Federated Investment Management Company Announces Shareholder Approval of Reorganization of Federated Enhanced Treasury Income Fund into Open-End Fund

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Federated Investment Management Company, the investment adviser to Federated Enhanced Treasury Income Fund
FTT
, announced that the fund's shareholders today approved the fund's reorganization into a newly created open-end mutual fund (FETIX). The reorganization, approved at the fund's annual meeting of fund shareholders, is currently scheduled for Friday, Oct. 23, 2015, subject to satisfaction of certain closing conditions, and will result in FTT shareholders becoming shareholders of FETIX. To facilitate the transition from a closed-end fund to an open-end fund, earlier that week, after the close on Oct. 20, 2015, fund common shares will cease trading on the New York Stock Exchange. After that time, holders of FTT common shares will not be able to sell their shares on the stock exchange and their investment will be temporarily illiquid. However, assuming the reorganization takes place on Oct. 23, 2015, effective Monday, Oct. 26, 2015, the first business day following the reorganization, FETIX shareholders may redeem their shares at net asset value, subject to a 1 percent redemption fee for the first six months after the date of the reorganization (or until April 23, 2016). The new fund, FETIX, invests primarily in U.S. Treasury securities and U.S. Government Agency securities, combined with call-option and duration management strategies, to provide income and total return. The reorganization provides liquidity for shareholders while also enabling them to continue investing in a strategy that is substantially similar to FTT's investment strategy. The Board of Trustees of FETIX is able to approve liquidating the new open-end mutual fund without shareholder approval if the Board of Trustees determines that it would be in the best interests of shareholders to do so. The foregoing does not constitute an offering of any securities for sale. The combined prospectus/proxy statement relating to the reorganization contains important information about the reorganization and free copies may be obtained by calling the fund at 1-800-341-7400 or at the SEC's website, www.sec.gov. A registration statement relating to FETIX has been filed with the Securities and Exchange Commission, but FETIX has not yet commenced a continuous offering of its shares. Following the closing of the reorganization, FETIX intends to commence a continuous offering of its shares. Other than in the reorganization, shares of FETIX may not be sold nor may offers to buy be accepted prior to that time. Federated Investors, Inc.
FII
is one of the largest investment managers in the United States, managing $349.7 billion in assets as of June 30, 2015. With 130 funds and a variety of separately managed account options, Federated provides comprehensive investment management to more than 7,900 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit FederatedInvestors.com. Certain statements made in this press release, such as those related to the conversion of the fund and enhanced liquidity and shareholder value, are forward-looking statements. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to: market developments; legal and regulatory developments; and other additional risks and uncertainties. As a result, none of the investment adviser, the fund or any other person assumes responsibility for the accuracy and completeness of such statements in the future.
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