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WASHINGTON, Sept. 30 /PRNewswire-AsiaNet/ –

Fannie Mae 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

$25,000,000 MTN 3.250% April 11, 3136F62H1 October 11,
2006 2005
$100,000,000 MTN 4.450% October 12, 3136F62C2 October 12,
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

First Call Analyst:

FCMN Contact:

Company News On-Call:
http://www.prnewswire.com/comp/305450.html

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

(FNM)

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