Fannie Mae Redemption

WASHINGTON, June 3, 2011 -

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:

     Principal     Security  Interest    Maturity       CUSIP      Redemption
       Amount        Type      Rate        Date                       Date
                                          June 13,                   June 13,
        $927,000     FINP     5.150%       2023       3135A1HN0       2011
                                         June 13,                    June 13,
     $10,000,000     MTN      5.150%       2018       3136F9TF0       2011
                                        December 13,                 June 13,
    $200,000,000     MTN      1.200%       2013       3136FPG27       2011
                                        December 13,                 June 13,
     $50,000,000     MTN      0.700%       2012       3136FPG92       2011
                                        September 13,                June 13,
    $100,000,000     MTN      1.110%       2013       3136FPK22       2011
                                        December 13,                 June 13,
    $250,000,000     MTN      0.800%       2012       31398A6W7       2011
                                          March 14,                  June 14,
     $75,000,000     MTN      2.000%       2014       3136FMVV3       2011
                                        December 14,                 June 14,
     $50,000,000     MTN      1.375%       2012       3136FMWT7       2011
                                        December 14,                 June 14,
    $250,000,000     MTN      0.800%       2012       3136FPH83       2011
                                          March 15,                  June 15,
    $100,000,000     MTN      5.275%       2030       3136FMBV5       2011
                                          July 15,                   June 15,
     $50,000,000     MTN      2.250%       2015       3136FMS96       2011
                                          June 15,                   June 15,
    $135,000,000     MTNR     1.000%       2015       3136FMVX9       2011
                                          June 15,                   June 15,
     $50,000,000     MTN      1.125%       2012       3136FMWS9       2011
                                          June 15,                   June 15,
    $130,000,000     MTN      2.000%       2015       3136FMXY5       2011
                                          June 15,                   June 15,
     $50,000,000     MTN      1.500%       2015       3136FMYG3       2011
                                        December 15,                 June 15,
    $400,000,000     MTN      2.000%       2015       3136FPC70       2011
                                        December 15,                 June 15,
     $50,000,000     MTN      1.000%       2020       3136FPE60       2011

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 light of your circumstances and financial position. If
you are in any doubt you should consult an appropriately qualified financial
advisor.

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