Fannie Mae Prices New Issue 2-Year Benchmark Notes(R) due April 4, 2012

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Feb 26, 2010, 12:17 ET

WASHINGTON, Feb. 26 /PRNewswire-FirstCall/ -- The following is being issued by Fannie Mae (NYSE: FNM):

    
    
                        2-Year
                        ------
    Pricing Date        February 26, 2010
    Settlement Date     March 2, 2010
    Maturity Date       April 4, 2012
    Issue Size          $4.0 billion
    Coupon              1.000%
    Price               99.959
    Yield               1.020%
    Payment Dates       Each April 4th and October 4th,
                        beginning April 4, 2010
    Spread              +20 basis points /0.875%  02/29/12 U.S.
                        Treasury
    CUSIP               31398AH54
    Listing             Application will be made to list the
                        securities on the EuroMTF market of the
                        Luxembourg Stock Exchange

Barclays Capital Inc., Citigroup Global Markets Inc., and Morgan Stanley & Co. are the joint lead managers. The co-managers include Blaylock Robert Van LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., FTN Financial Capital Markets, Jefferies & Company, Inc. and UBS Securities LLC.

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 enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. 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 Circular, 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.

Benchmark Notes is a registered mark of Fannie Mae. Unauthorized use of this mark is prohibited.

SOURCE Fannie Mae