Fannie Mae Redemption

WASHINGTON, October 18, 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   2.250%    July 28, 2025  3136FM2D5 October 28, 2011
     $50,000,000   MTN   3.000%  January 28, 2019 3136FMT46 October 28, 2011
     $50,000,000   MTN   2.250%    July 28, 2022  3136FMV43 October 28, 2011
     $50,000,000   MTN   2.000%    July 28, 2020  3136FMW26 October 28, 2011
    $200,000,000   MTN   1.000%  October 28, 2025 3136FPRT6 October 28, 2011
     $50,000,000   MTN   1.750%  October 28, 2015 3136FPRW9 October 28, 2011
     $94,050,000   MTN   1.000%  October 28, 2015 3136FPSS7 October 28, 2011
     $50,000,000   MTN   1.000%  October 28, 2015 3136FPTC1 October 28, 2011
     $50,000,000   MTN   1.000%  October 28, 2015 3136FPTE7 October 28, 2011
     $50,000,000   MTN   1.100%   April 28, 2016  3136FPTM9 October 28, 2011
    $125,000,000   MTN   1.000%  October 28, 2015 3136FPTY3 October 28, 2011
    $500,000,000   MTN   1.900%  October 28, 2015 31398A5N8 October 28, 2011
    $150,000,000   MTN   2.000%  October 28, 2016 3136FM4A9 October 28, 2011
     $75,000,000   MTN   1.000%  January 28, 2026 3136FP3J4 October 28, 2011
     $50,000,000   MTN   2.500%  January 28, 2021 3136FP3V7 October 28, 2011
     $50,000,000   MTN   2.250%  January 28, 2026 3136FP3Z8 October 28, 2011
     $75,000,000   MTN   4.250%  January 28, 2026 3136FP4Q7 October 28, 2011
    $100,000,000   MTN   3.000%  January 28, 2026 3136FP4T1 October 28, 2011
     $15,000,000   MTN   2.500%  January 28, 2014 3136F95L3 October 28, 2011
     $75,000,000   MTN   2.125%   April 28, 2014  3136FHKP9 October 28, 2011
     $25,000,000   MTN   2.050%   April 28, 2014  3136FHLR4 October 28, 2011
     $20,000,000   MTNR  2.000%  October 28, 2019 3136FJJP7 October 28, 2011
     $25,000,000   MTN   3.000%   April 28, 2015  3136FJLN9 October 28, 2011
     $50,000,000   MTN   2.250%  October 28, 2013 3136FMMH4 October 28, 2011
    $100,000,000   MTN   2.200%  October 28, 2013 3136FMNC4 October 28, 2011
     $50,000,000   MTN   1.000%  October 28, 2013 3136FMPX6 October 28, 2011
     $75,000,000   MTN   2.550%    July 28, 2016  3136FP4U8 October 28, 2011
     $50,000,000   MTN   1.250%     May 28, 2014  3136FPNH6 October 28, 2011
     $50,000,000   MTN   1.000%  January 28, 2014 3136FPQV2 October 28, 2011
     $50,000,000   MTN   2.000%  October 28, 2016 3136FPQX8 October 28, 2011
     $50,000,000   MTN   1.600%    July 28, 2015  3136FPRC3 October 28, 2011
     $50,000,000   MTN   0.625%  October 28, 2013 3136FPRL3 October 28, 2011
    $150,000,000   MTN   1.250%  October 28, 2014 3136FPSD0 October 28, 2011
    $100,000,000   MTN   1.600%  October 28, 2025 3136FPSM0 October 28, 2011
     $50,000,000   MTN   0.500%  October 28, 2013 3136FPTN7 October 28, 2011
     $50,000,000   MTN   0.625%   April 28, 2014  3136FPTU1 October 28, 2011
    $130,000,000   MTN   2.000%   April 28, 2017  3136FPTX5 October 28, 2011
     $50,000,000   MTN   2.500%   April 28, 2023  3136FRGB3 October 28, 2011
     $50,000,000   MTN   2.000%  October 28, 2015 3136FRHC0 October 28, 2011
     $50,000,000   MTN   2.250%   April 28, 2016  3136FRHF3 October 28, 2011
     $50,000,000   MTN   2.450%   April 28, 2023  3136FRHK2 October 28, 2011
     $60,000,000   MTN   2.000%   April 28, 2026  3136FRHW6 October 28, 2011
     $25,000,000   MTN   2.125%   April 28, 2016  3136FRHX4 October 28, 2011
     $25,000,000   MTN   2.000%   April 28, 2021  3136FRJA2 October 28, 2011
     $35,000,000   MTN   4.000%   April 28, 2026  3136FRJB0 October 28, 2011
     $25,000,000   MTN   2.250%   April 28, 2021  3136FRJD6 October 28, 2011
     $25,000,000   MTN   1.500%   April 28, 2016  3136FRJN4 October 28, 2011
    $250,000,000   MTN   1.520%  October 28, 2015 31398A4X7 October 28, 2011
    $500,000,000   MTN   1.250%  October 28, 2014 31398A5F5 October 28, 2011
    $250,000,000   MTN   1.430%   April 28, 2015  31398A5L2 October 28, 2011
    $250,000,000   MTN   0.000%   April 28, 2015  31398AP89 October 28, 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