Federated Enhanced Treasury Income Fund Announces Estimated Sources of Distribution

    Federated Enhanced Treasury Income Fund Announces Estimated Sources of
                                 Distribution

PR Newswire

PITTSBURGH, Pa., Feb. 28, 2013

PITTSBURGH, Pa., Feb. 28, 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. A new managed
distribution plan will be implemented on March 1, 2013. Under the new plan,
the fund will make monthly cash distributions approximating 4.0% of the fund's
net asset value on an annualized basis. 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 $15.71 on the last
business day of January 2013.

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
February and for its current fiscal year are detailed below.



                                                               Percentage of
                                               Cumulative
                                  Percentage   Distributions   the Cumulative
                     Current
                                  of Current   for the Fiscal  Distributions
                     Distribution Distribution
                                               Year-to-Date^1  for the Fiscal

                                                               Year-to-Date^1
Net Investment       $         5%           $    0.0115 5%
Income               0.0034
Net Realized         $   
Short-Term Capital   0.0360      50%          $    0.0831 38%
Gains
Net Realized         $   
Long-Term Capital    0.0326      45%          $    0.1224 57%
Gains
Return of Capital or $         0%           $    0.0000 0%
Other Capital Source 0.0000
Total (per common    $         100%         $    0.2170 100%
share)               0.0720

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

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       (0.45)%
through Jan. 31, 2013^1
Annualized current distribution rate as a percentage of NAV as of Jan. 5.50%
31, 2013
Cumulative total return at NAV for the fiscal year through Jan. 31,    (0.66)%
2013^2
Cumulative fiscal year-to-date distribution rate as a percentage of    1.38%
NAV as of Jan. 31, 2013

^1 Represents the simple arithmetic average of the annual NAV total returns of
the fund for the period from inception (1/29/2010)through Jan. 31, 2013,
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 Jan. 31, 2013, 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 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: Melissa Ryan, +1-412-288-8079, or Meghan McAndrew, +1-412-288-8103
 
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