Fannie Mae Redemption

November 6, 2009

WASHINGTON, Nov. 6 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) 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 Date
       Amount      Type   Rate
     $25,000,000   MTN   3.580% November 16, 2011 3136F9MY6 November 16, 2009
    $400,000,000   MTN   4.780% November 16, 2012 3136F8WV3 November 16, 2009
    $500,000,000   MTN   1.500% August 17, 2011   31398AYU0 November 17, 2009
    $100,000,000   MTN   3.500% November 17, 2011 3136F9P31 November 17, 2009
     $25,000,000   MTN   2.000% February 17, 2012 3136FH4Y8 November 17, 2009
    $250,000,000   MTN   5.500% November 17, 2016 31359M2C6 November 17, 2009
    $130,000,000   MTN   6.000% November 17, 2023 3136F9M42 November 17, 2009
    $200,000,000   MTN   1.000% May 18, 2011      3136FHSP1 November 18, 2009
    $100,000,000   MTN   1.125% November 18, 2011 3136FHRL1 November 18, 2009
    $100,000,000   MTN   1.250% November 18, 2011 3136FHTG0 November 18, 2009
    $150,000,000   MTN   1.750% November 18, 2011 3136FHRW7 November 18, 2009
     $50,000,000   MTN   1.750% November 18, 2011 3136FHQU2 November 18, 2009
     $25,000,000   MTN   1.500% May 18, 2012      3136FHNC5 November 18, 2009
     $30,000,000   MTN   2.250% May 18, 2012      3136FHVH5 November 18, 2009
     $25,000,000   MTN   2.625% May 18, 2012      3136FHVT9 November 18, 2009
     $10,000,000   MTN   3.500% November 18, 2013 3136F9Q22 November 18, 2009

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.

SOURCE Fannie Mae