FEDERATED INTERMEDIATE INCOME FUND
(A PORTFOLIO OF FEDERATED INCOME SECURITIES TRUST)
INSTITUTIONAL SHARES
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO PROSPECTUSES DATED AUGUST 31, 1998
Please insert the following as the last paragraph to the subsection entitled
"MORTGAGE-RELATED ASSET-BACKED SECURITIES" on page 6 of the Prospectuses:
"The Fund may invest in mortgage-related asset-backed securities primarily by
investing in another mutual fund that owns securities and that is advised by an
affiliate of the adviser. This other mutual fund is managed independently of the
Fund and may incur additional administrative expenses. The Fund may also invest
in such securities directly."
February 18, 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 31420C407
Cusip 31420C506
G00610-06 (2/99) 505611
FEDERATED INTERMEDIATE INCOME FUND
(A PORTFOLIO OF FEDERATED INCOME SECURITIES TRUST)
INSTITUTIONAL SHARES
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED AUGUST 31, 1998
Please delete the section entitled "INVESTING IN SECURITIES OF OTHER INVESTMENT
COMPANIES" on page 5 of the Statement of Additional Information and replace with
the following:
"SECURITIES OF OTHER INVESTMENT COMPANIES
The Fund may invest its assets in securities of other investment companies,
including the securities of money market funds, as an efficient means of
carrying out its investment policies. It should be noted that investment
companies incur certain expenses, such as management fees, and therefore, any
investment by the Fund in shares of other investment companies may be subject to
such duplicate expenses.
The Fund may invest in mortgage-related asset-backed securities primarily by
investing in another mutual fund that owns securities and that is advised by an
affiliate of the adviser. This other mutual fund is managed independently of the
Fund and may incur additional administrative expenses. The Fund may also invest
in such securities directly."
February 18, 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 31420C407
Cusip 31420C506
G00610-07 (2/99)
