FEDERATED MUNICIPAL OPPORTUNITIES FUND, INC.

(formerly, Fortress Municipal Income Fund, Inc.)

Class A Shares

SUPPLEMENT TO PROSPECTUS DATED OCTOBER 31, 1996

         Effective August 1, 1997, the program allowing an exemption
         from the front-end sales charge for purchases of Class A
         Shares of the Fund with proceeds from redemptions of
         unaffiliated investment companies (the "NAV Exchange
         Program") will be discontinued. Please delete all references
         to the NAV Exchange Program where they appear in the Fund's
         prospectus. Of course, other exemptions from the sales charge
         may apply. See the section entitled "Reducing or Eliminating
         the Sales Charge."

                                                July 30, 1997

        FEDERATED INVESTORS

        Federated Securities Corp., Distributor

        Cusip 313910200
        G01615-05 (7/97)