Fannie Mae Redemption

WASHINGTON, December 14, 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                Redemption
    Amount         Type     Rate         Date        CUSIP        Date
                                     December 24,             December 24,
    $25,000,000     MTN    2.300%        2012      3136F92L6      2010
                                     December 24,             December 24,
    $15,000,000     MTN    2.000%        2012      3136F92U6      2010
                                    September 24,             December 24,
    $25,000,000     MTN    2.000%        2013      3136FJWA5      2010
                                       June 24,               December 24,
    $100,000,000    MTN    2.125%        2013      3136FJYU9      2010
                                       June 24,               December 24,
    $50,000,000     MTN    1.000%        2013      3136FMYW8      2010
                                       June 24,               December 24,
    $100,000,000    MTN    2.000%        2015      3136FMYX6      2010
                                       June 24,               December 24,
    $50,000,000     MTN    2.250%        2015      3136FMZP2      2010
                                     December 24,             December 24,
    $2,000,000,000  MTN    3.400%        2018      31398AUS9      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.

Todd Davenport of Fannie Mae, +1-202-752-5115