Fannie Mae Redemption

WASHINGTON, May 27, 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
        $1,486,000   FINP   5.000%   June 6, 2023   3135A1HG5   June 6, 2011
    $1,000,000,000   MTN    0.750%    December 6,   31398A6N7   June 6, 2011
                                        2012
      $250,000,000   MTN    1.000%   June 7, 2013   3136FPE29   June 7, 2011
       $50,000,000   MTN    0.500%   September 7,   3136FPFC6   June 7, 2011
                                        2012
      $250,000,000   MTN    5.945%   June 7, 2027   31398ACN0   June 7, 2011
       $50,000,000   MTN    3.000%    December 8,   3136FMTV6   June 8, 2011
                                        2015
      $100,000,000   MTN    2.000%   June 8, 2015   3136FMUM4   June 8, 2011
       $50,000,000   MTN    2.500%    December 8,   3136FPA64   June 8, 2011
                                        2017
       $75,000,000   MTN    1.000%   September 8,   3136FPDP9   June 8, 2011
                                        2014
       $50,000,000   MTN    5.500%   June 9, 2033   31359MRX3   June 9, 2011
       $30,000,000   MTN    1.750%    December 9,   3136FJXK2   June 9, 2011
                                        2014
      $100,000,000   MTN    4.000%   June 9, 2025   3136FMUS1   June 9, 2011
      $100,000,000   MTN    2.000%   June 9, 2025   3136FMYT5   June 9, 2011
       $65,000,000   MTN    3.800%   September 9,   3136FPHR1   June 9, 2011
                                        2020
       $50,000,000   MTN    1.900%   June 9, 2015   3136FPN52   June 9, 2011
      $500,000,000   MTN    1.100%    December 9,   31398A6U1   June 9, 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 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