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

WASHINGTON, May 11, 2011 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                      3-Year
    Pricing Date      TBD
    Settlement Date   May 16, 2011
    Maturity Date     June 27, 2014
    Issue Size        TBD
    Coupon            TBD
    Payment Dates     Each June 27th and December 27th, beginning
                      June 27, 2011
    CUSIP             3135G0BJ1
    Listing           Application will be made to list the securities on the
                      EuroMTF market of the Luxembourg Stock Exchange

Barclays Capital Inc., Goldman Sachs & Co., and J.P. Morgan & Co. are the
joint lead managers. The co-managers include, BNP Paribas Securities Corp.,
CastleOak Securities, L.P., 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 of Fannie Mae, +1-202-752-5403