Fannie Mae Announces Offering of New Issue 2-Year Benchmark Notes(R) Due April 4, 2012 and Auction (Reopening) of 5-Year Benchmark Notes(R) Due November 20, 2014

WASHINGTON, February 25, 2010 - The following is being issued by Fannie Mae (NYSE: FNM):

                       2-Year                     5-Year (Reopening)
    Pricing/Auction    February 26, 2010          February 25, 2010
     Date              (Expected)
    Settlement Date    March 2, 2010              March 1, 2010
    Maturity Date      April 4, 2012              November 20, 2014
    Issue Size/
     Reopen Size       TBD                        US$1 billion
    Current
     Outstanding       N/A                        US$5.5 billion
    Coupon             TBD                        2.625%
    Payment Dates      Each April 4th and         Each November 20th and
                       October 4th, beginning     May 20th, beginning
                       April 4, 2010              May 20, 2010
    CUSIP              31398AH54                  31398AZV7
    Listing            Application will be        Application will be
                       made to list the           made to list the
                       securities on the          securities  on the
                       EuroMTF market of the      EuroMTF market of the
                       Luxembourg Stock           Luxembourg Stock
                       Exchange                   Exchange
    Auction Time       N/A                        10:30 a.m. - 11:00 a.m. EST

For the new issue, 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 of Fannie Mae, +1-202-752-2110