Fannie Mae Announces Offering of New Issue 2-Year Benchmark Notes(R)

WASHINGTON -

The following is being issued by Fannie Mae (NYSE: FNM):

2-Year —— Pricing Date October 8, 2009 ———— ————— Settlement Date October 9, 2009 ————— ————— Maturity Date November 23, 2011 ————- —————– Issue Size TBD ———- — Coupon TBD —— — Payment Dates Each November 23rd and May 23rd, beginning November 23, 2009 ————- ——————————– CUSIP 31398AZN5 —– ——— Listing Application will be made to list the securities on the EuroMTF market of the Luxembourg Stock Exchange ——- —————————————

Banc of America Securities, Citigroup Global Markets Inc., and J.P. Morgan & Co. are the joint lead managers. The co-managers include Barclays Capital Inc., FTN Financial Capital Markets, Goldman Sachs & Co., Mischler Financial Group, and S.A. Ramirez & Co., Inc.

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.

Source: Fannie Mae

Latressa Cox of Fannie Mae, +1-202-752-6707