Fannie Mae Redemption

WASHINGTON, August 16, 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

       $10,000,000   MTN   4.150% February 26, 2015 3136F86Q3 August 26, 2011
       $25,000,000   MTN   3.430%  August 26, 2014  3136FH5Y7 August 26, 2011
      $100,000,000   MTN   1.125% November 26, 2012 3136FMTA2 August 26, 2011
       $75,000,000   MTN   1.000%  August 26, 2015  3136FPAA5 August 26, 2011
       $50,000,000   MTN   0.550%  August 26, 2013  3136FPAK3 August 26, 2011
       $50,000,000   MTN   0.550%  August 26, 2013  3136FPAY3 August 26, 2011
       $50,000,000   MTN   1.000% November 26, 2018 3136FPB97 August 26, 2011
       $50,000,000   MTN   2.000%  August 26, 2020  3136FPBC0 August 26, 2011
       $50,000,000   MTN   1.000%  August 26, 2020  3136FPBG1 August 26, 2011
       $50,000,000   MTN   1.050%  August 26, 2013  3136FPBJ5 August 26, 2011
       $75,000,000   MTN   1.500%  August 26, 2014  3136FPBK2 August 26, 2011
      $150,000,000   MTN   1.250% February 26, 2014 3136FPBL0 August 26, 2011
       $75,000,000   MTN   2.250%  August 26, 2016  3136FPBR7 August 26, 2011
       $50,000,000   MTN   2.050% February 26, 2016 3136FPBW6 August 26, 2011
       $50,000,000   MTN   1.000%  August 26, 2013  3136FPCK1 August 26, 2011
      $100,000,000   MTN   1.100% November 26, 2013 3136FPDT1 August 26, 2011
       $50,000,000   MTN   2.050% November 26, 2018 3136FPED5 August 26, 2011
      $100,000,000   MTN   1.050% November 26, 2013 3136FPEY9 August 26, 2011
       $50,000,000   MTN   2.000%  August 26, 2016  3136FPFB8 August 26, 2011
       $50,000,000   MTN   0.860% February 26, 2013 3136FPFG7 August 26, 2011
       $50,000,000   MTN   1.050%  August 26, 2013  3136FPFH5 August 26, 2011
       $50,000,000   MTN   1.220%  March 26, 2014   3136FPFX0 August 26, 2011
    $1,000,000,000   MTN   1.500%  August 26, 2014  31398A2Y7 August 26, 2011
      $500,000,000   MTN   1.000% November 26, 2013 31398A5Y4 August 26, 2011
      $350,000,000   MTN   1.100% November 26, 2013 31398A6T4 August 26, 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