[FEDERATED LETTERHEAD]
May 7, 1998
TO OUR SHAREHOLDERS:
Because of a production error, we are circulating a new Proxy Card for
use in connection with the Special Meeting of Shareholders of FEDERATED
PURCHASER, INC. to be held on May 28, 1998, at 10:00 a.m. at the offices of
the Company. As you know, the meeting is being held for the purpose of
approving an amendment to the Company's Certificate of Incorporation to
increase the number of shares of Common Stock authorized from 5,000,000 to
10,000,000.
Whether or not you are planning to attend the Meeting, it is important
that your shares be represented. If you wish to vote by proxy, please
complete, sign and date the enclosed Proxy Card and mail it at your
earliest convenience in the enclosed postage-paid envelope. If you have
already returned a proxy card, it is still necessary for you to complete
and return the corrected Proxy Card to ensure that your vote will be
recorded properly.
We apologize for any inconvenience.
__________________
Harry J. Fallon
President
