Fannie Mae Redemption

WASHINGTON, July 29, 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
                                       August 8,                August 8,
    $373,000         FINP     5.250%   2023         3135A1KQ9   2011
                                       February 8,              August 8,
    $500,000,000     MTN      1.800%   2013         31398AF23   2011
                                       August 9,                August 9,
    $50,000,000      MTN      1.000%   2016         3136FM4S0   2011
                                       February 9,              August 9,
    $175,000,000     MTN      2.000%   2021         3136FP4B0   2011
                                       February 9,              August 9,
    $50,000,000      MTN      2.000%   2015         3136FP4H7   2011
                                       August 9,                August 9,
    $60,000,000      MTN      1.125%   2013         3136FP4L8   2011
                                                                August 9,
    $75,000,000      MTN      1.650%   May 9, 2014  3136FP5Y9   2011
                                       August 9,                August 9,
    $50,000,000      MTN      1.160%   2013         3136FP5Z6   2011
                                       February                 August 10,
    $250,000,000     MTN      1.620%   10, 2014     3135G0AT0   2011
                                       November                 August 10,
    $75,000,000      MTN      2.250%   10, 2015     3136FM4X9   2011
                                       August 10,               August 10,
    $100,000,000     MTN      1.250%   2015         3136FM6K5   2011
                                       February                 August 10,
    $100,000,000     MTN      2.000%   10, 2015     3136FP5J2   2011
                                       February                 August 10,
    $150,000,000     MTN      0.500%   10, 2014     3136FP6D4   2011
                                       August 10,               August 10,
    $75,000,000      MTN      2.150%   2015         3136FP6U6   2011
                                       February                 August 10,
    $50,000,000      MTN      1.750%   10, 2014     3136FP6Z5   2011
                                       August 10,               August 10,
    $250,000,000     MTN      2.000%   2015         3136FPAT4   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