Fannie Mae Redemption

WASHINGTON, October 10, 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
     $75,000,000   MTN    4.000%  July 21, 2025   3136FML93 October 21, 2011
     $50,000,000   MTN    1.500%  April 21, 2015  3136FMLG7 October 21, 2011
     $50,000,000   MTN    4.000%  July 21, 2025   3136FMQ31 October 21, 2011
     $50,000,000   MTN    4.000%  July 21, 2025   3136FMQ49 October 21, 2011
     $82,000,000   MTN    3.000%  July 21, 2022   3136FMS88 October 21, 2011
    $100,000,000   MTNR   3.000% January 21, 2021 3136FP2R7 October 21, 2011
     $75,000,000   MTN    3.000% October 21, 2025 3136FPNP8 October 21, 2011
    $100,000,000   MTN    1.500% October 21, 2015 3136FPPF8 October 21, 2011
     $50,000,000   MTN    3.250% October 21, 2015 3136FPPQ4 October 21, 2011
    $125,000,000   MTN    2.000% October 21, 2025 3136FPPX9 October 21, 2011
    $100,000,000   MTN    1.200%  July 21, 2014   3136FPQH3 October 21, 2011
    $150,000,000   MTN    1.750% October 21, 2015 3136FPQK6 October 21, 2011
    $140,000,000   MTN    1.000% October 21, 2022 3136FPQM2 October 21, 2011
     $50,000,000   MTN    1.000% October 21, 2015 3136FPQU4 October 21, 2011
     $50,000,000   MTN    1.000% October 21, 2025 3136FPRD1 October 21, 2011
    $100,000,000   MTN    2.000% October 21, 2016 3136FPRY5 October 21, 2011
    $250,000,000   MTN    0.650% October 21, 2013 3136FPSE8 October 21, 2011
     $60,000,000   MTN    0.850% October 21, 2013 3136FPTK3 October 21, 2011
     $50,000,000   MTN    2.000% October 21, 2016 3136FRFK4 October 21, 2011
     $50,000,000   MTN    1.650%  April 21, 2014  3136FRHG1 October 21, 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 of Fannie Mae, +1-202-752-5403