COLUMBIA MANAGEMENT FUNDS REORGANIZATION
DRAFT Q & A: FUND REALIGNMENT PROXY STATEMENT
TALKING POINTS FOR USE WITH FINANCIAL PROFESSIONALS
AND FUND SHAREHOLDERS ONLY
FOR INTERNAL WIM USE ONLY - NOT FOR EXTERNAL DISTRIBUTION
Q1. WHAT ARE THE PROPOSED TRANSACTIONS?
<Table>
<Caption>
TARGET FUND ACQUIRING FUND MERGER DATE*
- --------------------------------------------- ------------------------------------------ --------------------
Columbia Common Stock Fund Columbia Large Cap Core Fund 2/26/05
Columbia Growth Fund Columbia Large Cap Growth Fund 2/26/05
Columbia International Equity Fund Columbia International Stock Fund 2/26/05
Columbia Corporate Bond Fund Columbia Quality Plus Bond Fund 2/26/05
Columbia Contrarian Income Fund
</Table>
* Pending shareholder approval.
Q2. WHY ARE YOU REORGANIZING YOUR MUTUAL FUNDS?
A2. Our goal at Columbia Management is to provide shareholders with investment
options that capitalize on the strengths and resources of our individual
investment advisors.
The proposed transactions are designed to simplify and strengthen our
product universe. By reducing product overlap, we expect to help manage
the costs of our new investment management organization. We also believe
these transactions align our best investment talent with additional assets
to manage, and may help to improve the expense ratios charged to
shareholders, which in turn could help improve returns to shareholders.
Q3. WHEN WILL THIS REORGANIZATION TAKE EFFECT?
A3. The proposed transactions have been approved by the target funds' and
acquiring funds' Trustees and must now be approved by the shareholders of
the target funds. All of the target funds were closed to new investments
at the close of business on November 10, 2004. Columbia Management expects
that the transactions, if approved, will be completed by the end of
February 2005.
Q4. WHEN WILL THE PROXY STATEMENTS BE MAILED?
A4. The proxy statements will begin mailing during the week of January 10,
2005.
Q5. WHAT NUMBER CAN I CALL TO VOTE?
A5. You can call toll-free 1-866-270-3134 for questions and also to vote via a
live representative. Registered shareholders can also call 866-241-6192 to
vote via touch-tone phone. Additionally, there are three other ways to
vote, by mail, fax and via the internet. The toll-free number to vote via
fax is 888-796-9932, and the address to vote via the internet is
https://vote.proxy-direct.com.
Q6. CAN MY FINANCIAL ADVISOR VOTE MY SHARES?
A6. No. Shares must be voted by using the proxy card that was mailed to the
shareholder, via telephone or fax or the internet using the unique control
number printed on the proxy card. See Q5 directly above for ways to vote.
FOR INTERNAL WIM USE ONLY - NOT FOR EXTERNAL DISTRIBUTION
Q7. ARE YOU USING A PROXY SOLICITOR?
A7. Yes. We are using a firm called Alamo Direct who will call clients on our
behalf to remind them to vote. Shareholders who have sent in their
completed proxies will not be called.
Q8. WHY ARE YOU USING A PROXY SOLICITOR?
A8. A proxy solicitor will assist us in ensuring that as many shareholders as
possible participate in the vote.
Q9. AREN'T YOU REALLY DOING THESE MERGERS TO HIDE POOR PERFORMANCE?
A9. Performance was not the driving factor for our proposals, though we expect
that these actions could help improve performance. These actions are
intended to take advantage of our investment talent, and to simplify and
strengthen our mutual fund product universe. The objective of
consolidating additional assets under fewer managers is also designed to
reduce expenses for shareholders. Thus, we believe this is in the
long-term interest of our shareholders.
Q10. WHAT IF SHAREHOLDERS DO NOT APPROVE THE PROPOSED MERGERS?
A10. While we do not expect that to occur, in the event that we do not receive
shareholder approval, the Board of Trustees of the target fund will
consider action to take. Such action could include liquidation of your
fund.
Q11. WHAT EFFECT WILL THE MERGER HAVE ON MY ACCOUNT BALANCE AND THE VALUE OF MY
ACCOUNT?
A11. The value of your account will not change as a result of the merger.
However, the number of shares you receive of the acquiring fund may be
different from the number you owned of the target fund, depending on the
net asset value (NAV) per share of the acquiring fund.
Q12. WHEN WILL THE MERGER RATIO BE AVAILABLE?
A12. The merger ratio will be available on the Monday following the merger. It
will be posted on the Columbia Funds website (www.columbiafunds.com) and
will be communicated to the back offices of our distribution partners as
well.
Q13. WHAT WILL HAPPEN TO THE SECURITIES HELD IN THE TARGET FUNDS?
A13. They will become part of the acquiring fund's portfolio.
Q14. WHO WILL MANAGE MY FUND -- THE SAME PERSON/TEAM OR A NEW ONE?
A14. Currently, the transactions involving the Columbia International Equity
and Columbia International Stock Funds and the Columbia Growth and
Columbia Large Cap Growth have the same management teams respectively.
These teams will continue to manage the combined assets of the respective
funds after they merge. In the other cases, the manager(s) of the
acquiring fund will assume responsibility for managing the fund.
FOR INTERNAL WIM USE ONLY - NOT FOR EXTERNAL DISTRIBUTION
Q15. WILL THE CUSIP NUMBER/QUOTRON SYMBOL FOR MY FUND CHANGE?
A15. In all cases, the CUSIP number/QUOTRON symbol of the target funds will
change to that of the acquiring fund. If a new number or symbol is
required, then it will be communicated to brokers and shareholders at a
time closer to the merger.
Q16. WILL I RECEIVE THE SAME CLASS OF SHARES IN THE COMBINED FUND AS PART OF
THE MERGER?
A16. The majority of the fund mergers will be placed in the same class in the
acquiring fund as maintained in the target fund. There may be some
instances where the acquiring fund does not offer the same class and in
this case, a similar class of the fund will be utilized, as described in
the fund proxy statements. For example, Columbia International Equity Fund
shareholders invested in the T share class will be placed in the A hare
class of the International Stock Fund.
Q17. WHAT ARE THE TAX IMPLICATIONS FOR SHAREHOLDERS?
A17. We expect each merger to be a non-taxable transaction, and shareholders of
the funds will not realize any gains or losses as a result of the merger.
However, these transactions could trigger the funds to pay out dividend
income and capital gains prior to merging, which may cause a taxable
distribution for shareholders. We recommend that you review your situation
with a tax advisor.
Q18. WILL THERE BE AN INCOME/CAPITAL GAIN DISTRIBUTION?
A18. There may be a distribution of income and capital gain for the funds as
required by IRS regulations. If there is a distribution, then it will be
issued prior to the merger of the respective fund. We will also review
distributions for the acquiring funds prior to the merger to conform to
any IRS requirements.
Q19. CAN I EXCHANGE MY SHARES INTO (OR PURCHASE NEW SHARES OF) THE ACQUIRING
FUND NOW RATHER THAN WAIT FOR THE MERGER?
A19. In many cases, yes. You may exchange/purchase shares before the merger if
the fund you currently own is from the same fund family and if the same
share class exists in the acquiring fund.
NOTE: Not all classes of the acquiring funds will be available prior to
the merger. An exchange is treated as a sale and is considered a taxable
event, unlike the merger, which is not a taxable event for shareholders.
Q20. CAN I EXCHANGE MY SHARES INTO ANOTHER COLUMBIA FUNDS FUND RATHER THAN
HAVING THEM MERGED INTO THE PROPOSED FUND?
A20. Yes. Columbia Funds has a number of mutual funds available that may be
suitable for your investment needs. You may exchange to the same share
class as the fund in which you are currently invested.
NOTE: An exchange is treated as a sale and is considered a taxable event.
We recommend that you review your situation with an advisor.
FOR INTERNAL WIM USE ONLY - NOT FOR EXTERNAL DISTRIBUTION
Q21. AM I BETTER OFF EXCHANGING NOW OR WAITING FOR THE MERGER?
A21. This is a personal decision and the outcomes of each will have different
consequences for you. You have two options:
1. If you stay in the fund until the merger, the transaction is expected
to be a nontaxable event, but you may receive an income/capital gain
distribution;
2. If you exchange or sell now, the transaction will be a taxable event.
NOTE: Not all classes of the acquiring funds will be available for
exchanges prior to the merger. We recommend that you review your situation
with a tax advisor.
Q22. IF I EXCHANGE NOW, WILL I BE CHARGED A CDSC ON THIS TRANSACTION?
A22. All shares exchanged will maintain the appropriate aging schedules and a
Contingent Deferred Sales Charge (CDSC) may apply on future redemptions,
as described in the respective fund's prospectus.
Q23. WHEN I PURCHASED MY COLUMBIA FUND IT WAS CONSIDERED NO-LOAD, NOW THAT FUND
IS BEING MERGED INTO A DIFFERENT COLUMBIA FUND. DOES THIS MEAN I WILL NOW
HAVE TO PAY A LOAD FOR THE NEW (ACQUIRING) FUND?
A23. No. You will be invested into a no-load share class (generally class Z
shares) of the acquiring fund. You will also be able to continue to
purchase shares of the fund, or other funds within the fund family, on a
no-load basis.
Q24. INSTEAD OF HAVING MY FUND MERGE INTO THE NEW FUND, I WOULD LIKE TO REDEEM
MY SHARES. WILL I BE CHARGED ANY APPLICABLE CDSC OR WILL IT BE WAIVED?
A24. You will be charged any applicable CDSC if you liquidate your shares.
Q25. WILL THERE BE ANY CHANGES IN THE SERVICES ON MY EXISTING ACCOUNT BECAUSE
OF THE PROPOSED MERGERS?
A25. There are no plans for changes in services at this time.
Q26. WHEN WILL I RECEIVE MY NEW ACCOUNT NUMBER?
A26. At the completion of the merger, you will receive a statement confirming
the merger transaction, your new account number, the value of the merger
transaction, and the number of shares acquired in the merger. However, if
your statement is produced by the Columbia Transfer Agent's group
retirement plans system, TRAC, then it will not reflect a new account
number.
Q27. I HAVE AN AUTOMATIC INVESTMENT (AIP) AND / OR SYSTEMATIC WITHDRAWAL PLAN
(SWP) WITH ONE OF THE TARGET FUNDS. WILL THAT TRANSFER TO THE ACQUIRING
FUND?
A27. Yes. Once the merger is completed, unless you direct Columbia Funds
Services, Inc. to do otherwise, your automatic investment plan (AIP) and /
or systematic withdrawal plan (SWP) will continue with the acquiring fund.
Q28. I AM CURRENTLY RECEIVING AMOUNTS EACH YEAR FROM MY IRA ACCOUNT TO SATISFY
MY REQUIRED MINIMUM DISTRIBUTION (RMD). WILL THIS AMOUNT AND / OR FEATURE
BE AFFECTED BY THE MERGER OF MY FUND(S)?
FOR INTERNAL WIM USE ONLY - NOT FOR EXTERNAL DISTRIBUTION
A28. No, your RMD calculation will be carried over to the new account and you
will not experience any interruption of payment.
Q29. WHAT WILL HAPPEN IF I ALREADY OWN THE ACQUIRING FUND?
A29. If you currently own the acquiring fund and your registration for both
funds is the same, then we will combine your shares.
Q30. DO YOU PLAN ANY FURTHER FUND CONSOLIDATIONS?
A30. This is the first step in a plan to leverage our assets and to realign the
most talented people in Columbia Management. We are committed to actively
managing our products, and we will continue to evaluate our mutual fund
product lineup and make changes when necessary to strengthen our product
universe to offer the best possible investments for shareholders. Until
formal proposals are made to the appropriate Boards of Trustees about any
future consolidations, it would be premature for us to comment.
Q31. WHAT IS COLUMBIA MANAGEMENT?
A31. Columbia Management is the primary investment management division of Bank
of America Corporation and is among the world's 30 largest asset managers
with over $300 billion in assets under management as of September 30,
2004. Columbia Management manages equity, fixed income and cash
investments for clients ranging from mutual fund shareholders and
high-net-worth individuals to state pension funds, corporations,
foundations and other institutional investors. Our ability to serve a wide
variety of investors, the strong performance of our investment strategies
and the sharp focus we maintain on the needs of our clients has made
Columbia Management a formidable force within the asset management arena.
Q31. WHO CAN I CONTACT FOR MORE INFORMATION?
A31. Sales Support: Financial Institutions
(800) 215-5005
OR
Independent Advisors
(800) 446-4008
OR
Retirement Investments
(877) 894-3592
Columbia shareholders: Columbia Shareholder Services
(800) 345-6611
Media Inquiries: Charles Salmans, Corporate Communications
(212) 893-7280
FOR INTERNAL WIM USE ONLY - NOT FOR EXTERNAL DISTRIBUTION
COLUMBIA FUNDS - OUTBOUND PHONE SCRIPT
Hello, my name is ________________ and I am calling to notify you of important
information regarding your Columbia Funds account. This is not a sales call. May
I please speak with______________.
Thank you for taking my call. I wanted to let you know that (the Columbia Common
Stock Fund, the Columbia Growth Fund, the Columbia Contrarian Income Fund) is
planning a special meeting on February 16th for shareholders to vote on an
important issue affecting the Fund. Because we currently do not have a record of
your vote, we wanted to see if you would be interested in voting over the phone
right now. (Wait for affirmative answer.)
Before I continue, I'd like you to know that this call is being recorded to
ensure that we accurately represent your wishes.
May I please have your name, street address and the last four digits of your
social security number?
Would you like to vote in FAVOR as the Board of Trustees recommends, or would
you like me to read the proposal to you? (Respond appropriately)
Thank you. Your vote has been recorded as___________. Is that correct? In the
next three days, a confirmation of your vote will be mailed to you.
1/21/05