Mutual funds are required by federal tax law to distribute, prior to December 31, virtually all the net capital gains realized through October 31. Mutual funds with a fiscal year ending November 30 may elect to distribute the net capital gains realized through the fiscal year end. The tax law imposes an excise tax on amounts not distributed by the mutual funds.

The following Federated funds anticipate paying a capital gain dividend in November or December:

Please Note: The capital gain information listed below is preliminary and subject to change.

The preliminary capital gain per share was determined based on net capital gains realized at October 31, 2009, and shares outstanding at October 31, 2009. The actual capital gain per share may be greater or lesser due to fund trading activity through October 31 (or November 30, if applicable), and also due to possible adjustments to the capital gains realized, some of which are required by tax law. Furthermore, the actual capital gain per share will be calculated based on the shares outstanding at each fund's record date, which will differ from the October 31, 2009, shares outstanding.

Final capital gains are reported on Form 1099-DIV which is mailed to you in late January. You need this information to calculate and report your capital gain distributions and other tax liabilities. If you have questions about this information, please contact your investment professional. You should also consult your investment and tax adviser regarding any action you may need to take.