FEDERATED UTILITY FUND, INC.
Class A Shares
Class B Shares
Class C Shares
Supplement to Prospectuses dated April 30, 1997
1. Michael J. Donnelly is no longer a portfolio manager for Federated Utility
Fund, Inc. In the subsection of the prospectuses entitled "Sub-Adviser's
Background," please delete the biography of Michael J. Donnelly in its
entirety and replace with the following:
"DrewJ. Collins has been a portfolio manager of the Fund since July 1997.
Mr. Collins joined Federated Investors in 1995 as a Senior Vice President
of the Fund's investment adviser. Mr. Collins served as Vice
President/Portfolio Manager of international equity portfolios at Arnhold
and Bleichroeder, Inc. from 1994 to 1995. He served as an Assistant Vice
President/Portfolio Manager for international equities at the College
Retirement Equities Fund from 1986 to 1994. Mr. Collins is a Chartered
Financial Analyst and received his M.B.A. in finance from the Wharton
School of The University of Pennsylvania.
Henry A. Frantzen has been a portfolio manager of the Fund since July 1997.
Mr. Frantzen joined Federated Investors in 1995 as an Executive Vice
President of the Fund's investment adviser.
Mr. Frantzen served as Chief
Investment Officer of international equities at Brown Brothers Harriman &
Co. from 1992 until 1995."
Linda A. Duessel and Steven J. Lehman remain as portfolio managers of the
Fund.
2. Effective August 1, 1997, the program allowing an exemption from the
front-end sales charge for purchases of Class A Shares of the Fund with
proceeds from redemptions of unaffiliated investment companies (the "NAV
Exchange Program") will be discontinued. Please delete all references to
the NAV Exchange Program where they appear in the Fund's prospectuses. Of
course, other exemptions from the sales charge may apply. See the section
entitled "Reducing or Eliminating the Sales Charge."
July 30, 1997
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Cusip 314286204
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FEDERATED UTILITY FUND, INC.
Class F Shares
Supplement to Prospectus dated April 30, 1997
Michael J. Donnelly is no longer a portfolio manager for Federated Utility Fund,
Inc. In the subsection of the prospectus entitled "Sub-Adviser's Background,"
please delete the biography of Michael J. Donnelly in its entirety and replace
with the following:
"Drew J. Collins has been a portfolio manager of the Fund since July 1997.
Mr. Collins joined Federated Investors in 1995 as a Senior Vice President
of the Fund's investment adviser. Mr. Collins served as Vice
President/Portfolio Manager of international equity portfolios at Arnhold
and Bleichroeder, Inc. from 1994 to 1995. He served as an Assistant Vice
President/Portfolio Manager for international equities at the College
Retirement Equities Fund from 1986 to 1994. Mr. Collins is a Chartered
Financial Analyst and received his M.B.A. in finance from the Wharton
School of The University of Pennsylvania.
Henry A. Frantzen has been a portfolio manager of the Fund since July 1997.
Mr. Frantzen joined Federated Investors in 1995 as an Executive Vice
President of the Fund's investment adviser. Mr. Frantzen served as Chief
Investment Officer of international equities at Brown Brothers Harriman &
Co. from 1992 until 1995."
Linda A. Duessel and Steven J. Lehman remain as portfolio managers of the Fund.
July 30, 1997
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Cusip 314286402
G01529-09 (7/97)
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