Fannie Mae Redemption

WASHINGTON, July 19, 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                              Redemption
        Amount      Type    Rate     Maturity Date     CUSIP       Date
       $50,000,000   MTN   1.000%    July 29, 2015   3136FM2K9  July 29, 2011
       $50,000,000   MTN   1.375%    July 29, 2015   3136FM4M3  July 29, 2011
       $50,000,000   MTN   1.600%    July 29, 2015   3136FM6L3  July 29, 2011
       $50,000,000   MTN   1.600%  January 29, 2014  3136FMU69  July 29, 2011
       $50,000,000   MTN   1.200%   April 29, 2013   3136FMZ80  July 29, 2011
       $75,000,000   MTN   2.120%  December 15, 2015 3136FPA98  July 29, 2011
       $50,000,000   MTN   1.125%    July 29, 2014   3136FPRS8  July 29, 2011
       $50,000,000   MTN   0.675%   April 29, 2013   3136FPSK4  July 29, 2011
       $50,000,000   MTN   1.000%   April 29, 2016   3136FPTP2  July 29, 2011
       $50,000,000   MTN   0.500%  October 29, 2013  3136FPTV9  July 29, 2011
      $250,000,000   MTN   2.150%    July 29, 2015   31398A2G6  July 29, 2011
      $500,000,000   MTN   0.970%  October 29, 2013  31398A5D0  July 29, 2011
    $1,000,000,000   MTN   1.250%    July 29, 2013   31398AZ47  July 29, 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