Fannie Mae Redemption

WASHINGTON, Aug. 27 /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
Amount Type Rate Date

$1,230,000 FINP 4.250% February 5, 3135A1KP1 September 8,
2016 2009
$2,178,000 FINP 4.000% March 4, 3135A1LH8 September 8,
2016 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