Exhibit 99.1

Federated Investors, Inc. Reports Second Quarter 2010 Earnings

(PITTSBURGH, Pa., July 22, 2010) — Federated Investors, Inc. (NYSE: FII), one of the nation’s largest investment managers, today reported earnings per diluted share (EPS) of $0.46 for the quarter ended June 30, 2010 compared to $0.52 for the same quarter last year. Net income was $47.7 million for Q2 2010 compared to $53.3 million for Q2 2009. Federated’s Q2 2010 financial results include a recognition of insurance proceeds, which reduced operating expenses by $25.0 million, or $0.15 per diluted share, after tax. In addition, during Q2 2010, Federated recorded a non-cash impairment charge of $7.0 million, or $0.04 per diluted share after tax, related to intangible and fixed assets associated with a prior-year acquisition.

Federated reported YTD 2010 EPS of $0.85 compared to $0.86 for the same period in 2009. For the six months ended June 30, 2010, net income was $89.7 million compared to $88.4 million for the same period in 2009.

Federated’s total managed assets were $336.8 billion at June 30, 2010, down $65.0 billion or 16 percent from $401.8 billion at June 30, 2009 and down $13.1 billion or 4 percent from $349.9 billion reported at March 31, 2010. Average managed assets for Q2 2010 were $337.1 billion, down $77.3 billion or 19 percent from $414.4 billion reported for Q2 2009 and down $29.8 billion or 8 percent from $366.9 billion reported for Q1 2010. As the equity and fixed-income markets contracted in 2007 and 2008, Federated’s money market assets increased by $182 billion and as markets recovered in 2009 and 2010, Federated’s assets reflected industry trends as $95 billion flowed out of Federated’s money market products. Since the end of 2006, Federated’s money market managed assets have increased $86.9 billion to $260.5 billion at June 30, 2010.

“Federated benefited from the breadth of investment choices it offers investors and a mix of revenue sources during the second quarter,” said J. Christopher Donahue, president and chief executive officer. “Fixed income flows were solid while investor interest in Federated’s alternative equity mutual fund products highlighted the company’s ability to provide investment options for a variety of market conditions.”

Federated’s board of directors declared a quarterly dividend of $0.24 per share. The dividend is payable on Aug. 13, 2010 to shareholders of record as of Aug. 6, 2010. During Q2 2010, Federated purchased 178,600 shares of Federated class B common stock for $3.9 million.

Federated’s fixed-income assets were $38.0 billion at June 30, 2010, up $9.3 billion or 32 percent from $28.7 billion at June 30, 2009 and up $2.5 billion or 7 percent from $35.5 billion at March 31, 2010. Federated experienced continued positive flows into its bond funds during the quarter bringing total net YTD bond fund inflows to nearly $1.6 billion. Net sales were driven by strong flows into Federated Total Return Bond Fund, a multi-sector product and flows into several short-duration funds. In addition, fixed income separate account flows were strong at $1.8 billion.

Federated’s equity assets were $26.8 billion at June 30, 2010, up $0.6 billion or 2 percent from $26.2 billion at June 30, 2009 and down $3.3 billion or 11 percent from $30.1 billion at March 31, 2010. Net sales were led by Federated Prudent Bear Fund, Federated InterContinental Fund, Federated Strategic Value Dividend Fund, Federated Kaufmann Large Cap Fund and Federated Clover Small Value Fund.

Money market assets in both funds and separate accounts were $260.5 billion at June 30, 2010, down $85.9 billion or 25 percent from $346.4 billion at June 30, 2009 and down $11.8 billion or 4 percent from $272.3 billion at March 31, 2010. Money market mutual fund assets were $231.2 billion at June 30, 2010, down $81.6 billion or 26 percent from $312.8 billion at June 30, 2009 and down $9.0 billion or 4 percent from $240.2 billion at March 31, 2010.

Financial Summary

Q2 2010 vs. Q2 2009

For Q2 2010, revenue decreased by $75.4 million or 25 percent from the same quarter last year. The decrease in revenue primarily reflects a $41.3 million increase (to $58.3 million from $17.0 million for Q2 2009) in voluntary fee waivers related to certain money market funds in order to maintain positive or zero net yields. This increase in fee waivers was largely offset by a related decrease in distribution expenses of $33.9 million (to $45.3 million from $11.4 million) such that the net impact on operating income was a decrease of $7.4 million (to $13.0 million from $5.6 million.) In addition, revenue decreased due to lower average money market managed assets. These decreases were partially offset by the impact of increased average fixed-income and equity managed assets.

In Q2 2010, Federated derived 50 percent of its revenue from money market assets, 49 percent from fluctuating assets (31 percent from equity assets and 18 percent from fixed-income assets) and 1 percent from other products and services.

Operating expenses for Q2 2010 included the recognition of $25.0 million in insurance proceeds, which was recorded as a reduction to the operating expense line items originally charged, including professional service fees ($21.6 million); compensation and related ($1.5 million); office and occupancy ($1.4 million); and advertising and promotional ($0.5 million). Operating expenses for Q2 2010 also included an impairment charge of $7.0 million, $5.6 million of which was included in intangible asset impairment and amortization with the remainder in other operating expenses.

Operating expenses for Q2 2010 were $147.6 million compared to $218.8 million for Q2 2009. This decrease was primarily a result of lower distribution expenses due to the aforementioned fee-waiver-related reductions and lower average money market managed assets as well as the aforementioned insurance proceeds.

Nonoperating expenses increased $6.0 million for Q2 2010 compared to Q2 2009 primarily due to a $3.5 million increase in recourse-debt expense associated with the company’s recently amended and extended $425 million term loan.

Q2 2010 vs. Q1 2010

Compared to the prior quarter, revenue decreased by $1.5 million or 1 percent. Revenue decreased due to lower average money market and equity managed assets partially offset by an increase in average fixed-income managed assets. In addition, voluntary fee waivers on certain money market funds in order to maintain positive

or zero net yields were $11.2 million lower (to $58.3 million from $69.5 million) than Q1 2010. This decrease in fee waivers was largely offset by a related increase in distribution expenses of $6.4 million (to $45.3 million from $51.7 million) such that the net impact on operating income was an increase of $4.8 million (to $13.0 million from $17.8 million) compared to the prior quarter. Compared to Q1 2010, operating expenses decreased by $13.5 million or 8 percent, primarily due to the recognition of the aforementioned $25.0 million in insurance proceeds partially offset by the aforementioned $7.0 million asset impairment charge, both recorded in Q2 2010.

Nonoperating expenses increased $5.5 million for Q2 2010 compared to Q1 2010 primarily due to a $4.0 million increase in recourse debt expense associated with the company’s recently amended and extended $425 million term loan.

YTD 2010 vs. YTD 2009

Revenue for the first half of 2010 decreased by $153.1 million or 25 percent compared to the same period last year. The decrease in revenue primarily reflects a $101.2 million increase (to $127.8 million from $26.6 million for YTD 2009) in voluntary fee waivers on certain money market funds in order to maintain positive or zero net yields. This increase in fee waivers was largely offset by a related decrease in distribution expenses of $81.1 million (to $97.0 million from $15.9 million) such that the net impact on operating income was a decrease of $20.1 million (to $30.8 million from $10.7 million). In addition, revenue decreased due to lower average money market managed assets. These decreases were partially offset by the impact of increased average equity and fixed-income managed assets.

For YTD 2010, Federated derived 50 percent of its revenue from money market assets, 49 percent from fluctuating assets (32 percent from equity assets and 17 percent from fixed-income assets) and 1 percent from other products and services.

Operating expenses for YTD 2010 decreased by $160.6 million or 34 percent compared to the same period last year. The decrease primarily reflects a decrease in distribution expenses primarily related to the aforementioned fee waivers, lower average money market managed assets and the recognition of the aforementioned insurance proceeds. In addition, intangible asset impairment and amortization decreased $11.6 million for YTD 2010, which included the majority of the aforementioned non-cash impairment charge, compared to YTD 2009, which included $16.0 million in non-cash impairment charges.

Nonoperating expense increased $4.9 million for YTD 2010 compared to YTD 2009 primarily due to a $3.0 million increase in recourse debt expense associated with the company’s recently amended and extended $425 million term loan.

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 produce positive or zero net yields are expected to decrease over time, but could vary significantly based on market conditions. The amount of these waivers will be determined by a variety of factors including available yields on instruments held by the money market funds, changes in assets within money market funds, actions by the Federal Reserve and the U.S. Department of the Treasury, 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.

Federated will host an earnings conference call at 9 a.m. Eastern on Friday, July 23, 2010. 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 Us section of FederatedInvestors.com. A replay will be available after 12:30 p.m. and until July 30, 2010 by calling 877-660-6853 (domestic) or 201-612-7415 (international) and entering codes 286 and 353419.

Federated Investors, Inc. is one of the largest investment managers in the United States, managing $336.8 billion in assets as of June 30, 2010. With 135 funds and a variety of separately managed account options, Federated provides comprehensive investment management to approximately 5,200 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 7 percent of equity fund managers¹. For more information, visit FederatedInvestors.com.

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1 Strategic Insight, May 31, 2010. 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, 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

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Unaudited Condensed Consolidated Balance Sheets

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Changes in Equity and Fixed-Income Fund Managed Assets

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Changes in Equity and Fixed-Income Separate Account Assets and Liquidation Portfolios

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MANAGED ASSETS

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AVERAGE MANAGED ASSETS

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