Fannie Mae Redemption

WASHINGTON, October 28, 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 Date     CUSIP   Redemption Date
        Amount      Type    Rate
    $1,000,000,000  MTN    0.875% November 8, 2013 31398A5Q1 November 8, 2011
       $75,000,000  MTN    3.000%  August 9, 2018  3136FM3K8 November 9, 2011
       $50,000,000  MTN    2.000%  August 9, 2016  3136FM4E1 November 9, 2011
       $50,000,000  MTN    1.000% November 9, 2015 3136FPSX6 November 9, 2011
       $75,000,000  MTN    0.900% November 9, 2015 3136FPUT2 November 9, 2011
       $50,000,000  MTN    1.690% November 9, 2015 3136FPVX2 November 9, 2011
       $50,000,000  MTN    2.000% November 9, 2016 3136FPWB9 November 9, 2011
      $500,000,000  MTN    1.625% November 9, 2015 31398A5J7 November 9, 2011
    $1,000,000,000  MTN    0.625% November 9, 2012 31398A5V0 November 9, 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