Fannie Mae Prices Scheduled Oct. 2002 Benchmark Notes—R— and Benchmark Bonds—R—

Business Wire, Oct 24, 2002

Business Editors

WASHINGTON--(BUSINESS WIRE)--Oct. 24, 2002

Fannie Mae (NYSE:FNM):

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                      3-Year                   30-Year Reopening
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Pricing Date       Oct. 24, 2002               Oct. 24, 2002
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Settlement Date    Oct. 28, 2002               Oct. 28, 2002
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Original Term      3 years                     30 years
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Maturity Date      Oct. 15, 2005               Nov. 15, 2030
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Previous
 Outstanding Size   N/A                         $4.25 billion USD
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Reopening Amount   N/A                         $250 million USD
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Issue Size         $5.0 billion USD            $4.50 billion USD
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Payment Dates      Each April 15th and         Each May 15th and
                   Oct. 15th, beginning        Nov. 15th, beginning
                   April 15, 2003              Nov. 15, 2002
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Coupon             2.875%                      6.625%
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Price              99.913                      109.703
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Yield              2.906%                      5.912%
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Spread              74.5 basis points/          71 basis points/
                   2.125% 10/04                5.202% 02/31
                   U.S. Treasury               U.S. Treasury
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CUSIP              31359MP74                   31359MGK3
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Listing            Luxembourg Stock            Luxembourg Stock
                   Exchange                    Exchange
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Bear, Stearns & Co. Inc., Deutsche Bank Securities Inc., and Goldman, Sachs & Co. are the joint lead managers. The co-managers include Countrywide Securities, Credit Suisse First Boston Corporation, HSBC Securities, J.P. Morgan Securities Inc., Lehman Brothers Inc., Merrill Lynch & Co. Inc., Morgan Stanley & Co., Salomon Smith Barney Inc., and UBS Warburg, LLC. There is a designated selling group comprised of 12 additional dealers. There are no co-managers or selling group members for the 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 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."