Fannie Mae Redemption

WASHINGTON, October 11, 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 US dollars unless otherwise stated.)

       Principal   Security Interest                              Redemption
        Amount       Type     Rate     Maturity Date     CUSIP       Date
                                                                  October 22,
       $35,470,000   FINP    5.350%  February 12, 2038 3135A1DA2     2010
                                                                  October 22,
       $17,533,000   FINP    5.350%   March 26, 2038   3135A1ER4     2010
                                                                  October 22,
        $7,871,000   FINP    5.350%    April 9, 2038   3135A1FC6     2010
                                                                  October 22,
       $15,000,000   MTNR    3.000%  January 22, 2024  3136F93M3     2010
                                                                  October 22,
       $25,000,000   MTNR    4.000%  October 22, 2021  3136FJGH8     2010
                                                                  October 22,
       $75,000,000   MTN     2.500%  October 22, 2013  3136FJGM7     2010
                                                                  October 22,
      $100,000,000   MTNR    2.000%  October 22, 2019  3136FJGS4     2010
                                                                  October 22,
      $150,000,000   MTN     5.125%  October 22, 2029  3136FJHQ7     2010
                                                                  October 22,
       $50,000,000   MTN     4.000%   April 22, 2020   3136FMKD5     2010
                                                                  October 22,
       $75,000,000   MTN     4.000%   April 22, 2022   3136FMKK9     2010
                                                                  October 22,
       $50,000,000   MTNR    3.250%   April 22, 2020   3136FMKY9     2010
                                                                  October 22,
       $50,000,000   MTN     2.250%   April 22, 2015   3136FMLH5     2010
                                                                  October 22,
       $50,000,000   MTNR    3.100%   April 22, 2020   3136FMLW2     2010
                                                                  October 22,
      $100,000,000   MTN     4.000%    July 22, 2020   3136FMM27     2010
                                                                  October 22,
      $125,000,000   MTNR    3.050%   April 22, 2020   3136FMMF8     2010
                                                                  October 22,
       $50,000,000   MTN     4.000%   April 22, 2020   3136FMMT8     2010
                                                                  October 22,
      $100,000,000   MTN     1.980%    July 22, 2014   3136FMT79     2010
                                                                  October 22,
      $125,000,000   MTN     2.000%    July 22, 2014   3136FMU28     2010
                                                                  October 22,
      $450,000,000   MTN     2.000%   April 22, 2013   31398AL91     2010
                                                                  October 22,
      $250,000,000   MTN     2.450%   April 22, 2014   31398AQ39     2010
                                                                  October 22,
    $1,000,000,000   MTN     1.405%    July 22, 2013   31398AW81     2010
                                                                  October 22,
    $1,000,000,000   MTN     1.350%    July 22, 2013   31398AX23     2010
                                                                  October 26,
      $500,000,000   MTN     1.550%    July 26, 2013   31398AX98     2010
                                                                  October 26,
      $500,000,000   MTN     1.500%    July 26, 2013   31398AY22     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