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Fannie Mae Announces Offering of New Issue 3-Year Benchmark Notes(R)

Distributed by Press Release

WASHINGTON (Map) - WASHINGTON, May 13 /PRNewswire-FirstCall/ -- The following is being issued by Fannie Mae (NYSE: FNM):

                       3-Year
    Pricing Date       May 15, 2008
    Settlement Date    May 19, 2008
    Maturity Date      May 19, 2011
    Issue Size         $3 billion
    Coupon             TBD
    Payment Dates      Each May 19th and November 19th, beginning November
                        19, 2008
    CUSIP              31398ARH7
    Listing            Application will be made to list the securities on the
                        EuroMTF market of the Luxembourg Stock Exchange

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., and UBS Securities LLC are the joint lead managers. The co-managers include Banc of America Securities LLC, Barclays Capital Inc., FTN Financial Capital Markets, Goldman Sachs & Co., HSBC Securities (USA) Inc., and Morgan Stanley & Co. There is a designated selling group comprised of eight 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. In 2008, we mark our 70th year of service to America's housing market. Our job is to help to 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 April 1,2008, 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.

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