QUANTUMONLINE.COM SECURITY DESCRIPTION:  Fannie Mae (Federal National Mortgage Assoc.), 5.375% Non-Cumulative Convertible Series 2004-1 Preferred Stock, liquidation preference $100,000 per share, redeemable at the issuer's option on or after 1/5/2008 at $105,000 per share plus declared and unpaid dividends, with no stated maturity, and with non-cumulative distributions of 5.375% ($5375.00) per annum paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the date fixed by the board, not more than 45 days or less than 10 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders. The preferred shares are convertible any time at the holder's option into 1060.3329 common shares of Fannie Mae (NYSE: FNM), an initial conversion price of $94.31 per common share. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the convertible preferred stock and the conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Conv Shrs Conv Price	Distribution Dates	15% Tax Rate
OTOTCn OTOTCps	5.38% $5375.00	$100,000.00 $105,000.00	1/05/2008 None	Ca D 4/23/2023	1060.3329 $94.31	Suspended! 3/31, 6/30, 9/30 & 12/31 Click for MW ExDiv Date Click for Yahoo ExDiv Date	YES

Notes:  September 10, 2008 -- Fannie Mae Permitted to Pay Third Quarter Preferred Stock Dividends. Fannie Mae (FNM/NYSE) today announced that the company has received the consent of the conservator, the Federal Housing Finance Agency (FHFA), and the United States Department of the Treasury to pay the previously declared but unpaid dividends on all of its outstanding preferred stock series, on September 30, 2008, as scheduled. The dividends were declared prior to FNM being placed in conservatorship, and are therefore an outstanding obligation to be honored. The record date, as previously announced, is September 15, 2008. Treasury's consent is limited solely to the payment of this previously declared but unpaid preferred stock dividend. As announced on Sunday, September 7, future common and preferred stock dividends will be eliminated.

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HOME PAGE:     https://www.fanniemae.com/
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Company's Email Address Links

Email Address

investor_relations1@fanniemae.com

Address and Phone Numbers

Address:   3900 Wisconsin Avenue NW, Washington, DC 20016
Main Phone Number	202-752-7000
Fax Number	202-752-4447
Investor Relations	202-752-7115
Toll Free Phone Number	800-732-6643

CEO - Hugh R. Frater

CFO - Chryssa C. Halley