IPO Company Profile
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Federated Investors, Inc.
Federated Investors Tower, Pittsburgh, PA 15222 * (412) 288-1900

The company is a leading provider of investment management product and related financial services. Federated sponsors, markets and provides investment advisory, distribution and administrative services primarily to mutual funds.

Primary Underwriting Group
ManagerTierPhone
Merrill Lynch & Co.Lead Manager (212) 449-4600
PaineWebber IncorporatedCo-manager (212) 713-2626
Salomon Smith BarneyCo-manager (212) 723-7300

Offering Information
NYSE:FII Financial: SIC 6722
Type of Shares:Class B Nonvoting Shares Filing Date:3/20/98
U.S. Shares:14,045,554 Offer Date:5/13/98
Non-U.S. Shares:3,511,446 Filing Range:$18.00 - $20.00
Primary Shares:2,609,774 Offer Price:$19.00
Secondary Shares:14,947,226 Gross Spread:$1.09
Offering Amount: $333,583,000 Selling:$0.66
Expenses: - Reallowance:$0.10
Post-IPO Shares:86,000,000
Employees:2037

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Kirkpatrick & Lockhart
Auditor: Ernst & Young

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/97 12/31/97
Revenue:$403.72Assets:$286.30
Net Income:$50.58Curr Assets:$76.11
EPS:$0.93Liabilities:$222.60
Prior EPS:$0.19Curr Liab:$64.05
Cash Flow/Oper:$12.70Equity:$63.70
Cash Flow/Fin:$14.33Cash:$22.91
Cash Flow/Inv:-$10.68Working Cap:$12.06

Competition
The investment management business is highly competitive and is undergoing consolidation. Many organizations are attempting to market to and service the same clients as the Company, not only with mutual fund investments and services but with a wide range of other financial products and services. The Company competes in the distribution of mutual funds with other independent fund management companies, national and regional broker/dealers, commercial banks, insurance companies, and other institutions. Many of these competitors have substantially greater resources and brand recognition than the Company. Competition is based on various factors, including business reputation; the investment performance of funds managed or administered by the Company; quality of service; the strength and continuity of management and selling relationships; marketing and distribution services offered; the range of products offered; and fees charged.

Business Plan
Federated's long range strategy has three objectives: (I) To be widely recognized as a world class investment management company that offers highly competitive performance and disciplined risk management while consistently adhering to its investment objectives across a broad spectrum of investment management products; (ii) To profitably expand Federated's market penetration by increasing its assets under management in each market where it chooses to apply its substantial distribution resources and (iii) To use its substantial expertise in mutual fund administration to provide superior customer services and to profitably expand its customer relationships.

Use of Proceeds
The proceeds from the proposed offering will be used for working capital and general corporate purposes.

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