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WASHINGTON, D.C., May 27 /PRNewswire-AsiaNet/ –

Fannie Mae (NYSE: FNM) will redeem the principal amount indicated of the
following securities issues 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

$125,000,000 MTN 4.000% December 7, 3136F5B59 June 7,
2007 2005

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.

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)

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