FEDERATED AMERICAN LEADERS FUND, INC.
Class A Shares
Class B Shares
Class C Shares
Class F Shares
Class K Shares
- ------------------------------------------------------------------------------
Supplement to the Prospectuses dated May 31, 2004

Under the section  entitled  "Who Manages the Fund?" please delete the biography
of  Steven  J.  Lehman  in its  entirety  and  add  the  following  biographical
information:

William Dierker
Senior Vice President
Senior Portfolio Manager

William Dierker has been a portfolio manager of the Fund since October 2004. Mr.
Dierker joined Federated in September 2004 as a Senior Portfolio  Manager/Senior
Vice President of the Fund's adviser. Mr. Dierker was a Senior Portfolio Manager
and Managing  Director of the value equity team at Banc One Investment  Advisers
from April 2003 to  September  2004.  He served as an  Investment  Officer  with
Nationwide  Insurance Enterprise from March 1998 through September 1999; as Vice
President,  Equity  Securities  with  Nationwide  from September 1999 to January
2002; and as Vice President/Portfolio  Manager with Gartmore Global Investments,
a subsidiary of  Nationwide,  from January 2002 to April 2003.  Mr. Dierker is a
Chartered  Financial Analyst. He received his B.S.B.A. in accounting from Xavier
University.

Kevin R. McClosky and John L. Nichol remain as Portfolio Managers.







Federated Securities Corp., Distributor

Cusip 313914103
Cusip 313914202
Cusip 313914301
Cusip 313914400
Cusip 313914509

31306 (10/04)

                                                                October 14, 2004