Fannie Mae Redemption

WASHINGTON, July 22, 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                 Redemption
       Amount      Type     Rate         Date         CUSIP        Date
    $100,000,000   MTN     1.375%  February 1, 2016 3136FP3M7 August 1, 2011
     $50,000,000   MTN     2.500%  February 1, 2016 3136FP4J3 August 1, 2011
     $20,000,000   MTN     4.500%   August 3, 2016  3136FH3Z6 August 3, 2011
     $60,000,000   MTN     1.430%  February 3, 2014 3136FM3Q5 August 3, 2011
    $100,000,000   MTN     1.000%    May 3, 2013    3136FP3X3 August 3, 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, Fannie Mae, +1-202-752-5403