Proxy Solicitation Script
for
Putnam American Government Income Fund
This script provides information to the shareholder and solicits
his/her vote by mail.
Putnam: Good Evening Mr./Ms. . My name is
and I'm calling from Putnam Investments in Boston. I'm
calling in regard to the important proxy materials
which you should have received for your Fund's
shareholders' meeting which will be held in May. This
information was mailed to you in early March. The
package consisted of a Putnam business envelope with
black and red print on the outside of the envelope.
The words "Important Proxy Material Enclosed Prompt
Response Will Save Your Fund Money" were clearly marked
on the package. Do you recall receiving it? (Proceed
to A or B as applicable).
A (If the shareholder has received the proxy materials.)
S/H: Yes.
Putnam: Great, however according to our most recent records, we
have not received your proxy ballot which was included
in the package. Could you tell me if you have already
returned it?
* If the shareholder received the information, but has
not sent it back, continue with: We are calling our
shareholders to urge them to read and complete the
Proxy ballot enclosed in the package. By promptly
doing so, it may save your Fund the cost of an
additional mailing.
* If the shareholder returned the ballot, continue with:
Thank you very much for your time, Mr./Ms. .
Your vote is very important.
* If the shareholder threw the ballot away because he/she
did not think it was important, proceed to B.
B (If the shareholder has not received the proxy
materials.)
S/H: No.
Putnam: May I confirm your address so that another package can
be sent to you? (Confirm address with shareholder.)
You will be receiving a duplicate package shortly. We
ask only that you read the materials and take a moment
to complete and return the proxy ballot. By promptly
doing so, it may save your Fund the cost of an
additional mailing. If you have any questions in
regard to this material, please call us, toll-free, at
1-(800) 225-1581.
Putnam: Thank you very much for your time, Mr./Ms. .
We look forward to receiving your ballot shortly.
The following information is only to be given if the
shareholder would like to know what the proposals are:
Putnam: The 1994 meeting of the shareholders of your Fund will
be held on May 5, 1994. Although we would like to have
each shareholder attend, we understand this is not
always possible. Even if you cannot attend, we need
your vote on the proposals which will be addressed at
the meeting.
S/H: What are the proposals?
Putnam: The proposals to be acted upon at the meeting are more
fully described in the proxy statement. I will be
happy to summarize them for you:
1 ELECTION OF TRUSTEES. All of the nominees have
been recommended by the Nominating Committee and
are presently Trustees of the Fund.
2 SELECTION OF AUDITORS. The Trustees have selected
Price Waterhouse to be the Fund's auditors. You
are given the opportunity to ratify or reject this
selection. The Trustees recommend that the Fund's
shareholders ratify the selection of Price
Waterhouse.
3 APPROVAL OR DISAPPROVAL OF THE NEW DISTRIBUTION
PLAN. The Trustees recommend that the
shareholders approve a new Distribution Plan to
permit the Fund to incur distribution expenses of
up to 0.35% of all of the Fund's average net
assets annually, including assets attributable to
shares for which Putnam Mutual Funds is investment
dealer of record.
The proposed Plan differs from the existing Plan
in two material respects: (1) the maximum
permitted percentage rate of distribution payments
and (2) the base of eligible assets to which the
percentage rate is applied. The existing Plan
permits the Fund to incur distribution expenses of
up to 0.25% of the Fund's net assets annually,
excluding assets attributable to shares for which
Putnam Mutual Funds is investment dealer of
record.
At present, the Trustees have authorized payments
under the existing Plan up to the maximum
permitted annual rate of 0.25% of eligible net
assets under the Plan. If the proposed new Plan
is approved, the Trustees intend to limit payments
to 0.25% of eligible net assets under the new
Plan. As a result, payments under the Plan would
initially increase only to the extent that
eligible assets are increased. The Trustees of
the Fund could in the future authorize payments in
excess of 0.25% and up to the maximum of 0.35% set
forth in the Plan without further shareholder
approval, but they have no present intention of
doing so and would do so only if, in their
judgment, the additional payments would be likely
to benefit the Fund and its shareholders.
Putnam: Those are the proposals. Can I clarify anything for
you? If not, please read the materials carefully,
complete the enclosed proxy card and return it promptly
in the envelope provided.
S/H: Thank you for the information.
Putnam: Thank you for your time, Mr./Ms. . Your vote is
very important, and we look forward to receiving it
soon.
