Fannie Mae Redemption

WASHINGTON, October 18, 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

                                        April 28,               October 28,
       US$25,000,000   MTN     2.000%     2016      3136FHKU8      2010
                                      December 28,              October 28,
       US$25,000,000   MTN     1.250%     2011      3136FJHP9      2010
                                       October 28,              October 28,
       US$15,000,000   MTNR    4.750%     2024      3136FJHU8      2010
                                      December 28,              October 28,
       US$25,000,000   MTN     2.000%     2012      3136FJHX2      2010
                                       October 28,              October 28,
       US$50,000,000   MTN     3.000%     2014      3136FJJC6      2010
                                        April 28,               October 28,
       US$25,000,000   MTN     2.650%     2014      3136FJKH3      2010
                                       October 28,              October 28,
       US$10,000,000   MTN     4.400%     2019      3136FJLB5      2010
                                       October 28,              October 28,
       US$50,000,000   MTN     3.125%     2024      3136FJLQ2      2010
                                        April 28,               October 28,
       US$15,000,000   MTN     4.500%     2023      3136FJLW9      2010
                                       October 28,              October 28,
       US$10,000,000   MTN     4.050%     2022      3136FJLY5      2010
                                       October 28,              October 28,
       US$15,000,000   MTN     3.000%     2021      3136FJMD0      2010
                                       October 28,              October 28,
       US$50,000,000   MTN     3.100%     2024      3136FJMH1      2010
                                         July 28,               October 28,
       US$50,000,000   MTN     1.000%     2014      3136FM4H4      2010
                                         July 28,               October 28,
       US$75,000,000   MTN     2.100%     2015      3136FM5C4      2010
                                        April 28,               October 28,
       US$50,000,000   MTN     2.375%     2016      3136FM5N0      2010
                                        April 28,               October 28,
       US$50,000,000   MTN     4.000%     2025      3136FMLN2      2010
                                        April 28,               October 28,
       US$50,000,000   MTN     3.125%     2017      3136FMMP6      2010
                                        April 28,               October 28,
       US$50,000,000   MTN     3.000%     2020      3136FMNL4      2010
                                         May 28,                October 28,
      US$163,000,000   MTN     2.950%     2015      3136FMQC1      2010
                                        April 28,               October 28,
       US$50,000,000   MTN     3.000%     2017      3136FMQT4      2010
                                        April 28,               October 28,
       US$50,000,000   MTN     3.000%     2015      3136FMQY3      2010
                                        April 28,               October 28,
       US$50,000,000   MTN     2.500%     2015      3136FMRD8      2010
                                       January 28,              October 28,
    US$1,350,000,000   MTN     2.000%     2015      31398A2B7      2010
                                       October 28,              October 28,
      US$250,000,000   MTN     2.850%     2014      31398AR53      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 of Fannie Mae, +1-202-752-5403