Fannie Mae Redemption

WASHINGTON, June 28, 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
    $100,000,000   MTN     2.100%   July 8, 2013    3136FJF22  July 8, 2011
     $50,000,000   MTN     2.125%  October 8, 2013  3136FMCD4  July 8, 2011
     $50,000,000   MTN     5.000%   July 8, 2030    3136FMD35  July 8, 2011
    $100,000,000   MTN     2.050%  October 8, 2015  3136FPMR5  July 8, 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 of Fannie Mae, +1-202-752-2034