FREDDIE MAC TO CONDUCT A MULTIPLE €REFERENCE NOTES® REPURCHASE OPERATION TOMORROW

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it plans to conduct a repurchase operation tomorrow for up to a total of €750 million of the following €Reference Notes^® securities:

The operation will be open from 12 p.m. to 1 p.m. BST (British Summer Time) tomorrow. Settlement for all issues will be on October 1, 2004.

Dealers invited to participate in the €Reference Notes repurchase operation are ABN AMRO, Banca IMI Securities, Barclays Capital, Inc., BNP Paribas, CDC IXIS, Citigroup Global Markets, Inc.,Credit Agricole Indo-Suez, Credit Suisse First Boston, Deutsche Bank, Dresdner Kleinwort Wasserstein, Goldman Sachs Group, HSBC-CCF, HypoVereinsbank, ING Barings, J.P. Morgan Chase, Lehman Brothers, Merrill Lynch, Morgan Stanley, Société Générale and UBS Investment Bank.

Freddie Mac will consider multiple offerings per issue submitted by participating dealers in connection with this repurchase operation. However, there is no assurance that Freddie Mac will accept any of these offers, either in whole or in part. Freddie Mac expects to announce the results of the repurchase operation tomorrow by 1:15 p.m. BST.

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 applicable offering materials. Grant Street Group, parent of MuniAuction, Pittsburgh, PA provides services and technology relating to the repurchase operations.

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 made home possible for one in six homebuyers and more than two million renters in America.

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