WASHINGTON (Map) - WASHINGTON, May 16 /PRNewswire-FirstCall/ -- 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 Date     CUSIP   Redemption Date
       Amount      Type     Rate
      $7,913,000   FINP    4.750%     May 27, 2011     3135A0W47  May 27, 2008
      $2,746,000   FINP    5.000%     May 28, 2010     3135A0W21  May 28, 2008
     $40,000,000   MTN     3.150%     May 27, 2009     3136F3VE3  May 27, 2008
     $25,000,000   MTN     4.000%   February 27, 2013  3136F84P7  May 27, 2008
     $30,000,000   MTN     4.000%   February 27, 2013  3136F84R3  May 27, 2008
    $223,430,000   MTN     5.125%     May 27, 2015     31359MC43  May 27, 2008
     $75,000,000   MTN     3.210%   November 28, 2008  3136F3VD5  May 28, 2008
    $118,805,000   MTN     3.350%   November 28, 2008  3136F3UN4  May 28, 2008
     $25,000,000   MTN     4.070%   February 28, 2013  3136F85M3  May 28, 2008
     $25,000,000   MTN     4.100%   February 28, 2013  3136F85S0  May 28, 2008
     $25,000,000   MTN     4.150%   February 28, 2013  3136F86L4  May 28, 2008
    $100,000,000   MTN     6.125%   February 28, 2022  3136F8FT7  May 28, 2008

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 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.