Fannie Mae Announces Offering of New Issue 3-Year Benchmark Notes(R) Due December 18, 2013 and Auction (Reopening) of 5-Year Benchmark Notes(R) Due October 26, 2015

WASHINGTON, October 27, 2010 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                               3-Year                5-Year (Reopening)
    Pricing/Auction Date       October 28, 2010      October 28, 2010
    Settlement Date            November 1, 2010      November 1, 2010
    Maturity Date              December 18, 2013     October 26, 2015
    Issue Size/Reopen Size     TBD                   US$1 billion
    Current Outstanding        N/A                   US$5.5 billion
    Coupon                     TBD                   1.625%
    Payment Dates              Each December 18th    Each April 26th and
                               and June 18th,        October 26th,
                               beginning             beginning
                               December 18, 2010     April 26, 2011
    CUSIP                      31398A5W8             31398A4M1
    Listing                    Application will      Application will
                               be made to list       be made to list
                               the securities on     the securities on
                               the EuroMTF           the EuroMTF
                               market of the         market of the
                               Luxembourg            Luxembourg
                               Stock Exchange        Stock Exchange
    Auction Time               N/A                   October 28, 2010
                                                     10:30 a.m. -
                                                     11:00 a.m. EDT

For the new issue, Credit Suisse Securities (USA) LLC, Goldman Sachs &
Co., and J.P. Morgan & Co. are the joint lead managers. The co-managers
include Blaylock Robert Van LLC, Deutsche Bank Securities Inc., FTN Financial
Capital Markets, Jefferies & Company, Inc., M.R. Beal & Company, and UBS
Securities LLC.

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 of Fannie Mae, +1-202-752-5403