FEDERATED MUNICIPAL OPPORTUNITIES FUND, INC.
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Supplement  to the  Prospectus  and Statement of  Additional  Information  dated
October 31, 2003.


In order  to more  accurately  reflect  the  investment  strategy  of  Federated
Municipal  Opportunities  Fund,  Inc. (the "Fund"),  which invests a significant
portion of its  portfolio in high yield  tax-exempt  municipal  securities,  the
Board of  Directors  has  voted  to  change  the  name of the Fund to  Federated
Municipal High Yield Advantage Fund, Inc. The change will be effective August 1,
2004. This name change does not reflect a change in the investment strategies of
the Fund.

Accordingly,  please delete all references to Federated Municipal  Opportunities
Fund, Inc. in the current Prospectus and Statement of Additional Information and
replace it with Federated Municipal High Yield Advantage Fund, Inc.



                                                                   June 1 , 2004



Cusip 313910 20 0
Cusip 313910 30 9
Cusip 313910 40 8
Cusip 313910 10 1

30661 (6/04)