Fannie Mae Announces Offering of New Issue 2-Year Benchmark Notes(R) Due January 12, 2012 and Auction (Reopening) of 5-Year Benchmark Notes(R) Due November 20, 2014

WASHINGTON, December 2 - The following is being issued by Fannie Mae (NYSE: FNM):

                            2-Year                5-Year (Reopening)

    Pricing/Auction Date    December 3, 2009      December 2, 2009

    Settlement Date         December 4, 2009      December 4, 2009

    Maturity Date           January 12, 2012      November 20, 2014

    Issue Size/Reopen Size  TBD                   US$1 billion

    Current Outstanding     N/A                   US$3.5 billion

    Coupon                  TBD                   2.625%

    Payment Dates           Each January 12th     Each November 20th
                            and July 12th,        and May 20th
                            beginning January 12,
                            2010      

    CUSIP                   31398AB43             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     EuroMTF market of the
                            the Luxembourg        Luxembourg Stock Exchange
                            Stock Exchange 

    Auction Time            N/A                   10:30 a.m. - 11:00 a.m. EST

For the new issue, Citigroup Global Markets Inc., J.P. Morgan Securities
Inc., and Morgan Stanley & Co. are the joint lead managers. The co-managers
include Banc of America Securities LLC, Credit Suisse Securities (USA) LLC,
FTN Financial Capital Markets, Jefferies & Company, Inc. and Loop Capital
Markets.

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