WASHINGTON, September 21 /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:

Principal     Security  Interest  Maturity      CUSIP    Redemption Date
    Amount          Type     Rate       Date

    US$25,000,000    MTN     5.000%    March 6,    3136F7UQ8   October 1,
                                        2008                     2007
    US$34,393,000   FINS     3.000%   August 12,   3136F55M9   October 1,
                                        2008                     2007
    US$18,542,000   FINS     3.000%    June 17,    3136F5L90   October 1,
                                        2009                     2007
    US$10,000,000   MTNR     5.500%   April 6,     3136F7WL7   October 1,
                                        2010                     2007
    US$25,000,000   MTNR     4.000%  September 30, 3136F6DV8   October 1,
                                        2016                     2007
    US$200,000,000   MTN     5.500%   October 2,   31359MX99   October 2,
                                        2008                     2007
    US$50,000,000    MTN     5.375%   January 2,   3136F8DB8   October 2,
                                        2009                     2007
    US$250,000,000   MTN     5.375%   April 3,     31359MK85   October 3,
                                        2008                     2007
    US$1,000,000,000 MTN     5.125%   October 3,   31359MY64   October 3,
                                        2008                     2007
    US$250,000,000   MTN     5.500%   October 3,   31359MY56   October 3,
                                        2013                     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