Fannie Mae (OTC Bulletin Board: FNMA) 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
                                        August 5,                 August 5,
      $100,000,000   MTN     3.200%     2014          3136FH2D6   2010
                                        August 5,                 August 5,
       $40,000,000   MTN     4.250%     2024          3136FH2L8   2010
                                        February 5,               August 5,
      $125,000,000   MTN     1.800%     2013          3136FJ2F7   2010
                                        February 5,               August 5,
       $50,000,000   MTN     2.400%     2014          3136FJ2K6   2010
                                        February 5,               August 5,
       $75,000,000   MTN     2.500%     2013          3136FJ2Z3   2010
                                        November 5,               August 5,
       $25,000,000   MTN     4.000%     2019          3136FJLK5   2010
                                        November 5,               August 5,
       $15,000,000   MTN     4.000%     2019          3136FJML2   2010
                                        November 5,               August 5,
       $50,000,000   MTN     4.500%     2019          3136FJMR9   2010
                                        November 5,               August 5,
       $25,000,000   MTNR    4.000%     2019          3136FJNH0   2010
                                        February 5,               August 5,
       $50,000,000   MTN     3.350%     2015          3136FJV24   2010
                                        February 5,               August 5,
       $50,000,000   MTN     2.750%     2015          3136FJW56   2010
                                        August 5,                 August 5,
       $50,000,000   MTN     1.500%     2013          3136FJZ38   2010
    
    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

    CONTACT: Pete Bakel of Fannie Mae, 
             +1-202-752-2034