Fannie Mae Redemption

WASHINGTON, August 22, 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

         $75,000 FINP    4.500% September 1, 2023 3135A1LJ4 September 1, 2011
    $100,000,000  MTN    1.000%  December 1, 2025 3136FPC96 September 1, 2011
     $55,000,000  MTN    1.000% September 1, 2015 3136FPCG0 September 1, 2011
     $75,000,000  MTN    1.750%   June 1, 2017    3136FPD79 September 1, 2011
     $50,000,000  MTN    2.125%  December 1, 2020 3136FPZZ3 September 1, 2011
     $75,000,000  MTN    3.000% September 1, 2016 3136FRAZ6 September 1, 2011
    $250,000,000  MTN    3.800%   March 1, 2016   3136FRCE1 September 1, 2011
    $500,000,000  MTN    2.605% September 1, 2017 31398A3B6 September 1, 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