FEDERATED EQUITY INCOME FUND, INC.
Class A Shares
Class B Shares
Class C Shares
Class F Shares
SUPPLEMENT TO PROSPECTUSES DATED JULY 31, 1997
Please delete the first paragraph under the section entitled "Restricted and
Illiquid Securities" and replace it with the following:
"The Fund intends to invest in restricted securities. Restricted
securities are any securities in which the Fund may otherwise invest
pursuant to its investment objectives and policies but which are subject
to restriction on resale under federal securities law. The Fund will limit
investments in illiquid securities, including certain restricted
securities determined by the Directors not to be liquid, non-negotiable
time deposits and repurchase agreements providing for settlement in more
than seven days after notice, to 15% of its net assets."
December 1, 1997
[GRAPHIC OMITTED]
Cusip 313915100
Cusip 313915209
Cusip 313915308
Cusip 313915407
G01528-05 (12/97)
[GRAPHIC OMITTED]
FEDERATED EQUITY INCOME FUND, INC.
Class A Shares
Class B Shares
Class C Shares
Class F Shares
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED JULY 31, 1997
Please delete the sections entitled "Investing in Minerals or Real Estate" and
"Investing in Restricted Securities" on page 5.
December 1, 1997
[GRAPHIC OMITTED]
Cusip 313915100
Cusip 313915209
Cusip 313915308
Cusip 313915407
G01528-06 (12/97)
