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Federated Enhanced Treasury Income Fund Announces Estimated Sources of Distribution

    Federated Enhanced Treasury Income Fund Announces Estimated Sources of
                                 Distribution

PR Newswire

PITTSBURGH, Jan. 31, 2013

PITTSBURGH, Jan. 31, 2013 /PRNewswire/ --Federated Enhanced Treasury Income
Fund (NYSE: FTT) today paid a distribution per share of $0.072. The fund
employs a managed distribution plan to support a level distribution to
shareholders that may be comprised of income, capital gains and/or return of
capital. Under the plan, the fund makes monthly cash distributions
approximating 5.5% of the fund's net asset value (NAV) on an annualized basis
based on the fund's NAV from the previous month-end. The fund may make
distributions in excess of those required under the plan in order to meet its
obligations under the Internal Revenue Code. This press release is issued as
required by the fund's plan.

The distribution paid today is based on the fund's NAV of $15.82 on the last
business day of December 2012.

Shareholders should not draw any conclusions about the fund's investment
performance from the amount of this distribution or from the terms of the
fund's plan. The fund's estimated sources of the distribution paid in January
and for its current fiscal year are detailed below.

                                             Cumulative      Percentage of the
                Current         Percentage   Distributions   Cumulative
                                of Current   for the Fiscal  Distributions for
                Distribution    Distribution Year-to-Date^1  the Fiscal
                                                             Year-to-Date^1
Net Investment  $    0.0010 1%           $    0.0081 6%
Income
Net Realized
Short-Term      $    0.0473 66%          $    0.0472 32%
Capital Gains
Net Realized
Long-Term       $    0.0237 33%          $    0.0733 51%
Capital Gains
Return of
Capital or      $    0.0000 0%           $    0.0164 11%
Other Capital
Source
Total (per      $    0.0720 100%         $    0.1450 100%
common share)

^1 The fund's current fiscal year began on Dec. 1, 2012.

The fund estimates that it has distributed more than its income and net
realized capital gains; therefore, a portion of the distribution may be a
return of capital. A return of capital may occur, for example, when some or
all of the amount the shareholder has invested in the fund is paid back to the
shareholder. A return of capital distribution does not necessarily reflect
the fund's investment performance and should not be confused with "yield" or
"income." The amounts and sources of distributions reported are only estimates
and are not provided for tax reporting purposes. The actual amounts and
sources of the amounts for tax reporting purposes will depend upon the fund's
investment experience during the remainder of its fiscal year and may be
subject to changes based on tax regulations. The fund will send shareholders
a Form 1099 DIV for the calendar year that will tell shareholders how to
report these distributions for federal income tax purposes.

The table below includes information relating to the fund's performance based
on its NAV for certain periods.

Average annual total return at NAV for the period from inception       (0.38)%
through Dec. 31, 2012^1
Annualized current distribution rate as a percentage of NAV as of Dec. 5.46%
31, 2012
Cumulative total return at NAV for the fiscal year through Dec. 31,    (0.42)%
2012^2
Cumulative fiscal year-to-date distribution rate as a percentage of    0.92%
NAV as of Dec. 31, 2012

^1 Represents the simple arithmetic average of the annual NAV total returns of
the fund for the period from inception (1/29/2010) through Dec. 31, 2012,
including distributions paid and assuming reinvestment of those distributions.

^2 Represents the percentage change in the fund's NAV for the period from the
beginning of its fiscal year to Dec. 31, 2012, including distributions paid
and assuming reinvestment of those distributions.

Federated Investors, Inc. (NYSE: FII) is one of the largest investment
managers in the United States, managing $379.8 billion in assets as of Dec.
31, 2012. With 137 funds, as well as a variety of separately managed account
options, Federated provides comprehensive investment management worldwide to
approximately 4,700 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 level
of dividends or distributions constitute or may constitute forward-looking
statements, which involve known and unknown risks, uncertainties and other
factors that may cause the current dividends and distributions 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 market conditions, prevailing
interest rates, and investment performance, which could vary significantly.
Other risks and uncertainties also include the risk factors discussed in the
fund's registration statement, including the prospectus, as filed with the
Securities and Exchange Commission. As a result, no assurance can be given as
to future results, performance or achievements, and neither the fund nor any
other person assumes responsibility for the accuracy and completeness of such
statements in the future.

SOURCE Federated Investors, Inc.

Website: http://FederatedInvestors.com
Contact: MEDIA: Melissa Ryan, +1-412-288-8079 or Meghan McAndrew,
+1-412-288-8103
 
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