WASHINGTON, Nov. 24 /PRNewswire-FirstCall/ -- Fannie Mae today announced the next dividend rate adjustment for its Variable Rate Non-Cumulative Preferred Stock, Series J. The new rate will be 6.453 percent per annum, which is the Swap Rate (as defined below) plus 1.38 percent. In accordance with the terms of the Series J Preferred Stock, the dividend rate was initially set as of November 26, 2002, and the rate resets as of November 26 every two years thereafter until any redemption. The Swap Rate is the average rate for two-year U.S. Dollar swaps, expressed as a percentage, which appears on the Reuters Screen ISDAFIX3 Page at 11:30 a.m., New York City time, available on the applicable swap determination date (November 22, 2006). The new dividend rate will be in effect from and including November 26, 2006 to, but excluding, November 26, 2008. Holders of record of Series J preferred shares will be entitled to quarterly dividends when and if declared by the Board of Directors of Fannie Mae. The initial dividend rate for the Series J preferred shares was 3.78 percent. Fourteen million (14,000,000) shares with a stated value of $50 per share were issued and are currently outstanding. For more information about the Series J preferred shares, interested parties should refer to the offering circular dated November 21, 2002 for the Series J preferred shares, which includes the applicable Certificate of Designation of Terms. The offering circular is available on Fannie Mae's Web site (http://www.fanniemae.com/). Fannie Mae is a New York Stock Exchange Company. It operates pursuant to a federal charter. Fannie Mae has pledged through its American Dream Commitment to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com/. DATASOURCE: Fannie Mae CONTACT: Latressa Cox of Fannie Mae, +1-240-715-2244 Web site: http://www.fanniemae.com/

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