Fannie Mae Prices New Issue 2-Year Benchmark Notes(R) due October 30, 2012

WASHINGTON, October 6, 2010 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                      2-Year
    Pricing Date      October 6, 2010
    Settlement Date   October 8, 2010
    Maturity Date     October 30, 2012
    Issue Size        US$8 billion
    Coupon            0.500%
    Price             99.965
    Yield             0.517%
    Payment Dates     Each October 30th and April 30th, beginning
                       October 30, 2010
    Spread            +13 basis points / 0.375%  09/30/12 U.S. Treasury
    CUSIP             31398A4T6
    Listing           Application will be made to list the securities on the
                       EuroMTF market of the Luxembourg Stock Exchange

Barclays Capital Inc., J.P. Morgan & Co. and UBS Securities LLC are the
joint lead managers. The co-managers include, Citigroup Global Markets Inc.,
Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., FTN
Financial Capital Markets, MFR Securities, Inc., and Williams Capital Group
L.P.

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