WASHINGTON, Oct. 6 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) will
redeem the principal amount indicated for the following securities issue on
the redemption date 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
       Amount      Type     Rate     Maturity Date    CUSIP   Redemption Date
    $100,000,000   MTN     4.000%    July 16, 2010  3136F9XR9 October 16, 2008
    $100,000,000   MTN     5.300%  October 16, 2012 3136F8TW5 October 16, 2008
    $100,000,000   MTN     5.000%    July 16, 2013  3136F9XQ1 October 16, 2008

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. In 2008, we mark our 70th year of service to America's housing market. 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