Fannie Mae Prices New Issue 2-Year Benchmark Notes(R) due September 24, 2012

WASHINGTON, August 27, 2010 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                       2-Year
    Pricing Date       August 27, 2010
    Settlement Date    August 30, 2010
    Maturity Date      September 24, 2012
    Issue Size         US$5 billion
    Coupon             0.625%
    Price              99.846
    Yield              0.700%
    Payment Dates      Each September 24th and March 24th, beginning
                       September 24, 2010
    Spread             +18 basis points /0.375%  08/31/12 U.S. Treasury
    CUSIP              31398A3N0
    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, Citigroup Global Markets Inc.,
Jefferies & Co., Loop Capital Markets, Mischler Financial Group, Morgan
Stanley & Co., and Vining Sparks IBG, 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