WASHINGTON, Oct. 10 /PRNewswire-FirstCall/ -- Fannie Mae (NYSE: FNM) will redeem the principal amount indicated for the following securities issue on the redemption date indicated below at a redemption price equal to 100 percent of the principal amount redeemed, plus accrued interest thereon to the date of redemption:

      Principal Security Interest  Maturity Date      CUSIP    Redemption Date
        Amount     Type     Rate
     $40,000,000   MTN     4.050%  January 21, 2011  3136F9YK3  October 21,
                                                                  2008
    $250,000,000   MTN     4.710%  October 22, 2009  31398AHQ8  October 22
                                                                  2008
     $50,000,000   MTN     5.125%  April 22, 2011    3136F8UD5  October 22,
                                                                  2008
     $50,000,000   MTN     5.150%  October 22, 2012  3136F8UJ2  October 22,
                                                                  2008
    $250,000,000   MTN     5.375%  October 22, 2012  31398AHY1  October 22,
                                                                  2008
     $50,000,000   MTN     5.160%  October 23, 2009  3136F74F1  October 23,
                                                                  2008
     $25,000,000   MTN     3.170%  April 23, 2010    3136F9MB6  October 23,
                                                                  2008
     $25,000,000   MTN     3.270%  April 23, 2010    3136F9MH3  October 23,
                                                                  2008

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. 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.

SOURCE Fannie Mae