FREDDIE MAC AND THE FREDDIE MAC FOUNDATION DONATE $10 MILLION TO SUPPORT HURRICANE KATRINA RELIEF EFFORTS

Company Also Offers Mortgage Relief and Housing Expertise

McLean, VA – Freddie Mac (NYSE: FRE) and the Freddie Mac Foundation are helping to ease the burden for the thousands of families displaced along the gulf coast by Hurricane Katrina by donating $10 million to aid organizations supporting relief efforts, including the American Red Cross. As the region's needs grow clearer, Freddie Mac is committed to pursuing other housing related strategies and providing resources that will alleviate suffering in the hurricane's aftermath.

"The devastation caused by Hurricane Katrina is a tragedy of tremendous proportion for our nation. As a company dedicated to helping house our nation's families, we are incredibly saddened by the extent of suffering and loss. We have a rich history of responding to the urgent needs of the American public and are again committed to helping rebuild lives," explained Freddie Mac Chairman and CEO Richard F. Syron. "For those families who still have homes, we want to help them keep their homes. And for those families who are displaced, we hope our contributions of money and resources will help ease their burden as they get back on their feet."

The $10 million donation – five from both the company and the Freddie Mac Foundation – is in addition to the company's $100,000 donation made earlier this week to the American Red Cross. Employees are also committed to helping, and the Freddie Mac Foundation is matching their contributions as well as doubling the match for their donations to non-profits providing shelter and housing to hurricane victims.

Also announced earlier this week, Freddie Mac has asked its mortgage servicers to extend payment relief to qualified borrowers in the areas affected by the storms whose homes have been damaged or destroyed by the storm.

Freddie Mac's disaster relief policies provide a number of ways for mortgage servicers to provide borrowers with relief that can help protect their credit ratings and financial interests in their homes. A mortgage servicer is the company to which borrowers send their monthly mortgage payments.

Freddie Mac allows servicers additional discretion to reduce or suspend mortgage payments for up to 12 months for borrowers with Freddie Mac-owned mortgages in the declared major-disaster areas. Each case must be individually assessed to determine which alternative will best fit the homeowner's circumstances.

For more information on mortgage payment relief, homeowners should contact their mortgage servicer – the company to which they send their monthly mortgage payment – or call Freddie Mac at (800) FREDDIE. Freddie Mac's general disaster relief policies are posted online at www.freddiemac.com/singlefamily/relief.html.

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 and nearly four million renters in America.

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