Fannie Mae Redemption

WASHINGTON, May 20 /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 amounts redeemed, plus accrued interest thereon to
the date of redemption:
Principal Security Interest Maturity Date CUSIP Redemption Date
Amount Type Rate
$50,000,000 MTN 4.300% November 30, 2009 3136F6PN3 May 30, 2008
$50,000,000 MTN 6.000% May 30, 2013 3136F7A98 May 30, 2008
$50,000,000 MTN 6.250% November 30, 2020 3136F7MU8 May 30, 2008

Fannie Mae is a shareholder-owned company with a public mission. We exist
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 ensure that mortgage
bankers and other lenders have enough funds to lend to home buyers at low
rates. In 2008, we mark our 70th year of service to America's housing market.
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

Latressa Cox of Fannie Mae, +1-202-752-6707