46480 9/98
PROSPECTUS SUPPLEMENT
dated September 14, 1998 to:
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PUTNAM TAX EXEMPT INCOME FUND
Prospectus dated January 30, 1998
In the section entitled "How the fund is managed," the third
paragraph is replaced with the following:
The following officer of Putnam Investment Management, Inc.
("Putnam Management") has had primary responsibility for the day-
to-day management of the fund's portfolio since the year stated
below:
Business experience
Officer Year (at least 5 years)
- ------- ---- ----------------------------
David E. Hamlin 1998 Employed as an investment
Senior Vice President professional by Putnam
Management since August, 1998.
Prior to August, 1998, Mr.
Hamlin was a Principal at
The Vanguard Group.
