Company Press Release

PITTSBURGH, Dec. 9 /PRNewswire-FirstCall/ -- Federated Investors, Inc. (NYSE: FII - News), one of the nation's largest investment managers, today announced that it completed the acquisition of certain assets of David W. Tice & Associates LLC that relate to the management of the $1.1 billion Prudent Bear Fund and the $363.8 million Prudent Global Income Fund. The announcement was made by J. Christopher Donahue, president and chief executive officer of Federated, and David W. Tice, founder of David W. Tice & Associates.

In connection with the transaction, the funds were reorganized and are now Federated Prudent Bear Fund and Federated Prudent Global Income Fund. Each fund will be available in A, C and IS shares.

Federated Prudent Bear Fund offers investors portfolio diversification through an inverse correlation to the U.S. stock market, reduced portfolio volatility through risk controls and a potential hedge against inflation through its strategic positions in precious metal and mining stocks. Federated Prudent Global Income Fund offers investors a portfolio that performs in the opposite direction of the U.S. dollar with a management team that is experienced in economic analysis and currency transactions. The fund does not use derivatives and does not take credit, duration or counter-party risk.

"The Federated Prudent Bear Fund and the Federated Prudent Global Income Fund offer clients strong historical performance, a unique investing approach and an experienced management team, all of which combine to provide Federated's clients with the solid alternative-investment choices that they seek," said Donahue.

Doug Noland joins Federated as senior vice president and senior portfolio manager and continues to be responsible for the day-to-day management of both funds. Noland has almost 19 years of short-side fund-management experience, including nearly 10 years of work on the Prudent funds.

David W. Tice, who founded the funds and was instrumental in building them into the well-recognized products that they are today, will join Federated as a chief portfolio strategist. In this role, he will articulate the team's bearish view, interpret how market and economic events could impact the funds and explain the philosophy of the Federated Prudent funds to a wide cross section of clients including banks, broker/dealers and institutional investors.

Joining Noland and Tice at Federated from the Prudent funds are five key investment professionals. Ryan Bend and Chad Hudson join Federated as portfolio managers. Lila Manassa joins Federated as a senior investment analyst; Robert Schulte-Albert joins as an investment analyst; and James Gemmel joins as an associate investment analyst.

The purchase price of the transaction included a $43.0 million initial payment and contingent payments of up to $99.5 million over the next four years.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $344 billion in assets as of Sept. 30, 2008. With 147 mutual funds and a variety of separately managed account options, Federated provides comprehensive investment management to nearly 5,400 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. For more information, visit http://FederatedInvestors.com.

Certain statements in this press release, such as those related to the management of the Prudent funds, constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Among other risks and uncertainties are the ability of the company to manage successfully the Prudent funds and the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness of such statements in the future.