Exhibit 99.1

Press Release

Federated Investors, Inc. Announces Preliminary Fourth Quarter and Year-End 2004 Earnings Results

• Equity assets increase to record $29 billion, up 13 percent from Q4 2003

• Quarterly dividend of $0.125 per share declared

(PITTSBURGH, PA, February 3, 2005) — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment management firms, today reported preliminary earnings per diluted share (EPS) from continuing operations¹ of $0.44 for the quarter ended December 31, 2004, a 16 percent increase from Q4 2003’s EPS from continuing operations of $0.38. Preliminary income from continuing operations for Q4 2004 increased 15 percent to $48.3 million compared to income from continuing operations of $42.0 million for Q4 2003.

For the full-year 2004, Federated reported preliminary EPS from continuing operations of $1.77, an increase of five percent from $1.68 in 2003. Federated reported preliminary income from continuing operations of $195.3 million for the full-year 2004, a four percent increase from $188.1 million for 2003.

These earnings results are preliminary as the company is currently involved in discussions with the Securities and Exchange Commission and the Office of the New York State Attorney General to resolve issues raised by past mutual fund trading activities. The process of resolving these issues will likely result in changes to the 2004 preliminary results.

Federated’s total managed assets were $179.3 billion at December 31, 2004, down $18.6 billion or nine percent from $197.9 billion at the end of 2003 and up from $177.6 billion at the end of Q3 2004. Average managed assets for Q4 2004 were $178.9 billion, down $20.2 billion or 10 percent from $199.1 billion reported for Q4 2003 and down $2.9 billion from $181.8 billion in average managed assets reported for Q3 2004.

“Federated’s increase in revenue resulted from our diversified product mix as growth in equity assets under management offset decreases in money market and fixed-income assets in a period of rising short-term interest rates,” said J. Christopher Donahue, president and CEO. “In 2005, we will work toward equity and fixed-income expansion and we intend to grow our cash management business by developing new applications for our existing products and pursuing acquisition opportunities.”

Contacts:
MEDIA	MEDIA	ANALYSTS
Meghan McAndrew	J.T. Tuskan	Ray Hanley
(412) 288-8103	(412) 288-7895	(412) 288-1920
mmcandrew@federatedinv.com	jtuskan@federatedinv.com	rhanley@federatedinv.com

Federated Announces Preliminary Q4 and Year-End 2004 Results

February 3, 2005

Page 2 of 8

The company also announced that its board of directors declared a quarterly dividend of $0.125 per share. The dividend is payable on February 28, 2005, to shareholders of record as of February 18, 2005. During Q4 2004, Federated purchased 617,400 shares of class B common stock for $18.5 million. For 2004, the company purchased 4,153,901 shares for $121.4 million.

As a result of increases in net asset values and solid flows, equity assets in both funds and separate accounts increased to a record $29.0 billion at December 31, 2004, compared to $25.6 billion at the end of 2003 and $26.2 billion at the end of Q3 2004. Among equity funds, Federated had positive net sales for the year with strong net sales in the Federated Market Opportunity Fund, a contrarian value fund; Federated Kaufmann Fund, a mid-cap growth fund; Federated Kaufmann Small Cap Fund, a small-cap growth fund; Federated Capital Appreciation Fund, a core blend fund; and Federated Muni and Stock Advantage Fund, a tax-advantaged income fund with a secondary objective of capital appreciation. Additionally, driven by strong net sales, Federated’s managed account equity products increased to $1.1 billion at December 31, 2004 from $448 million at the end of 2003.

Through its mutual funds and separate accounts, Federated managed $55.0 billion in equity and fixed-income assets at December 31, 2004, down slightly from $55.1 billion at the end of 2003. Fixed-income assets were $26.0 billion at December 31, 2004, down $3.6 billion from the end of 2003 and up slightly from Q3 2004. Among the top selling fixed-income funds were Federated Total Return Bond Fund, a multi-sector bond fund, and Federated Short-Term Income Fund.

Money market assets in both funds and separate accounts totaled $124.3 billion at December 31, 2004, $18.5 billion or 13 percent less than $142.8 billion at December 31, 2003 and down from $125.5 billion at September 30, 2004. Average money market assets were $125.3 billion for the quarter ended December 31, 2004, compared to $145.3 billion for the same period last year and $129.9 billion for Q3 2004. Average money market fund assets of $112.4 billion for Q4 2004 decreased from $132.0 billion for Q4 2003 and from $116.8 billion for the prior quarter.

Preliminary Financial Highlights

For Q4 2004, Federated derived 40 percent of its revenue from equity assets, 38 percent from money market assets, 19 percent from fixed-income assets and three percent from other products. For 2004, Federated derived 40 percent of its revenue from money market assets, 37 percent from equity assets, 19 percent from fixed-income assets and four percent from other products.

Total revenue decreased slightly for Q4 2004 to $208.7 million from $209.6 million for Q4 2003 and grew by two percent from the prior quarter. Total revenue for 2004 increased seven percent to $847.6 million compared to $795.8 million for 2003. Preliminary operating expenses decreased 11 percent for Q4 2004 to $125.0 million from $140.3 million for Q4 2003 due primarily to investigation-related costs recorded in Q4 2003. Preliminary operating expenses for 2004 increased five percent to $511.1 million compared to $488.4 million for 2003.

Federated Announces Preliminary Q4 and Year-End 2004 Results

February 3, 2005

Page 3 of 8

For comparisons to 2003, increases in other service fees, net; amortization of deferred sales commissions; and debt expense—nonrecourse include the result of applying financing treatment in 2004 to account for all B-share distribution-related funding arrangements. The impact of financing treatment in Q4 2004 was approximately $12.1 million of additional revenue, $9.2 million of additional operating expense and $4.0 million of additional debt expense—nonrecourse compared to Q4 2003. For 2004, the impact of financing treatment was approximately $49.0 million of additional revenue, $36.7 million of additional operating expense and $16.8 million of additional debt expense—nonrecourse.

As a result of certain contractual changes, Federated’s 2004 revenue and operating income were impacted by the elimination of portfolio accounting revenue and expenses related to Federated-sponsored funds. Q4 2003 and full-year 2003 included $4.2 million and $16.6 million, respectively, of revenue and $3.4 million and $13.7 million, respectively, of operating expenses that, due to the portfolio accounting contract changes, are no longer recorded effective January 1, 2004.

Federated will host an earnings conference call at 9:00 a.m. on Friday, February 4, 2005. Investors are invited to listen to Federated’s preliminary Q4 and year-end 2004 earnings teleconference by calling 888-412-9259 (domestic) or 706-679-0848 (international) prior to the 9:00 a.m. Eastern start time. The call may also be accessed in real time on the Internet via the About Us section of www.federatedinvestors.com. A replay will be available after 12:30 p.m. and until February 11, 2005, by calling 800-642-1687 (domestic) or 706-645-9291 (international) and entering code 3453499.

Federated Investors, Inc. is one of the largest investment management firms in the United States, managing $179.3 billion in assets as of December 31, 2004. With 133 mutual funds, various separately managed accounts and closed-end funds, Federated provides comprehensive investment management worldwide to 5,700 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top two percent of money market fund managers in the industry, the top six percent of fixed-income fund managers and the top six percent of equity fund managers.²

###

1 Continuing operations exclude both the results of operations, net of tax and the sale of the firm’s mutual fund transfer agency business to Boston Financial Data Services on June 30, 2004. Financial results have been reclassified to reflect this activity as discontinued operations. For more information, see Federated’s related filing on Form 8-K dated July 6, 2004 and Federated’s Form 10-Q dated August 6, 2004.

2 Strategic Insight, November 2004. Based on assets under management in open-end funds.

Certain statements in this press release, such as those related to the execution of the company’s growth strategy constitute forward-looking statements, which involve known and unknown risks, uncertainties, and other factors that may cause the actual results, levels of activity, performance, or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Such factors include the ability to grow our customer base, develop new applications for our products and complete acquisitions, as well as those factors discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange Commission. Many of these factors may be more likely to occur as a result of the ongoing threat of terrorism. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.

Federated Announces Preliminary Q4 and Year-End 2004 Results

February 3, 2005

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For more complete information on Federated funds, please visit www.federatedinvestors.com for prospectuses. You should consider the fund’s investment objectives, risks, charges, and expenses carefully before you invest. Information about these and other important subjects is in the fund’s prospectus, which investors should read carefully before investing.

Federated Securities Corp., is the distributor of the Federated funds.

Separately managed accounts are available through Federated Investment Counseling, a registered investment advisor.

Past performance is no guarantee of future results.

Federated Announces Preliminary Q4 and Year-End 2004 Results

February 3, 2005

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Preliminary Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Quarter Ended Dec. 31,						% Change Q4 2003 to Q4 2004		Quarter Ended Sept. 30, 2004			% Change Q3 2004 to Q4 2004
	2004			2003
Revenue
Investment advisory fees, net	$	135,748		$	139,595		(3	)%	$	131,716		3	%
Administrative service fees, net		32,073			36,706		(13	)		33,497		(4	)
Other service fees, net		39,038			31,170		25			38,002		3
Other, net		1,824			2,129		(14	)		1,974		(8	)
Total Revenue		208,683			209,600		—			205,189		2
Operating Expenses
Compensation and related		41,633			42,980		(3	)		42,088		(1	)
General and administrative
Marketing and distribution		37,095			40,910		(9	)		37,336		(1	)
Professional service fees		8,476			19,648		(57	)		6,697		27
Office and occupancy		5,548			6,381		(13	)		5,563		—
Systems and communications		4,714			4,310		9			5,050		(7	)
Advertising and promotional		3,671			5,093		(28	)		3,655		—
Travel and related		3,604			3,710		(3	)		2,956		22
Other		3,668			10,311		(64	)		4,276		(14	)
Total general and administrative		66,776			90,363		(26	)		65,533		2
Amortization of deferred sales commissions		13,913			4,358		219			13,526		3
Amortization of intangible assets		2,653			2,647		—			2,669		(1	)
Total Operating Expenses		124,975			140,348		(11	)		123,816		1
Operating Income		83,708			69,252		21			81,373		3
Nonoperating Income (Expenses)
Investment income, net		1,337			727		84			759		76
Debt expense—recourse		(84	)		(129	)	(35	)		(108	)	(22	)
Debt expense—nonrecourse		(4,880	)		(1,032	)	373			(5,082	)	(4	)
Other, net		(25	)		7		(457	)		5		(600	)
Total Nonoperating Expenses, net		(3,652	)		(427	)	755			(4,426	)	(17	)
Minority interest		2,484			2,563		(3	)		2,477		—
Income from continuing operations before income taxes		77,572			66,262		17			74,470		4
Income tax provision		29,307			24,310		21			27,269		7
Income from continuing operations		48,265			41,952		15			47,201		2
Discontinued operations, net of tax		(276	)		822		(134	)		(150	)	(84	)
Net Income	$	47,989		$	42,774		12	%	$	47,051		2	%
Earnings Per Share—Basic
Income from continuing operations	$	0.45		$	0.39		15	%	$	0.44		2	%
(Loss) Income from discontinued operations	$	(0.00	)	$	0.01		(100	)%	$	(0.00	)	—
Net Income	$	0.45		$	0.40		13	%	$	0.44		2	%
Earnings Per Share—Diluted
Income from continuing operations	$	0.44		$	0.38		16	%	$	0.43		2	%
(Loss) Income from discontinued operations	$	(0.00	)	$	0.01		(100	)%	$	(0.00	)	—
Net Income*	$	0.44		$	0.38		16	%	$	0.43		2	%
Weighted-average shares outstanding
Basic		106,823			107,502					107,591
Diluted		108,933			111,278					109,848
Dividends declared per share	$	0.125		$	0.085				$	0.102

* May not sum due to rounding.

Federated Announces Preliminary Q4 and Year-End 2004 Results

February 3, 2005

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Preliminary Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Year Ended Dec. 31,						% Change
	2004			2003
Revenue
Investment advisory fees, net	$	546,167		$	528,370		3	%
Administrative service fees, net		135,851			144,872		(6	)
Other service fees, net		158,136			114,848		38
Other, net		7,482			7,683		(3	)
Total Revenue		847,636			795,773		7
Operating Expenses
Compensation and related		171,846			169,749		1
General and administrative
Marketing and distribution		156,474			156,093		––
Professional service fees		34,218			45,254		(24	)
Office and occupancy		21,737			24,507		(11	)
Systems and communications		19,678			19,326		2
Advertising and promotional		15,391			17,437		(12	)
Travel and related		12,259			12,864		(5	)
Other		13,128			17,764		(26	)
Total general and administrative		272,885			293,245		(7	)
Amortization of deferred sales commissions		55,716			14,911		274
Amortization of intangible assets		10,673			10,494		2
Total Operating Expenses		511,120			488,399		5
Operating Income		336,516			307,374		9
Nonoperating Income (Expenses)
Investment income, net		3,422			1,966		74
Debt expense—recourse		(373	)		(491	)	(24	)
Debt expense—nonrecourse		(20,655	)		(4,215	)	390
Other, net		(143	)		(95	)	51
Total Nonoperating Expenses, net		(17,749	)		(2,835	)	526
Minority interest		9,951			10,206		(2	)
Income from continuing operations before income taxes		308,816			294,333		5
Income tax provision		113,514			106,272		7
Income from continuing operations		195,302			188,061		4
Discontinued operations, net of tax		2,120			3,424		(38	)
Net Income	$	197,422		$	191,485		3	%
Earnings Per Share—Basic
Income from continuing operations	$	1.81		$	1.74		4	%
Income from discontinued operations	$	0.02		$	0.03		(33	)%
Net Income*	$	1.83		$	1.78		3	%
Earnings Per Share—Diluted
Income from continuing operations	$	1.77		$	1.68		5	%
Income from discontinued operations	$	0.02		$	0.03		(33	)%
Net Income	$	1.79		$	1.71		5	%
Weighted-average shares outstanding
Basic		107,615			107,839
Diluted		110,410			112,059
Dividends declared per share	$	0.414		$	0.297

* May not sum due to rounding.

Federated Announces Preliminary Q4 and Year-End 2004 Results

February 3, 2005

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Preliminary Unaudited Condensed Consolidated Balance Sheets

(in thousands)

	December 31, 2004			December 31, 2003
Assets
Cash and other short-term investments	$	258,271		$	233,990
Other current assets		62,281			57,342
Deferred sales commissions, net		286,650			327,717
Intangible assets, net		311,974			226,268
Other long-term assets		33,564			33,911
Total Assets	$	952,740		$	879,228
Liabilities, Minority Interest and Shareholders’ Equity
Current liabilities	$	159,511		$	130,401
Long-term debt—recourse		8			542
Long-term debt—nonrecourse		284,915			327,142
Other long-term liabilities and minority interest		34,310			25,290
Shareholders’ equity excluding treasury stock		1,010,442			841,006
Treasury stock		(536,446	)		(445,153	)
Total Liabilities, Minority Interest and Shareholders’ Equity	$	952,740		$	879,228

Changes in Equity and Fixed-Income Fund Assets

(in millions)

	Quarter Ended December 31,						Year Ended December 31,
	2004			2003			2004			2003
Equity Funds
Beginning Assets	$	23,589		$	20,064		$	22,817		$	16,240
Sales		1,434			1,743			5,972			6,320
Redemptions		(1,468	)		(1,276	)		(5,532	)		(5,208	)
Net (redemptions) sales		(34	)		467			440			1,112
Net exchanges		28			66			257			298
Acquisition related		—			—			105			47
Other*		2,368			2,220			2,332			5,120
Ending Equity Fund Assets	$	25,951		$	22,817		$	25,951		$	22,817
Fixed-Income Funds
Beginning Assets	$	21,315		$	24,088		$	24,004		$	22,169
Sales		1,588			2,605			7,719			14,206
Redemptions		(2,004	)		(2,929	)		(11,209	)		(13,134	)
Net (redemptions) sales		(416	)		(324	)		(3,490	)		1,072
Net exchanges		(14	)		(11	)		11			(362	)
Acquisition related		—			—			220			118
Other*		252			251			392			1,007
Ending Fixed-Income Fund Assets	$	21,137		$	24,004		$	21,137		$	24,004

* Includes changes in the market value of securities held by the funds, reinvested dividends and distributions and net investment income.

Federated Announces Preliminary Q4 and Year-End 2004 Results

February 3, 2005

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(in millions)

MANAGED ASSETS	Dec. 31, 2004		Sept. 30, 2004		June 30, 2004		March 31, 2004		Dec. 31, 2003
By Asset Class
Equity	$	29,013	$	26,217	$	26,598	$	26,399	$	25,627
Fixed-income		25,953		25,926		25,858		29,498		29,517
Money market		124,302		125,474		131,385		138,005		142,773
Total Managed Assets	$	179,268	$	177,617	$	183,841	$	193,902	$	197,917
By Market
Trust	$	86,947	$	86,968	$	91,507	$	91,951	$	96,131
Broker/dealer*		47,706		45,103		45,570		47,982		48,023
Institutional*		23,135		23,400		24,418		28,220		30,330
International		2,855		2,606		2,486		2,658		2,452
Other		18,625		19,540		19,860		23,091		20,981
Total Managed Assets	$	179,268	$	177,617	$	183,841	$	193,902	$	197,917
By Product Type
Mutual Funds:
Equity	$	25,951	$	23,589	$	24,074	$	23,994	$	22,817
Fixed-income		21,137		21,315		21,473		23,824		24,004
Money market		110,559		112,672		117,543		121,788		128,878
Total Fund Assets	$	157,647	$	157,576	$	163,090	$	169,606	$	175,699
Separate Accounts:
Equity	$	3,062	$	2,628	$	2,524	$	2,405	$	2,810
Fixed-income		4,816		4,611		4,385		5,674		5,513
Money market		13,743		12,802		13,842		16,217		13,895
Total Separate Accounts	$	21,621	$	20,041	$	20,751	$	24,296	$	22,218
Total Managed Assets	$	179,268	$	177,617	$	183,841	$	193,902	$	197,917
AVERAGE MANAGED ASSETS	Quarter Ended
	Dec. 31, 2004		Sept. 30, 2004		June 30, 2004		March 31, 2004		Dec. 31, 2003
By Asset Class
Equity	$	27,659	$	25,746	$	26,104	$	26,394	$	24,250
Fixed-income		26,014		26,079		27,366		29,533		29,601
Money market		125,272		129,933		137,022		144,157		145,287
Total Avg. Assets	$	178,945	$	181,758	$	190,492	$	200,084	$	199,138
By Product Type
Mutual Funds:
Equity	$	24,793	$	23,207	$	23,686	$	23,623	$	21,676
Fixed-income		21,262		21,606		22,461		23,874		24,145
Money market		112,373		116,753		122,089		127,767		131,972
Total Avg. Fund Assets	$	158,428	$	161,566	$	168,236	$	175,264	$	177,793
Separate Accounts:
Equity	$	2,866	$	2,539	$	2,418	$	2,771	$	2,574
Fixed-income		4,752		4,473		4,905		5,659		5,456
Money market		12,899		13,180		14,933		16,390		13,315
Total Avg. Separate Acct.	$	20,517	$	20,192	$	22,256	$	24,820	$	21,345
Total Avg. Assets	$	178,945	$	181,758	$	190,492	$	200,084	$	199,138
ADMINISTERED ASSETS	Quarter Ended
	Dec. 31, 2004		Sept. 30, 2004		June 30, 2004		March 31, 2004		Dec. 31, 2003
Period End	$	37,164	$	36,289	$	43,566	$	43,660	$	43,428
Average**	$	36,558	$	41,024	$	43,331	$	43,920	$	43,754

* Certain amounts previously reported have been reclassified to conform with the current quarter’s presentation.

** Average administered assets for the quarter ended Sept. 30, 2004 were previously reported as $43,341 and have been corrected to $41,024.