Fannie Mae Redemption

By Fannie Mae, PRNE
Monday, June 20, 2011

WASHINGTON, June 21, 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

     Principal  Security  Interest     Maturity                Redemption
      Amount    Type      Rate          Date         CUSIP      Date
    $75,000,000  MTN     1.200%   November 1, 2013 3136FP6E2 July 1, 2011
    $75,000,000  MTN     1.500%   November 1, 2013 3136FRCD3 July 1, 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

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



Katherine Constantinou, +1-202-752-5403

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