Fannie Mae Redemption

WASHINGTON, June 29 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) will
redeem the principal amount indicated for the following securities issue on
the redemption date 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 5.000% July 9, 2018 3136F3H82 July 9, 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

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