November 5, 2003

Sacramento, CA – Christopher J. Ailman, Chief Investment Officer, California State Teachers’ Retirement System, issued the following statement regarding the discussion held today by the Teachers’ Retirement Board about CalSTRS’ relationship with Putnam Investments:

“The Board expressed its deep concern regarding recent events at Putnam Investments and directed investment staff and the Board’s investment consultant to expeditiously determine whether CalSTRS’ existing relationship with Putnam is in the best interests of the System.”

Putnam Investments manages a portfolio valued at $315 million in domestic large cap growth equities within CalSTRS’ $42.6 billion domestic equity portfolio.

The CalSTRS investment portfolio consultant is Pension Consulting Alliance of Encino, California.

CalSTRS, with a $103 billion portfolio, is the nation’s third largest public pension fund. It administers retirement, disability and survivor benefits for California’s public school educators in grades kindergarten through community college, serving more than 715,000 members and benefit recipients.