Press Release

Fannie Mae Prices New Issue 3-Year Benchmark Notes(r) due May 7, 2013

The following is being issued by Fannie Mae (NYSE:FNM) :

3-Year

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Pricing Date March 11, 2010

Settlement Date March 15, 2010

Maturity Date May 7, 2013

Issue Size $6 billion

Coupon 1.750%

Price 99.839

Yield 1.803%

Payment Dates Each May 7th and November 7th, beginning May 7, 2010

Spread +31 basis points /1.375% 03/15/13 U.S. Treasury

CUSIP 31398AJ94

Listing Application will be made to list the securities on

the EuroMTF market of the Luxembourg Stock Exchange

Barclays Capital Inc., Deutsche Bank Securities Inc., and J.P. Morgan & Co. are the joint lead managers. The co-managers include, Banc of America Securities, CastleOak Securities, L.P., FTN Financial Capital Markets, RBC Capital Markets, UBS Securities LLC, and Williams Capital Group LP.

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 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.

Benchmark Notes is a registered mark of Fannie Mae. Unauthorized use of this mark is prohibited.