Exhibit 99.1

Press Release

Federated Investors, Inc. Reports Fourth Quarter and Year-End 2007 Earnings

• Total managed assets exceed $300 billion

• 2007 revenue surpasses $1 billion

• Money market assets increase $63 billion in 2007 to record $237 billion

(PITTSBURGH, Pa., January 24, 2008) — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment managers, today reported earnings per diluted share from continuing operations (EPS) of $0.52 for the quarter ended Dec. 31, 2007 compared to $0.51 for the quarter ended Dec. 31, 2006. Federated’s Q4 2007 results include a $15 million pre-tax charge, or approximately $0.09 per share after tax, for compensation expenses related to new employment agreements with certain Federated Kaufmann employees¹ and a $1.2 million pre-tax charge, or approximately $0.01 per share after tax, related to a write-down on the firm’s investment in a Federated-managed collateralized debt obligation product. Federated’s income from continuing operations was $52.7 million for Q4 2007 compared to $53.1 million for Q4 2006.

For the year ended Dec. 31, 2007, Federated reported EPS of $2.12 compared to $1.80 for 2006. For the year ended Dec. 31, 2007, income from continuing operations was $217.5 million compared to $191.0 million for 2006.

Federated’s total managed assets reached a record $301.6 billion at Dec. 31, 2007, up $64.2 billion or 27 percent from $237.4 billion at Dec. 31, 2006 and up $25.4 billion or 9 percent from $276.2 billion at Sept. 30, 2007. The increase in total managed assets was due in large part to a $63.0 billion increase in money market assets during 2007. Average managed assets for Q4 2007 were $290.1 billion, up $58.4 billion or 25 percent from $231.7 billion reported for Q4 2006 and up $22.5 billion or 8 percent from $267.6 billion reported for Q3 2007.

“Federated’s unprecedented money market asset growth during 2007 demonstrated the confidence that our fund shareholders have in the stability of our money market funds,” said President and CEO J. Christopher Donahue. “Federated’s history of strong credit analysis has served us well in the recent environment for money market funds.”

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 Q4 and Year-End 2007 Earnings

Jan. 24, 2008

Page 2 of 9

The company also announced that its board of directors declared a quarterly dividend of $0.21 per share. The dividend is payable on Feb. 15, 2008 to shareholders of record as of Feb. 8, 2008. During Q4 2007, Federated purchased 70,000 shares of Federated class B common stock for $2.6 million. For 2007, the company purchased 3,430,708 shares for $116.4 million.

Money market assets reached a record $236.6 billion at Dec. 31, 2007, up $63.0 billion or 36 percent from $173.6 billion at Dec. 31, 2006 and up $26.7 billion or 13 percent from $209.9 billion at Sept. 30, 2007. Average money market assets were $224.3 billion for Q4 2007, up $55.3 billion or 33 percent from $169.0 billion for Q4 2006 and up $22.2 billion or 11 percent from $202.1 billion for Q3 2007. Money market mutual fund assets were $215.0 billion at the end of Q4 2007, up $59.8 billion or 39 percent from $155.2 billion at Dec. 31, 2006 and up $25.0 billion or 13 percent from $190.0 billion at Sept. 30, 2007.

Federated’s equity assets were $42.2 billion at Dec. 31, 2007, up $1.3 billion or 3 percent from $40.9 billion at Dec. 31, 2006 and down $1.3 billion or 3 percent from $43.5 billion at Sept. 30, 2007. Federated’s top-selling equity mutual funds on a net basis were: Federated InterContinental Fund; Federated Capital Appreciation Fund II; Federated MDT Small Cap Growth Fund; Federated MDT Large Cap Growth Fund; and Federated MDT All Cap Core Fund.

Federated’s fixed-income assets were $22.8 billion at Dec. 31, 2007, down slightly from $22.9 billion at Dec. 31, 2006 and up slightly from Sept. 30, 2007. Federated’s top-selling fixed-income mutual funds on a net basis were: Federated Total Return Bond Fund; Federated Total Return Government Bond Fund; Federated U.S. Government Securities Fund: 2-5 Years; Federated U.S. Government Securities Fund: 1-3 Years; and Federated Institutional High Yield Bond Fund.

Financial Summary

For Q4 2007, revenue increased $40.6 million or 16 percent to $300.3 million compared to $259.7 million for the same quarter last year. The increase is primarily due to increases in revenue from average money market assets under management ($34.0 million) and from average equity assets under management ($9.9 million). The increases were partially offset by a decrease in revenue from a change in the mix of average fixed-income assets under management ($1.8 million). For Q4 2007, Federated derived 52 percent of its revenue from money market assets, 37 percent from equity assets, 10 percent from fixed-income assets and 1 percent from other products and services.

Revenue for 2007 increased $148.8 million or 15 percent to $1.1 billion compared to $978.9 million for 2006 primarily due to increases in average money market assets under management ($98.6 million); increases in average equity assets under management primarily related to the July 2006 acquisition of MDT Advisers ($26.8 million); and increases in remaining average equity assets under management ($33.3 million). The increases were partially offset by a decrease in revenue from a change in the mix of average fixed-income assets under management ($6.9 million). For 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.

Federated Reports Q4 and Year-End 2007 Earnings

Jan. 24, 2008

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Operating expenses for Q4 2007 increased by $39.0 million or 22 percent to $214.0 million compared to $175.0 million for Q4 2006. The increase in operating expenses was primarily attributable to the increase in marketing and distribution expenses related to increased average money market managed assets ($17.7 million); the previously mentioned increase in compensation expense for new employment agreements with certain Federated Kaufmann employees ($15 million); and an increase in other incentive compensation expense ($4.0 million).

For 2007, operating expenses increased by $100.1 million or 15 percent to $770.5 million compared to $670.4 million for 2006. The increase in operating expenses was primarily attributable to the increase in marketing and distribution expenses related to increased average money market managed assets ($55.6 million); the direct operating expenses of MDT Advisers, which Federated acquired in July 2006 ($15.0 million); the previously mentioned increase in compensation expense for new employment agreements with certain Federated Kaufmann employees ($15 million); and an increase in other increased incentive compensation expense ($10.9 million).

Nonoperating expenses increased $6.6 million in 2007 compared to 2006. This increase was primarily related to a non-recurring $4.9 million investment loss incurred in a Federated-sponsored private placement product during Q3 2007 and the previously mentioned $1.2 million write-down in Q4 2007 related to the firm’s investment in a Federated-managed collateralized debt obligation product.

Federated will host an earnings conference call at 9 a.m. Eastern on Friday, Jan. 25, 2008. Investors are invited to listen to Federated’s Q4 2007 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 Feb. 1, 2008 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering access code 286 and conference ID code 268430.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $301.6 billion in assets as of Dec. 31, 2007. With 148 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 managers². For more information, visit FederatedInvestors.com.

###

1) For more information about the new employment agreements with certain Federated Kaufmann employees, please see Federated’s Form 8-K dated Jan. 4, 2008 that is filed with the U.S. Securities and Exchange Commission.

2) Strategic Insight, Nov. 30, 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 Global Investment Management, Federated Investment Counseling and Federated MDTA LLC, each a registered investment advisor.

Federated Reports Q4 and Year-End 2007 Earnings

Jan. 24, 2008

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Certain statements in this press release, such as those related to investor confidence, 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 investor confidence may vary depending on the economic outlook, market conditions and the performance of company products, 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 Q4 and Year-End 2007 Earnings

Jan. 24, 2008

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Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Quarter Ended Dec. 31,						% Change Q4 2006 to Q4 2007		Quarter Ended Sept. 30, 2007			% Change Q3 2007 to Q4 2007
	2007			2006
Revenue
Investment advisory fees, net	$	195,002		$	166,182		17	%	$	184,898		5	%
Administrative service fees, net		47,541			38,820		22			43,808		9
Other service fees, net		56,480			53,294		6			56,416		0
Other, net		1,269			1,440		(12	)		1,286		(1	)
Total Revenue		300,292			259,736		16			286,408		5
Operating Expenses
Compensation and related		71,212			49,626		43			52,139		37
General and administrative
Marketing and distribution		96,078			74,413		29			90,839		6
Professional service fees		8,788			9,516		(8	)		7,525		17
Systems and communications		5,943			5,461		9			5,753		3
Office and occupancy		5,895			5,366		10			5,335		10
Advertising and promotional		3,688			3,745		(2	)		3,566		3
Travel and related		3,519			3,502		0			2,889		22
Other		3,231			5,455		(41	)		4,072		(21	)
Total general and administrative		127,142			107,458		18			119,979		6
Amortization of deferred sales commissions		10,826			12,697		(15	)		11,298		(4	)
Amortization of intangible assets		4,814			5,176		(7	)		4,763		1
Total Operating Expenses		213,994			174,957		22			188,179		14
Operating Income		86,298			84,779		2			98,229		(12	)
Nonoperating Income (Expenses)
Investment income, net		704			1,841		(62	)		(2,975	)	124
Debt expense—recourse		(97	)		(195	)	(50	)		(93	)	4
Debt expense—nonrecourse		(1,039	)		(1,688	)	(38	)		(1,205	)	(14	)
Other, net		(217	)		(3	)	7,133			(444	)	(51	)
Total Nonoperating Expenses, net		(649	)		(45	)	1,342			(4,717	)	(86	)
Minority interest		1,519			1,406		8			1,470		3
Income from continuing operations before income taxes		84,130			83,328		1			92,042		(9	)
Income tax provision		31,426			30,185		4			34,315		(8	)
Income from continuing operations		52,704			53,143		(1	)		57,727		(9	)
Discontinued operations, net of tax		—			135		(100	)		—		—
Net Income	$	52,704		$	53,278		(1	)%	$	57,727		(9	)%
Earnings Per Share—Basic
Income from continuing operations	$	0.53		$	0.52		2	%	$	0.57		(7	)%
Income from discontinued operations		—			0.00		—			—		—
Net Income	$	0.53		$	0.52		2	%	$	0.57		(7	)%
Earnings Per Share—Diluted
Income from continuing operations	$	0.52		$	0.51		2	%	$	0.57		(9	)%
Income from discontinued operations		—			0.00		—			—		—
Net Income	$	0.52		$	0.51		2	%	$	0.57		(9	)%
Weighted-average shares outstanding
Basic		99,764			103,050					100,433
Diluted		101,653			104,636					102,095
Dividends declared per share	$	0.21		$	0.18				$	0.21

Federated Reports Q4 and Year-End 2007 Earnings

Jan. 24, 2008

Page 6 of 9

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Year Ended Dec. 31,						% Change
	2007			2006
Revenue
Investment advisory fees, net	$	726,459		$	614,436		18	%
Administrative service fees, net		171,847			147,865		16
Other service fees, net		223,761			210,082		7
Other, net		5,577			6,475		(14	)
Total Revenue		1,127,644			978,858		15
Operating Expenses
Compensation and related		229,088			192,082		19
General and administrative
Marketing and distribution		354,407			287,030		23
Professional service fees		33,262			35,566		(6	)
Systems and communications		23,409			20,926		12
Office and occupancy		22,069			21,785		1
Advertising and promotional		14,391			15,141		(5	)
Travel and related		12,852			12,362		4
Other		14,815			14,661		1
Total general and administrative		475,205			407,471		17
Amortization of deferred sales commissions		46,456			51,822		(10	)
Amortization of intangible assets		19,702			19,011		4
Total Operating Expenses		770,451			670,386		15
Operating Income		357,193			308,472		16
Nonoperating Income (Expenses)
Investment income, net		1,379			10,086		(86	)
Debt expense—recourse		(371	)		(482	)	(23	)
Debt expense—nonrecourse		(5,101	)		(7,704	)	(34	)
Other, net		(657	)		(6	)	10,850
Total Nonoperating (Expenses) Income, net		(4,750	)		1,894		(351	)
Minority interest		5,765			5,599		3
Income from continuing operations before income taxes		346,678			304,767		14
Income tax provision		129,207			113,719		14
Income from continuing operations		217,471			191,048		14
Discontinued operations, net of tax*		—			6,681		(100	)
Net Income	$	217,471		$	197,729		10	%
Earnings Per Share—Basic
Income from continuing operations	$	2.16		$	1.83		18	%
Income from discontinued operations*		—			0.06		(100	)
Net Income**	$	2.16		$	1.90		14	%
Earnings Per Share—Diluted
Income from continuing operations	$	2.12		$	1.80		18	%
Income from discontinued operations*		—			0.06		(100	)
Net Income	$	2.12		$	1.86		14	%
Weighted-average shares outstanding
Basic		100,855			104,293
Diluted		102,606			106,288
Dividends declared per share	$	0.81		$	0.69

* Discontinued operations for 2006 reflects the after-tax gain on the sale of Federated’s trade-clearing business ($3.7 million), the reversal of a related deferred tax asset valuation allowance ($2.1 million) and after-tax operating income ($0.9 million) of Federated’s trade-clearing operations.

** May not sum due to rounding.

Federated Reports Q4 and Year-End 2007 Earnings

Jan. 24, 2008

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Unaudited Condensed Consolidated Balance Sheets

(in thousands)

	Dec. 31, 2007			Dec. 31, 2006
Assets
Cash, restricted cash and other short-term investments	$	146,271		$	134,943
Other current assets		60,020			47,108
Deferred sales commissions, net		64,227			112,286
Intangible assets, net, and goodwill		534,603			488,650
Other long-term assets		35,850			27,307
Total Assets	$	840,971		$	810,294
Liabilities, Minority Interest and Shareholders’ Equity
Current liabilities	$	164,571		$	131,907
Long-term debt—nonrecourse		62,701			112,987
Other long-term liabilities and minority interest		39,684			36,025
Shareholders’ equity excluding treasury stock		1,367,963			1,224,161
Treasury stock		(793,948	)		(694,786	)
Total Liabilities, Minority Interest and Shareholders’ Equity	$	840,971		$	810,294

Federated Reports Q4 and Year-End 2007 Earnings

Jan. 24, 2008

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Changes in Equity and Fixed-Income Fund Managed Assets

(in millions)

	Quarter Ended									Year Ended Dec. 31,
	Dec. 31, 2007			Dec. 31, 2006			Sept. 30, 2007			2007			2006
Equity Funds
Beginning assets	$	30,095		$	27,171		$	30,026		$	28,666		$	26,031
Sales		1,328			1,401			1,269			5,468			5,851
Redemptions		(1,992	)		(1,772	)		(1,959	)		(7,763	)		(7,062	)
Net redemptions		(664	)		(371	)		(690	)		(2,295	)		(1,211	)
Net exchanges		(34	)		(13	)		(20	)		(86	)		(5	)
Acquisition related		0			0			366			366			643
Other*		(252	)		1,879			413			2,494			3,208
Ending assets	$	29,145		$	28,666		$	30,095		$	29,145		$	28,666
Fixed-Income Funds
Beginning assets	$	17,775		$	18,012		$	17,769		$	18,113		$	19,037
Sales		1,240			1,089			1,191			4,911			4,537
Redemptions		(1,312	)		(1,330	)		(1,445	)		(5,651	)		(6,205	)
Net redemptions		(72	)		(241	)		(254	)		(740	)		(1,668	)
Net exchanges		15			80			(6	)		6			22
Acquisition related		0			73			0			0			107
Other*		225			189			266			564			615
Ending assets	$	17,943		$	18,113		$	17,775		$	17,943		$	18,113

* Includes the approximate effect of 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
	Dec. 31, 2007			Sept. 30, 2007			June 30, 2007		March 31, 2007		Dec. 31, 2006
Equity Separate Accounts
Beginning assets	$	13,422		$	13,318		$	12,620	$	12,228	$	11,105
Net customer flows**		(200	)		(126	)		197		225		154
Other**		(205	)		230			501		167		969
Ending assets	$	13,017		$	13,422		$	13,318	$	12,620	$	12,228
Fixed-Income Separate Accounts
Beginning assets	$	4,977		$	5,201		$	5,128	$	4,789	$	3,647
Net customer flows**		(210	)		(370	)		54		236		1,062
Other**		114			146			19		103		80
Ending assets	$	4,881		$	4,977		$	5,201	$	5,128	$	4,789

* Includes separately managed accounts, 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. 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 Reports Q4 and Year-End 2007 Earnings

Jan. 24, 2008

Page 9 of 9

(in millions)

MANAGED ASSETS	Dec. 31, 2007		Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006
By Asset Class
Equity	$	42,162	$	43,517	$	43,344	$	41,336	$	40,894
Fixed-income		22,824		22,752		22,970		23,162		22,902
Money market		236,630		209,908		193,362		185,952		173,644
Total Managed Assets	$	301,616	$	276,177	$	259,676	$	250,450	$	237,440
By Market
Wealth Management & Trust	$	143,881	$	127,854	$	113,625	$	109,364	$	106,350
Broker/Dealer		120,627		114,686		112,146		107,148		103,081
Global Institutional		25,057		23,428		24,083		24,764		20,785
Other		12,051		10,209		9,822		9,174		7,224
Total Managed Assets	$	301,616	$	276,177	$	259,676	$	250,450	$	237,440
By Product Type
Mutual Funds:
Equity	$	29,145	$	30,095	$	30,026	$	28,716	$	28,666
Fixed-income		17,943		17,775		17,769		18,033		18,113
Money market		215,003		190,011		172,430		163,841		155,183
Total Fund Assets	$	262,091	$	237,881	$	220,225	$	210,590	$	201,962
Separate Accounts:
Equity	$	13,017	$	13,422	$	13,318	$	12,620	$	12,228
Fixed-income		4,881		4,977		5,201		5,128		4,789
Money market		21,627		19,897		20,932		22,112		18,461
Total Separate Accounts	$	39,525	$	38,296	$	39,451	$	39,860	$	35,478
Total Managed Assets	$	301,616	$	276,177	$	259,676	$	250,450	$	237,440
AVERAGE MANAGED ASSETS	Quarter Ended
	Dec. 31, 2007		Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006
By Asset Class
Equity	$	42,890	$	42,731	$	43,031	$	41,118	$	40,066
Fixed-income		22,969		22,680		23,109		23,002		22,624
Money market		224,285		202,141		189,917		182,352		169,008
Total Avg. Assets	$	290,144	$	267,552	$	256,057	$	246,472	$	231,698
By Product Type
Mutual Funds:
Equity	$	29,741	$	29,570	$	29,866	$	28,743	$	28,225
Fixed-income		17,893		17,701		17,942		18,013		18,150
Money market		203,957		181,808		168,253		160,325		152,192
Total Avg. Fund Assets	$	251,591	$	229,079	$	216,061	$	207,081	$	198,567
Separate Accounts:
Equity	$	13,149	$	13,161	$	13,165	$	12,375	$	11,841
Fixed-income		5,076		4,979		5,167		4,989		4,474
Money market		20,328		20,333		21,664		22,027		16,816
Total Avg. Separate Accts.	$	38,553	$	38,473	$	39,996	$	39,391	$	33,131
Total Avg. Assets	$	290,144	$	267,552	$	256,057	$	246,472	$	231,698
ADMINISTERED ASSETS	Quarter Ended
	Dec. 31, 2007		Sept. 30, 2007		June 30, 2007		March 31, 2007		Dec. 31, 2006
Period End	$	9,565	$	19,312	$	17,986	$	17,783	$	17,778
Average	$	16,125	$	18,378	$	17,701	$	17,762	$	18,060