Fannie Mae Redemption

WASHINGTON, January 14, 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
        Amount       Type      Rate                                  Date

       $10,000,000   MTN      4.500%    January 24,   3136F8L78   January 24,
                                           2018                      2011
       $10,000,000   MTN      4.875%    January 24,   3136F8L86   January 24,
                                           2023                      2011
       $50,000,000   MTN      2.070%    January 24,   3136FHY25   January 24,
                                           2013                      2011
       $50,000,000   MTN      1.375%    January 25,   3136FJM40   January 25,
                                           2013                      2011
       $75,000,000   MTN      1.250%    January 25,   3136FJR45   January 25,
                                           2013                      2011
    $1,025,000,000   MTN      2.125%    January 25,   31398AD33   January 25,
                                           2013                      2011
       $25,000,000   MTNR     2.000%    January 26,   3136F93Y7   January 26,
                                           2016                      2011
       $75,000,000   MTN      1.750%    January 26,   3136FJN56   January 26,
                                           2015                      2011
       $50,000,000   MTN      2.250%    December 26,  3136FMCG7   January 26,
                                           2013                      2011
      $360,000,000   MTN      1.400%   July 26, 2013  3136FMW34   January 26,
                                                                     2011
       $75,000,000   MTN      0.500%   July 26, 2012  3136FMX58   January 26,
                                                                     2011
       $75,000,000   MTN      1.000%    October 26,   3136FMX82   January 26,
                                           2012                      2011
      $105,000,000   MTN      1.250%   April 26, 2013 3136FMY73   January 26,
                                                                     2011
      $250,000,000   MTN      1.450%   July 26, 2013  31398AX80   January 26,
                                                                     2011
       $50,000,000   MTN      4.125%    January 27,   3136FJT76   January 27,
                                           2025                      2011
       $75,000,000   MTN      4.000%    January 27,   3136FJT92   January 27,
                                           2020                      2011
       $50,000,000   MTN      1.250%    January 27,   3136FJV73   January 27,
                                           2015                      2011
       $75,000,000   MTN      1.625%    January 27,   3136FM2A1   January 27,
                                           2014                      2011
      $100,000,000   MTN      1.550%   July 27, 2012  3136FMMB7   January 27,
                                                                     2011
      $600,000,000   MTN      1.710%    January 27,   31398AY48   January 27,
                                           2014                      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 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