EX-99

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders
Putnam Investment Funds

In planning and performing our audit of the financial statements
of Putnam Arizona Tax Exempt Income Fund (the Fund), a series of
Putnam Investment Funds, as of and for the year ended May 31,
2008, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), we considered the
Funds internal control over financial reporting, including
controls over safeguarding securities, as a basis for designing
our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the
requirements of Form N-SAR, but not for the purpose of
expressing an opinion on the effectiveness of the Funds internal
control over financial reporting.   Accordingly, we express no
such opinion.
Management of the Fund is responsible for establishing and
maintaining effective internal control over financial reporting.
In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and
related costs of controls.  A companys internal control over
financial reporting is a process designed to provide reasonable
assurance regarding the reliability of financial reporting and
the preparation of financial statements for external purposes in
accordance with generally accepted accounting principles. A
companys internal control over financial reporting includes
those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately
and fairly reflect the transactions and dispositions of the
assets of the company; (2) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of
financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of
management and directors of the company; and (3) provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use, or disposition of the companys
assets that could have a material effect on the financial
statements.
Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future
periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree
of compliance with the policies or procedures may deteriorate.

A deficiency in internal control over financial reporting exists
when the design or operation of a control does not allow
management or employees, in the normal course of performing
their assigned functions, to prevent or detect misstatements on
a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control over financial
reporting, such that there is a reasonable possibility that a
material misstatement of the Funds annual or interim financial
statements will not be prevented or detected on a timely basis.

Our consideration of the Funds internal control over financial
reporting was for the limited purpose described in the first
paragraph and would not necessarily disclose all deficiencies in
internal control that might be deficiencies or material
weaknesses under standards established by the Public Company
Accounting Oversight Board (United States).  However, we noted
no deficiencies in the Funds internal control over financial
reporting and its operation, including controls for safeguarding
securities that we consider to be a material weakness as defined
above as of May 31, 2008.

This report is intended solely for the information and use of
management and the Board of Trustees of Putnam Arizona Tax
Exempt Income Fund and the Securities and Exchange Commission
and is not intended to be and should not be used by anyone other
than these specified parties.


/s/ KPMG LLP

July 8, 2008

EX-99

New Accounting Pronouncement

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.

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
(SFAS 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.

EX-99

855 Putnam Arizona Tax Exempt, 5/31/08, Annual

Exhibit 77 I

Creation of additional class of shares

The Putnam Arizona Tax Exempt Income Fund added Class Y shares
effective January 2, 2008.

EX-99

Putnam Arizona Tax Exempt Income Fund, May 31, 2008, annual
report

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:

53A) For the period ended May 31, 2008, Putnam Management has
assumed $140 of legal, shareholder servicing and communication,
audit and Trustee fees incurred by the fund in connection with
certain legal and regulatory matters.

72DD1 		Class A		3,145
		Class B		  221
		Class C		   14

72DD2		Class M		   47
		Class Y		    1

73A1		Class A		0.3758
		Class B		0.3177
		Class C		0.3043

73A2		Class M		0.3503
		Class Y		0.1655

74U1		Class A		8,429
		Class B		  585
		Class C		  112

74U2		Class M		  128
		Class Y		   10

74V1		Class A		 8.94
		Class B		 8.93
		Class C		 8.94

74V2		Class M		 8.95
		Class Y		 8.94






Item 61

Additional Information About Minimum Required Investment

Shareholders can open a fund account with as little as $500 and
make subsequent investments in any amount. The minimum investment
is waived if you make regular investments weekly, semi-monthly,
or monthly through automatic deductions through your bank
checking or savings account. Currently, Putnam is waiving the
minimum, but reserves the right to reject initial investments
under the minimum.


Item 85B

Additional Information About Errors and Omissions Policy

While no claims with respect to the Registrant/Series were filed
under such policy during the period, requests under such policy
for reimbursement of legal expenses and costs arising out of
claims of market timing activity in the Putnam Funds have been
submitted by the investment manager of the Registrant/Series.