BOSTON--(BUSINESS WIRE)--Putnam Municipal Opportunities Trust (NYSE: PMO) and Putnam Managed Municipal Income Trust (NYSE: PMM) (the “Funds”) today announced partial at-par redemptions of their respective preferred shares. This redemption announcement follows the June 23, 2008 press release outlining approval by The Putnam Funds’ Board of Trustees (the “Trustees”) of a plan to use tender option bonds (“TOBs”) to refinance a portion of these Funds’ outstanding preferred shares.

Putnam Municipal Opportunities Trust and Putnam Managed Municipal Income Trust will redeem 15% and 10%, respectively, of their outstanding preferred shares. The redemption price will be equal to the liquidation preference per share of each series of preferred shares, plus accumulated but unpaid dividends as of the applicable redemption date (as noted in the tables below). This refinancing is expected to lower the relative costs of leverage for the Funds over time while also providing liquidity at par for the holders of at least some of the Funds’ preferred shares.

TOBs (commonly referred to residual interest bonds or inverse floaters) are typically structured by removing bonds of high credit quality and liquidity, as well as bond blocks of sufficient size, in a fund and delivering them into special purpose trusts sponsored by investment banks. Each such trust then issues two kinds of securities. The first issuance is of floating rate certificates, in an amount up to the par amount or market value of the deposited bonds. These pay short-term interest rates to short-term investors, such as money market funds. Their interest rates typically reset weekly (either through a remarketing or by some spread over a reference index), and the certificate holders typically have the option to tender their certificates to the issuing trust for redemption at par at each reset date. This first issuance also creates cash that, in the current instance, will be used by each Fund to redeem some of its outstanding preferred shares.

The second issuance is of residual interest bonds (or inverse floaters) that are bought back by the depositing fund. The effective interest earned by the residual bond is the income from the deposited bonds, less the short-term interest paid to the floating rate certificate holders and other program expenses (such as the cost associated with assuring liquidity to the floating rate certificate holders). The net economic effect for a fund, the holder of the residual interest bond, is financial leverage.

After evaluating the use of TOBs from both common and preferred shareholder perspectives, and in consideration of the limitations on holdings of bonds suitable for TOB creation, Putnam has advised the Trustees that TOBs currently provide an effective solution as an alternative financing source for 15% of Putnam Municipal Opportunities Trust’s outstanding preferred shares and for 10% of Putnam Managed Municipal Income Trust’s outstanding preferred shares.

Subject to satisfying the notice and other requirements that apply to partial redemptions of preferred shares, proportionate amounts of each series of the Funds’ preferred shares are scheduled to be redeemed over the coming weeks. The tables below list the total number of shares and par amounts for the shares to be redeemed for each series of preferred shares, as well as the scheduled redemption dates.

Putnam Municipal Opportunities Trust is redeeming $59.1 million of its $394 million of currently outstanding preferred shares:

Series		CUSIP Number		Liquidation Preference per Share		Total Shares Redeemed		Total Amount Redeemed		Redemption Date
A		746922202		$25,000		678		$16,950,000		August 18, 2008
B		746922301		$25,000		603		$15,075,000		August 19, 2008
C		746922400		$25,000		1083		$27,075,000		August 22, 2008

Putnam Managed Municipal Income Trust is redeeming $22 million of its $220 million of currently outstanding preferred shares:

Series		CUSIP Number		Liquidation Preference per Share		Total Shares Redeemed		Total Amount Redeemed		Redemption Date
A		746823202		$100,000		55		$5,500,000		September 3, 2008
B		746823301		$100,000		55		$5,500,000		September 17, 2008
C		746823400		$50,000		220		$11,000,000		August 20, 2008

All of the Funds’ outstanding preferred shares are held of record by the Depository Trust Company (“DTC”) on the Funds’ books, and DTC holds these shares on behalf of a number of DTC-participant broker-dealers, largely for client accounts of the brokers’ customers. As required by each Fund’s bylaws and in accordance with industry practice, the partial redemptions will be accomplished through DTC determining by lot the allocation of redemptions among the DTC-participant broker-dealers. Each participant broker-dealer will then implement an additional lottery process to determine the allocation of preferred share redemptions among its customers who are the underlying beneficial owners of preferred shares. Allocation procedures used by different broker-dealers may vary. As a result of this process, and furthermore because fractional preferred shares cannot be issued or redeemed, preferred shares will not be redeemed on a strictly pro rata basis.

The Funds will continue to rely on the remaining preferred shares for a portion of their leverage exposure. While Putnam continues to evaluate other possible refinancing solutions that would address the needs of both common and preferred shareholders, it is not certain when, or if, the Funds’ remaining preferred shares will be redeemed.

An updated Questions and Answers commentary that outlines Putnam’s and the Trustees’ perspectives on these matters may be found on the closed-end fund portion of Putnam’s web site as follows: http://www.putnam.com/individual and then the “Closed-end funds” link under “How may we help you?”. The Q&A document is posted along with an updated exhibit, showing the results of the Funds’ preferred share remarketings over a recent period of time (July 1, 2007 – June 30, 2008). Additional updates on remarketing results may appear from time to time on Putnam’s web site.

About Putnam

Founded in 1937, Putnam Investments is one of the nation’s oldest and largest money management firms. As of June 30, 2008, Putnam managed $166 billion in assets, of which $97 billion is for mutual fund investors and $69 billion is for institutional accounts. Putnam has offices in Boston, London, Frankfurt, Rome, Copenhagen, Sydney, Tokyo, and Singapore. For more information, go to www.putnam.com.

Putnam Investments
Shareholders, 1-800-225-1581
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Sinead Martin, 617-760-8515