Exhibit 99.1

Press Release

Federated Investors, Inc. Reports Second Quarter 2007 Earnings; Total Assets Reach Record $260 Billion

• Equity assets set new record high

• Revenue climbs to quarterly record $277 million

• Board declares $0.21 per share quarterly dividend

(PITTSBURGH, Pa., July 26, 2007) — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment managers, today reported earnings per diluted share from continuing operations (EPS) of $0.54 for the quarter ended June 30, 2007 compared to $0.44 for the quarter ended June 30, 2006, an increase of 23 percent. Federated reported YTD 2007 EPS of $1.04 compared to $0.86 per share for the same period in 2006. Federated’s income from continuing operations was $55.3 million for Q2 2007 compared to $46.7 million for Q2 2006. Federated’s YTD 2007 income from continuing operations was $107.0 million compared to $92.7 million for the same period in 2006.

Federated’s total managed assets were a record $259.7 billion at June 30, 2007, up $49.2 billion or 23 percent from $210.5 billion at June 30, 2006 and up $9.2 billion or 4 percent from the $250.5 billion reported at March 31, 2007. Through its mutual funds and separately managed accounts, Federated managed $66.3 billion in equity and fixed-income assets as of June 30, 2007, a 27 percent increase from $52.2 billion at June 30, 2006. Total average managed assets for Q2 2007 were $256.1 billion, up $42.2 billion or 20 percent from $213.9 billion reported for Q2 2006 and up $9.6 billion or 4 percent from $246.5 billion reported for Q1 2007.

“The environment for cash management products during the second quarter benefited Federated across our distribution channels, as the firm saw $8.6 billion in asset growth in our money market funds,” said J. Christopher Donahue, president and CEO. “Our flagship multi-sector bond fund, Federated Total Return Bond Fund, brings to bear the firm’s best ideas about different fixed-income asset classes and had strong gross and net flows during the quarter.”

Federated’s board of directors declared a quarterly dividend of $0.21 per share. The dividend is payable on Aug. 15, 2007 to shareholders of record as of Aug. 8, 2007. During Q2 2007, Federated purchased 271,257 shares of class B common stock for $9.6 million.

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 Reports Q2 Earnings

July 26, 2007

Page 2 of 8

Money market assets in both funds and separate accounts were a record $193.4 billion at June 30, 2007, up $35.1 billion or 22 percent from $158.3 billion at June 30, 2006 and up $7.4 billion or 4 percent from $186.0 billion at March 31, 2007. Money market mutual fund assets increased to a record $172.4 billion at the end of Q2 2007, up $30.4 billion or 21 percent from $142.0 billion at June 30, 2006 and up $8.6 billion or 5 percent from $163.8 billion at March 31, 2007.

Federated’s equity assets were a record $43.3 billion at June 30, 2007, up $12.8 billion or 42 percent from $30.5 billion at June 30, 2006 and up $2.0 billion or 5 percent from $41.3 billion at March 31, 2007. Federated’s top-selling equity mutual funds on a net basis were: Federated Strategic Value Fund, Federated Muni and Stock Advantage Fund, Federated Kaufmann Small Cap Fund, Federated MDT All Cap Core Fund and Federated Equity Income Fund. Federated continued to see growth in its equity separate account products, which had $197 million in net flows during Q2 2007.

Federated’s fixed-income assets were $23.0 billion at June 30, 2007, up $1.3 billion or 6 percent from $21.7 billion at June 30, 2006 and down slightly from $23.2 billion at March 31, 2007. Federated’s top-selling fixed-income mutual funds on a net basis were: Federated Total Return Bond Fund; Federated Mortgage Fund; Federated U.S. Government Securities Fund: 2-5 Years; and Federated Municipal High Yield Advantage Fund. Federated saw solid organic growth in its fixed-income separate account products, which had $54 million in net flows during Q2 2007.

Financial Summary

For Q2 2007, revenue increased by $40.1 million or 17 percent to a record $276.5 million compared to $236.4 million for the same quarter last year. The increase in revenue is primarily due to increases in revenue from average money market managed assets ($21.9 million); increases in average equity managed assets due to the MDT acquisition ($10.0 million); and increases in remaining average equity managed assets ($9.7 million). The increases were partially offset by a decrease in revenue from a change in the asset mix of average fixed-income managed assets ($1.1 million). For Q2 2007, Federated derived 48 percent of its revenue from money market assets, 40 percent from equity assets, 11 percent from fixed-income assets and 1 percent from other products and services.

Revenue for the first half of 2007 increased $65.7 million or 14 percent to $540.9 million compared to $475.2 million for the first half of 2006. The YTD revenue increase is primarily due to increases in revenue from average money market managed assets ($35.9 million); increases in average equity managed assets due to the MDT acquisition ($19.0 million); and increases in remaining average equity managed assets ($15.8 million). The increases were partially offset by a decrease in revenue from a change in the asset mix of average fixed-income managed assets ($3.7 million). For YTD 2007, Federated derived 48 percent of its revenue from money market assets, 40 percent from equity assets, 11 percent from fixed-income assets and 1 percent from other products and services.

Federated Reports Q2 Earnings

July 26, 2007

Page 3 of 8

Operating expenses for Q2 2007 increased by $26.8 million or 17 percent to $187.6 million compared to $160.8 million for Q2 2006. The increase in operating expenses was caused primarily by marketing and distribution expenses related to increased money market managed assets ($13.4 million) and direct operating expenses related to the MDT acquisition ($6.4 million). For the first half of 2007, operating expense increased by $42.9 million or 13 percent to $368.3 million compared to $325.4 million for the same period last year. Higher marketing and distribution expenses related to increased money market managed assets ($22.3 million) and the direct operating expenses of MDT ($13.3 million) drove YTD increases in operating expenses.

Federated will host an earnings conference call at 9 a.m. Eastern on July 27, 2007. Investors are invited to listen to Federated’s Q2 earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time for the teleconference. The call may also be accessed in real time on the Internet via the About Us section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and until Aug. 3, 2007 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 247443.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $259.7 billion in assets as of June 30, 2007. With 151 mutual funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 5,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 3 percent of money market fund managers in the industry, the top 8 percent of equity fund managers and the top 11 percent of fixed-income fund managers¹. For more information, visit FederatedInvestors.com.

###

1 Strategic Insight, May 31, 2007. Based on assets under management in open-end funds.

Federated Securities Corp. is distributor of the Federated funds.

Separately managed accounts are made available through Federated Investment Counseling and MDT Advisers, both registered investment advisors.

Federated Reports Q2 Earnings

July 26, 2007

Page 4 of 8

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Quarter Ended June 30,						% Change Q2 2006 to		Quarter Ended March 31,			% Change Q1 2007 to
	2007			2006			Q2 2007		2007			Q2 2007
Revenue
Investment advisory fees, net	$	177,381		$	146,487		21	%	$	169,176		5	%
Administrative service fees, net		41,208			36,082		14			39,292		5
Other service fees, net		56,499			52,099		8			54,367		4
Other, net		1,442			1,738		(17	)		1,579		(9	)
Total Revenue		276,530			236,406		17			264,414		5
Operating Expenses
Compensation and related		51,552			44,780		15			54,185		(5	)
General and administrative
Marketing and distribution		87,288			70,430		24			80,202		9
Professional service fees		9,310			8,422		11			7,638		22
Systems and communications		5,851			4,952		18			5,862		(0	)
Office and occupancy		5,325			4,976		7			5,515		(3	)
Advertising and promotional		4,241			3,794		12			2,896		46
Travel and related		3,706			3,346		11			2,738		35
Other		3,699			2,898		28			3,813		(3	)
Total general and administrative		119,420			98,818		21			108,664		10
Amortization of deferred sales commissions		12,074			13,018		(7	)		12,258		(2	)
Amortization of intangible assets		4,602			4,220		9			5,523		(17	)
Total Operating Expenses		187,648			160,836		17			180,630		4
Operating Income		88,882			75,570		18			83,784		6
Nonoperating Income (Expenses)
Investment income, net		1,657			3,074		(46	)		1,993		(17	)
Debt expense––recourse		(87	)		(65	)	34			(95	)	(8	)
Debt expense––nonrecourse		(1,360	)		(2,019	)	(33	)		(1,498	)	(9	)
Other, net		5			(1	)	600			—		100
Total Nonoperating Income, net		215			989		(78	)		400		(46	)
Minority interest		1,399			1,333		5			1,376		2
Income from continuing operations before income taxes		87,698			75,226		17			82,808		6
Income tax provision		32,421			28,570		13			31,045		4
Income from continuing operations		55,277			46,656		18			51,763		7
Discontinued operations, net of tax		—			3,265		(100	)		—		—
Net Income	$	55,277		$	49,921		11	%	$	51,763		7	%
Earnings Per Share—Basic
Income from continuing operations	$	0.55		$	0.44		25	%	$	0.51		8	%
Income from discontinued operations		—			0.03		(100	)		—		—
Net Income*	$	0.55		$	0.48		15	%	$	0.51		8	%
Earnings Per Share—Diluted
Income from continuing operations	$	0.54		$	0.44		23	%	$	0.50		8	%
Income from discontinued operations		—			0.03		(100	)		—		—
Net Income	$	0.54		$	0.47		15	%	$	0.50		8	%
Weighted-average shares outstanding
Basic		101,332			104,923					101,913
Diluted		103,094			107,078					103,606
Dividends declared per share	$	0.21		$	0.18				$	0.18

* May not sum due to rounding

Federated Reports Q2 Earnings

July 26, 2007

Page 5 of 8

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Six Months Ended June 30,						% Change
	2007			2006
Revenue
Investment advisory fees, net	$	346,558		$	294,541		18	%
Administrative service fees, net		80,499			72,181		12
Other service fees, net		110,866			104,976		6
Other, net		3,021			3,490		(13	)
Total Revenue		540,944			475,188		14
Operating Expenses
Compensation and related		105,737			94,356		12
General and administrative
Marketing and distribution		167,490			140,445		19
Professional service fees		16,948			16,009		6
Systems and communications		11,713			9,709		21
Office and occupancy		10,840			10,502		3
Advertising and promotional		7,137			7,746		(8	)
Travel and related		6,444			5,960		8
Other		7,511			5,747		31
Total general and administrative		228,083			196,118		16
Amortization of deferred sales commissions		24,332			26,526		(8	)
Amortization of intangible assets		10,126			8,446		20
Total Operating Expenses		368,278			325,446		13
Operating Income		172,666			149,742		15
Nonoperating Income (Expenses)
Investment income, net		3,651			6,287		(42	)
Debt expense––recourse		(181	)		(130	)	39
Debt expense––nonrecourse		(2,858	)		(4,171	)	(31	)
Other, net		5			(2	)	350
Total Nonoperating Income, net		617			1,984		(69	)
Minority interest		2,776			2,834		(2	)
Income from continuing operations before income taxes		170,507			148,892		15
Income tax provision		63,467			56,151		13
Income from continuing operations		107,040			92,741		15
Discontinued operations, net of tax		—			6,101		(100	)
Net Income	$	107,040		$	98,842		8	%
Earnings Per Share—Basic
Income from continuing operations	$	1.05		$	0.88		19	%
Income from discontinued operations		—			0.06		(100	)
Net Income	$	1.05		$	0.94		12	%
Earnings Per Share—Diluted
Income from continuing operations	$	1.04		$	0.86		21	%
Income from discontinued operations		—			0.06		(100	)
Net Income	$	1.04		$	0.92		13	%
Weighted-average shares outstanding
Basic		101,621			105,279
Diluted		103,349			107,600
Dividends declared per share	$	0.39		$	0.33

Federated Reports Q2 Earnings

July 26, 2007

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Unaudited Condensed Consolidated Balance Sheets

(in thousands)

	June 30, 2007			Dec. 31, 2006
Assets
Cash, restricted cash and other short-term investments	$	129,269		$	134,943
Other current assets		55,447			47,108
Deferred sales commissions, net		88,444			112,286
Intangible assets, net		529,881			488,650
Other long-term assets		35,982			27,307
Total Assets	$	839,023		$	810,294
Liabilities, Minority Interest and Shareholders’ Equity
Current liabilities	$	157,318		$	131,907
Long-term debt—nonrecourse		88,731			112,987
Other long-term liabilities and minority interest		37,754			36,025
Shareholders’ equity excluding treasury stock		1,295,889			1,224,161
Treasury stock		(740,669	)		(694,786	)
Total Liabilities, Minority Interest and Shareholders’ Equity	$	839,023		$	810,294

Federated Reports Q2 Earnings

July 26, 2007

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Changes in Equity and Fixed-Income Fund Assets

(in millions)

	Quarter Ended									Six Months Ended June 30,
	June 30, 2007			June 30, 2006			March 31, 2007			2007			2006
Equity Funds
Beginning assets	$	28,716		$	27,567		$	28,666		$	28,666		$	26,031
Sales		1,402			1,475			1,469			2,871			2,992
Redemptions		(1,839	)		(1,758	)		(1,973	)		(3,812	)		(3,680	)
Net redemptions		(437	)		(283	)		(504	)		(941	)		(688	)
Net exchanges		(20	)		(5	)		(12	)		(32	)		15
Acquisition related		0			0			0			0			376
Other*		1,767			(791	)		566			2,333			754
Ending assets	$	30,026		$	26,488		$	28,716		$	30,026		$	26,488
Fixed-Income Funds
Beginning assets	$	18,033		$	18,579		$	18,113		$	18,113		$	19,037
Sales		1,256			1,112			1,224			2,480			2,409
Redemptions		(1,391	)		(1,685	)		(1,503	)		(2,894	)		(3,422	)
Net redemptions		(135	)		(573	)		(279	)		(414	)		(1,013	)
Net exchanges		(5	)		(25	)		2			(3	)		(52	)
Other*		(124	)		(14	)		197			73			(5	)
Ending assets	$	17,769		$	17,967		$	18,033		$	17,769		$	17,967

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

Changes in Equity and Fixed-Income Separate Account Assets*

(in millions)

	Quarter Ended
	June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006
Equity Separate Accounts
Beginning assets	$	12,620	$	12,228	$	11,105	$	4,035
Net customer flows**		197		225		154		201
Acquisition related		0		0		0		6,420
Other**		501		167		969		449
Ending assets	$	13,318	$	12,620	$	12,228	$	11,105
Fixed-Income Separate Accounts
Beginning assets	$	5,128	$	4,789	$	3,647	$	3,708
Net customer flows**		54		236		1,062		(170	)
Other**		19		103		80		109
Ending assets	$	5,201	$	5,128	$	4,789	$	3,647

* Includes separately managed accounts (SMA), institutional accounts and sub-advised funds (variable annuity and other).

** For certain accounts, Net customer flows are calculated as the remaining difference between beginning and ending assets after the calculation of Other and the impact of Acquisition related. Other includes the approximate effect of changes in the market value of securities held in the portfolios, reinvested dividends and distributions and net investment income.

Federated began reporting Changes in Equity and Fixed-Income Separate Account Assets in Q3 2006; previous data is not available.

Federated Reports Q2 Earnings

July 26, 2007

Page 8 of 8

(in millions)
MANAGED ASSETS	June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006		June 30, 2006
By Asset Class
Equity	$	43,344	$	41,336	$	40,894	$	38,276	$	30,523
Fixed-income		22,970		23,162		22,902		21,659		21,675
Money market		193,362		185,952		173,644		162,808		158,319
Total Managed Assets	$	259,676	$	250,450	$	237,440	$	222,743	$	210,517
By Market
Wealth Management & Trust	$	113,625	$	109,364	$	106,350	$	102,878	$	100,935
Broker/Dealer		112,146		107,148		103,081		95,144		84,316
Global Institutional		24,083		24,764		20,785		18,905		19,507
Other		9,822		9,174		7,224		5,816		5,759
Total Managed Assets	$	259,676	$	250,450	$	237,440	$	222,743	$	210,517
By Product Type
Mutual Funds:
Equity	$	30,026	$	28,716	$	28,666	$	27,171	$	26,488
Fixed-income		17,769		18,033		18,113		18,012		17,967
Money market		172,430		163,841		155,183		146,841		142,023
Total Fund Assets	$	220,225	$	210,590	$	201,962	$	192,024	$	186,478
Separate Accounts:
Equity	$	13,318	$	12,620	$	12,228	$	11,105	$	4,035
Fixed-income		5,201		5,128		4,789		3,647		3,708
Money market		20,932		22,112		18,461		15,967		16,296
Total Separate Accounts	$	39,451	$	39,860	$	35,478	$	30,719	$	24,039
Total Managed Assets	$	259,676	$	250,450	$	237,440	$	222,743	$	210,517
AVERAGE MANAGED ASSETS	Quarter Ended
	June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006		June 30, 2006
By Asset Class
Equity	$	43,031	$	41,118	$	40,066	$	36,429	$	30,976
Fixed-income		23,109		23,002		22,624		21,685		21,986
Money market		189,917		182,352		169,008		161,558		160,977
Total Avg. Assets	$	256,057	$	246,472	$	231,698	$	219,672	$	213,939
By Product Type
Mutual Funds:
Equity	$	29,866	$	28,743	$	28,225	$	26,550	$	27,000
Fixed-income		17,942		18,013		18,150		18,023		18,244
Money market		168,253		160,325		152,192		145,840		143,794
Total Avg. Fund Assets	$	216,061	$	207,081	$	198,567	$	190,413	$	189,038
Separate Accounts:
Equity	$	13,165	$	12,375	$	11,841	$	9,879	$	3,976
Fixed-income		5,167		4,989		4,474		3,662		3,742
Money market		21,664		22,027		16,816		15,718		17,183
Total Avg. Separate Accts.	$	39,996	$	39,391	$	33,131	$	29,259	$	24,901
Total Avg. Assets	$	256,057	$	246,472	$	231,698	$	219,672	$	213,939
ADMINISTERED ASSETS	Quarter Ended
	June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006		June 30, 2006
Period End	$	17,986	$	17,783	$	17,778	$	18,423	$	18,224
Average	$	17,701	$	17,762	$	18,060	$	18,236	$	18,298