54327 7/99
PROSPECTUS SUPPLEMENT
dated July 19, 1999 to:
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PUTNAM CALIFORNIA TAX EXEMPT INCOME FUND (THE "INCOME FUND")
Prospectus dated January 30, 1999
The second paragraph under the heading "Who manages each
fund?" 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 Income fund's portfolio since
the year shown below. His experience as a portfolio manager
or investment analyst over at least the last five years is
also shown.
Manager Since Experience
- ------- ----- -------------------------
David E. Hamlin 1999 Employed by Putnam Management
SENIOR VICE PRESIDENT since 1998. Prior to August
1998, Mr. Hamlin was employed
at The Vanguard Group.
