Federated Equity Funds (ICA No. 811-4017)
Federated American Leaders Fund, Inc. (ICA No. 811-1704)
Federated International Series, Inc. (ICA No. 811-3984)
Federated Investment Series Funds, Inc. (ICA No. 811-07021)
Federated Stock and Bond Fund, Inc. (ICA No. 811-1)
Money Market Obligations Trust (ICA No. 811-5950)

6/15/00

INITIAL SHAREHOLDER LETTER

Date

Dear IAI Mutual Fund Shareholder:

     We are pleased to announce that  Federated  Investors,  Inc. and Investment
Advisers,  Inc. have agreed to a  transaction  merging the IAI Mutual Funds into
Federated  Mutual Funds.  Upon your approval,  Federated will be responsible for
portfolio management and shareholder servicing of the funds.

     With  $125  billion  in  assets  and  45  years  of  investment  management
experience,  Federated  offers the economy of scale we believe is  necessary  to
succeed in today's  increasingly  competitive  financial  marketplace.  Based on
managed assets,  Federated ranks in the top 5% of equity managers and the top 6%
of fixed income  managers.*  It is the 10th  largest  mutual fund company in the
country** and has made a significant  commitment to the  development of superior
portfolio management strategies and world-class shareholder services.

     Federated has considerable experience in smoothly managing transitions such
as this.  Federated has won customer  service awards from DALBAR, a research and
publishing  firm that  monitors  the mutual  fund  business.  In their 1999 Bank
Study, Federated earned high honors for the eighth consecutive year by capturing
#1 rankings in 18 out of 53 categories.

     Following  this  merger,  Investment  Advisers,  Inc.  will  continue as an
institutional   money  manager,   managing  large  accounts  for  corporate  and
non-profit clients.

IMPORTANT POINTS CONCERNING THE MERGER

o     If approved, it will be completed during September 2000.
o     It is designed to be a tax-free event for shareholders.
o     The Federated Funds have substantially similar investment objectives and
      management  styles when compared with the corresponding IAI Funds.

WHAT TO EXPECT

During the month of July, you will receive a proxy statement asking for your
approval of this merger. The proxy will provide you with details of the proposed
merger so that you can make an informed decision. The Board of Directors of the
IAI Mutual Funds has carefully considered this proposal and unanimously
recommends that you vote to approve the merger. We would like to highlight what
we believe are the most important benefits to you as a shareholder:

o     COMPETITIVE PERFORMANCE HISTORY

      While past performance is no guarantee of future performance, we are
      impressed with the quality of intensive, bottom-up research and
      fundamental analysis that characterizes Federated's world-class investment
      process. We believe that you can look forward to the continued opportunity
      for competitive performance with Federated's team.

o     COMPETITIVE FUND EXPENSES

      All Federated Funds have expense ratios competitive with industry
averages.

O     A DIVERSIFIED PRODUCT LINE

      Federated manages and distributes funds that span the full spectrum of
      investment objectives and asset classes, allowing investors to construct
      well-diversified portfolios to suit their individual risk tolerance.

PURCHASE AND EXCHANGE INTO PRODUCTS AT NAV

IAI shareholders of record at the time of the acquisition will be allowed to
purchase or exchange into any other Federated Fund on a NO-LOAD BASIS, provided
the amount invested meets the fund's minimum dollar amount. You will not pay a
sales charge to become a shareholder of the Federated funds, nor will you have
to pay any sales charge in the future if you wish to purchase or exchange into
other Federated funds. This is of great benefit because most of Federated's
funds have a front-end load, which is being waived for IAI shareholders.

YOU SOON WILL BE RECEIVING DETAILED PROXY INFORMATION ABOUT THE ACQUISITION. WE
ENCOURAGE YOU TO READ THE MATERIAL CAREFULLY BECAUSE IT CONTAINS IMPORTANT
INFORMATION. IN ADDITION, YOU CAN OBTAIN A FREE COPY OF THE PROXY FROM THE SEC
BY ACCESSING THEIR WEB SITE AT WWW.SEC.GOV. IAI Investor Services has set up a
hotline to field questions regarding the merger - you can call 1-800-945-3863 or
visit the IAI Web site at WWW.IAIFUNDS.COM. You may also call 1-800-245-5777 to
speak directly with an IAI representative. For more complete information about
the Federated funds, including charges and expenses, call for a prospectus,
check your local paper or access their Web site at WWW.FEDERATEDINVESTORS.COM.
Investors should read the prospectus carefully before investing. For information
regarding your Schwab account, please call 1-800-435-4000 or visit
WWW.SCHWAB.COM.

We believe this is a good opportunity for our shareholders and trust you will
too. Again, we sincerely appreciate your business and thank you for your
confidence in our firm and products. It has been a privilege to serve each
shareholder in the IAI mutual funds.

Sincerely,


J. Peter Thompson                         Keith Wirtz
Chairman                                  President
IAI Mutual Funds Board of Directors       IAI Mutual Funds

Federated Securities Corp., distributor of the Federated funds.

*Strategic Insight, 4/28/00
**Investment Company Institute 4/28/00




                            SCHEDULE 14A INFORMATION

   Proxy Statement Pursuant to Section 14(a) of the
   Securities Exchange Act of 1934 (Amendment
   No.______)

Filed by the Registrant [  X  ]
Filed by a Party other than the Registrant [    ]

Check the appropriate box:

[  ]  Preliminary Proxy Statement

[  ]  Confidential, for Use of the Commission Only (as permitted by
      Rule 14a-6(e)(2))
[  ]  Definitive Proxy Statement
[  ]  Definitive Additional Materials

[ X]  Soliciting Material Pursuant to Sec. 240.14a-11(c) or
      Sec. 240.14a-12


Federated American Leaders Fund, Inc.
 ...............................................................................
(Name of Registrant as Specified In Its Charter)


Federated Investors, Inc.
- -------------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

 [ X ]No fee required.
 [    ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

      1. Title of each class of securities to which transaction applies:

      2. Aggregate number of securities to which transaction applies:

      3. Per unit price or other underlying value of transaction computed
         pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
         filing fee is calculated and state how it was determined):

      4. Proposed maximum aggregate value of transaction:

      5. Total fee paid:

[ ] Fee paid previously with preliminary proxy materials.

[     ] Check box if any part of the fee is offset as provided by Exchange Act
      Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
      paid previously. Identify the previous filing by registration statement
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      1) Amount Previously Paid:
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      4) Date Filed:
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