Stull, Stull & Brody Announces Class Action against Federated Funds.

Business Editors/Legal Writers

NEW YORK--(BUSINESS WIRE)--Dec. 22, 2003

Notice is hereby given that a class action lawsuit was filed on December 22, 2003, in the United States District Court for the Southern District of New York, on behalf of purchasers, redeemers and holders of shares of the Federated Family of Funds (the "Funds"), which are managed by Federated Investors, Inc. ("Federated") (NYSE: FII), between November 1, 1998 and September 3, 2003, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934, the Securities Act of 1933 and the Investment Advisers Act of 1940. The Funds, and the symbols for the respective Funds named below, are as follows:

Federated Adjustable Rate Securities Fund (Sym: FEUGX, FASSX)

Federated American Leaders Fund, Inc. (Sym: FALDX, FALBX, FALCX, FALFX)

Federated Bond Fund (Sym: FDBAX, FDBBX, FDBCX, ISHIX)

Federated California Municipal Income Fund (Sym: FCMIX, CMUIX)

Federated Capital Appreciation Fund (Sym: FEDEX, CPABX, CPACX, CPAKX)

Federated Capital Income Fund (Sym: CAPAX, CAPBX, CAPCX, CAPFX)

Federated Capital Preservation Fund

Federated Communications Technology Fund (Sym: FCTAX, FCTEX, FCTYX)

Federated Conservative Allocation Fund (Sym: FMCGX, FCGSX)

Federated Equity Income Fund, Inc. (Sym: LEIFX, LEIBX, LEICX, LFEIX)

Federated European Equity Fund (Sym: EURAX, EURBA, EURCX)

Federated Fund for U.S. Government Securities Fund (Sym: FUSGX, FUSBX, FUSCX)

Federated GNMA Trust (Sym: FGMAX, FGSSX)

Federated Global Equity Fund (Sym: FGEIX, FGEFX, FGEDX)

Federated Global Value Fund (Sym: WUFAX, WUFBX, WUFCX)

Federated Government Income Securities, Inc. (Sym: FGOAX, FGOBX, FGOCX, FGOIX)

Federated Government Ultrashort Duration Fund (Sym: FGUAX, FGUSX, FEUSX)

Federated Growth Allocation Fund (Sym: FMGPX, FMGSX)

Federated Growth Strategies Fund (Sym: FGSAX, FGSBX, FGSCX)

Federated High Income Bond Fund, Inc. (Sym: FHIIX, FHBBX, FHICX)

Federated High Yield Trust (Sym: FHYTX)

Federated Income Trust (Sym: FICMX, FITSX)

Federated Institutional High Yield Bond Fund (Sym: FIHBX)

Federated Intermediate Income Fund (Sym: FIIFX, INISX)

Federated Intermediate Municipal Trust (Sym: FIMTX, FIMYX)

Federated International Bond Fund (Sym: FTIIX, FTBBX, FTIBX)

Federated International Capital Appreciation Fund (Sym: IGFAX, IGFBX, IGFCX)

Federated International Equity Fund (Sym: FTITX, FIEBX, FIECX)

Federated International High Income Fund (Sym: IHIAX, IHIBX, IHICX)

Federated International Small Company Fund (Sym: ISCAX, ISCBX, ISCCX)

Federated International Value Fund (Sym: FGFAX, FGFBX, FGFCX)

Federated Kaufmann Fund (Sym: KAUAX, KAUBX, KAUCX, KAUFX)

Federated Kaufmann Small Cap Fund (Sym: FKASX, FKBSX, FKCSX)

Federated Large Cap Growth Fund (Sym: FLGAX, FLGBX, FLGCX)

Federated Limited Duration Fund (Sym: FTRLX, FTRDX)

Federated Limited Duration Government Fund, Inc. (Sym: FLDIX, FLDSX)

Federated Limited Term Fund (Sym: LTDFX, LTFSX)

Federated Limited Term Municipal Fund (Sym: LMINX, LMFSX)

Federated Management Income Portfolio (Sym: FMIPX, FIPSX)

Federated Market Opportunity Fund (Sym: FMAAX, FMBBX, FMRCX)

Federated Max-Cap Index Fund (Sym: MXCCX, FISPX, FMXKX, FMXSX)

Federated Michigan Intermediate Municipal Trust (Sym: MMIFX)

Federated Mid-Cap Index Fund (Sym: FMDCX)

Federated Mini-Cap Index Fund (Sym: MNCCX, FMCPX)

Federated Moderate Allocation Fund (Sym: FMMGX, FMMSX)

Federated Mortgage Fund (Sym: FGFIX, FGFSX)

Federated Muni and Stock Advantage Fund (Sym: FMUAX, FMNBX, FMUCX)

Federated Municipal Opportunities Fund, Inc. (Sym: FMOAX, FMOBX, FMNCX, FHTFX)

Federated Municipal Securities Fund, Inc. (Sym: LMSFX, LMSBX, LMSCX)

Federated Municipal Ultrashort Fund (Sym: FMUUX, FMUSX)

Federated New York Municipal Income Fund (Sym: NYIFX, NYIBX)

Federated North Carolina Municipal Income Fund (Sym: NCIFX)

Federated Ohio Municipal Income Fund (Sym: OMIFX)

Federated Pennsylvania Municipal Income Fund (Sym: PAMFX, FPABX)

Federated Short-Term Income Fund (Sym: FSTIX, FSISX)

Federated Short-Term Municipal Trust (Sym: FSHIX, FSHSX)

Federated Stock Trust (Sym: FSTKX)

Federated Stock and Bond Fund, Inc. (Sym: FSTBX, FSBBX, FSBCX, FSBKX)

Federated Strategic Income Fund (Sym: STIAX, SINBX, SINCX, STFSX)

Federated Total Return Bond Fund (Sym: TLRAX, TLRBX, TLRCX, FTRBX, FTRKX, FTRFX)

Federated Total Return Government Bond Fund (Sym: FTRGX, FTGSX)

Federated US Government Bond Fund (Sym: FEDBX)

Federated U.S. Government Securities Fund: 1-3 Years (Sym: FSGVX, FSGIX, FSGTX)

Federated U.S. Government Securities Fund: 2-5 Years (Sym: FIGTX, FIGKX, FIGIX)

Federated Investors Ultrashort Bond Fund (Sym: FULAX, FULIX, FULBX)

The complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933; Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; and Section 206 of the Investment Advisers Act of 1940. The Complaint charges that, throughout the Class Period, defendants issued false and misleading statements in Federated's registration statements and prospectuses and, as a result, plaintiffs and the Class were damaged.

Plaintiff seeks to recover damages on behalf of class members and is represented by, among others, the law firm of Stull, Stull & Brody. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions.

If you purchased shares of mutual funds managed by Federated between November 1, 1998 and September 3, 2003, you may, no later than December 23, 2003, request the Court appoint you as lead plaintiff.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by calling toll-free 1-800-337-4983, or by e-mail at [e-mail], or by fax at 212/490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.