Regulatory matters and litigation

Putnam Management has entered into agreements with the Securities and
Exchange Commission and the Massachusetts Securities Division settling
charges connected with excessive short term trading by Putnam employees
and, in the case of the charges brought by the Massachusetts Securities
Division, by participants in some Putnam administered 401(k) plans.
Pursuant to these settlement agreements, Putnam Management will pay a
total of $193.5 million in penalties and restitution, with $153.5 million
being paid to shareholders and the funds. The restitution amount will be
allocated to shareholders pursuant to a plan developed by an independent
consultant, with payments to shareholders currently expected by the end of
the summer.

The SECs and Massachusetts Securities Divisions allegations and
related matters also serve as the general basis for numerous lawsuits,
including purported class action lawsuits filed against Putnam
Management and certain related parties, including certain Putnam funds.
Putnam Management will bear any costs incurred by Putnam funds in
connection with these lawsuits. Putnam Management believes that the
likelihood that the pending private lawsuits and purported class action
lawsuits will have a material adverse financial impact on the fund is
remote, and the pending actions are not likely to materially affect its
ability to provide investment management services to its clients,
including the Putnam funds.

On March 23, 2005, Putnam Management entered into a settlement with the SEC
resolving its inquiry into Putnam Managements alleged failure to fully and
effectively disclose a former brokerage allocation practice to the Board of
Trustees and shareholders of the Putnam Funds.  This practice, which Putnam
Management ceased as of January 1, 2004, involved allocating a portion of the
brokerage on mutual fund portfolio transactions to certain broker dealers who
sold shares of Putnam mutual funds. Under the settlement order, Putnam
Management has paid a civil penalty of $40 million and disgorgement of $1 to
the SEC.  These amounts subsequently will be distributed to certain Putnam
funds pursuant to a plan to be approved by the SEC.  As part of the
settlement, Putnam Management neither admitted nor denied any wrongdoing.