Fannie Mae Redemption

WASHINGTON, June 14, 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
       $50,000,000   MTN     5.000%   June 24, 2030  3136FMYJ7 June 24, 2011
      $100,000,000   MTN     1.000%   June 24, 2013  3136FMZL1 June 24, 2011
                                       January 24,
       $50,000,000   MTN     1.200%       2014       3136FPD53 June 24, 2011
                                      September 24,
      $250,000,000   MTN     1.500%       2015       3136FPHC4 June 24, 2011
    $1,350,000,000   MTN     2.000%   June 24, 2013  31398AS45 June 24, 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