Fannie Mae Redemption

WASHINGTON, September 2, 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
     $75,000,000  MTN  2.400% September 13, 2017 3136FPCY1 September 13, 2011
     $50,000,000  MTN  3.125% September 14, 2015 3136FPDB0 September 14, 2011
    $100,000,000  MTN  1.250%   March 14, 2014   3136FPFY8 September 14, 2011
     $50,000,000  MTN  2.150% December 14,2020   3136FPH67 September 14, 2011
    $100,000,000  MTN  2.625%   March 14, 2016   3136FRDC4 September 14, 2011
    $150,000,000  MTN  2.000%   March 14, 2014   3136FRDF7 September 14, 2011
     $50,000,000  MTN  0.750%   March 14, 2014   3136FRDK6 September 14, 2011
     $10,000,000  MTN  3.030% September 15, 2014 3136FJBT7 September 15, 2011
    $100,000,000  MTN  2.500%   June 15, 2017    3136FPC54 September 15, 2011
     $50,000,000  MTN  3.050% September 15, 2015 3136FPCX3 September 15, 2011
    $175,000,000  MTN  1.000% December 15, 2025  3136FPD20 September 15, 2011
     $50,000,000  MTN  3.375% September 15, 2015 3136FPDK0 September 15, 2011
     $50,000,000  MTN  1.375% September 15, 2015 3136FPEG8 September 15, 2011
    $100,000,000  MTN  3.650% December 15, 2020  3136FPF28 September 15, 2011
     $50,000,000  MTN  3.650% December 15, 2020  3136FPF36 September 15, 2011
    $500,000,000  MTN  3.200% September 15, 2020 3136FPFJ1 September 15, 2011
     $50,000,000  MTN  1.450%   August 15, 2014  3136FPFK8 September 15, 2011
     $50,000,000  MTN  4.650% September 15, 2015 3136FPGK7 September 15, 2011
     $50,000,000  MTN  3.750% December 15, 2020  3136FPL70 September 15, 2011
    $300,000,000  MTN  2.600% September 15, 2017 31398A3M2 September 15, 2011
     $50,000,000  MTN  5.500% December 17, 2015  3136FPF77 September 17, 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