Press Release

Fannie Mae Announces Offering of New Issue 2-Year Benchmark Notes® Due September 24, 2012

The following is being issued by Fannie Mae (OTC:FNMA) (BULLETIN BOARD: FNMA) :

2-Year

Pricing Date August 27, 2010

Settlement

Date August 30, 2010

Maturity Date September 24, 2012

Issue Size TBD

Coupon TBD

Each September 24th and

March 24th, beginning

Payment Dates September 24, 2010

CUSIP 31398A3N0

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Application will be made to

list the securities on the

EuroMTF market of the

Listing Luxembourg Stock Exchange

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Barclays Capital Inc., Goldman Sachs & Co., and J.P. Morgan & Co. are the joint lead managers. The co-managers include, Citigroup Global Markets Inc., Jefferies & Co., Loop Capital Markets, Mischler Financial Group, Morgan Stanley & Co., and Vining Sparks IBG, L.P.

Fannie Mae exists 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 enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. 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.