FREDDIE MAC PRICES $2 BILLION REOPENING OF 4.00% TWO-YEAR REFERENCE NOTES® SECURITY

McLean VA – Freddie Mac (NYSE: FRE) announced today that it auctioned a $2 billion reopening of its 4.00% two-year USD Reference Notes security that matures on August 17, 2007. The stop yield for the issue, CUSIP number 3134A4VD3, was 4.072%, priced at 99.865629 or approximately 19.8 basis points more than two-year U.S. Treasury Notes. The bid-to-cover ratio was 2.909 to 1. After the reopening, which was conducted via an Internet-based auction, the total outstanding size of the 4.00% two-year Reference Notes security will be $5 billion. The issue will settle on September 16, 2005.

Including today's reopening, Freddie Mac has issued $32.1 billion of Reference Notes securities during 2005 and has approximately $208.6 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 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 and nearly four million renters in America.

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