FREDDIE MAC TO ISSUE NEW 10-YEAR SUBORDINATED DEBT SECURITY (FREDDIE SUBS®)

Company Also Plans To Issue Preferred Stock

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it plans to issue $1 billion of a new 10-year bullet subordinated debt security, Freddie SUBS®, due on June 27, 2016. The issue, CUSIP number 3134A4ZY3, will be priced on June 23, 2006 and settle on June 27, 2006.

The new 10-year Freddie SUBS security will be offered via a syndicate of dealers headed by Lehman Brothers and Merrill Lynch. An application will be made to have the issue admitted for trading on the Euro MTF market of the Luxembourg Stock Exchange.

Freddie SUBS securities are part of a series of commitments, initiated in late 2000 and updated in September 2005, designed to enhance market discipline, liquidity and capital. Including today’s offering, Freddie Mac has approximately $6.5 billion in Freddie SUBS outstanding.

Freddie Mac also intends to issue preferred stock in the near future consistent with the company’s previously stated plans.

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.

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 more than four million renters in America.

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