Fannie Mae Redemption.

    Business Editors

    WASHINGTON--(BUSINESS WIRE)--March 5, 2003--Fannie Mae will redeem
the principal amount indicated of the following securities issues on
the redemption date indicated below at a redemption price equal to 100
percent of the principal amount redeemed, plus accrued interest
thereon to the date of redemption: -0- *T

 Principal Security  Interest  Maturity      CUSIP       Redemption
  Amount     Type     Rate       Date                       Date
----------------------------------------------------------------------
$8,574,000   MTNR   5.750%  Nov. 20, 2020   3136F05H1  March 17, 2003
----------------------------------------------------------------------

*T

    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
$4.5 trillion of mortgage financing for more than 49 million families.
More information about Fannie Mae can be found on the Internet at
http://www.fanniemae.com.
    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."

    --30--DM/ph*

    CONTACT: Fannie Mae, Washington
             Janis Smith, 202/752-6673

    KEYWORD: DISTRICT OF COLUMBIA
    INDUSTRY KEYWORD: BANKING REAL ESTATE
    SOURCE: Fannie Mae