FREDDIE MAC ANNOUNCES NEW 5-YEAR REFERENCE NOTES® SECURITY VIA CASH AND EXCHANGE OFFERING

Company Also Issues Quarterly Funding Announcement

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it will issue a new 5-year Reference Notes^® security due July 12, 2010 (CUSIP 3134A4VB7). The company will accept up to a total of $3 billion of five outstanding Reference Notes securities (the "Exchange Securities") listed in the table below in exchange for the new 5 year security. Freddie Mac will also offer at least $2 billion of the new issue for cash. Freddie Mac anticipates that approximately $5 billion to $6 billion in aggregate principal amount of new Reference Notes securities will be issued pursuant to the combined cash and exchange offerings.

The five-year Reference Notes security will be offered for cash via a syndicate of dealers led by Goldman Sachs Group, Merrill Lynch and Morgan Stanley. Merrill Lynch will also act as the sole dealer manager for the exchange offers. An application will be made to list the new issue on the Luxembourg Stock Exchange.

"This 5-year Reference Notes offering is an innovative example of Freddie Mac's commitment to providing liquid securities to the global capital markets," said John Radwanski, Freddie Mac assistant treasurer and vice president, debt funding. "The exchange offering will consolidate liquidity in a new Reference Notes security that will serve as an active, bellwether 5-year issue for fixed-income investors."

Subject to an aggregate $3 billion exchange cap, Freddie Mac will accept validly tendered offers to exchange the Reference Notes securities listed below at fixed spreads to the new 5-year Reference Notes security. Freddie Mac has prioritized the Reference Notes securities eligible for exchange in order of their maturity dates and will accept all validly tendered exchange offers in the order of those priorities, subject to a maximum amount on each eligible Reference Notes security and the exchange cap of $3 billion. For more details, please consult the exchange supplement [PDF 209K ] dated June 10, 2005 available at www.FreddieMac.com/debt.

In order to allow investors sufficient time to make an informed investment decision, Freddie Mac is modifying the length of the June Reference Notes marketing period from what was previously announced in its Global Debt Funding Calendar. The exchange offer will expire at 5 p.m., Eastern Time, on Thursday, June 16, 2005. The new security offer price and exchange ratios will be determined by 10 a.m., Eastern Time, on Friday, June 17, 2005. Announcement of the results of the exchange offering, including the amount of tenders accepted on each eligible Reference Notes security, will be made by 12:00 p.m., Eastern Time, on Friday, June 17 or as soon as possible thereafter. Settlement for both the exchange and the cash offering will be Tuesday, June 21, 2005.

Separately, Freddie Mac today also provided its Quarterly Funding Announcement [PDF 144K ], detailing expected funding activity for the third quarter of 2005. The Quarterly Funding Announcement is available on Freddie Mac's Web site at www.FreddieMac.com/debt.

This announcement constitutes neither an offer to sell nor a solicitation of an offer to buy Freddie Mac securities that are the subject of the exchange and cash offer. Materials providing information on the exchange and cash offerings are available on our Web site.

Freddie Mac's press releases sometimes contain forward-looking statements pertaining to management's current expectations as to our 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 our Information Statement dated September 24, 2004, and supplements thereto, which are available on the Investor Relations page of our Web site at www.FreddieMac.com/investors.

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 two million renters in America.

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