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All shareholders of the
Colonial Mutual Funds were ------------------------------
mailed a proxy beginning on TO
September 10, 1998.
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FAX NUMBER
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FROM
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PHONE NUMBER
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SHAREHOLDERS ASKED TO VOTE BY THE MEETING DATE: 10/30/98
THE PROPOSALS ARE AS FOLLOWS:
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FUNDS PROPOSAL WHAT APPROVAL OF THE PROPOSAL WOULD MEAN
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All funds To elect a Board of Trustees. Nine individuals comprise the existing Board of Trustees.
This proposal covers re-election for the current Trustees
and nominates four new Trustees.
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All funds except To amend the fundamental If approved, this proposal would allow for the establishment
Colonial Municipal Money investment policies regarding of an interfund lending program. Under this program, a Fund
Market Fund, LFC borrowing and lending. could lend or borrow money to or from another affiliated
Utilities Trust, fund more cost-effectively than it could through a bank to
Colonial Money Market meet short-term needs.
Fund
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Colonial High Yield To reclassify the fundamental This proposal requests a reclassification of the Funds'
Securities Fund, investment policy regarding the fundamental investment policies regarding the purchase of
Colonial Income Fund, purchase of illiquid securities. illiquid securities to non-fundamental. The policies were
Colonial Intermediate made fundamental because of regulatory and business
U.S. Government Fund, conditions at the time. Those conditions no longer exist.
The Colonial Fund,
Colonial Federal
Securities Fund,
Colonial Global Equity
Fund, Colonial
International Horizons
Fund, Colonial
Tax-Exempt Fund,
Colonial Tax-Exempt
Insured Fund, Colonial
High Yield Municipal
Fund, Newport Japan
Opportunities Fund,
Newport Tiger Cub Fund,
Newport Greater China
Fund and Colonial
Utilities Fund
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Colonial California To approve change from a All of Colonial's other state tax-exempt funds are
Tax-Exempt Fund diversified fund to a non-diversified. The Fund was originally established as a
non-diversified fund. diversified fund in order to receive more favorable tax
status in California. The laws in California have since
changed and there is no longer an advantage to being
diversified. The proposal would allow the Fund's managers
more flexibility in managing the portfolio.
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All funds except To approve policies for a master If this proposal is approved, it would allow for the
Colonial Global fund/feeder fund structure. conversion of the Fund to a master fund/feeder fund
Utilities Fund, Colonial structure, provided that the Board of Trustees believes the
Municipal Money Market conversion is in the Fund's best interests. There are
Fund, LFC Utilities currently no plans to convert the Fund to this structure.
Trust and Colonial Money The conversion would provide the Fund with additional
Market Fund distribution channels and could increase cost efficiencies.
Approval of this proposal could eliminate future conversion
expenses for shareholders.
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Voting methods: Internet, mail, in person and in some instances, by fax. The
above proposals are summaries of proposals found on the proxy statement. Please
read the proxy statement carefully for a full description of the above
proposals. Complete copies of the proxies may be viewed on our Web site:
www.libertyfunds.com
For more information, call a Liberty Funds Distributor Sales Specialist at
1-800-426-3750.
[Liberty Logo]
COLONIAL FUNDS [bullet] STEIN ROE ADVISOR FUNDS [bullet] NEWPORT FUNDS
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Liberty Funds Distributor, Inc. (C) 1998
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One Financial Center, Boston, MA 02111-2621, 1-800-426-3750 Investment Professional Use Only.
Visit us at www.libertyfunds.com D-055G-1098 (10/98)
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