Fannie Mae Redemption

WASHINGTON, August 15, 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   

          $525,000  FINP   5.000%  August 25, 2023  3135A1LE5 August 25, 2011
    $1,000,000,000  MTN    1.500% February 25, 2014 3135G0AS2 August 25, 2011
      $250,000,000  MTN    1.625% February 25, 2014 3135G0AU7 August 25, 2011
    $1,000,000,000  MTN    1.700% February 25, 2014 3135G0AW3 August 25, 2011
       $75,000,000  MTN    1.550%  August 25, 2015  3136FM6R0 August 25, 2011
       $50,000,000  MTN    1.000%  August 25, 2015  3136FM7C2 August 25, 2011
      $100,000,000  MTN    2.000% November 25, 2016 3136FM7M0 August 25, 2011
       $50,000,000  MTN    3.000% February 25, 2026 3136FP6T9 August 25, 2011
      $100,000,000  MTN    4.800% February 25, 2026 3136FP7C5 August 25, 2011
       $50,000,000  MTN    2.000% February 25, 2021 3136FP7G6 August 25, 2011
       $50,000,000  MTNR   4.000% February 25, 2026 3136FP7M3 August 25, 2011
       $50,000,000  MTN    1.000%  August 25, 2014  3136FPAM9 August 25, 2011
       $50,000,000  MTN    2.000%  August 25, 2020  3136FPAU1 August 25, 2011
       $50,000,000  MTN    1.500% August 25, 2015   3136FPAX5 August 25, 2011
      $250,000,000  MTN    1.500% November 25, 2015 3136FPB55 August 25, 2011
       $50,000,000  MTN    2.000% November 25, 2015 3136FPBH9 August 25, 2011
       $75,000,000  MTN    2.375% November 25, 2019 3136FPBQ9 August 25, 2011
       $50,000,000  MTN    2.875%  August 25, 2015  3136FPBV8 August 25, 2011
       $50,000,000  MTN    1.000%  August 25, 2020  3136FPBX4 August 25, 2011
       $54,800,000  MTN    2.000% February 25, 2016 3136FPCA3 August 25, 2011
      $100,000,000  MTN    1.625% February 25, 2015 3136FPCD7 August 25, 2011
      $110,000,000  MTN    1.750%  August 25, 2015  3136FPCE5 August 25, 2011
      $350,000,000  MTN    1.100%  August 25, 2015  3136FPCP0 August 25, 2011
       $50,000,000  MTN    2.000% February 25, 2016 3136FPCZ8 August 25, 2011
      $125,000,000  MTN    2.000% November 25, 2020 3136FPE52 August 25, 2011
      $100,000,000  MTN    1.010% November 25, 2015 3136FPXY8 August 25, 2011
      $100,000,000  MTN    1.375% November 25, 2015 3136FPZS9 August 25, 2011
       $50,000,000  MTN    2.000% February 25, 2026 3136FRAH6 August 25, 2011
       $75,000,000  MTN    3.000%  August 25, 2016  3136FRAP8 August 25, 2011
       $50,000,000  MTN    2.000% February 25, 2026 3136FRAX1 August 25, 2011
       $50,000,000  MTN    5.000% February 25, 2026 3136FRBA0 August 25, 2011
       $75,000,000  MTN    2.000% February 25, 2016 3136FRBB8 August 25, 2011
       $50,000,000  MTN    2.850% February 25, 2016 3136FRBD4 August 25, 2011
       $85,000,000  MTN    2.750% February 25, 2016 3136FRBL6 August 25, 2011
      $425,000,000  MTN    3.000%  August 25, 2016  3136FRBM4 August 25, 2011
      $100,000,000  MTN    4.000% February 25, 2026 3136FRBP7 August 25, 2011
      $100,000,000  MTN    2.000%  August 25, 2014  3136FRBV4 August 25, 2011
      $250,000,000  MTN    2.875% February 25, 2016 3136FRBX0 August 25, 2011
      $115,000,000  MTN    2.250% February 25, 2021 3136FRCS0 August 25, 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