Fannie Mae Announces Offering of New Issue 3-Year Benchmark Notes(R) due February 27, 2014

WASHINGTON, January 27, 2011 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                       3-Year
    Pricing Date       TBD
    Settlement Date    February 1, 2011
    Maturity Date      February 27, 2014
    Issue Size         TBD
    Coupon             TBD
    Payment Dates      Each February 27th and August 27th, beginning
                        February 27, 2011
    CUSIP              3135G0AP8
    Listing            Application will be made to list the securities on the
                        EuroMTF market of the Luxembourg Stock Exchange

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., and Goldman
Sachs & Co. are the joint lead managers. The co-managers include, Cabrera
Capital Markets LLC, FTN Financial Capital Markets, Jefferies & Company,
Inc., Loop Capital Markets, J.P. Morgan & Co., and RBC 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