February 1998
FEDERATED PENNSYLVANIA INTERMEDIATE MUNICIPAL TRUST
Important News For Shareholders
The Board of Trustees of Federated Pennsylvania Intermediate Municipal Trust are
submitting for your vote a proposal to reorganize the Trust into Federated
Pennsylvania Municipal Income Fund.
Why is this occurring?
Federated Pennsylvania Intermediate Municipal Trust was established in 1993 and
has assets of approximately $19 million. Although the Trust has performed
competitively against its Lipper category, we do not see the potential to
substantially increase assets in the future.
What class of shares will Federated Pennsylvania Intermediate Municipal Trust be
merged into? Class A shares of Federated Pennsylvania Municipal Income Fund at
net asset value.
Will there be tax consequences?
The transaction will be a tax-free reorganization. However, if a shareholder
chooses to redeem shares from Federated Pennsylvania Intermediate Municipal
Trust prior to the merger with Federated Pennsylvania Municipal Income Fund
(Class A Shares), it will be a taxable event.
How do the funds compare?
(All Data as of 12/31/97) Federated Pennsylvania Federated Pennsylvania
Intermediate Municipal Trust Municipal Income Fund (Class A)
Assets $19.5 million $232.6 million
Weighted Average Credit Quality AA AA
Weighted Average Duration 5.44 yrs 7.22 yrs
AMT (%)* 9.54% 16.5%
Fund Inception Date 12/93 10/90
* % of securities whose income may be subject to the Alternative Minimum Tax
Fund Performance:
(All Data as of 12/31/97) Federated Pennsylvania Federated Pennsylvania
Intermediate Municipal Trust Municipal Income Fund
(Class A) No-Load 30 Day Distribution Yield 4.67% 4.94% 30 Day SEC
Yield 4.19% 4.44% 1 Year Total Return 7.50% 9.34% 3 Year Annualized Total Return
8.68% 10.94% 5 Year Annualized Total Return NA 7.46% Annualized Total Return
Since Inception 6.18% 8.53%
Past performance is not indicative of future results. Investment return and
principal value will fluctuate so when shares are redeemed, they may be worth
more or less than their original cost.
The Board of Trustees believes that this proposal is in the best interests of
the Federated Pennsylvania Intermediate Municipal Trust shareholders and
unanimously recommends that you vote for its approval.
Your vote is important to us, so please take a moment to sign and return your
proxy card(s) in the enclosed postage paid envelope. If you have any question
please do not hesitate to contact the fund at 1-800-341-7400. The 30-day SEC
yield is calculated by dividing the net investment income per share for the
thirty days ended on the date of the calculation by the maximum offering price
per share on that date. The figure is compounded and annualized.
The 30 day distribution rate reflects actual distributions to shareholders. It
is calculated by dividing the monthly annualized dividend plus short-term
capital gains, if any by the average 30-day offering price.
In the absence of temporary expense waivers or reimbursements, the 30-day SEC
yield for Federated Pennsylvania Municipal Income Fund would have been 4.19%.
The 30-day SEC yield for Federated Pennsylvania Intermediate Municipal Trust
would have been 2.29%. Total return would also have been lower.
