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					                                                                 Press Release
Federated Investors’ Mutual Funds Complete Acquisition of
$72.6 Million in Assets from Three Sentinel Funds
(Pittsburgh, Pa., October 30, 2006) -- Federated Investors, Inc. (NYSE: FII), one of the nation's
largest investment managers, and Sentinel Asset Management, Inc. announced the completion of
a strategic transaction, resulting in the reorganization of approximately $72.6 million in mutual
fund assets from three Sentinel mutual funds into three Federated funds.

“Federated’s history of completing these types of transactions, our municipal bond investment
expertise and our broad range of national and state-specific municipal bond products, provide an
ideal home for the municipal bond assets of Sentinel’s fund shareholders,” said J. Christopher
Donahue, president and CEO of Federated Investors, Inc.

Voting separately by fund, the Sentinel funds’ shareholders approved the transition of
approximately $37.9 million from the Sentinel Tax-Free Income Fund into Federated Municipal
Securities Fund, Inc. (LMSFX); $14.2 million from the Sentinel New York Tax-Free Income Fund
into Federated New York Municipal Income Fund (NYIFX); and $20.5 million from Sentinel
Pennsylvania Tax-Free Trust into Federated Pennsylvania Municipal Income Fund (PAMFX).

The Sentinel transaction represents Federated’s fourth acquisition of stock or bond assets this year. In
July, Federated completed the acquisition of Cambridge, Mass.-based MDTA LLC, a leading
quantitative equity manager.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing
$222.7 billion in assets as of Sept. 30, 2006. With 149 mutual funds and various separately managed
accounts options, Federated provides comprehensive investment management to more than 5,400
institutions and intermediaries including corporations, government entities, insurance companies,
foundations and endowments, banks and broker/dealers. For more information, visit

Sentinel Asset Management, Inc., a member of the National Life Group, is headquartered in
Montpelier, Vermont, with offices in New York City and San Francisco. The firm manages over $18
billion in assets as of Sept. 30, 2006, including those of the National Life Group and the Sentinel funds.

Meghan McAndrew                     Ray Hanley                          Brian Vachon
(412) 288-8103                      (412) 288-1920                      (802) 229-3882  
Federated Completes Acquisition
Oct. 30, 2006
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The Sentinel funds, established in 1934, now comprises 13 portfolios including equity, fixed-income,
balanced and money market strategies.

For more complete information about Federated funds, please visit for prospectuses. For
more complete information about the Sentinel funds, please visit You should consider
the fund’s investment objectives, risks, charges and expenses carefully before you invest. Information about these
and other important subjects is in the fund’s prospectus, which you should read carefully before investing.

Past performance is no guarantee of future results.
Mutual funds are subject to risks and fluctuate in value.
Separately Managed Accounts are available through Federated Investment Counseling, a registered
investment advisor.
Income from municipal funds may be subject to the federal alternative minimum tax and state and local
Federated Securities Corp. is the distributor of Federated funds.
Sentinel Financial Services Company is the distributor of Sentinel funds.

Certain statements in this press release, such as those related to successfully transitioning assets,
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 is the ability of Federated to successfully transition assets and the risk factors
discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange
Commission. Many of these factors may be impacted as a result of the ongoing threat of terrorism. 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.

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