Fannie Mae Redemption

WASHINGTON, July 1, 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
      $3,389,000   FINP    5.300%   July 11, 2023   3135A1JS7  July 11, 2011
     $50,000,000   MTN     1.150%   July 11, 2013   3136FP2E6  July 11, 2011
     $50,000,000   MTN     2.500%  January 11, 2016 3136FPT31  July 11, 2011
     $50,000,000   MTN     2.625%  January 11, 2016 3136FPV87  July 11, 2011
    $100,000,000   MTN     2.000%  January 11, 2021 3136FPY50  July 11, 2011
     $50,000,000   MTN     2.000%  January 11, 2016 3136FPZ59  July 11, 2011
     $60,000,000   MTN     0.625%  October 12, 2012 3136FMT61  July 12, 2011
     $50,000,000   MTN     2.000%  January 12, 2018 3136FMY57  July 12, 2011
     $50,000,000   MTN     2.000%   July 13, 2017   3136FMJ47  July 13, 2011
     $50,000,000   MTN     4.000%   July 13, 2015   3136FMK37  July 13, 2011
     $50,000,000   MTN     1.500%   July 13, 2015   3136FMP73  July 13, 2011
     $75,000,000   MTN     2.750%   July 13, 2015   3136FMP81  July 13, 2011
    $135,000,000   MTN     2.000%  January 13, 2015 3136FMS21  July 13, 2011
     $50,000,000   MTN     2.050%  January 13, 2015 3136FMU36  July 13, 2011
    $250,000,000   MTN     1.750%   July 14, 2014   3135G0AB9  July 14, 2011
     $50,000,000   MTN     2.400%   July 14, 2015   3136FMH56  July 14, 2011
    $615,000,000   MTN     1.000%   July 14, 2015   3136FMK94  July 14, 2011
     $50,000,000   MTN     1.600%  January 14, 2014 3136FP2D8  July 14, 2011
     $75,000,000   MTN     4.300%  January 14, 2021 3136FPW37  July 14, 2011
     $50,000,000   MTN     1.000%  January 14, 2013 3136FPX44  July 14, 2011
     $50,000,000   MTN     1.625%  January 14, 2014 3136FPX51  July 14, 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 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