Proxy Solicitation Script
for
Putnam Texas Tax Exempt Income Fund
This script provides information to the shareholder and solicits
his/her vote by mail.
Putnam: Good Evening Mr./Ms. . My name is
and I'm calling from Putnam Investments in Boston. I'm
calling in regard to the important proxy materials
which you should have received for your Fund's
shareholders' meeting which will be held in May. This
information was mailed to you in late March. The
package consisted of a Putnam business envelope with
black and red print on the outside of the envelope.
The words "Important Proxy Material Enclosed Prompt
Response Will Save Your Fund Money" were clearly marked
on the package. Do you recall receiving it? (Proceed
to A or B as applicable).
A (If the shareholder has received the proxy materials.)
S/H: Yes.
Putnam: Great, however according to our most recent records, we
have not received your proxy ballot which was included
in the package. Could you tell me if you have already
returned it?
* If the shareholder received the information, but has
not sent it back, continue with: We are calling our
shareholders to urge them to read and complete the
Proxy ballot enclosed in the package. By promptly
doing so, it may save your Fund the cost of an
additional mailing.
* If the shareholder returned the ballot, continue with:
Thank you very much for your time, Mr./Ms. .
Your vote is very important.
* If the shareholder threw the ballot away because he/she
did not think it was important, proceed to B.
B (If the shareholder has not received the proxy
materials.)
S/H: No.
Putnam: May I confirm your address so that another package can
be sent to you? (Confirm address with shareholder.)
You will be receiving a duplicate package shortly. We
ask only that you read the materials and take a moment
to complete and return the proxy ballot. By promptly
doing so, it may save your Fund the cost of an
additional mailing. If you have any questions in
regard to this material, please call us, toll-free, at
1-(800) 225-1581.
Putnam: Thank you very much for your time, Mr./Ms. .
We look forward to receiving your ballot shortly.
The following information is only to be given if the
shareholder would like to know what the proposal is:
Putnam: A meeting of the shareholders of your Fund will be held
on May 5, 1994 at 1 p.m. on the eighth floor of One
Post Office Square, Boston, Massachusetts. Although we
would like to have each shareholder attend, we
understand this is not always possible. Even if you
cannot attend, we need your support on the proposal
which will be addressed at the meeting.
S/H: What is the proposal?
Putnam: The proposals to be acted upon at the meeting are more
fully described in the proxy statement. I will be
happy to summarize them for you:
1 REORGANIZATION. The Trustees of the Texas Fund are
recommending that the shareholders approve a
reorganization in which the Texas Fund will
transfer all of its assets to Putnam Tax Exempt
Income Fund (the "Income Fund") in return for
Class A shares of the Income Fund and the
assumption by the Income Fund of all of the
liabilities of the Texas Fund. After the
transfer, the Class A shares of the Income Fund
will be distributed to the holders of the Texas
Fund, thereby liquidating the Texas Fund. As a
result of these transactions, your shares of the
Texas Fund would, in effect, be exchanged at net
asset value and on a tax-free basis for Class A
shares of the Income Fund. Both funds are managed
by Putnam Investment Management, Inc. and have the
same Trustees.
Both Funds seek as high a level of current income
exempt from federal income tax as is consistent
with preservation of capital and follow virtually
identical investment policies. The principle
difference between the Funds is that the Texas
Fund normally concentrates its investments in tax-
exempt securities of Texas issuers, while the
Income Fund normally invests in tax-exempt
securities of issuers located in various states.
Because of the similarities between the Funds, the
proposed reorganization will not affect the
general strategy or style in which the portfolio
manager will manage your investment.
Putnam: This is the proposal. Can I clarify anything for you?
If not, please read the materials carefully, complete
the enclosed proxy card and return it promptly in the
envelope provided.
S/H: Thank you for the information.
Putnam: Thank you for your time, Mr./Ms. . Your vote is
very important, and we look forward to receiving it
soon.
A0Bscrip
