FANNIE MAE REDEMPTION.

(Full text of a statement. Contact details below.)

WASHINGTON, Oct 12 /PRNewswire-AsiaNet/ - Fannie Mae (NYSE:FNM) will redeem the principal amount indicated of 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   CUSIP    Redemption  Amount      Type      Rate      Date                 Date  $ 25,000,000  MTNR   3.500%   July 22,  3136F5Y21  October 22,                                 2008                  2004 $ 25,000,000  MTNR   5.000%   July 22,  3136F5Z79  October 22,                                 2014                  2004  

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages.

Fannie Mae has pledged through its "American Dream Commitment" to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most.

Since 1968, Fannie Mae has provided $6.3 trillion of mortgage financing for 63 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com

SOURCE: Fannie Mae

CONTACT: Jason Lobo of Fannie Mae,

+1-202-752-1692

Company News On-Call:

http://www.prnewswire.com/comp/305450.html

Web site: http://www.fanniemae.com

ASIA PULSE 13-10 1328