Fannie Mae Prices Scheduled $5 Billion New Issue 2-year Benchmark Notes due April 15, 2004 and $250 Million Reopening 30-year Benchmark Bonds due November 15, 2030

Business Wire, April 18, 2002

    Business Editors

      WASHINGTON--(BUSINESS WIRE)--April 18, 2002--Fannie Mae (NYSE:FNM)
-0-
*T

------------------- ----------------------- -------------------------
                    2-Year                  30-Year (reopening)
------------------- ----------------------- -------------------------
Settlement Date     April 22, 2002          April 22, 2002
------------------- ----------------------- -------------------------
Original Term       2 years                 30 years
------------------- ----------------------- -------------------------
Maturity Date       April 15, 2004          November 15, 2030
------------------- ----------------------- -------------------------
Current Outstanding N/A                     $3.75 billion USD
 Size
------------------- ----------------------- -------------------------
Issue Size          $5.0 billion USD        $4.0 billion USD
------------------- ----------------------- -------------------------
Reopening Amount    N/A                     $250 million USD
------------------- ----------------------- -------------------------
Payment Dates       Each April 15th and     Each May 15th and
                    October 15th, Beginning November 15th, Beginning
                    October 15, 2001        November 15, 2001
------------------- ----------------------- -------------------------
Pricing Date        April 18, 2002          April 18, 2002
------------------- ----------------------- -------------------------
Price               99.999                  102.357
------------------- ----------------------- -------------------------
Yield               3.626%                  6.443%
------------------- ----------------------- -------------------------
Coupon              3.625%                  6.625%
------------------- ----------------------- -------------------------
Spread               29 basis points/        71 basis points/
                    3.625% 03/04 U.S.       3.375% 02/31 U.S.
                    Treasury                Treasury
------------------- ----------------------- -------------------------
CUSIP               31359MMU4               31359MGK3
------------------- ----------------------- -------------------------
Listing             Luxembourg Stock        Luxembourg Stock
                    Exchange                Exchange
------------------- ----------------------- -------------------------

      Bear, Stearns & Co. Inc., Credit Suisse First Boston Corporation,
and Goldman, Sachs & Co. are the joint lead managers. The co-managers
include Countrywide Securities Corporation, Deutsche Bank Securities
Inc., Greenwich Capital, Lehman Brothers Inc., Merrill Lynch & Co.
Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co., Salomon Smith
Barney Inc., and UBS Warburg, LLC.
      There is a designated selling group comprised of 11 additional
dealers. There is no syndicate group for this 30-year reopening.
      Fannie Mae's Universal Debt Facility Offering Circular is used for
all of our debt securities settling upon original issuance on or after
February 1, 2002. This offering document may be accessed via Fannie
Mae's Web site at
http://www.fanniemae.com/markets/debt/debt_tools_resources/
offering_circulars.jhtml.
(Due to the length of this URL, it may be necessary to copy and paste
this hyperlink into your Internet browser's URL address field.)

      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 more than
$3.6 trillion of mortgage financing for nearly 43 million families.
      More information about Fannie Mae can be found on the Internet at
http://www.fanniemae.com.
      Benchmark Notes(R) is a registered mark and Benchmark Bonds(SM) is
a service mark of Fannie Mae. Unauthorized use of these marks is
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."

    --30--KMK/ph*

    CONTACT: Fannie Mae, Washington
             Jason Lobo, 202/752-1692

    KEYWORD: DISTRICT OF COLUMBIA
    INDUSTRY KEYWORD: BANKING REAL ESTATE
    SOURCE:  Fannie Mae