Exhibit 99.1

Press Release

Federated Investors, Inc. Reports Strong Third Quarter 2007 Earnings; Money Market Assets Climb to Record $210 Billion

• Total assets under management increase to record $276 billion

• Board declares $0.21 per share quarterly dividend

(PITTSBURGH, Pa., October 25, 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 $0.57 for the quarter ended Sept. 30, 2007 compared to $0.43 for the quarter ended Sept. 30, 2006, an increase of 33 percent. Federated reported YTD 2007 EPS of $1.60 compared to $1.29 per share for the same period in 2006. Federated’s income from continuing operations was $57.7 million for Q3 2007 compared to $45.2 million for Q3 2006. Federated’s YTD 2007 income from continuing operations was $164.8 million compared to $137.9 million for the same period in 2006. Federated’s Q3 2007 results include a non-recurring investment loss of $2.8 million, after-tax, that had an impact of $0.02 to the quarter’s EPS.

Federated’s total managed assets were a record $276.2 billion at Sept. 30, 2007, up $53.5 billion or 24 percent from $222.7 billion at Sept. 30, 2006 and up $16.5 billion or 6 percent from $259.7 billion reported at June 30, 2007. Through its mutual funds and separately managed accounts, Federated managed $66.3 billion in equity and fixed-income assets as of Sept. 30, 2007, an 11 percent increase from $59.9 billion at Sept. 30, 2006. Total average managed assets for Q3 2007 were $267.6 billion, up $47.9 billion or 22 percent from $219.7 billion reported for Q3 2006 and up $11.5 billion or 4 percent from $256.1 billion reported for Q2 2007.

“The long-term credit and risk management strength of Federated’s money market franchise positioned our products well for the unsettled credit markets of the third quarter. As a result, we were able to substantially grow our money market mutual fund assets,” said J. Christopher Donahue, president and CEO. “The economic outlook and market conditions are positive for growth in our money market funds.”

Federated’s board of directors declared a quarterly dividend of $0.21 per share. The dividend is payable on Nov. 15, 2007 to shareholders of record as of Nov. 8, 2007. During Q3 2007, Federated purchased 1,860,188 shares of class B common stock for $61.2 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 Q3 Earnings

Oct. 25, 2007

Page 2 of 8

Money market assets in both funds and separate accounts were a record $209.9 billion at Sept. 30, 2007, up $47.1 billion or 29 percent from $162.8 billion at Sept. 30, 2006 and up $16.5 billion or 9 percent from $193.4 billion at June 30, 2007. Money market mutual fund assets increased to a record $190.0 billion at the end of Q3 2007, up $43.2 billion or 29 percent from $146.8 billion at Sept. 30, 2006 and up $17.6 billion or 10 percent from $172.4 billion at June 30, 2007.

Federated’s equity assets were a record $43.5 billion at Sept. 30, 2007, up $5.2 billion or 14 percent from $38.3 billion at Sept. 30, 2006 and up slightly from $43.3 billion at June 30, 2007. Federated’s top-selling equity mutual funds on a net basis were: Federated International Small Company Fund, Federated InterContinental Fund, Federated Kaufmann Small Cap Fund, Federated MDT All Cap Core Fund and Federated Muni and Stock Advantage Fund.

Federated’s fixed-income assets were $22.8 billion at Sept. 30, 2007, up $1.1 billion or 5 percent from $21.7 billion at Sept. 30, 2006 and down slightly from $23.0 billion at June 30, 2007. Federated’s top-selling fixed-income mutual funds on a net basis were: Federated Government Ultrashort Duration Fund; Federated U.S. Government Securities Fund: 1-3 Years; Federated Total Return Bond Fund; Federated North Carolina Municipal Income Fund; and Federated International Bond Fund.

Financial Summary

For Q3 2007, revenue increased by $42.1 million or 17 percent to a record $286.0 million compared to $243.9 million for the same quarter last year. The increase in revenue is primarily due to increases in revenue from average money market managed assets ($28.3 million) and increases in average equity managed assets ($16.2 million). The increases were partially offset by a decrease in revenue from a change in the asset mix of average fixed-income managed assets ($1.6 million). For Q3 2007, Federated derived 50 percent of its revenue from money market assets, 39 percent from equity assets, 10 percent from fixed-income assets and 1 percent from other products and services.

Revenue for the first nine months of 2007 increased $107.8 million or 15 percent to $826.9 million compared to $719.1 million for the same period in 2006. The YTD revenue increase is primarily due to increases in revenue from average money market managed assets ($64.6 million); increases in average equity managed assets due to the July 2006 acquisition of MDT Advisers ($23.5 million); and increases in remaining average equity managed assets ($26.7 million). The revenue increases were partially offset by a decrease in revenue from a change in the mix of average fixed-income managed assets ($5.2 million). For YTD 2007, Federated derived 49 percent of its revenue from money market assets, 39 percent from equity assets, 11 percent from fixed-income assets and 1 percent from other products and services.

Operating expenses for Q3 2007 increased by $18.2 million or 11 percent to $188.2 million compared to $170.0 million for Q3 2006. The increase in operating expenses was caused primarily by marketing and distribution expenses related to increased average money market managed assets ($15.8 million) and increased incentive compensation expense ($4.2 million).

Federated Reports Q3 Earnings

Oct. 25, 2007

Page 3 of 8

For the first nine months of 2007, operating expenses increased by $61.1 million or 12 percent to $556.5 million compared to $495.4 million for the same period last year. Higher marketing and distribution expenses related to increased average money market managed assets ($37.9 million); the direct operating expenses of MDT ($13.7 million); and increases in other incentive compensation expense ($7.8 million) drove YTD increases in operating expenses.

Nonoperating expenses increased $4.2 million and $5.6 million for the three and nine months ended Sept. 30, 2007, respectively, compared to the same periods of 2006. These increases were primarily related to a non-recurring $4.9 million, pre-tax, or $2.8 million after-tax investment loss incurred in a Federated-sponsored private placement product during Q3 2007.

Federated will host an earnings conference call at 9 a.m. Eastern on Friday, Oct. 26, 2007. Investors are invited to listen to Federated’s Q3 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 Nov. 2, 2007 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 257326.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $276.2 billion in assets as of Sept. 30, 2007. With 150 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 2 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, Aug. 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.

Certain statements in this press release, such as those related to the economic outlook, market conditions and the prospect for money market fund growth, 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 to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks are that the economic outlook and market conditions remain conducive for money market fund growth, as well as the risk factors discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange Commission. Many of these factors may be impacted 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 Reports Q3 Earnings

Oct. 25, 2007

Page 4 of 8

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Quarter Ended Sept. 30,						% Change Q3 2006 to		Quarter Ended June 30,			% Change Q2 2007 to
	2007			2006			Q3 2007		2007			Q3 2007
Revenue
Investment advisory fees, net	$	184,898		$	153,713		20	%	$	177,381		4	%
Administrative service fees, net		43,808			36,864		19			41,208		6
Other service fees, net		56,416			51,813		9			56,499		(0	)
Other, net		843			1,545		(45	)		1,442		(42	)
Total Revenue		285,965			243,935		17			276,530		3
Operating Expenses
Compensation and related		52,139			48,099		8			51,552		1
General and administrative
Marketing and distribution		90,839			72,172		26			87,288		4
Professional service fees		7,525			10,040		(25	)		9,310		(19	)
Systems and communications		5,753			5,757		(0	)		5,851		(2	)
Office and occupancy		5,335			5,917		(10	)		5,325		0
Advertising and promotional		3,566			3,650		(2	)		4,241		(16	)
Travel and related		2,889			2,900		(0	)		3,706		(22	)
Other		4,072			3,460		18			3,699		10
Total general and administrative		119,979			103,896		15			119,420		0
Amortization of deferred sales commissions		11,298			12,600		(10	)		12,074		(6	)
Amortization of intangible assets		4,763			5,389		(12	)		4,602		3
Total Operating Expenses		188,179			169,984		11			187,648		0
Operating Income		97,786			73,951		32			88,882		10
Nonoperating (Expenses) Income
Investment (loss) income, net		(2,975	)		1,958		(252	)		1,657		(280	)
Debt expense––recourse		(93	)		(157	)	(41	)		(87	)	7
Debt expense––nonrecourse		(1,205	)		(1,846	)	(35	)		(1,360	)	(11	)
Other, net		(1	)		—		(100	)		5		(120	)
Total Nonoperating (Expenses) Income, net		(4,274	)		(45	)	9,398			215		(2,088	)
Minority interest		1,470			1,359		8			1,399		5
Income from continuing operations before income taxes		92,042			72,547		27			87,698		5
Income tax provision		34,315			27,383		25			32,421		6
Income from continuing operations		57,727			45,164		28			55,277		4
Discontinued operations, net of tax		—			445		(100	)		—		—
Net Income	$	57,727		$	45,609		27	%	$	55,277		4	%
Earnings Per Share—Basic
Income from continuing operations	$	0.57		$	0.44		30	%	$	0.55		4	%
Income from discontinued operations		—			—		—			—		—
Net Income	$	0.57		$	0.44		30	%	$	0.55		4	%
Earnings Per Share—Diluted
Income from continuing operations	$	0.57		$	0.43		33	%	$	0.54		6	%
Income from discontinued operations		—			—		—			—		—
Net Income	$	0.57		$	0.43		33	%	$	0.54		6	%
Weighted-average shares outstanding
Basic		100,433			103,587					101,332
Diluted		102,095			105,342					103,094
Dividends declared per share	$	0.21		$	0.18				$	0.21

Federated Reports Q3 Earnings

Oct. 25, 2007

Page 5 of 8

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Nine Months Ended Sept. 30,						% Change
	2007			2006
Revenue
Investment advisory fees, net	$	531,457		$	448,254		19	%
Administrative service fees, net		124,307			109,045		14
Other service fees, net		167,281			156,789		7
Other, net		3,864			5,035		(23	)
Total Revenue		826,909			719,123		15
Operating Expenses
Compensation and related		157,876			142,456		11
General and administrative
Marketing and distribution		258,329			212,617		21
Professional service fees		24,473			26,050		(6	)
Systems and communications		17,466			15,465		13
Office and occupancy		16,175			16,419		(1	)
Advertising and promotional		10,703			11,396		(6	)
Travel and related		9,332			8,860		5
Other		11,583			9,206		26
Total general and administrative		348,061			300,013		16
Amortization of deferred sales commissions		35,631			39,126		(9	)
Amortization of intangible assets		14,889			13,835		8
Total Operating Expenses		556,457			495,430		12
Operating Income		270,452			223,693		21
Nonoperating (Expenses) Income
Investment income, net		675			8,245		(92	)
Debt expense––recourse		(274	)		(287	)	(5	)
Debt expense––nonrecourse		(4,062	)		(6,017	)	(32	)
Other, net		3			(2	)	250
Total Nonoperating (Expenses) Income, net		(3,658	)		1,939		(289	)
Minority interest		4,245			4,193		1
Income from continuing operations before income taxes		262,549			221,439		19
Income tax provision		97,781			83,533		17
Income from continuing operations		164,768			137,906		19
Discontinued operations, net of tax		—			6,545		(100	)
Net Income	$	164,768		$	144,451		14	%
Earnings Per Share—Basic
Income from continuing operations	$	1.63		$	1.32		23	%
Income from discontinued operations		—			0.06		(100	)
Net Income	$	1.63		$	1.38		18	%
Earnings Per Share—Diluted
Income from continuing operations	$	1.60		$	1.29		24	%
Income from discontinued operations		—			0.06		(100	)
Net Income	$	1.60		$	1.35		19	%
Weighted-average shares outstanding
Basic		101,221			104,711
Diluted		102,927			106,843
Dividends declared per share	$	0.60		$	0.51

Federated Reports Q3 Earnings

Oct. 25, 2007

Page 6 of 8

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

	Sept. 30, 2007			Dec. 31, 2006
Assets
Cash, restricted cash and other short-term investments	$	87,142		$	134,943
Other current assets		55,321			47,108
Deferred sales commissions, net		75,680			112,286
Intangible assets, net		534,816			488,650
Other long-term assets		35,291			27,307
Total Assets	$	788,250		$	810,294
Liabilities, Minority Interest and Shareholders’ Equity
Current liabilities	$	135,652		$	131,907
Long-term debt—nonrecourse		76,096			112,987
Other long-term liabilities and minority interest		37,053			36,025
Shareholders’ equity excluding treasury stock		1,332,067			1,224,161
Treasury stock		(792,618	)		(694,786	)
Total Liabilities, Minority Interest and Shareholders’ Equity	$	788,250		$	810,294

Federated Reports Q3 Earnings

Oct. 25, 2007

Page 7 of 8

Changes in Equity and Fixed-Income Fund Assets

(in millions)

	Quarter Ended									Nine Months Ended Sept. 30,
	Sept. 30, 2007			Sept. 30, 2006			June 30, 2007			2007			2006
Equity Funds
Beginning assets	$	30,026		$	26,488		$	28,716		$	28,666		$	26,031
Sales		1,269			1,457			1,402			4,140			4,450
Redemptions		(1,959	)		(1,610	)		(1,839	)		(5,771	)		(5,291	)
Net redemptions		(690	)		(153	)		(437	)		(1,631	)		(841	)
Net exchanges		(20	)		(7	)		(20	)		(53	)		8
Acquisition related		366			267			0			366			643
Other*		413			576			1,767			2,747			1,330
Ending assets	$	30,095		$	27,171		$	30,026		$	30,095		$	27,171
Fixed-Income Funds
Beginning assets	$	17,769		$	17,967		$	18,033		$	18,113		$	19,037
Sales		1,191			1,039			1,256			3,671			3,448
Redemptions		(1,445	)		(1,453	)		(1,391	)		(4,339	)		(4,875	)
Net redemptions		(254	)		(414	)		(135	)		(668	)		(1,427	)
Net exchanges		(6	)		(5	)		(5	)		(9	)		(58	)
Acquisition related		0			34			0			0			34
Other*		266			430			(124	)		339			426
Ending assets	$	17,775		$	18,012		$	17,769		$	17,775		$	18,012

* 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
	Sept. 30, 2007			June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006
Equity Separate Accounts
Beginning assets	$	13,318		$	12,620	$	12,228	$	11,105	$	4,035
Net customer flows**		(126	)		197		225		154		201
Acquisition related		0			0		0		0		6,420
Other**		230			501		167		969		449
Ending assets	$	13,422		$	13,318	$	12,620	$	12,228	$	11,105
Fixed-Income Separate Accounts
Beginning assets	$	5,201		$	5,128	$	4,789	$	3,647	$	3,708
Net customer flows**		(370	)		54		236		1,062		(170	)
Other**		146			19		103		80		109
Ending assets	$	4,977		$	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 Q3 Earnings

Oct. 25, 2007

Page 8 of 8

(in millions)

MANAGED ASSETS	Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006
By Asset Class
Equity	$	43,517	$	43,344	$	41,336	$	40,894	$	38,276
Fixed-income		22,752		22,970		23,162		22,902		21,659
Money market		209,908		193,362		185,952		173,644		162,808
Total Managed Assets	$	276,177	$	259,676	$	250,450	$	237,440	$	222,743
By Market
Wealth Management & Trust	$	127,854	$	113,625	$	109,364	$	106,350	$	102,878
Broker/Dealer		114,686		112,146		107,148		103,081		95,144
Global Institutional		23,428		24,083		24,764		20,785		18,905
Other		10,209		9,822		9,174		7,224		5,816
Total Managed Assets	$	276,177	$	259,676	$	250,450	$	237,440	$	222,743
By Product Type
Mutual Funds:
Equity	$	30,095	$	30,026	$	28,716	$	28,666	$	27,171
Fixed-income		17,775		17,769		18,033		18,113		18,012
Money market		190,011		172,430		163,841		155,183		146,841
Total Fund Assets	$	237,881	$	220,225	$	210,590	$	201,962	$	192,024
Separate Accounts:
Equity	$	13,422	$	13,318	$	12,620	$	12,228	$	11,105
Fixed-income		4,977		5,201		5,128		4,789		3,647
Money market		19,897		20,932		22,112		18,461		15,967
Total Separate Accounts	$	38,296	$	39,451	$	39,860	$	35,478	$	30,719
Total Managed Assets	$	276,177	$	259,676	$	250,450	$	237,440	$	222,743
AVERAGE MANAGED ASSETS	Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006
By Asset Class
Equity	$	42,731	$	43,031	$	41,118	$	40,066	$	36,429
Fixed-income		22,680		23,109		23,002		22,624		21,685
Money market		202,141		189,917		182,352		169,008		161,558
Total Avg. Assets	$	267,552	$	256,057	$	246,472	$	231,698	$	219,672
By Product Type
Mutual Funds:
Equity	$	29,570	$	29,866	$	28,743	$	28,225	$	26,550
Fixed-income		17,701		17,942		18,013		18,150		18,023
Money market		181,808		168,253		160,325		152,192		145,840
Total Avg. Fund Assets	$	229,079	$	216,061	$	207,081	$	198,567	$	190,413
Separate Accounts:
Equity	$	13,161	$	13,165	$	12,375	$	11,841	$	9,879
Fixed-income		4,979		5,167		4,989		4,474		3,662
Money market		20,333		21,664		22,027		16,816		15,718
Total Avg. Separate Accts.	$	38,473	$	39,996	$	39,391	$	33,131	$	29,259
Total Avg. Assets	$	267,552	$	256,057	$	246,472	$	231,698	$	219,672
ADMINISTERED ASSETS	Quarter Ended
	Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006		Sept. 30, 2006
Period End	$	19,312	$	17,986	$	17,783	$	17,778	$	18,423
Average	$	18,378	$	17,701	$	17,762	$	18,060	$	18,236