Fannie Mae Redemption

WASHINGTON, July 8, 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                     CUSIP    Redemption
        Amount       Type     Rate     Maturity Date                 Date
      $100,000,000   MTN     1.000%  January 18, 2013  3136FP2A4 July 18, 2011
      $100,000,000   MTN     0.625%  January 18, 2013  3136FP2S5 July 18, 2011
      $250,000,000   MTN     0.930%  January 18, 2013  31398A7M8 July 18, 2011
      $250,000,000   MTN     1.000%   April 19, 2013   3135G0AA1 July 19, 2011
      $250,000,000   MTN     3.000%  January 19, 2016  3136FP3K1 July 19, 2011
    $1,025,000,000   MTN     1.375%    July 19, 2013   31398AW32 July 19, 2011
       $20,000,000   MTN     4.100%  October 20, 2016  3136FHKW4 July 20, 2011
       $50,000,000   MTN     2.125%  January 20, 2015  3136FMT95 July 20, 2011
      $125,000,000   MTN     2.375%    July 20, 2015   3136FMU44 July 20, 2011
       $50,000,000   MTN     3.000%    July 20, 2015   3136FMX66 July 20, 2011
       $75,000,000   MTN     1.125%  January 20, 2016  3136FP2T3 July 20, 2011
       $50,000,000   MTN     0.625%  January 20, 2015  3136FP2W6 July 20, 2011
       $50,000,000   MTN     2.700%    July 20, 2016   3136FP3A3 July 20, 2011
      $350,000,000   MTN     1.000%  January 20, 2026  3136FP3B1 July 20, 2011
      $100,000,000   MTN     1.250%  January 20, 2016  3136FP3D7 July 20, 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 of Fannie Mae, +1-202-752-5403