Fannie Mae Redemption

WASHINGTON, May 10, 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      CUSIP     Redemption
       Amount       Type      Rate        Date                     Date
     $50,000,000    MTN      3.000%   May 20, 2015  3136FMQM9  May 20, 2011
    $150,000,000    MTN      2.250%   May 20, 2020  3136FMSA3  May 20, 2011
    $100,000,000    MTN      0.000%   May 20, 2013  3136FMST2  May 20, 2011
    $250,000,000    MTN      2.020%    August 20,   31398AR87  May 20, 2011
                                          2013

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