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WASHINGTON, Sept. 29 /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 Date CUSIP Redemption Date
Amount Type Rate

$50,000,000 MTN 6.000% April 10, 2009 3136F7N29 October 10, 2006
$30,000,000 MTN 6.000% July 11, 2011 3136F7N94 October 11, 2006

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: Latressa Cox of Fannie Mae,
+1-202-752-6707

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

(FNM)

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