Fannie Mae Announces Offering of New Issue 2-Year Benchmark Notes(R) due December 28, 2012

WASHINGTON, November 4, 2010 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                            2-Year
    Pricing Date            November 5, 2010
    Settlement Date         November 9, 2010
    Maturity Date           December 28, 2012
    Issue Size              TBD
    Coupon                  TBD
    Payment Dates           Each December 28th and June 28th, beginning
                            December 28, 2010
    CUSIP                   31398A6F4
    Listing                 Application will be made to list the securities
                            on the EuroMTF market of the Luxembourg Stock
                            Exchange

Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities
LLC are the joint lead managers. The co-managers include, BNP Paribas
Securities Corp., Cabrera Capital Markets LLC, Citigroup Global Markets Inc.,
Credit Suisse Securities (USA) LLC, FTN Financial Capital Markets, and Loop
Capital Markets.

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.

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

Katherine Constantinou, Fannie Mae, +1-202-752-5403