Fannie Mae Redemption

WASHINGTON, May 5 /PRNewswire-FirstCall/ -- Fannie Mae will redeem the principal amounts indicated for the following securities issues on the redemption dates indicated below at a redemption price equal to 100 percent of the principal amounts redeemed, plus accrued interest thereon to the date of redemption:

    Principal  Security Interest  Maturity Date      CUSIP   Redemption Date
     Amount      Type     Rate
    $2,664,000   FINP    5.125%  October 30, 2014  3135A0S83   May 15, 2008
   $17,335,000   FINP    4.250%   June 30, 2015    3135A0JF7   May 15, 2008
  $100,000,000   MTN     5.650%    May 15, 2014    3136F8MN2   May 15, 2008
  $250,000,000   MTN     6.000%    May 15, 2017    31398AAX0   May 15, 2008
   $25,000,000   MTNR    5.000%  January 28, 2019  3136F4V27   May 15, 2008
   $20,000,000   MTN     6.810%    May 15, 2026    3136F7A31   May 15, 2008

Fannie Mae is a shareholder-owned company with a public mission. We exist 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 ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. 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.

CONTACT: Latressa Cox of Fannie Mae, +1-202-752-6707

Web site: http://www.fanniemae.com/

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