Fannie Mae Redemption

WASHINGTON, August 12, 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                    CUSIP     Redemption
         Amount      Type     Rate     Maturity Date                 Date
                                                                  August 22,
          $815,000   FINP    5.250%   August 22, 2023  3135A1LA3     2011
                                                                  August 22,
       $10,000,000   MTN     5.200%   August 22, 2018  3136F9C50     2011
                                                                  August 22,
       $50,000,000   MTNR    5.000%  February 22, 2030 3136FJ4A6     2011
                                                                  August 22,
      $105,000,000   MTN     2.100%  February 22, 2023 3136FP7F8     2011
                                                                  August 23,
      $100,000,000   MTN     2.125%  February 23, 2016 3136FP6C6     2011
                                                                  August 23,
      $100,000,000   MTN     2.550%  February 23, 2016 3136FP6Q5     2011
                                                                  August 23,
       $75,000,000   MTN     2.500%  February 23, 2016 3136FP7B7     2011
                                                                  August 23,
       $50,000,000   MTN     1.000%  February 23, 2018 3136FP7K7     2011
                                                                  August 23,
      $100,000,000   MTN     0.800%  November 23, 2012 3136FPAF4     2011
                                                                  August 23,
       $50,000,000   MTN     1.500%  February 23, 2018 3136FPCM7     2011
                                                                  August 23,
       $50,000,000   MTN     1.250%  November 23, 2020 3136FPXB8     2011
                                                                  August 23,
      $100,000,000   MTN     1.050%    May 23, 2014    3136FPXU6     2011
                                                                  August 23,
       $50,000,000   MTN     1.000%  November 23, 2022 3136FPYR2     2011
                                                                  August 23,
       $50,000,000   MTN     1.125%  November 23, 2020 3136FPZB6     2011
                                                                  August 23,
       $35,100,000   MTN     0.650%  November 23, 2015 3136FPZF7     2011
                                                                  August 23,
      $100,000,000   MTN     2.000%  November 23, 2020 3136FPZW0     2011
                                                                  August 23,
       $50,000,000   MTN     1.000%  February 23, 2021 3136FRAM5     2011
                                                                  August 24,
      $100,000,000   MTN     0.750%   August 24, 2012  3136FM7L2     2011
                                                                  August 24,
       $50,000,000   MTN     1.000%  February 24, 2015 3136FP6H5     2011
                                                                  August 24,
       $75,000,000   MTN     4.750%  February 24, 2026 3136FP6P7     2011
                                                                  August 24,
    $1,000,000,000   MTN     2.000%   August 24, 2015  3136FPAD9     2011
                                                                  August 24,
       $50,000,000   MTN     2.000%   August 24, 2022  3136FPAQ0     2011
                                                                  August 24,
        $7,955,000   MTN     3.350%   August 24, 2020  3136FPBA4     2011
                                                                  August 24,
      $100,000,000   MTN     1.000%    May 24, 2013    3136FPBD8     2011
                                                                  August 24,
       $50,000,000   MTN     2.400%  February 24, 2017 3136FPBM8     2011
                                                                  August 24,
       $50,000,000   MTN     2.570%   August 24, 2017  3136FPBS5     2011
                                                                  August 24,
       $75,000,000   MTN     2.000%   August 24, 2018  3136FPCN5     2011
                                                                  August 24,
       $75,000,000   MTN     2.050%   August 24, 2018  3136FPDE4     2011
                                                                  August 24,
       $50,000,000   MTN     1.500%  November 24, 2015 3136FPXG7     2011
                                                                  August 24,
      $125,000,000   MTN     2.000%  November 24, 2020 3136FPZK6     2011
                                                                  August 24,
       $50,000,000   MTN     1.600%  February 24, 2014 3136FRAK9     2011
                                                                  August 24,
      $125,000,000   MTN     2.625%  February 24, 2021 3136FRBJ1     2011
                                                                  August 24,
      $125,000,000   MTN     1.125%  February 24, 2016 3136FRBN2     2011
                                                                  August 24,
      $250,000,000   MTN     1.750%  February 24, 2014 3136FRBZ5     2011
                                                                  August 24,
      $500,000,000   MTN     3.420%  November 24, 2020 31398A6M9     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