Fannie Mae Redemption

WASHINGTON, June 17, 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                     Redemption
    Amount         Type     Rate       Date             CUSIP        Date
    $2,727,000     FINP    5.450%  June 27, 2023      3135A1JC2  June 27, 2011
    $46,620,000    MTN     6.500%  June 27, 2036      3136F7J65  June 27, 2011
    $175,000,000   MTN     1.000%  June 27, 2013      3136FPL47  June 27, 2011
    $100,000,000   MTN     1.500%  June 27, 2014      3136FPP50  June 27, 2011
    $50,000,000    MTN     1.250%  December 27, 2013  3136FPQ67  June 27, 2011
    $225,000,000   MTN     1.400%  December 27, 2013  3136FPR41  June 27, 2011
    $1,000,000,000 MTN     0.550%  December 27, 2012  31398A6J6  June 27, 2011
    $25,000,000    MTN     5.000%  December 28, 2029  3136FJXH9  June 28, 2011
    $85,000,000    MTN     5.000%  December 28, 2029  3136FJYR6  June 28, 2011
    $75,000,000    MTNR    2.500%  December 28, 2018  3136FMK45  June 28, 2011
    $30,000,000    MTN     2.100%  June 28, 2013      3136FMLL6  June 28, 2011
    $50,000,000    MTN     1.350%  June 28, 2013      3136FMP99  June 28, 2011
    $150,000,000   MTN     1.300%  June 28, 2013      3136FMR48  June 28, 2011
    $100,000,000   MTN     1.300%  December 28, 2012  3136FMYY4  June 28, 2011
    $50,000,000    MTN     3.100%  December 28, 2018  3136FMZX5  June 28, 2011
    $75,000,000    MTN     1.000%  June 28, 2013      3136FPJ32  June 28, 2011
    $85,000,000    MTN     2.000%  December 28, 2015  3136FPJ73  June 28, 2011
    $50,000,000    MTN     1.020%  June 28, 2013      3136FPJJ7  June 28, 2011
    $50,000,000    MTN     0.850%  March 28, 2013     3136FPK30  June 28, 2011
    $500,000,000   MTN     2.250%  March 28, 2016     3136FPKY2  June 28, 2011
    $125,000,000   MTN     0.500%  March 28, 2013     3136FPLM7  June 28, 2011
    $425,000,000   MTN     0.875%  December 28, 2012  3136FPM61  June 28, 2011
    $125,000,000   MTN     1.000%  March 28, 2013     3136FPR33  June 28, 2011
    $100,000,000   MTN     0.625%  December 28, 2012  3136FPT49  June 28, 2011
    $75,000,000    MTN     3.000%  December 28, 2018  3136FPT56  June 28, 2011
    $50,000,000    MTN     4.250%  December 28, 2020  3136FPU54  June 28, 2011
    $100,000,000   MTN     0.750%  June 28, 2013      3136FPU70  June 28, 2011
    $125,000,000   MTN     1.000%  March 28, 2013     3136FPY84  June 28, 2011
    $75,000,000    MTN     0.875%  December 28, 2012  3136FPZ67  June 28, 2011
    $100,000,000   MTN     1.000%  December 28, 2012  3136FPZ75  June 28, 2011
    $350,000,000   MTN     0.875%  December 28, 2012  31398A6X5  June 28, 2011
    $500,000,000   MTN     1.750%  December 28, 2012  31398AC26  June 28, 2011
    $75,000,000    MTN     2.000%  December 29, 2017  3136FMN83  June 29, 2011
    $200,000,000   MTN     2.000%  September 29, 2014 3136FMQ23  June 29, 2011
    $50,000,000    MTN     2.000%  June 29, 2020      3136FMYQ1  June 29, 2011
    $75,000,000    MTNR    3.000%  June 29, 2022      3136FMZD9  June 29, 2011
    $50,000,000    MTN     3.500%  June 29, 2020      3136FMZY3  June 29, 2011
    $100,000,000   MTN     3.375%  December 29, 2017  3136FP5K9  June 29, 2011
    $75,000,000    MTN     1.500%  December 29, 2015  3136FPH91  June 29, 2011
    $50,000,000    MTN     1.000%  December 29, 2025  3136FPK71  June 29, 2011
    $125,000,000   MTN     1.500%  September 29, 2015 3136FPKS5  June 29, 2011
    $130,000,000   MTN     1.500%  September 29, 2015 3136FPLF2  June 29, 2011
    $50,000,000    MTN     1.375%  September 29, 2015 3136FPLU9  June 29, 2011
    $100,000,000   MTN     2.320%  December 29, 2015  3136FPP35  June 29, 2011
    $50,000,000    MTN     2.280%  December 29, 2015  3136FPP68  June 29, 2011
    $50,000,000    MTN     2.000%  June 29, 2015      3136FPQ42  June 29, 2011
    $75,000,000    MTN     1.875%  December 29, 2014  3136FPT72  June 29, 2011
    $50,000,000    MTN     4.625%  December 29, 2025  3136FPT98  June 29, 2011
    $50,000,000    MTN     1.150%  April 29, 2013     3136FPX69  June 29, 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, Fannie Mae, +1-202-752-5403