Federated American Leaders Fund, Inc.
Classs A Shares________________________________________________
Supplement to Prospectus dated May 31, 1998

1. Effective August 3, 1998, please delete the following disclosure in the
prospectus section entitled "Dealer Concession" on page 9:

"On purchases of $1 million or more, the investor pays no sales charge; however,
the distributor will make twelve monthly payments to the dealer totaling 0.25%
of the public offering price over the first year following the purchase. Such
payments are based on the original purchase price of Shares outstanding at each
month end."

and insert the following language in its place:

"Financial intermediaries purchasing Class A Shares for their customers in
amounts of $1 million or more are eligible to receive an advance commission from
the distributor based on the following breakpoints:

                              Advance Commission
                                 as a Percentage of
      Transaction Amount            Public Offering Price

      First $1 - $5 million               0.75%
      Next $5 - $20 million               0.50%
      Over $20 million                    0.25%

For accounts with assets over $1 million, the dealer commission resets annually
to the first breakpoint on the anniversary of the first purchase.

Class A Share purchases under this program may be made by Letter of Intent or by
combining concurrent purchases. The above commission will be paid only on those
purchases that were not previously subject to a front-end sales charge and
dealer commission. Certain retirement accounts may not be eligible for this
program. Financial intermediaries must notify the Fund once an account reaches
$1 million in order to qualify for advance commissions.

A contingent deferred sales charge of 0.75% of the redemption amount applies to
Class A Shares redeemed up to 24 months after purchase if a financial
intermediary received an advance commission on the transaction."


2. The "Summary of Fund Expenses" table on page 1 of the Fund's prospectus is
amended.

a. Under "Shareholder Transaction Expenses," for Class A Shares, the line item
on the contingent deferred sales charge is deleted and replaced with:

"Contingent Deferred Sales Charge (as a percentage of original    0.00% (1)
 purchase price or redemption proceeds, as applicable)"

b. Footnote (1) is amended by adding the following as the first sentence:

"(1) Shareholders who purchased $1 million or more of Class A Shares through a
financial intermediary on or after August 3, 1998, may be charged a contingent
deferred sales charge of 0.75% for redemptions made within 24 months of purchase
if the financial intermediary received an advance commission."



July 31, 1998

Cusip 313914103
G00982-07(7/98)