FREDDIE MAC TO ISSUE A NEW $3 BILLION FIVE-YEAR REFERENCE NOTES® SECURITY IN DECEMBER

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it plans to issue a new $3 billion five-year USD Reference Notes^® security due on December 15, 2009. The issue, CUSIP number 3134A4UW2, will be priced on December 2, 2004 and will settle on December 3, 2004. The company also announced that it would not use its optional two- or three-year Reference Notes security window in December.

The new five-year Reference Notes security will be offered via a syndicate of dealers headed by joint-leads Deutsche Bank Securities, Inc., Lehman Brothers, and UBS Investment Bank. An application will be made to list the issue on the Luxembourg Stock Exchange.

Including today's offering, Freddie Mac has issued $40 billion of Reference Notes securities during 2004. Since the beginning of the year, approximately $57 billion of the company's Reference Notes securities have matured, leaving approximately $215 billion in Reference Notes and Reference Bonds^® securities outstanding.

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.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than two million renters in America.

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