Fannie Mae Redemption

WASHINGTON, July 11, 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
     $50,000,000   MTN     2.000% January 21, 2016  3136FMR30  July 21, 2011
     $50,000,000   MTN     2.000%  July 21, 2020    3136FMR55  July 21, 2011
     $50,000,000   MTN     3.000%  July 21, 2015    3136FMS54  July 21, 2011
     $50,000,000   MTN     3.000%  July 21, 2015    3136FMT20  July 21, 2011
     $50,000,000   MTN     2.375%  July 21, 2015    3136FMT38  July 21, 2011
    $100,000,000   MTN     1.500%  July 21, 2015    3136FMV35  July 21, 2011
    $100,000,000   MTN     2.000% January 21, 2015  3136FP2H9  July 21, 2011
     $50,000,000   MTN     1.000% January 21, 2015  3136FP2M8  July 21, 2011
     $50,000,000   MTN     1.750%  July 21, 2014    3136FPZ91  July 21, 2011
    $500,000,000   MTN     0.930% October 21, 2013  31398A5C2  July 21, 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