WASHINGTON, September 3, 2010 /PRNewswire/ --

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

    US$2,893,000      FINP    5.650%  September 14,  3135A04Y2  September 14,
                                          2022                      2010
    US$50,000,000     MTN     6.125%  September 14,  3136F7Z34  September 14,
                                          2026                      2010
    US$100,000,000    MTN     3.000%  June 14, 2022  3136FMXL3  September 14,
                                                                    2010
    US$250,000,000    MTN     1.700%  June 14, 2013  3136FMZJ6  September 14,
                                                                    2010    
    US$25,000,000     MTN     1.750%  March 15, 2012 3136FJBL4  September 15,
                                                                    2010
    US$20,000,000     MTN     3.000%  December 15,   3136FJUH2  September 15,
                                          2016                      2010
    US$50,000,000     MTN     2.250%  December 15,   3136FJUM1  September 15,
                                          2014                      2010
    US$100,000,000    MTN     1.350%  June 15, 2012  3136FMCA0  September 15,
                                                                    2010
    US$50,000,000     MTN     1.250%  March 15, 2013 3136FMCM4  September 15,
                                                                    2010
    US$50,000,000     MTN     1.000%  March 15, 2013 3136FMCS1  September 15,
                                                                    2010
    US$100,000,000    MTN     1.200%  June 15, 2012  3136FMWF7  September 15,
                                                                    2010
    US$250,000,000    MTN     1.800%  March 15, 2013 31398AJ52  September 15,
                                                                    2010
    US$250,000,000    MTN     3.000%  September 15,  31398AZC9  September 15,
                                          2014                      2010
    US$30,000,000     MTN     4.250%  September 16,  3136FHDX0  September 16,
                                          2016                      2010
    US$25,000,000     MTNR    5.250%  September 16,  3136FJAH4  September 16,
                                          2024                      2010
    US$25,000,000     MTNR    5.000%  September 16,  3136FJAN1  September 16,
                                          2024                      2010
    US$25,000,000     MTNR    4.000%  September 16,  3136FJAW1  September 16,
                                          2024                      2010
    US$35,000,000     MTNR    4.000%  September 16,  3136FJAX9  September 16,
                                          2024                      2010
    US$25,000,000     MTN     1.550%  March 16, 2012 3136FJCL3  September 16,
                                                                    2010
    US$40,000,000     MTN     3.000%  December 16,   3136FJUD1  September 16,
                                          2024                      2010
    US$25,000,000     MTNR    3.500%  December 16,   3136FJUK5  September 16,
                                          2024                      2010
    US$55,000,000     MTNR    2.000%  December 16,   3136FJUW9  September 16,
                                          2016                      2010
    US$25,000,000     MTN     2.050%  December 16,   3136FJXD8  September 16,
                                          2014                      2010
    US$50,000,000     MTN     1.750%  March 16, 2015 3136FMBN3  September 16,
                                                                    2010
    US$100,000,000    MTN     1.500%  March 16, 2015 3136FMBU7  September 16,
                                                                    2010
    US$100,000,000    MTN     1.500%  March 16, 2020 3136FMCF9  September 16,
                                                                    2010
    US$50,000,000     MTN     3.000%  March 16, 2020 3136FMDN1  September 16,
                                                                    2010
    US$50,000,000     MTN     1.500%  March 16, 2015 3136FMDW1  September 16,
                                                                    2010
    US$100,000,000    MTN     1.500%  March 16, 2020 3136FMEC4  September 16,
                                                                    2010
    US$50,000,000     MTN     4.550%  June 16, 2025  3136FMWZ3  September 16,
                                                                    2010
    US$60,000,000     MTN     4.250%  June 16, 2020  3136FMXD1  September 16,
                                                                    2010
    US$1,000,000,000  MTN     2.100%  September 16,  31398AJ29  September 16,
                                          2013                      2010
    US$1,000,000,000  MTN     2.000%  December 16,   31398AU26  September 16,
                                          2013                      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.