Fannie Mae Plans Inaugural Benchmark REMIC(TM) Issuance

Fannie Mae (NYSE: FNM) today said it intends to issue its first Benchmark REMIC(TM) during the week of June 19, 2006. Bear, Stearns & Co. Inc., Lehman Brothers Inc. and UBS Securities LLC, will be the joint lead managers.

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 the applicable offering documents, and 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.

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.

Benchmark REMICs is a trademark of Fannie Mae. Unauthorized use of this mark is prohibited.