As filed with the Securities and Exchange Commission on [date]

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: 811-21597

PRIMECAP ODYSSEY FUNDS
(Exact name of registrant as specified in charter)

225 SOUTH LAKE AVENUE, SUITE 400
PASADENA, CA 91101
(Address of principal executive offices) (Zip code)

DAVID H. VAN SLOOTEN
225 SOUTH LAKE AVENUE, SUITE 400
PASADENA, CA 91101
(Name and address of agent for service)

(626) 304-9222
Registrant's telephone number, including area code

Date of fiscal year end: OCTOBER 31
----------

Date of reporting period: OCTOBER 31, 2007

ITEM 1. REPORT TO STOCKHOLDERS.

ANNUAL REPORT
OCTOBER 31, 2007

[LOGO] PRIMECAP(R)
----------- ODYSSEY FUNDS

PRIMECAP ODYSSEY STOCK FUND
PRIMECAP ODYSSEY GROWTH FUND
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND

TABLE OF CONTENTS
PRIMECAP ODYSSEY FUNDS
--------------------------------------------------------------------

Letter to Shareholders .................................................... 2

Performance Graphs ........................................................ 9

Expense Example ........................................................... 12

Sector Breakdown .......................................................... 14

Schedule of Investments ................................................... 16

PRIMECAP Odyssey Stock Fund ......................................... 16

PRIMECAP Odyssey Growth Fund ........................................ 20

PRIMECAP Odyssey Aggressive Growth Fund ............................. 24

Statements of Assets and Liabilities ...................................... 28

Statements of Operations .................................................. 29

Statement of Changes in Net Assets ........................................ 30

PRIMECAP Odyssey Stock Fund ......................................... 30

PRIMECAP Odyssey Growth Fund ........................................ 31

PRIMECAP Odyssey Aggressive Growth Fund ............................. 32

Financial Highlights ...................................................... 33

PRIMECAP Odyssey Stock Fund ......................................... 33

PRIMECAP Odyssey Growth Fund ........................................ 34

PRIMECAP Odyssey Aggressive Growth Fund ............................. 35

Notes to Financial Statements ............................................. 36

Report of Independent Registered Public Accounting Firm ................... 41

Additional Information .................................................... 42

Management ................................................................ 46

LETTER TO SHAREHOLDERS
PRIMECAP ODYSSEY FUNDS

DEAR FELLOW SHAREHOLDERS,

For the fiscal year ending October 31, 2007, both the PRIMECAP Odyssey Growth
and Aggressive Growth Funds outperformed the unmanaged Standard & Poor's 500
Composite Stock Price Index (S&P 500), but the PRIMECAP Odyssey Stock Fund
lagged the S&P 500. The PRIMECAP Odyssey Stock, Growth, and Aggressive Growth
Funds produced total returns of 13.88%, 15.46%, and 16.76%, respectively, versus
the S&P 500 total return of 14.56%.

INVESTMENT ENVIRONMENT OF THE FISCAL YEAR

2007 was a volatile year for most indices and mutual funds. Several indices
reached new highs, which were followed by sharp corrections as investors
questioned whether the United States' underlying economic health warranted new
heights in the equity markets. In the latter part of the year, investors became
concerned that weakness in the housing market and Financials sector may have
broader economic consequences.

The U.S. dollar reached milestone lows against the euro, yen, pound, Canadian
dollar, and several emerging market currencies during the past few months. The
rising price of energy, high levels of U.S. consumer indebtedness, and
increasing concerns surrounding the subprime mortgage market began fueling fears
of a broader economic slowdown.

The risks in the Financials sector began unfolding about seven months ago, but
the crisis was seeded during the last several years by lenders eager to approve
loans to unqualified borrowers that were ultimately packaged and sold as
securities to investors who grossly mis-assessed the risk of the underlying
loans. Tightening credit, coupled with the ever increasing demands on disposable
income from high energy and food costs, is likely to result in weaker growth
than many economists forecasted earlier in the year.

Of the 10 sectors that compose the S&P 500, only two experienced negative
returns this year: Consumer Discretionary and Financials, which were down 0.07%
and 2.53%, respectively.

The Energy sector led the market this year, finishing the period up 38.30%. The
sector's main driver has been the continued appreciation of the price of oil.
Now hovering above $90 per barrel, the near doubling in price has literally been
fuel for many energy, oil service, and oil infrastructure companies' stock
prices.

After trailing the S&P 500 in fiscal years 2005 and 2006, technology stocks
posted a 26.89% gain this year, nearly double that of the S&P 500. This is an
area of significant commitment for the Funds.

Health Care, another area of significant emphasis for the Funds, continued to
underperform the S&P 500 with a total return of 10.27% for the period. A
challenging regulatory environment, increasing generic competition, product
recalls, and fear of price controls continued to cast a negative shadow on the
group.

LETTER TO SHAREHOLDERS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

In the past, we have discussed the relative returns and valuations of value
stocks and growth stocks. On average, value investors have shown superior
results relative to growth investors since 2000. For the latest 12-month period,
this trend has reversed and growth has been rewarded, as evidenced by the total
return of the Russell 1000 Value Index of 10.83% versus the total return of the
Russell 1000 Growth Index of 19.23%. While it is too early to declare that
growth has finally reached a turning point, we continue to believe that many
growth stocks, particularly those in the health care and information technology
industries, remain attractively priced.

A more detailed discussion of the results of each PRIMECAP Odyssey Fund follows.

PRIMECAP ODYSSEY STOCK FUND

From November 1, 2006 to October 31, 2007, the Stock Fund's total return of
13.88% lagged the 14.56% return recorded by the S&P 500 by 68 basis points. The
Stock Fund's underperformance was driven primarily by sector allocation.
Individual stock selection helped overall returns, but our selections were not
strong enough to offset poor sector performance, most notably the overweighting
of Health Care.

Health Care holdings represented approximately 24.6% of the overall holdings of
the Stock Fund, significantly greater than the 11.9% weighting for the S&P 500.
Our commitment to this sector is driven by our belief that selected health care
companies should see significant long-term earnings growth that will evolve
materially better than consensus views. Our thesis in this area did not produce
favorable results during the period, and our largest holdings in the Stock Fund
proved to be some of the greatest underperformers.

Amgen, Boston Scientific, and Novartis accounted for approximately 8.4% of the
total holdings of the Stock Fund and were down 23.4%, 12.8%, and 11.0%,
respectively. Overall, our holdings in Health Care were down 1.93%, compared to
the S&P Health Care sector total return of 10.27%. Poor individual security
selection and heavy allocation cost the Stock Fund nearly four percentage points
in total return for the year. While we are disappointed with this year's
contribution from Health Care, we remain committed to the sector and our
pharmaceutical and biotech-nology concerns, in particular. With an aging
population in developed markets and expanding market opportunities in Asia,
Latin America, and Eastern Europe, we remain optimistic that our health care
investments should see attractive returns over time.

On the positive side, the Stock Fund benefited from limited exposure as well as
favorable selections in the Financials, the worst performing sector for the
year. Performance of the Stock Fund's holdings marginally exceeded the S&P
Financials sector, driven by Bank of New York Mellon and Berkshire Hathaway,
which were up 37.0% and 25.6%, respectively. The Stock Fund benefited
significantly from our limited exposure to this sector. Financials make up 21.2%
of the S&P 500 and are the largest individual S&P sector, while our holdings
totaled approximately 7.7% of the portfolio. Our belief has been and continues
to be that credit risk has been mispriced and that leverage created by
derivative based products across the Financials sector poses great concern for
the large banks and brokerage firms.

LETTER TO SHAREHOLDERS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

The table below lists the top 10 holdings, which collectively represent 26.2% of
the total portfolio at the fiscal year end.

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PRIMECAP ODYSSEY STOCK FUND ENDING % OF
TOP 10 HOLDINGS AS OF 10/31/07 TOTAL PORTFOLIO*
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Eli Lilly & Co. 4.40
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Amgen, Inc. 3.73
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Novartis AG - ADR 3.12
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Medtronic, Inc. 2.80
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Biogen Idec, Inc. 2.20
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McDermott International, Inc. 2.09
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Southwest Airlines Co. 2.09
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Roche Holding AG - CHF 1.99
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EOG Resources, Inc. 1.97
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GlaxoSmithKline PLC - ADR 1.81
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TOTAL % OF PORTFOLIO 26.20
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* The percentage is calculated by using the ending market value of the
security divided by the total investments of the Fund.

Our five most heavily weighted investments are in Health Care. Pharmaceuticals
companies continue to trade near 40-year relative P/E lows. We believe that
their strong balance sheets and attractive new product pipelines support our
conviction.

PRIMECAP ODYSSEY GROWTH FUND

From November 1, 2006 to October 31, 2007, the Growth Fund's total return of
15.46% exceeded the 14.56% return recorded by the S&P 500. The Growth Fund's
total return of 15.46% trailed the Russell 1000 Growth Index's total return of
19.23% by 3.77%.

The most heavily weighted sectors in the Growth Fund were Information Technology
(IT) and Health Care. Together, these two sectors constituted approximately
58.6% of the portfolio which is slightly above the 55.3% for the prior year
ending October 31, 2006. In these two sectors, innovation is one of the primary
drivers of long-term growth. We continue to favor companies that invest heavily
in research and development, as we believe such investments result in superior
long-term earnings growth.

The IT holdings accounted for approximately 32.3% of the Growth Fund, exceeding
the S&P 500 IT sector weight of 15.5% by 16.8 percentage points. The largest
contributors to the sector return for the Growth Fund were NAVTEQ, EMC, and
Research In Motion. Advances in IT are difficult to quantify, but as we look
forward, we think that the portability of technology and the

LETTER TO SHAREHOLDERS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

benefits of quickly and accurately managing and searching large amounts of data
will continue to be appreciated by the market. Research In Motion, the maker of
the Blackberry personal digital assistant, is one of the leaders in bringing
enterprise-class communications capability to handheld devices. EMC focuses on
information lifecycle management, and NAVTEQ works to further mapping technology
for a host of individual and business applications.

Our Health Care investments represented approximately 26.3% of the overall
holdings of the Growth Fund, compared to 11.9% for the S&P 500. Our heavy
allocation to Health Care is driven by our belief that selected health care
companies should see significant long-term earnings growth that will evolve
materially better than consensus views. Our thesis in this area did not manifest
itself this period, as our largest holdings in the Growth Fund unfortunately
proved to be some of the biggest underperformers. Amgen, Sepracor, and Novartis
accounted for approximately 6.1% of the total holdings of the Growth Fund and
were down 23.4%, 46.8%, and 11.0%, respectively. Overall, our holdings in Health
Care were up 4.65%, compared to the S&P Health Care sector return of 10.27%. The
poor individual security selection and sector overweight cost the Growth Fund
over two percentage points in total return for the year. While we are
disappointed with this year's contribution from Health Care, we remain committed
to our investments in this sector. With an aging population in developed markets
and increasing market opportunities in Asia, Latin America, and Eastern Europe,
we remain optimistic that our health care investments will see attractive
returns over time.

The table below lists the top 10 holdings, which collectively represent 25.8% of
the total portfolio at the fiscal year end.

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PRIMECAP ODYSSEY GROWTH FUND ENDING % OF
TOP 10 HOLDINGS AS OF 10/31/07 TOTAL PORTFOLIO*
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Eli Lilly & Co. 4.14
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Amgen, Inc. 2.86
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FormFactor, Inc. 2.70
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Medtronic, Inc. 2.58
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Novartis AG - ADR 2.47
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Conceptus, Inc. 2.44
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NAVTEQ Corp. 2.38
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EMC Corp. 2.16
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Roche Holding AG - CHF 2.11
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Avid Technology, Inc. 1.96
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TOTAL % OF PORTFOLIO 25.80
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* The percentage is calculated by using the ending market value of the
security divided by the total investments of the Fund.

LETTER TO SHAREHOLDERS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND

From November 1, 2006 to October 31, 2007, the Aggressive Growth Fund's total
return of 16.76% exceeded the 14.56% return recorded by the S&P 500. The
Aggressive Growth Fund's total return of 16.76% trailed the Russell Midcap
Growth Index's total return of 19.72%.

The most heavily weighted sectors in the Aggressive Growth Fund were Information
Technology (IT) and Health Care. Together, these two sectors constituted
approximately 66.4% of the total portfolio. In these two sectors, innovation is
one of the primary drivers of long-term growth. We have and continue to favor
companies which invest heavily in research and development, as we believe such
investments result in superior long-term earnings growth.

The IT holdings accounted for approximately 42.7% of the Aggressive Growth Fund.
The largest contributors to the sector return for the Aggressive Growth Fund
were NAVTEQ, Research In Motion, and Stratasys. Advances in IT are difficult to
quantify, but as we look forward, we think that the portability of technology
and the benefits of quickly and accurately managing and searching large amounts
of data will continue to be appreciated by the market. Research In Motion, the
maker of the Blackberry personal digital assistant, is one of the leaders in
bringing enterprise-class communications capability to handheld devices. NAVTEQ
works to further mapping technology for a host of individual and business
applications.

Our Health Care holdings represented approximately 23.7% of the overall holdings
of the Aggressive Growth Fund, compared to 11.9% for the S&P 500. The
significant overweight in Health Care is driven by our belief that selected
health care companies will see significant long-term earnings growth that will
evolve materially better than consensus views. As a group, the Health Care
sector holdings in the Aggressive Growth Fund were up 9.67% for the year.
Unfortunately, the slight underperformance relative to the S&P 500 Health Care
sector coupled with a considerable sector overweight hurt overall returns for
the Aggressive Growth Fund. We remain committed to the sector and our
pharmaceutical and biotechnology concerns, in particular. We believe that our
investments should see attractive long-term returns, driven by aging populations
in mature markets, as well as growth in emerging markets.

The table below lists the top 10 holdings, which collectively represent 28.9% of
the total portfolio at the fiscal year end.

LETTER TO SHAREHOLDERS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

-----------------------------------------------------------------------
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND ENDING % OF
TOP 10 HOLDINGS AS OF 10/31/07 TOTAL PORTFOLIO*
-----------------------------------------------------------------------
FormFactor, Inc. 4.18
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Conceptus, Inc. 3.91
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Brocade Communications Sys, Inc. 3.50
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NAVTEQ Corp. 3.43
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Roche Holding AG - CHF 2.58
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Avocent Corp. 2.44
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Avid Technology, Inc. 2.36
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Boston Scientific Corp. 2.20
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ASML Holdings N.V. - ADR 2.18
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Quiksilver, Inc. 2.15
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TOTAL % OF PORTFOLIO 28.93
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* The percentage is calculated by using the ending market value of the
security divided by the total investments of the Fund.

In closing, we would like to thank you for entrusting your hard-earned capital
with us. We will continue to work diligently to prove worthy of that trust.

Sincerely,

PRIMECAP Management Company

- --------------------------------------------------------------------------------
THE STANDARD & POOR'S 500 CORPORATE STOCK PRICE INDEX is a broad based index of
500 stocks, which is widely recognized as representative of the market in
general. THE RUSSELL 1000 GROWTH INDEX is an index that measures the performance
of those Russell 1000 companies with higher price-to-book ratios and higher
forecasted growth values. THE RUSSELL MID CAP GROWTH INDEX measures the
performance of those Russell Mid Cap companies with higher price-to-book ratios
and higher forecasted growth values. THE RUSSELL 1000 VALUE INDEX contains those
securities in the Russell 1000 Index with a less-than-average growth
orientation. These indices do not incur expenses and are not available for
investment.

PRICE-TO-EARNINGS RATIOS (P/ES) are calculated by dividing the current price of
a stock by a company's earnings per share. A BASIS POINT is one hundredth of a
percentage point (0.01%).

LETTER TO SHAREHOLDERS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

THE FUNDS INVEST IN SMALLER COMPANIES, WHICH INVOLVES ADDITIONAL RISKS SUCH AS
LIMITED LIQUIDITY AND GREATER VOLATILITY. ALL FUNDS MAY INVEST IN FOREIGN
SECURITIES WHICH INVOLVES GREATER VOLATILITY AND POLITICAL, ECONOMIC AND
CURRENCY RISKS AND DIFFERENCES IN ACCOUNTING METHODS. MUTUAL FUND INVESTING
INVOLVES RISK, AND LOSS OF PRINCIPAL IS POSSIBLE. GROWTH STOCKS TYPICALLY ARE
MORE VOLATILE THAN VALUE STOCKS; HOWEVER, VALUE STOCKS HAVE A LOWER EXPECTED
GROWTH RATE IN EARNINGS AND SALES.

Please refer to the Schedule of Investments for details of Fund holdings. Fund
holdings and sector allocations are subject to change at any time and are not
recommendations to buy or sell any security.

(12/07)

PERFORMANCE GRAPHS
PRIMECAP ODYSSEY STOCK FUND
-------------------------------------------------------------------------

The following chart compares the value of a hypothetical $10,000 investment in
the PRIMECAP Odyssey Stock Fund from November 1, 2004 (inception) to October 31,
2007 compared to the S&P 500 Index. This chart illustrates the performance of a
hypothetical $10,000 investment made on the Fund's inception date and is not
intended to imply any future performance. The returns shown do not reflect the
deduction of taxes that a shareholder would pay on Fund distributions or the
redemption of Fund shares. The chart assumes reinvestment of capital gains and
dividends.

GRAPH OMITTED
PRIMECAP
ODYSSEY S&P
DATE STOCK FUND 500 INDEX
-------------------------------------------------------
11/1/2004 $10,000 $10,000
11/30/2004 $10,360 $10,402
12/31/2004 $10,920 $10,756
1/31/2005 $10,610 $10,493
2/28/2005 $10,900 $10,714
3/31/2005 $10,740 $10,524
4/30/2005 $10,490 $10,324
5/31/2005 $10,940 $10,652
6/30/2005 $10,990 $10,667
7/31/2005 $11,530 $11,064
8/31/2005 $11,610 $10,963
9/30/2005 $11,630 $11,052
10/31/2005 $11,480 $10,868
11/30/2005 $11,950 $11,278
12/31/2005 $12,126 $11,282
1/31/2006 $12,767 $11,581
2/28/2006 $12,617 $11,612
3/31/2006 $12,907 $11,756
4/30/2006 $13,047 $11,914
5/31/2006 $12,677 $11,570
6/30/2006 $12,607 $11,587
7/31/2006 $12,496 $11,658
8/31/2006 $12,787 $11,936
9/30/2006 $13,007 $12,244
10/31/2006 $13,487 $12,643
11/30/2006 $13,847 $12,883
12/31/2006 $13,825 $13,064
1/31/2007 $14,158 $13,261
2/28/2007 $13,956 $13,001
3/31/2007 $13,926 $13,147
4/30/2007 $14,632 $13,729
5/31/2007 $15,177 $14,208
6/30/2007 $15,046 $13,972
7/31/2007 $14,673 $13,539
8/31/2007 $14,723 $13,742
9/30/2007 $15,238 $14,256
10/31/2007 $15,359 $14,483

TOTAL RETURN
PERIOD ENDED OCTOBER 31, 2007
-------------------------------
ANNUALIZED
SINCE INCEPTION
1 YEAR (11/01/04)
--------- ----------------

PRIMECAP Odyssey Stock Fund 13.88% 15.39%

S&P 500 Index* 14.56% 13.16%

PERFORMANCE DATA QUOTED REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE
FUTURE RESULTS. THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS
THAN THEIR ORIGINAL COST. CURRENT PERFORMANCE OF THE FUND MAY BE LOWER OR HIGHER
THAN THE PERFORMANCE QUOTED. PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH
END MAY BE OBTAINED BY CALLING 1-800-729-2307. THE FUNDS IMPOSE A 2% REDEMPTION
FEE ON SHARES HELD LESS THAN 60 DAYS. PERFORMANCE FIGURES REFLECT THE FEE WAIVER
IN EFFECT AND, IN THE ABSENCE OF FEE WAIVERS, TOTAL RETURNS WOULD BE LOWER.
SHORT-TERM PERFORMANCE, IN PARTICULAR, IS NOT A GOOD INDICATION OF A FUND'S
FUTURE PERFORMANCE, AND AN INVESTMENT SHOULD NOT BE MADE BASED SOLELY ON PAST
RETURNS.

- ------------
* The S&P 500 Index is an unmanaged index composed of 500 common stocks
weighted by market value; its total return includes reinvestment of
dividends and is considered representative of the stock market return
as a whole.

PERFORMANCE GRAPHS
PRIMECAP ODYSSEY GROWTH FUND
- --------------------------------------------------------------------------------

The following chart compares the value of a hypothetical $10,000 investment in
the PRIMECAP Odyssey Growth Fund from November 1, 2004 (inception) to October
31, 2007 compared to the S&P 500 Index. This chart illustrates the performance
of a hypothetical $10,000 investment made on the Fund's inception date and is
not intended to imply any future performance. The returns shown do not reflect
the deduction of taxes that a shareholder would pay on Fund distributions or the
redemption of Fund shares. The chart assumes reinvestment of capital gains and
dividends.

GRAPH OMITTED

PRIMECAP
ODYSSEY S&P
DATE GROWTH FUND 500 INDEX
------------------------------------------------------
11/1/2004 $10,000 $10,000
11/30/2004 $10,410 $10,402
12/31/2004 $10,960 $10,756
1/31/2005 $10,550 $10,493
2/28/2005 $10,810 $10,714
3/31/2005 $10,640 $10,524
4/30/2005 $10,450 $10,324
5/31/2005 $11,060 $10,652
6/30/2005 $11,060 $10,667
7/31/2005 $11,540 $11,064
8/31/2005 $11,560 $10,963
8/31/2005 $11,610 $11,052
10/31/2005 $11,620 $10,868
11/30/2005 $12,110 $11,278
12/31/2005 $12,248 $11,282
1/31/2006 $12,908 $11,581
2/28/2006 $12,858 $11,612
3/31/2006 $13,158 $11,756
4/30/2006 $13,208 $11,914
5/31/2006 $12,708 $11,570
6/30/2006 $12,808 $11,587
7/31/2006 $12,688 $11,658
8/31/2006 $13,068 $11,936
9/30/2006 $13,249 $12,244
10/31/2006 $13,769 $12,643
11/30/2006 $14,169 $12,883
12/31/2006 $14,066 $13,064
1/31/2007 $14,420 $13,261
2/28/2007 $14,208 $13,001
3/31/2007 $14,279 $13,147
4/30/2007 $14,845 $13,729
5/31/2007 $15,230 $14,208
6/30/2007 $15,139 $13,972
7/31/2007 $14,764 $13,539
8/31/2007 $15,048 $13,742
9/30/2007 $15,695 $14,256
10/31/2007 $15,898 $14,483

TOTAL RETURN
PERIOD ENDED OCTOBER 31, 2007
-------------------------------
ANNUALIZED
SINCE INCEPTION
1 YEAR (11/01/04)
--------- ----------------

PRIMECAP Odyssey Growth Fund 15.46% 16.73%

S&P 500 Index* 14.56% 13.16%

- -----------
* The S&P 500 Index is an unmanaged index composed of 500 common stocks
weighted by market value; its total return includes reinvestment of
dividends and is considered representative of the stock market return
as a whole.

PERFORMANCE GRAPHS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------

The following chart compares the value of a hypothetical $10,000 investment in
the PRIMECAP Odyssey Aggressive Growth Fund from November 1, 2004 (inception) to
October 31, 2007 compared to the S&P 500 Index. This chart illustrates the
performance of a hypothetical $10,000 investment made on the Fund's inception
date and is not intended to imply any future performance. The returns shown do
not reflect the deduction of taxes that a shareholder would pay on Fund
distributions or the redemption of Fund shares. The chart assumes reinvestment
of capital gains and dividends.

PRIMECAP
ODYSSEY
AGGRESSIVE S&P
DATE GROWTH FUND 500 INDEX
------------------------------------------------------
11/1/2004 $10,000 $10,000
11/30/2004 $10,510 $10,402
12/31/2004 $11,080 $10,756
1/31/2005 $10,500 $10,493
2/28/2005 $10,690 $10,714
3/31/2005 $10,470 $10,524
4/30/2005 $9,890 $10,324
5/31/2005 $10,600 $10,652
6/30/2005 $10,560 $10,667
7/31/2005 $11,220 $11,064
8/31/2005 $11,170 $10,963
9/30/2005 $11,400 $11,052
10/31/2005 $11,240 $10,868
11/30/2005 $12,000 $11,278
12/31/2005 $11,960 $11,282
1/31/2006 $12,790 $11,581
2/28/2006 $12,700 $11,612
3/31/2006 $13,060 $11,756
4/30/2006 $13,110 $11,914
5/31/2006 $12,500 $11,570
6/30/2006 $12,710 $11,587
7/31/2006 $12,310 $11,658
8/31/2006 $13,000 $11,936
9/30/2006 $13,200 $12,244
10/31/2006 $13,920 $12,643
11/30/2006 $14,610 $12,883
12/31/2006 $14,540 $13,064
1/31/2007 $14,915 $13,261
2/28/2007 $14,753 $13,001
3/31/2007 $14,935 $13,147
4/30/2007 $15,280 $13,729
5/31/2007 $15,564 $14,208
6/30/2007 $15,401 $13,972
7/31/2007 $14,915 $13,539
8/31/2007 $15,351 $13,742
9/30/2007 $15,858 $14,256
10/31/2007 $16,253 $14,483

TOTAL RETURN
PERIOD ENDED OCTOBER 31, 2007
-------------------------------
ANNUALIZED
SINCE INCEPTION
1 YEAR (11/01/04)
--------- ----------------

PRIMECAP Odyssey Aggressive Growth Fund 16.76% 17.59%

S&P 500 Index* 14.56% 13.16%

EXPENSE EXAMPLE
PRIMECAP ODYSSEY FUNDS
-------------------------------------------------------------------------

As a shareholder of one or more of the Funds, you incur ongoing costs, including
management fees and other fund expenses. This Example is intended to help you
understand your ongoing costs (in dollars) of investing in the 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 invested at the beginning of the
period and held for the entire period from April 30, 2007 to October 31, 2007.

ACTUAL EXPENSES

The information in the table under the heading "Actual Performance" provides
actual account values and actual expenses. You may use the information in these
columns, 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 row entitled "Expenses Paid during Period" to
estimate the expenses you paid on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The information in the table adjacent to the heading "Hypothetical Performance
(5% return before expenses)" provides hypothetical account values and
hypothetical expenses based on the Funds' actual expense ratios and an assumed
rate of return of 5% per year before expenses, which are not the Funds' actual
returns. 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 the ongoing costs of investing in the
Funds and other mutual funds. To do so, compare these 5% hypothetical examples
with the 5% hypothetical examples that appear in the shareholder reports of the
other mutual funds.

Please note that the expenses shown in the table are meant to highlight your
ongoing costs only. Therefore, the information adjacent to the heading
"Hypothetical Performance (5% return before expenses)" is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different mutual funds. In addition, if transactional costs were
included, your costs would have been higher.

EXPENSE EXAMPLE - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

BEGINNING ENDING EXPENSES PAID EXPENSE RATIO
ACCOUNT ACCOUNT DURING PERIOD* DURING PERIOD*
VALUE VALUE (04/30/07 TO (04/30/07 TO
(04/30/07) (10/31/07) 10/31/07) 10/31/07)
- ------------------------------------------------------------------------------------------

PRIMECAP ODYSSEY STOCK FUND
Actual Performance $ 1,000.00 $ 1,049.70 $ 4.15 0.80%
Hypothetical Performance
(5% return before $ 1,000.00 $ 1,021.16 $ 4.09 0.80%
expenses)
- ------------------------------------------------------------------------------------------
PRIMECAP ODYSSEY GROWTH FUND
Actual Performance $ 1,000.00 $ 1,070.90 $ 3.85 0.74%
Hypothetical Performance
(5% return before $ 1,000.00 $ 1,021.49 $ 3.76 0.74%
expenses)
- ------------------------------------------------------------------------------------------
PRIMECAP ODYSSEY AGGRESSIVE
GROWTH FUND
Actual Performance $ 1,000.00 $ 1,063.70 $ 4.04 0.78%
Hypothetical Performance
(5% return before $ 1,000.00 $ 1,021.29 $ 3.95 0.78%
expenses)
- ------------------------------------------------------------------------------------------

<FN>
- -------------
* Expenses are equal to the Funds' annualized expense ratio as
indicated, multiplied by the average account value over the period,
multiplied by the number of days in the most recent fiscal half-year
period (184), then divided by the number of days in the fiscal year
(365) to reflect the one-half year period.
</FN>

SECTOR BREAKDOWN
PRIMECAP ODYSSEY FUNDS
-------------------------------------------------------------------------

PRIMECAP ODYSSEY STOCK FUND
-------------------------------------------------------------------------
Consumer Discretionary 15.2%
-------------------------------------------------------------------------
Consumer Staples 0.1%
-------------------------------------------------------------------------
Energy 7.3%
-------------------------------------------------------------------------
Financials 7.0%
-------------------------------------------------------------------------
Health Care 25.4%
-------------------------------------------------------------------------
Industrials 13.9%
-------------------------------------------------------------------------
Information Technology 18.8%
-------------------------------------------------------------------------
Materials 5.2%
-------------------------------------------------------------------------
Telecommunication Services 2.5%
-------------------------------------------------------------------------
Short Term Investments 4.6%
-------------------------------------------------------------------------
TOTAL 100.0%
-------------------------------------------------------------------------

PRIMECAP ODYSSEY GROWTH FUND
-------------------------------------------------------------------------
Consumer Discretionary 10.6%
-------------------------------------------------------------------------
Energy 6.5%
-------------------------------------------------------------------------
Financials 5.0%
-------------------------------------------------------------------------
Health Care 26.3%
-------------------------------------------------------------------------
Industrials 8.7%
-------------------------------------------------------------------------
Information Technology 34.4%
-------------------------------------------------------------------------
Materials 0.7%
-------------------------------------------------------------------------
Telecommunication Services 1.9%
-------------------------------------------------------------------------
Short Term Investments 5.9%
-------------------------------------------------------------------------
TOTAL 100.0%
-------------------------------------------------------------------------

The tables above list sector allocations as a percentage of each Fund's total
investments as of October 31, 2007. The management report makes reference to
average allocations during the period. As a result, the sector allocations above
may differ from those discussed in the management report.

SECTOR BREAKDOWN
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
-------------------------------------------------------------------------
Consumer Discretionary 7.9%
-------------------------------------------------------------------------
Consumer Staples 1.9%
-------------------------------------------------------------------------
Energy 5.4%
-------------------------------------------------------------------------
Financials 2.9%
-------------------------------------------------------------------------
Health Care 25.4%
-------------------------------------------------------------------------
Industrials 6.0%
-------------------------------------------------------------------------
Information Technology 46.5%
-------------------------------------------------------------------------
Materials 0.2%
-------------------------------------------------------------------------
Telecommunication Services 1.2%
-------------------------------------------------------------------------
Short Term Investments 2.6%
-------------------------------------------------------------------------
TOTAL 100.0%
-------------------------------------------------------------------------

The table above lists sector allocations as a percentage of the Fund's total
investments as of October 31, 2007. The management report makes reference to
average allocations during the period. As a result, the sector allocations above
may differ from those discussed in the management report.

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
-------------------------------------------------------------------------
OCTOBER 31, 2007

Shares Value
- --------------------------------------------------------------------------------

COMMON STOCKS: 95.4%

CONSUMER DISCRETIONARY: 15.2%
43,000 Amazon.Com, Inc. (a) ......................... $ 3,833,450
77,500 Bed Bath & Beyond, Inc. (a) .................. 2,630,350
88,200 CarMax, Inc. (a) ............................. 1,840,734
57,400 Chico's FAS, Inc. (a) ........................ 754,236
3,609 Citadel Broadcasting Corp. ................... 15,880
100,000 Collective Brands, Inc. (a) .................. 1,849,000
15,000 Comcast Corp. - Class A (a) .................. 315,750
45,100 DIRECTV Group, Inc. (The) (a) ................ 1,194,248
20,000 Dow Jones & Co., Inc. ........................ 1,196,200
110,000 Dress Barn, Inc. (a) ......................... 1,802,900
30,000 Eastman Kodak Co. ............................ 859,800
42,200 Kohl's Corp. (a) ............................. 2,319,734
50,000 Mattel, Inc. ................................. 1,044,500
7,000 Men's Wearhouse, Inc. ........................ 295,820
3,600 Nordstrom, Inc. .............................. 141,984
74,000 Sony Corp. - ADR ............................. 3,660,040
4,050 Target Corp. ................................. 248,508
105,950 TJX Cos, Inc. ................................ 3,065,133
13,000 Viacom, Inc. (a) ............................. 536,770
53,500 Walt Disney Co. (The) ........................ 1,852,705
44,000 Whirlpool Corp. .............................. 3,483,920
------------
32,941,662
------------
CONSUMER STAPLES: 0.1%
30,700 Cott Corp. (a) ............................... 220,119
------------

ENERGY: 7.3%
27,400 Arch Coal, Inc. .............................. 1,123,400
5,000 ConocoPhillips ............................... 424,800
36,000 EnCana Corp. ................................. 2,509,200
48,000 EOG Resources, Inc. .......................... 4,252,800
8,000 Murphy Oil Corp. ............................. 589,040
26,844 National Oilwell Varco, Inc. (a) ............. 1,966,055
40,000 Peabody Energy Corp. ......................... 2,230,000
6,200 Pogo Producing Co. ........................... 369,272
23,600 Schlumberger Ltd. ............................ 2,279,052
------------
15,743,619
------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
16

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
FINANCIALS: 7.0%
38,300 American International Group, Inc. ........... $ 2,417,496
48,396 Bank of New York Mellon Corp. (The) .......... 2,364,145
620 Berkshire Hathaway, Inc. - Class B (a) ....... 2,736,680
10,000 Chubb Corp. .................................. 533,500
7,400 Citigroup, Inc. .............................. 310,060
72,700 Discover Financial Services .................. 1,403,110
22,000 Fannie Mae ................................... 1,254,880
5,500 Fifth Third Bancorp .......................... 172,040
99,950 Marsh & McLennan Cos, Inc. ................... 2,587,705
4,950 MBIA, Inc. ................................... 213,048
15,000 Progressive Corp. (The) ...................... 277,500
33,400 Washington Mutual, Inc. ...................... 931,192
------------
15,201,356
------------
HEALTH CARE: 25.4%
82,000 Affymetrix, Inc. (a) ......................... 2,087,720
138,700 Amgen, Inc. (a) .............................. 8,059,857
64,000 Biogen Idec, Inc. (a) ........................ 4,764,160
275,656 Boston Scientific Corp. (a) .................. 3,823,349
175,900 Eli Lilly & Co. .............................. 9,524,985
76,500 GlaxoSmithKline PLC - ADR .................... 3,920,625
127,700 Medtronic, Inc. .............................. 6,058,088
127,050 Novartis AG - ADR ............................ 6,755,248
25,300 Roche Holding AG - CHF ....................... 4,315,677
25,000 Sanofi-Aventis - ADR ......................... 1,100,250
67,100 Sepracor, Inc. (a) ........................... 1,847,934
19,900 Waters Corp. (a) ............................. 1,531,902
25,000 Wyeth ........................................ 1,215,750
------------
55,005,545
------------
INDUSTRIALS: 13.9%
10,000 3M Co. ....................................... 863,600
35,000 Alaska Air Group, Inc. (a) ................... 889,000
22,000 Alexander & Baldwin, Inc. .................... 1,152,360
122,000 AMR Corp. (a) ................................ 2,928,000
38,000 Avery Dennison Corp. ......................... 2,200,200
9,000 Boeing Co. ................................... 887,310
2,200 Burlington Northern Santa Fe Corp. ........... 191,730
20,000 Canadian National Railway Co. ................ 1,119,800
15,200 Caterpillar, Inc. ............................ 1,134,072

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
17

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
INDUSTRIALS (CONTINUED)
24,000 Chicago Bridge & Iron Co. N.V. - ADR ......... $ 1,200,000
2,000 Deere & Co. .................................. 309,800
6,000 FedEx Corp. .................................. 620,040
34,000 General Electric Co. ......................... 1,399,440
29,600 JetBlue Airways Corp. (a) .................... 270,248
74,200 McDermott International, Inc. (a) ............ 4,530,652
5,200 Norfolk Southern Corp. ....................... 268,580
24,700 Pall Corp. ................................... 989,729
318,300 Southwest Airlines Co. ....................... 4,523,043
2,300 Thomas & Betts Corp. (a) ..................... 128,823
7,800 Union Pacific Corp. .......................... 998,712
45,900 United Parcel Service, Inc. .................. 3,447,090
------------
30,052,229
------------
INFORMATION TECHNOLOGY: 18.8%
16,250 Accenture Ltd. - Class A ..................... 634,562
7,000 Agilent Technologies, Inc. (a) ............... 257,950
97,900 Applied Materials, Inc. ...................... 1,901,218
58,399 ASML Holding N.V. - ADR ...................... 2,039,293
6,400 Comverse Technology, Inc. (a) ................ 123,008
65,000 Corning, Inc. ................................ 1,577,550
148,900 EMC Corp. (a) ................................ 3,780,571
80,000 Intel Corp. .................................. 2,152,000
105,000 Intuit, Inc. (a) ............................. 3,377,850
70,000 KLA-Tencor Corp. ............................. 3,685,500
61,000 L.M. Ericsson Telephone Co. - ADR ............ 1,833,050
65,000 Microsoft Corp. .............................. 2,392,650
90,000 Motorola, Inc. ............................... 1,691,100
33,200 Nortel Networks Corp. (a) .................... 535,516
27,000 NVIDIA Corp. (a) ............................. 955,260
86,500 Oracle Corp. (a) ............................. 1,917,705
7,200 Paychex, Inc. ................................ 300,816
20,400 Research In Motion Ltd. (a) .................. 2,540,004
186,900 Symantec Corp. (a) ........................... 3,509,982
105,000 Texas Instruments, Inc. ...................... 3,423,000
1,138 Verigy Ltd. (a) .............................. 26,163
19,300 Xilinx, Inc. ................................. 470,920
54,000 Yahoo!, Inc. (a) ............................. 1,679,400
------------
40,805,068
------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
18

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY STOCK FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
MATERIALS: 5.2%
18,500 Alcoa, Inc. .................................. $ 732,415
87,780 Domtar Corp. (a) ............................. 753,152
3,000 Dow Chemical Co. (The) ....................... 135,120
18,000 Freeport-McMoRan Copper & Gold, Inc. ......... 2,118,240
14,300 Monsanto Co. ................................. 1,396,109
18,000 Newmont Mining Corp. ......................... 915,480
21,000 Potash Corp. of Saskatchewan ................. 2,579,220
5,950 Praxair, Inc. ................................ 508,606
18,000 Vulcan Materials Co. ......................... 1,539,180
6,525 Weyerhaeuser Co. ............................. 495,313
------------
11,172,835
------------
TELECOMMUNICATION SERVICES: 2.5%
61,700 NeuStar, Inc. - Class A (a) .................. 2,110,140
188,350 Sprint Corp. ................................. 3,220,785
------------
5,330,925
------------
TOTAL COMMON STOCKS
(Cost $180,867,024) .......................... 206,473,358
------------

Principal
Amount
- --------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS: 4.6%
$9,865,091 Dreyfus Institutional U.S. Treasury Money
Market Fund ................................ $ 9,865,091
(Cost $9,865,091) ------------

TOTAL INVESTMENTS
(Cost $190,732,115): 100.0% ................. 216,338,449
Other Assets in Excess of Liabilities: 0.0% ................... 48,785
------------
TOTAL NET ASSETS: 100.0% ...................................... $216,387,234
============

- ---------------
Percentages are stated as a percent of net assets.
ADR - American Depository Receipt.
CHF - Swiss Security.
(a) Non Income Producing.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
19

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
-------------------------------------------------------------------------
OCTOBER 31, 2007

Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS: 94.1%

CONSUMER DISCRETIONARY: 10.6%
250,000 99 Cents Only Stores (a) ..................... $ 2,687,500
34,000 Amazon.Com, Inc. (a) ......................... 3,031,100
175,600 Bed Bath & Beyond, Inc. (a) .................. 5,959,864
203,300 CarMax, Inc. (a) ............................. 4,242,871
158,300 Chico's FAS, Inc. (a) ........................ 2,080,062
268 Citadel Broadcasting Corp. ................... 1,179
25,100 Comcast Corp. - Class A (a) .................. 528,355
54,800 DIRECTV Group, Inc. (The) (a) ................ 1,451,104
250,000 Dress Barn, Inc. (a) ......................... 4,097,500
167,000 Gentex Corp. ................................. 3,470,260
66,850 Kohl's Corp. (a) ............................. 3,674,744
105,000 Mattel, Inc. ................................. 2,193,450
20,000 Men's Wearhouse, Inc. ........................ 845,200
6,700 Nordstrom, Inc. .............................. 264,248
443,800 Quiksilver, Inc. (a) ......................... 5,991,300
170,000 Sony Corp. - ADR ............................. 8,408,200
7,450 Target Corp. ................................. 457,132
128,250 TJX Cos, Inc. ................................ 3,710,273
30,000 Viacom, Inc. (a) ............................. 1,238,700
3,500 Walt Disney Co. (The) ........................ 121,205
900 Yum! Brands, Inc. ............................ 36,243
------------
54,490,490
------------

ENERGY: 6.5%
142,000 Arch Coal, Inc. .............................. 5,822,000
1,196 Chevron Corp. ................................ 109,446
40,000 EnCana Corp. ................................. 2,788,000
86,000 EOG Resources, Inc. .......................... 7,619,600
10,000 Murphy Oil Corp. ............................. 736,300
60,000 National Oilwell Varco, Inc. (a) ............. 4,394,400
4,000 Noble Corp. .................................. 211,800
72,000 Oceaneering International, Inc. (a) .......... 5,563,440
5,600 Pogo Producing Co. ........................... 333,536
4,000 Pride International, Inc. (a) ................ 147,600
55,600 Schlumberger Ltd. ............................ 5,369,292
------------
33,095,414
------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
20

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
FINANCIALS: 5.0%
69,350 American International Group, Inc. ........... $ 4,377,372
104,245 Bank of New York Mellon Corp. (The) .......... 5,092,368
1,100 Berkshire Hathaway, Inc. - Class B (a) ....... 4,855,400
20,000 Chubb Corp. .................................. 1,067,000
6,000 Fifth Third Bancorp .......................... 187,680
170,000 Hanmi Financial Corp. ........................ 1,873,400
175,250 Marsh & McLennan Cos, Inc. ................... 4,537,223
10,700 MBIA, Inc. ................................... 460,528
100,000 Progressive Corp. (The) ...................... 1,850,000
4,600 State Street Corp. ........................... 366,942
34,300 Washington Mutual, Inc. ...................... 956,284
------------
25,624,197
------------
HEALTH CARE: 26.3%
255,500 Affymetrix, Inc. (a) ......................... 6,505,030
14,000 Alcon, Inc. .................................. 2,130,940
251,900 Amgen, Inc. (a) .............................. 14,637,909
91,000 Biogen Idec, Inc. (a) ........................ 6,774,040
435,300 Boston Scientific Corp. (a) .................. 6,037,611
570,000 Conceptus, Inc. (a) .......................... 12,500,100
392,000 Eli Lilly & Co. .............................. 21,226,800
112,000 GlaxoSmithKline PLC - ADR .................... 5,740,000
50,000 Kinetic Concepts, Inc. (a) ................... 3,005,000
278,700 Medtronic, Inc. .............................. 13,221,528
115,700 Micrus Endovascular Corp. (a) ................ 2,273,505
238,150 Novartis AG - ADR ............................ 12,662,435
390,000 Possis Medical, Inc. (a) ..................... 5,580,900
63,300 Roche Holding AG - CHF ....................... 10,797,721
130,700 Sepracor, Inc. (a) ........................... 3,599,478
77,000 SurModics, Inc. (a) .......................... 4,368,980
44,000 Waters Corp. (a) ............................. 3,387,120
------------
134,449,097
------------
INDUSTRIALS: 8.7%
20,000 3M Co. ....................................... 1,727,200
293,500 AMR Corp. (a) ................................ 7,044,000
43,300 Avery Dennison Corp. ......................... 2,507,070
13,700 Caterpillar, Inc. ............................ 1,022,157
20,000 FedEx Corp. .................................. 2,066,800
15,000 Fluor Corp. .................................. 2,370,000
146,250 JetBlue Airways Corp. (a) .................... 1,335,263

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
21

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
INDUSTRIALS (CONTINUED)
10,400 Kirby Corp. (a) .............................. $ 475,072
132,000 McDermott International, Inc. (a) ............ 8,059,920
68,400 Pall Corp. ................................... 2,740,788
616,700 Southwest Airlines Co. ....................... 8,763,307
86,700 United Parcel Service, Inc. .................. 6,511,170
------------
44,622,747
------------
INFORMATION TECHNOLOGY: 34.4%
31,550 Accenture Ltd. - Class A ..................... 1,232,028
20,000 Adobe Systems, Inc. (a) ...................... 958,000
120,000 Akamai Technologies, Inc. (a) ................ 4,702,800
228,000 Altera Corp. ................................. 4,473,360
105,300 Applied Materials, Inc. ...................... 2,044,926
219,333 ASML Holding N.V. - ADR ...................... 7,659,108
2,800 Autodesk, Inc. (a) ........................... 136,920
341,900 Avid Technology, Inc. (a) .................... 10,048,441
162,900 Avocent Corp. (a) ............................ 4,403,187
400,000 Brocade Communications Sys, Inc. (a) ......... 3,804,000
100,000 Comverse Technology, Inc. (a) ................ 1,922,000
151,900 Corning, Inc. ................................ 3,686,613
87,000 Cymer, Inc. (a) .............................. 3,697,500
436,700 EMC Corp. (a) ................................ 11,087,813
353,900 FormFactor, Inc. (a) ......................... 13,841,029
9,500 Google, Inc. - Class A (a) ................... 6,716,500
110,000 Intel Corp. .................................. 2,959,000
60,000 Intersil Corp. - Class A ..................... 1,820,400
246,000 Intuit, Inc. (a) ............................. 7,913,820
85,000 KLA-Tencor Corp. ............................. 4,475,250
85,000 L.M. Ericsson Telephone Co. - ADR ............ 2,554,250
49,000 McAfee, Inc. (a) ............................. 2,026,150
127,200 Micron Technology, Inc. (a) .................. 1,336,872
118,600 Microsoft Corp. .............................. 4,365,666
90,000 Motorola, Inc. ............................... 1,691,100
157,900 NAVTEQ Corp. (a) ............................. 12,189,880
49,670 Nortel Networks Corp (a) ..................... 801,177
150,000 Nuance Communications, Inc. (a) .............. 3,316,500
90,000 NVIDIA Corp. (a) ............................. 3,184,200
189,600 Oracle Corp. (a) ............................. 4,203,432
14,000 Paychex, Inc. ................................ 584,920
50,600 QUALCOMM, Inc. ............................... 2,162,138

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
22

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY GROWTH FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY (CONTINUED)
200,000 Rambus, Inc. (a) ............................. $ 3,958,000
38,250 Research In Motion Ltd.(a) ................... 4,762,507
8,400 Silicon Laboratories, Inc. (a) ............... 367,080
128,000 Stratasys, Inc. (a) .......................... 3,331,840
291,700 Symantec Corp. (a) ........................... 5,478,126
213,500 Texas Instruments, Inc. ...................... 6,960,100
24,000 Trimble Navigation Ltd.(a) ................... 1,000,800
1,138 Verigy Ltd. (a) .............................. 26,163
110,000 VeriSign, Inc. (a) ........................... 3,749,900
170,000 Xilinx, Inc. ................................. 4,148,000
199,100 Yahoo!, Inc. (a) ............................. 6,192,010
------------
175,973,506
------------
MATERIALS: 0.7%
18,800 Monsanto Co. ................................. 1,835,444
23,800 Praxair, Inc. ................................ 2,034,424
------------
3,869,868
------------
TELECOMMUNICATION SERVICES: 1.9%
121,800 NeuStar, Inc. - Class A (a) .................. 4,165,560
323,750 Sprint Corp. ................................. 5,536,125
------------
9,701,685
------------
TOTAL COMMON STOCKS
(Cost $417,764,077) .......................... 481,827,004
------------

Principal
Amount
SHORT-TERM INVESTMENTS: 6.0%
$30,831,784 Dreyfus Institutional U.S. Treasury
Money Market Fund ......................... $ 30,831,784
(Cost $30,831,784) ------------
TOTAL INVESTMENTS
(Cost $448,595,861): 100.1% ............... 512,658,788
Liabilities in Excess of Other Assets: (0.1)% ................. (642,495)
------------
TOTAL NET ASSETS: 100.0% ...................................... $512,016,293
============

- ---------------
Percentages are stated as a percent of net assets.
ADR - American Depository Receipt.
CHF - Swiss Security.
(a) Non Income Producing.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
23

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
-------------------------------------------------------------------------
OCTOBER 31, 2007

Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS: 97.4%

CONSUMER DISCRETIONARY: 7.9%
17,800 99 Cents Only Stores (a) ....................... $ 191,350
174,300 AC Moore Arts & Crafts, Inc. (a) ............... 2,914,296
63,000 Amazon.Com, Inc. (a) ........................... 5,616,450
6,000 Blue Nile, Inc. (a) ............................ 474,240
9,750 California Pizza Kitchen, Inc. (a) ............. 157,755
193,400 CarMax, Inc. (a) ............................... 4,036,258
207,800 Chico's FAS, Inc. (a) .......................... 2,730,492
74,400 DIRECTV Group, Inc. (The) (a) .................. 1,970,112
160,000 Gentex Corp. ................................... 3,324,800
599,000 Quiksilver, Inc. (a) ........................... 8,086,500
------------
29,502,253
------------
CONSUMER STAPLES: 1.9%
756,300 American Italian Pasta Co. - Class A (a) ....... 6,799,137
66,100 Cott Corp. (a) ................................. 473,937
10,000 Red Point Bio Corp. (a) ........................ 6,200
------------
7,279,274
------------
ENERGY: 5.4%
93,600 Arch Coal, Inc. ................................ 3,837,600
44,000 EOG Resources, Inc. ............................ 3,898,400
9,425 Exterran Hldgs, Inc. (a) ....................... 793,585
40,000 National Oilwell Varco, Inc. (a) ............... 2,929,600
60,000 Oceaneering International, Inc. (a) ............ 4,636,200
5,350 Pogo Producing Co. ............................. 318,646
38,200 Pride International, Inc. (a) .................. 1,409,580
20,000 Transocean, Inc. (a) ........................... 2,387,400
------------
20,211,011
------------
FINANCIAL: 2.9%
122,000 Advance America Cash Advance Centers, Inc. ..... 1,166,320
136,600 Hanmi Financial Corp. .......................... 1,505,332
486,520 MarketAxess Holdings, Inc. (a) ................. 7,623,769
12,650 MBIA, Inc. ..................................... 544,456
------------
10,839,877
------------
HEALTH CARE: 25.4%
378,200 Abiomed, Inc. (a) .............................. 5,169,994
230,000 Affymetrix, Inc. (a) ........................... 5,855,800
8,000 Alcon, Inc. .................................... 1,217,680

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
24

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
HEALTH CARE (CONTINUED)
40,000 Biogen Idec, Inc. (a) .......................... $ 2,977,600
20,000 BioMarin Pharmaceuticals, Inc. (a) ............. 554,600
596,700 Boston Scientific Corp. (a) .................... 8,276,229
610,000 Cardica, Inc. (a) .............................. 6,899,100
670,650 Conceptus, Inc. (a) ............................ 14,707,355
199,000 Dendreon Corp. (a) ............................. 1,486,530
850,000 Dyax Corp. (a) ................................. 3,663,500
21,600 Greatbatch, Inc. (a) ........................... 536,976
60,000 Kinetic Concepts, Inc. (a) ..................... 3,606,000
452,700 Medarex, Inc. (a) .............................. 5,409,765
260,000 Micrus Endovascular Corp. (a) .................. 5,109,000
1,063,900 Pharmacyclics, Inc. (a) ........................ 2,298,024
277,400 Possis Medical, Inc. (a) ....................... 3,969,594
56,800 Roche Holding AG - CHF ......................... 9,688,950
292,000 Senomyx, Inc. (a) .............................. 3,375,520
187,350 Sepracor, Inc. (a) ............................. 5,159,619
96,000 SurModics, Inc. (a) ............................ 5,447,040
------------
95,408,876
------------
INDUSTRIALS: 6.0%
103,000 Alaska Air Group, Inc. (a) ..................... 2,616,200
261,500 AMR Corp. (a) .................................. 6,276,000
4,500 Avery Dennison Corp. ........................... 260,550
4,000 Granite Construction, Inc. ..................... 171,280
116,325 JetBlue Airways Corp. (a) ...................... 1,062,047
50,000 Monster Worldwide, Inc. (a) .................... 2,029,000
56,400 Pall Corp. ..................................... 2,259,948
286,300 Southwest Airlines Co. ......................... 4,068,323
110,000 US Airways Group, Inc. (a) ..................... 3,042,600
60,000 Vitran Corp, Inc. (a) .......................... 838,800
------------
22,624,748
------------
INFORMATION TECHNOLOGY: 46.5%
26,900 Adobe Systems, Inc. (a) ........................ 1,288,510
131,000 Akamai Technologies, Inc. (a) .................. 5,133,890
412,000 Altera Corp. ................................... 8,083,440
234,977 ASML Holding N.V. - ADR ........................ 8,205,397
301,400 Avid Technology, Inc. (a) ...................... 8,858,146
339,200 Avocent Corp. (a) .............................. 9,168,576
1,383,400 Brocade Communications Sys, Inc. (a) ........... 13,156,134

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
25

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
INFORMATION TECHNOLOGY (CONTINUED)
28,050 Comverse Technology, Inc. (a) .................. 539,121
100,100 Cree, Inc. (a) ................................. 2,802,800
174,600 Cymer, Inc. (a) ................................ 7,420,500
90,000 eBay, Inc. (a) ................................. 3,249,000
77,500 Emulex Corp. (a) ............................... 1,678,650
8,500 eSpeed, Inc. - Class A (a) ..................... 86,360
64,000 Faro Technologies, Inc. (a) .................... 1,840,640
401,800 FormFactor, Inc. (a) ........................... 15,714,398
7,600 Google, Inc. (a) ............................... 5,373,200
150,000 Guidance Software, Inc. (a) .................... 2,208,000
62,400 Intermec, Inc. (a) ............................. 1,586,208
60,000 Internap Network Svcs Corp. (a) ................ 999,600
192,200 Intuit, Inc. (a) ............................... 6,183,074
138,900 KLA-Tencor Corp. ............................... 7,313,085
70,000 McAfee, Inc. (a) ............................... 2,894,500
156,500 Micron Technology, Inc. (a) .................... 1,644,815
166,700 NAVTEQ Corp. (a) ............................... 12,869,240
65,850 Nortel Networks Corp (a) ....................... 1,062,160
155,000 Nuance Communications, Inc. (a) ................ 3,427,050
89,550 NVIDIA Corp. (a) ............................... 3,168,279
40,750 RADVISION Ltd. (a) ............................. 532,195
230,000 Rambus, Inc. (a) ............................... 4,551,700
51,300 Research In Motion Ltd. (a) .................... 6,387,363
6,000 Silicon Laboratories, Inc. (a) ................. 262,200
277,000 SonicWALL, Inc. (a) ............................ 2,864,180
214,000 Stratasys, Inc. (a) ............................ 5,570,420
400,000 Sycamore Networks, Inc. (a) .................... 1,708,000
170,800 Symantec Corp. (a) ............................. 3,207,624
20,900 THQ, Inc. (a) .................................. 566,181
32,000 Trimble Navigation Ltd. (a) .................... 1,334,400
514 Verigy Ltd. (a) ................................ 11,817
112,000 VeriSign, Inc. (a .............................. 3,818,080
250,200 Yahoo!, Inc. (a) ............................... 7,781,220
------------
174,550,153
------------
MATERIALS: 0.2%
4,000 Minerals Technologies, Inc. .................... 280,880
4,800 Monsanto Co. ................................... 468,624
------------
749,504
------------

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
26

SCHEDULE OF INVESTMENTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
- --------------------------------------------------------------------------------
OCTOBER 31, 2007 -- (CONTINUED)

Shares Value
- --------------------------------------------------------------------------------
TELECOMMUNICATION SERVICES: 1.2%
130,500 NeuStar, Inc. - Class A (a) .................... $ 4,463,100
------------
TOTAL COMMON STOCKS
(Cost $318,839,367) ............................ 365,628,796
------------

Principal
Amount
SHORT-TERM INVESTMENTS: 2.7%
$10,114,257 Dreyfus Institutional U.S. Treasury
Money Market Fund $ 10,114,257
(Cost $10,114,257) ------------
TOTAL INVESTMENTS
(Cost $328,953,624): 100.1% 375,743,053
Liabilities in Excess of Other Assets: (0.1)% (509,524)
------------
TOTAL NET ASSETS: 100.0% $375,233,529
============

Percentages are stated as a percent of net assets.
ADR - American Depository Receipt.
CHF - Swiss Security.
(a) Non Income Producing.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
27

STATEMENTS OF ASSETS AND LIABILITIES
PRIMECAP ODYSSEY FUNDS
----------------------------------------------------------------------------------------
OCTOBER 31, 2007
PRIMECAP PRIMECAP PRIMECAP
ODYSSEY ODYSSEY ODYSSEY AGGRESSIVE
STOCK FUND GROWTH FUND GROWTH FUND
------------ ------------ ------------
ASSETS

Investments, at cost ............... $190,732,115 $448,595,861 $328,953,624
============ ============ ============

Investments, at value .............. $216,338,449 $512,658,788 $375,743,053
Receivables:
Securities sold .................. 282,607 -- --
Dividends and interest ........... 229,634 374,463 71,536
Fund shares sold ................. 218,513 910,386 748,251
Prepaid expenses and other assets .. 16,099 26,757 12,511
------------ ------------ ------------
Total assets ..................... 217,085,301 513,970,394 376,575,351
------------ ------------ ------------

LIABILITIES
Payable for securities purchased ... 262,586 1,140,429 102,159
Payable for fund shares redeemed ... 67,179 50,917 158,485
Due to advisor (Note 5) ............ 290,841 643,448 508,805
Payable to the custodian ........... -- -- 471,787
Other accrued expenses & liabilities 77,462 119,306 100,586
------------ ------------ ------------
Total liabilities ................ 698,067 1,954,101 1,341,822
------------ ------------ ------------

NET ASSETS ........................... $216,387,234 $512,016,293 $375,233,529
============ ============ ============

Number of shares issued and
outstanding (unlimited shares
authorized, $0.01 par value) ....... 14,221,625 32,598,060 23,401,238
============ ============ ============

NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE ......... $ 15.22 $ 15.71 $ 16.03
============ ============ ============

COMPONENTS OF NET ASSETS
Paid-in capital .................... $188,242,723 $445,693,455 $326,395,162
Undistributed net investment
income ........................... 846,919 940,339 --
Accumulated net realized gain
on investments ................... 1,691,258 1,319,572 2,048,938
Accumulated net unrealized
appreciation on investments ...... 25,606,334 64,062,927 46,789,429
------------ ------------ ------------
Net assets ....................... $216,387,234 $512,016,293 $375,233,529

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
28

STATEMENTS OF OPERATIONS
PRIMECAP ODYSSEY FUNDS
------------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2007

PRIMECAP PRIMECAP PRIMECAP
ODYSSEY ODYSSEY ODYSSEY AGGRESSIVE
STOCK FUND GROWTH FUND GROWTH FUND
------------ ------------ -----------------
INVESTMENT INCOME

Income
Dividends (net of foreign taxes
withheld of $27,992, $60,312,
and $17,817, respectively) ... $ 1,449,558 $ 2,347,574 $ 377,098
Interest income ................ 729,667 1,293,522 1,050,919
------------ ------------ ------------
Total income ................. 2,179,225 3,641,096 1,428,017
------------ ------------ ------------

Expenses
Advisory fees .................. 901,206 1,960,516 1,527,247
Fund administration and
accounting costs ............. 123,073 278,855 211,165
Professional fees .............. 48,265 68,483 60,608
Shareholder servicing
fees and expenses ............ 71,873 106,406 132,774
Registration fees .............. 31,896 32,043 35,100
Custody fees ................... 26,951 45,867 39,256
Trustee fees and expenses ...... 13,546 13,910 13,852
Printing and mailing ........... 13,602 21,082 41,140
Other expenses ................. 30,098 66,028 33,573
------------ ------------ ------------
Total expenses ............... 1,260,511 2,593,189 2,094,715
------------ ------------ ------------

NET INVESTMENT INCOME (LOSS) . 918,714 1,047,907 (666,698)
------------ ------------ ------------

CHANGE IN REALIZED AND
UNREALIZED GAIN
ON INVESTMENTS
Net realized gain on investments 1,731,207 1,319,799 2,761,913
Net unrealized appreciation
on investments ............... 16,329,193 47,397,293 35,345,050
------------ ------------ ------------
Net realized and unrealized gain
on investments ............... 18,060,400 48,717,092 38,106,963
------------ ------------ ------------

NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .. $ 18,979,114 $ 49,764,999 $ 37,440,265
============ ============ ============

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
29

STATEMENT OF CHANGES IN NET ASSETS
PRIMECAP ODYSSEY STOCK FUND
-------------------------------------------------------------------------------

YEAR ENDED YEAR ENDED
OCTOBER 31, 2007 OCTOBER 31, 2006
---------------- ----------------

INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS

Net investment income .......................... $ 918,714 $ 223,921
Net realized gain on investments ............... 1,731,207 542,921
Net unrealized appreciation on investments ..... 16,329,193 7,586,374
------------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ............................ 18,979,114 8,353,216
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS
Net investment income .......................... (283,401) (12,410)
Realized gain on investments ................... (549,042) (5,043)
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS .......... (832,443) (17,453)
------------- -------------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold ...................... 122,435,134 53,541,677
Proceeds from reinvestment of distribution ..... 794,364 15,443
Cost of shares redeemed ........................ (13,355,576) (3,649,793)
Redemption fee proceeds ........................ 12,526 1,068
------------- -------------
NET INCREASE FROM CAPITAL SHARE
TRANSACTIONS ............................... 109,886,448 49,908,395
------------- -------------

TOTAL INCREASE IN NET ASSETS ................. 128,033,119 58,244,158

NET ASSETS
Beginning of period ............................ 88,354,115 30,109,957
------------- -------------
End of period (including undistributed
net investment income of $846,919 and
$211,614, respectively) ...................... $ 216,387,234 $ 88,354,115
============= =============

CHANGE IN CAPITAL SHARES
Shares Outstanding, beginning of year .......... 6,553,093 2,623,943
------------- -------------
Shares sold .................................. 8,521,970 4,216,481
Shares issued on reinvestment of distributions 57,688 1,280
Shares repurchased ........................... (911,126) (288,611)
------------- -------------
Net increase in capital shares ............. 7,668,532 3,929,150
------------- -------------
Shares Outstanding, end of year ................ 14,221,625 6,553,093
============= =============

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
30

STATEMENT OF CHANGES IN NET ASSETS
PRIMECAP ODYSSEY GROWTH FUND
-------------------------------------------------------------------------------

YEAR ENDED YEAR ENDED
OCTOBER 31, 2007 OCTOBER 31, 2006
---------------- ----------------

INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS

Net investment income ........................ $ 1,047,907 $ 224,813
Net realized gain on investments ............. 1,319,799 2,386,453
Net unrealized appreciation on investments ... 47,397,293 15,060,244
------------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... 49,764,999 17,671,510
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS
Net investment income ........................ (330,728) (1,837)
Realized gain on investments ................. (2,361,145) (38,375)
------------- -------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS ........ (2,691,873) (40,212)
------------- -------------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................... 306,329,318 147,754,093
Proceeds from reinvestment of distribution ... 2,668,390 39,926
Cost of shares redeemed ...................... (46,321,761) (9,787,774)
Redemption fee proceeds ...................... 44,097 6,067
Other capital contributions .................. 13,908 --
------------- -------------
NET INCREASE FROM CAPITAL SHARE
TRANSACTIONS ............................. 262,733,952 138,012,312
------------- -------------

TOTAL INCREASE IN NET ASSETS ............... 309,807,078 155,643,610

NET ASSETS
Beginning of period .......................... 202,209,215 46,565,605
------------- -------------
End of period (including undistributed
net investment income of $940,339 and
$223,160, respectively) .................... $ 512,016,293 $ 202,209,215
============= =============

CHANGE IN CAPITAL SHARES
Shares Outstanding, beginning of year ........ 14,690,643 4,007,475
------------- -------------
Shares sold .................................. 20,886,040 11,461,405
Shares issued on reinvestment of distributions 191,009 3,259
Shares repurchased ........................... (3,169,632) (781,496)
------------- -------------
Net increase in capital shares ............. 17,907,417 10,683,168
------------- -------------
Shares Outstanding, end of year .............. 32,598,060 14,690,643
============= =============

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
31

STATEMENT OF CHANGES IN NET ASSETS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
--------------------------------------------------------------------------------

YEAR ENDED YEAR ENDED
OCTOBER 31, 2007 OCTOBER 31, 2006
---------------- ----------------

INCREASE (DECREASE) IN NET ASSETS FROM:
OPERATIONS

Net investment income ........................ $ (666,698) $ (191,176)
Net realized gain on investments ............. 2,761,913 2,471,127
Net unrealized appreciation on investments ... 35,345,050 9,718,713
------------- -------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... 37,440,265 11,998,664
------------- -------------

DISTRIBUTIONS TO SHAREHOLDERS
Realized gain on investments ................. (2,133,775) --
------------- -------------

CAPITAL SHARE TRANSACTIONS
Proceeds from shares sold .................... 276,071,965 89,190,276
Proceeds from reinvestment of distribution ... 2,101,368 --
Cost of shares redeemed ...................... (58,191,283) (4,130,146)
Redemption fee proceeds ...................... 53,191 8,580
------------- -------------
NET INCREASE FROM CAPITAL SHARE
TRANSACTIONS ............................. 220,035,241 85,068,710
------------- -------------

TOTAL INCREASE IN NET ASSETS ............... 255,341,731 97,067,374

NET ASSETS
Beginning of period .......................... 119,891,798 22,824,424
------------- -------------
End of period ................................ $ 375,233,529 $ 119,891,798
============= =============

CHANGE IN CAPITAL SHARES
Shares Outstanding, beginning of year ........ 8,614,450 2,031,482
------------- -------------
Shares sold .................................. 18,456,545 6,910,316
Shares issued on reinvestment of distributions 145,928 --
Shares repurchased ........................... (3,815,685) (327,348)
------------- -------------
Net increase in capital shares ............. 14,786,788 6,582,968
------------- -------------
Shares Outstanding, end of year .............. 23,401,238 8,614,450
============= =============

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
32

FINANCIAL HIGHLIGHTS
PRIMECAP ODYSSEY STOCK FUND
--------------------------------------------------------------------------
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD

THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES THERETO APPEARING ELSEWHERE IN THIS ANNUAL REPORT.

YEAR YEAR PERIOD
ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2007 2006 2005(2)
----------- ----------- ----------

Net asset value, beginning of period .... $ 13.48 $ 11.48 $ 10.00
---------- --------- ---------

INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) .......... 0.07 0.03 (0.01)
Net realized and unrealized gain
on investments ...................... 1.79 1.97 1.49
---------- --------- ---------
Total from investment operations ........ 1.86 2.00 1.48
---------- --------- ---------

LESS DISTRIBUTIONS:
Dividends from net investment income .. (0.04) 0.00(1) 0.00
Distributions from realized gain ...... (0.08) 0.00(1) 0.00
---------- --------- ---------
Total distributions ..................... (0.12) 0.00 0.00
---------- --------- ---------

Redemption fee proceeds ................. 0.00(1) 0.00(1) 0.00(1)
---------- --------- ---------

Net asset value, end of period .......... $ 15.22 $ 13.48 $ 11.48
========== ========= =========

Total return ............................ 13.88% 17.48% 14.80%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(millions) .......................... $ 216.4 $ 88.4 $ 30.1

RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses
absorbed or recouped ................ 0.81% 0.99% 1.80%
After fees waived and expenses
absorbed or recouped ................ 0.81% 0.99% 1.25%

RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS .......... 0.59% 0.41% (0.11%)

Portfolio turnover rate ................. 5.87% 4.09% 12.46%

<FN>
- -----------
(1) Amount represents less than $0.01 per share.
(2) Commenced operations on November 1, 2004.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
33
</FN>

FINANCIAL HIGHLIGHTS
PRIMECAP ODYSSEY GROWTH FUND
----------------------------------------------------------------------------
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD

THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES THERETO APPEARING ELSEWHERE IN THIS ANNUAL REPORT.

YEAR YEAR PERIOD
ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2007 2006 2005(2)
------------ ------------ -----------

Net asset value, beginning of period ... $ 13.76 $ 11.62 $ 10.00
---------- ---------- ---------

INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ......... 0.04 0.01 (0.01)
Net realized and unrealized gain
on investments ..................... 2.07 2.14 1.63
---------- ---------- ---------
Total from investment operations ....... 2.11 2.15 1.62
---------- ---------- ---------

LESS DISTRIBUTIONS:
Dividends from net investment income . (0.02) 0.00(1) 0.00
Distributions from realized gain ..... (0.14) (0.01) 0.00
---------- ---------- ---------
Total distributions .................... (0.16) (0.01) 0.00
---------- ---------- ---------

Redemption fee proceeds ................ 0.00(1) 0.00(1) 0.00(1)
---------- ---------- ---------

Net asset value, end of period ......... $ 15.71 $ 13.76 $ 11.62
========== ========== =========

Total return ........................... 15.46% 18.49% 16.20%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) . $ 512.0 $ 202.2 $ 46.6

RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses
absorbed or recouped ............... 0.75% 0.89% 1.79%

After fees waived and expenses
absorbed or recouped ............... 0.75% 0.89% 1.25%

RATIO OF NET INVESTMENT INCOME
(LOSS) TO AVERAGE NET ASSETS ......... 0.30% 0.19% (0.27%)

Portfolio turnover rate ................ 4.83% 6.87% 8.84%

<FN>
- ---------
(1) Amount represents less than $0.01 per share.
(2) Commenced operations on November 1, 2004.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
34
</FN>

FINANCIAL HIGHLIGHTS
PRIMECAP ODYSSEY AGGRESSIVE GROWTH FUND
-----------------------------------------------------------------------------
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD

THE FOLLOWING INFORMATION SHOULD BE READ IN CONJUNCTION WITH THE FINANCIAL
STATEMENTS AND NOTES THERETO APPEARING ELSEWHERE IN THIS ANNUAL REPORT.

YEAR YEAR PERIOD
ENDED ENDED ENDED
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2007 2006 2005(2)
------------ ------------ -----------

Net asset value, beginning of period ... $ 13.92 $ 11.24 $ 10.00
---------- ---------- ---------

INCOME FROM INVESTMENT OPERATIONS:
Net investment loss .................. (0.03) (0.02) (0.06)
Net realized and unrealized gain
on investments ..................... 2.34 2.70 1.30
---------- ---------- ---------
Total from investment operations ....... 2.31 2.68 1.24
---------- ---------- ---------

LESS DISTRIBUTIONS:
Distributions from realized gain ..... (0.20) 0.00 0.00
---------- ---------- ---------
Total distributions .................... (0.20) 0.00 0.00
---------- ---------- ---------

Redemption fee proceeds ................ 0.00(1) 0.00(1) 0.00(1)
---------- ---------- ---------

Net asset value, end of period ......... $ 16.03 $ 13.92 $ 11.24
========== ========== =========

Total return ........................... 16.76% 23.84% 12.40%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (millions) . $ 375.2 $ 119.9 $ 22.8

RATIO OF EXPENSES TO AVERAGE NET ASSETS:
Before fees waived and expenses
absorbed or recouped ............... 0.78% 0.99% 1.82%
After fees waived and expenses
absorbed or recouped ............... 0.78% 0.99% 1.25%

RATIO OF NET INVESTMENT LOSS TO
AVERAGE NET ASSETS ................... (0.25%) (0.33%) (0.82%)

Portfolio turnover rate ................ 6.02% 12.30% 7.38%

<FN>
- --------------
(1) Amount represents less than $0.01 per share.
(2) Commenced operations on November 1, 2004.

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
35
</FN>

NOTES TO FINANCIAL STATEMENTS
PRIMECAP ODYSSEY FUNDS
-------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2007

(1) ORGANIZATION

PRIMECAP Odyssey Funds (the "Trust") was organized on June 8, 2004 as a Delaware
statutory trust and is registered as an open-end management investment company
under the Investment Company Act of 1940, as amended (the "1940 Act"). The Trust
is comprised of three series: PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey
Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund (the "Funds"), each of
which is diversified within the meaning of the 1940 Act. PRIMECAP Management
Company (the "Investment Advisor") serves as investment advisor to the Funds.
The Funds commenced operations on November 1, 2004.

Each Fund's investment objective is to provide long-term capital appreciation.
Each Fund is authorized to issue unlimited shares of beneficial interest. All
shares within each Fund have equal rights with respect to voting.

(2) SIGNIFICANT ACCOUNTING POLICIES

The Funds consistently follow the accounting policies set forth below which are
in conformity with accounting principles generally accepted in the United States
of America.

A. SECURITY VALUATION.
Securities traded on a national securities exchange are valued at the
last reported sales price at the close of regular trading on each day
the exchanges are open for trading. Securities listed on the NASDAQ
Global Market, the NASDAQ Global Select Market, and the NASDAQ Capital
Market are valued using the NASDAQ Official Closing Price, which may
not necessarily represent the last sale price. Quotations of foreign
securities in a foreign currency are valued daily in U.S. dollars on
the basis of the foreign currency exchange rates prevailing at the
time such valuation is determined. Foreign currency exchange rates
generally are determined prior to the close of the New York Stock
Exchange (the "NYSE"). Securities traded on an exchange for which
there have been no sales are valued at the mean between the bid and
asked price. Securities for which quotations are not readily available
are stated at their respective fair values as determined in good faith
by a valuation committee of the Investment Advisor in accordance with
procedures approved by the Board of Trustees. In determining fair
value, the Funds take into account all relevant factors and available
information. Consequently, the price of the security used by the Fund
to calculate its NAV may differ from quoted or published prices for
the same security. Fair value pricing involves subjective judgments
and there is no single standard for determining a security's fair
value. As a result, different mutual funds could reasonably arrive at
a different fair value for the same security. It is possible that the
fair value determined for a security is materially different from the
value that could be realized upon the sale of that security or from
the values that other mutual funds may determine.

Investments in other funds are valued at their respective net asset
values as determined by those funds, in accordance with the 1940 Act.

NOTES TO FINANCIAL STATEMENTS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2007 - (CONTINUED)

Foreign securities are recorded in the financial statements after
translation to U.S. dollars based on the applicable exchange rate at
the end of the period. The Funds do not isolate that portion of the
results of operations arising as a result of changes in the currency
exchange rate from the fluctuations arising as a result of changes in
the market prices of investments during the period.

B. SHARES VALUATION.
The net asset value ("NAV") per share of a Fund is calculated by
dividing the sum of the value of the securities held by the Fund, plus
cash or other assets, minus all liabilities (including estimated
accrued expenses) by the total number of shares outstanding of the
Fund. The result is rounded to the nearest cent. The Funds' shares
will not be priced on the days on which the NYSE is closed for
trading.

C. FOREIGN CURRENCY.
Values of investments denominated in foreign currencies are converted
into U.S. dollars using the spot market rate of exchange at the time
of valuation. Purchases and sales of investments and dividend and
interest income are translated into U.S. dollars using the spot market
rate of exchange prevailing on the respective dates of such
translations. The gain or loss resulting from changes in foreign
exchange rates is included with net realized and unrealized gain or
loss from investments, as appropriate. Foreign securities and currency
transactions may involve certain considerations and risks not
typically associated with those of domestic origin.

D. FEDERAL INCOME TAXES.
Each Fund has elected to be treated as a "regulated investment
company" under Subchapter M of the Internal Revenue Code. The Funds
intend to distribute substantially all of their taxable income and any
capital gains in excess of applicable capital loss carryforwards.
Accordingly, no provision for Federal income taxes has been made in
the accompanying financial statements. The Funds may be subject to
foreign taxes on income, gains on investments, or currency
repatriation, a portion of which may be recoverable. The Funds will
accrue such taxes and recoveries as applicable based upon their
current interpretations of the tax rules and regulations that exist in
the markets in which they invest.

E. ALLOCATION OF EXPENSES.
Each Fund is charged for those expenses directly attributable to it.
Expenses that are not directly attributable to a Fund are allocated
among the Funds in proportion to their respective assets or another
appropriate method.

F. SECURITY TRANSACTIONS, INVESTMENT INCOME, AND DISTRIBUTIONS.
Security transactions are accounted for on the trade date. Dividend
income and distributions to shareholders are recorded on the
ex-dividend date, and interest income is recognized on the accrual
basis. Realized gains and losses are evaluated on the basis of
identified costs. Premiums and discounts on the purchase of securities
are amortized/accreted

NOTES TO FINANCIAL STATEMENTS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2007 - (CONTINUED)

using the effective interest method. Accounting principles generally
accepted in the United States of America require that permanent
financial reporting and tax differences be reclassified in the capital
accounts.

G. USE OF ESTIMATES.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements, and the
reported amounts of revenues and expenses during the reporting period.
Actual results could differ from these estimates.

H. INDEMNIFICATION OBLIGATIONS.
Under the Funds' organizational documents, its current and former
officers and trustees are indemnified against certain liabilities
arising out of the performance of their duties to the Funds. In
addition, in the normal course of business, the Funds enter into
contracts that contain a variety of representations and warranties
that provide general indemnifications. The Funds' maximum exposure
under these arrangements is unknown as this would involve future
claims that may be made against the Funds that have not yet occurred.
Based on experience, the Funds would expect the risk of loss to be
remote.

(3) INVESTMENT TRANSACTIONS

The cost of purchases and the proceeds from sales of securities, excluding
short-term investments, for the year ended October 31, 2007 were as follows:

FUND PURCHASES SALES
- ---- --------- -----
PRIMECAP Odyssey Stock Fund .............. $115,609,056 $ 8,228,157
PRIMECAP Odyssey Growth Fund ............. $261,685,778 $ 15,568,164
PRIMECAP Odyssey Aggressive
Growth Fund ............................ $237,125,472 $ 14,835,328

(4) DISTRIBUTION TO SHAREHOLDERS

Net investment income and net realized gains differ for financial statement and
tax purposes due to differing treatments of deferred wash sale losses. As of
October 31, 2007, the components of distributable earnings/(accumulated losses)
on a tax basis were as follows:

NOTES TO FINANCIAL STATEMENTS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2007 - (CONTINUED)

As of October 31, 2007, the components of capital on a tax basis were as
follows:

PRIMECAP
PRIMECAP PRIMECAP ODYSSEY
ODYSSEY ODYSSEY AGGRESSIVE
STOCK FUND GROWTH FUND GROWTH FUND
------------- ------------- -------------
Cost of investments
for tax purposes(a) ....... $ 190,772,012 $ 448,595,861 $ 328,999,171
============= ============= =============
Gross tax unrealized
appreciation .............. 35,801,293 86,353,535 71,116,324
Gross tax unrealized
depreciation .............. (10,234,856) (22,290,608) (24,372,442)
------------- ------------- -------------
Net tax unrealized
appreciation .............. $ 25,566,437 $ 64,062,927 $ 46,743,882
============= ============= =============
Currently distributable
ordinary income ........... $ 1,360,644 $ 1,772,164 $ 1,834,245
Currently distributable
long-term capital gain .... 1,217,430 487,747 260,240
------------- ------------- -------------
Currently total
distributable earnings .... $ 2,578,074 $ 2,259,911 $ 2,094,485
------------- ------------- -------------
Total accumulated earnings .. $ 28,144,511 $ 66,322,838 $ 48,838,367
============= ============= =============

- --------------
(a) At October 31, 2007, the basis of investments for federal income tax
purposes differs from the cost for financial reporting purposes due to
the tax deferral of losses on wash sales.

Tax components of dividends paid during the fiscal years ended October 31, 2007
and October 31, 2006 were as follows:

OCTOBER 31, 2007
------------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAIN
DISTRIBUTIONS DISTRIBUTIONS
------------- -------------
PRIMECAP Odyssey Stock Fund ................ $ 406,744 $ 425,699
PRIMECAP Odyssey Growth Fund ............... $1,637,946 $1,053,927
PRIMECAP Odyssey Aggressive
Growth Fund .............................. $1,122,121 $1,011,654

OCTOBER 31, 2006
----------------------------
ORDINARY LONG-TERM
INCOME CAPITAL GAIN
DISTRIBUTIONS DISTRIBUTIONS
------------- -------------
PRIMECAP Odyssey Stock Fund ................... $17,453 $ --
PRIMECAP Odyssey Growth Fund .................. $40,212 $ --
PRIMECAP Odyssey Aggressive
Growth Fund ................................. $ -- $ --

The funds designated as long-term capital gain dividend, pursuant to Internal
Revenue Code Section 852(b)(3), the amount necessary to reduce the earnings and
profits of the Funds related to net capital gain to zero for the tax year ended
October 31, 2007.

NOTES TO FINANCIAL STATEMENTS
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED OCTOBER 31, 2007 - (CONTINUED)

(5) INVESTMENT ADVISORY AND OTHER AGREEMENTS

The Trust has entered into an investment management agreement with the
Investment Advisor on behalf of each Fund. Under the terms of the agreement,
each of the Funds will pay a fee equal to the following annual percentages of
average net assets:

ASSETS IN
FOR THE FIRST EXCESS OF
$100,000,000 $100,000,000
PER FUND PER FUND
-------- --------
PRIMECAP Odyssey
Stock Fund ................................... 0.60% 0.55%
PRIMECAP Odyssey
Growth Fund .................................. 0.60% 0.55%
PRIMECAP Odyssey
Aggressive Growth Fund ....................... 0.60% 0.55%

Mellon Bank, N.A. serves as the Funds' Custodian. U.S. Bancorp Fund Services,
LLC ("USBFS") serves as the Administrator, Fund Accountant, and Transfer Agent
to the Funds. Quasar Distributors, LLC, an affiliate of USBFS, serves as the
Funds' Distributor.

(6) ACCOUNTING PRONOUNCEMENTS

In September 2006, the Financial Accounting Standards Board ("FASB") released
Financial Accounting Standard Board Statement No. 157 Fair Value Measurements
("SFAS 157"). SFAS 157 establishes a fair valuation hierarchy to increase
consistency and comparability in fair value measurements and related
disclosures. The fair value hierarchy prioritizes the inputs to valuation
techniques used to measure fair value into three broad levels. The fair value
hierarchy gives the highest priority to quoted prices (unadjusted) in active
markets for identical assets or liabilities (Level 1) and the lowest priority to
unobservable inputs (Level 3). SFAS 157 is effective for financial statements
issued for fiscal years beginning after November 15, 2007. At this time,
management is evaluating the implications of SFAS 157 and its impact on the
financial statements has not yet been determined.

On July 13, 2006, the Financial Accounting Standards Board ("FASB") released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN
48"). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented, and disclosed in the financial statements. FIN
48 requires the evaluation of tax positions taken or expected to be taken in the
course of preparing the Fund's tax returns to determine whether the tax
positions are "more-likely-than-not" of being sustained by the applicable tax
authority. Tax positions not deemed to meet the more-likely-than-not threshold
would be recorded as a tax benefit or expense in the current year. Adoption of
FIN 48 is required for fiscal years beginning after December 15, 2006 and is to
be applied to all open tax years as of the effective date. At this time,
management is evaluating the implications of FIN 48 and its impact in the
financial statements has not yet been determined.

REPORT OF INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
-------------------------------------------------------------------------

To the Board of Trustees and Shareholders
of PRIMECAP Odyssey Funds:

In our opinion, the accompanying statements of assets and liabilities, including
the schedules 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 PRIMECAP Odyssey Stock Fund,
PRIMECAP Odyssey Growth Fund, and PRIMECAP Odyssey Aggressive Growth Fund (the
"Funds") at October 31, 2007, the results of each of their operations for the
year then ended, the changes in each of their net assets for each of the two
years in the period then ended and the financial highlights for each of the
periods presented, 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 of 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 October 31, 2007 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.

PRICEWATERHOUSECOOPERS
San Francisco, California
December 21, 2007

ADDITIONAL INFORMATION - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
-------------------------------------------------------------------------

ADDITIONAL TAX INFORMATION

The PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund, and PRIMECAP
Odyssey Aggressive Growth Fund designate 100%, 51% and 9%, respectively, of
ordinary income and short term capital gain distributions paid during the fiscal
year ended October 31, 2007 as qualified dividend income.

The PRIMECAP Odyssey Stock Fund and PRIMECAP Odyssey Growth Fund designate 97%
and 41%, respectively, of ordinary income and short term capital gain
distributions paid during the fiscal year ended October 31, 2007 as dividends
qualifying for the dividends received deduction available for corporate
shareholders.

TAX NOTICE (UNAUDITED)

ADDITIONAL INFORMATION FOR FOREIGN SHAREHOLDERS ONLY:

The PRIMECAP Odyssey Stock Fund and PRIMECAP Odyssey Growth Fund designate 62%
and 36%, respectively, of ordinary distributions paid during the fiscal year
ended October 31, 2007 as interest related dividends under the Internal Revenue
Code Section 871 (k)(1)(c).

The PRIMECAP Odyssey Stock Fund, PRIMECAP Odyssey Growth Fund and PRIMECAP
Odyssey Aggressive Growth Fund designate 30%, 80%, and 100%, respectively, of
ordinary distributions paid during the fiscal year ended October 31, 2007 as
short-term capital gain distributions.

PROXY VOTING PROCEDURES

The Investment Advisor votes proxies relating to portfolio securities in
accordance with procedures that have been approved by the Trust's Board of
Trustees. You may obtain a description of these procedures, free of charge, by
calling toll-free 1-800-729-2307. This information is also available through the
Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.

PROXY VOTING RECORD

Information regarding how the Funds voted proxies relating to the portfolio
securities during the most recent 12-month period ended June 30 is available
without charge, upon request, by calling toll-free 1-800-729-2307. This
information is also available through the SEC's website at http://www.sec.gov.

FORM N-Q DISCLOSURE

The Trust files its complete schedules of portfolio holdings with the SEC for
the first and third quarters of each fiscal year on Form N-Q. The Trust's Form
N-Q is available on the SEC's website at http://www.sec.gov. The Trust's Form
N-Q may be reviewed and copied at the Commission's Public Reference Room in
Washington, DC, and information on the operation of the Public Reference Room
may be obtained by calling 1-800-SEC-0330. This information is also available,
without charge, by calling toll-free 1-800-729-2307.

ADDITIONAL INFORMATION - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

BOARD APPROVAL OF THE RENEWAL OF THE INVESTMENT ADVISORY AGREEMENT

The Board of Trustees of PRIMECAP Odyssey Funds (the "Trust") is comprised of
four Trustees, three of whom are independent of the Investment Advisor. During
the six months ended October 31, 2007, the Board of Trustees unanimously
approved a one-year renewal of the Trust's investment advisory agreement (the
"Investment Advisory Agreement") with PRIMECAP Management Company (the
"Investment Advisor"). At the time of the approval, the Board of Trustees was
comprised of three Trustees, two of whom were independent of the Investment
Advisor.

GENERAL INFORMATION

The following information summarizes the Board's considerations associated with
its review of the Investment Advisory Agreement. In connection with their
deliberations, the Board considered such information and factors as they
believed, in light of the legal advice furnished to them and their own business
judgment, to be relevant. The Investment Advisory Agreement was considered
separately for each Fund, although the Board took into account the common
interests of all the Funds in its review. As described below, the Board
considered the nature, quality and extent of the various services provided to
the Funds by the Investment Advisor as well as the levels of the Funds' advisory
fees and other expenses. In considering these matters, the Board discussed the
renewal of the Investment Advisory Agreement with management and the independent
Trustees met in private sessions with counsel at which no representatives of the
Investment Advisor were present.

The Board reviewed extensive materials regarding the investment results of the
Funds, advisory fee and expense comparisons, financial and profitability
information with respect to the Investment Advisor, descriptions of various
functions such as compliance monitoring and portfolio trading practices, and
information about the personnel of the Investment Advisor providing services to
the Funds. They also took into account information they received at past Board
meetings with respect to these matters.

In deciding to approve the renewal of the Investment Advisory Agreement, the
Board and the independent Trustees did not identify a single factor as
controlling and this summary does not describe all of the matters considered.
However, the Board and the independent Trustees concluded that each of the
various factors referred to below favored such approval.

NATURE, EXTENT AND QUALITY OF SERVICES

In reviewing the services provided by the Investment Advisor, the Board
discussed the services provided by the Investment Advisor to the Funds under the
Investment Management Agreement, including the background, education and
experience of its key portfolio management and operational personnel; its
overall financial strength and stability; its resources and efforts to retain,
attract and motivate capable personnel to serve the Funds; and the overall
general quality and depth of its organization. The Board also took into account
the experience, capability and integrity of the Investment Advisor's senior
management; its investment philosophy and processes, including its brokerage,
trading and soft dollar practices; its disaster recovery and contingency
planning; and its commitment and systems in place with regard to compliance with
applicable laws and regulations.

ADDITIONAL INFORMATION - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

INVESTMENT PERFORMANCE

The Board assessed the performance of each Fund compared with its respective
benchmark and the average of a peer group of funds (each, a "peer group")
selected using data from Lipper, Inc. ("Lipper") for the year-to-date and
one-year periods ended July 31, 2007. The Board also considered the performance
of each Fund compared to its respective benchmark from inception through July
31, 2007. The Board made the following observations in reviewing the Funds'
performance:

o The one-year total return of the PRIMECAP Odyssey Stock Fund was
slightly below the median return of the funds in the Lipper Multi-Cap
Core fund peer group and slightly above the S&P 500 Index. The
independent Trustees noted that the Fund had significantly
outperformed its benchmark in the period from the Fund's inception
through July 31, 2007.

o The one-year total return of the PRIMECAP Odyssey Growth Fund was
approximately equal to the median return of the funds in the Lipper
Multi-Cap Core fund peer group and the S&P 500 Index. The return from
the Fund's inception through July 31, 2007 was better than that of the
Fund's benchmark indices.

o The one-year total return of the PRIMECAP Odyssey Aggressive Growth
Fund was well above that of the median return of the funds in the
Lipper Multi-Cap Growth fund peer group and above the S&P 500 Index.
The return from the Fund's inception through July 31, 2007 was also
better than that of the S&P 500 Index, and approximately equal to that
of the Russell MidCap Growth Index.

The Board and the independent Trustees concluded that the Investment Advisor
continued to provide high quality management and oversight services to the
Funds.

ADVISORY FEES AND FUND EXPENSES

The Board reviewed information regarding the advisory fees charged by the
Investment Advisor and total expenses of each of the Funds compared to those of
the funds included in the relevant Lipper peer groups, and observed that those
fees were at or below the average of their respective peer groups. The Board
also reviewed the fees charged by the Investment Advisor to other clients,
including other funds to which it served as sub-advisor, and noted that although
such fees were lower than those charged to the Funds, it provided additional
services to the Funds that it did not provide to other clients.

The Trustees reviewed information regarding the Funds' total expense levels
compared to those in their respective Lipper peer groups and determined that the
Funds' expenses were reasonable and below the medians of the funds in the peer
groups. They considered information relating to the Adviser's costs and profits,
and noted that given the Funds' current asset levels it was unlikely that the
Funds provide substantial profits to the Adviser or could lead to significant
economies of scale. The Board concluded that the advisory fees and expenses of
the Funds continued to be reasonable.

ADDITIONAL INFORMATION - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

CONCLUSIONS

Based on their review, including their consideration of each of the factors
referred to above, the Board and the independent Trustees concluded that the
compensation payable to the Investment Advisor pursuant to the Investment
Advisory Agreement is fair and reasonable in light of the nature and quality of
the services being provided by the Investment Advisor to the respective Funds
and their shareholders, and that renewal of the Investment Advisory Agreement
was in the best interest of the Funds and their shareholders.

MANAGEMENT - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
-------------------------------------------------------------------------

PORTFOLIO MANAGERS

PRIMECAP Management Company has five portfolio managers who together have more
than 160 years of investment experience. Each of these five individuals manages
a portion of the PRIMECAP Odyssey Stock Fund and the PRIMECAP Odyssey Growth
Fund. The PRIMECAP Odyssey Aggressive Growth Fund is primarily managed by
Messrs. Schow, Kolokotrones, Fried, and Mordecai. A small portion of each Fund's
assets may be managed by individuals in the Advisor's research department. The
portfolio managers primarily responsible for overseeing the Funds' investments
are:
----------------------------------------------------------
NAME YEARS OF EXPERIENCE
----------------------------------------------------------
Howard B. Schow 51
----------------------------------------------------------
Mitchell J. Milias 43
----------------------------------------------------------
Theo A. Kolokotrones 37
----------------------------------------------------------
Joel P. Fried 22
----------------------------------------------------------
Alfred W. Mordecai 10
----------------------------------------------------------

OFFICERS AND TRUSTEES

The Trust's officers, who administer the Funds' daily operations, are appointed
by the Board of Trustees. The Trustees are responsible for the overall
management of the Trust, including establishing the Funds' policies and general
supervision and review of their investment activities. The Statement of
Additional Information includes additional information about the Trust's
Trustees and is available, without charge, by calling 1-800-729-2307 or at the
Fund's web site at www.odysseyfunds.com.

EXECUTIVE OFFICERS. The table below sets forth certain information about each of
the Trust's executive officers.

- -----------------------------------------------------------------------------------------------
POSITION(S) TERM OF OFFICE;
NAME, ADDRESS HELD LENGTH OF PRINCIPAL OCCUPATION(S)
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS
- -----------------------------------------------------------------------------------------------

Howard B. Schow Co-Chief Indefinite; Chairman and Director, Portfolio Manager,
225 South Lake Ave., Executive Since 09/04 Chief Investment Officer, and Principal
Suite 400, Pasadena, Officer PRIMECAP Management Company
CA 91101-3005
(1927)
- -----------------------------------------------------------------------------------------------
Theo A. Kolokotrones Co-Chief Indefinite; President, Director, Portfolio
225 South Lake Ave., Executive Since 09/04 Manager, and Principal
Suite 400, Pasadena, Officer PRIMECAP Management Company
CA 91101-3005
(1946)
- -----------------------------------------------------------------------------------------------

MANAGEMENT - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

- ---------------------------------------------------------------------------------------------------
POSITION(S) TERM OF OFFICE;
NAME, ADDRESS HELD LENGTH OF PRINCIPAL OCCUPATION(S)
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS
- ---------------------------------------------------------------------------------------------------

Joel P. Fried Co-Chief Indefinite; Executive Vice President, Director,
225 South Lake Ave., Executive Since 09/04 Portfolio Manager, and Principal
Suite 400, Pasadena, Officer and PRIMECAP Management Company
CA 91101-3005 Trustee
(1962)
- ---------------------------------------------------------------------------------------------------
David H. Van Slooten Chief Financial Indefinite; Senior Vice President, Portfolio Manager,
225 South Lake Ave., Officer and Since 06/04 Financial Analyst, and Principal
Suite 400, Pasadena, Secretary PRIMECAP Management Company
CA 91101-3005
(1963)
- ---------------------------------------------------------------------------------------------------
Baltej S. Kochar Vice President Indefinite; Vice President, Financial Analyst, and
225 South Lake Ave., and Chief Since 10/04 Principal, PRIMECAP Management
Suite 400, Pasadena, Administrative Company (1/04 - Present); Chief Executive
CA 91101-3005 Officer Officer, The Share Group, Inc. (9/01 - 1/03)
(1970)
- ---------------------------------------------------------------------------------------------------
Karen Chen Vice President ofIndefinite; Chief Compliance Officer, Director of
225 South Lake Ave., Compliance and Since 10/04 Compliance and Reporting, PRIMECAP
Suite 400, Pasadena, Chief Compliance Management Company (10/04 - Present);
CA 91101-3005 Officer and Team Lead - Legal and Compliance, Pacific
(1973) AML Officer Investment Management Company (7/02 -
9/04 and 11/97 - 7/99)
- ---------------------------------------------------------------------------------------------------

MANAGEMENT - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

"INDEPENDENT" TRUSTEES. The table below sets forth certain information about
each of the Trustees of the Trust who is not an "interested person" of the Trust
as defined in the 1940 Act ("Independent Trustees").

- -------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
TERM OF FUND OTHER
POSITION(S) OFFICE; PRINCIPAL COMPLEX DIRECTOR-
NAME, ADDRESS HELD LENGTH OF OCCUPATION(S) OVERSEEN BY SHIPS HELD
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS TRUSTEE(1) BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------

Benjamin F. Hammon Chairman of Indefinite; Retired; Director, 3 None
225 South Lake Ave., the Board Since 09/04 Institutional Equity Sales,
Suite 400, Pasadena, CA and Trustee Salomon Smith Barney Inc.
91101-3005 (1963-1998)
(1935)
- -------------------------------------------------------------------------------------------------------------------
Wayne H. Smith Chairman of Indefinite; Retired; President, Wayne 3 None
225 South Lake Ave., the Audit Since 09/04 H. Smith Consulting, Inc.
Suite 400, Pasadena, Committee (2002-2007); Vice President,
CA 91101-3005 and Trustee Financial Services, Avery
(1941) Dennison Corporation (2001-2002);
Vice President, Financial Services,
and Treasurer, Avery Dennison
Corporation (1999-2001)
- -------------------------------------------------------------------------------------------------------------------
Joseph G. Uzelac Trustee Indefinite; Retired; Managing Director Lehman 3 None
225 South Lake Ave., Since 10/07 Brothers Global Investment Bank
Suite 400, Pasadena, (1988-2007)
CA 91101-3005
(1944)
- -------------------------------------------------------------------------------------------------------------------

(1) Fund Complex includes any funds, series of funds, or trusts that share
the same advisor or that hold themselves out to investors as related
companies.

MANAGEMENT - (UNAUDITED)
PRIMECAP ODYSSEY FUNDS
- --------------------------------------------------------------------------------

"INTERESTED" TRUSTEES. The table below sets forth certain information about each
of the Trustees of the Trust who is an "interested person" of the Trust as
defined by the 1940 Act.

- -------------------------------------------------------------------------------------------------------------------
NUMBER OF
PORTFOLIOS IN
TERM OF FUND OTHER
POSITION(S) OFFICE; PRINCIPAL COMPLEX DIRECTOR-
NAME, ADDRESS HELD LENGTH OF OCCUPATION(S) OVERSEEN BY SHIPS HELD
(YEAR OF BIRTH) WITH TRUST TIME SERVED DURING PAST 5 YEARS TRUSTEE(2) BY TRUSTEE
- -------------------------------------------------------------------------------------------------------------------

Joel P. Fried(1) Co-Chief Indefinite; Executive Vice President, 3 None
225 South Lake Ave., Executive Since 09/04 Director, Portfolio
Suite 400, Pasadena, Officer and Manager, and Principal
CA 91101-3005 Trustee PRIMECAP Management Company
(1962)

(1) Mr. Fried is an "interested person" of the Trust, as defined by the
1940 Act, because of his employ- ment with PRIMECAP Management
Company, the investment advisor to the Trust.
(2) Fund Complex includes any funds, series of funds, or trusts that share
the same advisor or that hold themselves out to investors as related
companies.

This page intentionally left blank.

Investment Advisor
PRIMECAP MANAGEMENT COMPANY
225 South Lake Avenue, Suite 400
Pasadena, California 91101

Distributor
QUASAR DISTRIBUTORS, LLC
615 East Michigan Street, 4th Floor
Milwaukee, Wisconsin 53202

Custodian
MELLON BANK, N.A.
One Mellon Center
Pittsburgh, Pennsylvania 15258

Transfer Agent
U.S. BANCORP FUND SERVICES, LLC
615 East Michigan Street, 3rd Floor
Milwaukee, Wisconsin 53202

Administrator
U.S. BANCORP FUND SERVICES, LLC
2020 East Financial Way, Suite 100
Glendora, California 91741

Legal Counsel
PAUL, HASTINGS, JANOFSKY & WALKER LLP
515 South Flower Street
Los Angeles, California 90071

Independent Registered Public Accounting Firm
PRICEWATERHOUSECOOPERS LLP
Three Embarcadero Centre
San Francisco, California 94111

THIS REPORT IS INTENDED FOR THE SHAREHOLDERS OF THE PRIMECAP ODYSSEY FUNDS AND
MAY NOT BE USED AS SALES LITERATURE UNLESS PRECEDED OR ACCOMPANIED BY A CURRENT
PROSPECTUS.

PAST PERFORMANCE RESULTS SHOWN IN THIS REPORT SHOULD NOT BE CONSIDERED A
REPRESENTATION OF FUTURE PERFORMANCE. SHARE PRICE AND RETURNS WILL FLUCTUATE SO
THAT SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
STATEMENTS AND OTHER INFORMATION HEREIN ARE DATED AND ARE SUBJECT TO CHANGE.

PRIMECAP, PRIMECAP ODYSSEY, AND THE PRIMECAP ODYSSEY LOGO ARE TRADEMARKS OF
PRIMECAP MANAGEMENT COMPANY.

ITEM 2. CODE OF ETHICS.

The registrant has adopted a code of ethics that applies to the registrant's
principal executive officers and principal financial officer. The registrant has
not made any amendments to its code of ethics during the period covered by this
report. The registrant has not granted any waivers from any provisions of the
code of ethics during the period covered by this report.

The registrant undertakes to provide to any person without charge, upon request,
a copy of its code of ethics by mail when they call the registrant at
1-800-729-2307.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

The registrant's Board of Trustees has determined that there is at least one
audit committee financial expert serving on its audit committee. Wayne Smith is
the "audit committee financial expert" and is considered to be "independent" as
each term is defined in Item 3 of Form N-CSR.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

The registrant has engaged its principal accountant to perform audit services,
audit-related services, tax services and other services during the past two
fiscal years. "Audit services" refer to performing an audit of the registrant's
annual financial statements or services that are normally provided by the
accountant in connection with statutory and regulatory filings or engagements
for those fiscal years. "Audit-related services" refer to the assurance and
related services by the principal accountant that are reasonably related to the
performance of the audit. "Tax services" refer to professional services rendered
by the principal accountant for tax compliance, tax advice, and tax planning.
There were no "Other services" provided by the principal accountant. The
following table details the aggregate fees billed or expected to be billed for
each of the last two fiscal years for audit fees, audit-related fees, tax fees
and other fees by the principal accountant.

------------------- ----------------- ----------------
FYE 10/31/2007 FYE 10/31/2006
------------------- ----------------- ----------------
Audit Fees $81,000 $70,500
Audit-Related Fees $0 $0
Tax Fees $15,750 $13,500
All Other Fees $0 $0
------------------- ----------------- ----------------

The audit committee has adopted pre-approval policies and procedures that
require the audit committee to pre-approve all audit and non-audit services of
the registrant, including services provided to any entity affiliated with the
registrant. All of the principal accountant's hours spent on auditing the
registrant's financial statements were attributed to work performed by full-time
permanent employees of the principal accountant.

The following table indicates the non-audit fees billed or expected to be billed
by the registrant's accountant for services to the registrant and to the
registrant's investment adviser (and any other controlling entity, etc.--not
sub-adviser) for the last two years. The Audit Committee of the Board of
Trustees has considered whether the provision of non-audit services that were
rendered to the registrant's investment adviser is compatible with maintaining
the principal accountant's independence and has concluded that the provision of
such non-audit services by the accountant has not compromised the accountant's
independence.

--------------------------------------------------------------------
Non-Audit Related Fees FYE 10/31/2007 FYE 10/31/2006
--------------------------------------------------------------------
Registrant $15,750 $13,500
Registrant's Investment Adviser $0 $0
--------------------------------------------------------------------

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable to registrants who are not listed issuers (as defined in Rule
10A-3 under the Securities Exchange Act of 1934).

ITEM 6. SCHEDULE OF INVESTMENTS.

Schedule of Investments is included as part of the report to shareholders filed
under Item 1 of this Form.

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

Not applicable to open-end investment companies.

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

Not applicable to open-end investment companies.

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

Not applicable to open-end investment companies.

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.

ITEM 11. CONTROLS AND PROCEDURES.

(a) The Registrant's Co-Chief Executive Officers and Chief Financial Officer
have reviewed the Registrant's disclosure controls and procedures (as
defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the
"Act")) as of a date within 90 days of the filing of this report, as
required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b)
under the Securities Exchange Act of 1934. Based on their review, such
officers have concluded that the disclosure controls and procedures are
effective in ensuring that information required to be disclosed in this
report is appropriately recorded, processed, summarized and reported and
made known to them by others within the Registrant and by the Registrant's
service providers.

(b) There were no changes in the Registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Act) 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) ANY CODE OF ETHICS OR AMENDMENT THERETO, THAT IS SUBJECT OF THE
DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT INTENDS TO
SATISFY ITEM 2 REQUIREMENTS THROUGH FILING AN EXHIBIT. Incorporated by
reference to the Registrant's Form N-CSR filed January 5, 2006.

(2) CERTIFICATIONS PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF
2002. Filed herewith.

(3) ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23C-1 UNDER
THE ACT 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 open-end
investment companies.

(B) CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002.
Furnished herewith.

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.

PRIMECAP Odyssey Funds

By /S/ JOEL P. FRIED
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Joel P. Fried, Co-Chief Executive Officer