Fannie Mae Redemption

WASHINGTON, August 9, 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
        Amount     Type     Rate    Maturity Date    CUSIP    Redemption Date
     $50,000,000   MTN     1.750%  August 19, 2025  3136FM5M2 August 19, 2011
     $50,000,000   MTN     1.250%  August 19, 2013  3136FM6Y5 August 19, 2011
     $50,000,000   MTN     1.250% November 19, 2020 3136FPVG9 August 19, 2011
    $250,000,000   MTN     5.125%  August 19, 2024  31398AYX4 August 19, 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.

Pete Bakel, +1-202-752-2034