STATE BOND GROUP OF MUTUAL FUNDS Dear Shareholder: You recently received a proxy solicitation for the proposed transfer of the net assets of your State Bond Fund into a corresponding mutual fund in the Federated Investors Family of Funds. According to our records we have not yet received your vote. We would appreciate your completing your proxy card and returning it in the enclosed postage paid envelope as soon as possible. The shareholder meeting is scheduled for December 9, 1996. Please note that the Board of Directors of your State Bond Fund unanimously recommends that shareholders vote FOR the proposed reorganization. If you have any questions, please call us at 1-800-328-4735, ext. #4. Sincerely, /s/ Dale C. Bauman DALE C. BAUMAN President State Bond Group of Funds 100 North Minnesota Street New Ulm, Minnesota 56073 FEDERATED MUNICIPAL OPPORTUNITIES FUND, INC. Federated Investors Federated Investors Tower Pittsburgh, Pennsylvania 15222-3779 (412) 288-1900 November 21, 1996 EDGAR Operations Branch Securities and Exchange Commission Division of Investment Management 450 Fifth Street, N.W. Washington, DC 20549 RE: Federated Municipal Opportunities Fund, Inc. (the ``Fund'') 1933 Act File No. 333-13527 1940 Act File No. 811-4533 Dear Sir or Madam: Pursuant to Regulation 14a-6 of the Securities Exchange Act of 1934, enclosed for filing electronically are additional proxy solicitation materials for the above-referenced Fund. The enclosed information is expected to be mailed to certain shareholders of State Bond Tax Exempt Fund, a portfolio of State Bond Municipal Funds, Inc., on or about November 21, 1996 in connection with the Special Meeting of Shareholders to be held on December 9, 1996. The material is intended to supplement the definitive Prospectus/Proxy, Statement of Additional Information, and form of proxy of the Fund, dated October 31, 1996, as filed with the Commission on November 4, 1996. Any questions or comments with respect to this filing may be directed to the undersigned at (412) 288-4827. Very truly yours, /s/ Jody L. Petras Jody L. Petras Senior Compliance Analyst cc: Byron F. Bowman Kevin L. Howard Matthew G. Maloney Enclosures