Fannie Mae Redemption

WASHINGTON, October 19, 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:

    (All amounts in U.S. dollars unless otherwise noted)

       Principal  Security Interest  Maturity Date     CUSIP     Redemption
        Amount       Type    Rate                                   Date
       $50,000,000   MTN   5.380%  October 29, 2015  3136F8UP8   October 29,
                                                                    2010
       $15,000,000   MTN   5.210%  October 29, 2015  3136F8UZ6   October 29,
                                                                    2010
       $10,000,000   MTN   3.640%  October 29, 2012  3136F9LA9   October 29,
                                                                    2010
       $25,000,000   MTN   1.500%  October 29, 2012  3136FHLE3   October 29,
                                                                    2010
       $50,000,000   MTN   2.250%  October 29, 2012  3136FHMA0   October 29,
                                                                    2010
       $25,000,000   MTN   1.125%  October 29, 2012  3136FHW35   October 29,
                                                                    2010
       $75,000,000   MTN   3.000%  October 29, 2014  3136FJGX3   October 29,
                                                                    2010
       $25,000,000   MTN   3.250%  October 29, 2015  3136FJGY1   October 29,
                                                                    2010
      $170,000,000   MTN   2.100%   April 29, 2013   3136FJHS3   October 29,
                                                                    2010
       $50,000,000   MTN   4.000%  October 29, 2024  3136FJJS1   October 29,
                                                                    2010
       $75,000,000   MTN   5.300%  October 29, 2029  3136FJKE0   October 29,
                                                                    2010
       $40,000,000   MTN   3.200%  October 29, 2015  3136FJKM2   October 29,
                                                                    2010
       $25,000,000   MTNR  5.000%  October 29, 2029  3136FJKN0   October 29,
                                                                    2010
       $50,000,000   MTNR  4.300%  October 29, 2019  3136FJMQ1   October 29,
                                                                    2010
       $15,000,000   MTN   1.500%  October 29, 2013  3136FJNC1   October 29,
                                                                    2010
      $100,000,000   MTN   2.000%   April 29, 2013   3136FJX63   October 29,
                                                                    2010
       $50,000,000   MTN   2.350%  January 29, 2016  3136FM4J0   October 29,
                                                                    2010
       $75,000,000   MTNR  4.000%   April 29, 2020   3136FMLR3   October 29,
                                                                    2010
       $50,000,000   MTN   3.000%  October 29, 2015  3136FMLT9   October 29,
                                                                    2010
       $50,000,000   MTN   4.000%   April 29, 2025   3136FMLY8   October 29,
                                                                    2010
      $150,000,000   MTNR  2.000%   April 29, 2020   3136FMMG6   October 29,
                                                                    2010
       $50,000,000   MTN   4.000%   April 29, 2025   3136FMMN1   October 29,
                                                                    2010
       $50,000,000   MTN   2.500%  October 29, 2015  3136FMMU5   October 29,
                                                                    2010
       $50,000,000   MTN   2.625%   April 29, 2015   3136FMNA8   October 29,
                                                                    2010
       $50,000,000   MTN   4.500%   April 29, 2025   3136FMNE0   October 29,
                                                                    2010
       $50,000,000   MTN   4.125%   April 29, 2025   3136FMNF7   October 29,
                                                                    2010
      $100,000,000   MTN   2.125%   July 29, 2013    3136FMNG5   October 29,
                                                                    2010
       $50,000,000   MTN   3.100%  October 29, 2015  3136FMNM2   October 29,
                                                                    2010
       $50,000,000   MTN   2.250%   April 29, 2020   3136FMNN0   October 29,
                                                                    2010
       $50,000,000   MTNR  3.250%  October 29, 2018  3136FMNT7   October 29,
                                                                    2010
      $155,000,000   MTN   3.000%   April 29, 2020   3136FMNV2   October 29,
                                                                    2010
       $75,000,000   MTN   1.550%   April 29, 2015   3136FMNY6   October 29,
                                                                    2010
      $125,000,000   MTN   3.000%  October 29, 2015  3136FMPL2   October 29,
                                                                    2010
       $50,000,000   MTN   2.250%   April 29, 2016   3136FMPP3   October 29,
                                                                    2010
       $75,000,000   MTN   2.000%   April 29, 2015   3136FMPR9   October 29,
                                                                    2010
       $50,000,000   MTN   3.000%   April 29, 2022   3136FMQE7   October 29,
                                                                    2010
       $50,000,000   MTN   2.250%   April 29, 2020   3136FMQJ6   October 29,
                                                                    2010
      $250,000,000   MTN   2.500%   April 29, 2014   3136FMQP2   October 29,
                                                                    2010
      $250,000,000   MTN   2.260%  October 29, 2013  31398AQ88   October 29,
                                                                    2010
      $250,000,000   MTN   1.500%   July 29, 2013    31398AX49   October 29,
                                                                    2010
      $250,000,000   MTN   1.150%  January 29, 2013  31398AY63   October 29,
                                                                    2010
      $500,000,000   MTN   1.450%   July 29, 2013    31398AZ39   October 29,
                                                                    2010
    $1,000,000,000   MTN   1.875%  October 29, 2012  31398AZQ8   October 29,
                                                                    2010
    $1,000,000,000   MTN   3.000%  October 29, 2014  31398AZS4   October 29,
                                                                    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, or Resource Center: 1-800-732-6643