FREDDIE MAC ANNOUNCES OFFERING OF NEW $4 BILLION FIVE-YEAR REFERENCE NOTES® SECURITY AND $2 BILLION REOPENING OF 4.00% TWO-YEAR REFERENCE NOTES® SECURITY

Company also issues Quarterly Funding Announcement

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it plans to issue a new $4 billion five-year USD Reference Notes® security, CUSIP number 3134A4VE1, that will mature on October 18, 2010. The new five-year Reference Notes security will be offered via a syndicate of dealers headed by Citigroup Global Markets, Inc., JP Morgan Chase and Morgan Stanley. An application will be made to list the issue on the Luxembourg Stock Exchange.

The company also announced that it plans to launch a $2 billion reopening of its 4.00% two-year Reference Notes security that matures on August 17, 2007. After the reopening, the outstanding size of the 4.00% two-year Reference Notes security will be $5 billion. The issue, CUSIP 3134A4VD3, is listed on the Luxembourg Stock Exchange. The reopening will be conducted via an Internet-based auction. Both issues will be priced on September 14, 2005, and will settle on September 16, 2005.

Investors who want to participate in Reference Notes auctions must first designate the dealer through which they wish to submit bids. This step, if not previously performed, must be performed on the Internet no later than 5 p.m. Eastern Time on September 12, 2005, for this auction. All auction details and instructions can be found on Freddie Mac's Debt Securities Web page, www.FreddieMac.com/debt.

Including today's offerings, 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.

Quarterly Funding Announcement Issued

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

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.

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