Columbia Money Market Fund


77E Legal Proceedings
Recently, the Fund has been named as a nominal defendant in several derivative
actions under Sections 34(b), 36(b) and 48(a) of the Investment Company Act of
1940, as amended, alleging, among other things, that the fees and expenses paid
by the Fund are excessive. Cohen v. FleetBoston Financial Corporation was filed
in the U.S. District Court for the District of Massachusetts on August 2, 2004;
Osburn v. FleetBoston Financial Corporation was filed in the U.S. District Court
for the District of Massachusetts on August 10, 2004; Slicker v. FleetBoston
Financial Corporation was filed in the U.S. District Court for the District of
Massachusetts on August 11, 2004; and Simmonds v. FleetBoston Financial
Corporation was filed in the U.S. District Court for the District of
Massachusetts on September 8, 2004. The Fund and the other defendants to these
actions, including Columbia Management Advisors, Inc. ("CMA") and various of its
affiliates, certain other mutual funds advised by CMA and its affiliates, and
various directors of the Fund and such funds, have denied these allegations and
are contesting the plaintiffs' claims.

Additionally, various civil individual, class and derivative actions have been
filed in regard to certain market timing allegations. As of August 31, 2004, we
have received the following complaints.

(1)      George Slaybe et al, Plaintiffs, v. Columbia Management Advisors, Inc.,
         Defendant United States District Court District of Massachusetts
         Case # 04 10534 PBS

(2)      David Armetta derivatively on behalf of the Columbia Common Stock Fund,
         Plaintiff, v. FleetBoston Financial Corporation, et al.

         United States District Court
         District of Massachusetts
         Case # 04 10555 MLW

(3)    Edward I. Segel and Iris Segel derivatively on behalf of Columbia Acorn
       Fund, Columbia Acorn Trust and the Columbia Funds, Plaintiffs, v.
       FleetBoston Financial Corporation, et al.

         United States District Court
         District of Massachusetts
                                                              Case # 04-10567MEL

(4)      Catherine Dukes, Individually and On Behalf of All Others Similarly
         Situated v. Columbia Funds, et al.

         United States District Court
         District of Massachusetts
         Case # 04-10315-PBS

(5)      AB Medical Equipment Corp., Individually and On Behalf of All Others
         Similarly Situated, Plaintiff, v. FleetBoston Financial Corporation, et
         al.

         United States District Court
         District of Massachusetts
                                                              Case # 04-10355PBS

(6)      Karen M. McKenna, Individually and on Behalf of All Others Similarly
         Situated, Plaintiff, v. Columbia Funds, et al..

         United States District Court
         Southern District of New York
                                                               Case # 04 CV 1576

(7)      Lawrence S. Wick, as custodian for Ryan S. Wick, Andrew T. Wick, and
         Hayley L. Wick, and Ryan S. Wick, Andrew T. Wick, and Hayley L. Wick
         individually and on behalf of others similarly situated, Plaintiffs, v.
         FleetBoston Financial Corporation, et al.

         United States District Court
         District of Massachusetts
                                                              Case # 04-10408HEL


(8)      Steven B. Ehrlich, Custodian for Cory Ryan Ehrlich UTMA/Florida,
         Individually and On Behalf of All Others Similarly Situated v. Columbia
         Funds, et al.

         United States District Court
         District of Massachusetts
         Case # 04 10405 PBS


(9)      Harold Beardsley, et al on behalf of Columbia Disciplined Value Fund
         (the "Columbia Funds") v. FleetBoston Financial Corporation, et al

         United States District Court
         District of Massachusetts
         Case # 04 10978 PBS

77 I Terms of New or Amended Securities
Effective July 1, 2004, Exchanges for Clients of Affiliates of Investment
Advisor are no longer available.