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Press Release

Fannie Mae Adjusts Dividend Rate for its Series F and Series P Preferred Stock

March 31, 2008

Jason Lobo

202-752-1692

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced scheduled dividend rate adjustments for two Series of Variable Rate Non-Cumulative Preferred Stock: Series F and P. The new rates will be 1.36 percent per annum for Series F (CUSIP 313586703) and 4.50 percent per annum for Series P (CUSIP 313586786).

The new dividend rate of 1.36 percent per annum for Series F Preferred Stock equals the two-year Constant Maturity Treasury Rate (CMT Rate) minus 0.16 percent, subject to a cap of 11 percent per year. The 2-Year CMT Rate is the one-week average yield on 2-year United States Treasury (Treasury) securities at "constant maturity" as estimated from the Treasury's weekly yield curve and published in the latest H.15(519). In accordance with the terms of the Series F Preferred Stock, the dividend rate was initially set as of March 20, 2000, and the rate resets as of March 31 every two years thereafter. The new dividend rate for Series F Preferred Stock will be in effect from and including March 31, 2008, to but excluding, March 31, 2010. Thirteen million eight hundred thousand (13,800,000) shares of Series F Preferred Stock at a stated value of $50.00 per share or an aggregate stated value of $690 million, were issued and are currently outstanding.

The new dividend rate of 4.50 percent per annum for Series P Preferred Stock will be in effect from and including March 31, 2008, to but excluding June 30, 2008. In accordance with the terms of the Series P Preferred Stock 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 the 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.

Holders of record for Series F and Series P Preferred Stock will be entitled to quarterly dividends when and if declared by the Board of Directors of Fannie Mae. For more information about Series F or Series P Preferred Stock, interested parties should refer to the respective Certificates of Designation, which are available on Fannie Mae's Web site at www.fanniemae.com.


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.