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COLUMBIA MANAGEMENT.                          Columbia Management Services, Inc.
PO Box 8081
Boston, MA 02266-8081

April 25, 2006

Dear Columbia Fund Shareholder,

At Columbia Management, we periodically evaluate our mutual fund offerings as
part of a broader effort to best address the needs of our shareholders. As a
result of this review, management has proposed the mergers of the funds listed
in the table below. These mergers have been approved by the funds' Board of
Trustees and are subject to shareholder approval at a special meeting that is
scheduled for September 6, 2006. A supplement to your fund's prospectus
announcing the proposed merger is enclosed.

PROPOSED MERGERS



TARGET FUND                                      ACQUIRING FUND
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Columbia Small Company Equity Fund               Columbia Small Cap Growth Fund II
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Columbia Intermediate Core Bond Fund*            Columbia Core Bond Fund
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Columbia Utilities Fund                          Columbia Dividend Income Fund
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Columbia Marsico Mid Cap Growth Fund             Columbia Mid Cap Growth Fund
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Columbia Tax-Exempt Insured Fund                 Columbia Tax-Exempt Fund*
Columbia Municipal Income Fund
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Columbia Tax-Managed Growth Fund*                Columbia Large Cap Growth Fund*
Columbia Growth Stock Fund
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*    Funds marked with an asterisk were involved in a merger in 2005. In
     addition, in 2005, Nations Funds were re-branded Columbia Funds.

In approving the mergers, the Trustees of your fund considered, among other
things, the extent of the similarity of the funds' investment strategies and
objectives, the overlap, if any, in the portfolio management teams and any
opportunities for expense savings.

As a shareholder currently invested in one of the target funds, you can expect
to receive in July a prospectus/proxy statement for the shareholder meeting. We
urge you to review that document carefully for details of the proposed merger,
and complete and return your proxy ballot. The merger is expected to be tax-free
for federal income tax purposes.

If approved by shareholders, the mergers are tentatively scheduled for mid to
late September 2006; all target funds will remain open for additional purchases
through the close of business on the day of the merger.

We thank you for investing in Columbia Funds and look forward to serving your
investment needs for many years to come. If you have any questions, please
contact your financial advisor or a customer service representative at
800.345.6611.

Sincerely,

/s/ Christopher L. Wilson
Christopher L. Wilson
Head of Mutual Funds, Columbia Management

PLEASE CONSIDER THE OBJECTIVES, RISKS, CHARGES AND EXPENSES OF ANY COLUMBIA FUND
CAREFULLY BEFORE INVESTING. THE FOREGOING IS NOT AN OFFER TO SELL, NOR A
SOLICITATION OF AN OFFER TO BUY, SHARES OF ANY COLUMBIA FUND, NOR IS IT A
SOLICITATION OF ANY PROXY. FOR MORE INFORMATION REGARDING ANY COLUMBIA FUND, OR
TO RECEIVE A FREE COPY OF A PROSPECTUS/PROXY STATEMENT RELATING TO A PROPOSED
MERGER ONCE A REGISTRATION STATEMENT RELATING TO THE PROPOSED MERGER HAS BEEN
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND BECOME EFFECTIVE, PLEASE
CALL 1-800-345-6611 OR VISIT THE FUNDS' WEBSITE AT WWW.COLUMBIAFUNDS.COM. THE
PROSPECTUS/PROXY STATEMENT (WHEN AVAILABLE) WILL CONTAIN IMPORTANT INFORMATION
ABOUT FEES, EXPENSES AND RISK CONSIDERATIONS. THE PROSPECTUS/PROXY STATEMENT
WILL ALSO BE AVAILABLE FOR FREE ON THE SECURITIES AND EXCHANGE COMMISSION'S
WEBSITE (WWW.SEC.GOV). PLEASE READ THE PROSPECTUS/PROXY STATEMENT CAREFULLY
BEFORE MAKING ANY INVESTMENT DECISIONS.

Columbia Management is the primary investment management division of Bank of
America Corporation. Columbia Management entities furnish investment management
services and advise institutional and mutual fund portfolios. Columbia Funds and
CMG Funds are distributed by Columbia Management Distributors, Inc., member NASD
and SIPC. Columbia Management Distributors, Inc. is part of Columbia Management
and an affiliate of Bank of America Corporation.

                                                     SHC-22/110206-0406 06/25004

          
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  NOT FDIC        MAY LOSE VALUE
  INSURED    ------------------------
                NO BANK GUARANTEE
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