FEDERATED U S GOVERNMENT SECURITIES FUND 2-5 YEARS, 497, 1999-04-23

FEDERATED U S GOVERNMENT SECURITIES FUND 2-5 YEARS
497, 1999-04-23
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FEDERATED U. S. GOVERNMENT SECURITIES FUND: 2-5 YEARS
Institutional Shares
Institutional Service Shares
Supplement to Prospectuses dated March 31, 1999

At a Special Meeting of Shareholders to be held on June 21, 1999, shareholders
of the Trust will be asked to vote on the changes described below. If approved
by shareholders, these changes will take effect as of July 1, 1999. Shareholders
will be notified if any of these changes are not approved. Please keep this
supplement for your records.

Shareholders will be asked to consider the following proposals:

                     1.    To elect five Trustees;

                     2. To ratify the selection of the Trust's independent
auditors;

                     3. To make changes to the Trust's fundamental investment
policies:

                    a.   To amend the Trust's  fundamental  investment  policies
                         regarding    borrowing   money   and   issuing   senior
                         securities;

                           b. To amend the Trust's fundamental investment policy
regarding lending by the Trust;

                           c.   To amend, and to make non-fundamental, the
                                Trust's fundamental investment policy on buying
                                securities on margin;

                           d. To amend, and to make non-fundamental, the Trust's
fundamental investment policy on pledging assets;

                           e.   To amend, and to make non-fundamental, the
                                Trust's fundamental investment policy regarding
                                investing in U.S. government securities;

                           f.   To make non-fundamental the Trust's fundamental
                                investment policy regarding investing in
                                repurchase agreements; and

                           g.   To make non-fundamental the Trust's fundamental
                                investment policy regarding engaging in
                                when-issued and delayed delivery transactions.

                     4. To eliminate certain of the Trust's fundamental
investment policies:

                    a.   To remove the  Trust's  fundamental  investment  policy
                         regarding selling securities short; and

                           b. To remove the Trust's fundamental investment
policy regarding portfolio trading.

                     5.    To approve an amendment and restatement to the
                           Trust's Declaration of Trust to permit the Board of
                           Trustees to liquidate assets of the Trust without
                           seeking shareholder approval

                     6. To transact such other business as may properly come
before the meeting or any adjournment thereof.



                                                                  April 23, 1999







Cusip    8022502A-IS
         8022502A-SS

G02642-02(4/99)