WASHINGTON, DC -- Fannie Mae (FNM/NYSE) announced the establishment of a new Office of Community and Charitable Giving that will build on the corporation's philanthropic and housing and community development work, including significant new investments and initiatives in Washington, DC. The company also announced that Stacey D. Stewart, former President and Chief Executive Officer of the Fannie Mae Foundation, is joining the company as a Senior Vice President to head the new office.

For 2007, philanthropic grants and projects will be funded through a combination of Fannie Mae Foundation and company resources as the Foundation winds down its activities. As part of the transition, the Foundation will cease day-to-day operations as of April 30, with remaining activities winding down over the course of the year. Fannie Mae will continue to support initiatives including Help the Homeless and the annual Walkathon, which raised a record $8 million in 2006 for area organizations that are working to prevent homelessness.

Fannie Mae's Office of Community and Charitable Giving will direct its overall philanthropic support toward three key areas, including 1) Building thriving neighborhoods in the District of Columbia through investments in housing, education, homelessness, and other areas; 2) Addressing the nation's housing challenges through housing and community development initiatives; and 3) Advancing efforts to end homelessness in America. The company committed to disclosure of the names and dollar amounts of recipient organizations on its Web site and in an Annual Report.

"This effort is part of the overall reevaluation and restructuring the company is undertaking, and embraces our core principles of service, reliability and value," said Daniel H. Mudd, President and Chief Executive Officer of Fannie Mae. "By integrating our philanthropy and community investment strategies and focusing resources, people and infrastructure, we will better serve our mission, make more of an impact on a broader scale, and more fully engage our employees in a culture of service."

"As we embark on this new approach to our corporate giving, we remain committed to our mission and the communities we serve," said Stewart. "The company looks forward to partnering with non-profits and other organizations to tackle tough housing and community development challenges in our hometown and across the country."

"Fannie Mae's renewed commitment to fund key priorities in our city will help improve our schools, increase affordable housing opportunities, build stronger neighborhoods and address the challenges faced by our homeless neighbors," said Mayor Adrian M. Fenty. "I look forward to working in partnership with the company and other institutions in the District that are answering the call we've outlined in my 100-day plan to continue building Washington, DC into a world-class city."

Washington, DC

Over the past five years, Fannie Mae and the Foundation have contributed more than $100 million to organizations and initiatives in Washington, DC. Going forward, the company is committed to maintaining a philanthropic leadership role in the District. In addition to traditional funding for housing, homelessness, education and the arts, significant new contributions to the city will be made. Today the company announced:

• $10 million to improve education and school infrastructure in the city. Specifically, in 2007, this will include an initial $2 million to upgrade high school athletic facilities, support after-school activities, and provide broader community access to school athletic facilities such as tracks and playgrounds, and an initial $1.3 million to support national board certification and comparable professional development for 250 public school teachers in the city and down payment assistance of $10,000 to help these teachers become homeowners in the city.

• $1 million in grants for planning and predevelopment work to help revitalize distressed District neighborhoods. The funding will include a grant for community planning to transform the dilapidated Fletcher-Johnson School into mixed-income supportive housing for homeless and working families along with community and cultural facilities; a grant for master planning for the redevelopment of neighborhoods along the Mississippi Avenue, SE corridor; and support for Mayor Fenty's effort to centralize the city's housing function to improve delivery of housing resources.

• In addition to the funds annually raised through Help the Homeless and other funding initiatives, $500,000 to tackle homelessness in the city. This will include funding for the city and non-profit partners to implement a plan creating 2,000 units of permanent supportive housing for homeless people with special needs, and funding to develop a housing first strategy for homeless families focusing on prevention and rapid re-housing.

Housing and Community Development

Supporting the revitalization of communities across the country is a core component of the company's mission. Fannie Mae will continue to focus resources on entities and activities that are strategically working toward community improvement. Fannie Mae's work in Washington, DC and its financial support and volunteer efforts along the Gulf Coast, including New Orleans, reflects this commitment and approach to community development.

Along the Gulf Coast, Fannie Mae and the Foundation have provided a combined $9 million in grants for recovery and rebuilding efforts. The company recently erected six new playgrounds in New Orleans through a partnership with the non-profit KaBOOM! that included a $400,000 grant and 1,200 Fannie Mae employees volunteering with the community and schools to build the playgrounds in one day. And the resurgence of Treme, a historic community in New Orleans, is being supported by more than $500,000 in company grants to community groups that helped fund construction costs for some of the first new homes in the area. Through the new Office of Community and Charitable Giving, Fannie Mae will build on these efforts in 2007.

Homelessness

Fannie Mae will also build on its historic commitment to advance efforts to end homelessness in America through its intellectual capital, corporate giving and business investments, by announcing new initiatives:

• Expansion of the Help the Homeless initiative to five other major cities in addition to Washington, DC, and more cities over time, to build public awareness and support for effective strategies to prevent homelessness.

• $2 million for new grants to partners seeking to increase the supply of supportive housing and implement comprehensive solutions.

"We are excited to build upon Fannie Mae's history of giving and community development," Mudd continued. "The new approach and structure of our philanthropic efforts will create more comprehensive partnerships that better support the needs of the communities we serve and the partners with whom we work."

Information on specific grants and programs will be made available over the coming months.