FREDDIE MAC ANNOUNCES FOUR NOMINEES TO STAND FOR ELECTION AS NEW DIRECTORS

McLean, VA – Freddie Mac (NYSE:FRE) announced today that its board of directors has nominated four new candidates for election as directors. The nominees will be included on the slate of 13 directors to be elected by stockholders at the corporation's next annual meeting on November 4, 2004.

The board nominated:

Barbara T. Alexander, 56, an independent consultant since 2004. Earlier, Alexander was a senior advisor to UBS Warburg LLC and its predecessor firms (UBS) from October 1999 to January 2004, and was managing director of the North American construction and furnishings group in the corporate finance department of UBS from 1992 to October 1999.

Geoffrey T. Boisi, 57, retired vice chairman and co-chief executive officer of JP Morgan Chase and Company. Boisi held that position and was a member of the executive committee and management committee from 2000 to May 2002. From 1993 to 2000, he was the founding chairman and senior partner of the Beacon Group, a private investment, mergers and acquisitions, and strategic advisory firm.

William M. Lewis, Jr., 48, managing director and co-chairman of investment banking at Lazard Frères & Co. LLC, a position he has held since April 2004. From 1978 to 1980, and from 1982 to April 2004, Lewis held various positions at Morgan Stanley, most recently serving as managing director and co-head of the global banking department from 1999 to 2004.

Eugene M. McQuade, 55, president and chief operating officer of Freddie Mac. McQuade was appointed to his current position with the company on September 1, 2004. Prior to joining Freddie Mac, he served as president of Bank of America Corporation, and previously served as president and chief operating officer of FleetBoston Financial Corp., which merged with Bank of America on April 1, 2004.

"These four outstanding director nominees will bring an enormous amount of talent, experience and energy to Freddie Mac's board," said Richard F. Syron, Freddie Mac chairman and chief executive officer. "Each of these nominees has served as a senior executive with the world's most respected and sophisticated financial institutions – including UBS Warburg, JP Morgan Chase, Lazard Freres, Morgan Stanley, Bank of America and FleetBoston – and they are widely respected for their leadership, integrity and ability by their peers in the global capital markets."

"During the past year, Freddie Mac has undertaken an orderly transition of our board of directors. These four nominees, working with our other directors standing for election, will continue that transition," Syron added. "All the nominees share with me and our board an unwavering commitment to help Freddie Mac fulfill its mission to bring stability, liquidity, and affordability to America's home finance market, and our commitment to deliver long-term shareholder value."

Freddie Mac's enabling legislation establishes the membership of the corporation's board at 18 directors: 13 directors elected by the stockholders and five directors appointed by the president of the United States. All directors have the same duties and responsibilities and serve for a term ending on the date of the next annual stockholders' meeting.

Thirteen directors are to be elected at Freddie Mac's next annual meeting. In addition to new nominees Barbara Alexander, Geoffrey Boisi, William Lewis, Jr., and Eugene McQuade, the following Freddie Mac directors have been nominated for election: Michelle Engler, Richard Karl Goeltz, Thomas S. Johnson, John B. McCoy, Shaun F. O'Malley, Ronald F. Poe, Stephen A. Ross, Richard F. Syron and William J. Turner.

Current Freddie Mac board members George D. Gould, Henry Kaufman, William Ledman and Joan Donoghue are not standing for reelection.

Further details will be included in Freddie Mac's forthcoming Proxy Statement, which will be mailed to stockholders later this month and will be available at that time on the Investor Relations page.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers in America.

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