Fannie Mae Redemption

WASHINGTON, August 29, 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

      $100,000,000   MTN      1.000%    December 9,   3136FPA23  September 9,
                                           2022                      2011
       $50,000,000   MTN      2.000%    December 9,   3136FPA49  September 9,
                                           2020                      2011
       $60,000,000   MTN      1.650%    December 9,   3136FPA72  September 9,
                                           2022                      2011
      $100,000,000   MTN      4.150%    December 8,   3136FPB48  September 8,
                                           2025                      2011
       $50,000,000   MTN      1.250%    December 9,   3136FPC39  September 9,
                                           2015                      2011
       $85,000,000   MTN      2.300%   March 8, 2017  3136FPCT2  September 8,
                                                                     2011
      $125,000,000   MTN      1.850%   September 8,   3136FPDD6  September 8,
                                           2015                      2011
       $50,000,000   MTN      2.000%   March 8, 2016  3136FPDM6  September 8,
                                                                     2011
       $50,000,000   MTN      2.000%   September 8,   3136FPDN4  September 8,
                                           2017                      2011
       $25,000,000   MTN      2.400%   September 8,   3136FPDV6  September 8,
                                           2017                      2011
       $50,000,000   MTN      1.125%   September 8,   3136FPDW4  September 8,
                                           2015                      2011
       $75,000,000   MTN      1.000%   September 8,   3136FPDZ7  September 8,
                                           2015                      2011
       $40,000,000   MTN      1.650%    December 8,   3136FPE45  September 8,
                                           2014                      2011
       $33,625,000   MTN      1.375%    December 9,   3136FPE86  September 9,
                                           2015                      2011
      $200,000,000   MTN      2.000%   September 9,   3136FPEK9  September 9,
                                           2016                      2011
      $250,000,000   MTN      1.850%   September 9,   3136FPEQ6  September 9,
                                           2015                      2011
       $50,000,000   MTN      0.840%   March 8, 2013  3136FPFU6  September 8,
                                                                     2011
      $105,000,000   MTN      1.250%    December 9,   3136FPZL4  September 9,
                                           2022                      2011
       $50,000,000   MTN      2.250%   March 9, 2023  3136FRBU6  September 9,
                                                                     2011
       $50,000,000   MTN      2.350%   March 9, 2015  3136FRCA9  September 9,
                                                                     2011
       $50,000,000   MTN      2.000%   March 9, 2021  3136FRCB7  September 9,
                                                                     2011
       $50,000,000   MTN      2.000%   September 9,   3136FRCF8  September 9,
                                           2016                      2011
       $50,000,000   MTN      4.000%   March 9, 2026  3136FRCG6  September 9,
                                                                     2011
      $210,000,000   MTN      3.750%   March 8, 2016  3136FRCH4  September 8,
                                                                     2011
      $150,000,000   MTN      3.500%   March 8, 2016  3136FRCL5  September 8,
                                                                     2011
    $1,250,000,000   MTN      1.125%   September 9,   31398A3D2  September 9,
                                           2013                      2011
      $500,000,000   MTN      3.650%    December 8,   31398A6P2  September 8,
                                           2020                      2011
      $250,000,000   MTN      6.000%   March 9, 2020  31398AH62  September 9,
                                                                    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