensation for services. For the year ended December 31, 2007, the Emerging Growth Fund, Micro-Cap Fund, Mid-Cap Fund, China Opportunities Fund, and International Opportunites Fund incurred distribution fees totaling $537,301, $133,955, $28,315, $2,103,656, and $202,888, respectively.

3. Investment transactions

The cost of securities purchased and proceeds from securities sold during the year ended December 31, 2007, other than commercial paper, aggregated $179,835,655 and $176,905,351, respectively, for the Emerging Growth Fund, $34,655,456 and $46,596,244, respectively, for the Micro-Cap Fund, $12,231,633 and $13,011,259, respectively, for the Mid-Cap Fund, and $680,305,158 and $521,098,201, respectively, for the China Opportunities Fund and $187,480,458 and $104,704,594, respectively for the International Opportunities Fund. The Funds did not hold government securities during the year ended December 31, 2007.

The Funds may write covered call options. The premiums received provide a partial hedge (protection) against declining prices and enables each Fund to generate a higher return during periods when OAM does not expect the underlying security to make any major price moves in the near future but still deems the underlying security to be, over the long term, an attractive investment for each Fund. The Funds write covered call options for which premiums received are recorded as liabilities and are subsequently adjusted to the current value of the options written. Premiums received from writing options that expire are treated as realized gains. Premiums received from writing options, which are either exercised or closed, are offset against the proceeds received or amount paid on the transaction to determine realized gains or losses. Amounts recovered for securities litigation are included in the realized gains of the Fund and are recorded when received. The Funds did not write covered call options for the year ended December 31, 2007.

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4. Redemption fee

The Oberweis Funds are designed for long-term investors. To discourage market timers redemptions of shares of the Emerging Growth Fund, Micro-Cap Fund, and Mid-Cap Fund within 90 days of purchase are subject to a 1% redemption fee of the total redemption amount and 2% for the China Opportunities Fund, and the International Opportunities Fund. The redemption fee is deducted from the redemption proceeds and is retained by the Fund.

The redemption fee is retained by the Funds for the expense they incur in connection with shareholder redemptions. Redemption fees received by the Emerging Growth Fund, Micro-Cap Fund, Mid-Cap Fund, China Opportunities Fund, and International Opportunities Fund were $29,211, $6,188, $15,677, $4,251,465, and $251,375, respectively, for the year ended December 31, 2007, and were recorded as a reduction of the cost of shares redeemed in the statements of changes in net assets.

5. Earnings credits and interest charges

The Trust, as part of the agreement with the Custodian, receives credits against its custodian fees on its uninvested cash balances and is allowed to borrow for temporary purposes. Borrowings are not to exceed 5% of the value of each Fund’s total assets at the time of any such borrowing. Interest on amounts borrowed is calculated at the prime rate and is payable monthly. During the year ended December 31, 2007, the Emerging Growth Fund, Micro-Cap Fund, Mid-Cap Fund, China Opportunities Fund, and International Opportunities received credits of $8,983, $3,630, $3,998, $10, 151, and $4,885, respectively. During the year ended December 31, 2007, the Emerging Growth Fund, Micro-Cap Fund, Mid-Cap Fund, China Opportunities Fund, and International Opportunities Fund incurred interest charges of $13,397, $17,276, $2,401, $55,600, and $12,610, respectively, which is included in custodian fees and expenses in the statement of operations.

6. New Accounting Pronouncement

SFAS No. 157 was issued by the Financial Standards Accounting Board in September, 2006. This standard is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value and requires additional disclosures about fair value measurements. SFAS No. 157 applies to fair value measurements already required or permitted by existing standards. Management of the Funds is currently evaluating the impact that SFAS No. 157 will have on the Funds’ financial statements.

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THE OBERWEIS FUNDS

Financial Highlights

Per share income and capital for a share outstanding throughout each period is as follows:

	Emerging Growth Fund
	Years ended December 31,
	2007			2006			2005			2004			2003
Net asset value at beginning of year	$	27.22		$	26.95		$	27.93		$	27.05		$	16.13
Income (loss) from investment operations:
Net investment loss(a)		(.33	)		(.30	)		(.33	)		(.36	)		(.27	)
Net realized and unrealized gain on investments		2.21			1.56			1.09			1.99			11.19
Total from investment operations		1.88			1.26			.76			1.63			10.92
Redemption Fees(a)		—			—			—			.01			—
Less distributions:
Distribution from net realized gains on investments		(3.30	)		(.99	)		(1.74	)		(.76	)		—
Net asset value at end of year	$	25.80		$	27.22		$	26.95		$	27.93		$	27.05
Total Return (%)		6.82			4.87			2.74			6.29			67.70
Ratio/Supplemental Data
Net Assets at end of year (in thousands)	$	219,323		$	199,045		$	183,979		$	175,614		$	242,695
Ratio of gross expenses to average net assets (%)		1.29			1.35			1.42			1.44			1.37
Ratio of net expenses to average net assets (%)(b)		1.28			1.35			1.41			1.44			1.37
Ratio of net investment loss to average net assets (%)		(1.14	)		(1.11	)		(1.26	)		(1.38	)		(1.18	)
Portfolio turnover rate (%)		85			74			75			55			56
Average commission rate paid(c)	$	.0194		$	.0178		$	.0176		$	.0199		$	.0206

Notes:

^(a) The net investment loss per share data was determined using average shares outstanding during the period.

^(b) The ratios in this column reflect the impact, if any, of expense offset arrangements.

^(c) Unaudited numbers.

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THE OBERWEIS FUNDS

Financial Highlights

Per share income and capital for a share outstanding throughout each period is as follows:

	Micro-Cap Fund
	Years ended December 31,
	2007			2006			2005			2004			2003
Net asset value at beginning of year	$	16.06		$	17.31		$	17.50		$	26.26		$	13.86
Income (loss) from investment operations:
Net investment loss(a)		(.23	)		(.21	)		(.18	)		(.36	)		(.31	)
Net realized and unrealized gain on investments		1.86			.42			2.29			(.54	)		15.36
Total from investment operations		1.63			.21			2.11			(.90	)		15.05
Redemption Fees(a)		—			.01			.01			.04			.05
Less distributions:
Distribution from net realized gains on investments		(2.13	)		(1.47	)		(2.31	)		(7.90	)		(2.70	)
Net asset value at end of year	$	15.56		$	16.06		$	17.31		$	17.50		$	26.26
Total Return (%)		10.17			1.66			12.72			2.19			108.93
Ratio/Supplemental Data
Net Assets at end of year (in thousands)	$	51,004		$	55,788		$	68,355		$	46,676		$	99,546
Ratio of gross expenses to average net assets (%)		1.59			1.63			1.70			1.69			1.60
Ratio of net expenses to average net assets (%)(b)		1.58			1.62			1.68			1.69			1.60
Ratio of net investment loss to average net assets (%)		(1.31	)		(1.23	)		(1.08	)		(1.54	)		(1.47	)
Portfolio turnover rate (%)		65			108			76			58			87
Average commission rate paid(c)	$	.0198		$	.0172		$	.0171		$	.0195		$	.0200

Notes:

^(a) The net investment loss per share data was determined using average shares outstanding during the period.

^(b) The ratios in this column reflect the impact, if any, of expense offset arrangements.

^(c) Unaudited numbers.

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THE OBERWEIS FUNDS

Financial Highlights

Per share income and capital for a share outstanding throughout each period is as follows:

	Mid-Cap Fund
	Years ended December 31,
	2007			2006			2005			2004			2003
Net asset value at beginning of year	$	14.02		$	12.53		$	11.95		$	11.37		$	7.29
Income (loss) from investment operations:
Net investment loss(a)		(.27	)		(.24	)		(.22	)		(.17	)		(.18	)
Net realized and unrealized gain on investments		2.36			1.72			.80			.74			4.25
Total from investment operations		2.09			1.48			.58			.57			4.07
Redemption Fees(a)		.02			.01			—			.01			.01
Less distributions:
Distribution from net realized gains on investments		(.58	)		—			—			—			—
Net asset value at end of year	$	15.55		$	14.02		$	12.53		$	11.95		$	11.37
Total Return (%)		14.99			11.89			4.85			5.10			55.97
Ratio/Supplemental Data
Net Assets at end of year (in thousands)	$	11,484		$	10,675		$	8,773		$	10,426		$	10,820
Ratio of gross expenses to average net assets (%)		1.83			1.90			2.14			1.96			2.31
Ratio of net expenses to average net assets (%)(b)		1.80			1.83			2.00			1.95			2.00
Ratio of net investment loss to average net assets (%)		(1.71	)		(1.76	)		(1.90	)		(1.52	)		(1.91	)
Portfolio turnover rate (%)		110			112			119			86			29
Average commission rate paid(c)	$	.0183		$	.0175		$	.0168		$	.0196		$	.0200

Notes:

^(a) The net investment loss per share data was determined using average shares outstanding during the period.

^(b) The ratios in this column reflect the impact, if any, of expense offset arrangements and expense reimbursement from the adviser.

^(c) Unaudited numbers.

51

THE OBERWEIS FUNDS

Financial Highlights

Per share income and capital for a share outstanding throughout each period is as follows:

	China Opportunities Fund
	Years Ended December 31,						Period Ended December 31,
	2007			2006			2005(a)
Net asset value at beginning of year	$	19.53		$	10.78		$	10.00
Income (loss) from investment operations:
Net investment loss(b)		(.14	)		(.02	)		(.03	)
Net realized and unrealized gain on investments and translation of assets and liabilities denominated in foreign currencies		11.58			8.70			.81
Total from investment operations		11.44			8.68			.78
Redemption Fees(b)		.13			.07			—
Less distributions:
Distribution from net realized gains on investments		(2.04	)		—			—
Net asset value at end of year	$	29.06		$	19.53		$	10.78
Total Return (%)		59.29			81.17			7.80
Ratio/Supplemental Data
Net Assets at end of year (in thousands)	$	943,825		$	446,083		$	7,471
Ratio of gross expenses to average net assets (%)		1.78			1.91			4.57
Ratio of net expenses to average net assets (%)(c)		1.78			1.91			2.49
Ratio of net investment loss to average net assets (%)		(.53	)		(.15	)		(1.34	)
Portfolio turnover rate (%)		68			53			14
Average commission rate paid(d)	$	.0024		$	.0021		$	.0011

Notes:

^(a) For the period from October 1, 2005 (commencement of operations) through December 31, 2005.

^(b) The net investment loss per share data was determined using average shares oustanding during the period.

^(c) The ratios in this column reflect the impact, if any, of expense offset arrangements and expense reimbursement from the adviser.

^(d) Unaudited numbers.

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THE OBERWEIS FUNDS

Financial Highlights

Per share income and capital for a share outstanding throughout each period is as follows:

	International Opportunities Fund
	Period Ended December 31, 2007(a)
Net asset value at beginning of year	$	10.00
Income (loss) from investment operations:
Net investment loss(b)		(.10	)
Net realized and unrealized gain on investments		4.16
Total from investment operations		4.06
Redemption Fees(b)		.04
Less distributions:
Distribution from net realized gains on investments		—
Net asset value at end of year	$	14.10
Total Return (%)		41.00
Ratio/Supplemental Data
Net Assets at end of year (in thousands)	$	112,470
Ratio of gross expenses to average net assets (%)(c)		2.00
Ratio of net expenses to average net assets (%)(c) (d)		1.99
Ratio of net investment loss to average net assets (%)(c)		(.80	)
Portfolio turnover rate (%)		126
Average commission rate paid(e)	$	.0173

Notes:

^(a) For the period from February 1, 2007 (commencement of operations) through December 31, 2007.

^(b) The net investment loss per share data was determined using average shares outstanding during the period.

^(c) Annualized.

^(d) The ratios in this column reflect the impact, if any, of expense offset arrangements.

^(e) Unaudited number.

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REPORT OF INDEPENDENT REGISTERED PUBLIC

ACCOUNTING FIRM

To the Board of Trustees and Shareholders of

The Oberweis Funds

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of the Oberweis Emerging Growth Fund, Oberweis Micro-Cap Fund, Oberweis Mid-Cap Fund, Oberweis China Opportunities Fund, and Oberweis International Opportunities Fund (five funds constituting The Oberweis Funds, hereafter referred to as the “Funds”) at December 31, 2007, the results of each of their operations for year then ended or the period from February 1, 2007 through December 31, 2007 for the Oberweis International Opportunities Fund, the changes in each of their net assets for the two years then ended or period indicated and the financial highlights for each of the years or periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

February 25, 2008

Chicago, Illinois

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Trustees and Officers of The Oberweis Funds

Name, Address and Age	Position Held with Fund	Term of Office and Length of Time Served
Noninterested Trustees
Katherine Smith Dedrick (50) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Trustee	Trustee since November, 2004(1)
Gary D. McDaniel (59) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Trustee	Trustee since May, 2004(1)
James G. Schmidt (60) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Trustee	Trustee since November, 2003(1)
Interested Trustees
James D. Oberweis (61) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Trustee(2)	Trustee and Officer since July, 1986(1)
Interested Trustees
James W. Oberweis (33) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	President	Officer since August, 1996(3)
Patrick B. Joyce (48) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Executive Vice President and Treasurer	Officer since October, 1994(3)
Martin L. Yokosawa (47) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Senior Vice President	Officer since October, 1994(3)
David I. Covas (32) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Vice President	Officer since August, 2004(3)
Eric V. Hannemann (34) 3333 Warrenville Road, Suite 500 Lisle, IL 60532	Secretary	Officer since August, 2005(3)

⁽¹⁾ Unless otherwise noted, each trustee shall serve as a trustee of the Fund until the next meeting of shareholders, if any, called for the purpose of considering the election or re-election of such trustee or of a successor to such trustee, and until the election and qualification of his successor, if any, elected at such meeting, or until such trustee sooner dies, resigns, retires or is removed.

⁽²⁾ James D. Oberweis is an interested trustee of the Fund by reason of his position as the former Chairman of Oberweis Asset Management, Inc., the Fund’s investment advisor.

⁽³⁾ Elected annually by board of trustees.

The Statement of Additional Information includes additional information about Fund officers and trustees and is available upon request without charge, by calling the Fund at 1-800-323-6166.

55

Trustees and Officers of The Oberweis Funds

Principal Occupation Last Five Years	Number of Portfolios Overseen by Trustee	Other Directorships
Partner - Childress Duffy Goldblatt, Ltd, April 1, 2007 to present; Partner - Levenfeld Pearlstein, LLC, January 2005 to April 1, 2007; Partner - Hinshaw & Culbertson, 1985 to January 2005.	5	None
Vice President/General Manager of the Flexible Packaging Group - Smurfit Stone Container, March 1988 to 2007.	5	None
Senior Vice President and Chief Financial Officer - Federal Heath Sign Co., May 2003 to present; Vice President - Finance Federal Sign division of Federal Signal Corp. October, 1991 to April, 2003.	5	None
Director - Oberweis Asset Management, Inc. September, 1994 to present. Chairman - September 2001 to present. President - September, 1989 to August, 2001.	5	None
President - Oberweis Asset Management, Inc., September, 2001 to present; Senior Vice President May, 1996 to August, 2001; Portfolio Manager from December, 1995 to present; President and Director - Oberweis Securities, Inc., September, 1996 to present.	Not Applicable	None
Executive Vice President, Secretary and Director - Oberweis Asset Management, Inc., September, 1994 to present; Executive Vice President and Director - Oberweis Securities, Inc. September, 1996 to present.	Not Applicable	None
Senior Vice President - Oberweis Asset Management, Inc., September, 1994 to Present; Senior Vice President - Oberweis Securities, Inc., January, 1997 to present.	Not Applicable	None
Vice President - Oberweis Asset Management, Inc., September, 2003 to present; Research Analyst June, 1997 to August, 2003.	Not Applicable	None
Vice President of Accounting - Oberweis Asset Management and Oberweis Securities, Inc., June, 2004 to present; Portfolio and Staff Accountant - Vestor Capital Corp. April, 2003 to June, 2004; Staff Accountant - Green, Plage & Associates, Inc., November, 1999 to April, 2003	Not Applicable	None

56

THE OBERWEIS FUNDS

Supplemental Information

Proxy Voting:

The Oberweis Funds has delegated authority to vote proxies related to the Funds’ (Emerging Growth Fund, Micro-Cap Fund, Mid-Cap Fund, China Opportunities Fund and Oberweis International Opportunities Fund) Portfolio securities to the Funds’ investment adviser, Oberweis Asset Management, Inc. (“OAM”). A description of the policies and procedures that OAM uses in fulfilling this responsibility is available, without charge upon request, by calling 1-800-323-6166. It also appears on www.oberweisfunds.com and in the Funds’ Statement of Additional Information, which can be found on the Securities and Exchange Commission’s (“SEC”) website at http://www.sec.gov. Information on how the Funds voted proxies relating to portfolio securities during the most recent 12 month period ended June 30 is available (1) without charge, upon request, by calling 1-800-323-6166, and (2) on the SEC’s website at http://www.sec.gov.

Availability of Schedules of Portfolio Investments:

The Funds file their complete schedule of portfolio investments with the SEC for the first and third quarter of each fiscal year (March 31 and September 30) on Form NQ. The Funds’ Forms NQ are available, without charge, on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Approval of Investment Advisory Contracts:

The Investment Advisory Agreement with respect to the Emerging Growth, Micro-Cap, and Mid-Cap Funds and the Investment Advisory and Management Agreement for the China Opportunities Fund was last approved by the Board of Trustees, including all of the trustees who are not parties to such agreements or interested persons of any such party, (the “independent trustees”) on August 23, 2007. The Investment Advisory and Management Agreement for the International Opportunities Fund was initially approved by the Board of Trustees on November 9, 2006 and the initial term of such agreement is two years. Accordingly, the approval of such agreement was not considered during the period covered by this report. The Investment Advisory and Management Agreement for the Asia Opportunities Fund was initially approved by the Board of Trustees, including all of the independent trustees, on November 8, 2007. The Board of Trustees, including a majority of the independent trustees, determined that approval of the agreements was in the best interests of each Fund. The independent trustees were assisted by independent legal counsel in making their determination.

The Board noted that OAM has a long association with The Oberweis Funds, in each case since the inception of each of the Funds. The Board recognizes that a long-term relationship with a capable, conscientious investment adviser is in the best interests of shareholders and that shareholders have invested in the Funds knowing that OAM managed the Funds and knowing the investment advisory fee schedule.

Nature, Quality and Extent of Services. With respect to the nature, quality and extent of the services provided by OAM to the Emerging Growth, Micro-Cap, Mid-Cap and China Opportunities Funds and of the services to be provided by OAM to the Asia Opportunities

57

THE OBERWEIS FUNDS

Supplemental Information

Fund, the Board considered the functions performed by OAM and the personnel providing such services, OAM’s financial condition, the compliance regime created by OAM, including the competency of the Trust’s chief compliance officer and the fact that neither the Trust nor OAM has had any material compliance issues, and OAM’s anticipated financial support of the Asia Opportunities Fund. The Board considered the educational and professional background and qualifications for the portfolio manager for the Asia Opportunities Fund, the OAM trading, research and portfolio management support team and the investment strategy and process for the Asia Opportunities Fund. Based on the information provided, the Board concluded that the nature and extent of services to be provided to the Asia Opportunities Fund was appropriate and that the quality would be good. The Board also considered the honesty and integrity of OAM and the portfolio management team and that OAM personnel act with the highest ethical standards. The Board noted that OAM personnel are very forthright with the Board. Based on information provided, the Board concluded that the nature and extent of services provided to each Fund were appropriate and that the quality was good.

The Board also reviewed and discussed reports prepared by OAM containing information on total returns and average annual total returns over various periods of time of the Emerging Growth, Micro-Cap, Mid-Cap and China Opportunities Funds as compared to relevant market indices and other mutual funds pursuing broadly similar strategies. The Board concluded that (i) as to the Emerging Growth, Micro-Cap, and Mid-Cap Funds, the investment performance was satisfactory, and in some cases, good versus relevant market indices, and was in line with the other mutual funds included in the reports and (ii) as to the China Opportunities Fund, the investment performance, though for a relatively short period of time, was satisfactory versus relevant market indices and good to very good versus other funds included in the report. With respect to the Asia Opportunities Fund, the Board reviewed the performance of the existing funds, in particular the China Opportunities and International Opportunities Funds, and concluded that the performance of existing funds was satisfactory, noting the strong performance of the China Opportunities and International Opportunities Funds since their inception.

Fees and Expenses. For each Fund, the Board compared the amounts paid to OAM for advisory services (for advisory and management services for the China Opportunities and Asia Opportunities Funds) and each Fund’s expense ratio (or expense cap for the China Opportunities and Asia Opportunities Funds) with other mutual funds pursuing broadly similar strategies as included in reports prepared by OAM (and with the China Opportunities and International Opportunities Funds for the Asia Opportunities Fund). This information showed that each of the Emerging Growth, Micro-Cap, Mid Cap, and China Opportunities Fund’s advisory fee was either comparable or in a mid-range compared to other mutual funds, and that the Asia Opportunities Fund’s advisory and management fee is reasonable. The information also showed that the expense ratios of the Emerging Growth, Micro-Cap, Mid-Cap and China Opportunities Funds and the projected expense ratio of the Asia Opportunities Fund were in line with those of similar mutual funds. In addition, the Board considered amounts paid to OAM by other registered funds, for which

58

THE OBERWEIS FUNDS

Supplemental Information

OAM acts as a subadviser. For each Fund (except for the Asia Opportunities Fund because OAM does not manage other regional accounts), the Board considered amounts paid to OAM by OAM’s other clients. With respect to OAM’s other clients, including funds for which it acts as a subadvisor, the Board noted that the mix of services provided and the level of responsibility required under the agreements with the Funds were greater than OAM’s obligations for similar client accounts and that the advisory fees of such accounts are less relevant to the Board’s consideration because they reflect different competitive forces than those in the mutual fund marketplace. The Board also considered that OAM has agreed to bear organizational expenses of the Asia Opportunities Fund and has proposed an expense cap for the Asia Opportunities Fund. Based on the information considered, the Board concluded that each Fund’s advisory fee (advisory and management fee for the China Opportunities and Asia Opportunities Funds, coupled with the expense cap) was reasonable and appropriate in amount given the quality of services provided or expected to be provided.

Profitability. With respect to the costs of services provided and profits realized by OAM, the Board considered the advisory fees received by OAM from each of the Emerging Growth, Micro-Cap, Mid-Cap and China Opportunities Funds and the proposed advisory and management fee rate for the Asia Opportunities Fund. The Board also considered the fact that OAM has agreed to bear the organizational expenses and to cap expenses for the Asia Opportunities Fund. Based on this information, the Board concluded for each Fund that OAM’s profitability was not unreasonable.

Economies of Scale. The Board considered the extent to which economies of scale would be realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of Fund shareholders. The Board reviewed each of the Emerging Growth, Micro-Cap, Mid-Cap and China Opportunities Fund’s asset size and expense ratio. The Board noted OAM’s comments that the Funds may have some capacity constraints which limit economies of scale and that, with respect to the Asia Opportunities Fund, economies of scale are expected during the start-up process. The Board concluded, with respect to each of the Funds, that the total expense ratio, (after giving effect to the expense caps proposed by OAM for the Asia Opportunities Fund) was reasonable.

Other Benefits to OAM and its Affiliates. The Board considered the character and amount of other incidental benefits received by OAM and its affiliates from their relationship with the Funds, including fees received or expected to be received by an affiliate of OAM for distribution services and benefits to OAM related to soft dollars. The Board concluded that, taking into account these benefits, the Emerging Growth, Micro-Cap and Mid-Cap Funds’ advisory fees (advisory and management fees for the China Opportunities and Asia Opportunities Funds) were reasonable.

Based on all of the information considered and the conclusions reached, the Board determined to approve the agreements. The Board of Trustees, including the independent trustees, did not identify any single factor or group of factors as all important or controlling and considered all factors together.

59

THE OBERWEIS FUNDS

Supplemental Information

Expense Examples:

As a shareholder of The Oberweis Funds, you may incur two types of costs: (1) transaction costs, including redemption fees and (2) ongoing costs, including management fees; distribution (and/or service) 12b-1 fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in The Oberweis Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 investment at the beginning of the period and held for the entire period from July 1, 2007 through December 31, 2007.

Actual Expenses:

The first line for each Fund in the table below provides information about actual account values and actual expenses. You may use the information below, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the table under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

60

THE OBERWEIS FUNDS

Supplemental Information

Hypothetical Example for Comparison Purposes:

The second line for each Fund in the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as redemption fees. Therefore, the second line for each Fund in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning Account Value 7/1/07		Ending Account Value 12/31/07		Expense Paid During Period* 7/1/07-12/31/07		Expense Ratio During Period 7/1/07-12/31/07
Emerging Growth Fund
Actual	$	1,000.00	$	1,034.38	$	6.46	1.26	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,018.85	$	6.41	1.26	%
Micro-Cap Fund
Actual	$	1,000.00	$	1,051.27	$	7.76	1.50	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,017.64	$	7.63	1.50	%
Mid-Cap Fund
Actual	$	1,000.00	$	1,075.57	$	9.26	1.77	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.28	$	9.00	1.77	%
China Opportunities Fund
Actual	$	1,000.00	$	1,298.89	$	10.37	1.79	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,016.18	$	9.10	1.79	%
International
Opportunities Fund
Actual	$	1,000.00	$	1,206.68	$	10.68	1.92	%
Hypothetical (5% return before expenses)	$	1,000.00	$	1,015.53	$	9.75	1.92	%

* Expenses are equal to the average account value times the Fund’s annualized expense ratio multiplied by the number of days in the most recent fiscal half-year divided by the number of days in the fiscal year.

	Trustees and Officers
	James D. Oberweis	Katherine Smith Dedrick
	Trustee	Trustee
	Gary D. McDaniel	James G. Schmidt
	Trustee	Trustee
	James W. Oberweis	Patrick B. Joyce
	President	Executive Vice President
		Treasurer
	David I. Covas	Martin L. Yokosawa
	Vice President	Senior Vice President
	Eric V. Hannemann
	Secretary
	Manager and Investment Advisor Oberweis Asset Management, Inc.
	3333 Warrenville Road, Suite 500, Lisle, IL 60532 1-800-323-6166 www.oberweisfunds.com
	Distributor Oberweis Securities, Inc. 3333 Warrenville Road, Suite 500, Lisle, IL 60532 1-630-577-2300 www.oberweisfunds.com
	Custodian UMB Bank, n.a. 928 Grand Blvd., Kansas City, MO 64106
	Transfer Agent UMB Fund Services, Inc. P.O. Box 711 Milwaukee, WI 53201-0711 1-800-245-7311
	Counsel Vedder Price P.C. 222 North LaSalle Street, Chicago, IL 60601 Independent Registered Public Accounting Firm PricewaterhouseCoopers LLP One North Wacker Drive, Chicago, IL 60606
	The Oberweis Funds
	Emerging Growth Fund Micro-Cap Fund Mid-Cap Fund China Opportunities Fund International Opportunities Fund

1-800-245-7311

www.oberweisfunds.com

ITEM 2. CODE OF ETHICS.

(a) As of December 31, 2007, the registrant has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer, or persons performing similar functions.

(b) A copy of the code of ethics may be obtained upon request, without charge, by contacting the registrant in writing at its principal executive office.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT

(a) (1) The registrant’s board of trustees has determined that the registrant has at least one audit committee financial expert serving on the audit committee.

(b) The audit committee financial expert is James G. Schmidt. Mr. Schmidt is independent as defined in Form N-CSR Item 3 (a) (2).

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a)-(d)

	2006	2007
Audit fees	54,000	70,000
Audit-Related Fees	N/A	N/A
Tax Fees	14,000	20,500
All Other Fees	N/A	N/A

Audit Fees include amounts related to the audit of the registrant’s annual financial statements and services normally provided by the principal accountant in connection with statutory and regulatory filings. Tax Fees principally include tax compliance, tax advice, tax planning and preparation of tax returns.

(e)(1) The registrant’s audit committee pre-approves all audit services provided by the registrant’s principal accountant for the registrant and all non-audit services provided by the registrant’s principal accountant for the registrant, its investment adviser and any entity controlling, controlled by, or under common

control with the investment adviser (“Adviser Affiliate”) that provides ongoing services to the registrant, if the engagement by the investment adviser or Adviser Affiliate relates directly to the operations and financial reporting of the registrant.

(e)(2) No services included in (b) – (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable.

(g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant’s principal accountant for non-audit services rendered to the registrant, its investment, and Adviser Affiliate that provides ongoing services to the registrant for 2007 and 2006 were $17,000, and 16,100, respectively.

(h) Non-audit services rendered to the registrant’s investment adviser and any Adviser Affiliate that were not pre-approved pursuant to Paragraph (c) (7) (ii) of Rule 2-01 of Regulation S-X were considered by the registrant’s audit committee as to whether they were compatible with maintaining the principal account’s independence.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not Applicable to the registrant.

ITEM 6. SCHEDULE OF INVESTMENTS.

See Schedule I in Item 1.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not Applicable to the registrant.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

Not Applicable to the registrant.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

Not Applicable to the registrant.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of trustees since registrant last disclosed such procedures in its proxy statement dated April 16, 2004.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There has been no change to the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a) (1)	Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.406. Code of Ethics.
(a) (2)	Certifications pursuant to Rule 30a-2 under the Investment Company Act of 1940 (17CFR 270.30a-2) in the exact form set forth below: EX-99.CERT attached hereto.
(a) (3)	Any written solicitation to purchase securities under Rule 23 c-1 under the Investment Company Act of 1940 (17 CFR 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons. Not Applicable to the registrant.

(b) If the report is filed under Section 13(a) or 15(d) of the Exchange Act, provide the certifications required by Rule 30a-2(b) under the 1940 Act (17 CFR 270.30a-2(b)), Rule 13a-14(b) or Rule 15d-14(b) under the Exchange Act (17 CFR 240.13a-14(b) or 240.15d-14(b)), and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) as an exhibit. A certification furnished pursuant to this paragraph will not be deemed “filed” for purposes of Section 18 of the Exchange Act (15 U.S. C. 78r), or otherwise subject to the liability of that section. Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference. EX-99.906 CERT attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) The Oberweis Funds
By (Signature and Title*)	/s/ James W. Oberweis
	James W. Oberweis
	President, The Oberweis Funds

Date 03/03/2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title*)	/s/ James W. Oberweis
	James W. Oberweis
	President, The Oberweis Funds

Date 03/03/2008

By (Signature and Title*)	/s/ Patrick B. Joyce
	Patrick B. Joyce
	Executive Vice President and Treasurer,
	The Oberweis Funds

Date 03/03/2008

/*/ Print the name and title of each signing officer under his or her signature.