Fannie Mae Redemption

WASHINGTON, December 3, 2010 - 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

                                                           December 13,
     $15,000,000   MTN  5.050%   June 13, 2018  3136F9SF1      2010
                                 September 13,             December 13,
     $50,000,000   MTN  0.500%     2013         3136FPES2      2010
                                 December 14,              December 14,
      $6,793,000   FINP 5.125%     2022         3135A1AS6      2010
                                                           December 14,
     $75,000,000   MTN  1.000%   June 14, 2013  3136FMVW1      2010
                                                           December 14,
     $75,000,000   MTN  1.000%   June 14, 2013  3136FMXK5      2010
                                 December 15,              December 15,
     $35,000,000   MTNR 2.000%      2014        3136FJTV3      2010
                                 December 15,              December 15,
     $25,000,000   MTN  2.375%     2014         3136FJVJ7      2010
                                                           December 15,
    $102,786,000   MTN  1.500%   June 15, 2015  3136FMWC4      2010
                                                           December 15,
    $375,000,000   MTN  2.000%   June 15, 2020  3136FMXQ2      2010
                                 December 15,              December 15,
    $100,000,000   MTN  3.000%     2015         3136FMXV1      2010
                                                           December 15,
     $50,000,000   MTN  3.050%   June 15, 2020  3136FMXW9      2010
                                                           December 15,
     $50,000,000   MTN  2.000%   June 15, 2020  3136FMYB4      2010

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 the light of your circumstances and financial position.
If you are in any doubt you should consult an appropriately qualified
financial advisor.

Katherine Constantinou, Fannie Mae, +1-202-752-5403