Fannie Mae Redemption

WASHINGTON, September 16, 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                Redemption
        Amount       Type     Rate          Date          CUSIP      Date
                                                                   September
     $300,000,000    MTN     2.750%    March 28, 2016   3135G0BC6  28, 2011
                                                                   September
     $10,000,000     MTN     1.200%    March 28, 2014   3136FMGV0  28, 2011
                                                                   September
     $20,000,000     MTN     1.200%    March 28, 2014   3136FMGW8  28, 2011
                                                                   September
     $50,000,000     MTN     1.500%  December 28, 2016  3136FPHM2  28, 2011
                                                                   September
     $100,000,000    MTN     3.350%  September 28, 2020 3136FPJB4  28, 2011
                                                                   September
     $50,000,000     MTN     1.125%  September 27, 2013 3136FPJC2  27, 2011
                                                                   September
     $50,000,000     MTN     1.000%    June 27, 2013    3136FPJD0  27, 2011
                                                                   September
     $325,000,000    MTN     2.000%    March 28, 2016   3136FPJP3  28, 2011
                                                                   September
     $50,000,000     MTN     2.000%  September 28, 2018 3136FPKB2  28, 2011
                                                                   September
     $50,000,000     MTN     1.300%    March 28, 2014   3136FPLG0  28, 2011
                                                                   September
     $50,000,000     MTN     1.330%    March 28, 2014   3136FPLX3  28, 2011
                                                                   September
     $50,000,000     MTN     3.000%  December 28, 2020  3136FPM46  28, 2011
                                                                   September
     $50,000,000     MTN     1.270%    March 28, 2014   3136FPMU8  28, 2011
                                                                   September
     $50,000,000     MTN     6.000%  December 30, 2015  3136FPN29  30, 2011
                                                                   September
     $50,000,000     MTN     0.810%    March 28, 2013   3136FPNE3  28, 2011
                                                                   September
     $50,000,000     MTN     2.000%  September 28, 2016 3136FPNQ6  28, 2011
                                                                   September
     $50,000,000     MTN     0.740%    March 28, 2013   3136FPPV3  28, 2011
                                                                   September
     $250,000,000    MTN     1.600%    March 28, 2014   3136FRDY6  28, 2011
                                                                   September
    $1,000,000,000   MTN     0.800%  September 27, 2012 31398A3Z3  27, 2011
                                                                   September
    $1,000,000,000   MTN     1.200%  September 27, 2013 31398A4A7  27, 2011
                                                                   September
     $500,000,000    MTN     3.360%  September 28, 2020 31398A4C3  28, 2011
                                                                   September
     $275,000,000    MTN     0.000%    March 26, 2015   31398AJ45  26, 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 of Fannie Mae, +1-202-752-2034