FEDERATED INVESTORS
Federated Investors Tower
Pittsburgh, PA 15222-3779
Federated Securities Corp. is the distributor of the Fund
and is a subsidiary of Federated Investors.
Cusip 313907206
Cusip 313907107
G00995-03 (12/96)
FEDERATED SHORT-TERM MUNICIPAL TRUST
SUPPLEMENT TO THE INSTITUTIONAL SHARES AND INSTITUTIONAL SERVICE SHARES
PROSPECTUSES DATED
AUGUST 31, 1996.
Under the section entitled ADVISOR'S BACKGROUND, please replace the second
and third paragraphs with the following:
`Jeff A. Kozemchak has been the Trust's portfolio manager since June 1996.
Mr. Kozemchak joined Federated Investors in 1987 and has been a Vice
President of the Trust's investment adviser since 1993. Mr. Kozemchak
served as an Assistant Vice President of the investment adviser from 1990
until 1992, and from 1987 until 1990 he acted as an investment analyst.
Mr. Kozemchak is a Chartered Financial Analyst and received his M.S. in
Industrial Administration from Carnegie Mellon University in 1987.
Mary Jo Ochson has been the Trust's portfolio manager since January 1,
1996. Ms. Ochson joined Federated Investors in 1982 and has been a Senior
Vice President of the Trust's investment adviser since January 1996. From
1988 through 1995, Ms. Ochson served as a Vice President of the Trust's
investment adviser. Ms. Ochson is a Chartered Financial Analyst and
received her M.B.A. in Finance from the University of Pittsburgh.''
January 9, 1996
