Fannie Mae Redemption

WASHINGTON, October 25, 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 specified)

     Principal    Security   Interest  Maturity    CUSIP    Redemption
       Amount       Type      Rate      Date                 Date

    $250,000,000    MTN      1.625%  May 4, 2012  3136FHNF8  November 4,
                                                              2010
    $275,000,000    MTN      0.000%  May 4, 2039  3136FHPN9  November 4,
                                                              2010
    $50,000,000     MTN      3.000%  November 4,  3136FJMZ1  November 4,
                                      2024                    2010
    $50,000,000     MTN      2.125%  August 4,    3136FM3C6  November 4,
                                      2015                    2010
    $50,000,000     MTN      2.220%  November 4,  3136FMPM0  November 4,
                                      2013                    2010
    $100,000,000    MTN      2.950%  May 4, 2015  3136FMRN6  November 4,
                                                              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.

Pete Bakel, Fannie Mae, +1-202-752-2034