Note 6
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.

In connection with its investigation of certain brokerage
matters, the staff of the Philadelphia district office of the SEC
has raised the question whether, in years prior to 2004, Putnam
Management fully and effectively disclosed its practices relating
to the allocation of brokerage on mutual fund portfolio
transactions to broker dealers who sold shares of the funds.
Putnam Management ceased directing brokerage to broker dealers in
connection with the sale of fund shares as of January 1, 2004.
Putnam Management and the Philadelphia office negotiated an offer
of settlement under which Putnam Management would pay a civil
penalty in the amount of $40 million and disgorgement in the
amount of $1, and the total amount would be distributed to
certain Putnam funds.  The offer of settlement is subject to
final documentation and approval by the Commissioners and the
staff of the SEC.  Discussions with the staff with respect to the
offer of settlement are ongoing.

Note 7
Other matters

In connection with a review of compliance procedures and
controls, Putnam Management discovered that in early January
2001, certain Putnam employees had willfully circumvented
controls in connection with the correction of operational errors
with respect to a 401(k) clients investment in certain Putnam
Funds, which led to losses in the fund. Putnam made restitution
of approximately $169,000 to the fund on February 27, 2004.
Putnam has also made a number of personnel changes, including
senior managers, and has implemented changes in procedures.
Putnam has informed the SEC, the funds Trustees and independent
auditors. The SEC is investigating this matter.