852 Putnam New Opportunities Fund attachment
12/31/05 Semi-annual

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 certain open-end funds and their
shareholders. The amount will be allocated to shareholders and
funds pursuant to a plan developed by an independent consultant,
and will be paid following approval of the plan by the SEC and
the Massachusetts Securities Division.

The Securities and Exchange Commissions 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.

Pursuant to a settlement with the Securities and Exchange
Commission relating to Putnam Managements brokerage allocation
practices, on October 13, 2005 the fund received $3,010,524 in
proceeds paid by Putnam Management. The fund had accrued a
receivable for this amount in the prior fiscal year.

Putnam Investments has recorded a charge of $30 million for the
estimated cost, excluding interest, that it believes will be
necessary to address issues relating to the calculation of
certain amounts paid by the Putnam mutual funds in previous
years. The previous payments were cost reimbursements by the
Putnam funds to Putnam for transfer agent services relating to
defined contribution operations. Putnam currently anticipates
that any payments made by Putnam related to this issue will be
paid to the Putnam funds. Review of this issue is ongoing.

Putnam Management and Putnam Retail Management are named as
defendants in a civil suit in which the plaintiffs allege that
the management and distribution fees paid by certain Putnam
funds were excessive and seek recovery under the Investment
Company Act of 1940. Putnam Management and Putnam Retail
Management have contested the plaintiffs claims and the
matter is currently pending in the U.S. District Court for the
District of Massachusetts. Based on currently available
information, Putnam Management believes that this action is
without merit and that it is unlikely to have a material effect
on Putnam Managements and Putnam Retail Managements ability to
provide services to their clients, including the fund.