WASHINGTON, September 20 /PRNewswire/ --

Fannie Mae (NYSE: FNM) 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:

(All amounts in USD)

    Principal   Security  Interest   Maturity      CUSIP       Redemption 
     Amount       Type      Rate       Date                       Date 

    $25,000,000   MTNR    4.000 %   December 30,  3136F5P70    September 30,
                                       2009                       2007 
    $90,000,000   MTN     3.000 %   September 30, 3136F6DW6    September 30,
                                       2009                       2007 
    $25,000,000   MTN     5.400 %    October 28,  3136F72M8     October 1, 
                                       2008                       2007 
    $25,000,000   MTN     5.460 %    January 28,  3136F72N6     October 1, 
                                       2009                       2007 
    $25,000,000   MTN     5.430 %   November 10,  3136F7A56     October 1, 
                                       2008                       2007 
    $50,000,000   MTN     5.160 %   December 30,  3136F7QK6    September 30,
                                       2008                       2007 
    $25,000,000   MTN     5.250 %    April 7,     3136F7WX1     October 1, 
                                       2008                       2007 
    $100,000,000  MTN     5.500 %   December 28,  3136F8CJ2     October 1, 
                                       2009                       2007 
    $50,000,000   MTN     5.400 %   December 29,  3136F8DG7     October 1, 
                                       2008                       2007 
    $250,000,000  MTN     6.000 %     July 3,     3136F8PR0     October 3, 
                                       2012                       2007 
    $25,000,000   MTN     4.050 %   December 30,  3136F4P81    September 30,
                                       2013                       2007 
    $25,000,000   MTNR    4.000 %     June 30,    3136F5L74    September 30,
                                       2010                       2007



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.

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