PUTNAM TAX EXEMPT INCOME FUND
Prospectus Supplement dated December 4, 1995
to Prospectus dated February 1, 1995
James E. Erickson, Managing Director of Putnam Investment
Management, Inc. ("Putnam Management") and Vice President of the
Fund and Triet M. Nguyen, Senior Vice President of Putnam
Management and Vice President of the Fund, have had primary
responsibility for the day-to-day management of the Fund's
portfolio since December, 1995 and July, 1995, respectively. Mr.
Erickson and Mr. Nguyen have been employed by Putnam Management
since 1978 and 1985, respectively.
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Effective December 1, 1995, any applicable contingent deferred
sales charge will be waived on redemptions of shares following
the death or post-purchase disability of a settlor of a living
trust account. Up to 12% of the value of shares subject to a
systematic withdrawal plan may also be redeemed each year without
a CDSC.
12/95
