Fannie Mae Prices New Issue 2-Year Benchmark Notes(R) due January 12, 2012

WASHINGTON, December 3 - The following is being issued by Fannie Mae (NYSE: FNM):

                        2-Year

    Pricing Date        December 3, 2009

    Settlement Date     December 4, 2009

    Maturity Date       January 12, 2012

    Issue Size          US$3 billion

    Coupon              0.875%

    Price               99.790

    Yield               0.976%

    Payment Dates       Each January 12th and July 12th, beginning
                        January 12, 2010

    Spread              +25 basis points / 0.750%
                        11/30/11 U.S. Treasury

    CUSIP               31398AB43

    Listing             Application will be made to list the securities
                        on the EuroMTF market of the Luxembourg
                        Stock Exchange

Citigroup Global Markets Inc., J.P. Morgan Securities Inc., and Morgan
Stanley & Co. are the joint lead managers. The co-managers include Banc of
America Securities LLC, Credit Suisse Securities (USA) LLC, FTN Financial
Capital Markets, Jefferies & Company, Inc. and Loop Capital Markets.

Fannie Mae is a shareholder-owned company with a public mission. We exist
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.

Derek Lowe of Fannie Mae, +1-202-752-2110