FEDERATED MUNICIPAL OPPORTUNITIES FUND, INC.
CLASS A SHARES
CLASS B SHARES
CLASS C SHARES
CLASS F SHARES
SUPPLEMENT TO PROSPECTUSES DATED NOVEMBER 30, 1998
At the shareholder meeting held on May 12, 1999, shareholders approved the
following changes.
1. Made changes to the Fund's fundamental investment policies:
a) Made non-fundamental and amended the Fund's fundamental investment policy
regarding investments in restricted securities so that the amended policy
now states:
"The Fund may invest in restricted securities. Restricted
securities are any securities that are subject to restrictions on
resale under federal securities law. Under criteria established by
the Directors, certain restricted securities are determined to be
liquid. To the extent that restricted securities are not determined
to be liquid, the Fund will limit their purchase, together with other
illiquid securities, to 15% of its net assets."
b) Amended the Fund's fundamental investment policy regarding borrowing
to permit the purchase of securities while borrowings are outstanding
so that the amended policy now states:
"The Fund will not issue senior securities except that the Fund may
borrow money and engage in reverse repurchase agreements in amounts
up to one-third of the value of its total assets, including the
amounts borrowed.
The Fund will not borrow money or engage in reverse agreements for
investment leverage, but rather as a temporary, extraordinary, or
emergency measure or to facilitate management of the portfolio by
enabling the Fund to meet redemption requests when the liquidation of
portfolio securities is deemed to be inconvenient or disadvantageous.
During the period any reverse repurchase agreements are outstanding,
but only to the extent necessary to assure completion of the reverse
repurchase agreements, the Fund will restrict the purchase of
portfolio instruments to money market instruments maturing on or
before the expiration date of the reverse repurchase agreements."
c) Made non-fundamental and amended the Fund's fundamental policy to permit
the Fund to invest in the securities of other investment companies to read
as follows:
"The Fund may invest its assets in securities of other investment
companies, including the securities of affiliated money market funds,
as an efficient means of carrying out its investment policies and
managing its uninvested cash."
May 12, 1999
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Federated Investors
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
www.federatedinvestors.com
Cusip 313910200
Cusip 313910309
Cusip 313910408
Cusip 313910101
G02538-04 (5/99)
