Fannie Mae Redemption

WASHINGTON, September 6, 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 Date     CUSIP    Redemption Date
      Amount    Type     Rate
     $75,000,000 MTN   2.000% September 16, 2014 3136FJAS0 September 16, 2011
    $100,000,000 MTN   1.000% September 16, 2015 3136FPDS3 September 16, 2011
     $50,000,000 MTN   1.500% December 16, 2015  3136FPE78 September 16, 2011
    $100,000,000 MTN   1.050% September 16, 2015 3136FPEM5 September 16, 2011
    $195,000,000 MTN   1.625% December 16, 2015  3136FPF51 September 16, 2011
     $75,000,000 MTN   1.050% September 16, 2013 3136FPFZ5 September 16, 2011
     $50,000,000 MTN   1.850% September 16, 2015 3136FPGH4 September 16, 2011
     $50,000,000 MTN   1.000% September 16, 2013 3136FPGS0 September 16, 2011
     $75,000,000 MTN   2.300%   June 16, 2017    3136FPGU5 September 16, 2011
     $75,000,000 MTN   2.200% September 16, 2016 3136FPHB6 September 16, 2011
     $75,000,000 MTN   2.300%   June 16, 2017    3136FPHG5 September 16, 2011
     $50,000,000 MTN   2.250% September 16,2019  3136FPHH3 September 16, 2011
     $50,000,000 MTN   4.000%   March 16, 2026   3136FRCJ0 September 16, 2011
     $50,000,000 MTN   2.250% September 16,2014  3136FRDA8 September 16, 2011
     $50,000,000 MTN   2.500%   March 16, 2021   3136FRDB6 September 16, 2011
    $250,000,000 MTN   4.000%   March 16, 2021   3136FRDH3 September 16, 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