Fannie Mae Redemption

WASHINGTON, December 17, 2010 - Fannie Mae (OTC Bulletin Board: FNMA) will redeem the principal amounts
indicated for the following securities issues on the redemption dates
indicated below at a redemption price equal to 100 percent of the principal
amount redeemed, plus accrued interest thereon to the date of redemption:

       Principal  Security  Interest  Maturity Date     CUSIP     Redemption
         Amount     Type      Rate                                   Date
       $50,000,000   MTN     1.250%   March 27, 2025  3136FMEX8  December 27,
                                                                     2010
       $25,000,000   MTN     0.750%    December 28,   3136FJXF3  December 28,
                                           2012                      2010
       $25,000,000   MTN     3.350%    December 28,   3136FJYH8  December 28,
                                           2015                      2010
       $40,000,000   MTN     2.050%   June 28, 2013   3136FJYJ4  December 28,
                                                                     2010
       $10,000,000   MTN     2.000%   September 28,   3136FJYX3  December 28,
                                           2015                      2010
       $50,000,000   MTN     1.125%    December 28,   3136FJZD6  December 28,
                                           2012                      2010
      $100,000,000   MTN     1.750%    December 28,   3136FJZT1  December 28,
                                           2012                      2010
      $125,000,000   MTN     2.000%   June 28, 2013   3136FJZZ7  December 28,
                                                                     2010
       $50,000,000   MTN     1.000%   June 28, 2013   3136FME91  December 28,
                                                                     2010
       $50,000,000   MTN     1.000%    December 28,   3136FMF41  December 28,
                                           2015                      2010
      $100,000,000   MTN     1.580%   June 28, 2013   3136FMH64  December 28,
                                                                     2010
      $150,000,000   MTN     1.625%    December 28,   3136FMHJ6  December 28,
                                           2012                      2010
      $150,000,000   MTN     1.375%   March 28, 2013  3136FMJ21  December 28,
                                                                     2010
      $100,000,000   MTN     1.800%    December 28,   3136FMMJ0  December 28,
                                           2012                      2010
       $50,000,000   MTN     1.650%    December 28,   3136FMSU9  December 28,
                                           2012                      2010
      $100,000,000   MTN     1.375%    December 28,   3136FMZN7  December 28,
                                           2012                      2010
    $1,000,000,000   MTN     1.750%    December 28,   31398AB76  December 28,
                                           2012                      2010
    $1,750,000,000   MTN     1.100%   June 28, 2012   31398AU83  December 28,
                                                                     2010
       $85,000,000   MTN     2.000%    December 29,   3136F92J1  December 29,
                                           2011                      2010
       $65,000,000   MTN     2.150%   June 29, 2012   3136F92M4  December 29,
                                                                     2010
       $50,000,000   MTN     3.000%   June 29, 2015   3136FJB67  December 29,
                                                                     2010
      $500,000,000   MTN     2.750%    December 29,   31398AB68  December 29,
                                           2014                      2010

Fannie Mae exists 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.

Resource Center, +1-800-732-6643, or Todd Davenport, +1-202-752-5115