Fannie Mae Redemption

WASHINGTON, June 24, 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      1.000%    April 5, 2013    3136FPS99  07/05/2011
     $55,000,000  MTN      0.750%     July 5, 2013    3136FPX28  07/05/2011
     $50,000,000  MTN      5.000%   January 6, 2025   3136FJZC8  07/06/2011
     $50,000,000  MTN      2.000%     July 6, 2018    3136FME75  07/06/2011
    $100,000,000  MTN      1.500%   January 6, 2014   3136FP2C0  07/06/2011
    $250,000,000  MTN      1.400%   January 6, 2014   31398A7E6  07/06/2011

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

Pete Bakel, +1-202-752-2034