46497 9/98
Prospectus Supplement
dated September 14, 1998 to:
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PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND (the "fund")
to Prospectus dated January 30, 1998
The third paragraph under the heading "How the fund is
managed" 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
Year (at least 5
years)
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Leslie J. Burke 1998 Employed as an
investment
Vice President professional by Putnam
Management since 1992.
