Fannie Mae Redemption

WASHINGTON, August 5, 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

        $7,150,000   FINP    5.150%  April 2,      3135A1EV5   August 15,
                                       2038                      2011
       $50,000,000   MTN     2.000%  August 15,    3136FH2M6   August 15,
                                       2012                      2011
       $50,000,000   MTN     1.000%  February 15,  3136FP4V6   August 15,
                                       2023                      2011
       $50,000,000   MTN     4.500%  October 14,   3136FPPD3   August 15,
                                       2025                      2011
       $50,000,000   MTN     2.500%  August 16,    3136FM6T6   August 16,
                                       2019                      2011
      $100,000,000   MTN     0.650%  August 16,    3136FM7B4   August 16,
                                       2013                      2011
       $50,000,000   MTN     3.000%  August 16,    3136FM7H1   August 16,
                                       2018                      2011
      $100,000,000   MTN     2.000%  February 16,  3136FP4Z7   August 16,
                                       2016                      2011
       $75,000,000   MTN     1.000%  February 16,  3136FP5G8   August 16,
                                       2016                      2011
       $50,000,000   MTN     1.500%  February 16,  3136FP5U7   August 16,
                                       2016                      2011
       $50,000,000   MTN     2.000%  February 16,  3136FP5W3   August 16,
                                       2016                      2011
       $50,000,000   MTN     2.250%  February 16,  3136FP6F9   August 16,
                                       2016                      2011
       $50,000,000   MTN     2.000%  August 16,    3136FP6N2   August 16,
                                       2018                      2011
      $250,000,000   MTN     1.500%  February 16,  3136FP6S1   August 16,
                                       2021                      2011
      $125,000,000   MTN     1.000%  February 16,  3136FP7A9   August 16,
                                       2016                      2011
       $75,000,000   MTN     1.150%  August 16,    3136FPAE7   August 16,
                                       2013                      2011
      $150,000,000   MTN     1.700%  November 16,  3136FPUY1   August 16,
                                       2015                      2011
       $50,000,000   MTN     1.000%  November 16,  3136FPVB0   August 16,
                                       2015                      2011
      $250,000,000   MTN     6.125%  August 17,    31359MV67   August 17,
                                       2026                      2011
    $1,000,000,000   MTN     1.000%  February 17,  3135G0AR4   August 17,
                                       2026                      2011
       $50,000,000   MTN     1.000%  August 17,    3136FM5F7   August 17,
                                       2018                      2011
       $50,000,000   MTN     3.050%  August 17,    3136FM6D1   August 17,
                                       2015                      2011
       $75,000,000   MTN     2.150%  August 17,    3136FM6F6   August 17,
                                       2015                      2011
       $75,000,000   MTN     2.125%  August 17,    3136FM7K4   August 17,
                                       2015                      2011
       $50,000,000   MTN     2.000%  February 17,  3136FP5B9   August 17,
                                       2026                      2011
       $50,000,000   MTN     1.250%  February 17,  3136FP5D5   August 17,
                                       2016                      2011
       $61,000,000   MTN     2.000%  February 17,  3136FP6G7   August 17,
                                       2016                      2011
       $50,000,000   MTN     2.000%  November 17,  3136FPAL1   August 17,
                                       2015                      2011
       $50,000,000   MTN     2.000%  August 17,    3136FPAV9   August 17,
                                       2015                      2011
      $250,000,000   MTN     1.750%  November 17,  31398A5T5   August 17,
                                       2015                      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