Fannie Mae Prices New Issue 3-Year Benchmark Notes(R) due December 18, 2013

WASHINGTON, October 28, 2010 - The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

                         3-Year
    Pricing Date         October 28, 2010
    Settlement Date      November 1, 2010
    Maturity Date        December 18, 2013
    Issue Size           US$8 billion
    Coupon               0.750%
    Price                99.957
    Yield                0.764%
    Payment Dates        Each December 18th and June 18th, beginning
                         December 18, 2010
    Spread               +19.5 basis points /0.500%  10/15/13 U.S.
                         Treasury
    CUSIP                31398A5W8
    -----                ---------
    Listing              Application will be made to list the
                         securities on the EuroMTF market of the
                         Luxembourg Stock Exchange
    -------              ---------------------------------------

Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., and J.P. Morgan
& Co. are the joint lead managers. The co-managers include Blaylock Robert
Van LLC, Deutsche Bank Securities Inc., FTN Financial Capital Markets,
Jefferies & Company, Inc., M.R. Beal & Company, 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, Fannie Mae, +1-202-752-5403