Fannie Mae Redemption

WASHINGTON, September 13, 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
    $100,000,000 MTN   2.000% September 23, 2014 3136FJDM0 September 23, 2011
     $50,000,000 MTN   2.250% September 23, 2016 3136FPGD3 September 23, 2011
     $50,000,000 MTN   1.000% December 23, 2022  3136FPH34 September 23, 2011
     $50,000,000 MTN   2.250% September 23, 2019 3136FPHE0 September 23, 2011
     $50,000,000 MTN   2.800% September 23, 2020 3136FPHJ9 September 23, 2011
     $50,000,000 MTN   2.375% December 23, 2019  3136FPHV2 September 23, 2011
    $130,000,000 MTN   2.050% December 23, 2025  3136FPJ99 September 23, 2011
     $50,000,000 MTN   2.400%   March 23, 2020   3136FPJR9 September 23, 2011
     $50,000,000 MTN   2.000%   March 23, 2021   3136FRCV3 September 23, 2011
     $50,000,000 MTN   1.250%   March 23, 2021   3136FRCY7 September 23, 2011
    $150,000,000 MTN   2.200%   March 23, 2015   3136FRCZ4 September 23, 2011
     $65,000,000 MTN   2.000% December 23, 2014  3136FRDP5 September 23, 2011
    $100,000,000 MTN   1.000%   March 23, 2026   3136FREC3 September 23, 2011
    $300,000,000 MTN   1.500% September 23, 2014 31398A3Q3 September 23, 2011
    $250,000,000 MTN   2.350% September 23, 2016 31398A4B5 September 23, 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, Fannie Mae, +1-202-752-5403