Fannie Mae Prices New Issue 2-Year Benchmark Notes(R) due April 4, 2012

WASHINGTON, February 26, 2010 - The following is being issued by Fannie Mae (NYSE: FNM):

                        2-Year
                        ------
    Pricing Date        February 26, 2010
    Settlement Date     March 2, 2010
    Maturity Date       April 4, 2012
    Issue Size          US$4.0 billion
    Coupon              1.000%
    Price               99.959
    Yield               1.020%
    Payment Dates       Each April 4th and October 4th,
                        beginning April 4, 2010
    Spread              +20 basis points /0.875%  02/29/12 U.S.
                        Treasury
    CUSIP               31398AH54
    Listing             Application will be made to list the
                        securities on the EuroMTF market of the
                        Luxembourg Stock Exchange

Barclays Capital Inc., Citigroup Global Markets Inc., and Morgan Stanley
& Co. are the joint lead managers. The co-managers include Blaylock Robert
Van LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.,
FTN Financial Capital Markets, Jefferies & Company, Inc. and UBS Securities
LLC.

Fannie Mae is a shareholder-owned company with a public mission. We exist
to expand affordable housing and bring global capital to local communities in
order to serve the U.S. housing market. Fannie Mae has a federal charter and
operates in America's secondary mortgage market to enhance the liquidity of
the mortgage market by providing funds to mortgage bankers and other lenders
so that they may lend to home buyers. Our job is to help those who house
America.

This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities of Fannie Mae. Nothing in this
press release constitutes advice on the merits of buying or selling a
particular investment. Any investment decision as to any purchase of
securities referred to herein must be made solely on the basis of information
contained in Fannie Mae's applicable Offering Circular, and that no reliance
may be placed on the completeness or accuracy of the information contained in
this press release.

You should not deal in securities unless you understand their nature and
the extent of your exposure to risk. You should be satisfied that they are
suitable for you in the light of your circumstances and financial position.
If you are in any doubt you should consult an appropriately qualified
financial advisor.

Benchmark Notes is a registered mark of Fannie Mae. Unauthorized use of
this mark is prohibited.

Derek Lowe, Fannie Mae, +1-202-752-2110