Fannie Mae Announces New Issue Callable Benchmark Notes(R).

The following is being issued by Fannie Mae:

                        5 noncall 2-Year (New Issue)    Pricing Date         November 13, 2003    Settlement Date      November 17, 2003    Structure            5 noncall 2-year with one-time (European) call    One-time Call Date   November 17, 2005    Maturity Date        November 17, 2008    Payment Dates        Each May 17th and November 17th, beginning                        May 17, 2004    Coupon               TBD    Issue Size           Minimum $2.0 Billion    CUSIP                31359MTQ6    Listing              Luxembourg Stock Exchange    

FTN Financial Capital Markets, Goldman, Sachs & Co., and UBS Investment Bank are the joint lead managers. The co-managers include Bear Stearns, Citigroup Global Markets Inc., Credit Suisse First Boston Corp., Deutsche Bank Securities Inc., HSBC Securities Inc., J.P. Morgan Securities Inc., Lehman Brothers Inc., Merrill Lynch & Co. Inc., and Morgan Stanley & Co.

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 over $5.7 trillion of mortgage financing for more than 58 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com/.

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 Offering Circular dated January 23, 2003, 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.

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 "FNM." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."

Company News On-Call: http://www.prnewswire.com/comp/305450.html

CONTACT: Jason Lobo of Fannie Mae, +1-202-752-1692

Web site: http://www.fanniemae.com/