Fannie Mae Redemption

WASHINGTON, October 17, 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 27,           October 27,
       $50,000,000   MTN      2.800%     2014    3136FJKD2     2011
                                       July 27,             October 27,
       $50,000,000   MTN      2.000%     2018    3136FM3W2     2011
                                       July 27,             October 27,
       $50,000,000   MTN      2.000%     2020    3136FM4G6     2011
                                       July 27,             October 27,
       $50,000,000   MTN      2.000%     2018    3136FM4K7     2011
                                       July 27,             October 27,
       $50,000,000   MTN      2.000%     2020    3136FMV76     2011
                                       July 27,             October 27,
       $50,000,000   MTN      2.500%     2018    3136FMY32     2011
                                      October 27,           October 27,
       $50,000,000   MTN      0.750%     2015    3136FPTJ6     2011
                                       April 27,            October 27,
       $50,000,000   MTN      1.000%     2018    3136FPUR6     2011
                                      October 27,           October 27,
       $50,000,000   MTN      2.200%     2017    3136FPVF1     2011
                                       April 27,            October 27,
       $50,000,000   MTN      2.000%     2016    3136FRFM0     2011
                                      January 27,           October 27,
      $100,000,000   MTN      1.500%     2014    3136FRGZ0     2011
                                       April 27,            October 27,
       $50,000,000   MTN      4.000%     2026    3136FRHL0     2011
                                       April 27,            October 27,
       $50,000,000   MTN      1.250%     2026    3136FRHM8     2011
                                       April 27,            October 27,
       $50,000,000   MTN      4.000%     2026    3136FRHP1     2011
                                       April 27,            October 27,
       $25,000,000   MTN      1.000%     2015    3136FRHT3     2011
                                       April 27,            October 27,
       $35,000,000   MTN      4.000%     2026    3136FRHU0     2011
                                       April 27,            October 27,
       $25,000,000   MTN      1.250%     2016    3136FRHV8     2011
                                       April 27,            October 27,
       $25,000,000   MTN      1.250%     2017    3136FRHY2     2011
                                       April 27,            October 27,
       $25,000,000   MTN      2.000%     2021    3136FRHZ9     2011
                                       April 27,            October 27,
       $50,000,000   MTN      2.000%     2023    3136FRJR5     2011
                                      October 27,           October 27,
    $1,000,000,000   MTN      1.550%     2015    31398A4Y5     2011
                                       April 27,            October 27,
      $500,000,000   MTN      1.500%     2015    31398A4Z2     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