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Legal and Regulatory Settlement Update - Legacy Columbia Funds

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June 2007


In April 2007, the SEC approved the Columbia mutual funds distribution plan. Under the methodology set forth in the distribution plan, eligible investors may be receiving distributions. The calculations of individual allocations were completed by Rust Consulting and distribution checks will be mailed to eligible mutual fund shareholders beginning on June 28. The mailing process is expected to take place over several months. Only investors owning one of the legacy Columbia mutual funds listed below, during the period from 1999 to 2003 (note that the time period for the Columbia Young Investor Fund extends back to late 1998), may be eligible to receive a distribution:


  Affected Fund

Current State

 1784 International Equity Merged into Galaxy International Equity Fund and then into Columbia International Stock Fund
 1784 Growth Merged into Columbia Mid Cap Growth Fund
 Columbia Acorn International Fund Columbia Acorn International
 Columbia Acorn International Select Fund Columbia Acorn International Select
 Columbia Global Equity Fund Renamed Columbia World Equity Fund
 Columbia Growth Stock Fund Merged into Columbia Large Cap Growth Fund
 Columbia International Equity Fund Merged into Columbia International Stock Fund
 Columbia International Stock Fund Columbia International Stock Fund
 Columbia Newport Greater China Fund Renamed Columbia Greater China Fund
 Columbia Newport Japan Opps Fund Fund Liquidated
 Columbia Newport Tiger Fund Merged into Columbia International Stock Fund
 Columbia Small Cap Value Fund Renamed Columbia Small Cap Value Fund I
 Columbia Small Company Equity Fund Merged into Columbia Small Cap Growth Fund II
 Columbia Young Investor Fund Merged into Columbia Strategic Investor Fund
 Liberty Growth Stock Fund Renamed Columbia Growth Stock Fund and merged into Columbia Large Cap Growth Fund
 Liberty Newport International Equity Fund Merged into Columbia International Stock Fund
 Stein Roe Capital Opportunities Fund Merged into Columbia Mid Cap Growth Fund
 Stein Roe International Fund Merged into Columbia International Stock Fund
 Wanger Foreign Forty Renamed Wanger International Select
 Wanger International Small Cap Fund Wanger International Small Cap


The notice of the SEC’s approval of the Columbia Distribution Plan and the commencement of distributions is available through the link: http://www.sec.gov/litigation/admin/2007/34-55922.pdf

Next Steps

The SEC has approved the Columbia plan. The final plan is available at www.columbiafairfund.com. Individual allocations are being calculated by Rust Consulting and distributions are expected to commence in the near term. Rust Consulting was hired by the IDC to perform the calculations, allocate the settlement amounts and distribute them to eligible mutual fund shareholders, consistent with the terms of the SEC settlement and the distribution plan. It is anticipated that the Nations plan will follow the same process at a later time.

Questions or concerns about the plan should be directed to http://www.columbiafairfund.com or to Rust Consulting at: 800.410.5361.

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© 2010 Columbia Management Investment Advisers, LLC. All rights reserved.

On April 30, 2010, Ameriprise Financial, Inc., the parent company of RiverSource Investments, LLC, acquired the long-term asset management business of Columbia Management Group, LLC, including certain of its affiliates, which were, prior to this acquisition, part of Bank of America. In connection with the acquisition of the long-term assets, certain clients of Columbia Management Advisors, LLC (including the Columbia Funds) have a new investment adviser, RiverSource Investments, LLC, which is now known as Columbia Management Investment Advisers, LLC. On the same date, Ameriprise Financial also acquired Columbia Wanger Asset Management, LLC (CWAM). CWAM will continue as the investment adviser for Columbia Acorn and Wanger Funds and no changes are anticipated in the existing investment management team. For those clients that use the services of a subadviser, those arrangements are continuing unless notified otherwise. RiverSource Fund Distributors, Inc., now known as Columbia Management Investment Distributors, Inc., member FINRA, will act as the principal distributor of the Columbia, Wanger, Columbia Acorn, RiverSource, Seligman and Threadneedle branded funds. RiverSource Service Corporation, now known as Columbia Management Investment Services Corp., is the transfer agent for the Funds.

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