Fannie Mae Delays Annual Report for 2005

Fannie Mae today filed a Form 12b-25 with the Securities and Exchange Commission (SEC) to report that it will not timely file its Annual Report on Form 10-K for the period ended December 31, 2005.

The reasons for the delay are discussed fully in the Form 12b-25. The Form 12b-25 also contains a discussion of:

• The process and potential timing of Fannie Mae’s restatement and re-audit;
• Certain accounting matters that may significantly impact the company’s results of operations and financial condition;
• The report delivered by Paul, Weiss, Rifkind, Wharton & Garrison LLP on the results of its investigation;
• Certain New York Stock Exchange (“NYSE”) listing standards relating to SEC filings and information about our continued NYSE listing;
• Certain key business and market issues that have affected the company; and,
• Updates on certain other matters.

The full text of Fannie Mae’s Form 12b-25 may be found on the company’s Web site at http://www.fanniemae.com, or the SEC’s EDGAR site at www.sec.gov.