WASHINGTON, Jan. 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 amount redeemed, plus accrued interest thereon to the date of redemption:

      Principal Security Interest  Maturity Date    CUSIP      Redemption Date
       Amount     Type    Rate
    $100,000,000   MTN   3.180%    April 28, 2010  3136F9KR3  January 28, 2009
     $35,000,000   MTN   3.630%     July 28, 2010  3136F9YX5  January 28, 2009
     $30,000,000   MTN   3.750%  October 28, 2010  3136F9L76  January 28, 2009
    $100,000,000   MTN   3.000%    April 28, 2011  3136F9HT3  January 28, 2009
     $25,000,000   MTN   4.500%  October 28, 2013  3136F9K85  January 28, 2009
    $200,000,000   MTN   4.450%  January 28, 2015  31398ALW0  January 28, 2009
    $500,000,000   MTN   5.230%  January 29, 2010  31359M4X8  January 29, 2009
     $10,000,000  MTNR   3.000%    April 29, 2011  3136F9LK7  January 29, 2009
     $25,000,000  MTNR   5.000%  October 29, 2012  3136F8UH6  January 29, 2009
     $25,000,000   MTN   4.520%  January 29, 2018  3136F8M69  January 29, 2009
    $200,000,000   MTN   4.800%  January 29, 2018  31398ALQ3  January 29, 2009

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. 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