FEDERATED AGGRESSIVE GROWTH FUND
FEDERATED COMMUNICATIONS TECHNOLOGY FUND
FEDERATED LARGE CAP GROWTH FUND
FEDERATED INTERNATIONAL SMALL COMPANY FUND
(the "Special Offer Funds")
SUPPLEMENT TO PROSPECTUSES DATED DECEMBER 31, 1999 AND MARCH 31, 1999.
SPECIAL OFFER
For the period March 1, 2000 through March 31, 2000 (unless terminated
sooner as described below) (the "Offering Period")1, Federated Securities Corp.
(the "Distributor"), the principal underwriter for the Special Offer Funds, will
waive the front-end sales charge when you purchase Class A Shares of the
above-referenced Special Offer Funds. Consequently, you may purchase Class A
Shares of the Special Offer Funds during the Offering Period at their next
calculated net asset value. WHILE THIS MAY BENEFIT MANY INVESTORS, YOU SHOULD
REVIEW THE FOLLOWING INFORMATION CAREFULLY BEFORE INVESTING IN ANY CLASS OF
SHARES OF THE SPECIAL OFFER FUNDS.
GENERAL INFORMATION. The Distributor will pay the selling investment
professionals' firms a commission of 2.00% of the offering price on sales of
Class A Shares during the Offering Period. During the Offering Period, Class A
Shares will not be subject to the sales charge schedule described in the
prospectus under "What Do Shares Cost?--Sales Charge When You Purchase."
Class A Shares which you purchase during the Offering Period will be
subject (except as described below) to a contingent deferred sales charge
("CDSC") of 2.00% for redemptions occurring within 30 months after the first day
of the calendar month following the month in which your purchase is made (the
"CDSC Period"). The CDSC will be calculated using the share price at the time of
the purchase or the time of redemption, whichever is lower.
The CDSC will not apply to, and the Distributor will not pay commissions
for, Class A Shares of the Special Offer Funds purchased under any of the
following circumstances:
o within 120 days of redeeming Shares of the same Special Offer Fund of an
equal or lesser amount;
o by exchanging shares from Class A Shares of another Federated fund (other
than a money market fund);
o through wrap accounts or other investment programs where you pay the
investment professional directly for services;
o through firms and investment professionals that receive no portion of the
sales charge;
o as a Federated Life Member (Class A Shares only) and their immediate family
members; or
o as a Trustee or employee of a Special Offering Fund, the Adviser, the
Distributor and their affiliates, and the immediate family members of these
individuals.
EFFECT ON EXCHANGE PRIVILEGES. You may exchange Class A Shares purchased
during the Offering Period with Class A Shares of any other Special Offer Fund
without incurring the 2.00% CDSC, but the shares you receive upon such exchange
will be subject to the CDSC if redeemed during the CDSC Period. Notwithstanding
any statement to the contrary in any prospectus for any other Federated Fund,
Class A Shares which you purchase through this Special Offer may not be
exchanged during the CDSC Period for shares of other Federated funds which are
not subject to this Special Offer. If the Class A Shares you purchase through
this Special Offer are redeemed during the CDSC Period and the proceeds are
immediately invested into other Federated funds' Class A Shares, the CDSC will
be deducted from the proceeds of the redemption, but the sales charge on the
subsequent purchase will be waived and investment professionals and their firms
will receive no portion of a sales charge on that purchase. YOU SHOULD CONSIDER
THE LIMITED EXCHANGE PRIVILEGE WHEN DECIDING WHETHER TO PURCHASE CLASS A SHARES
DURING THE OFFERING PERIOD.
INFORMATION ABOUT LARGE INVESTMENTS. During the Offering Period, the
Distributor will waive the 0.75% CDSC (described in the Special Offer Funds'
prospectuses under "What Do Shares Cost?--Sales Charge When You Purchase")
normally imposed on purchases of $1 million or greater; however, such purchases
made during the Offering Period will be subject to the 2.00% CDSC as described
above. Other than related to certain qualified plans, investment professionals
will not receive an advance payment or commission on such purchases after the
Offering Period. IN DECIDING WHETHER TO PURCHASE SHARES THROUGH THIS SPECIAL
OFFER, YOU SHOULD CONSIDER THAT PURCHASES OF $1 MILLION OR GREATER IN CLASS A
SHARES OF THE SPECIAL OFFER FUNDS MADE AFTER THE OFFERING PERIOD WILL NOT BE
SUBJECT TO A FRONT-END SALES CHARGE OR A CDSC.
EFFECT ON COST AND FUND EXPENSES. This Special Offer will not affect the
total amounts of the Special Offer Funds' annual operating expenses shown in
their prospectuses. However, beginning March 1, 2000, the Special Offer Funds
will discontinue payment of the 0.25% Shareholder Services Fees on Class A
Shares. The Special Offer Funds have no present intention of paying the
Shareholder Services Fee for the remainder of their current fiscal years.
Instead, the Special Offer Funds will begin to pay Distribution (12b-1) Fees of
0.25% to the Distributor for the sale, distribution and customer servicing of
the Class A Shares. The footnotes regarding distribution (12b-1) fees to the
tables showing the "Fees and Expenses" in the Special Offer Funds' prospectuses
are revised accordingly, and the following information is added to the "Example"
that follows each "Fees and Expenses" table.
EXAMPLE
This Example is intended to help you compare the cost of investing in the
Special Offer Funds' Class A Shares that are available during the Offering
Period with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Funds' Class A Shares for the
time periods indicated and then redeem all of your Shares at the end of those
periods. Expenses assuming no redemption are also shown. The Example also
assumes that your investment has a 5% return each year and that the Special
Offer Funds' Class A Shares operating expenses are BEFORE WAIVERS AND
REIMBURSEMENT, as shown in the Special Offer Funds' prospectus tables, and
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
1 YEAR 3 YEARS 5 10 YEARS
YEARS
FEDERATED AGGRESSIVE GROWTH FUND
Expenses assuming redemption $478 $853 $1,454 $3,080
Expenses assuming no redemption $278 $853 $1,454 $3,080
FEDERATED COMMUNICATIONS TECHNOLOGY
FUND
Expenses assuming redemption $562 $1,100 NA NA
Expenses assuming no redemption $362 $1,100 NA NA
FEDERATED LARGE CAP GROWTH FUND
Expenses assuming redemption $387 $579 $996 $2,159
Expenses assuming no redemption $187 $579 $996 $2,159
FEDERATED INTERNATIONAL SMALL
COMPANY FUND
Expenses assuming redemption $431 $712 $1,220 $2,615
Expenses assuming no redemption $231 $712 $1,220 $2,615
February 18, 2000
[Graphic]
Federated Securities Corp., Distributor
Cusip 314172875 Cusip 314172818
Cusip 314172867 Cusip 314172792
Cusip 314172859 Cusip 314172784
Cusip 314172842 Cusip 981487838
Cusip 314172834 Cusip 981487820
Cusip 314172826 Cusip 981487812
21566 (2/00)
