Asia PR News

WASHINGTON, May 26 /PRNewswire-AsiaNet/ –

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

5-Year
Pricing Date May 26, 2005
Settlement Date May 27, 2005
Maturity Date May 15, 2010
Issue Size US$3.0 billion
Coupon 4.125 %
Price 99.961
Yield 4.134 %
Spread +31 basis points/4.125% 05/15/15 U.S. Treasury
Payment Dates Each November 15th and May 15th, beginning
November 15, 2005
CUSIP 31359MC92
Listing Luxembourg Stock Exchange

Lehman Brothers Inc., Merrill Lynch & Co. Inc., and UBS Investment Bank are
the joint lead managers. The co-managers include Citigroup Global Markets Inc.,
Deutsche Bank Securities Inc., FTN Financial Capital Markets, Goldman, Sachs &
Co., Morgan Stanley & Co., and Williams Capital Group, LP. There is a
designated selling group comprised of 8 additional dealers.

Fannie Mae is a New York Stock Exchange Company. It operates pursuant to a
federal charter. 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.
More information about Fannie Mae can be found on the Internet at
http://www.fanniemae.com

Fannie Mae voluntarily registered its common stock with the Securities and
Exchange Commission (SEC) under Section 12(g) of the Securities Exchange Act of
1934, on March 31, 2003.

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
Offering Circular dated January 19, 2004, 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.

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

(FNM)