November 2, 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  of record as of
Sept.  11,  2006 were sent a proxy  asking them to approve  two  proposals,  one
asking  shareholders to approve a new advisory  contract with Federated MDTA LLC
that is materially the same as their prior advisory  agreement with MDTA LLC and
the second asking  shareholders to approve a reorganization  of MDT All Cap Core
Fund into a new fund bearing the Federated MDT name.


We have  contacted  many of you via  telephone  and  thank  you for your  recent
assistance,  but as the meeting of  shareholders  draws near, we are  requesting
your additional 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 and
encourage them to vote their shares.

The  following  points about  Federated and the MDT All Cap Core Fund 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 will be  managed  as a
          result of the reorganization.
     o    Dr. David Goldsmith,  the portfolio manager of the current MDT All Cap
          Core Fund,  and his team,  will  continue  to be  responsible  for the
          day-to-day portfolio management of the new Federated MDT fund.

If you would like more information on the Federated MDT All Cap Core Fund and
other 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.

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.