Fannie Mae Prices Scheduled December 2002 Benchmark Notes—R— and Benchmark Bonds—R—

Business Wire, Dec 19, 2002

Business Editors

WASHINGTON--(BUSINESS WIRE)--Dec. 19, 2002

Fannie Mae (NYSE:FNM):

                    2-Year                     10-Year (Reopening)
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Pricing Date        Dec. 19, 2002               Dec. 19, 2002
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Settlement Date     Dec. 23, 2002               Dec. 23, 2002
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Original Term       N/A                         10 years
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Maturity Date       Dec. 15, 2004               Sept. 15, 2012
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Previous
 Outstanding Size   N/A                         $4 billion USD
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Reopening Amount    N/A                         $2 billion USD
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Issue Size          $4 billion USD              $6 billion USD
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Payment Dates       Each June 15th and          Each March 15th and
                    Dec. 15th, Beginning        Sept. 15th, Beginning
                    June 15, 2003               March 15, 2003
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Coupon               1.875%                      4.375%
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Price                99.830                      98.523
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Yield                1.963%                      4.564%
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Spread               20.5 basis points/          54.5 basis points/
                     2.000% 11/04                4.000% 11/12
                     U.S. Treasury               U.S. Treasury
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CUSIP               31359MQJ5                   31359MPF4
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Listing             Luxembourg Stock            Luxembourg Stock
                    Exchange                    Exchange
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Morgan Stanley & Co., Salomon Smith Barney Inc., and UBS Warburg, LLC are the joint lead managers. The co-managers include Bear, Stearns & Co. Inc., Blaylock & Partners, L.P., Credit Suisse First Boston Corporation, Deutsche Bank Securities Inc., FTN Financial Capital Markets, Goldman, Sachs & Co., J.P. Morgan Securities Inc., and Lehman Brothers Inc. There is a designated selling group comprised of 11 additional dealers. There are no co-managers or selling group members for the 10-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 over $4 trillion of mortgage financing for 47 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

Benchmark Notes and Benchmark Bonds are registered marks 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."