WASHINGTON, September 11 /PRNewswire/ --

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

3-Year                                            
    Pricing Date      September 11, 2007                                
    Settlement Date   September 13, 2007                                
    Maturity Date     September 13, 2010                                
    Issue Size        US$3 billion                                        
    Coupon            4.375%
    Price             99.792 
    Yield             4.450%
    Spread            +54.5 basis points / 4.500% U.S. Treasury         
    Payment Dates     Each March 13th and September 13th, beginning March 13,
                      2008                          
    CUSIP             31398AGU0                                         
    Listing           Application will be made to list the securities on the                                 
                      EuroMTF market of the Luxembourg Stock 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 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.

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

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