FEDERATED US GOVERNMENT SECURITIES FUND 5 10 YEARS, 497, 1999-04-23

FEDERATED US GOVERNMENT SECURITIES FUND 5 10 YEARS
497, 1999-04-23
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FEDERATED U. S. GOVERNMENT SECURITIES FUND: 5-10 YEARS

INSTITUTIONAL SHARES
INSTITUTIONAL SERVICE SHARES

SUPPLEMENT TO PROSPECTUSES DATED APRIL 30, 1999

At a Special Meeting of Shareholders to be held on June 21, 1999, shareholders
of the Trust will be asked to vote on the changes described below. If approved
by shareholders, these changes will take effect as of July 1, 1999. Shareholders
will be notified if any of these changes are not approved. Please keep this
supplement for you records.

Shareholders will be asked to consider the following proposals:

     1.   To elect five Trustees;

     2.   To ratify the selection of the Trust's independent auditors;

     3.   To make changes to the Trust's fundamental investment policies:

          a.   To amend the  Trust's  fundamental  investment  policy  regarding
               diversification;

          b.   To amend the  Trust's  fundamental  investment  policy  regarding
               borrowing money and issuing senior securities;

          c.   To amend the  Trust's  fundamental  investment  policy  regarding
               investments in real estate;

          d.   To amend the  Trust's  fundamental  investment  policy  regarding
               investments in commodities;

          e.   To amend the  Trust's  fundamental  investment  policy  regarding
               lending by the Trust;

          f.   To amend the  Trust's  fundamental  investment  policy  regarding
               concentration  of the Trust's  investments  in the  securities of
               companies in the same industry;

          g.   To amend, and to make  non-fundamental,  the Trust's  fundamental
               investment policy on buying securities on margin; and

          h.   To amend, and to make  non-fundamental,  the Trust's  fundamental
               investment policy on pledging assets.

     4.   To  eliminate  the Trust's  fundamental  investment  policy on selling
          securities short;

     5.   To  transact  such other  business  as may  properly  come  before the
          meeting or any adjournment thereof.

                                                                 April 23, 1999

Cusip   31428S107
        31428S206

G02644-02(4/99)