WASHINGTON, Jan. 12 /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
     $50,000,000  MTN  3.550%      June 17, 2010  3136F3YR1  January 22, 2009
     $25,000,000  MTN  4.250%      July 22, 2011  3136F8C86  January 22, 2009
    $150,000,000  MTN  4.150% September 12, 2011  3136F9E82  January 22, 2009
     $35,000,000  MTN  4.375%    October 7, 2011  3136F9J87  January 22, 2009
     $50,000,000  MTN  4.250%  December 23, 2011  3136F3WP7  January 22, 2009
    $120,000,000  MTN  4.125%   January 30, 2012  3136F3A48  January 22, 2009
     $25,000,000  MTN  4.125%      July 22, 2013  3136F8K38  January 22, 2009
    $200,000,000  MTN  4.790%   January 22, 2018  31398ALR1  January 22, 2009
    $200,000,000  MTN  4.830%   January 22, 2018  31398ALV2  January 22, 2009
    $100,000,000  MTN  7.180%   January 24, 2017  31359M3P6  January 24, 2009
    $150,000,000  MTN  6.270%   January 24, 2023  31398ALZ3  January 24, 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