Fannie Mae Redemption

WASHINGTON, June 27, 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
       Amount     Type     Rate    Maturity Date    CUSIP   Redemption Date
    $100,000,000   MTN    1.250%   July 7, 2014    3136FMF58  July 7, 2011
     $50,000,000   MTN    2.370%   July 7, 2015    3136FMP24  July 7, 2011
     $50,000,000   MTN    1.000%   July 7, 2015    3136FMQ72  July 7, 2011
     $50,000,000   MTN    2.350%   July 7, 2015    3136FMQ98  July 7, 2011
     $50,000,000   MTN    1.750%   July 7, 2014    3136FPV38  July 7, 2011
     $75,000,000   MTN    1.500%  January 7, 2014  3136FPX93  July 7, 2011
     $75,000,000   MTN    2.500%  January 7, 2021  3136FPY68  July 7, 2011
    $250,000,000   MTN    1.000%  January 7, 2013  31398A7H9  July 7, 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