FEDERATED U.S. GOVERNMENT SECURITIES FUND: 1-3 YEARS
Institutional Service Shares
SUPPLEMENT TO PROSPECTUS DATED APRIL 30, 1996
Please insert the following as a new section immediately following the sub-
section entitled "By Mail" on page 8:
"EXCHANGE PRIVILEGE
Financial institutions that maintain master accounts with an aggregate
investment of at least $400 million in certain funds which are advised
or distributed by affiliates of Federated Investors may exchange their
Shares for Institutional Shares of the Trust."
June 21, 1996
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 31428M209