Exhibit 99.1

Press Release

Federated Investors, Inc. Reports Third Quarter 2008 Earnings;

Total Managed Assets Increase to Quarter-End Record $344 Billion

• YTD 2008 EPS increases 4 percent over YTD 2007 EPS

• Money market assets increase $78 billion since end of Q3 2007

• Board declares quarterly dividend of $0.24 per share

(PITTSBURGH, Pa., October 23, 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 $0.56 for the quarter ended Sept. 30, 2008 compared to $0.57 for the same quarter last year. Income from continuing operations was $56.2 million for Q3 2008 compared to $57.7 million for Q3 2007.

Federated reported YTD 2008 EPS of $1.66 compared to $1.60 for the same period in 2007, an increase of 4 percent. For the nine months ended Sept. 30, 2008, income from continuing operations was $167.2 million compared to $164.8 million for the same period in 2007.

Federated’s total managed assets were $344.0 billion at Sept. 30, 2008, up $67.8 billion or 25 percent from $276.2 billion at Sept. 30, 2007 and up $10.5 billion or 3 percent from the $333.5 billion reported at June 30, 2008. Asset growth was driven by a $77.9 billion increase in money market assets over the last year. Average managed assets for Q3 2008 were $335.1 billion, up $67.5 billion or 25 percent from $267.6 billion reported for Q3 2007 and down $8.2 billion or 2 percent from $343.3 billion reported for Q2 2008.

“Federated’s position as an industry leader in high quality money market products benefited our clients and the company during a quarter that saw unprecedented market conditions,” said J. Christopher Donahue, president and chief executive officer. “In addition to strong growth in money market products, Federated continued to see solid flows into its bond funds with over $500 million in net sales during the third quarter.”

Federated’s board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on Nov. 14, 2008 to shareholders of record as of Nov. 7, 2008. During Q3 2008, Federated paid a special cash dividend of $2.76 per share and a regular quarterly dividend of $0.24 per share, for a total of $3.00 per share or $305.4 million to its shareholders. Federated purchased 73,896 shares of Federated

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. 23, 2008

Page 2 of 9

Investors, Inc. class B common stock for $1.5 million during Q3 2008. These transactions were funded with available cash and financing from a $140 million term loan facility entered into during Q3 2008 and borrowings under the company’s existing revolving credit facility.

Money market assets in both funds and separate accounts were $287.8 billion at Sept. 30, 2008, up $77.9 billion or 37 percent from $209.9 billion at Sept. 30, 2007 and up $16.7 billion or 6 percent from $271.1 billion at June 30, 2008. Money market mutual fund assets were $259.2 billion at the end of Q3 2008, up $69.2 billion or 36 percent from $190.0 billion at Sept. 30, 2007 and up $18.6 billion or 8 percent from $240.6 billion at June 30, 2008. Federated’s government money market funds attracted substantial inflows during the extreme stress of the markets throughout the quarter.

Federated’s fixed-income assets were $24.5 billion at Sept. 30, 2008, up $1.8 billion or 8 percent from $22.7 billion at Sept. 30, 2007 and down $0.6 billion or 2 percent from $25.1 billion at June 30, 2008. Federated had inflows of $0.5 billion into its bond funds during the quarter and $1.6 billion during the first nine months of 2008. Federated’s top-selling fixed-income mutual funds on a net basis were: Federated Municipal Ultrashort Fund; Federated Government Ultrashort Duration Fund; Federated Total Return Bond Fund; Federated U.S. Government Securities Fund: 1-3 Years; and Federated U.S. Government Securities Fund: 2-5 Years.

Federated’s equity assets were $31.7 billion at Sept. 30, 2008, down $11.8 billion or 27 percent from $43.5 billion at Sept. 30, 2007 and down $5.6 billion or 15 percent from $37.3 billion at June 30, 2008 due mainly to market depreciation. Federated’s top-selling equity mutual funds on a net basis were: Federated Capital Appreciation Fund II, Federated Kaufmann Large Cap Fund, Federated Capital Appreciation Fund, Federated MDT Balanced Fund and Federated MDT Small Cap Growth Fund.

Financial Summary

Q3 2008 vs. Q3 2007

For Q3 2008, revenue increased $19.5 million or 7 percent to $305.9 million compared to $286.4 million for the same quarter last year. The increase in revenue is primarily due to an increase in revenue from average money market managed assets ($42.0 million) and average fixed-income assets ($0.4 million). The increase was partially offset by a decrease in revenue from average equity managed assets ($20.2 million). For Q3 2008, Federated derived 60 percent of its revenue from money market assets, 30 percent from equity assets, 9 percent from fixed-income assets and 1 percent from other products and services.

Operating expenses for Q3 2008 increased $24.5 million or 13 percent to $212.7 million compared to $188.2 million for Q3 2007. The increase in operating expenses was primarily attributable to higher marketing and distribution expenses of $15.9 million primarily from higher average money market managed assets. In addition, compensation and related expenses increased by $8.4 million.

Federated Reports Q3 Earnings

Oct. 23, 2008

Page 3 of 9

Nonoperating expenses for Q3 2008 decreased $3.4 million or 72 percent to $1.3 million compared to $4.7 million for Q3 2007 primarily due to lower investment losses.

Q3 2008 vs. Q2 2008

Compared to the prior quarter, revenue decreased by $4.4 million or 1 percent. The revenue decrease was primarily due to a decrease in average equity managed assets ($8.8 million), partially offset by the impact of one additional day in the third quarter ($3.5 million).

Compared to Q2 2008, operating expenses decreased by $6.4 million or 3 percent. Marketing and distribution expenses decreased $3.7 million from Q2 2008 primarily due to lower average money market and equity managed assets. In addition, professional service fees decreased $1.2 million.

Nonoperating expenses increased $1.2 million compared to the prior quarter due mainly to an increase in mark-to-market investment losses and an increase in recourse debt expense.

YTD 2008 vs. YTD 2007

Revenue for the first nine months of 2008 increased $94.5 million or 11 percent to $921.9 million compared to $827.4 million for the same period last year. The increase in revenue is primarily due to an increase in revenue from average money market managed assets ($137.7 million). The increase was partially offset by a decrease in revenue from average equity managed assets ($33.6 million), a decrease due to a change in the mix of average fixed-income managed assets ($1.5 million) and an increase in the amount of fund revenue that was voluntarily waived for competitive reasons ($5.3 million).

For YTD 2008, Federated derived 58 percent of its revenue from money market assets, 31 percent from equity assets, 10 percent from fixed-income assets and 1 percent from other products and services.

Operating expenses for the year-to-date period ended Sept. 30, 2008 increased $90.0 million or 16 percent to $646.5 million compared to $556.5 million for the same period of last year. The increase in operating expenses was attributable to a $66.5 million increase in marketing and distribution expenses related primarily to increased average money market managed assets. Additionally, compensation and related expenses increased $23.1 million.

Nonoperating expenses for YTD 2008 decreased $2.9 million or 71 percent to $1.2 million compared to $4.1 million for the same period in 2007 due to lower investment losses.

Federated will host an earnings conference call at 9 a.m. Eastern on Oct. 24, 2008. 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 Oct. 31, 2008 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 299011.

Federated Reports Q3 Earnings

Oct. 23, 2008

Page 4 of 9

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $344.0 billion in assets as of Sept. 30, 2008. With 147 mutual funds and a variety of separately managed account options, Federated provides comprehensive investment management to nearly 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 9 percent of fixed-income fund managers¹. For more information, visit FederatedInvestors.com.

###

1 Strategic Insight, Aug. 31, 2008. Based on assets under management in open-end funds.

Certain statements in this press release, such as those related to asset flows and sales, 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. Among other risks and uncertainties is the ability of the company to sustain asset flows and sales and the risk factors discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange Commission. 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 Securities Corp. is distributor of the Federated funds.

Separately managed accounts are made available through Federated Global Investment Management, Corp. Federated Investment Counseling and Federated MDTA LLC, each a registered investment advisor.

Federated Reports Q3 Earnings

Oct. 23, 2008

Page 5 of 9

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Quarter Ended Sept. 30,						% Change Q3 2007 to Q3 2008		Quarter Ended June 30, 2008			% Change Q2 2008 to Q3 2008
	2008			2007
Revenue
Investment advisory fees, net	$	194,653		$	184,898		5	%	$	198,050		(2	)%
Administrative service fees, net		54,369			43,808		24			54,435		—
Other service fees, net		56,007			56,416		(1	)		56,714		(1	)
Other, net		884			1,286		(31	)		1,107		(20	)
Total Revenue		305,913			286,408		7			310,306		(1	)
Operating Expenses
Compensation and related		60,482			52,139		16			59,022		2
General and administrative
Marketing and distribution		106,742			90,839		18			110,430		(3	)
Professional service fees		10,259			7,525		36			11,501		(11	)
Systems and communications		5,996			5,753		4			5,998		—
Office and occupancy		5,619			5,335		5			6,336		(11	)
Advertising and promotional		3,787			3,566		6			4,032		(6	)
Travel and related		3,228			2,889		12			4,012		(20	)
Other		4,409			4,072		8			4,402		—
Total general and administrative		140,040			119,979		17			146,711		(5	)
Amortization of deferred sales commissions		7,762			11,298		(31	)		8,801		(12	)
Amortization of intangible assets		4,369			4,763		(8	)		4,559		(4	)
Total Operating Expenses		212,653			188,179		13			219,093		(3	)
Operating Income		93,260			98,229		(5	)		91,213		2
Nonoperating Income (Expenses)
Investment income (loss), net		190			(2,975	)	106			897		(79	)
Debt expense––recourse		(757	)		(93	)	714			(108	)	601
Debt expense––nonrecourse		(622	)		(1,205	)	(48	)		(737	)	(16	)
Other, net		(152	)		(444	)	(66	)		(155	)	(2	)
Total Nonoperating Expenses, net		(1,341	)		(4,717	)	(72	)		(103	)	1,202
Minority interest		2,455			1,470		67			2,020		22
Income from continuing operations before income taxes		89,464			92,042		(3	)		89,090		—
Income tax provision		33,253			34,315		(3	)		33,873		(2	)
Income from continuing operations		56,211			57,727		(3	)		55,217		2
Discontinued operations, net of tax		—			—		—			2,808		(100	)
Net Income	$	56,211		$	57,727		(3	)%	$	58,025		(3	)%
Earnings Per Share—Basic
Income from continuing operations	$	0.57		$	0.57		—	%	$	0.56		2	%
Income from discontinued operations		—			—		—			0.03		(100	)
Net income*	$	0.57		$	0.57		—	%	$	0.58		(2	)%
Earnings Per Share—Diluted
Income from continuing operations	$	0.56		$	0.57		(2	)%	$	0.55		2	%
Income from discontinued operations		—			—		—			0.03		(100	)
Net income	$	0.56		$	0.57		(2	)%	$	0.58		(3	)%
Weighted-average shares outstanding
Basic		99,367			100,433					99,347
Diluted		100,442			102,095					100,848
Dividends declared per share	$	3.00		$	0.21				$	0.24

* May not sum due to rounding.

Federated Reports Q3 Earnings

Oct. 23, 2008

Page 6 of 9

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

	Nine Months Ended Sept. 30,						% Change
	2008			2007
Revenue
Investment advisory fees, net	$	587,697		$	531,457		11	%
Administrative service fees, net		160,384			124,307		29
Other service fees, net		170,438			167,281		2
Other, net		3,393			4,307		(21	)
Total Revenue		921,912			827,352		11
Operating Expenses
Compensation and related		180,967			157,876		15
General and administrative
Marketing and distribution		324,799			258,329		26
Professional service fees		30,356			24,473		24
Office and occupancy		18,067			16,175		12
Systems and communications		17,927			17,466		3
Advertising and promotional		11,495			10,703		7
Travel and related		10,166			9,332		9
Other		13,121			11,583		13
Total general and administrative		425,931			348,061		22
Amortization of deferred sales commissions		25,923			35,631		(27	)
Amortization of intangible assets		13,673			14,889		(8	)
Total Operating Expenses		646,494			556,457		16
Operating Income		275,418			270,895		2
Nonoperating Income (Expenses)
Investment income, net		2,365			675		250
Debt expense––recourse		(961	)		(274	)	251
Debt expense––nonrecourse		(2,232	)		(4,062	)	(45	)
Other, net		(356	)		(440	)	(19	)
Total Nonoperating Expenses, net		(1,184	)		(4,101	)	(71	)
Minority interest		5,861			4,245		38
Income from continuing operations before income taxes		268,373			262,549		2
Income tax provision		101,126			97,781		3
Income from continuing operations		167,247			164,768		2
Discontinued operations, net of tax		2,808			—		—
Net Income	$	170,055		$	164,768		3	%
Earnings Per Share—Basic
Income from continuing operations	$	1.68		$	1.63		3	%
Income from discontinued operations		0.03			—		—
Net Income	$	1.71		$	1.63		5	%
Earnings Per Share—Diluted
Income from continuing operations	$	1.66		$	1.60		4	%
Income from discontinued operations		0.03			—		—
Net Income*	$	1.68		$	1.60		5	%
Weighted-average shares outstanding
Basic		99,508			101,222
Diluted		101,028			102,927
Dividends declared per share	$	3.45		$	0.60

* May not sum due to rounding.

Federated Reports Q3 Earnings

Oct. 23, 2008

Page 7 of 9

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

	Sept. 30, 2008			Dec. 31, 2007
Assets
Cash and other short-term investments	$	59,995		$	146,271
Other current assets		62,656			60,020
Intangible assets, net and goodwill		576,978			534,603
Deferred sales commissions, net		36,960			64,227
Other long-term assets		38,726			35,850
Total Assets	$	775,315		$	840,971
Liabilities, Minority Interest and Shareholders’ Equity
Current liabilities	$	175,807		$	164,571
Long-term debt—recourse		129,500			71
Long-term debt—nonrecourse		36,882			62,701
Other long-term liabilities and minority interest		43,332			39,613
Shareholders’ equity excluding treasury stock		1,203,090			1,367,963
Treasury stock		(813,296	)		(793,948	)
Total Liabilities, Minority Interest and Shareholders’ Equity	$	775,315		$	840,971

Federated Reports Q3 Earnings

Oct. 23, 2008

Page 8 of 9

Changes in Equity and Fixed-Income Fund Managed Assets

(in millions)

	Quarter Ended									Nine Months Ended Sept. 30,
	Sept. 30 2008			Sept. 30, 2007			June 30, 2008			2008			2007
Equity Funds
Beginning assets	$	25,569		$	30,026		$	25,880		$	29,145		$	28,666
Sales		1,060			1,269			1,347			4,009			4,140
Redemptions		(2,031	)		(1,959	)		(1,529	)		(5,453	)		(5,771	)
Net redemptions		(971	)		(690	)		(182	)		(1,444	)		(1,631	)
Net exchanges		(68	)		(20	)		(18	)		(163	)		(53	)
Acquisition related		0			366			42			42			366
Other*		(2,947	)		413			(153	)		(5,997	)		2,747
Ending assets	$	21,583		$	30,095		$	25,569		$	21,583		$	30,095
Fixed-Income Funds
Beginning assets	$	19,065		$	17,769		$	18,339		$	17,943		$	18,113
Sales		2,354			1,191			2,337			6,509			3,671
Redemptions		(1,826	)		(1,445	)		(1,530	)		(4,911	)		(4,339	)
Net sales (redemptions)		528			(254	)		807			1,598			(668	)
Net exchanges		26			(6	)		1			80			(9	)
Other*		(483	)		266			(82	)		(485	)		339
Ending assets	$	19,136		$	17,775		$	19,065		$	19,136		$	17,775

* 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									Nine Months Ended Sept. 30,
	Sept. 30, 2008			Sept. 30, 2007			June 30, 2008			2008			2007
Equity Separate Accounts
Beginning assets	$	11,712		$	13,318		$	11,638		$	13,017		$	12,228
Net customer flows**		(426	)		(126	)		209			(621	)		296
Other**		(1,218	)		230			(135	)		(2,328	)		898
Ending assets	$	10,068		$	13,422		$	11,712		$	10,068		$	13,422
Fixed-Income Separate Accounts
Beginning assets	$	6,007		$	5,201		$	5,077		$	4,881		$	4,789
Net customer flows**		(372	)		(370	)		1,076			763			(80	)
Other**		(256	)		146			(146	)		(265	)		268
Ending assets	$	5,379		$	4,977		$	6,007		$	5,379		$	4,977

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

** 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 Q3 Earnings

Oct. 23, 2008

Page 9 of 9

(in millions)

MANAGED ASSETS	Sept. 30, 2008		June 30, 2008		March 31, 2008		Dec. 31, 2007		Sept. 30, 2007
By Asset Class
Equity	$	31,651	$	37,281	$	37,518	$	42,162	$	43,517
Fixed-income		24,515		25,072		23,416		22,824		22,752
Money market		287,836		271,131		277,527		236,630		209,908
Total Managed Assets	$	344,002	$	333,484	$	338,461	$	301,616	$	276,177
By Market*
Wealth Management & Trust	$	173,284	$	162,991	$	162,865	$	143,881	$	127,854
Broker/Dealer		120,014		116,840		119,268		114,854		108,872
Global Institutional		37,374		40,408		43,976		30,830		29,242
Other		13,330		13,245		12,352		12,051		10,209
Total Managed Assets	$	344,002	$	333,484	$	338,461	$	301,616	$	276,177
By Product Type
Mutual Funds:
Equity	$	21,583	$	25,569	$	25,880	$	29,145	$	30,095
Fixed-income		19,136		19,065		18,339		17,943		17,775
Money market		259,172		240,646		242,280		215,003		190,011
Total Fund Assets	$	299,891	$	285,280	$	286,499	$	262,091	$	237,881
Separate Accounts:
Equity	$	10,068	$	11,712	$	11,638	$	13,017	$	13,422
Fixed-income		5,379		6,007		5,077		4,881		4,977
Money market		28,664		30,485		35,247		21,627		19,897
Total Separate Accounts	$	44,111	$	48,204	$	51,962	$	39,525	$	38,296
Total Managed Assets	$	344,002	$	333,484	$	338,461	$	301,616	$	276,177

	Quarter Ended
AVERAGE MANAGED ASSETS	Sept. 30, 2008		June 30, 2008		March 31, 2008		Dec. 31, 2007		Sept. 30, 2007
By Asset Class
Equity	$	35,136	$	38,974	$	38,471	$	42,890	$	42,731
Fixed-income		25,087		24,525		23,220		22,969		22,680
Money market		274,840		279,776		260,306		224,285		202,141
Total Avg. Assets	$	335,063	$	343,275	$	321,997	$	290,144	$	267,552
By Product Type
Mutual Funds:
Equity	$	24,180	$	26,762	$	26,696	$	29,741	$	29,570
Fixed-income		19,347		18,672		18,186		17,893		17,701
Money market		245,304		246,868		231,719		203,957		181,808
Total Avg. Fund Assets	$	288,831	$	292,302	$	276,601	$	251,591	$	229,079
Separate Accounts:
Equity	$	10,956	$	12,212	$	11,775	$	13,149	$	13,161
Fixed-income		5,740		5,853		5,034		5,076		4,979
Money market		29,536		32,908		28,587		20,328		20,333
Total Avg. Separate Accts.	$	46,232	$	50,973	$	45,396	$	38,553	$	38,473
Total Avg. Assets	$	335,063	$	343,275	$	321,997	$	290,144	$	267,552
	Quarter Ended
ADMINISTERED ASSETS	Sept. 30, 2008		June 30, 2008		March 31, 2008		Dec. 31, 2007		Sept. 30, 2007
Period End	$	8,723	$	8,886	$	9,921	$	9,565	$	19,312
Average	$	8,889	$	9,781	$	9,694	$	16,125	$	18,378

* Federated’s market definitions changed as of April 1, 2008. The insurance channel had been included in the Broker/Dealer market and is now included in the Global Institutional market. Previous periods were adjusted to reflect the change.