Fannie Mae Prices $2.5 Billion Reopening of the 6.625% 10-Year Benchmark Notes—R— Due November 15, 2010, and $500 Million Reopening of the 6.625% 30-year Benchmark Bonds—SM— Due November 15, 2030

Business Wire, Jan 18, 2001

Business Editors

WASHINGTON--(BUSINESS WIRE)--Jan. 18, 2001

10 Year

Settlement Date:            January 22, 2001 (with accrued interest)

Original Settlement Date:   November 1, 2000

Original Term:              10 years

Maturity Date:              November 15, 2010

Total Outstanding Size:     $7.5 Billion USD

Reopening Amount:           $2.5 billion USD

Payment Dates:              Each May 15th and November 15th, beginning
                            May 15, 2001

Pricing Date:               January 18, 2001

Price:                      105.199

Interest Rate:              6.625%

Yield:                      5.917%

Spread:                      74 basis points/5.75% 8/10 U.S. Treasury

CUSIP:                      31359MGJ6

Listing:                    Luxembourg Stock Exchange


30 Year

Settlement Date:            January 22, 2001 (with accrued interest)

Original Settlement Date:   November 1, 2000

Original Term:              30 years

Maturity Date:              November 15, 2030

Total Outstanding Size:     $2.5 Billion USD

Reopening Amount:           $500 million USD

Payment Dates:              Each May 15th and November 15th, beginning
                            May 15, 2001

Pricing Date:               January 18, 2001

Price:                      105.517

Interest Rate:              6.625%

Yield:                      6.215%

Spread:                      68 basis points/6.25% 5/30 U.S. Treasury

CUSIP:                      31359MGK3

Listing:                    Luxembourg Stock Exchange

J.P. Morgan Securities Inc., Lehman Brothers Inc., and Merrill Lynch & Co. Inc., are the joint lead managers. The co-managers include Bear, Stearns & Co. Inc.; Credit Suisse First Boston; Deutsche Bank Securities Inc.; First Tennessee Bank National Association; Goldman, Sachs & Co.; Morgan Stanley & Co., and Salomon Smith Barney Inc.

There is a designated selling group comprised of an additional 13 dealers for the 10-year Benchmark Notes reopening. There is no designated selling group for the 30-year Benchmark Bonds reopening.

Fannie Mae's Universal Debt Facility Offering Circular is used for all of our debt securities settling upon original issuance on or after January 3, 2000. This offering document may be accessed via Fannie Mae's Web site at http:/www.fanniemae.com/markets/det/offering_circulars.html.

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages.

Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided $3.0 trillion of mortgage financing for over 37 million families.

More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

Benchmark Notes is a registered mark and Benchmark Bonds is a service mark of Fannie Mae. Unauthorized use of these marks are prohibited.

Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."