Four closed-end funds proposed to merge in early 2005

As part of our ongoing efforts to clarify and refine Putnam's product
line, we have proposed -- and the Putnam Trustees have approved -- plans
to combine two closed-end funds into two similar larger funds. Because
the combined funds will have larger asset bases, investors are expected
to benefit from lower expenses. Putnam Master Income Trust, a
multi-sector fixed-income fund, has been proposed for merger into Putnam
Premier Income Trust, which has a similar objective and strategy. Putnam
High Income Opportunities Trust, which invests in convertible securities
and high-yield bonds, has been proposed for merger into Putnam High
Income Bond Fund, which has a similar objective and strategy.

The mergers will also give us the opportunity to focus investment
resources on a more select number of funds with the goal of delivering
consistent, dependable, superior performance over time, although there
can be no assurance that the funds will achieve this objective.
Shareholders in each of the funds will be asked to vote on the proposed
mergers. Proxy materials, which contain more information about the
mergers, will be mailed in November.

Note: The foregoing is not an offer to sell, nor a solicitation of an
offer to buy shares of any fund, nor is it a solicitation of a proxy. To
receive a free copy of the prospectus/proxy statement relating to a
proposed merger (which contains important information about fees,
expenses, and risk considerations) after a registration statement has
been filed with the SEC and becomes effective, please call
1-800-225-1581. The prospectus/proxy statement will also be available
without charge on the SEC's Web site (www.sec.gov). Read the
prospectus/proxy statement carefully before making any investment
decisions.

Putnam Master Income Trust

The Putnam fund Trustees have approved the merger of Putnam Master
Income Trust into Putnam Premier Income Trust. The completion of the
merger is subject to significant conditions, including SEC review and
shareholder approval, so it is possible that the merger will not be
completed. Details of the merger will be included in a prospectus/proxy
statement that will be mailed to shareholders in November.

Note: The foregoing is not an offer to sell, nor a solicitation of an
offer to buy, shares of any fund, nor is it a solicitation of a proxy.
To receive a free copy of the prospectus/proxy statement relating to a
proposed merger (which contains important information about fees,
expenses and risk considerations) after a registration statement has
been filed with the SEC and becomes effective, please call
1-800-225-1581. The prospectus/proxy statement will also be available
without charge on the SEC's website (www.sec.gov). Read the
prospectus/proxy statement carefully before making any investment
decisions.

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              Putnam Premier Income Trust

The Trustees of the Putnam funds have approved the merger of Putnam
Master Income Trust into Putnam Premier Income Trust. The completion of
the merger is subject to significant conditions including SEC review and
shareholder approval, so it is possible that the merger will not be
completed. Details of the merger will be included in a prospectus/proxy
statement that is expected to mail to shareholders in November.

Note: The foregoing is not an offer to sell, nor a solicitation of an
offer to buy, shares of any fund, nor is it a solicitation of a proxy.
To receive a free copy of the prospectus/proxy statement relating to a
proposed merger (which contains important information about fees,
expenses, and risk considerations) after a registration statement has
been filed with the SEC and becomes effective, please call
1-800-225-1581. The prospectus/proxy statement will also be available
without charge on the SEC's Web site (www.sec.gov). Read the
prospectus/proxy statement carefully before making any investment
decisions.