Fannie Mae Redemption

By Fannie Mae - Wednesday, October 21

ATTENTION EDITOR,

BUSINESS & FINANCE DESKS

WASHINGTON, Oct. 21 /PRNewswire-AsiaNet/ --

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 CUSIP Redemption Amount Type Rate Date Date ------------ ------- ------ ------------- --------- ------------- $25,000,000 MTN 2.200% July 30, 2012 3136F94W0 Oct. 30, 2009 $25,000,000 MTN 5.000% Oct. 30, 2012 3136F8UW3 Oct. 30, 2009 $100,000,000 MTN 5.000% Oct. 30, 2012 3136F8UV5 Oct. 30, 2009 $70,000,000 MTN 2.000% Jan. 30, 2014 3136F94E0 Oct. 30, 2009 $15,000,000 MTN 2.000% Jan. 30, 2014 3136F95H2 Oct. 30, 2009 $100,000,000 MTN 2.000% Jan. 30, 2014 3136F95M1 Oct. 30, 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

FOR MORE INFORMATION CONTACT:

Name:Latressa Cox of Fannie Mae Tel:+1-202-752-6707

DATE OF RELEASE:21 OCTOBER 2009 RELEASED BY BERNAMA MEDIA RELATIONS & EVENT MANAGEMENT