Auction Overview: Reference Notes® Securities

Debt Securities Program Feature	Description
Auction Type	Closed Bid Dutch Auction (uniform price)
Auction Dates	To be announced on announcement dates. See 2009 Funding Calendar for reference.
Bid Types accepted	Competitive (from Dealers and Investors) Non-Competitive (from Investors Only)
Minimum Bid Size	Competitive: $10mm Non-Competitive: $1mm
Bid Increment	Competitive: $1mm Non-Competitive: $10,000
Maximum Bid Size	Competitive: Not to exceed 35% of the auction size at any single yield bid. Non-Competitive: $200mm.
Non-Competitive Pool	20% of the total auction size.
Maximum Award	Competitive: 35% of the announced auction size less non-competitive bid awards and net long position. Non-Competitive: $200mm.
Allocation of Awards	Competitive: If the total amount of the bids at the stop rate exceeds the amount of the issue left to be allocated, the awards at that bid yield are pro-rated. Non-Competitive: If the total amount of the Non-Competitive bids exceeds the Non-Competitive pool size, then Non-Competitive awards will be pro-rated.
Bids entered	Yield, expressed to the 3rd decimal place
Net Long Position	For any reopening, if a bidder has a net long position which exceeds 35% of the size of the existing issue as of 30 minutes prior to the auction close, the bidder must indicate the excess amount in the NLP field. Otherwise, the NLP field may be left blank. For new issues, if a bidder has a net long position and the sum of its net long position and its proprietary bids exceeds 35% of the issue, the bidder must indicate the size of its excess net long position as of 30 minutes prior to auction close. Otherwise the NLP field on the bid entry page may be left blank.
Maturities	As specified.
Dealer Group Status	Dealer Group members must be authorized and identified by Freddie Mac.
All Non-Dealer Group participants	All non Dealer Group participants (1) must notify Freddie Mac in advance of the Reference Notes® securities auctions through Freddie Mac's website, and (2) indicate the Dealer Group member(s) through which they wish to submit bids. Any party interested in participating in Freddie Mac's auction must notify Freddie Mac no later than two (2) business days prior to the auction. This notification does not need to occur again unless additions or deletions to the list are desired.
Separate Bidding Identifiers	Affiliates of dealers and investors may request to be recognized as a separate bidding entity.
Bidding through Investment Advisors	Freddie Mac recognizes Investment Advisors with investment discretion over multiple accounts as one bidder.
Electronic Participation	Open internet through secure site with user ID and password access.
Confirmation	Awarded bonds will be confirmed on the auction system.
Day Count Convention	30/360. All trades will be settled on the business day following the trade date (i.e. Trade Date + 1). If the settlement date falls on a weekend or holiday, settlement will occur on the next good business day.
Announcement of Results	After conclusion of the auction, Dealer Group members who have been awarded bonds will receive award notification through the auction system. In addition, Freddie Mac will release the general auction results on its website and through a press release that will include: amount of bids recognized and accepted, uniform single award yield (stop rate), price and coupon, pro-rata percentage of competitive and non-competitive awards, total non-competitive award, bid to cover ratio and other information Freddie Mac may decide to include.
Disclaimers	The Reference Notes securities are obligations of Freddie Mac only. The Reference Notes securities, including any interest or return discount on the Reference Notes securities, are not guaranteed by, and are not debts or obligations of, the United States or any agency or instrumentality of the United States other than Freddie Mac. This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Any such offering will be made only by an offering circular and pricing supplement.