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Press Release

Fannie Mae Announces Dividend Rate for Preferred Stock Series P

June 27, 2008

Latressa Cox


WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced a scheduled dividend rate for its Variable Rate Non-Cumulative Preferred Stock Series P ("Series P") of 4.50 percent per annum.

The dividend rate of 4.50 percent per annum for Series P will be in effect from and including June 30, 2008, to but excluding September 30, 2008. In accordance with the terms of the Series P Certificate of Designation, the dividend will continue to accrue at a per annum rate equal to the greater of (i) 4.50 percent and (ii) the sum of 3-Month LIBOR plus 0.75 percent.

Forty million (40,000,000) shares of Series P Preferred Stock at a stated value of $25.00 per share, or an aggregate stated value of $1 billion, were issued and are currently outstanding. Going forward, Fannie Mae will announce dividend changes to Series P when the dividend rate for the quarterly dividend period is greater than 4.500 percent.

Holders of record of Series P preferred shares will be entitled to quarterly dividends when and if declared by the Board of Directors of Fannie Mae.

For more information about our Series P preferred stock, interested parties should refer to the Certificate of Designation, which is available on Fannie Mae's Web site (

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.

Fannie Mae is a shareholder-owned company with a public mission. We exist 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 ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. In 2008, we mark our 70th year of service to America's housing market. Our job is to help those who house America.