PITTSBURGH, Feb. 21, 2013 /PRNewswire/ -- Federated Enhanced Treasury Income Fund (NYSE: FTT) today announced that its Board of Trustees authorized the extension of the share repurchase program and approved a new managed distribution plan (MDP). The extension of the share repurchase program begins on March 1, 2013 and will run for another year. The program will allow the fund to buy back up to 5% of its outstanding common shares as of Dec. 31, 2012, or 459,352 shares, in the open market. The amount and timing of share purchases will be subject to market conditions and investment considerations. The fund completed its purchase of all of the 478,446 shares that were authorized to be purchased under the initial share repurchase program that began on March 1, 2012. Under the new MDP, the fund will make monthly cash distributions approximating 4.0% of the fund's net asset value (NAV) 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. The distribution will be based on the NAV of the fund on the last business day of the previous month. The new MDP will be implemented on March 1, 2013. The fund's distributions under the MDP may include net investment income, net realized long-term capital gains, net realized short-term capital gains and return of capital. If a distribution does not consist solely of net investment income, a notice with the estimated components of the distribution will be provided to shareholders at the time of payment and posted to the fund's website at FederatedInvestors.com. Investors should use the Form 1099-DIV sent after calendar year end, and not the notice, to prepare tax returns. Investors should not draw any conclusions about the fund's past or future investment performance from the amount of this distribution or from the terms of the fund's MDP.