Putnam Announces Formal Approval of Closed-End Fund Mergers

Business Wire, June 18, 2007

BOSTON -- Putnam Investments and the Board of Trustees of the Putnam Funds announced today that the Board of Trustees has formally approved (i) the merger of Putnam High Yield Municipal Trust (NYSE: PYM) into Putnam Managed Municipal Income Trust (NYSE: PMM) and (ii) the mergers of each of Putnam Investment Grade Municipal Trust (NYSE: PGM) and Putnam Municipal Bond Fund (NYSE: PMG) into Putnam Municipal Opportunities Trust (NYSE: PMO).

In approving these mergers, the Trustees considered the benefits that shareholders of each participating fund would receive from participation in a significantly larger fund, including increased investment flexibility, possible expense reductions through economies of scale and increased liquidity in the trading market for fund shares. In each case, the investment objectives and strategies of the merging funds are substantially similar. The funds are also managed by the same tax-exempt investment team at Putnam Investments.

Each plan of merger is subject to the approval of shareholders of the participating funds and certain other conditions. It is currently expected that these mergers will be concluded in the fall of 2007.

Putnam Investments believes that the closed-end funds continue to hold an important position in the broad range of Putnam products. The proposed mergers are part of a continuing effort by Putnam Investments and the Funds' Trustees to maintain a diverse array of closed-end products, while taking into account changing market circumstances. This initiative includes other mergers involving closed-end funds (announced in February) and tender offers for 10% of the outstanding common shares of eight other funds, including each of the funds involved in the mergers approved today. The tender offers were commenced on June 4, 2007 and are scheduled to be concluded in July 2007.

The Trustees meet regularly with Putnam Investments regarding the closed-end funds, and they carefully monitor the funds' performance, the trading prices of fund shares and the expressed views of shareholders in the funds. In managing the closed-end funds, especially during periods of significant trading discounts, Putnam Investments works with the Trustees to take actions that they believe are in the long-term best interests of fund shareholders. The mergers and tender offer program described above are consistent with actions taken by Putnam Investments and the Trustees in recent years, including:

* Instituting a share repurchase program, under which each closed-end fund is authorized to repurchase, at prices below net asset value, up to 10% of its outstanding shares over a 2-year period ending in October 2007. This program enhances shareholder value, as repurchases made at a discount increase the net asset value per share of a fund's remaining shares, and has made a meaningful contribution to investment return.

* Management fee reductions for most of the closed-end funds, effective January 1, 2006.

* Merging two pairs of closed-end funds together for greater efficiencies in 2005, merging one closed-end fund into an open-end fund managed by Putnam Investments in 2006 and approving the mergers of two other closed-end funds into open-end Putnam funds.

* Promoting the funds with enhanced disclosure and providing greater transparency to investors on the merits of the closed-end funds.

* Expanding the tools available to fund management teams, including a 2005 initiative to allow the taxable income funds to employ leverage through borrowing.

About Putnam Investments:

At Putnam Investments, the top priority remains prudently managing money for our retail and institutional clients worldwide. Since 1937, the company's values have been rooted in a profound sense of responsibility for the money entrusted to it. Putnam uses a research-driven team approach to seek consistent, dependable, superior investment results over time, although there is no guarantee a fund will meet its objectives. Putnam is committed to doing what's right for investors, including maintaining stringent investor protections for every Putnam fund.

Founded in 1937, Putnam Investments is one of the world's oldest and largest money management firms. As of May 31, 2007, Putnam managed $195 billion in assets, of which $123 billion is for mutual fund investors and $72 billion is for institutional accounts. Putnam has offices in Boston, London and Tokyo. For more information, go to www.putnam.com.

The foregoing is not an offer to sell, nor a solicitation of an offer to buy, shares of any fund, nor is it a solicitation of any proxy. For more information regarding the Putnam Funds, or to receive a free copy of materials filed with the SEC, including a prospectus/proxy statement relating to a proposed merger (and containing important information about fees, expenses and risk considerations) once a registration statement relating to such merger has been filed with the SEC and becomes effective, please visit www.putnam.com. Free copies of such materials can also be found on the SEC's website (http://www.sec.gov). Please read any applicable prospectus/proxy statement carefully before making any investment decisions.