Fannie Mae Announces Adjustments to Non-Callable Yield Curve Used to Price and Evaluate Callable Benchmark Notes.

Business Editors

WASHINGTON--(BUSINESS WIRE)--Jan. 31, 2002

Fannie Mae today announced changes to the list of non-callable Benchmark Securities issues underlying the non-callable yield curve used for evaluating its Callable Benchmark Notes(R) on Bloomberg's OASF pricing screen.

These changes, effective February 1, 2002, at 8:00 a.m., will reflect a more accurate representation of the company's current cost of funds.

In 2001, Fannie Mae, in conjunction with Bloomberg and TradeWeb, introduced a new approach to pricing and analyzing Callable Benchmark Notes, to reflect the valuation of these securities on an up-to-the-minute basis. Following are the curve changes:

Maturity   Current Issue   New Issue
--------   -------------   -----------
2 Yr       11/15/2003       02/13/2004
--------   -------------   -----------
3 Yr       09/15/2004       02/15/2005
--------   -------------   -----------
4 Yr       12/15/2005       02/15/2006
--------   -------------   -----------
7 Yr       05/15/2008       01/15/2009
--------   -------------   -----------

Fannie Mae, in consultation with the Callable Benchmark Notes dealer group, reviews monthly the specific non-callable Benchmark Securities issues composing the yield curve used to price and evaluate Callable Benchmark Notes.

Pre-announced non-callable Benchmark Notes or Bonds are added to the yield curve commencing on the security's settlement date, while any other adjustments are made effective on the first business day of the month.

For additional information on the yield curve for Callable Benchmark Notes, please refer to www.fanniemae.com/markets/debt/products/benchmark/callable/introduction.html.

This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Any such offering will be made only by an offering circular and supplement thereto.

Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages.

Fannie Mae is working to shrink the nation's "homeownership gaps" through a $2 trillion "American Dream Commitment" to increase homeownership rates and serve 18 million targeted American families by the end of the decade. Since 1968, Fannie Mae has provided more than $3.6 trillion of mortgage financing for nearly 43 million families.

More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

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

Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."