Fannie Mae Redemption

WASHINGTON, October 29, 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 noted)

       Principal   Security Interest  Maturity Date   CUSIP     Redemption
        Amount       Type     Rate                                Date
                                       November 9,              November 9,
       $19,070,000    FINP   5.500%      2022        3135A07C7    2010
                                       August 9,                November 9,
       $60,000,000    MTN    1.530%      2012        3136FJ2E0    2010
                                       November 9,              November 9,
      $150,000,000    MTN    1.570%      2012        3136FJ4G3    2010
                                       November 9,              November 9,
       $25,000,000    MTNR   5.125%      2029        3136FJLL3    2010
                                       November 9,              November 9,
       $25,000,000    MTNR   5.250%      2029        3136FJME8    2010
                                       November 9,              November 9,
       $25,000,000    MTNR   5.250%      2029        3136FJNW7    2010
                                       November 9,              November 9,
      $100,000,000    MTN    5.400%      2029        3136FJPD7    2010
                                        August 9,               November 9,
      $600,000,000    MTN    0.625%      2013        3136FM4U5    2010
                                        August 9,               November 9,
      $500,000,000    MTN    2.900%      2017        31398A2F8    2010
                                        August 10,              November 10,
      $125,000,000    MTN    0.750%      2015        3136FM4D3    2010
                                       November 10,             November 10,
       $50,000,000    MTN    2.000%      2015        3136FMPJ7    2010
                                        May 10,                 November 10,
       $50,000,000    MTN    1.330%      2012        3136FMQZ0    2010
                                        May 10,                 November 10,
      $150,000,000    MTN    1.300%      2012        3136FMRG1    2010
                                        August 10,              November 10,
      $750,000,000    MTN    2.300%      2015        31398A2E1    2010
                                       November 10,             November 10,
      $275,000,000    MTN    3.600%      2016        31398AA44    2010
                                        May 10,                 November 10,
    $1,000,000,000    MTN    2.000%      2013        31398AQ96    2010
                                        May 10,                 November 10,
      $250,000,000    MTN    1.960%      2013        31398AR95    2010
                                       November 10,             November 10,
    $1,000,000,000    MTN    3.125%      2014        31398AZY1    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, +1-202-752-5403, Resource Center: +1-800-732-6643