FREDDIE MAC ANNOUNCES REOPENING OF FIVE-YEAR REFERENCE NOTES® SECURITY FOR $1 BILLION

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it plans to launch a $1 billion reopening of its 4.25% five-year Reference Notes^® security due on July 15, 2009. After the reopening, the outstanding issue size will be $4 billion. The issue, CUSIP number 3134A4US1, is listed on the Luxembourg Stock Exchange.

The issue, which will be offered via Internet-based auction, will be priced on September 1, 2004 and will settle on September 3, 2004. Investors who want to participate in Reference Notes auctions must first designate the dealers through which they wish to submit bids. This step, if not previously performed, must be completed via the Internet by August 27, at 5 p.m. ET for this auction. All auction details and instructions can be found on Freddie Mac's Debt Securities Web page.

Including today's reopening, Freddie Mac has issued $32 billion of Reference Notes securities during 2004. Since the beginning of the year, approximately $48 billion of the company's Reference Notes securities have matured, leaving approximately $216 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. Grant Street Group, parent of MuniAuction, Pittsburgh, PA provides services and technology relating to the auctions.

Freddie Mac is a stockholder-owned corporation 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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