Fannie Mae Redemption

WASHINGTON, November 2, 2010 - Fannie Mae (OTC Bulletin Board: FNMA) will redeem the principal amounts
indicated for the following securities issues on the redemption dates
indicated below at a redemption price equal to 100 percent of the principal
amount redeemed, plus accrued interest thereon to the date of redemption:

    (All amounts in US dollars unless otherwise stated)

      Principal  Security Interest
       Amount      Type     Rate   Maturity Date    CUSIP    Redemption Date
     $30,000,000   MTN     5.000%   November 12,  3136FJND9 November 12, 2010
                                      2024
     $50,000,000   MTN     1.500%   November 12,  3136FJNU1 November 12, 2010
                                      2014
     $50,000,000   MTN     4.625%   November 12,  3136FJPN5 November 12, 2010
                                      2019
     $50,000,000   MTN     3.250%   August 12,    3136FM2M5 November 12, 2010
                                      2015
    $150,000,000   MTN     0.500%   February 12,  3136FM5H3 November 12, 2010
                                      2013
    $150,000,000   MTN     2.000%   August 12,    3136FM7G3 November 12, 2010
                                      2015
     $50,000,000   MTN     2.000%   May 12, 2015  3136FMPQ1 November 12, 2010
     $60,000,000   MTN     2.000%   May 12, 2016  3136FMPY4 November 12, 2010
     $50,000,000   MTN     2.300%   November 12,  3136FMQQ0 November 12, 2010
                                      2013
    $475,000,000   MTNR    2.000%   May 12, 2020  3136FMQV9 November 12, 2010
    $500,000,000   MTN     2.350%   August 12     31398A2K7 November 12, 2010
                                      2015
    $250,000,000   MTN     2.150%   August 12,    31398A2P6 November 12, 2010
                                      2015
    $250,000,000   MTN     3.000%   May 12, 2015  31398AR61 November 12, 2010

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.

Katherine Constantinou, Fannie Mae, +1-202-752-5403