FREDDIE MAC PROVIDES QUARTERLY FUNDING ANNOUNCEMENT & SUMMARY

Company announces Reference Notes^® securities issuance for January

McLean, VA – Freddie Mac (NYSE: FRE) today provided the Freddie Mac Quarterly Funding Announcement & Summary, detailing expected funding activity for the first quarter of 2004 and actual funding activity for the fourth quarter of 2003.

"We are pleased to publish our inaugural issue of the Freddie Mac Quarterly Funding Announcement & Summary. Providing liquid securities through transparent and predictable funding is key to helping us to fulfill our mission to expand homeownership in the United States," said Freddie Mac's Treasurer, Vice President, and head of Global Debt Funding, Louise Herrle. "This information tool further demonstrates our commitment to our investors and our mission," she said.

First Quarter 2004 Funding Announcement

Freddie Mac expects the following issuance levels under its funding programs for the first quarter of 2004:

Reference Notes securities

Freddie Mac expects to offer $17 to $22 billion in maturities of 2- through 10-years according to the 2004 Reference Notes Calendar. As $17 billion of Reference Notes securities will mature during the first quarter, net issuance, excluding repurchases, is expected to be $0 to $5 billion.
The company intends to use the 2-/3-year optional issuance dates in January and February, and forego the 2-/3-year optional issuance date in March.
The company plans to issue $5 billion of a new 10-Year Reference Notes security and $5 billion of a new 3-year Reference Notes security on January 14, 2004.
The company plans to issue €3.5 billion of €Reference Notes^® securities during the week of January 19.

Freddie Mac will conduct at least one USD Reference Notes securities periodic repurchase operation during the first quarter and may conduct €Reference Notes securities periodic repurchase operations according to market conditions. As announced on November 17, 2003, the minimum terminal size of USD Reference Notes securities following repurchases was reduced to $3 billion for USD Reference Notes securities and $1 billion for Reference Bonds^® securities. The minimum terminal size of €Reference Notes securities following repurchases remains unchanged at €3 billion.

Other funding activity

Freddie Mac expects to issue $6 to $10 billion of syndicated callable notes, including the $2.5 billion 5-year Non-Call 2-year issue priced on January 8.
Freddie Mac expects to issue up to $6 billion of global floating rate notes, issued via dealer syndicates.
Additionally, Freddie Mac may offer other types of Euro-denominated securities during the first quarter depending on investor interest.

January 2004 Funding

Freddie Mac plans to issue $5 billion of a new 10-year Reference Notes security, CUSIP number 3134A4UM4, due on January 15, 2014. The issue will be priced on January 14, 2004 for settlement on January 16, 2004. The issue will be offered via a syndicate of dealers headed by joint-leads Credit Suisse First Boston, Merrill Lynch, and Morgan Stanley.

Freddie Mac plans to issue $5 billion of a new 3-year Reference Notes security, CUSIP number 3134A4UN2, due on February 15, 2007. The issue will be priced on January 14, 2004 for settlement on January 16, 2004. The issue will be offered via a syndicate of dealers headed by joint-leads Lehman Brothers, Merrill Lynch, and UBS Investment Bank.

Freddie Mac plans to issue €3.5 billion of its previously announced 10-year €Reference Notes security, CUSIP number 31339QAA7, due on January 15, 2014. The issue will be priced during the week of January 19, 2004. The issue will be offered via a syndicate of dealers headed by joint-leads ABN AMRO, Credit Suisse First Boston, Dresdner Kleinwort Wasserstein and Morgan Stanley.

Program and product modifications

Freddie Mac has modified the dealer fee structure for Reference Bills^® securities auctions. On January 5, 2004, Freddie Mac started paying a fee of one basis point to dealers who submit a successful competitive customer order.

In response to the publication of the EU Prospectus Directive, Freddie Mac has changed the denomination of new issues of USD-denominated global securities to a minimum of $2,000, and increments of $1,000 thereafter. The denomination of Euro-denominated global securities remains unchanged at a minimum of €1,000, and increments of €1,000 thereafter.

Freddie Mac has changed the method it uses to assign CUSIP numbers to STRIPS components. Any newly assigned STRIPS interest component will be assigned the same CUSIP number as an existing STRIPS interest component, if the newly assigned component has the same maturity date as an existing component created on or after July 1, 2003. As a result, the newly assigned component will be fully fungible with the existing component.

Freddie Mac has modified its dealer group for Reference Notes securities auctions. The following dealers are invited to submit orders through the Reference Notes securities auction system:

ABN AMRO	HSBC Securities
Banc of America Securities	JP Morgan Chase
Banc One Capital Markets	Lehman Brothers
Barclays Capital, Inc.	Loop Capital Markets LLC
Bear, Stearns & Co. Inc.	Merrill Lynch
Blaylock & Partners, L.P.	Mizuho International, PLC
BNP Paribas	Morgan Stanley
Citigroup Global Markets, Inc.	Nomura Securities International, Inc.
Credit Suisse First Boston	RBS Greenwich Capital
Deutsche Bank Securities Inc.	Tokyo-Mitsubishi International, PLC
Dresdner Kleinwort Wasserstein	UBS Investment Bank
First Tennessee Capital Markets	Wachovia Securities, Inc., L.P.
Goldman Sachs Group	Williams Capital Group
Guzman & Company	Zions First National Bank

October 1, 2003 Through December 31, 2003 Funding Summary

Reference Notes securities

Freddie Mac issued $16 billion of USD Reference Notes securities during the fourth quarter, comprising three new issues and one reopening. USD Reference Notes securities outstanding grew $4 billion to $232 billion. During the quarter, $11 billion in USD Reference Notes securities matured and $0.9 billion were retired via periodic repurchase operations. Freddie Mac's $9 billion 2- and 10-year Reference Notes securities issuances in October were the largest monthly Agency funding since the company's 2- and 10-year Reference Notes securities issuances in January 2003.

Callable Debt

During the fourth quarter, Freddie Mac issued $56.5 billion in callable debt, which includes syndicated callable notes, callable medium term notes and FreddieNotes^® securities. Callable debt outstanding grew $33.5 billion to $250.3 billion, while $21.4 billion was redeemed or repurchased and $1.6 billion matured during the quarter.

Global Floating Rate Notes

Following the inaugural transaction in September 2003, Freddie Mac continued to issue global floating rate notes. During the fourth quarter, Freddie Mac issued $8 billion of global floating rate notes, comprising two new 2-year issues.

Reference Bills securities

Freddie Mac issued $136 billion in discount notes and Reference Bills securities. Short-term debt outstanding decreased by $78.7 billion to $189 billion, with average days to maturity shortening to 88 days from 89 days.

Additional detailed information is provided below.

October 1, 2003 Through December 31, 2003 Detailed Funding Summary

The following tables summarize Freddie Mac's debt funding activity for the period from October 1, 2003 through December 31, 2003.

Estimated fourth quarter 2003 issuance, redemption and balances - unaudited: ^(1,2,3)

	Outstanding 9/30/03	Gross Issuance	Matured	Called	Re-purchased	Net Issuance⁽⁴⁾	Outstanding 12/31/03

Reference Bills & Discount Notes	$267.7	136.0	(214.8)	--	--	(78.7)	$189.0
Average days to maturity	89						88

Medium Term Notes
Global Floating Rate	$4.0	8.0	--	--	--	8.0	$12.0
Syndicated Callable	25.0	6.0	--	--	--	6.0	31.0
MTN Callable	178.3	49.0	(1.6)	(20.8)	(0.6)	26.0	204.3
MTN Other	19.9	4.7	(0.2)	--	(0.0)	4.5	24.4
FreddieNotes	13.5	1.5	--	(0.0)	--	1.5	15.0
Total Medium Term Notes	$240.7	69.2	(1.8)	(20.9)	(0.6)	45.9	$286.6

Reference Notes
USD Reference Notes	$228.0	16.0	(11.0)	--	(0.9)	4.0	$232.0
€Reference Notes⁽⁵⁾	31.7	--	--	--	(0.4)	(0.4)	31.3
Total Reference Notes	$259.7	16.0	(11.0)	--	(1.3)	3.7	$263.4

Subordinated Debt	5.9	--	--	--	--	--	5.9

Total Debt	$774.0	221.2	(227.5)	(20.9)	(1.9)	(29.1)	$744.8

(1)	All figures are estimates based on Freddie Mac's unaudited internal reports and are subject to change. Totals may not recalculate due to rounding.
(2)	All figures represent face amounts in USD billions. These figures could differ significantly from proceeds, amortized principal amount and book value figures, particularly for zero-coupon securities.
(3)	Effective date for inclusion in the reported period is trade date
(4)	Represents the sum of the "Gross Issuance", "Matured", "Called" and "Repurchased" columns.
(5)	The euro amount outstanding on September 30, 2003 and December 31, 2003 was €34.5 billion and €34.0 billion, respectively. The amount repurchased during the quarter was €495 million. The U.S. Dollar amounts reflected in the table above are based on the exchange rate at issuance.

Estimated fourth quarter 2003 distribution of new issues by geographic location: ⁽⁶⁾

	U.S.	Asia / Japan	Europe	Other

USD Reference Notes	75%	14%	9%	2%
€Reference Notes	-	-	-	-
Syndicated Callable Notes	81%	11%	7%	1%
Global Floating Rate Notes	94%	1%	3%	2%

Estimated fourth quarter 2003 distribution of new issues by investor type: ⁽⁶⁾

	Investment Manager	Central Bank	Commercial Bank	Insurance / Pension	Local Government	Corporation	Retail

USD Reference Notes	51%	15%	18%	12%	3%	0%	1%
€Reference Notes	-	-	-	-	-	-	-
Syndicated Callable Notes	46%	11%	14%	23%	6%	0%	0%
Global Floating Rate Notes	67%	2%	24%	3%	3%	1%	0%

(6)

Distribution estimates are based on order book composition for syndicated issues furnished to Freddie Mac by underwriters. Freddie Mac does not independently validate submitted data. The presentation reflects management's classification of investors based on its best judgment.

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.

Although Freddie Mac attempts to provide useful information, Freddie Mac does not guarantee that the information is accurate, current or suitable for any particular purpose.

Freddie Mac’s press releases sometimes contain forward-looking statements pertaining to management’s current expectations as to Freddie Mac’s future business plans, results of operations and/or financial condition. Management’s expectations for the company’s future necessarily involve a number of assumptions and estimates, and various factors could cause actual results to differ materially from these expectations.

These assumptions and factors are discussed in the company’s Information Statement Supplement dated November 21, 2003, Appendix I, “Selected Restatement Topics,” available on the Investor Relations page of the company’s website.

Freddie Mac is a stockholder-owned corporation 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 opened the doors for one in six homebuyers and more than two million renters across America.

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