Fannie Mae Redemption

WASHINGTON, October 4, 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
     $50,000,000   MTN    3.000%   July 14, 2025   3136FMG32 October 14, 2011
     $50,000,000   MTNR   3.000%   July 14, 2022   3136FMG57 October 14, 2011
     $50,000,000   MTN    4.000%   July 14, 2025   3136FMJ88 October 14, 2011
    $100,000,000   MTNR   3.000%   July 14, 2025   3136FML51 October 14, 2011
     $50,000,000   MTN    3.000%   July 14, 2022   3136FMN34 October 14, 2011
     $50,000,000   MTNR   3.000%   July 14, 2022   3136FMP65 October 14, 2011
     $50,000,000   MTN    3.125%   July 14, 2025   3136FMR71 October 14, 2011
     $50,000,000   MTN    1.150%   April 14, 2014  3136FPPR2 October 14, 2011
     $75,000,000   MTN    2.125%  October 14, 2022 3136FPQA8 October 14, 2011
    $100,000,000   MTN    1.500%   April 14, 2015  3136FPQD2 October 14, 2011
     $50,000,000   MTN    1.300%  October 14, 2014 3136FPQJ9 October 14, 2011
     $50,000,000   MTN    3.000%  October 14, 2020 3136FPRZ2 October 14, 2011
    $150,000,000   MTN    2.000%   April 14, 2026  3136FREK5 October 14, 2011
     $50,000,000   MTN    2.150%   April 14, 2021  3136FREW9 October 14, 2011
    $150,070,000   MTN    0.625%   April 14, 2014  31398A4R0 October 14, 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, Fannie Mae, +1-202-752-2034