Law Offices of Howard G. Smith Announces Investigation On Behalf of Preferred Shareholders of Federal National Mortgage Association

BENSALEM, Pa., Sept. 5, 2008 (GLOBE NEWSWIRE) -- Law Offices of Howard G. Smith announces that it is investigating potential claims against Federal National Mortgage Association ("Fannie Mae" or the "Company") concerning possible securities violations related to the Company's offering of 8.75% Non-Cumulative Mandatory Convertible Preferred Stock, Series 2008-1 ("Series 2008-1 Preferred Stock") that took place on or about May 19, 2008 at $50.00 per share.

The investigation concerns allegedly misleading statements and material omissions in the Offering Circular and other Offering materials issued in connection with the Series 2008-1 Preferred Stock offering. If you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638 4847, Toll Free at (888) 638 4847, or by email to howardsmithlaw@hotmail.com.

CONTACT:  Law Offices of Howard G. Smith
          (888) 638-4847

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