Federated American Leaders Fund, Inc.

United States

Securities and Exchange Commission

Washington, D.C. 20549

Form N-CSR

Certified Shareholder Report of Registered Management Investment Companies

811-1704

(Investment Company Act File Number)

Federated American Leaders Fund, Inc.

_______________________________________________________________

(Exact Name of Registrant as Specified in Charter)

Federated Investors Funds

5800 Corporate Drive

Pittsburgh, Pennsylvania 15237-7000

(Address of Principal Executive Offices)

(412) 288-1900

(Registrant's Telephone Number)

John W. McGonigle, Esquire

Federated Investors Tower

1001 Liberty Avenue

Pittsburgh, Pennsylvania 15222-3779

(Name and Address of Agent for Service)

(Notices should be sent to the Agent for Service)

Date of Fiscal Year End: 3/31/08

Date of Reporting Period: Fiscal year ended 3/31/08

Item 1. Reports to Stockholders

Federated
World-Class Investment Manager

Federated American Leaders Fund, Inc.

Established 1968

ANNUAL SHAREHOLDER REPORT

March 31, 2008

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

FINANCIAL HIGHLIGHTS
SHAREHOLDER EXPENSE EXAMPLE
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
PORTFOLIO OF INVESTMENTS SUMMARY TABLE
PORTFOLIO OF INVESTMENTS
STATEMENT OF ASSETS AND LIABILITIES
STATEMENT OF OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
NOTES TO FINANCIAL STATEMENTS
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
BOARD OF DIRECTORS AND FUND OFFICERS
EVALUATION AND APPROVAL OF ADVISORY CONTRACT
VOTING PROXIES ON FUND PORTFOLIO SECURITIES
QUARTERLY PORTFOLIO SCHEDULE

Not FDIC Insured * May Lose Value * No Bank Guarantee

Financial Highlights - Class A Shares

(For a Share Outstanding Throughout Each Period)

Year Ended March 31	2008		2007		2006	¹	2005		2004
Net Asset Value, Beginning of Period	$23.75		$24.02		$24.46		$23.56		$17.23
Income From Investment Operations:
Net investment income	0.20	²	0.25	²	0.27	²	0.26		0.24
Net realized and unrealized gain (loss) on investments	(3.88	)	2.21		1.85		0.98		6.33
TOTAL FROM INVESTMENT OPERATIONS	(3.68	)	2.46		2.12		1.24		6.57
Less Distributions:
Distributions from net investment income	(0.19	)	(0.27	)	(0.28	)	(0.34	)	(0.24	)
Distributions from net realized gain on investments	(4.56	)	(2.46	)	(2.28	)	- --		- --
TOTAL DISTRIBUTIONS	(4.75	)	(2.73	)	(2.56	)	(0.34	)	(0.24	)
Net Asset Value, End of Period	$15.32		$23.75		$24.02		$24.46		$23.56
Total Return³	(17.89	)%	10.26	%	9.09	%	5.29	%⁴	38.28	%

Ratios to Average Net Assets:
Net expenses	1.18	%⁵	1.17	%⁵	1.17	%⁵	1.16	%⁵	1.21	%⁵
Net investment income	0.92	%	1.03	%	1.10	%	1.11	%	1.12	%
Expense waiver/reimbursement⁶	0.01	%	0.00	%⁷	0.00	%⁷	0.00	%⁷	0.00	%⁷
Supplemental Data:
Net assets, end of period (000 omitted)	$924,098		$1,462,078		$1,528,974		$1,577,454		$1,562,277
Portfolio turnover	96	%	55	%	49	%	58	%	29	%

1 Beginning with the year ended March 31, 2006, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

2 Per share numbers have been calculated using the average shares method.

3 Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.

4 During the period, the Fund was reimbursed by the Adviser, which had an impact of 0.04% on the total return.

5 The net expense ratio is calculated without reduction for fees paid indirectly for directed brokerage arrangements. The net expense ratios for the years ended March 31, 2008, 2007, 2006, 2005 and 2004 are 1.17%, 1.16%, 1.16%, 1.16% and 1.19%, respectively, after taking into account these expense reductions.

6 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

7 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class B Shares

(For a Share Outstanding Throughout Each Period)

Year Ended March 31	2008		2007		2006	¹	2005		2004
Net Asset Value, Beginning of Period	$23.83		$24.08		$24.52		$23.61		$17.22
Income From Investment Operations:
Net investment income	0.02	²	0.06	²	0.07	²	0.11		0.09
Net realized and unrealized gain (loss) on investments	(3.88	)	2.22		1.85		0.96		6.31
TOTAL FROM INVESTMENT OPERATIONS	(3.86	)	2.28		1.92		1.07		6.40
Less Distributions:
Distributions from net investment income	(0.01	)	(0.07	)	(0.08	)	(0.16	)	(0.01	)
Distributions from net realized gain on investments	(4.56	)	(2.46	)	(2.28	)	- --		- --
TOTAL DISTRIBUTIONS	(4.57	)	(2.53	)	(2.36	)	(0.16	)	(0.01	)
Net Asset Value, End of Period	$15.40		$23.83		$24.08		$24.52		$23.61
Total Return³	(18.52	)%	9.41	%	8.20	%	4.52	%⁴	37.19	%

Ratios to Average Net Assets:
Net expenses	1.97	%⁵	1.96	%⁵	1.96	%⁵	1.92	%⁵	1.96	%⁵
Net investment income	0.11	%	0.23	%	0.30	%	0.34	%	0.38	%
Expense waiver/reimbursement⁶	0.01	%	0.00	%⁷	0.00	%⁷	0.00	%⁷	0.00	%⁷
Supplemental Data:
Net assets, end of period (000 omitted)	$179,738		$391,359		$589,994		$798,138		$991,586
Portfolio turnover	96	%	55	%	49	%	58	%	29	%

1 Beginning with the year ended March 31, 2006, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

2 Per share numbers have been calculated using the average shares method.

3 Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.

4 During the period, the Fund was reimbursed by the Adviser, which had an impact of 0.04% on the total return.

5 The net expense ratio is calculated without reduction for fees paid indirectly for directed brokerage arrangements. The net expense ratios for the years ended March 31, 2008, 2007, 2006, 2005 and 2004 are 1.96%, 1.95%, 1.94%, 1.92% and 1.94%, respectively, after taking into account these expense reductions.

6 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

7 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class C Shares

(For a Share Outstanding Throughout Each Period)

Year Ended March 31	2008		2007		2006	¹	2005		2004
Net Asset Value, Beginning of Period	$23.83		$24.09		$24.53		$23.63		$17.22
Income From Investment Operations:
Net investment income	0.03	²	0.07	²	0.08	²	0.09		0.09
Net realized and unrealized gain (loss) on investments	(3.88	)	2.21		1.85		0.97		6.33
TOTAL FROM INVESTMENT OPERATIONS	(3.85	)	2.28		1.93		1.06		6.42
Less Distributions:
Distributions from net investment income	(0.03	)	(0.08	)	(0.09	)	(0.16	)	(0.01	)
Distributions from net realized gain on investments	(4.56	)	(2.46	)	(2.28	)	- --		- --
TOTAL DISTRIBUTIONS	(4.59	)	(2.54	)	(2.37	)	(0.16	)	(0.01	)
Net Asset Value, End of Period	$15.39		$23.83		$24.09		$24.53		$23.63
Total Return³	(18.49	)%	9.41	%	8.24	%	4.48	%⁴	37.26	%

Ratios to Average Net Assets:
Net expenses	1.95	%⁵	1.94	%⁵	1.94	%⁵	1.93	%⁵	1.96	%⁵
Net investment income	0.15	%	0.27	%	0.33	%	0.33	%	0.37	%
Expense waiver/reimbursement⁶	0.01	%	0.00	%⁷	0.00	%⁷	0.00	%⁷	0.00	%⁷
Supplemental Data:
Net assets, end of period (000 omitted)	$63,026		$104,351		$111,946		$121,085		$126,806
Portfolio turnover	96	%	55	%	49	%	58	%	29	%

1 Beginning with the year ended March 31, 2006, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

2 Per share numbers have been calculated using the average shares method.

3 Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.

4 During the period, the Fund was reimbursed by the Adviser, which had an impact of 0.04% on the total return.

5 The net expense ratio is calculated without reduction for fees paid indirectly for directed brokerage arrangements. The net expense ratios for the years ended March 31, 2008, 2007, 2006, 2005 and 2004 are 1.94%, 1.93%, 1.93%, 1.93% and 1.94%, respectively, after taking into account these expense reductions.

6 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

7 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class F Shares

(For a Share Outstanding Throughout Each Period)

Year Ended March 31	2008		2007		2006	¹	2005		2004
Net Asset Value, Beginning of Period	$23.71		$23.98		$24.42		$23.53		$17.21
Income From Investment Operations:
Net investment income	0.20	²	0.25	²	0.27	²	0.28		0.25
Net realized and unrealized gain (loss) on investments	(3.87	)	2.22		1.85		0.95		6.31
TOTAL FROM INVESTMENT OPERATIONS	(3.67	)	2.47		2.12		1.23		6.56
Less Distributions:
Distributions from net investment income	(0.20	)	(0.28	)	(0.28	)	(0.34	)	(0.24	)
Distributions from net realized gain on investments	(4.56	)	(2.46	)	(2.28	)	- --		- --
TOTAL DISTRIBUTIONS	(4.76	)	(2.74	)	(2.56	)	(0.34	)	(0.24	)
Net Asset Value, End of Period	$15.28		$23.71		$23.98		$24.42		$23.53
Total Return³	(17.89	)%	10.31	%⁴	9.11	%	5.27	%⁵	38.29	%

Ratios to Average Net Assets:
Net expenses	1.15	%⁶	1.15	%⁶	1.16	%⁶	1.16	%⁶	1.19	%⁶
Net investment income	0.95	%	1.05	%	1.11	%	1.11	%	1.15	%
Expense waiver/reimbursement⁷	0.01	%	0.00	%⁸	0.00	%⁸	0.00	%⁸	0.00	%⁸
Supplemental Data:
Net assets, end of period (000 omitted)	$31,408		$50,202		$59,611		$66,364		$71,908
Portfolio turnover	96	%	55	%	49	%	58	%	29	%

1 Beginning with the year ended March 31, 2006, the Fund was audited by Ernst & Young LLP. The previous years were audited by another independent registered public accounting firm.

2 Per share numbers have been calculated using the average shares method.

3 Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable.

4 During the period, the Fund received a regulatory settlement from an unaffiliated third party, which had an impact of 0.05% on the total return (Note 9).

5 During the period, the Fund was reimbursed by the Adviser, which had an impact of 0.05% on the total return.

6 The net expense ratio is calculated without reduction for fees paid indirectly for directed brokerage arrangements. The net expense ratios for the years ended March 31, 2008, 2007, 2006, 2005 and 2004 are 1.14%, 1.14%, 1.14%, 1.15% and 1.17%, respectively, after taking into account these expense reductions.

7 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

8 Represents less than 0.01%.

See Notes which are an integral part of the Financial Statements

Financial Highlights - Class K Shares

(For a Share Outstanding Throughout Each Period)

	Year Ended March 31,								Period Ended
	2008		2007		2006	¹	2005		3/31/2004	²
Net Asset Value, Beginning of Period	$23.75		$24.01		$24.46		$23.57		$17.74
Income From Investment Operations:
Net investment income	0.10	³	0.14	³	0.16	³	0.17		0.13
Net realized and unrealized gain (loss) on investments	(3.88	)	2.22		1.85		0.95		5.85
TOTAL FROM INVESTMENT OPERATIONS	(3.78	)	2.36		2.01		1.12		5.98
Less Distributions:
Distributions from net investment income	(0.09	)	(0.16	)	(0.18	)	(0.23	)	(0.15	)
Distributions from net realized gain on investments	(4.56	)	(2.46	)	(2.28	)	- --		- --
TOTAL DISTRIBUTIONS	(4.65	)	(2.62	)	(2.46	)	(0.23	)	(0.15	)
Net Asset Value, End of Period	$15.32		$23.75		$24.01		$24.46		$23.57
Total Return⁴	(18.27	)%	9.81	%⁵	8.58	%	4.78	%⁶	33.76	%

Ratios to Average Net Assets:
Net expenses	1.62	%⁷	1.62	%⁷	1.64	%⁷	1.63	%⁷	1.66	%^7,8
Net investment income	0.44	%	0.57	%	0.66	%	0.64	%	0.54	%⁸
Expense waiver/reimbursement⁹	0.01	%	0.00	%¹⁰	0.00	%¹⁰	0.00	%¹⁰	0.00	%^8,10
Supplemental Data:
Net assets, end of period (000 omitted)	$14,137		$44,992		$53,310		$18,095		$3,082
Portfolio turnover	96	%	55	%	49	%	58	%	29	%¹¹

1 Beginning with the year ended March 31, 2006, the Fund was audited by Ernst & Young LLP. The previous periods were audited by another independent registered public accounting firm.

2 Reflects operations for the period from April 8, 2003 (start of performance) to March 31, 2004.

3 Per share numbers have been calculated using the average shares method.

4 Based on net asset value, which does not reflect the sales charge, redemption fee or contingent deferred sales charge, if applicable. Total returns for periods of less than one year are not annualized.

5 During the period, the Fund received a regulatory settlement from an unaffiliated third party, which had an impact of 0.04% on the total return (Note 9).

6 During the period, the Fund was reimbursed by the Adviser, which had an impact of 0.04% on the total return.

7 The net expense ratio is calculated without reduction for fees paid indirectly for directed brokerage arrangements. The net expense ratios for the years ended March 31, 2008, 2007, 2006, 2005 and for the period ended March 31, 2004 are 1.61%, 1.62%, 1.63%, 1.63% and 1.64%, respectively, after taking into account these expense reductions.

8 Computed on an annualized basis.

9 This expense decrease is reflected in both the net expense and the net investment income ratios shown above.

10 Represents less than 0.01%.

11 Portfolio turnover is calculated at the Fund level. Percentage indicated was calculated for the fiscal year ended March 31, 2004.

See Notes which are an integral part of the Financial Statements

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase or redemption payments; and (2) ongoing costs, including management fees and to the extent applicable, distribution (12b-1) fees and/or shareholder services fees and other Fund expenses. This Example is intended to help you to understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. It is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2007 to March 31, 2008.

ACTUAL EXPENSES

The first section of the table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you incurred over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled "Expenses Paid During Period" to estimate the expenses attributable to your investment during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The second section of the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. Thus, you should not use the hypothetical account values and expenses to estimate the actual ending account balance or your expenses for the period. Rather, these figures are required to be provided to enable you to compare the ongoing costs of investing in the Fund with other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) on purchase or redemption payments. Therefore, the second section of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher.

	Beginning Account Value 10/1/2007	Ending Account Value 3/31/2008	Expenses Paid During Period¹
Actual:
Class A Shares	$1,000	$809.70	$5.47
Class B Shares	$1,000	$806.70	$8.94
Class C Shares	$1,000	$806.60	$8.90
Class F Shares	$1,000	$809.50	$5.29
Class K Shares	$1,000	$807.70	$7.41
Hypothetical (assuming a 5% return before expenses):
Class A Shares	$1,000	$1,018.95	$6.11
Class B Shares	$1,000	$1,015.10	$9.97
Class C Shares	$1,000	$1,015.15	$9.92
Class F Shares	$1,000	$1,019.15	$5.91
Class K Shares	$1,000	$1,016.80	$8.27

1 Expenses are equal to the Fund's annualized net expense ratios, multiplied by the average account value over the period, multiplied by 183/366 (to reflect the one-half year period). The annualized net expense ratios are as follows:

Class A Shares	1.21	%
Class B Shares	1.98	%
Class C Shares	1.97	%
Class F Shares	1.17	%
Class K Shares	1.64	%

Management's Discussion of Fund Performance

FUND PERFORMANCE

Federated American Leaders Fund Inc.'s total returns, based on net asset value, for the 12 month reporting period ended March 31, 2008 were (17.89)% for Class A Shares, (18.52)% for Class B Shares, (18.49)% for Class C Shares, (17.89)% for Class F Shares, and (18.27)% for Class K Shares. The fund underperformed the (8.36)% return of its benchmark the Standard & Poor's/Citigroup Value Index ("S&P 500 Value") during the same period. The fund also underperformed the broad market Standard & Poor's 500 Index ("S&P 500") that returned (5.08)% during the reporting period.

MARKET CONDITIONS AND THEIR IMPACT UPON FUND PERFORMANCE

The equity market had a negative return for the reporting period as investors became increasingly concerned about a possible recession due to a weakening dollar, inflation, rising commodity costs and a lack of transparency related to credit issues. Consequently, the best performing sectors of the S&P 500 Value during the period were Energy (up 21%), Industrials (up 10%) and Consumer Staples (up 8%). The worst performing sectors were Financials (down 28%) and Consumer Discretionary (down 20%). While the fund was correctly positioned by being overweight in Health Care, a traditionally defensive sector, and underweight Financials through the period, its negative security selection offset gains from positive sector selection.

Market trends within the S&P 500 Value index also impacted fund performance during the period and the most significant are discussed here. Positive influences on fund performance relative to the S&P 500 Value included overweight positions in companies with low leverage as well as a benchmark neutral exposure to companies with high reinvestment rates. Negative influences on the fund included outperfomance by companies with high price momentum as well as a relative benchmark overweight position in higher quality companies (as rated by Standard & Poor's).

1 The S&P 500/Citigroup Value Index is an unmanaged capitalization-weighted index of stocks in the Standard & Poor's 500 index using the S&P 500/Citigroup multifactor methodology to score constituents as Value. The index consists of approximately half of the S&P 500 on a market capitalization basis and has relatively low turnover. Indexes are unmanaged and it is not possible to invest directly in an index.

2 The S&P 500 Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. The index is unmanaged and, unlike the Fund, is not affected by cashflows. It is not possible to invest directly in an index.

SECTOR SELECTION IMPACT UPON FUND PERFORMANCE

Good sector selection contributed +2.25% to fund returns relative to the S&P 500 Value during the reporting period. Positive sector selection influences on performance included overweight positions in Health Care (contribution +0.72%), and Information Technology (contribution +0.84%), and an underweight position in Financials (contribution +2.06%).

Negative sector selection influences upon relative performance included underweight positions in Industrials (contribution (0.80)%), and Materials (contribution (0.30)%), and an overweight position in Consumer Discretionary (contribution (0.33)%).

SECURITY SELECTION IMPACT UPON FUND PERFORMANCE

Poor security selection contributed (10.51)% to fund returns relative to the S&P 500 Value during the reporting period. Negative influences on relative performance included unfavorable security selection in Information Technology (Alcatel-Lucent down 55% for net contribution of (1.39)%, Lexmark International down 45% for net contribution of (0.97)%, Nortel Networks down 52% for net contribution of (0.85)%); Health Care (Wyeth down 15% for net contribution of (0.43)%, Cardinal Health down 27% for net contribution of (0.55)%; UnitedHealth Group down 35% for net contribution of (0.51)%); and Telecommunication Services (Sprint Nextel Corp. down 62% for net contribution of (2.09)%).

GROWTH OF A $10,000 INVESTMENT - CLASS A SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in Federated American Leaders Fund, Inc. (Class A Shares) (the "Fund") from March 31, 1998 to March 31, 2008, compared to the Standard & Poor's 500/Citigroup Value Index (S&P 500/CV)² and the Lipper Large-Cap Value Average (LLCVA).²

Average Annual Total Returns³ for the Period Ended 3/31/2008
1 Year	(22.40	)%
5 Years	6.33	%
10 Years	0.96	%

Performance data quoted represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Mutual fund performance changes over time and current performance may be lower or higher than what is stated. For current to the most recent month-end performance and after-tax returns, visit FederatedInvestors.com or call 1-800-341-7400. Returns shown do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Mutual funds are not obligations of or guaranteed by any bank and are not federally insured. Total returns shown include the maximum sales charge of 5.50%.

1 Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 5.50% ($10,000 investment minus $550 sales charge = $9,450). The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500/CV and the LLCVA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

2 The S&P 500/CV is not adjusted to reflect sales charges, expenses or other fees that the Securities and Exchange Commission (SEC) requires to be reflected in the Fund's performance. The LLCVA represents the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling in the category indicated, and is not adjusted to reflect any sales charges. However, these total returns are reported net of expenses or other fees that the SEC requires to be reflected in the Fund's performance. The index is unmanaged and, unlike the Fund, is not affected by cashflows. It is not possible to invest directly in an index.

3 Total returns quoted reflect all applicable sales charges.

GROWTH OF A $10,000 INVESTMENT - CLASS B SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in Federated American Leaders Fund, Inc. (Class B Shares) (the "Fund") from March 31, 1998 to March 31, 2008, compared to the Standard & Poor's 500/Citigroup Value Index (S&P 500/CV)² and the Lipper Large-Cap Value Average (LLCVA).²

Average Annual Total Returns³ for the Period Ended 3/31/2008
1 Year	(22.07	)%
5 Years	6.43	%
10 Years	0.91	%

1 Represents a hypothetical investment of $10,000 in the Fund. The maximum contingent deferred sales charge is 5.50% on any redemption less than one year from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500/CV and the LLCVA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

2 The S&P 500/CV is not adjusted to reflect sales charges, expenses or other fees that the SEC requires to be reflected in the Fund's performance. The LLCVA represents the average of the total returns reported by all of the mutual funds designated by Lipper, Inc. as falling in the category indicated, and is not adjusted to reflect any sales charges. However, these total returns are reported net of expenses or other fees that the SEC requires to be reflected in the Fund's performance. The index is unmanaged and, unlike the Fund, is not affected by cashflows. It is not possible to invest directly in an index.

3 Total returns quoted reflect all applicable contingent deferred sales charges.

GROWTH OF A $10,000 INVESTMENT - CLASS C SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in Federated American Leaders Fund, Inc. (Class C Shares) (the "Fund") from March 31, 1998 to March 31, 2008, compared to the Standard & Poor's 500/Citigroup Value Index (S&P 500/CV)² and the Lipper Large-Cap Value Average (LLCVA).²

Average Annual Total Returns³ for the Period Ended 3/31/2008
1 Year	(19.14	)%
5 Years	6.72	%
10 Years	0.77	%

1 Represents a hypothetical investment of $10,000 in the Fund. A 1.00% contingent deferred sales charge would be applied to any redemption less than one year from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500/CV and the LLCVA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

3 Total returns quoted reflect all applicable contingent deferred sales charges.

GROWTH OF A $10,000 INVESTMENT - CLASS F SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in Federated American Leaders Fund, Inc. (Class F Shares) (the "Fund") from March 31, 1998 to March 31, 2008, compared to the Standard & Poor's 500/Citigroup Value Index (S&P 500/CV)² and the Lipper Large-Cap Value Average (LLCVA).²

Average Annual Total Returns³ for the Period Ended 3/31/2008
1 Year	(19.35	)%
5 Years	7.33	%
10 Years	1.44	%

1 Represents a hypothetical investment of $10,000 in the Fund after deducting the maximum sales charge of 1.00% ($10,000 investment minus $100 sales charge = $9,900). A contingent deferred sales charge of 1.00% would be applied to any redemption less than four years from the purchase date. The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500/CV and the LLCVA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

3 Total returns quoted reflect all applicable sales charges and contingent deferred sales charges.

GROWTH OF A $10,000 INVESTMENT - CLASS K SHARES

The graph below illustrates the hypothetical investment of $10,000¹ in Federated American Leaders Fund, Inc. (Class K Shares) (the "Fund") from March 31, 1998 to March 31, 2008, compared to the Standard & Poor's 500/Citigroup Value Index (S&P 500/CV)² and the Lipper Large-Cap Value Average (LLCVA).² The Fund's Class K Shares commenced operations on April 8, 2003. For the periods prior to the commencement of operations of the Class K Shares, the performance information shown is for the Fund's Class A Shares, adjusted to reflect the expenses of Class K Shares.

Average Annual Total Returns for the Period Ended 3/31/2008
1 Year	(18.27	)%
5 Years	7.06	%
10 Years	1.05	%

1 The Fund's performance assumes the reinvestment of all dividends and distributions. The S&P 500/CV and the LLCVA have been adjusted to reflect reinvestment of dividends on securities in the index and average.

Portfolio of Investments Summary Table

At March 31, 2008, the Fund's sector composition¹ was as follows:

Sector	Percentage of Total Net Assets
Financials	22.4	%
Information Technology	13.6	%
Energy	11.5	%
Health Care	11.1	%
Industrials	10.8	%
Consumer Staples	9.3	%
Consumer Discretionary	8.3	%
Materials	5.9	%
Utilities	3.4	%
Telecommunication Services	2.7	%
Securities Lending Collateral²	2.1	%
Cash Equivalents³	0.3	%
Other Assets and Liabilities--Net⁴	(1.4	)%
TOTAL	100.0	%

1 Except for Securities Lending Collateral, Cash Equivalents and Other Assets and Liabilities, sector classifications are based upon, and individual securities assigned to, the classifications of the Global Industry Classification Standard (GICS) except that the adviser assigns an index classification to securities not classified by the GICS and to securities for which the adviser does not have access to the classification made by the GICS.

2 Cash collateral received from lending portfolio securities which is invested in short term investments such as repurchase agreements or money market mutual funds.

3 Cash Equivalents include any investments in money market mutual funds and/or overnight repurchase agreements other than those representing securities lending collateral.

4 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Portfolio of Investments

March 31, 2008

Shares						Value
			COMMON STOCKS--99.0%
			Consumer Discretionary--8.3%
	2,029,500	¹	Ford Motor Co.		$	11,608,740
	585,800		Leggett and Platt, Inc.			8,933,450
	181,100		Magna International, Inc., Class A			13,066,365
	104,400		Nike, Inc., Class B			7,099,200
	274,700		Omnicom Group, Inc.			12,136,246
	723,400		Regal Entertainment Group			13,954,386
	532,500	²	TJX Cos., Inc.			17,609,775
	534,900		Walt Disney Co.			16,785,162
			TOTAL			101,193,324
			Consumer Staples--9.3%
	262,300		Altria Group, Inc.			5,823,060
	324,500	^1,2	Coca-Cola Femsa SA, ADR			18,279,085
	250,500		Kimberly-Clark Corp.			16,169,775
	293,800		Kraft Foods, Inc., Class A			9,110,738
	367,500		Kroger Co.			9,334,500
	262,300	¹	Philip Morris International, Inc.			13,267,134
	281,500		Reynolds American, Inc.			16,616,945
	454,900		Wal-Mart Stores, Inc.			23,964,132
			TOTAL			112,565,369
			Energy--11.5%
	200,100		BP PLC, ADR			12,136,065
	323,600		Chevron Corp.			27,622,496
	249,200		ConocoPhillips			18,991,532
Shares						Value
			COMMON STOCKS--continued
			Energy--continued
	339,200		Exxon Mobil Corp.		$	28,689,536
	194,000		Hess Corp.			17,106,920
	279,800		Occidental Petroleum Corp.			20,472,966
	286,100		Valero Energy Corp.			14,050,371
			TOTAL			139,069,886
			Financials--22.4%
	312,900		AON Corp.			12,578,580
	624,600		Ace Ltd.			34,390,476
	570,700		Aflac, Inc.			37,066,965
	349,700		Endurance Specialty Holdings Ltd.			12,799,020
	153,400		Goldman Sachs Group, Inc.			25,370,826
	105,100		Hartford Financial Services Group, Inc.			7,963,427
	956,400		J.P. Morgan Chase & Co.			41,077,380
	271,000		Lehman Brothers Holdings, Inc.			10,200,440
	585,100		Loews Corp.			23,532,722
	253,700	²	Merrill Lynch & Co., Inc.			10,335,738
	611,700		Morgan Stanley			27,954,690
	304,800		RenaissanceRe Holdings Ltd.			15,822,168
	438,900		Wells Fargo & Co.			12,771,990
			TOTAL			271,864,422
			Health Care--11.1%
	353,100		Abbott Laboratories			19,473,465
	846,200		Bristol-Myers Squibb Co.			18,024,060
	120,900		Cardinal Health, Inc.			6,348,459
	567,800		Covidien Ltd.			25,125,150
	352,300	¹	Forest Laboratories, Inc., Class A			14,095,523
Shares						Value
			COMMON STOCKS--continued
			Health Care--continued
	453,000		Johnson & Johnson	$		29,386,110
	437,400		Pfizer, Inc.			9,154,782
	271,200		UnitedHealth Group, Inc.			9,318,432
	87,200		Wyeth			3,641,472
			TOTAL			134,567,453
			Industrials--10.8%
	372,700		3M Co.			29,499,205
	312,500		Dover Corp.			13,056,250
	160,700		Eaton Corp.			12,802,969
	266,500		Illinois Tool Works, Inc.			12,853,295
	186,800		L-3 Communications Holdings, Inc.			20,424,712
	241,000		Lockheed Martin Corp.			23,931,300
	241,500		Northrop Grumman Corp.			18,791,115
			TOTAL			131,358,846
			Information Technology--13.6%
	144,500	¹	Computer Sciences Corp.			5,894,155
	643,500	¹	Dell, Inc.			12,818,520
	412,800	¹	Fiserv, Inc.			19,851,552
	654,700		Hewlett-Packard Co.			29,893,602
	197,300		IBM Corp.			22,717,122
	330,700		Intel Corp.			7,004,226
	800,500	¹	Oracle Corp.			15,657,780
	735,400	¹	Symantec Corp.			12,222,348
	108,500	¹	Visa, Inc., Class A			6,766,060
	639,300	^1,2	Western Digital Corp.			17,286,672
	1,027,700		Xerox Corp.			15,384,669
			TOTAL			165,496,706
Shares						Value
			COMMON STOCKS--continued
			Materials--5.9%
	571,100		Alcoa, Inc.		$	20,593,866
	337,500		Dow Chemical Co.			12,436,875
	180,400		Freeport-McMoRan Copper & Gold, Inc.			17,358,088
	200,700	²	PPG Industries, Inc.			12,144,357
	339,400	¹	Pactiv Corp.			8,895,674
			TOTAL			71,428,860
			Telecommunication Services--2.7%
	320,600		AT&T, Inc.			12,278,980
	550,842		Verizon Communications			20,078,191
			TOTAL			32,357,171
			Utilities--3.4%
	1,415,500		Duke Energy Corp.			25,266,675
	339,200	¹	NRG Energy, Inc.			13,225,408
	143,518		NiSource, Inc.			2,474,250
			TOTAL			40,966,333
			TOTAL COMMON STOCKS (IDENTIFIED COST $1,223,369,411)			1,200,868,370
			MUTUAL FUND--2.4%
	28,864,009	^3,4,5	Prime Value Obligations Fund, Institutional Shares, 3.25% (AT NET ASSET VALUE)			28,864,009
			TOTAL INVESTMENTS--101.4% (IDENTIFIED COST $1,252,233,420)⁶			1,229,732,379
			OTHER ASSETS AND LIABILITIES - NET--(1.4)%⁷			(17,324,905	)
			TOTAL NET ASSETS--100%		$	1,212,407,474

1 Non-income producing security.

2 All or a portion of these securities are temporarily on loan to unaffiliated broker/dealers.

3 Affiliated company.

4 7-Day net yield.

5 All or a portion of this security is held as collateral for securities lending.

6 The cost of investments for federal tax purposes amounts to $1,253,944,571.

7 Assets, other than investments in securities, less liabilities. See Statement of Assets and Liabilities.

Note: The categories of investments are shown as a percentage of total net assets at March 31, 2008.

The following acronym is used throughout this portfolio:

ADR	- --American Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

March 31, 2008

Assets:
Total investments in securities, at value including $28,864,009 of an investment in an affiliated issuer (Note 5) and $25,276,677 of securities loaned (identified cost $1,252,233,420)			$	1,229,732,379
Cash				350
Income receivable				1,793,679
Receivable for investments sold				32,741,850
Receivable for shares sold				267,025
TOTAL ASSETS				1,264,535,283
Liabilities:
Payable for investments purchased	$	21,404,472
Payable for shares redeemed		3,413,660
Payable for Directors'/Trustees' fees		3,826
Payable for distribution services fee (Note 5)		163,554
Payable for shareholder services fee (Note 5)		422,592
Payable for collateral due to broker for securities loaned		25,728,575
Accrued expenses		991,130
TOTAL LIABILITIES				52,127,809
Net assets for 79,058,823 shares outstanding			$	1,212,407,474
Net Assets Consist of:
Paid-in capital			$	1,447,117,764
Net unrealized depreciation of investments				(22,501,041	)
Accumulated net realized loss on investments				(213,054,449	)
Undistributed net investment income				845,200
TOTAL NET ASSETS			$	1,212,407,474

Statement of Assets and Liabilities-continued

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($924,098,187 ÷ 60,312,993 shares outstanding), $0.20 par value, 125,000,000 shares authorized						$15.32
Offering price per share (100/94.50 of $15.32)¹						$16.21
Redemption proceeds per share						$15.32
Class B Shares:
Net asset value per share ($179,737,990 ÷ 11,672,859 shares outstanding), $0.20 par value, 125,000,000 shares authorized						$15.40
Offering price per share						$15.40
Redemption proceeds per share (94.50/100 of $15.40)¹						$14.55
Class C Shares:
Net asset value per share ($63,025,843 ÷ 4,095,377 shares outstanding), $0.20 par value, 125,000,000 shares authorized						$15.39
Offering price per share						$15.39
Redemption proceeds per share (99.00/100 of $15.39)¹						$15.24
Class F Shares:
Net asset value per share ($31,408,319 ÷ 2,055,076 shares outstanding), $0.20 par value, 125,000,000 shares authorized						$15.28
Offering price per share (100/99.00 of $15.28)¹						$15.43
Redemption proceeds per share (99.00/100 of $15.28)¹						$15.13
Class K Shares:
Net asset value per share ($14,137,135 ÷ 922,518 shares outstanding), $0.20 par value, 125,000,000 shares authorized						$15.32
Offering price per share						$15.32
Redemption proceeds per share						$15.32

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Year Ended March 31, 2008

Investment Income:
Dividends (including $663,080 received from an affiliated issuer (Note 5) and net of foreign taxes withheld of $101,434)			$	36,538,942
Interest (including income on securities loaned of $209,634)				293,960
TOTAL INCOME				36,832,902
Expenses:
Investment adviser fee (Note 5)	$	11,376,068
Administrative personnel and services fee (Note 5)		1,392,326
Custodian fees		79,069
Transfer and dividend disbursing agent fees and expenses--Class A Shares		2,195,127
Transfer and dividend disbursing agent fees and expenses--Class B Shares		615,507
Transfer and dividend disbursing agent fees and expenses--Class C Shares		169,982
Transfer and dividend disbursing agent fees and expenses--Class F Shares		64,662
Transfer and dividend disbursing agent fees and expenses--Class K Shares		122,043
Directors'/Trustees' fees		37,201
Auditing fees		27,000
Legal fees		11,497
Portfolio accounting fees		211,547
Distribution services fee--Class B Shares (Note 5)		2,212,499
Distribution services fee--Class C Shares (Note 5)		678,904
Distribution services fee--Class K Shares (Note 5)		170,233
Shareholder services fee--Class A Shares (Note 5)		3,208,565
Shareholder services fee--Class B Shares (Note 5)		737,500
Shareholder services fee--Class C Shares (Note 5)		218,237
Shareholder services fee--Class F Shares (Note 5)		104,793
Account administration fee--Class A Shares		916
Account administration fee--Class C Shares		1,218
Share registration costs		97,209
Printing and postage		207,590
Insurance premiums		10,553
Taxes		124,983
Miscellaneous		14,642
TOTAL EXPENSES		24,089,871

Statement of Operations-continued

Waiver, Reimbursement and Expense Reduction (Note 5):
Reimbursement of investment adviser fee	$	(29,313	)
Waiver of administrative personnel and services fee		(46,002	)
Fees paid indirectly from directed brokerage arrangements		(148,981	)
TOTAL WAIVER, REIMBURSEMENT AND EXPENSE REDUCTION				$	(224,296	)
Net expenses							$	23,865,575
Net investment income								12,967,327
Realized and Unrealized Loss on Investments:
Net realized loss on investments								(60,416,265	)
Net change in unrealized appreciation of investments								(242,791,152	)
Net realized and unrealized loss on investments								(303,207,417	)
Change in net assets resulting from operations							$	(290,240,090	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Year Ended March 31		2008			2007
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	12,967,327		$	17,827,128
Net realized gain (loss) on investments		(60,416,265	)		313,579,987
Net change in unrealized appreciation/depreciation of investments		(242,791,152	)		(121,015,790	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(290,240,090	)		210,391,325
Distributions to Shareholders:
Distributions from net investment income
Class A Shares		(11,838,665	)		(16,850,055	)
Class B Shares		(142,104	)		(1,319,264	)
Class C Shares		(121,595	)		(365,841	)
Class F Shares		(412,162	)		(595,998	)
Class K Shares		(107,967	)		(355,171	)
Distributions from net realized gain on investments
Class A Shares		(252,706,998	)		(144,146,676	)
Class B Shares		(52,823,035	)		(43,007,779	)
Class C Shares		(17,115,507	)		(10,621,023	)
Class F Shares		(8,444,061	)		(4,977,709	)
Class K Shares		(3,430,400	)		(5,405,488	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(347,142,494	)		(227,645,004	)
Share Transactions:
Proceeds from sale of shares		163,591,990			257,689,072
Net asset value of shares issued to shareholders in payment of distributions declared		315,873,283			208,541,991
Cost of shares redeemed		(682,657,000	)		(739,916,346	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(203,191,727	)		(273,685,283	)
Regulatory Settlement Proceeds:
Net increase from regulatory settlement proceeds (Note 9)		- --			86,478
Change in net assets		(840,574,311	)		(290,852,484	)
Net Assets:
Beginning of period		2,052,981,785			2,343,834,269
End of period (including undistributed net investment income of $845,200 and $500,366, respectively)	$	1,212,407,474		$	2,052,981,785

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

March 31, 2008

1. ORGANIZATION

Federated American Leaders Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended (the "Act"), as a diversified, open-end management investment company. The Fund offers five classes of shares: Class A Shares, Class B Shares, Class C Shares, Class F Shares and Class K Shares. All shares of the Fund have equal rights with respect to voting, except on class-specific matters. The investment objective of the Fund is to seek growth of capital and income by concentrating the area of investment decision in the securities of high-quality companies.

2. SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles (GAAP) in the United States of America.

Investment Valuation

In calculating its net asset value (NAV), the Fund generally values investments as follows:

Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
Shares of other mutual funds are valued based upon their reported NAVs.
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Directors (the "Directors").
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Directors.

If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund's NAV.

Fair Valuation and Significant Events Procedures

The Directors have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a "bid" evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a "mid" evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Directors.

The Directors also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment's value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:

With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer's operations or regulatory changes or market developments affecting the issuer's industry.

The Directors have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Directors.

Repurchase Agreements

It is the policy of the Fund to require the other party to a repurchase agreement to transfer to the Fund's custodian or sub-custodian eligible securities or cash with a market value (after transaction costs) at least equal to the repurchase price to be paid under the repurchase agreement. The eligible securities are transferred to accounts with the custodian or sub-custodian in which the Fund holds a "securities entitlement" and exercises "control" as those terms are defined in the Uniform Commercial Code. The Fund has established procedures for monitoring the market value of the transferred securities and requiring the transfer of additional eligible securities if necessary to equal at least the repurchase price. These procedures also allow the other party to require securities to be transferred from the account to the extent that their market value exceeds the repurchase price or in exchange for other eligible securities of equivalent market value.

With respect to agreements to repurchase U.S. government securities and cash items, the Fund treats the repurchase agreement as an investment in the underlying securities and not as an obligation of the other party to the repurchase agreement. Other repurchase agreements are treated as obligations of the other party secured by the underlying securities. Nevertheless, the insolvency of the other party or other failure to repurchase the securities may delay the disposition of the underlying securities or cause the Fund to receive less than the full repurchase price. Under the terms of the repurchase agreement, any amounts received by the Fund in excess of the repurchase price and related transaction costs must be remitted to the other party.

The Fund may enter into repurchase agreements in which eligible securities are transferred into joint trading accounts maintained by the custodian or sub-custodian for investment companies and other clients advised by the Fund's Adviser and its affiliates. The Fund will participate on a pro rata basis with the other investment companies and clients in its share of the securities transferred under such repurchase agreements and in its share of proceeds from any repurchase or other disposition of such securities.

Investment Income, Gains and Losses, Expenses and Distributions

Interest income and expenses are accrued daily. Dividend income and distributions to shareholders are recorded on the ex-dividend date. Foreign dividends are recorded on the ex-dividend date or when the Fund is informed of the ex-dividend date. Distributions of net investment income are declared and paid quarterly. Non-cash dividends included in dividend income, if any, are recorded at fair value. Investment income, realized and unrealized gains and losses, and certain fund-level expenses are allocated to each class based on relative average daily net assets, except that Class A Shares, Class B Shares, Class C Shares, Class F Shares and Class K Shares may bear distribution services fees, shareholder services fees, account administration fees and certain transfer and dividend disbursing agent fees unique to those classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Premium and Discount Amortization

All premiums and discounts on fixed-income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal income tax is necessary. Withholding taxes and where appropriate, deferred withholding taxes on foreign interest, dividends and capital gains have been provided for in accordance with the applicable country's tax rules and rates. The Fund adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes", on September 28, 2007. As of and during the year ended March 31, 2008, the Fund did not have a liability for any unrecognized tax expenses. The Fund recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statement of Operations. As of March 31, 2008, tax years 2005 through 2008 remain subject to examination by the Fund's major tax jurisdictions, which include the United States of America and the states of Maryland and Pennsylvania.

Other Taxes

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Securities Lending

The Fund participates in a securities lending program providing for the lending of equity securities to qualified brokers. The Fund normally receives cash collateral for securities loaned that is invested in an affiliated money market fund or in short-term securities including repurchase agreements. Collateral is maintained at a minimum level of 100% of the market value of investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the securities lending agent, as a fee for its services under the program, and the Fund, according to agreed-upon rates.

As of March 31, 2008, securities subject to this type of arrangement and related collateral were as follows:

Market Value of Securities Loaned		Market Value of Collateral
$25,276,677		$25,728,575

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade-date basis. Realized gains and losses from investment transactions are recorded on an identified cost basis.

3. CAPITAL STOCK

The following tables summarize capital stock activity:

Year Ended March 31	2008					2007
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	5,802,986		$	125,982,521		8,143,452		$	198,192,711
Shares issued to shareholders in payment of distributions declared	13,611,491			239,153,958		6,133,733			146,742,920
Shares redeemed	(20,661,712	)		(418,837,217	)	(16,372,247	)		(397,492,806	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(1,247,235	)	$	(53,700,738	)	(2,095,062	)	$	(52,557,175	)

Year Ended March 31	2008					2007
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	443,362		$	9,447,420		715,182		$	17,417,244
Shares issued to shareholders in payment of distributions declared	2,875,988			50,426,564		1,738,422			41,703,666
Shares redeemed	(8,068,751	)		(174,116,746	)	(10,529,603	)		(256,599,547	)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(4,749,401	)	$	(114,242,762	)	(8,075,999	)	$	(197,478,637	)

Year Ended March 31	2008					2007
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	673,675		$	13,614,829		657,380		$	16,045,565
Shares issued to shareholders in payment of distributions declared	875,857			15,354,973		401,621			9,635,468
Shares redeemed	(1,832,506	)		(37,451,537	)	(1,327,607	)		(32,401,457	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(282,974	)	$	(8,481,735	)	(268,606	)	$	(6,720,424	)

Year Ended March 31	2008					2007
Class F Shares:	Shares			Amount		Shares			Amount
Shares sold	88,386		$	1,673,643		77,003		$	1,841,563
Shares issued to shareholders in payment of distributions declared	422,406			7,401,383		196,800			4,700,326
Shares redeemed	(573,456	)		(11,763,171	)	(642,028	)		(15,537,652	)
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS	(62,664	)	$	(2,688,145	)	(368,225	)	$	(8,995,763	)

Year Ended March 31	2008					2007
Class K Shares:	Shares			Amount		Shares			Amount
Shares sold	579,986		$	12,873,577		994,142		$	24,191,989
Shares issued to shareholders in payment of distributions declared	201,703			3,536,405		240,941			5,759,611
Shares redeemed	(1,753,970	)		(40,488,329	)	(1,560,178	)		(37,884,884	)
NET CHANGE RESULTING FROM CLASS K SHARE TRANSACTIONS	(972,281	)	$	(24,078,347	)	(325,095	)	$	(7,933,284	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(7,314,555	)	$	(203,191,727	)	(11,132,987	)	$	(273,685,283	)

4. FEDERAL TAX INFORMATION

The tax character of distributions as reported on the Statement of Changes in Net Assets for the years ended March 31, 2008 and 2007, was as follows:

	2008	2007
Ordinary income¹	$ 60,678,568	$ 42,239,449
Long-term capital gains	$286,463,926	$185,405,555

1 For tax purposes, short-term capital gain distributions are considered ordinary income distributions.

As of March 31, 2008, the components of distributable earnings on a tax basis were as follows:

Undistributed ordinary income	$	845,198
Net unrealized depreciation	$	(24,212,192	)
Capital loss deferrals	$	(211,343,296	)

The difference between book-basis and tax-basis net unrealized appreciation/depreciation is attributable to differing treatments for the deferral of losses on wash sales.

At March 31, 2008, the cost of investments for federal tax purposes was $1,253,944,571. The net unrealized depreciation of investments for federal tax purposes was $24,212,192. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $40,076,662 and net unrealized depreciation from investments for those securities having an excess of cost over value of $64,288,854.

Under current tax regulations, capital losses on securities transactions realized after October 31 may be deferred and treated as occurring on the first day of the following fiscal year. As of March 31, 2008, for federal income tax purposes, post October losses of $211,343,296 were deferred to April 1, 2008.

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Equity Management Company of Pennsylvania is the Fund's investment adviser (the "Adviser"). The advisory agreement between the Fund and Adviser provides for an annual fee equal to: (a) 0.55% of the average daily net assets of the Fund; and (b) 4.50% of the gross income of the Fund, excluding capital gain or losses. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Federated Administrative Services (FAS), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FAS is based on the average aggregate daily net assets of certain Federated funds as specified below:

Administrative Fee		Average Aggregate Daily Net Assets of the Federated Funds
0.150%		on the first $5 billion
0.125%		on the next $5 billion
0.100%		on the next $10 billion
0.075%		on assets in excess of $20 billion

The administrative fee received during any fiscal year shall be at least $150,000 per portfolio and $40,000 per each additional class of Shares. FAS may voluntarily choose to waive any portion of its fee. FAS can modify or terminate this voluntary waiver at any time at its sole discretion. For the year ended March 31, 2008, the net fee paid to FAS was 0.076% of average daily net assets of the Fund. FAS waived $46,002 of its fee.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. (FSC), the principal distributor, from the daily net assets of the Fund's Class B Shares, Class C Shares and Class K Shares to finance activities intended to result in the sale of these shares. The Plan provides that the Fund may incur distribution expenses at the following percentages of average daily net assets annually, to compensate FSC:

Share Class Name		Percentage of Average Daily Net Assets of Class
Class B Shares		0.75%
Class C Shares		0.75%
Class K Shares		0.50%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion. When FSC receives fees, it may pay some or all of them to financial intermediaries whose customers purchase shares. For the year ended March 31, 2008, FSC retained $51,787 of fees paid by the Fund.

Sales Charges

For the year ended March 31, 2008, FSC retained $60,649 in sales charges from the sale of Class A Shares. FSC also retained $5,217 of contingent deferred sales charges relating to redemptions of Class A Shares, $1,654 relating to redemptions of Class C Shares and $7,135 relating to redemptions of Class F Shares. See "What Do Shares Cost?" in the Prospectus.

Shareholder Services Fee

The Fund may pay fees (Service Fees) up to 0.25% of the average daily net assets of the Fund's Class A Shares, Class B Shares, Class C Shares and Class F Shares to financial intermediaries or to Federated Shareholder Services Company (FSSC) for providing services to shareholders and maintaining shareholder accounts. Financial intermediaries may include a company affiliated with management of Federated Investors, Inc. A financial intermediary affiliated with management of Federated Investors, Inc. received $2,426 of Service Fees for the year ended March 31, 2008. FSSC may voluntarily reimburse the Fund for shareholder services fees. This voluntary reimbursement can be modified or terminated at any time. For the year ended March 31, 2008, FSSC received $620,069 of fees paid by the Fund.

Expense Reduction

The Fund directs portfolio trades to a broker that in turn pays a portion of the Fund's operating expenses. For the year ended March 31, 2008, the Fund's expenses were reduced by $148,981 under these arrangements.

General

Certain of the Officers and Directors of the Fund are Officers and Directors or Trustees of the above companies.

Transactions with Affiliated Companies

Affiliated holdings are mutual funds which are managed by the Adviser or an affiliate of the Adviser. The Adviser has agreed to reimburse the Fund for certain investment adviser fees as a result of transactions in other affiliated mutual funds. For the year ended March 31, 2008, the Adviser reimbursed $29,313. Transactions with the affiliated company during the year ended March 31, 2008 are as follows:

Affiliate		Balance of Shares Held 3/31/2007		Purchases/ Additions		Sales/ Reductions		Balance of Shares Held 3/31/2008		Value		Dividend Income
Prime Value Obligations Fund, Institutional Shares		11,869,706		953,634,760		936,640,457		28,864,009		$28,864,009		$663,080

6. INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations, for the year ended March 31, 2008, were as follows:

Purchases		$	1,682,786,293
Sales		$	2,213,725,204

7. LINE OF CREDIT

The Fund participates in a $100,000,000 unsecured, uncommitted revolving line of credit (LOC) agreement with PNC Bank. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.65% over the federal funds rate. As of March 31, 2008, there were no outstanding loans. During the year ended March 31, 2008, the Fund did not utilize the LOC.

8. INTERFUND LENDING

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (SEC), the Fund, along with other funds advised by subsidiaries of Federated Investors, Inc., may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from other participating affiliated funds. As of March 31, 2008, there were no outstanding loans. During the year ended March 31, 2008, the program was not utilized.

9. REGULATORY SETTLEMENT PROCEEDS

During the year ended March 31, 2007, the Fund received $86,478 from an unaffiliated third party in settlement of administrative proceedings involving findings by the SEC of market timing and/or late trading of mutual funds. The settlement is recorded as an increase to paid-in capital.

10. LEGAL PROCEEDINGS

Since October, 2003, Federated Investors, Inc. and related entities (collectively, "Federated"), and various Federated funds ("Funds") have been named as defendants in several class action lawsuits now pending in the United States District Court for the District of Maryland. The lawsuits were purportedly filed on behalf of people who purchased, owned and/or redeemed shares of Federated-sponsored mutual funds during specified periods beginning November 1, 1998. The suits are generally similar in alleging that Federated engaged in illegal and improper trading practices including market timing and late trading in concert with certain institutional traders, which allegedly caused financial injury to the mutual fund shareholders. These lawsuits began to be filed shortly after Federated's first public announcement that it had received requests for information on shareholder trading activities in the Funds from the SEC, the Office of the New York State Attorney General ("NYAG"), and other authorities. In that regard, on November 28, 2005, Federated announced that it had reached final settlements with the SEC and the NYAG with respect to those matters. As Federated previously reported in 2004, it has already paid approximately $8.0 million to certain funds as determined by an independent consultant. As part of these settlements, Federated agreed to pay for the benefit of fund shareholders additional disgorgement and a civil money penalty in the aggregate amount of an additional $72 million. Federated entities have also been named as defendants in several additional lawsuits that are now pending in the United States District Court for the Western District of Pennsylvania, alleging, among other things, excessive advisory and Rule 12b-1 fees. The Board of the Funds retained the law firm of Dickstein Shapiro LLP to represent the Funds in these lawsuits. Federated and the Funds, and their respective counsel have been defending this litigation, and none of the Funds remains a defendant in any of the lawsuits (though some could potentially receive any recoveries as nominal defendants). Additional lawsuits based upon similar allegations may be filed in the future. The potential impact of these lawsuits, all of which seek unquantified damages, attorneys' fees and expenses, and future potential similar suits is uncertain. Although we do not believe that these lawsuits will have a material adverse effect on the Funds, there can be no assurance that these suits, the ongoing adverse publicity and/or other developments resulting from the regulatory investigations will not result in increased Fund redemptions, reduced sales of Fund shares, or other adverse consequences for the Funds.

11. RECENT ACCOUNTING PRONOUNCEMENTS

In September 2006, the Financial Accounting Standards Board released Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157), which is effective for fiscal years beginning after November 15, 2007. FAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management has concluded that the adoption of FAS 157 is not expected to have a material impact on the Fund's net assets or results of operations.

12. FEDERAL TAX INFORMATION (UNAUDITED)

For the year ended March 31, 2008, the amount of long-term capital gains designated by the Fund was $286,463,926.

For the fiscal year ended March 31, 2008, 85.5% of total ordinary dividends paid by the Fund are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information is reported in conjunction with the reporting of your distributions on Form 1099-DIV.

Of the ordinary income (including short-term capital gain) distributions made by the Fund during the year ended March 31, 2008, 79.3% qualify for the dividend received deduction available to corporate shareholders.

Report of Independent Registered Public Accounting Firm

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
FEDERATED AMERICAN LEADERS FUND, INC.:

We have audited the accompanying statement of assets and liabilities of Federated American Leaders Fund, Inc. (the "Fund"), including the portfolio of investments, as of March 31, 2008, and the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for each of the two years in the period ended March 31, 2005 were audited by another independent registered public accounting firm whose report, dated May 18, 2005, expressed an unqualified opinion on those financial highlights.

We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Fund's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2008, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Federated American Leaders Fund, Inc. at March 31, 2008, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and its financial highlights for each of the three years in the period then ended, in conformity with U.S. generally accepted accounting principles.

Ernst & Young LLP

Boston, Massachusetts
May 20, 2008

Board of Directors and Fund Officers

The Board is responsible for managing the Fund's business affairs and for exercising all the Fund's powers except those reserved for the shareholders. The following tables give information about each Board member and the senior officers of the Fund. Where required, the tables separately list Board members who are "interested persons" of the Fund (i.e., "Interested" Board members) and those who are not (i.e., "Independent" Board members). Unless otherwise noted, the address of each person listed is Federated Investors Tower, 1001 Liberty Avenue, Pittsburgh, PA 15222. The address of all Independent Board members listed is 5800 Corporate Drive, Pittsburgh, PA 15237-7000; Attention: Mutual Fund Board. As of December 31, 2007, the Corporation comprised one portfolio, and the Federated Fund Complex consisted of 40 investment companies (comprising 148 portfolios). Unless otherwise noted, each Officer is elected annually. Unless otherwise noted, each Board member oversees all portfolios in the Federated Fund Complex and serves for an indefinite term. The Fund's Statement of Additional Information includes additional information about Fund Directors and is available, without charge and upon request, by calling 1-800-341-7400.

INTERESTED DIRECTORS BACKGROUND


Name Birth Date Positions Held with Fund Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
John F. Donahue* Birth Date: July 28, 1924 DIRECTOR Began serving: July 1968		Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman and Director, Federated Investors, Inc.; Chairman of the Federated Fund Complex's Executive Committee. Previous Positions: Chairman of the Federated Fund Complex; Trustee, Federated Investment Management Company and Chairman and Director, Federated Investment Counseling.

J. Christopher Donahue* Birth Date: April 11, 1949 PRESIDENT AND DIRECTOR Began serving: October 1999		Principal Occupations: Principal Executive Officer and President of the Federated Fund Complex; Director or Trustee of some of the Funds in the Federated Fund Complex; President, Chief Executive Officer and Director, Federated Investors, Inc.; Chairman and Trustee, Federated Investment Management Company; Trustee, Federated Investment Counseling; Chairman and Director, Federated Global Investment Management Corp.; Chairman, Federated Equity Management Company of Pennsylvania and Passport Research, Ltd. (Investment advisory subsidiary of Federated); Trustee, Federated Shareholder Services Company; Director, Federated Services Company. Previous Positions: President, Federated Investment Counseling; President and Chief Executive Officer, Federated Investment Management Company, Federated Global Investment Management Corp. and Passport Research, Ltd.

* Family relationships and reasons for "interested" status: John F. Donahue is the father of J. Christopher Donahue; both are "interested" due to their beneficial ownership of shares of Federated Investors, Inc. and the positions they hold with Federated and its subsidiaries.

INDEPENDENT DIRECTORS BACKGROUND


Name Birth Date Positions Held with Fund Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
Thomas G. Bigley Birth Date: February 3, 1934 DIRECTOR Began serving: November 1994		Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director, Member of Executive Committee, Children's Hospital of Pittsburgh; Director, University of Pittsburgh. Previous Position: Senior Partner, Ernst & Young LLP.

John T. Conroy, Jr. Birth Date: June 23, 1937 DIRECTOR Began serving: August 1991		Principal Occupations: Director or Trustee of the Federated Fund Complex; Chairman of the Board, Investment Properties Corporation; Partner or Trustee in private real estate ventures in Southwest Florida; Assistant Professor in Theology at Barry University and Blessed Edmund Rice School for Pastoral Ministry. Previous Positions: President, Investment Properties Corporation; Senior Vice President, John R. Wood and Associates, Inc., Realtors; President, Naples Property Management, Inc. and Northgate Village Development Corporation.

Nicholas P. Constantakis Birth Date: September 3, 1939 DIRECTOR Began serving: October 1999		Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Director and Chairman of the Audit Committee, Michael Baker Corporation (engineering and energy services worldwide). Previous Position: Partner, Andersen Worldwide SC.

John F. Cunningham Birth Date: March 5, 1943 DIRECTOR Began serving: April 1999		Principal Occupations: Director or Trustee of the Federated Fund Complex; Director, QSGI, Inc. (technology services company). Other Directorships Held: Chairman, President and Chief Executive Officer, Cunningham & Co., Inc. (strategic business consulting); Trustee Associate, Boston College. Previous Positions: Director, Redgate Communications and EMC Corporation (computer storage systems); Chairman of the Board and Chief Executive Officer, Computer Consoles, Inc.; President and Chief Operating Officer, Wang Laboratories; Director, First National Bank of Boston; Director, Apollo Computer, Inc.


Name Birth Date Positions Held with Fund Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
Peter E. Madden Birth Date: March 16, 1942 DIRECTOR Began serving: August 1991		Principal Occupation: Director or Trustee of the Federated Fund Complex. Other Directorships Held: Board of Overseers, Babson College. Previous Positions: Representative, Commonwealth of Massachusetts General Court; President, State Street Bank and Trust Company and State Street Corporation (retired); Director, VISA USA and VISA International; Chairman and Director, Massachusetts Bankers Association; Director, Depository Trust Corporation; Director, The Boston Stock Exchange.

Charles F. Mansfield, Jr. Birth Date: April 10, 1945 DIRECTOR Began serving: April 1999		Principal Occupations: Director or Trustee of the Federated Fund Complex; Management Consultant. Previous Positions: Chief Executive Officer, PBTC International Bank; Partner, Arthur Young & Company (now Ernst & Young LLP); Chief Financial Officer of Retail Banking Sector, Chase Manhattan Bank; Senior Vice President, HSBC Bank USA (formerly, Marine Midland Bank); Vice President, Citibank; Assistant Professor of Banking and Finance, Frank G. Zarb School of Business, Hofstra University; Executive Vice President DVC Group, Inc. (marketing, communications and technology).

John E. Murray, Jr., J.D., S.J.D. Birth Date: December 20, 1932 DIRECTOR Began serving: February 1995		Principal Occupations: Director or Trustee, and Chairman of the Board of Directors or Trustees, of the Federated Fund Complex; Chancellor and Law Professor, Duquesne University; Partner, Murray, Hogue & Lannis. Other Directorships Held: Director, Michael Baker Corp. (engineering, construction, operations and technical services). Previous Positions: President, Duquesne University; Dean and Professor of Law, University of Pittsburgh School of Law; Dean and Professor of Law, Villanova University School of Law.

Thomas M. O'Neill Birth Date: June 14, 1951 DIRECTOR Began serving: October 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; Managing Director and Partner, Navigator Management Company, L.P. (investment and strategic consulting). Other Directorships Held: Board of Overseers, Children's Hospital of Boston; Visiting Committee on Athletics, Harvard College. Previous Positions: Chief Executive Officer and President, Managing Director and Chief Investment Officer, Fleet Investment Advisors; President and Chief Executive Officer, Aeltus Investment Management, Inc.; General Partner, Hellman, Jordan Management Co., Boston, MA; Chief Investment Officer, The Putnam Companies, Boston, MA; and Credit Analyst and Lending Officer, Fleet Bank.


Name Birth Date Positions Held with Fund Date Service Began		Principal Occupation(s) for Past Five Years, Other Directorships Held and Previous Position(s)
Marjorie P. Smuts Birth Date: June 21, 1935 DIRECTOR Began serving: February 1984		Principal Occupations: Director or Trustee of the Federated Fund Complex; formerly, Public Relations/Marketing Consultant/Conference Coordinator. Previous Positions: National Spokesperson, Aluminum Company of America; television producer; President, Marj Palmer Assoc.; Owner, Scandia Bord.

John S. Walsh Birth Date: November 28, 1957 DIRECTOR Began serving: April 1999		Principal Occupations: Director or Trustee of the Federated Fund Complex; President and Director, Heat Wagon, Inc. (manufacturer of construction temporary heaters); President and Director, Manufacturers Products, Inc. (distributor of portable construction heaters); President, Portable Heater Parts, a division of Manufacturers Products, Inc. Previous Position: Vice President, Walsh & Kelly, Inc.

James F. Will Birth Date: October 12, 1938 DIRECTOR Began serving: April 2006		Principal Occupations: Director or Trustee of the Federated Fund Complex; formerly, Vice Chancellor and President, Saint Vincent College. Other Directorships Held: Trustee, Saint Vincent College; Alleghany Corporation. Previous Positions: Chairman, President and Chief Executive Officer, Armco, Inc.; President and Chief Executive Officer, Cyclops Industries; President and Chief Operating Officer, Kaiser Steel Corporation.

OFFICERS


Name Birth Date Address Positions Held with Fund Date Service Began		Principal Occupation(s) for Past Five Years and Previous Position(s)
John W. McGonigle Birth Date: October 26, 1938 EXECUTIVE VICE PRESIDENT AND SECRETARY Began serving: May 1969		Principal Occupations: Executive Vice President and Secretary of the Federated Fund Complex; Vice Chairman, Executive Vice President, Secretary and Director, Federated Investors, Inc. Previous Positions: Trustee, Federated Investment Management Company and Federated Investment Counseling; Director, Federated Global Investment Management Corp., Federated Services Company and Federated Securities Corp.


Name Birth Date Address Positions Held with Fund Date Service Began		Principal Occupation(s) for Past Five Years and Previous Position(s)
Richard A. Novak Birth Date: December 25, 1963 TREASURER Began serving: January 2006		Principal Occupations: Principal Financial Officer and Treasurer of the Federated Fund Complex; Senior Vice President, Federated Administrative Services; Financial and Operations Principal for Federated Securities Corp., Edgewood Services, Inc. and Southpointe Distribution Services, Inc. Previous Positions: Controller of Federated Investors, Inc.; Vice President, Finance of Federated Services Company; held various financial management positions within The Mercy Hospital of Pittsburgh; Auditor, Arthur Andersen & Co

Richard B. Fisher Birth Date: May 17, 1923 VICE PRESIDENT Began serving: May 1976		Principal Occupations: Vice Chairman or Vice President of some of the Funds in the Federated Fund Complex; Vice Chairman, Federated Investors, Inc.; Chairman, Federated Securities Corp. Previous Positions: President and Director or Trustee of some of the Funds in the Federated Fund Complex; Executive Vice President, Federated Investors, Inc. and Director and Chief Executive Officer, Federated Securities Corp.

Brian P. Bouda Birth Date: February 28, 1947 SENIOR VICE PRESIDENT AND CHIEF COMPLIANCE OFFICER Began serving: August 2004		Principal Occupations: Senior Vice President and Chief Compliance Officer of the Federated Fund Complex; Vice President and Chief Compliance Officer of Federated Investors, Inc.; and Chief Compliance Officer of its subsidiaries. Mr. Bouda joined Federated in 1999 and is a member of the American Bar Association and the State Bar Association of Wisconsin.

Stephen F. Auth Birth Date: September 3, 1956 450 Lexington Avenue Suite 3700 New York, NY 10017-3943 CHIEF INVESTMENT OFFICER Began serving: November 2002		Principal Occupations: Chief Investment Officer of this Fund and various other Funds in the Federated Fund Complex; Executive Vice President, Federated Investment Counseling, Federated Global Investment Management Corp. and Federated Equity Management Company of Pennsylvania. Previous Positions: Executive Vice President, Federated Investment Management Company, and Passport Research, Ltd. (Investment advisory subsidiary of Federated); Senior Vice President, Global Portfolio Management Services Division; Senior Vice President, Federated Investment Management Company and Passport Research, Ltd.; Senior Managing Director and Portfolio Manager, Prudential Investments.

Evaluation and Approval of Advisory Contract

FEDERATED AMERICAN LEADERS FUND, INC. (THE "FUND")

The Fund's Board reviewed the Fund's investment advisory contract at meetings held in May 2007. The Board's decision regarding the contract reflects the exercise of its business judgment on whether to continue the existing arrangements.

In this connection, the Federated funds had previously appointed a Senior Officer, whose duties include specified responsibilities relating to the process by which advisory fees are to be charged to a Federated fund. The Senior Officer has the authority to retain consultants, experts, or staff as may be reasonably necessary to assist in the performance of his duties, reports directly to the Board, and may be terminated only with the approval of a majority of the independent members of the Board. The Senior Officer prepared and furnished to the Board an independent written evaluation that covered topics discussed below. The Board considered that evaluation, along with other information, in deciding to approve the advisory contract.

During its review of the contract, the Board considered compensation and benefits received by the Adviser. This included the fees received for services provided to the Fund by other entities in the Federated organization and research services received by the Adviser from brokers that execute Federated fund trades, as well as advisory fees. The Board is also familiar with and considered judicial decisions concerning allegedly excessive investment advisory fees which have indicated that the following factors may be relevant to an Adviser's fiduciary duty with respect to its receipt of compensation from a fund: the nature and quality of the services provided by the Adviser, including the performance of the Fund; the Adviser's cost of providing the services; the extent to which the Adviser may realize "economies of scale" as the Fund grows larger; any indirect benefits that may accrue to the Adviser and its affiliates as a result of the Adviser's relationship with the Fund; performance and expenses of comparable funds; and the extent to which the independent Board members are fully informed about all facts the Board deems relevant bearing on the Adviser's services and fees. The Board further considered management fees (including any components thereof) charged to institutional and other clients of the Adviser for what might be viewed as like services, and costs to the Adviser and its affiliates of supplying services pursuant to the management fee agreements, excluding any intra-corporate profit and profit margins of the Adviser and its affiliates from supplying such services. The Board was aware of these factors and was guided by them in its review of the Fund's advisory contract to the extent it considered them to be appropriate and relevant, as discussed further below.

The Board considered and weighed these circumstances in light of its substantial accumulated experience in governing the Fund and working with Federated on matters relating to the Federated funds, and was assisted in its deliberations by the advice of independent legal counsel. Throughout the year, the Board has requested and received substantial and detailed information about the Fund and the Federated organization that was in addition to the extensive materials that comprise and accompany the Senior Officer's evaluation. Federated provided much of this information at each regular meeting of the Board, and furnished additional reports in connection with the particular meeting at which the Board's formal review of the advisory contract occurred. Between regularly scheduled meetings, the Board also received information on particular matters as the need arose. Thus, the Board's consideration of the advisory contract included review of the Senior Officer's evaluation, accompanying data and additional reports covering such matters as: the Adviser's investment philosophy, revenue, profitability, personnel and processes; investment and operating strategies; the Fund's short- and long-term performance (in absolute terms, both on a gross basis and net of expenses, as well as in relationship to its particular investment program and certain competitor or "peer group" funds and/or other benchmarks, as appropriate), and comments on the reasons for performance; the Fund's investment objectives; the Fund's expenses (including the advisory fee itself and the overall expense structure of the Fund, both in absolute terms and relative to similar and/or competing funds, with due regard for contractual or voluntary expense limitations); the use and allocation of brokerage commissions derived from trading the Fund's portfolio securities (if any); and the nature, quality and extent of the advisory and other services provided to the Fund by the Adviser and its affiliates. The Board also considered the preferences and expectations of Fund shareholders and their relative sophistication; the continuing state of competition in the mutual fund industry and market practices; the range of comparable fees for similar funds in the mutual fund industry; the Fund's relationship to the Federated family of funds which include a comprehensive array of funds with different investment objectives, policies and strategies which are available for exchange without the incurrence of additional sales charges; compliance and audit reports concerning the Federated funds and the Federated companies that service them (including communications from regulatory agencies), as well as Federated's responses to any issues raised therein; and relevant developments in the mutual fund industry and how the Federated funds and/or Federated are responding to them. The Board's evaluation process is evolutionary. The criteria considered and the emphasis placed on relevant criteria change in recognition of changing circumstances in the mutual fund marketplace.

With respect to the Fund's performance and expenses in particular, the Board has found the use of comparisons to other mutual funds with comparable investment programs to be particularly useful, given the high degree of competition in the mutual fund business. The Board focused on comparisons with other similar mutual funds more heavily than non-mutual fund products or services because, simply put, they are more relevant. For example, other mutual funds are the products most like the Fund, they are readily available to Fund shareholders as alternative investment vehicles, and they are the type of investment vehicle in fact chosen and maintained by the Fund's investors. The range of their fees and expenses therefore appears to be a generally reliable indication of what consumers have found to be reasonable in the precise marketplace in which the Fund competes. The Fund's ability to deliver competitive performance when compared to its peer group was a useful indicator of how the Adviser is executing the Fund's investment program, which in turn assisted the Board in reaching a conclusion that the nature, extent, and quality of the Adviser's investment management services were such as to warrant continuation of the advisory contract. In this regard, the Senior Officer has reviewed Federated's fees for providing advisory services to products outside the Federated family of funds ( e.g. , institutional and separate accounts). He concluded that mutual funds and institutional accounts are inherently different products. Those differences included, but are not limited to targeting different investors, being subject to different laws and regulations, different legal structure, distribution costs, average account size and portfolio management techniques made necessary by different cash flows. The Senior Officer did not consider these fee schedules to be significant in determining the appropriateness of mutual fund advisory contracts.

The Senior Officer reviewed reports compiled by Federated, using data supplied by independent fund ranking organizations, regarding the performance of, and fees charged by, other mutual funds, noting his view that comparisons to fund peer groups are highly important in judging the reasonableness of proposed fees.

The Fund's performance fell below the median of the relevant peer group for both the one and three year periods ending December 31, 2006. The Board discussed the Fund's performance with the Adviser and recognized the efforts being undertaken by the Adviser. The Board will continue to monitor these efforts and the performance of the Fund.

The Board also received financial information about Federated, including reports on the compensation and benefits Federated derived from its relationships with the Federated funds. These reports covered not only the fees under the advisory contracts, but also fees received by Federated's subsidiaries for providing other services to the Federated funds under separate contracts (e.g., for serving as the Federated funds' administrator). The reports also discussed any indirect benefit Federated may derive from its receipt of research services from brokers who execute Federated fund trades. In addition, the Board considered the fact that, in order for a fund to be competitive in the marketplace, Federated and its affiliates frequently waived fees and/or reimbursed expenses and have disclosed to fund investors and/or indicated to the Board their intention to do so in the future, where appropriate.

Federated furnished reports, requested by the Senior Officer, that reported revenues on a fund by fund basis and made estimates of the allocation of expenses on a fund by fund basis, using allocation methodologies specified by the Senior Officer. The Senior Officer noted that, although they may apply consistent allocation processes, the inherent difficulties in allocating costs (and the unavoidable arbitrary aspects of that exercise) and the lack of consensus on how to allocate those costs may render such allocation reports unreliable. The allocation reports were considered in the analysis by the Board but were determined to be of limited use.

The Board and the Senior Officer also reviewed a report compiled by Federated comparing profitability information for Federated to other publicly held fund management companies. In this regard, the Senior Officer noted the limited availability of such information, but nonetheless concluded that Federated's profit margins did not appear to be excessive and the Board agreed.

The Senior Officer's evaluation also discussed the notion of possible realization of "economies of scale" as a fund grows larger. The Board considered in this regard that the Adviser has made significant additional investments in areas such as personnel and processes for the portfolio management, compliance, and risk management functions; distribution efforts; and systems technology; that support all of the Federated funds, and that the benefits of these efforts (as well as any economies, should they exist) were likely to be enjoyed by the fund complex as a whole. Finally, the Board also noted the absence of any applicable regulatory or industry guidelines on this subject, which (as discussed in independently prepared materials included in the Senior Officer's evaluation) is compounded by the lack of any common industry practice or general pattern with respect to structuring fund advisory fees with "breakpoints" that serve to reduce the fee as the fund attains a certain size. The Senior Officer did not recommend institution of breakpoints in pricing Federated's fund advisory services at this time.

For the Fund's most recently completed fiscal year, the Fund's investment advisory fee after waivers and expense reimbursements, if any, was above the median of the relevant peer group. The Board reviewed the fees and other expenses of the Fund with the Adviser and was satisfied that the overall expense structure of the Fund remained competitive. The Board will continue to monitor advisory fees and other expenses borne by the Fund.

The Senior Officer's evaluation noted his belief that the information and observations contained in his evaluation supported his finding that the proposed management fees are reasonable, and that Federated appeared to provide appropriate administrative services to the Fund for the fees paid. Under these circumstances, no changes were recommended to, and no objection was raised to the continuation of the Fund's advisory contract. For 2006, the Board concluded that the nature, quality and scope of services provided the Fund by the Adviser and its affiliates were satisfactory.

In its decision to continue an existing investment advisory contract, the Board was mindful of the potential disruptions of the Fund's operations and various risks, uncertainties and other effects that could occur as a result of a decision to terminate or not renew an advisory contract. In particular, the Board recognized that most shareholders have invested in the Fund on the strength of the Adviser's industry standing and reputation and in the expectation that the Adviser will have a continuing role in providing advisory services to the Fund. Thus, the Board's approval of the advisory contract reflected the fact that it is the shareholders who have effectively selected the Adviser by virtue of having invested in the Fund.

The Board based its decision to approve the advisory contract on the totality of the circumstances and relevant factors and with a view to past and future long-term considerations. Not all of the factors and considerations identified above were necessarily relevant to the Fund, nor did the Board consider any one of them to be determinative. With respect to the factors that were relevant, the Board's decision to approve the contract reflects its determination that Federated's performance and actions provided a satisfactory basis to support the decision to continue the existing arrangements.

Voting Proxies on Fund Portfolio Securities

A description of the policies and procedures that the Fund uses to determine how to vote proxies, if any, relating to securities held in the Fund's portfolio is available, without charge and upon request, by calling 1-800-341-7400. A report on "Form N-PX" of how the Fund voted any such proxies during the most recent 12-month period ended June 30 is available from Federated's website at FederatedInvestors.com. To access this information from the "Products" section of the website, click on the "Prospectuses and Regulatory Reports" link under "Related Information," then select the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Prospectuses and Regulatory Reports" link. Form N-PX filings are also available at the SEC's website at www.sec.gov.

Quarterly Portfolio Schedule

The Fund files with the SEC a complete schedule of its portfolio holdings, as of the close of the first and third quarters of its fiscal year, on "Form N-Q." These filings are available on the SEC's website at www.sec.gov and may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. (Call 1-800-SEC-0330 for information on the operation of the Public Reference Room.) You may also access this information from the "Products" section of Federated's website at FederatedInvestors.com by clicking on "Portfolio Holdings" under "Related Information," then selecting the appropriate link opposite the name of the Fund; or select the name of the Fund and from the Fund's page, click on the "Portfolio Holdings" link.

Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the U.S. government, the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the Fund's prospectus, which contains facts concerning its objective and policies, management fees, expenses, and other information.

Federated
World-Class Investment Manager

Federated American Leaders Fund, Inc.
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
Contact us at FederatedInvestors.com
or call 1-800-341-7400.

Federated Securities Corp., Distributor

Cusip 313914103
Cusip 313914202
Cusip 313914301
Cusip 313914400
Cusip 313914509

8042504 (5/08)

Federated is a registered mark of Federated Investors, Inc. 2008 (c)Federated Investors, Inc.

Item 2. Code of Ethics

(a) As of the end of the period covered by this report, the registrant has adopted a code of ethics (the "Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers") that applies to the registrant's Principal Executive Officer and Principal Financial Officer; the registrant's Principal Financial Officer also serves as the Principal Accounting Officer.

(d) Not Applicable

(e) Not Applicable

(f)(3) The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant at 1-800-341-7400, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

Item 3. Audit Committee Financial Expert

The registrant's Board has determined that each of the following members of the Board's Audit Committee is an “audit committee financial expert,” and is "independent," for purposes of this Item: Thomas G. Bigley, Nicholas P. Constantakis and Charles F. Mansfield, Jr.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2008 - $27,000

Fiscal year ended 2007 - $18,500

(b) Audit-Related Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2008 - $0

Fiscal year ended 2007 - $0

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

Fiscal year ended 2008 - $0

Fiscal year ended 2007 - $0

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $0 and $0 respectively.

(d) All Other Fees billed to the registrant for the two most recent fiscal years:

Fiscal year ended 2008 - $0

Fiscal year ended 2007 - $0

Amount requiring approval of the registrant’s audit committee pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, $8,431 and $0 respectively. Fiscal year ended 2008- Discussions related to accounting for swaps.

(e)(1) Audit Committee Policies regarding Pre-approval of Services.

The Audit Committee is required to pre-approve audit and non-audit services performed by the independent auditor in order to assure that the provision of such services do not impair the auditor’s independence. Unless a type of service to be provided by the independent auditor has received general pre-approval, it will require specific pre-approval by the Audit Committee. Any proposed services exceeding pre-approved cost levels will require specific pre-approval by the Audit Committee.

Certain services have the general pre-approval of the Audit Committee. The term of the general pre-approval is 12 months from the date of pre-approval, unless the Audit Committee specifically provides for a different period. The Audit Committee will annually review the services that may be provided by the independent auditor without obtaining specific pre-approval from the Audit Committee and may grant general pre-approval for such services. The Audit Committee will revise the list of general pre-approved services from time to time, based on subsequent determinations. The Audit Committee will not delegate its responsibilities to pre-approve services performed by the independent auditor to management.

The Audit Committee has delegated pre-approval authority to its Chairman. The Chairman will report any pre-approval decisions to the Audit Committee at its next scheduled meeting. The Committee will designate another member with such pre-approval authority when the Chairman is unavailable.

AUDIT SERVICES

The annual Audit services engagement terms and fees will be subject to the specific pre-approval of the Audit Committee. The Audit Committee must approve any changes in terms, conditions and fees resulting from changes in audit scope, registered investment company (RIC) structure or other matters.

In addition to the annual Audit services engagement specifically approved by the Audit Committee, the Audit Committee may grant general pre-approval for other Audit Services, which are those services that only the independent auditor reasonably can provide. The Audit Committee has pre-approved certain Audit services, all other Audit services must be specifically pre-approved by the Audit Committee.

AUDIT-RELATED SERVICES

Audit-related services are assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements or that are traditionally performed by the independent auditor. The Audit Committee believes that the provision of Audit-related services does not impair the independence of the auditor, and has pre-approved certain Audit-related services, all other Audit-related services must be specifically pre-approved by the Audit Committee.

TAX SERVICES

The Audit Committee believes that the independent auditor can provide Tax services to the Company such as tax compliance, tax planning and tax advice without impairing the auditor’s independence. However, the Audit Committee will not permit the retention of the independent auditor in connection with a transaction initially recommended by the independent auditor, the purpose of which may be tax avoidance and the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee has pre-approved certain Tax services, all Tax services involving large and complex transactions must be specifically pre-approved by the Audit Committee.

ALL OTHER SERVICES

With respect to the provision of services other than audit, review or attest services the pre-approval requirement is waived if:

(1)

The aggregate amount of all such services provided constitutes no more than five percent of the total amount of revenues paid by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant to its accountant during the fiscal year in which the services are provided;

(2)

Such services were not recognized by the registrant, the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant at the time of the engagement to be non-audit services; and

(3)

Such services are promptly brought to the attention of the Audit Committee of the issuer and approved prior to the completion of the audit by the Audit Committee or by one or more members of the Audit Committee who are members of the board of directors to whom authority to grant such approvals has been delegated by the Audit Committee.

The Audit Committee may grant general pre-approval to those permissible non-audit services classified as All Other services that it believes are routine and recurring services, and would not impair the independence of the auditor.

The SEC’s rules and relevant guidance should be consulted to determine the precise definitions of prohibited non-audit services and the applicability of exceptions to certain of the prohibitions.

PRE-APPROVAL FEE LEVELS

Pre-approval fee levels for all services to be provided by the independent auditor will be established annually by the Audit Committee. Any proposed services exceeding these levels will require specific pre-approval by the Audit Committee.

PROCEDURES

Requests or applications to provide services that require specific approval by the Audit Committee will be submitted to the Audit Committee by both the independent auditor and the Principal Accounting Officer and/or Internal Auditor, and must include a joint statement as to whether, in their view, the request or application is consistent with the SEC’s rules on auditor independence.

(e)(2) Percentage of services identified in items 4(b) through 4(d) that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

4(b)

Fiscal year ended 2008 – 0%

Fiscal year ended 2007 - 0%

Percentage of services provided to the registrants investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X, 0% and 0% respectively.

4(c)

Fiscal year ended 2008 – 0%

Fiscal year ended 2007 – 0%

4(d)

Fiscal year ended 2008 – 0%

Fiscal year ended 2007 – 0%

(f)

(g)	Non-Audit Fees billed to the registrant, the registrant’s investment adviser, and certain entities controlling, controlled by or under common control with the investment adviser:

Fiscal year ended 2008 - $135,821

Fiscal year ended 2007 - $172,934

(h) The registrant’s Audit Committee has considered that the provision of non-audit services that were rendered to the registrant’s adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5. Audit Committee of Listed Registrants

Not Applicable

Item 6. Schedule of Investments

Not Applicable

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not Applicable

Item 8.

Portfolio Managers of Closed-End Management Investment Companies

Not Applicable

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not Applicable

Item 10. Submission of Matters to a Vote of Security Holders

Not Applicable

Item 11. Controls and Procedures

(a) The registrant’s President and Treasurer have concluded that the

registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under the Act) are effective in design and operation and are sufficient to form the basis of the certifications required by Rule 30a-(2) under the Act, based on their evaluation of these disclosure controls and procedures within 90 days of the filing date of this report on Form N-CSR.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Registrant	Federated American Leaders Fund, Inc.

By	/S/ Richard A. Novak
	Richard A. Novak, Principal Financial Officer
Date	May 23, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By	/S/ J. Christopher Donahue
	J. Christopher Donahue, Principal Executive Officer
Date	May 21, 2008

By	/S/ Richard A. Novak
	Richard A. Novak, Principal Financial Officer
Date	May 23, 2008

Federated World-Class Investment Manager

Federated American Leaders Fund, Inc.

ANNUAL SHAREHOLDER REPORT

Class A SharesClass B SharesClass C SharesClass F SharesClass K Shares

Financial Highlights - Class A Shares

Financial Highlights - Class B Shares

Financial Highlights - Class C Shares

Financial Highlights - Class F Shares

Financial Highlights - Class K Shares

Shareholder Expense Example

ACTUAL EXPENSES

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

Management's Discussion of Fund Performance

FUND PERFORMANCE

MARKET CONDITIONS AND THEIR IMPACT UPON FUND PERFORMANCE

SECTOR SELECTION IMPACT UPON FUND PERFORMANCE

SECURITY SELECTION IMPACT UPON FUND PERFORMANCE

GROWTH OF A $10,000 INVESTMENT - CLASS A SHARES

GROWTH OF A $10,000 INVESTMENT - CLASS B SHARES

GROWTH OF A $10,000 INVESTMENT - CLASS C SHARES

GROWTH OF A $10,000 INVESTMENT - CLASS F SHARES

GROWTH OF A $10,000 INVESTMENT - CLASS K SHARES

Portfolio of Investments Summary Table

Portfolio of Investments

Statement of Assets and Liabilities

Statement of Assets and Liabilities-continued

Statement of Operations

Statement of Operations-continued

Statement of Changes in Net Assets

Notes to Financial Statements

1. ORGANIZATION

2. SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

Fair Valuation and Significant Events Procedures

Repurchase Agreements

Investment Income, Gains and Losses, Expenses and Distributions

Premium and Discount Amortization

Federal Taxes

Other Taxes

When-Issued and Delayed Delivery Transactions

Securities Lending

Use of Estimates

Other

3. CAPITAL STOCK

4. FEDERAL TAX INFORMATION

5. INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Administrative Fee

Distribution Services Fee

Sales Charges

Shareholder Services Fee

Expense Reduction

General

Transactions with Affiliated Companies

6. INVESTMENT TRANSACTIONS

7. LINE OF CREDIT

8. INTERFUND LENDING

9. REGULATORY SETTLEMENT PROCEEDS

10. LEGAL PROCEEDINGS

11. RECENT ACCOUNTING PRONOUNCEMENTS

12. FEDERAL TAX INFORMATION (UNAUDITED)

Report of Independent Registered Public Accounting Firm

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OFFEDERATED AMERICAN LEADERS FUND, INC.:

Board of Directors and Fund Officers

INTERESTED DIRECTORS BACKGROUND

INDEPENDENT DIRECTORS BACKGROUND

OFFICERS

Evaluation and Approval of Advisory Contract

FEDERATED AMERICAN LEADERS FUND, INC. (THE "FUND")

Voting Proxies on Fund Portfolio Securities

Quarterly Portfolio Schedule

Federated World-Class Investment Manager

Federated
World-Class Investment Manager

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

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF
FEDERATED AMERICAN LEADERS FUND, INC.:

Federated
World-Class Investment Manager