Peter Niculescu Appointed Chief Business Officer with Responsibility for Three Business Divisions

David Hisey Named Chief Financial Officer; Michael Shaw Named Chief Risk Officer

WASHINGTON, Aug. 27 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) President and Chief Executive Officer Daniel H. Mudd announced a series of senior executive appointments, effective immediately, to oversee and implement the company's recently announced capital management and credit loss reduction plan. The executives include Peter Niculescu, who has assumed the duties of Chief Business Officer, as well as the appointments of David C. Hisey as Chief Financial Officer and Michael Shaw as Chief Risk Officer.

'After setting forth our capital and credit plan August 8, we are now putting a senior management structure in place to drive this plan across the company,' Mudd said. 'This team will be responsible for meeting the dual objectives of conserving capital and controlling credit losses while Fannie Mae continues to provide crucial liquidity to the U.S. housing and mortgage markets. As we move through the bottom of this cycle, maintaining capital, managing credit and driving revenues are the priorities - and we have to organize and staff accordingly.'

The management changes today include the following actions:

-- As Executive Vice President and Chief Business Officer, Peter Niculescu will have responsibility for the oversight of the three Fannie Mae business divisions - Single-Family Mortgage Guaranty, Capital Markets and Housing and Community Development. In addition. Niculescu will oversee the implementation of the company's capital management and credit-loss reduction plan. In his previous position as Executive Vice President and head of the Capital Markets business, Niculescu was responsible for the management of the company's on- balance sheet portfolio investments including interest rate risk management, asset acquisition and funding. Before joining Fannie Mae in March 1999, Niculescu was managing director and co-head of Fixed-Income Research and Strategy for Goldman Sachs. Niculescu joined Goldman Sachs in 1990. Prior to that, he held positions in Fixed-Income Research and Portfolio Management at Salomon Brothers and Sanford C.