OHIO MUNICIPAL CASH TRUST
(A Portfolio of Federated Municipal Trust)
Institutional Service Shares
Cash II Shares
Institutional Shares
Supplement to Prospectus dated December 31, 1997
At the May 21, 1998 shareholder meeting, shareholders approved a change to the
Fund's fundamental policy of investing in restricted securities. The policy is
now non-fundamental and allows the Fund to invest, without limitation, in
restricted securities which meet the Board of Trustees' guidelines for
liquidity. Therefore, the Fund's policy on restricted securities is as follows:
"The Fund may invest in restricted securities. Restricted securities are
any securities in which the Fund may invest pursuant to its investment
objective and policies but which are subject to restrictions on resale
under federal securities law. Under criteria established by the Trustees,
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 10% of
its net assets."
May 29, 1998
[GRAPHIC OMITTED]
Cusip 314229857
Cusip 314229840
Cusip 314229659
G00212-07 (5/98)
[GRAPHIC OMITTED]
OHIO MUNICIPAL CASH TRUST
(A Portfolio of Federated Municipal Trust)
Institutional Service Shares
Cash II Shares
Institutional Shares
Supplement to Statement of Additional Information dated December 31, 1997
At the May 21, 1998 shareholder meeting, shareholders approved to change the
Fund's fundamental policy of investing in restricted securities to a
non-fundamental policy allowing the Fund to invest, without limitation, in
restricted securities which meet the Board of Trustees' guidelines for
liquidity.
May 29, 1998
[GRAPHIC OMITTED]
Cusip 314229857
Cusip 314229840
Cusip 314229659
G00212-08 (5/98)
[GRAPHIC OMITTED]
