FEDERATED SHORT-TERM MUNICIPAL TRUST
(FORMERLY, SHORT-TERM MUNICIPAL TRUST)
INSTITUTIONAL SHARES
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO THE PROSPECTUSES DATED AUGUST 31, 1995
Please add the following as the third paragraph of the sub-section entitled
"ADVISER'S BACKGROUND" which appears on page 7 of each prospectus:
"Jeff A. Kozemchak has been the Trust's portfolio manager since June 1, 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."
June 17, 1996
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
825253107
825253206
