WASHINGTON, September 7 /PRNewswire/ --

The following is being issued by Fannie Mae (NYSE: FNM):

3-Year                    5-Year (Reopening)
    Pricing Date              September 11, 2007        September 11, 2007
    Settlement Date           September 13, 2007        September 13, 2007
    Maturity Date             September 13, 2010        May 18, 2012
    Issue Size/Outstanding    US$3 billion              US$1 billion/
                                                        US$4 billion
    Coupon                    TBD                       4.875%
    Payment Dates             Each March 13th and       Each May 11th and
                              September 13th,           November 11th,
                              beginning March 13, 2007  beginning 
                                                        November 11, 2007
    CUSIP                     31398AGU0                 31398ABX9
    Listing                   Application will be       Application will be
                              made to list the          made to list the
                              securities on the         securities on the
                              EuroMTF market of the     EuroMTF market of the
                              Luxembourg Stock          Luxembourg Stock
                              Exchange                  Exchange

Barclays Capital Inc., Goldman Sachs & Co., and Morgan Stanley & Co.
Incorporated are the joint lead managers. The co-managers include Banc of
America Securities LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank
Securities Inc., HSBC Securities (USA) Inc., Lehman Brothers Inc., Merrill
Lynch Government Securities, UBS Securities LLC. There is a designated
selling group comprised of 8 additional dealers.

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. 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 Offering Circular dated March 19, 2007, 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.

Benchmark Notes is a registered mark of Fannie Mae. Unauthorized use of
this mark is prohibited.

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

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