FEDERATED SHORT-TERM INCOME FUND
INSTITUTIONAL SHARES
INSTITUTIONAL SERVICE SHARES
(A PORTFOLIO OF FEDERATED INCOME SECURITIES TRUST)
SUPPLEMENT TO PROSPECTUSES DATED AUGUST 31, 1998
On page 13 of the prospectuses, please delete the biography of Robert K. Kinsey
in its entirety and replace it with the following:
"Robert E. Cauley has been the Fund's portfolio manager since March 1999.
Mr. Cauley joined Federated in 1996 as a Senior Investment Analyst and an
Assistant Vice President of the Fund's Adviser and has been a Portfolio
Manager since 1997. Mr. Cauley has been a Vice President of the Adviser
since 1999. Mr. Cauley was a member of the Asset-Backed Structuring Group
at Lehman Brothers Holding, Inc. from 1994 to 1996. Mr. Cauley earned his
M.S.I.A., concentrating in Finance and Economics, from Carnegie Mellon
University."
Randall S. Bauer remains as portfolio manager of the Fund.
April 30, 1999
[Graphic]
Federated Investors
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
www.federatedinvestors.com
Cusip 31420C209
31420C308
G00609-06 (4/99)
