Fannie Mae Redemption

WASHINGTON, October 7, 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
                                     October 17,             October 17,
       $75,000,000   MTN     6.130%      2036     3136F73T2     2011
                                     October 18,             October 18,
      $100,000,000   MTN     0.625%      2013     3136FPNT0     2011
                                     October 18,             October 18,
       $75,000,000   MTN     3.000%      2022     3136FPPG6     2011
                                       July 18,              October 18,
       $50,000,000   MTN     1.250%      2014     3136FPPS0     2011
                                     October 18,             October 18,
    $1,000,000,000   MTN     1.000%      2013     31398A4Q2     2011
                                     October 19,             October 19,
       $50,000,000   MTN     2.250%      2018     3136FPPE1     2011
                                     October 19,             October 19,
       $50,000,000   MTN     2.150%      2016     3136FPPL5     2011
                                     October 19,             October 19,
       $50,000,000   MTN     2.000%      2020     3136FPPP6     2011
                                      April 19,              October 19,
      $500,000,000   MTN     2.000%      2013     31398AN57     2011
                                     October 20,             October 20,
       $50,000,000   MTN     3.125%      2015     3136FMKN3     2011
                                       July 20,              October 20,
       $50,000,000   MTN     3.000%      2018     3136FMR22     2011
                                      April 20,              October 20,
      $125,000,000   MTN     2.000%      2016     3136FPNW3     2011
                                     October 20,             October 20,
       $50,000,000   MTN     2.500%      2020     3136FPPM3     2011
                                     October 20,             October 20,
       $50,000,000   MTN     2.000%      2020     3136FPQR1     2011
                                     October 20,             October 20,
       $50,000,000   MTN     1.350%      2014     3136FPQS9     2011
                                     October 20,             October 20,
       $50,000,000   MTN     2.050%      2016     3136FPRF6     2011
                                      April 20,              October 20,
       $75,000,000   MTN     1.000%      2026     3136FREM1     2011
                                      April 20,              October 20,
       $50,000,000   MTN     4.650%      2026     3136FRER0     2011
                                      April 20,              October 20,
       $25,000,000   MTN     3.500%      2026     3136FRJF1     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