Fannie Mae Redemption

WASHINGTON, July 15, 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
      $1,290,000   FINP    5.000%   July 25, 2023   3135A1KH9  July 25, 2011
    $250,000,000   MTN     1.670%   July 25, 2014   3136FM4F8  July 25, 2011
    $150,000,000   MTN     1.250%  October 25, 2013 3136FP2N6  July 25, 2011
    $100,000,000   MTN     2.600%  January 25, 2016 3136FP2Q9  July 25, 2011
    $200,000,000   MTN     0.950%  October 25, 2013 3136FPUN5  July 25, 2011
    $251,000,000   MTN     0.950%  October 25, 2013 31398A5K4  July 25, 2011
     $50,000,000   MTN     2.000%  January 26, 2018 3136FM2X1  July 26, 2011
     $75,000,000   MTN     2.125%   July 26, 2019   3136FMV68  July 26, 2011
     $50,000,000   MTN     2.125%  January 26, 2018 3136FP3N5  July 26, 2011
     $50,000,000   MTN     1.125%   July 26, 2013   3136FP4A2  July 26, 2011
     $50,000,000   MTN     2.000%  January 26, 2018 3136FP4K0  July 26, 2011
     $50,000,000   MTN     2.250%   July 27, 2022   3136FMR97  July 27, 2011
     $50,000,000   MTNR    2.000%   July 27, 2016   3136FMS62  July 27, 2011
    $100,000,000   MTN     2.000%  January 27, 2015 3136FMV84  July 27, 2011
     $50,000,000   MTN     1.000%   July 27, 2016   3136FMW67  July 27, 2011
     $75,000,000   MTN     2.000%   July 27, 2020   3136FMW75  July 27, 2011
     $75,000,000   MTN     2.000%   July 27, 2017   3136FMW83  July 27, 2011
    $180,000,000   MTN     1.750%   July 27, 2015   3136FMX90  July 27, 2011
     $80,000,000   MTN     2.500%   July 27, 2018   3136FMY24  July 27, 2011
    $100,000,000   MTN     2.000%  October 27, 2014 3136FMY65  July 27, 2011
     $75,000,000   MTN     2.000%   July 27, 2018   3136FMZ23  July 27, 2011
     $50,000,000   MTN     2.500%  January 27, 2021 3136FP2P1  July 27, 2011
     $50,000,000   MTN     2.430%  January 27, 2016 3136FP2V8  July 27, 2011
     $50,000,000   MTN     1.500%  January 27, 2016 3136FP3G0  July 27, 2011
     $50,000,000   MTN     2.000%  January 27, 2023 3136FP3H8  July 27, 2011
     $75,000,000   MTN     1.000%  January 27, 2016 3136FP4D6  July 27, 2011
    $250,000,000   MTN     0.625%   July 27, 2012   31398AY55  July 27, 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, +1-202-752-5403