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MERRILL LYNCH FEDERAL SECURITIES TRUST
SUPPLEMENT DATED FEBRUARY 7, 1994 TO
PROSPECTUS DATED DECEMBER 23, 1993
The disclosure set forth under "Initial Sales Charge Alternative -- Class A
Shares -- Reduced Initial Sales Charges" is amended to reflect that Class A
shares are offered at net asset value to certain employer sponsored retirement
or savings plans, such as a tax qualified retirement plan under Section 401 of
the Internal Revenue Code of 1986, as amended (the "Code"), a deferred
compensation plan under Section 403(b) and Section 457 of the Code, other
deferred compensation arrangements, VEBA plans and non-qualified After Tax
Savings and Investment programs maintained on the Merrill Lynch Group Employee
Services system, herein referred to as "Employer Sponsored Retirement or Savings
Plans", provided such plans meet the required minimum number of eligible
employees or required amount of assets advised by the Fund's investment adviser
or any of its affiliates.
In addition the first sentence of the second paragraph is replaced as
follows:
Initial sales charges will be waived for shareholders purchasing
$1 million or more in a single transaction (other than an Employer
Sponsored Retirement or Savings Plan), or a purchase by a TMAsm
Managed Trust, of Class A shares of the Fund.
Additional information regarding investments by Employer Sponsored
Retirement or Savings Plans may be obtained from your Merrill Lynch financial
consultant.
Code #10259ALL
