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PUTNAM TAX EXEMPT INCOME FUND
Prospectus Supplement dated July 17, 1995
to Prospectus dated February 1, 1995
David J. Eurkus and Triet M. Nguyen, each a Senior Vice President of Putnam
Investment Management, Inc. ("Putnam Management") and Vice President of the
Fund, have had primary responsibility for the day-to-day management of the
Fund's portfolio since 1985 and July, 1995, respectively. Mr. Eurkus and
Mr. Nguyen have been employed by Putnam Management since 1983 and 1985,
respectively.
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