EX-99

Regulatory matters and litigation

On November 13, 2003, Putnam Management
agreed to entry of an order by the Securities and
Exchange Commission (SEC) in partial resolution
of administrative and cease-and-desist proceedings
initiated by the SEC on October 28, 2003 in
connection with alleged excessive short-term
trading by at least six Putnam Management
investment professionals. The SECs findings
reflect that four of those employees engaged in
such trading in funds over which they had investment
decision-making responsibility and had
access to non-public information regarding,
among other things, current portfolio holdings,
and valuations. The six individuals are no longer
employed by Putnam Management. Under the
order, Putnam Management will make restitution
for losses attributable to excessive short-term
trading by Putnam employees, institute new
employee trading restrictions and enhanced
employee trading compliance, retain an independent
compliance consultant, and take other
remedial actions. Putnam Management neither
admitted nor denied the orders findings, which
included findings that Putnam Management
willfully violated provisions of the federal
securities laws. A civil monetary penalty and
other monetary relief, if any, will be determined at
a later date. If a hearing is necessary to determine
the amounts of such penalty or other relief,
Putnam Management will be precluded from
arguing that it did not violate the federal securities
laws in the manner described in the SEC order,
the findings set forth in the SEC order will be
accepted as true by the hearing officer and additional
evidence may be presented. Putnam
Management, and not the investors in any Putnam
fund, will bear all costs, including restitution, civil
penalties and associated legal fees. Administrative
proceedings instituted by the Commonwealth of
Massachusetts on October 28, 2003 against
Putnam Management in connection with alleged
market timing activities by Putnam employees
and by participants in some Putnam-administered
401(k) plans are pending. Putnam Management
has committed to make complete restitution for
any losses suffered by Putnam shareholders as a
result of any improper market-timing activities by
Putnam employees or within Putnam-administered
401(k) plans.
The SECs and Commonwealths 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 has agreed to
bear any costs incurred by Putnam funds in
connection with these lawsuits. Based on currently
available information, 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.
Review of these matters by counsel for Putnam
Management and by separate independent counsel
for the Putnam funds and their independent
Trustees is continuing. In addition, Marsh &
McLennan Companies, Inc., Putnam
Managements parent company, has engaged
counsel to conduct a separate review of Putnam
Managements policies and controls related to
short-term trading. The fund may experience
increased redemptions as a result of these matters,
which could result in increased transaction costs
and operating expenses.

EX-99

Exhibit 77 I

Creation of additional class of shares

The Putnam Massachusetts Tax Exempt Income Fund added Class
C shares effective August 19, 2003.

Class C shares were not added by Post Effective Amendment.

EX-99

Fund #845, Putnam Massachusettes Tax Exempt Income Fund
Semiannual report, 11/30/03

Because the electronic format for filing Form N-SAR does
not provide adequate space for responding to certain items
correctly, the correct answers are as follows:

72DD1 	Class A		6,569
	Class B		1,945
	Class C		4

72DD2 	Class M		102


73A1	 Class A	0.1934
	 Class B	0.1621
	 Class C	0.0893

74A2	 Class M	0.1790


74U1	 Class A	30,826
	 Class B	10,529
	 Class C	100

74U2	 Class M	548


74V1	 Class A	9.58
	 Class B	9.58
	 Class C	9.59

74V2	 Class M	9.58