Fannie Mae Redemption

WASHINGTON, February 1, 2011 /PRNewswire/ --

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
     $25,000,000    MTN     4.000%  February 11,  3136F8P41  February 11,
                                       2015                    2011
     $75,000,000    MTNR    4.125%  February 11,  3136F8U78  February 11,
                                       2015                    2011
    $100,000,000    MTN     4.020%  February 11,  3136F8Y74  February 11,
                                       2015                    2011
     $57,000,000    MTN     2.250%  February 11,  3136FJ2U4  February 11,
                                       2015                    2011
     $20,000,000    MTN     0.750%  February 11,  3136FJ3C3  February 11,
                                       2013                    2011
    $200,000,000    MTN     1.000%  February 11,  3136FJ3M1  February 11,
                                       2013                    2011
    $100,000,000    MTN     1.000%  February 11,  3136FM4N1  February 11,
                                       2013                    2011

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.