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

McLean, VA – Freddie Mac (NYSE: FRE) today priced its new 5.75% $1.25 billion 10-year bullet subordinated debt security, Freddie SUBS®, due on June 27, 2016. The issue was priced at 99.303 to yield 5.843%, or 63.5 basis points over the on-the-run 5.125% 10-year Treasury security due on May 15, 2016. The Freddie Mac issue, CUSIP 3134A4ZY3, will settle on June 27, 2006.

The new 10-year Freddie SUBS security was offered via a syndicate of dealers headed by Lehman Brothers and Merrill Lynch. Co-managers of the transaction were Bear, Stearns & Co. Inc., Deutsche Bank Securities, Inc., FTN Financial Capital Markets, Goldman Sachs Group, J.P. Morgan Chase and UBS Investment Bank. An application was 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.

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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