Putnam Money Market Fund, as of September 30, 2008, annual
shareholder report

New accounting pronouncements

In June 2006, the Financial Accounting Standards Board (FASB)
issued Interpretation No. 48, Accounting for Uncertainty in
Income Taxes (the Interpretation). The Interpretation prescribes
a minimum threshold for financial statement recognition of the
benefit of a tax position taken or expected to be taken by a
filer in the filers tax return. Upon adoption, the Interpretation
did not have a material effect on the funds financial statements.
However, the conclusions regarding the Interpretation may be
subject to review and adjustment at a later date based on factors
including, but not limited to, further implementation guidance
expected from the FASB, and on going analysis of tax laws,
regulations and interpretations thereof. Each of the funds
federal tax returns for the prior three fiscal years remains
subject to examination by the Internal Revenue Service.

In September 2006, the FASB issued Statement of Financial
Accounting Standards No. 157, Fair Value Measurements (the
Standard). The Standard defines fair value, sets out a framework
for measuring fair value and expands disclosures about fair value
measurements. The Standard applies to fair value measurements
already required or permitted by existing standards.
The Standard is effective for fiscal years beginning after
November 15, 2007 and interim periods within those fiscal years.
Putnam Management does not believe the adoption of the Standard
will impact the amounts reported in the financial statements;
however, additional disclosures will be required about the inputs
used to develop the measurements of fair value.

In March 2008, Statement of Financial Accounting Standards No.
161, Disclosures about Derivative Instruments and Hedging
Activities (SFAS 161) an amendment of FASB Statement No. 133,
was issued and is effective for fiscal years beginning after
November 15, 2008. SFAS 161 requires enhanced disclosures about
how and why an entity uses derivative instruments and how
derivative instruments affect an entitys financial position.
Putnam Management is currently evaluating the impact the adoption
of SFAS 161 will have on the funds financial statement
disclosures.

In September 2008, FASB Staff Position FAS 133 1 and FIN 45 4,
Disclosures about Credit Derivatives and Certain Guarantees: An
Amendment of FASB Statement No. 133 and FASB Interpretation No.
45; and Clarification of the Effective Date of FASB Statement No.
161 (Amendment) was issued and is effective for annual and
interim reporting periods ending after November 15, 2008. The
Amendment requires enhanced disclosures regarding a funds credit
derivatives holdings and hybrid financial instruments containing
embedded credit derivatives. Management is currently evaluating
the impact the adoption of the Amendment will have on the funds
financial statement disclosures.