Fannie Mae Redemption

WASHINGTON, November 5, 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:

      Principal  Security Interest   Maturity Date    CUSIP   Redemption Date
       Amount      Type     Rate
                                      November 15,              November 15,
    $250,000,000    MTN      4.648%       2012      3136F8WY7       2010
                                      November 16,              November 16,
      $7,014,000   FINP      5.375%       2022      3135A07K9       2010
                                      November 16,              November 16,
     $90,000,000   MTNR      5.000%       2029      3136FJMV0       2010
                                       August 16,               November 16,
    $500,000,000    MTN      1.250%       2013      31398A2T8       2010
                                      November 17,              November 17,
     $50,000,000    MTN      3.090%       2014      3136FJPQ8       2010
                                        May 17,                 November 17,
    $100,000,000    MTN      0.500%       2013      3136FM4T8       2010
                                       August 17,               November 17,
     $75,000,000    MTN      1.500%       2015      3136FM6P4       2010
                                        May 17,                 November 17,
     $50,000,000    MTN      2.000%       2018      3136FMQR8       2010
                                        May 17,                 November 17,
    $125,000,000    MTN      2.020%       2013      3136FMQU1       2010
                                      November 17,              November 17,
     $75,000,000    MTN      3.000%       2017      3136FMQX5       2010
                                        May 17,                 November 17,
     $50,000,000    MTN      2.050%       2013      3136FMRR7       2010
                                        May 17,                 November 17,
     $50,000,000    MTN      1.270%       2012      3136FMSQ8       2010
                                      November 17,              November 17,
    $250,000,000    MTN      3.250%       2014      31398AZW5       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