National Rural Signs $1 Billion Secured Note Facility With Farmer Mac

HERNDON, VA, May 27 (MARKET WIRE) --
National Rural Utilities Cooperative Finance Corporation (NYSE: NRU)
(NYSE: NRN) (NYSE: NRC) (National Rural) has signed a note purchase
agreement with the Federal Agricultural Mortgage Corporation (Farmer Mac)
and Farmer Mac Mortgage Securities Corporation, pursuant to which
National Rural will sell up to $1 billion of notes.

This is one of several transactions that National Rural has conducted with
Farmer Mac since 2005. This agreement, like the other note purchase
agreements between the parties, will be secured by eligible loans within
specific per borrower limits.

"Our partnership with Farmer Mac helps our members, America's electric
cooperatives, to fulfill their mission of service to their
member-consumers," said National Rural CEO Sheldon C. Petersen. "In the
current capital markets, Farmer Mac is demonstrating its value to rural
America."

The agreement is structured as a seven-year revolving credit facility that
allows National Rural to borrow, repay and re-borrow funds at any time or
from time to time as market conditions permit, provided that the principal
amount at any time outstanding under this facility is not more than $1
billion. National Rural may select a variable rate or fixed rate at the
time of each advance. The maturity date of any advance under this
agreement must not be later than Dec. 31, 2016, or such other date as
agreed to by the parties.

Farmer Mac is a stockholder-owned instrumentality of the United States
chartered by Congress to establish a secondary market for agricultural
real estate and rural housing mortgage loans and rural utilities loans
and to facilitate capital market funding for USDA-guaranteed farm program
and rural development loans. Additional information about Farmer Mac is
available at www.farmermac.com.

National Rural is a non-stock, member-owned finance cooperative that
serves the nation's rural utility systems, the majority of which are
electric cooperatives and their subsidiaries. With more than $20 billion
in assets, National Rural provides its member-owners with an assured
source of low-cost capital and state-of-the-art financial products and
services. By providing financing that supports reliable, affordable
electricity, National Rural helps enhance the nation's electric
infrastructure and improve the quality of life in rural America. Visit
www.nrucfc.coop for more information about National Rural.

Contacts:

Matt Rhoades
Corporate Communications
(703) 709-2112
Email Contact

Andrew Don
Investor Relations
(703) 709-6869
Email Contact

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