News Release Federated Enhanced Treasury Income Fund Announces Estimated Sources of Distribution

(PITTSBURGH , Pa., Ju ly 31, 2015) -- Fed er ated En h an ced Tr easu r y In com e Fu n d (N YSE: FTT) tod ay p aid a
d istr ibu tion p er sh ar e of $0.029. Th e fu n d em p loys a m an aged d istr ibu tion p lan to su p p or t a lev el d istr ibu tion to sh ar eh old er s th at m ay be com p osed of in com e, cap ital gain s an d / or r etu r n of cap ital. Un d er th e p lan , th e fu n d
m akes m on th ly cash d istr ib u tion s ap p r oxim atin g 2.5 p er cen t of th e fu n d 's n et asset v alu e (N AV) on an an n u alized basis based on th e fu n d 's N AV fr om th e p r ev iou s m on th -en d . Th e fu n d m ay m ak e d istr ibu tion s in excess of th ose r equ ir ed u n d er th e p lan in or d er to m eet its oblig ation s u n d er th e In ter n al Rev en u e Cod e . Th is p r ess r elease is
issu ed as r equ ir ed b y th e fu n d 's p lan .
Th e d istr ib u tion p aid tod ay is based on th e fu n d 's N A V of $13.92 on th e last bu sin ess d ay of Ju n e 2015.
Sh ar eh old er s sh ou ld n ot d r aw an y con clu sion s ab ou t th e fu n d 's in v estm en t p er for m an ce f r om th e am ou n t of th is
d istr ibu tion or fr om t h e ter m s of th e fu n d 's p lan . Th e fu n d 's estim ated sou r ces of th e d istr ibu tion p aid in Ju ly an d for its cu r r en t fiscal year ar e d etailed below .

Current D istribution Percentag e of Current D istribution Cumulative Distributions for the Fiscal Year-to-D ate1 Percentag e o f the Cumulative Distributions for the Fiscal Year-to-D ate1

N et In v estm en t In com e $ 0.0109 38% $ 0.0540 20% N et Realized Sh or t -Ter m Cap ital Gain s $ 0.0153 53% $ 0.0250 10% N et Realized Lon g -Ter m Cap ital Gain s $ 0.0028 9% $ 0.1890 70%
Retu r n of Cap ital or Oth er Cap ital
Sou r ce $ 0.0000 0% $ 0.0000 0%

Total (p er com m on sh ar e) $ 0.0290 100% $ 0.2680 100%

1 The fund's current fiscal year began on Dec. 1, 2014.

Th e am ou n ts an d sou r ces of d istr ibu tion s r ep or ted ar e o n ly estim ates an d ar e n ot p r ov id ed for tax r ep or tin g
p u r p oses. Th e actu al am ou n ts an d sou r ces of th e am ou n ts for tax r ep or tin g p u r p oses w ill d ep en d u p on th e fu n d 's
in v estm en t exp er ien ce d u r in g th e r em ain d er of its fiscal year an d m ay be su b ject to ch an ges based on tax
r egu lation s. Th e fu n d w ill sen d sh ar eh old er s a For m 1099 DIV for th e calen d ar year th at w ill tell sh ar eh old er s h ow to r ep or t th ese d istr ib u tion s for fed er al in com e tax p u r p oses.

MEDIA: MEDIA:

Ed Costello 412-288-7538 Meghan McAndrew 412-288-8103

FTT Announces Sources of Distribution Page 2 of 2


Th e tab le below in clu d es in for m ation r elatin g to th e fu n d 's p er for m an ce based on its N AV for cer tain p er iod s.

Av er age an n u al total r etu r n at N AV for th e fiv e year p er iod en d ed on Ju n e 30, 20151

(0.86)%

An n u alized cu r r en t d istr ib u tion r ate a s a p er cen tage of N AV as of Ju n e 30, 2015

2.50%

Cu m u lativ e total r et u r n at N AV for th e fiscal year th r ou g h Ju n e 30, 20152

(0.86)%

Cu m u lativ e fisca l year -to-d ate d istr ibu tion r ate as a p er cen tage of N AV as of Ju n e 30, 2015

1.93%

1 Represents the sim ple arithmetic average of the annual N A V total returns of the fund for the last five years, including distributions paid and assuming reinvestment of those distributions.

2 Represents the percentage change in the fund's N A V for the period from the beginning of its fiscal year to June 30, 2015 including

distributions paid and assuming reinvestment of those distributions.

Fed er ated In v estor s, In c. (N YSE: FII) is on e of th e lar g est in v estm en t m an ager s in th e Un ited States, m an agin g
$349.7 billion in assets as of Ju n e 30, 2015. With 130 fu n d s, as w ell as a v ar iety of sep ar ately m an aged accou n t
op tion s, Fed er ated p r ov id es com p r eh en siv e in v estm en t m an agem en t w or ld w id e to m or e th an 7,900 in stitu tion s an d in ter m ed iar ies in clu d in g cor p or ation s, g ov er n m en t en tities, in su r an ce com p an ies, fou n d ation s an d
en d ow m en ts, ban ks an d br oker / d eale r s. For m or e in for m ation , v isit Fed e rated In v es to rs .co m.
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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.

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