Fannie Mae Redemption

WASHINGTON, March 11, 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     5.350%  March 21, 2023 3136F9CQ4  March 21, 2011
     $50,000,000   MTN     4.000%  March 21, 2018 3136FMF25  March 21, 2011
    $200,000,000   MTN     0.900%    December 21, 3136FPV53  March 21, 2011
                                      2012
    $100,000,000   MTN     2.500%  March 23, 2012 3136FHDR3  March 23, 2011
    $183,880,000   MTN     0.000%  March 23, 2039 3136FHET8  March 23, 2011
    $250,000,000   MTN     2.375%  March 23, 2012 3136FHEV3  March 23, 2011
     $20,000,000   MTN     4.500%    December 23, 3136FHFG5  March 23, 2011
                                      2016
     $50,000,000   MTN     2.375%  March 23, 2012 3136FHFY6  March 23, 2011
     $15,000,000   MTN     3.250%    December 23, 3136FHGA7  March 23, 2011
                                      2014
     $50,000,000   MTN     3.750%  March 23, 2020 3136FMDL5  March 23, 2011
     $75,000,000   MTN     2.250%    December 23, 3136FMWP5  March 23, 2011
                                      2015
    $125,000,000   MTN     2.000%  June 23, 2020  3136FMXB5  March 23, 2011
     $50,000,000   MTN     2.500%  June 23, 2020  3136FMXX7  March 23, 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