Columbia money market mutual funds continue to participate in U.S. Treasury Temporary Guarantee Program

The following Columbia money market mutual funds continue to participate in the U.S. Treasury Temporary Guarantee Program for money market mutual funds that was recently extended by the U.S. Treasury as described below:

Prime Funds

Columbia Cash Reserves

Columbia Money Market Reserves

Columbia Daily Cash Reserves

Columbia Money Market Fund, Variable Series

Municipal/Tax-Exempt Funds

Columbia Municipal Reserves

Columbia Tax-Exempt Reserves

Columbia California Tax-Exempt Reserves

Columbia New York Tax-Exempt Reserves

Columbia Connecticut Municipal Reserves

Columbia Massachusetts Municipal Reserves

The program is a temporary program that is in effect through April 30, 2009 (there is the possibility of future extension by the Treasury for one period up to September 18, 2009) and is voluntary on a fund-by-fund basis. Eligible money market mutual funds pay a fee to the Treasury to participate in the program. The program provides for a guarantee to receive $1.00 per share in the event that a participating fund no longer has a $1.00 per share net asset value and liquidates. The guarantee only applies to investors in the fund as of the close of business on September 19, 2008 and is based on the number of shares held by an investor on that date. Any increase in the number of shares held in an account after the close of business on September 19, 2008 will not be guaranteed. If the number of shares held in an account fluctuates over the period, investors will be covered for either the number of shares held as of the close of business on September 19, 2008 or the current amount, whichever is less. If a customer closes his/her account with a fund or broker-dealer, any future investment in the fund will not be guaranteed. The guarantee payment would be equal to any shortfall between the amount received by an investor in a liquidation and $1.00 per share. The program will not be subject to any per account limit. More details on the Treasury Guarantee Program are available at: http://www.ustreas.gov/press/releases/hp1163.htm and http://www.treas.gov/press/releases/hp1290.htm .

Columbia Management’s money market mutual funds have always transacted at $1.00 per share and continue to do so. Columbia money market mutual funds have never broken the $1.00 stated price; however, there is no guarantee that such price stability will be achieved in the future.

An investment in money market mutual funds is not insured or guaranteed Bank of America, N.A. or any of its affiliates or by the Federal Deposit Insurance Corporation or any other government agency. Although money market mutual funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in money market mutual funds. Please see the prospectuses for a complete discussion of the risks of investing in money market mutual funds.

Please read and consider the investment objectives, risks, charges and expenses for any fund carefully before investing. For a prospectus which contains this and other important information about the fund, contact your Columbia Management representative or financial advisor, or go to www.columbiamanagement.com.

Columbia Management Group, LLC (“Columbia Management”) is the investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and products for institutional and individual investors. Columbia Funds are distributed by Columbia Management Distributors, Inc., member FINRA and SIPC. Columbia Management Distributors, Inc. is part of Columbia Management and an affiliate of Bank of America Corporation.