[Fidelity logo]
Mr. Fred C. Applegate
885 La Jolla Corona Ct.
La Jolla, CA 92037-7445
Dear Mr. Applegate:
We recently tried to contact you to discuss the proposed merger of Spartan
California Intermediate Municipal Income Fund (Spartan CA Intermediate)
into Fidelity California Municipal Income Fund (Fidelity CA Income). Based
on the recent six percentage point drop in the affirmative vote, we are
assuming that you voted "Against" the proposal. I am writing to ask you to
reconsider your vote on this important initiative.
You are a valued client to both Spartan CA Intermediate and to Fidelity
overall. We would like to ensure that you receive all of the information
you need to make your decision. If you have any questions related to the
investment management of either fund, such as the volatility or portfolio
characteristics of the funds, we would be happy to arrange a conversation
with a senior portfolio manager.
In evaluating your decision, please consider the following information:
(solid bullet) (solid bullet)The proposed merger will result in lower
expenses. If shareholders approve the merger, the combined fund will
reduce its total expenses from 0.55% to 0.53% of average net assets,
guaranteed through December 31, 1999. The Board of Trustees of Spartan CA
Intermediate believes that the proposed merger is in the best interests of
shareholders.
(solid bullet) (solid bullet)The proposed merger is part of a wider
strategy by Fidelity to reduce the number of municipal bond funds it
manages. Spartan CA Intermediate is one of the smaller municipal bond
funds we manage. Combining it into a larger fund will allow Fidelity to
concentrate on a single, broad-based investment discipline for California
investors, and deliver lower operating expenses as well. Fidelity CA
Income generally invests in securities with somewhat longer maturities than
Spartan CA Intermediate, and therefore, its share price may fluctuate more
in response to changes in interest rates.
Thank you for your time and careful consideration. If you would like to
change your vote, you may do so via Federal Express, fax, or a simple
telephone call. .
To Vote by Federal Express
To facilitate receiving your voted proxy as quickly as possible, we have
enclosed a proxy card. To cast your ballot, simply record your vote on the
proxy card. You can mail your signed proxy card in the Federal Express
envelope provided.
To use this return envelope, call Federal Express at 1-800-238-5355 and
press "*" to arrange a pick-up. Federal Express will pick up the envelope
at your location. There is no charge to you for sending the overnight
package.
To Vote by Fax
Voting by fax is also quick and easy. If you would like to vote by fax, be
sure to fax both the front and back of your signed proxy card. The
toll-free fax number is 1-888-451-8683.
To Vote by Telephone
You also have the option of voting your shares by telephone. If you would
like to vote by telephone, call D.F. King toll-free at 1-800-628-8538.
After verifying your identity, D.F. King can very quickly take your vote by
telephone.
We look forward to speaking with you and will try to contact you shortly.
If you have any questions or would like to arrange a discussion with a
senior portfolio manager, please feel free to call Judy Hogan at
1-617-563-6137. Thank you.
Sincerely,
/s/ Robert C. Pozen
Robert C. Pozen
President
Fidelity Management & Research Company
