50173 3/99
PROSPECTUS SUPPLEMENT
dated February 1, 1999 to:
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PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND (THE "FUND")
Prospectus dated January 30, 1999
1. The following replaces the table under the heading "How
to buy shares" on page 19 of the prospectus:
INITIAL SALES CHARGES FOR CLASS A AND M SHARES
Class A sales charge Class M sales charge
as a percentage of: as a percentage of:
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Amount of purchase Net amount Offering Net amount Offering
at offering price ($) invested price* invested price*
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Under 25,000 4.99% 4.75% 3.36% 3.25%
25,000 but under
50,000 4.71% 4.50% 3.36% 3.25%
50,000 but under
100,000 4.71% 4.50% 2.30% 2.25%
100,000 but under
250,000 3.90 3.75 1.52 1.50
250,000 but under
500,000 3.09 3.00 1.01 1.00
500,000 but under
1,000,000 2.04 2.00 NONE NONE
1,000,000 and above NONE NONE NONE NONE
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*Offering price includes sales charge.
2. Replace the first paragraph under the heading "Fund
distributions and taxes," with the following:
THE INCOME FUND. The fund declares all of its net investment
income as a distribution each day it is open for business
and distributes any net realized capital gains at least once
a year. You begin earning distributions on the business day
Putnam Mutual Funds receives payment for your shares. The
fund normally pays dividends monthly.
