Business: Statement by Daniel H. Mudd, President and CEO of Fannie Mae

Washington (ANTARA News/PRNewswire-AsiaNet) - Fannie Mae (NYSE: FNM) appreciates today's announcements and the expressions of support for the GSEs as shareholder-owned companies that play a critical role in the U.S. housing finance system. We are grateful for the leadership of Secretary Paulson and Chairman Bernanke. We look forward to working with Treasury, OFHEO and Congress on swift passage of the new legislative proposals, as well as the important initiatives underway to assist homeowners and help restore stability to the housing market. We continue to hold more than adequate capital reserves and maintain access to liquidity from the capital markets. Given the market turmoil, having options to access provisional sources of liquidity if needed will help to strengthen overall confidence in the market. We will continue to do our part to provide liquidity, stability and affordability to the housing market now and in the future.

This statement contains forward-looking statements, which are statements about matters that are not historical facts.
Although Fannie Mae believes that the expectations set forth in these statements are reasonably based, the company's future operations and its actual performance may differ materially from what is indicated in the forward-looking statements in this statement. Factors that could cause actual results to differ materially from these statements include the company's results of operations for the remainder of 2008; changes in accounting principles or practices, including changes in the rules governing qualified special purpose entities; recording a valuation allowance for its deferred tax asset; continued impairments of its assets; changes in investor confidence in the company; the effect of proposed and pending legislation.
Additional factors that could cause actual results to differ materially from these statements are detailed in Fannie Mae's quarterly report on Form 10-Q for the first quarter of 2008 and its annual report on Form 10-K for the year ended December 31, 2007, including in each case the "Risk Factors" section, as well as the company's reports on Form 8-K. These periodic and current reports, as well as all other forms that Fannie Mae has filed with the SEC, can also be obtained on the company's web site at www.fanniemae.com/ir/sec/.

SOURCE: Fannie Mae
CONTACT: Brian Faith,
+1-202-752-6720,
for Fannie Mae
Web site: http://www.fanniemae.com
http://www.fanniemae.com/ir/sec

Business: Fannie Mae prices offering of $2 billion of preferred stock

Washington (ANTARA News/PRNewswire-AsiaNet) - Fannie Mae (NYSE: FNM) today priced $2 billion, or 80 million shares, of non-cumulative, non-convertible, perpetual fixed-rate preferred stock, designated as Series T. The Series T preferred stock (CUSIP 313586737) has a stated value of $25 per share and a dividend rate of 8.25 percent per annum. Fannie Mae will have the option to redeem all or part of the preferred stock on or after May 20, 2013. It is expected to be issued on May 19, 2008.

Net proceeds of the offering will be used for general corporate purposes, including enhancing the company's capital position, providing additional market liquidity and pursuing new business opportunities.

"The preferred securities attracted a wide base of individual as well as institutional investors," said David Benson, Senior Vice-President and Treasurer of Fannie Mae. "This issuance completes Fannie Mae's capital raising plan announced last week."

Merrill Lynch & Co. acted as joint lead manager and physical book-runner. Citigroup Global Markets Inc., Morgan Stanley, UBS Securities LLC and Wachovia Capital Markets, LLC also acted as joint lead managers and book-runners. Application will be made to list the shares on the New York Stock Exchange under the symbol "FNMprT."

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 to 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 documents, 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
CONTACT: Jason Lobo,
+1-202-752-1692, or
Janis Smith,
+1-202-752-6673,
both of Fannie Mae
Web site: http://www.fanniemae.com

COPYRIGHT © 2008

Business: Fannie Mae prices offerings of $2.25 bln of common stock

Washington, (ANTARA News/PRNewswire-AsiaNet) - Fannie Mae (NYSE:FNM) today priced $2.25 billion, or 82 million shares, of a new offering of its common stock (CUSIP 313586109) at $27.50 per share.

The company also announced that it priced $2.25 billion, or 45 million shares, of 8.75 percent Non-Cumulative Mandatory Convertible Preferred Stock, Series 2008-1 (CUSIP 313586745).

The Series 2008-1 Preferred Stock has a stated value and liquidation preference of $50 per share, and will pay quarterly non-cumulative cash dividends, when and if declared by the Board of Directors, at a rate of 8.75 percent per annum on the stated value. Each share of the Series 2008-1 Preferred Stock will automatically convert on May 13, 2011, into between 1.5408 shares and 1.8182 shares of Fannie Mae common stock. Also, at any time at the election of the holder, each share of the Series 2008-1 Preferred Stock may be converted into 1.5408 shares of Fannie Mae common stock. The conversion rates for the Series 2008-1 Preferred Stock will be subject to anti-dilution adjustments in certain circumstances.

"Investor demand for these offerings was very strong, which we believe reflects investor confidence in the long-term value of our business and our leading market position," said David Benson, Senior Vice President and Treasurer of Fannie Mae.

Fannie Mae has granted the underwriters for the offerings a 30-day option to purchase up to 12.3 million additional shares of common stock and a 30-day option to purchase up to an additional 6.75 million shares of the Series 2008- 1 Preferred Stock.

Both offerings are expected to close on May 14, 2008, subject to satisfaction of customary closing conditions. As previously announced, these offerings will be followed in the very near future by an offering of non- cumulative, non-convertible preferred stock.

Net proceeds of the offerings will be used for general corporate purposes, including enabling the company to maintain a strong, conservative balance sheet, enhance long-term shareholder value, and provide stability to the secondary mortgage market.

Lehman Brothers Inc., J.P. Morgan Securities Inc. and Citigroup Global Markets Inc. are joint book-running managers for the common stock offering, with Goldman, Sachs & Co. and Morgan Stanley acting as co-managers. J.P.

Morgan Securities Inc., Lehman Brothers Inc. and Banc of America Securities LLC are joint book-running managers on the Series 2008-1 Preferred Stock offering, with Goldman, Sachs & Co. and Merrill Lynch acting as co-managers.

Lehman Brothers Inc. and J.P. Morgan Securities Inc. acted as global coordinators in both offerings.

Copies of the Offering Circulars will be available on Fannie Mae's website and can be obtained from the global coordinators at the following addresses:

-- Lehman Brothers Inc., c/o Broadridge, Integrated Distribution Services, 1144 Long Island Avenue, Edgewood, NY 11717; fax 631-254-7140, or email: qiana.smith@broadridge.com.

-- J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, Attention: Chase Distribution & Support Service Northeast Statement Processing Phone: (718) 242-8002.

A supplemental listing application will be made to list the additional common stock on the New York Stock Exchange. Application will be made to list the Series 2008-1 Preferred Stock on the New York Stock Exchange under the symbol "FNA."

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 to those who house America.

Certain statements in this press release, including those relating to plans to raise capital, as well as planned use of the net proceeds; and future business activities, may be considered forward-looking statements within the meaning of the federal securities laws. Although Fannie Mae believes that the expectations set forth in these statements are based upon reasonable assumptions, Fannie Mae's future plans, operations and its actual performance may differ materially from what is indicated in any forward-looking statements.

Additional information that could cause actual results to differ materially from these statements are detailed in Fannie Mae's quarterly report on Form 10-Q for the period ended March 31, 2008, and its annual report on Form 10-K for the year ended December 31, 2007, including the "Risk Factors" section in these reports, and in its reports on Form 8-K.

All forms Fannie Mae filed with the SEC can also be obtained on the company's web site at www.fanniemae.com/ir/sec/.

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.

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
CONTACT: Jason Lobo, +1-202-752-1692,
or Janis Smith, +1-202-752-6673,
both of Fannie Mae
Web site: http://www.fanniemae.com

Fund/Bank: Fannie Mae announces plan to raise capital

Washington (ANTARA News/PRNewswire-AsiaNet) - Fannie Mae (NYSE: FNM) announced its plan to raise $6 billion in new capital through public offerings of common stock, non-cumulative mandatory convertible preferred stock and non-cumulative, non-convertible preferred stock.

Fannie Mae is raising $6 billion in new capital through underwritten public offerings of new securities. The company commences today two offerings totaling $4 billion of common stock and non-cumulative mandatory convertible preferred stock.
These offerings will be followed in the very near future by an offering of non-cumulative, non-convertible preferred stock.

Net proceeds of the offerings will be used for general corporate purposes, including to enable the company to maintain a strong, conservative balance sheet, enhance long-term shareholder value, and provide stability to the secondary mortgage market.

All of the common stock is being newly issued by the company. Fannie Mae has granted the underwriters 30-day options to purchase from the company up to an additional 15 percent each of the common stock and non-cumulative mandatory convertible preferred stock.

The common stock and mandatory convertible preferred stock offerings will be managed by Lehman Brothers Inc., and J.P. Morgan Securities Inc., as joint book-running managers. Copies of the preliminary Offering Circulars are available on Fannie Mae's Web site and can be obtained from both underwriters at the following addresses:

-- Lehman Brothers Inc., c/o Broadridge, Integrated Distribution Services, 1144 Long Island Avenue, Edgewood, NY 11717; fax 631-254-7140, or email:
qiana.smith@broadridge.com.
-- J.P. Morgan Securities Inc., 4 Chase Metrotech Center, CS Level, Brooklyn, NY 11245, Attention: Chase Distribution & Support Service Northeast Statement Processing Phone: (718) 242-8002.

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.

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 documents, 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
CONTACT:
Janis Smith, +1-202-752-6673,
or Jason Lobo, +1-202-752-1692,
both of Fannie Mae
Website: http://www.fanniemae.com

COPYRIGHT © 2008