Fannie Mae Redemption

WASHINGTON, October 15, 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 Date   CUSIP  Redemption Date
        Amount      Type      Rate
                                       October 25,              October 25,
       US$50,000,000   MTN   2.000%      2017       3136FMJQ8     2010
                                       October 26,              October 26,
       US$10,339,000  FINP   5.625%      2022       3135A06P9     2010
                                       October 26,              October 26,
      US$100,000,000   MTN   5.580%      2017       3136F8UK9     2010
                                                                October 26,
       US$50,000,000   MTN   1.600% April 26, 2012  3136FJJE2     2010
                                                                October 26,
       US$50,000,000   MTN   3.000% April 26, 2017  3136FMLP7     2010
                                                                October 26,
       US$50,000,000   MTN   0.750% April 26, 2012  3136FMLZ5     2010
                                                                October 26,
      US$250,000,000   MTN   1.350% April 26, 2012  31398AN65     2010
                                       October 26,              October 26,
      US$350,000,000   MTN   1.750%      2012       31398AN81     2010
                                                                October 26,
      US$250,000,000   MTN   2.125% April 26, 2013  31398AN99     2010
                                       October 27,              October 27,
       US$75,000,000   MTN   5.930%      2023       3136F4QC1     2010
                                       October 27,              October 27,
       US$25,000,000   MTN   3.250%      2015       3136FJHR5     2010
                                       January 27,              October 27,
       US$25,000,000   MTN   1.300%      2012       3136FJJG7     2010
                                                                October 27,
      US$125,000,000   MTN   1.700% July 27, 2012   3136FJJH5     2010
                                       October 27,              October 27,
       US$50,000,000   MTN   3.000%      2014       3136FJKF7     2010
                                       October 27,              October 27,
       US$50,000,000   MTN   4.050%      2017       3136FJMF5     2010
                                       January 27,              October 27,
       US$75,000,000   MTN   2.450%      2014       3136FJV57     2010
                                                                October 27,
       US$50,000,000   MTN   2.850% April 27, 2015  3136FMLS1     2010
                                                                October 27,
       US$50,000,000   MTN   3.125% April 27, 2015  3136FMMC5     2010
                                       October 27,              October 27,
       US$75,000,000   MTN   3.000%      2017       3136FMMK7     2010
                                                                October 27,
      US$250,000,000   MTN   4.000% April 27, 2020  3136FMMS0     2010
                                                                October 27,
       US$50,000,000   MTN   1.375% July 27, 2012   3136FMNS9     2010
                                                                October 27,
      US$250,000,000   MTN   1.250% April 27, 2012  31398AP63     2010
                                                                October 27,
      US$250,000,000   MTN   1.000% July 27, 2012   31398AW65     2010
                                       January 27,              October 27,
      US$500,000,000   MTN   2.600%      2016       31398AW99     2010
                                                                October 27,
    US$1,000,000,000   MTN   1.395% July 29, 2013   31398AX56     2010
                                                                October 27,
      US$500,000,000   MTN   0.950% July 27, 2012   31398AX72     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, +1-202-752-5403 or Resource Center: +1-800-732-6643