AGREEMENT AND PLAN OF REORGANIZATION





This Agreement and Plan of Reorganization (the "Agreement") is made as

of May 2, 2002 in Boston, Massachusetts, by and between Putnam Global

Growth Fund ("Acquiring Fund"), a Massachusetts business trust, Putnam

Investment Funds, a Massachusetts business trust, on behalf of its

Putnam Global Growth and Income Fund series ("Acquired Fund"), and

Putnam Investment Management, LLC, a Delaware limited liability company.



PLAN OF REORGANIZATION



(a) Acquired Fund will sell, assign, convey, transfer and deliver to

Acquiring Fund on the Exchange Date (as defined in Section 6) all of its

properties and assets existing at the Valuation Time (as defined in

Section 3(d)). In consideration therefor, Acquiring Fund shall, on the

Exchange Date, assume all of the liabilities of Acquired Fund existing

at the Valuation Time and deliver to Acquired Fund (i) a number of full

and fractional Class A shares of beneficial interest of Acquiring Fund

(the "Class A Merger Shares") having an aggregate net asset value equal

to the value of the assets of Acquired Fund attributable to Class A

shares of Acquired Fund transferred to Acquiring Fund on such date less

the value of the liabilities of Acquired Fund attributable to Class A

shares of Acquired Fund assumed by Acquiring Fund on such date; (ii) a

number of full and fractional Class B shares of beneficial interest of

Acquiring Fund (the "Class B Merger Shares") having an aggregate net

asset value equal to the value of the assets of Acquired Fund

attributable to Class B shares of Acquired Fund transferred to Acquiring

Fund on such date less the value of the liabilities of Acquired Fund

attributable to Class B shares of Acquired Fund assumed by Acquiring

Fund on such date; (iii) a number of full and fractional Class C shares

of beneficial interest of Acquiring Fund (the "Class C Merger Shares")

having an aggregate net asset value equal to the value of the assets of

Acquired Fund attributable to Class C shares of Acquired Fund

transferred to Acquiring Fund on such date less the value of the

liabilities of Acquired Fund attributable to Class C shares of Acquired

Fund assumed by Acquiring Fund on such date; and (iv) a number of full

and fractional Class M shares of beneficial interest of Acquiring Fund

(the "Class M Merger Shares") having an aggregate net asset value equal

to the value of the assets of Acquired Fund attributable to Class M

shares of Acquired Fund transferred to Acquiring Fund on such date less

the value of the liabilities of Acquired Fund attributable to Class M

shares of Acquired Fund assumed by Acquiring Fund on such date. The

Class A Merger Shares, the Class B Merger Shares, the Class C Merger

Shares and the Class M Merger Shares shall be referred to collectively

as the "Merger Shares." It is intended that the reorganization

described in this Plan shall be a reorganization within the meaning of

Section 368 of the Internal Revenue Code of 1986, as amended (the

"Code"). Prior to the Exchange Date, Acquired Fund will declare and pay

to its shareholders a dividend and/or other distribution in an amount

such that it will have distributed all of its net investment income and

capital gains as described in Section 8(l) hereof.



(b) Upon consummation of the transactions described in paragraph (a) of

this Agreement, Acquired Fund shall distribute in complete liquidation

to its Class A, Class B, Class C and Class M shareholders of record as

of the Exchange Date Class A, Class B, Class C and Class M Merger

Shares, each shareholder being entitled to receive that proportion of

such Class A, Class B, Class C or Class M Merger Shares that the number

of Class A, Class B, Class C or Class M shares of beneficial interest of

Acquired Fund held by such shareholder bears to the number of such Class

A, Class B, Class C or Class M shares of Acquired Fund outstanding on

such date. Certificates representing the Merger Shares will be issued

only if the shareholder so requests.





AGREEMENT



Acquiring Fund and Acquired Fund agree as follows:



1. Representations and warranties of Acquiring Fund. Acquiring Fund

represents and warrants to and agrees with Acquired Fund that:



(a) Acquiring Fund is a business trust duly established and validly

existing under the laws of The Commonwealth of Massachusetts, and has

power to own all of its properties and assets and to carry out its

obligations under this Agreement. Acquiring Fund is not required to

qualify as a foreign association in any jurisdiction. Acquiring Fund

has all necessary federal, state and local authorizations to carry on

its business as now being conducted and to carry out this Agreement.



(b) Acquiring Fund is registered under the Investment Company Act of

1940, as amended (the "1940 Act"), as an open-end management investment

company, and such registration has not been revoked or rescinded and is

in full force and effect.



(c) A statement of assets and liabilities, statement of operations,

statement of changes in net assets and schedule of investments

(indicating their market values) of Acquiring Fund for the fiscal year

ended October 31, 2001, such statements and schedule having been audited

by KPMG LLP, independent accountants, have been furnished to Acquired

Fund. Such statement of assets and liabilities and schedule of

investments fairly present the financial position of Acquiring Fund as

of the dates thereof and such statement of operations and changes in net

assets fairly reflect the results of its operations and changes in net

assets for the periods covered thereby in conformity with generally

accepted accounting principles.



(d) The prospectus and statement of additional information dated

February 28, 2002, previously furnished to Acquired Fund, and any

amendment or supplement thereto or any superseding prospectus or

statement of additional information in respect thereof in effect prior

to the Exchange Date, which will be furnished to Acquired Fund

(collectively, the "Acquiring Fund Prospectus") do not, as of the date

hereof, and will not, as of the Exchange Date, contain any untrue

statement of a material fact or omit to state a material fact required

to be stated therein or necessary to make the statements therein not

misleading; provided however, that Acquiring Fund makes no

representation or warranty as to any information in the Acquiring Fund

Prospectus that does not specifically relate to Acquiring Fund.



(e) There are no material legal, administrative or other proceedings

pending or, to the knowledge of Acquiring Fund, threatened against

Acquiring Fund which assert liability or may, if successfully prosecuted

to their conclusion, result in liability on the part of Acquiring Fund,

other than as have been disclosed in the Prospectus (as defined below).



(f) Acquiring Fund has no known liabilities of a material nature,

contingent or otherwise, other than those shown as belonging to it on

its statement of assets and liabilities as of October 31, 2001 and those

incurred in the ordinary course of Acquiring Fund's business as an

investment company since such date.

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