Exhibit 99.1

Federated Investors, Inc. Reports Second Quarter 2011 Earnings

(PITTSBURGH, Pa., July 28, 2011) — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment managers, today reported earnings per diluted share (EPS) of $0.41 for the quarter ended June 30, 2011 compared to $0.46 for the same quarter last year. Net income was $42.4 million for Q2 2011 compared to $47.7 million for Q2 2010.

Federated reported YTD 2011 EPS of $0.73 compared to $0.85 for the same period in 2010. For the six months ended June 30, 2011, net income was $75.6 million compared to $89.7 million for the same period last year.

Federated’s total managed assets were $349.4 billion at June 30, 2011, up $12.6 billion or 4 percent from $336.8 billion at June 30, 2010 and down $5.5 billion or 2 percent from $354.9 billion reported at March 31, 2011. Average managed assets for Q2 2011 were $354.2 billion, up $17.1 billion or 5 percent from $337.1 billion reported for Q2 2010 and down $2.1 billion or 1 percent from $356.3 billion reported for Q1 2011.

“During the second quarter, Federated’s clients continued to seek income-producing strategies—from our dividend-oriented equity portfolios to high-yield and other bond strategies,” said J. Christopher Donahue, president and chief executive officer.

Federated’s board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on Aug. 15, 2011 to shareholders of record as of Aug. 8, 2011. During Q2 2011, Federated purchased 338,512 shares of Federated class B common stock for $7.4 million.

Federated’s fixed-income assets were $42.4 billion at June 30, 2011, up $4.4 billion or 12 percent from $38.0 billion at June 30, 2010 and up $0.6 billion or 1 percent from $41.8 billion at March 31, 2011. Sales were driven by strong net flows into Federated Total Return Government Bond Fund, Federated’s Capital Preservation Fund, Federated Institutional High Yield Bond Fund, Federated PrudentDollar Bear Fund and two newer offerings, Federated Floating Rate Strategic Income Fund and Federated Unconstrained Bond Fund.

Federated’s equity assets were $31.4 billion at June 30, 2011, up $4.6 billion or 17 percent from $26.8 billion at June 30, 2010 and down $0.2 billion or 1 percent from $31.6 billion at March 31, 2011. Top selling equity funds on a net basis were Federated Strategic Value Dividend Fund, Federated Prudent Bear Fund, Federated International Leaders Fund, Federated InterContinental Fund and Federated Kaufmann Large Cap Fund.

Money market assets in both funds and separate accounts were $265.7 billion at June 30, 2011, up $5.2 billion or 2 percent from $260.5 billion at June 30, 2010 and down $5.4 billion or 2 percent from $271.1 billion at March 31, 2011. Money market mutual fund assets were $236.1 billion at June 30, 2011, up $4.9 billion or 2 percent from $231.2 billion at June 30, 2010 and down $2.9 billion or 1 percent from $239.0 billion at March 31, 2011.

Financial Summary

Q2 2011 vs. Q2 2010

For Q2 2011, revenue decreased by $5.7 million or 2 percent from the same quarter last year. The decrease in revenue primarily reflected an increase in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields during Q2 2011 compared to Q2 2010. This decrease was partially offset by an increase in revenue from higher average money market, equity and fixed-income assets. See additional information about voluntary fee waivers in the table at the end of this financial summary.

In Q2 2011, Federated derived 54 percent of its revenue from equity and fixed income assets (34 percent from equity assets and 20 percent from fixed-income assets), 45 percent from money market assets and 1 percent from other products and services.

Operating expenses for Q2 2011 were $153.7 million compared to $147.6 million for Q2 2010. This increase of $6.1 million was primarily a result of higher professional service fees as a result of Federated’s recognition of insurance proceeds in Q2 2010, which reduced operating expenses by $25 million. This increase was partially offset by decreases in intangible asset related expense primarily as a result of a Q2 2010 non-cash impairment charge related to a prior-year acquisition and in distribution expense related primarily to increased fee waivers as mentioned above.

Q2 2011 vs. Q1 2011

Compared to the prior quarter, revenue decreased by $13.1 million or 5 percent. The decrease in revenue primarily related to the aforementioned increase in fee waivers and lower average money market assets. This decrease was partially offset by an increase in revenue related primarily to an additional day in Q2 2011 compared to Q1 2011 and to higher average fixed-income and equity assets.

Operating expenses for Q2 2011 decreased by $28.7 million compared to Q1 2011 primarily as a result of lower professional service fees related to Q1 2011 nonrecurring legal expenses and lower distribution expense related primarily to the aforementioned increase in fee waivers.

YTD 2011 vs. YTD 2010

Revenue for the first half of 2011 increased slightly compared to the same period last year. The increase in revenue primarily related to higher average fixed-income and equity assets. This increase was largely offset by the aforementioned increase in fee waivers.

For the first half of 2011, Federated derived 52 percent of its revenue from equity and fixed income assets (33 percent from equity assets and 19 percent from fixed-income assets), 47 percent from money market assets, and 1 percent from other products and services.

Operating expenses for YTD 2011 increased by $27.3 million or 9 percent compared to the same period last year. The increase primarily reflects an increase in professional service fees for YTD 2011 related to the recognition of insurance proceeds in Q2 2010 and nonrecurring legal expenses incurred in Q1 2011. In addition, intangible asset related expense decreased primarily due to the aforementioned impairment of certain intangible assets in Q2 2010.

Federated’s level of business activity and financial results are dependent upon many factors including market conditions, investment performance and investor behavior. These factors and others including asset levels, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers and expenses can impact Federated’s activity levels and financial results significantly. Risk factors and uncertainties that can influence Federated’s financial results are discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange Commission.

Fee waivers to maintain positive or zero net yields could vary significantly based on market conditions. The amount of these waivers will be determined by a variety of factors including, but not limited to, available yields on instruments held by the money market funds, changes in assets within money market funds, actions by the Federal Reserve, the U.S. Department of the Treasury and other governmental entities, changes in the mix of money market customer assets, changes in expenses of the money market funds and Federated’s willingness to continue these waivers.

Money Market Fund Yield Waiver Impact

(in millions)

Federated will host an earnings conference call at 9 a.m. Eastern on Friday, July 29, 2011. Investors are invited to listen to Federated’s earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time. The call may also be accessed in real time on the Internet via the About Federated section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and through Aug. 5, 2011 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 375160.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $349.4 billion in assets as of June 30, 2011. With 134 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 4,900 institutions and intermediaries including corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Federated ranks in the top 2 percent of money market fund managers in the industry, the top 7 percent of fixed-income fund managers and the top 8 percent of equity fund managers¹. For more information, visit FederatedInvestors.com.

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1 Strategic Insight, May 31, 2011. Based on assets under management in open-end funds.

Federated Securities Corp. is distributor of the Federated funds.

Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling and Federated MDTA LLC, each a registered investment advisor.

Certain statements in this press release, such as those related to the level of fee waivers incurred by the company, and product demand and asset flows constitute or may 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. Other risks and uncertainties include the ability of the company to predict the level of fee waivers in future quarters, which could vary significantly depending on a variety of factors identified above, and include the ability of the company to sustain product demand and asset flows, which could vary significantly depending on market conditions, investment performance and investor behavior. Other risks and uncertainties also include 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.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Changes in Equity and Fixed-Income Fund and Separate Account Assets

(in millions)

Changes in Liquidation Portfolios

(in millions)