FEDERATED INCOME SECURITIES TRUST
497, 1994-09-02
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FEDERATED SHORT-TERM INCOME FUND
(A PORTFOLIO OF FEDERATED INCOME SECURITIES TRUST)
Institutional Shares
Supplement to Prospectus dated June 30, 1994
Under the section entitled "General Information" on page 3,
please add the following information as the second paragraph of
the section:
     "Institutional Shares are sold primarily to accounts
     for which financial institutions act in a fiduciary or
     agency capacity, or other accounts where the financial
     institution maintains master accounts with an
     aggregate investment of at least $400 million in
     certain funds which are advised or distributed by
     affiliates of Federated Investors.  Shares are also
     made available to financial intermediaries, and public
     and private organizations.  An investment in the Fund
     serves as a convenient means of accumulating an
     interest in a professionally managed, diversified
     portfolio of  corporate debt securities."
                                               September 2, 1994

   FEDERATED SECURITIES CORP.

   Distributor
   A subsidiary of Federated
   Investors
   Federated Investors Tower
   Pittsburgh, PA  15222-3779
   31420C209
   G00609-01 (9/94)


INTERMEDIATE INCOME FUND
(A PORTFOLIO OF FEDERATED INCOME SECURITIES TRUST)
Institutional Shares
Supplement to Prospectus dated June 30, 1994
Under the section entitled "General Information" on page 3,
please add the following information as the second paragraph of
the section:
     "Institutional Shares are sold primarily to accounts
     for which financial institutions act in a fiduciary or
     agency capacity, or other accounts where the financial
     institution maintains master accounts with an
     aggregate investment of at least $400 million in
     certain funds which are advised or distributed by
     affiliates of Federated Investors.  Shares are also
     made available to financial intermediaries, and public
     and private organizations.  An investment in the Fund
     serves as a convenient means of accumulating an
     interest in a professionally managed, diversified
     portfolio of U.S. government, corporate and asset-
     backed securities."
                                               September 2, 1994

   FEDERATED SECURITIES CORP.

   Distributor
   A subsidiary of Federated
   Investors
   Federated Investors Tower
   Pittsburgh, PA  15222-3779
   31420C407
   G00610-01 (9/94)




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