Fannie Mae Prices New Issue 5-Year Benchmark Notes® Due September 28, 2016

WASHINGTON, August 17, 2011 /PRNewswire/ --

The following is being issued by Fannie Mae (OTC Bulletin Board: FNMA):

  
                        5-Year
    Pricing Date        August 17, 2011
    Settlement Date     August 19, 2011
    Maturity Date       September 28, 2016
    Issue Size          $4 billion
    Coupon              1.250%
    Price               99.818
    Yield               1.287%
    Payment Dates       Each September 28th and March 28th, beginning
                        September 28, 2011
    Spread              +35.5 basis points /1.500%  7/31/16 U.S. Treasury
    CUSIP               3135G0CM3
    Listing             Application will be made to list the securities on
                        the EuroMTF market of the Luxembourg Stock Exchange

Barclays Capital Inc., J.P. Morgan & Co., and UBS Securities LLC are the joint lead managers.  The co-managers include, BNP Paribas, CastleOak Securities, L.P., FTN Financial Capital Markets, Goldman Sachs & Co., and Loop Capital Markets.

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 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.

Benchmark Notes is a registered mark of Fannie Mae.  Unauthorized use of this mark is prohibited.