FREDDIE MAC ANNOUNCES TENDER OFFERS FOR UP TO $8.6 BILLION ON DEBT SECURITIES WITH EXPIRED OPTIONS

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it will conduct cash tender offers for the repurchase of up to $8.6 billion in principal amount of a targeted group of debt securities during the week of November 15, 2004. The securities selected were originally issued as European-style callable debt securities and have since converted to bullet securities as the options have expired unexercised. As Freddie Mac previously announced on October 7, 2004 in its Quarterly Funding Announcement & Summary, it is committed to promoting the continued liquidity and performance of its callable notes, including those with a European-style call option that has expired.

"We believe that this transaction is mutually beneficial for investors and Freddie Mac," said John Radwanski, vice president and assistant treasurer of Freddie Mac. "It not only demonstrates our ongoing commitment to the performance and liquidity of all of our debt products, but also plays an integral role in our asset-liability management strategy. We may conduct similar transactions in the future depending on the amount of expired callable notes outstanding, market conditions and our funding needs."

Freddie Mac will offer to repurchase any and all outstanding amounts of the selected targeted securities from investors only through Goldman, Sachs & Co., the designated Dealer Manager for the offers. Each eligible security will be repurchased at a fixed spread to an outstanding Freddie Mac Reference Notes^® security.

The tender offers will commence on Monday, November 15, 2004 at 9:00 a.m. EST and expire at 5:00 p.m. EST, on Friday, November 19, 2004, unless extended. Holders of the targeted securities wishing to tender may do so at anytime between 9 a.m. and 5 p.m. EST during the period in which the offers are open. Investors who do not have a securities account at Goldman, Sachs & Co. may contact Goldman, Sachs & Co. at 1-800-828-3182 or 1-212-357-3047 throughout the tender period for assistance with tendering securities. Results of the tender offer will be available on Freddie Mac’s Debt Securities Web page at www.FreddieMac.com/debt.

The table below illustrates how the purchase price for each Security tendered pursuant to the applicable offer to purchase will be determined. The purchase price will be determined in the manner described in the Offer to Purchase [PDF 92K ] dated November 15, 2004 by reference to the applicable fixed spread over the yield to maturity of the Reference Security listed below at the time of the tender, plus an amount equal to any accrued and unpaid interest to but excluding the date of payment of the purchase price.

CUSIP / ISIN	Title of Security	Principal Amount Outstanding	Reference Security	Fixed Spread (bps)
3128X1CU9	2.375% MTN due May 19, 2006	$500,000,000	5.50% Reference Notes due July 15, 2006	(4.2)
3128X1EV5 / US3128X1EV50	2.15% Debt Security due June 2, 2006	$600,000,000	5.50% Reference Notes due July 15, 2006	(2.4)
3128X2FP5	2.91% MTN due June 16, 2006	$325,000,000	5.50% Reference Notes due July 15, 2006	0.0
3128X2JZ9	2.625% MTN due June 30, 2006	$250,000,000	5.50% Reference Notes due July 15, 2006	1.3
3128X1QU4 / US3128X1QU40	2.00% Debt Security due July 7, 2006	$500,000,000	5.50% Reference Notes due July 15, 2006	1.0
3128X1RW9	2.05% MTN due July 14, 2006	$300,000,000	5.50% Reference Notes due July 15, 2006	2.7
3128X1SP3	2.125% MTN due July 28, 2006	$300,000,000	5.50% Reference Notes due July 15, 2006	4.0
3128X1XB8	2.75% MTN due August 4, 2006	$250,000,000	5.50% Reference Notes due July 15, 2006	5.1
3128X1WM5	2.65% MTN due August 4, 2006	$300,000,000	5.50% Reference Notes due July 15, 2006	5.1
3128X2QK4	2.50% MTN due August 9, 2006	$250,000,000	5.50% Reference Notes due July 15, 2006	5.5
3128X2VP7	2.625% MTN due August 17, 2006	$250,000,000	5.50% Reference Notes due July 15, 2006	6.3
3128X1T31 / US3128X1T316	2.75% Debt Security due October 6, 2006	$977,669,000	2.75% Reference Notes due October 15, 2006	1.0
3128X1GF8	2.25% MTN due December 4, 2006	$850,000,000	2.875% Reference Notes due December 15, 2006	1.1
3128X1DE4 / US3128X1DE45	2.50% Debt Security due December 4, 2006	$1,121,810,000	2.875% Reference Notes due December 15, 2006	1.1
3128X2NA9	3.00% MTN due January 30, 2007	$250,000,000	2.375% Reference Notes due February 15, 2007	0.9
3128X2PZ2	2.75% MTN due January 30, 2007	$250,000,000	2.375% Reference Notes due February 15, 2007	0.9
3128X2RP2	2.75% MTN due February 9, 2007	$250,000,000	2.375% Reference Notes due February 15, 2007	2.4
3128X1V61 / US3128X1V619	2.85% Debt Security due April 6, 2007	$500,000,000	2.875% Reference Notes due May 15, 2007	(0.7)
3128X2ZK4	3.00% MTN due August 27, 2007	$250,000,000	2.875% Reference Notes due May 15, 2007	11.2
3128X1DD6	3.20% MTN due May 21, 2008	$300,000,000	5.75% Reference Notes due April 15, 2008	5.3
Total		$8,574,479,000

This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Neither Freddie Mac nor Goldman, Sachs & Co. makes any recommendation that any holder of the securities tender or refrain from tendering all or any portion of the principal amount of such holder's securities. Holders must make their own decisions whether to tender securities, and if so, decide on the principal amount of securities to tender. Freddie Mac's securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, are not guaranteed by and are not debts nor obligations of the United States or any federal agency or instrumentality other than Freddie Mac. The tender offers are being made only upon the terms and subject to the conditions set forth in the Offer to Purchase dated November 15, 2004.

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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