William N. Shiebler
                              Senior Managing Director
  
                              PUTNAM MUTUAL FUNDS
                              President
                              One Post Office Square
                              Boston, Massachusetts 02109
  
  PUTNAM LOGO
  
  Dear Investment Colleague:
  
  Proxy ballots were recently mailed to shareholders of THE
  GEORGE PUTNAM FUND OF BOSTON asking them to vote on the
  following proposals:
  
  -    Electing trustees for the fund.
  
  -    Ratifying the selection of Price Waterhouse LLP as the
       independent auditors of the fund for the current fiscal
       year.
  
  -    Approving a new management contract between the fund and
       Putnam Management that includes an increase in the
       management fee payable by the fund.
  
  -    Approving a number of changes to the fund's fundamental
       investment restrictions, including the elimination of
       certain of these restrictions. The purpose of these
       proposed changes is to increase the fund's investment
       flexibility and to bring the fund's policies more in line
       with those of many other Putnam funds. 
  
  A fee increase is proposed only after a great deal of
  thought and analysis on the part of the Trustees. For
  several years the Trustees have carefully studied the
  management fees, investment performance, and expense ratios
  of each of the Putnam funds and also of major competing
  funds. This comprehensive review resulted in recommendations
  for fee increases for some funds and decreases for others.
  The new management fee for The George Putnam Fund of Boston
  will result in an increase of $0.20 in annual expenses for
  each $100 invested. The Trustees believe that this increase
  is fair and reasonable when compared with the fees paid to
  other high-quality fund managers. Please encourage your
  clients to support the Trustees' recommendations.
    
  Please discuss these issues with your clients and encourage
  them to vote. Should you have any questions, or if you would
  like a copy of the proxy package, please call Putnam Broker
  Operations at 1-800-354-2228.
  
  Sincerely,
  
  William N. Shiebler