Fannie Mae Prices New Issue 2-Year Benchmark Notes(R) due December 28, 2012

WASHINGTON, November 5, 2010 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                       2-Year
    Pricing Date       November 5, 2010
    Settlement Date    November 9, 2010
    Maturity Date      December 28, 2012
    Issue Size         US$7.5 billion
    Coupon             0.375%
    Price              99.837
    Yield              0.452%
    Payment Dates      Each December 28th and June 28th, beginning
                       December 28, 2010
    Spread             +10.5 basis points / 0.375%  10/31/12 U.S. Treasury
    CUSIP              31398A6F4
    Listing            Application will be made to list the securities on the
                       EuroMTF market of the Luxembourg Stock Exchange

Barclays Capital Inc., Deutsche Bank Securities Inc., and UBS Securities
LLC are the joint lead managers. The co-managers include, BNP Paribas
Securities Corp., Cabrera Capital Markets LLC, 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