Fannie Mae Redemption

WASHINGTON, July 18, 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
    $1,000,000,000   MTN     1.000%  January 28, 2013 3135G0AG8 July 28, 2011
       $50,000,000   MTN     1.000%   July 28, 2015   3136FM2B9 July 28, 2011
       $50,000,000   MTN     3.000%   July 28, 2015   3136FM2F0 July 28, 2011
       $50,000,000   MTN     2.000%  October 28, 2015 3136FM2G8 July 28, 2011
       $50,000,000   MTN     1.000%   July 28, 2016   3136FM2J2 July 28, 2011
       $50,000,000   MTN     1.500%   July 28, 2015   3136FM2P8 July 28, 2011
       $50,000,000   MTN     2.500%   July 28, 2022   3136FM2R4 July 28, 2011
      $100,000,000   MTN     2.010%  January 28, 2015 3136FM2U7 July 28, 2011
       $50,000,000   MTN     1.000%   July 28, 2014   3136FM2Y9 July 28, 2011
       $50,000,000   MTN     2.400%  January 28, 2016 3136FM3A0 July 28, 2011
      $225,000,000   MTN     1.500%   July 28, 2015   3136FM3D4 July 28, 2011
       $50,000,000   MTN     1.000%  January 28, 2016 3136FM3H5 July 28, 2011
      $165,000,000   MTN     1.550%   July 28, 2015   3136FM3T9 July 28, 2011
       $50,000,000   MTN     2.000%  January 28, 2015 3136FM4Z4 July 28, 2011
       $50,000,000   MTN     1.250%   July 28, 2015   3136FM5J9 July 28, 2011
      $100,000,000   MTN     2.250%  January 28, 2016 3136FM5K6 July 28, 2011
       $50,000,000   MTN     2.000%   April 28, 2015  3136FM6W9 July 28, 2011
       $50,000,000   MTN     1.000%   July 28, 2015   3136FMS39 July 28, 2011
       $75,000,000   MTN     1.000%   July 28, 2014   3136FMV27 July 28, 2011
      $150,000,000   MTN     1.500%   July 28, 2015   3136FMV50 July 28, 2011
      $250,000,000   MTN     1.750%   July 28, 2015   3136FMV92 July 28, 2011
       $50,000,000   MTN     1.500%   July 28, 2015   3136FMW59 July 28, 2011
       $75,000,000   MTN     2.500%  January 28, 2016 3136FMX25 July 28, 2011
       $75,000,000   MTNR    2.000%   July 28, 2015   3136FMX74 July 28, 2011
       $50,000,000   MTN     3.000%   July 28, 2015   3136FMY81 July 28, 2011
       $50,000,000   MTN     2.000%  October 28, 2016 3136FMZ64 July 28, 2011
       $50,000,000   MTN     1.500%  January 28, 2014 3136FP2F3 July 28, 2011
       $80,000,000   MTN     2.500%  January 28, 2016 3136FP2J5 July 28, 2011
       $50,000,000   MTN     2.000%   July 28, 2016   3136FP2K2 July 28, 2011
      $100,000,000   MTN     1.000%  January 28, 2026 3136FP2L0 July 28, 2011
       $50,000,000   MTN     1.510%  January 28, 2014 3136FP2X4 July 28, 2011
       $75,000,000   MTN     1.250%  January 28, 2016 3136FP2Y2 July 28, 2011
       $75,000,000   MTN     2.000%  January 28, 2021 3136FP3F2 July 28, 2011
       $50,000,000   MTN     2.110%  January 28, 2015 3136FP3P0 July 28, 2011
       $50,000,000   MTN     2.000%  January 28, 2021 3136FP3Q8 July 28, 2011
       $50,000,000   MTN     1.000%  January 28, 2021 3136FP3R6 July 28, 2011
       $50,000,000   MTN     1.000%  January 28, 2016 3136FP3S4 July 28, 2011
       $50,000,000   MTN     1.000%  January 28, 2016 3136FP3U9 July 28, 2011
      $100,000,000   MTN     2.000%  January 28, 2015 3136FP3Y1 July 28, 2011
       $75,000,000   MTN     2.125%  January 28, 2016 3136FP4P9 July 28, 2011
       $50,000,000   MTN     2.000%   July 28, 2016   3136FP5F0 July 28, 2011
       $60,000,000   MTN     0.860%  January 28, 2013 3136FP5X1 July 28, 2011
       $50,000,000   MTN     1.450%  January 28, 2014 3136FP6A0 July 28, 2011
       $50,000,000   MTN     0.700%  October 28, 2015 3136FPRM1 July 28, 2011
    $1,050,000,000   MTN     3.000%   July 28, 2014   31398AYN6 July 28, 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