Christopher Donahue, president and CEO of Federated Investors, has added another fund to his company's product line. The fund will be managed by Federated vets Lawrence Auriana and Hans Utsch. The Federated Kaufmann Large Cap Fund will fill the vacant spot in the company's Growth product line.

Federated Investors, Inc. (NYSE: FII - News), one of the nation's largest investment managers, today launched Federated Kaufmann Large Cap Fund, an equity fund that seeks to provide capital appreciation by investing in the securities of large companies in the United States and abroad. The fund is managed by Lawrence E. Auriana and Hans P. Utsch, who have guided the Federated Kaufmann team of six managers and seven analysts for more than 20 years.

For the Federated Kaufmann Large Cap Fund, Auriana and Utsch will focus their bottom-up investment process on companies with prospects for sustainable growth. The new fund invests in large capitalization stocks and has the Russell 1000 Growth Index as its primary benchmark. The fund may invest up to 30 percent of its assets in foreign securities.

"With their world-class reputation as growth managers in the small- and mid-cap arena, Hans and Larry are now set to apply their 85 years of combined investment experience and wisdom to large-cap growth stocks," said John B. Fisher, president and CEO of Federated's advisory companies. "As a center of excellence in Federated's line of equity products, the Federated Kaufmann franchise now offers all three growth categories: small-cap growth, mid-cap growth and large-cap growth."

Federated entered into new long-term employment agreements with Auriana and Utsch that run through 2014. With the growth of Federated Kaufmann Fund and Federated Kaufmann Small Cap Fund, Auriana, Utsch and the Kaufmann team oversee $13 billion in assets.

"We believe the time is right for a new large-cap Kaufmann product and look forward to providing opportunities for solid investment results for our shareholders," Auriana said. "Hans and I, along with our team, are pleased to continue our relationship with Federated for many years to come."

Founded in 1986, the flagship Federated Kaufmann Fund was the number one ranked mid-cap growth fund in its Lipper category for the 20-year period ended Dec. 31, 2007 (K shares) and has an overall four-star rating from Morningstar out of 917 funds in the mid-cap growth category as of Dec. 31, 2007 (K shares). According to Lipper, Federated Kaufmann Fund (K shares) ranked number one out of 34 funds in its mid-cap growth category for the 20 years ended Dec. 31, 2007; ranked three out of 53 funds for the 15-year period; 15 out of 170 funds for the 10-year period; 36 out of 404 for the 5-year period; 70 of 487 for the 3-year period; and 143 of 601 for the one-year period ending Dec. 31, 2007.

Federated Kaufmann Small Cap Fund (A shares) was added to the franchise in 2002 and has an overall four-star rating from Morningstar out of 776 funds in the small growth category as of Dec. 31, 2007. According to Lipper, Federated Kaufmann Small Cap Fund (A shares) ranked number two out of 394 funds for the 5-year period in its small-cap growth category; 101 out of 477 funds for the 3-year period; and 249 of 591 funds for the one-year period ended Dec. 31, 2007.

Morningstar ratings are based on risk-adjusted total return. The overall rating is derived from a weighted average of the fund's three-, five- and ten- year average annual returns, as applicable.

Federated will market Federated Kaufmann Large Cap Fund in A, C, IS and K share classes through brokers/dealers, bank broker/dealers and other financial intermediaries. A minimum investment of $1,500 is required for A and C share classes with subsequent investments of $100. A minimum investment of $25,000 is required for IS shares. For A, C and K shares there is no minimum investment for retirement plans; for IRA plans there is a $250 minimum initial investment and a $100 subsequent investment.

Federated Investors, Inc. is one of the largest investment management firms in the United States, managing approximately $276 billion in assets as of Sept. 30, 2007. With 150 mutual funds and various separately managed accounts, Federated provides comprehensive investment management worldwide to more than 5,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.

Certain statements in this press release, such as those related to the successful launching, management, growth and results of the new Federated Kaufmann Large Cap Fund, constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks are the ability to successfully sell and manage the new fund or to achieve solid investment results, as well as the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. Many of these factors may be impacted as a result of the ongoing threat of terrorism. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.

For more complete information, visit http://FederatedInvestors.com or contact your investment professional for prospectuses. You should consider the fund's investment objectives, risks, charges and expenses carefully before you invest. Information about these and other important subjects is in the fund's prospectus, which you should read carefully before investing.

Past performance is no guarantee of future results.

Mutual funds are subject to risks and fluctuate in value.

Small company stocks may be less liquid and subject to greater price volatility than large-cap stocks.

Diversification does not assure a profit nor protect against loss.

International investing involves special risks including currency risk, increased volatility of foreign securities, political risks, and differences in auditing and other financial standards.

The Russell 1000 Growth Index measures the performance of those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth companies.

For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating(TM) based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Ratings for Federated Kaufmann Fund are for Class K Shares; other classes may have different performance characteristics. For the 3-year period ended 12/31/07, the Federated Kaufmann Fund (KAUFX) received 4 stars and was rated among 917 funds. For the 5-year period ended 12/31/07, the Federated Kaufmann Fund (KAUFX) received 5 stars and was rated among 830 funds. For the 10-year period ended 12/31/07, the Federated Kaufmann Fund received 4 stars and was rated among 493 funds. Ratings for Federated Kaufmann Small Cap Fund are for Class A Shares; other classes may have different performance characteristics. For the 3-year period ended 12/31/07, the Federated Kaufmann Small Cap Fund (FKASX) received 3 stars and was rated among 776 funds. For the 5-year period ended 12/31/07, the Federated Kaufmann Small Cap Fund received 5 stars and was rated among 708 funds. Past performance is no guarantee of future results.

Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings over the past three years. If the fund is less than three years old, the category is based on the life of the fund. �2008 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Lipper rankings do not consider sales charges.

Federated separately managed accounts are made available through Federated Investment Counseling and MDT Advisers, both registered investment advisors.

Federated Securities Corp., Distributor

Edited by: Erin Kello

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