FEDERATED AMERICAN LEADERS FUND, INC.

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Class A Shares
Class B Shares
Class C Shares
Class F Shares

Supplement to the Prospectuses dated May 31, 2000.

In the sections entitled "The Fund's Portfolio Managers are:" please replace the
biography of Arthur J. Barry with the following:

"KEVIN R. MCCLOSKEY

Kevin R. McCloskey was named a Portfolio  Manager of the Fund in March 2001. Mr.
McCloskey  joined  Federated  in  1999  as a  Portfolio  Manager  and  is a Vice
President of the Fund's Adviser.  From September 1994 to July 1999, he served as
a portfolio manager at Killian Asset Management Corporation.  Mr. McCloskey is a
Chartered  Financial  Analyst.  He earned  his  M.B.A.  with  concentrations  in
investment management and quantitative methods from the University of Dayton."

Michael P. Donnelly will remain as a Portfolio Manager of the Fund.

                                                                  March 16, 2001


Cusip 313914 10 3
Cusip 313914 20 2
Cusip 313914 30 1
Cusip 313914 40 0

26334 (3/01)