Fannie Mae Announces Dividend Rate for Preferred Stock Series P

Latressa Cox

202-752-6707

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) today announced a scheduled dividend rate for its Variable Rate Non-Cumulative Preferred Stock Series P ("Series P") of 4.50 percent per annum.

The dividend rate of 4.50 percent per annum for Series P will be in effect from and including June 30, 2008, to but excluding September 30, 2008. In accordance with the terms of the Series P Certificate of Designation, the dividend will continue to accrue at a per annum rate equal to the greater of (i) 4.50 percent and (ii) the sum of 3-Month LIBOR plus 0.75 percent.

Forty million (40,000,000) shares of Series P Preferred Stock at a stated value of $25.00 per share, or an aggregate stated value of $1 billion, were issued and are currently outstanding. Going forward, Fannie Mae will announce dividend changes to Series P when the dividend rate for the quarterly dividend period is greater than 4.500 percent.

Holders of record of Series P preferred shares will be entitled to quarterly dividends when and if declared by the Board of Directors of Fannie Mae.

For more information about our Series P preferred stock, interested parties should refer to the Certificate of Designation, which is available on Fannie Mae's Web site (www.fanniemae.com).