November 1, 2006

Dear ______Representative:

As you may know in July 2006,  Federated  Investors,  Inc.  acquired MDTA LLC, a
leading  quantitative  equity management firm with which you have done business.
Related to the acquisition,  the MDT mutual fund  shareholders were sent a proxy
asking them to approve a series of proposals,  the primary result of which would
be a reorganization of MDT funds into new funds bearing the Federated MDT name.

We have contacted many of you via telephone,  but as the meeting of shareholders
draws near, we are  requesting  your  assistance.  It is our hope that you could
take a few moments  out of your busy day to call your  clients who invest in MDT
All Cap Core Fund,  MDT Tax  Aware/All Cap Core Fund and MDT Small Cap Core Fund
and encourage them to vote their shares.

The following points about Federated and the MDT funds might help you in your
discussions with your clients:

     o    Federated Investors, Inc. is one of the largest investment managers in
          the United States.

     o    Federated  manages more than $220 billion in equity,  fixed income and
          money market funds assets.

     o    There will be no changes to the  fundamentally  based,  quantitatively
          driven  manner that the MDT All Cap Core Fund,  MDT Tax  Aware/All Cap
          Core Fund and MDT Small Cap Core Fund will be  managed  as a result of
          the reorganization.

     o    Dr. David Goldsmith,  the portfolio  manager of the current MDT funds,
          will  continue  to  be  responsible   for  the  day-to-day   portfolio
          management of the new Federated MDT funds.

If you would like more information on the Federated MDT Funds, the proxy is
available at www.sec.gov/Archives/edgar/data/1363526/000131814806001361/
form.htm.

If you should  have  additional  questions,  please  feel free to  contact  your
Federated  wholesaler or  Federated's  internal sales group at (888) 400-7838 or
(888) 295-4828.

Thank  you in  advance  for your  assistance  and  Federated  looks  forward  to
continuing our relationship with you.


For more  complete  information,  visit  FederatedInvestors.com  or contact your
Federated wholesaler for prospectuses. You should consider the fund's investment
objectives, risks, charges, and expense carefully before you invest. Information
about these and other important subjects is in the fund's prospectus,  which you
should read carefully before investing.

Mutual funds are subject to market risk and fluctuate in value.

Small company stocks may be less liquid and subject to greater price  volatility
than large capitalization stocks.

Effective  on the close of  business on July 14,  2006,  MDT  Advisers  became a
subsidiary of Federated  Investors,  Inc. and Federated Securities Corp., became
the distributor of the MDT Funds.

Institutional Sales Material.  Not to be reproduced or shown to the public.

Federated is a  registered  mark of Federated  Investors,  Inc.  {copyright}2006
Federated Investors, Inc.





Federated MDT Series ("Federated") (ICA No. 811-21904) , filed  a proxy
statement/prospectus and other relevant documents concerning the planned
transitions with the United States Securities and Exchange Commission (the
"SEC").  INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER
DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE PLANNED TRANSITIONS, OR
INCORPORATED BY REFERENCE INTO THE PROXY STATEMENT/PROSPECTUS, BECAUSE THEY
CONTAIN IMPORTANT INFORMATION ABOUT THE TRANSITIONS, AND RELATED MATTERS.
Investors can obtain these documents free of charge at the SEC Web site
(www.sec.gov).  In addition, documents filed with the SEC by Federated are
available free of charge at 1-800-341-7400 or FEDERATEDINVESTORS.COM.