Fannie Mae Redemption

WASHINGTON, March 18, 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    0.700%  March 28, 2013  3136FMGU2  March 28, 2011
       $20,000,000   MTN    0.700%  March 28, 2013  3136FMGX6  March 28, 2011
       $50,000,000   MTN    2.000%   June 28, 2018  3136FMYS7  March 28, 2011
      $100,000,000   MTN    1.300%  March 28, 2014  3136FPLQ8  March 28, 2011
      $325,000,000   MTN    0.875%   December 28,   31398A3V2  March 28, 2011
                                       2012
      $500,000,000   MTN    0.800%  September 28,   31398A3W0  March 28, 2011
                                       2012
       $50,000,000   MTN    3.000%  December 29,    3136FJG54  March 29, 2011
                                       2017
      $100,000,000   MTN    1.000%   June 29, 2015  3136FMD84  March 29, 2011
       $50,000,000   MTN    2.000%  December 29,    3136FMYU2  March 29, 2011
                                       2015
      $100,000,000   MTN    1.000%   June 29, 2015  3136FMZU1  March 29, 2011
       $50,000,000   MTN    3.000%   June 29, 2020  3136FMZW7  March 29, 2011
      $250,000,000   MTN    1.000%  March 29, 2013  31398AL59  March 29, 2011
       $50,000,000   MTN    2.000%  December 30,    3136FJK75  March 30, 2011
                                       2014
       $50,000,000   MTN    4.000%  December 30,    3136FJK91  March 30, 2011
                                       2024
       $25,000,000   MTN    2.000%  December 30,    3136FJWP2  March 30, 2011
                                       2015
       $50,000,000   MTN    2.750%   June 30, 2015  3136FMB37  March 30, 2011
       $50,000,000   MTN    2.100%   June 30, 2014  3136FMB52  March 30, 2011
       $50,000,000   MTN    1.000%  September 30,   3136FMEP5  March 30, 2011
                                       2013
      $330,000,000   MTN    2.000%   March 30, 2015 3136FMFG4  March 30, 2011
      $190,000,000   MTN    3.250%   March 30, 2020 3136FMFJ8  March 30, 2011
      $100,000,000   MTN    3.050%  September 30,   3136FMFV1  March 30, 2011
                                       2015
       $50,000,000   MTN    2.000%   March 30, 2020 3136FMFW9  March 30, 2011
       $50,000,000   MTN    1.500%   March 30, 2015 3136FMGE8  March 30, 2011
       $50,000,000   MTN    2.000%  September 30,   3136FMHD9  March 30, 2011
                                       2013
       $75,000,000   MTN    2.125%  September 30,   3136FMHW7  March 30, 2011
                                       2013
       $50,000,000   MTN    2.000%   June 30, 2015  3136FMJ39  March 30, 2011
       $50,000,000   MTN    1.200%   March 30, 2012 3136FMJP0  March 30, 2011
      $100,000,000   MTN    2.000%  December 30,    3136FML69  March 30, 2011
                                       2015
       $50,000,000   MTN    1.000%  December 30,    3136FMN26  March 30, 2011
                                       2013
       $50,000,000   MTN    1.000%  December 30,    3136FMP32  March 30, 2011
                                       2014
       $50,000,000   MTN    2.000%   June 30, 2015  3136FMQ56  March 30, 2011
      $100,000,000   MTN    2.250%   June 30, 2015  3136FMZC1  March 30, 2011
       $75,000,000   MTN    2.050%  December 30,    3136FMZE7  March 30, 2011
                                       2015
       $50,000,000   MTN    2.125%   June 30, 2015  3136FMZT4  March 30, 2011
       $75,000,000   MTN    2.125%  December 30,    3136FMZZ0  March 30, 2011
                                       2015
      $250,000,000   MTN    1.600%  September 30,   3136FPKF3  March 30, 2011
                                       2014
       $75,000,000   MTN    0.650%  September 30,   3136FPLD7  March 30, 2011
                                       2015
      $125,000,000   MTN    1.000%  September 30,   3136FPLS4  March 30, 2011
                                       2015
    $1,050,000,000   MTN    2.000%  September 30,   31398A3S9  March 30, 2011
                                       2015
      $300,000,000   MTN    4.300%   March 30, 2020 31398AL42  March 30, 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