Fannie Mae Announces Offering of New Issue 5-Year Benchmark Notes(R) due July 28, 2015 and Auction (Reopening) of 2-Year Benchmark Notes(R) due July 30, 2012

WASHINGTON, June 9, 2010 - The following is being issued by Fannie Mae (NYSE: FNM):

                            5-Year                2-Year (Reopening)
    Pricing/Auction Date    June 10, 2010         June 9, 2010
    Settlement Date         June 14, 2010         June 11, 2010
    Maturity Date           July 28, 2015         July 30, 2012
    Issue Size/ Reopen      US$3 billion          US$1 billion
     Size
    Current Outstanding     N/A                   US$5 billion
    Coupon                  TBD                   1.125%
    Payment Dates           Each July 28th and    Each July 30th and
                            January 28th,         January 30th,
                            beginning July        beginning July
                            28, 2010              30, 2010
    CUSIP                   31398AU34             31398AT77
    Listing                 Application will      Application will
                            be made to list the   be made to list the
                            securities on the     securities on the
                            EuroMTF market of     EuroMTF market of
                            the Luxembourg        the Luxembourg
                            Stock Exchange        Stock Exchange
    Auction Time            N/A                   10:30 a.m. - 11:00 a.m. EDT

For the new issue, Barclays Capital Inc., Deutsche Bank Securities Inc.,
and J.P. Morgan & Co. are the joint lead managers. The co-managers include,
Banc of America Securities, CastleOak Securities, L.P., Citigroup Global
Markets Inc., FTN Financial Capital Markets, Goldman Sachs & Co., 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