FREDDIE MAC ANNOUNCES OFFERING OF A NEW $4 BILLION TWO-YEAR REFERENCE NOTES® SECURITY AND $1 BILLION REOPENING OF 5.25% FIVE-YEAR REFERENCE NOTES SECURITY

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it plans to issue a new $4 billion two-year USD Reference Notes® security, CUSIP 3137EAAH2, due on September 16, 2008. Additionally, the company also plans to launch a $1 billion reopening of its 5.25% five-year Reference Notes security that matures on July 18, 2011. Both issues will be priced on September 14, 2006, and will settle on September 15, 2006.

The new two-year Reference Notes security will be offered via a syndicate of dealers headed by Credit Suisse, Deutsche Bank Securities, Inc., and UBS Investment Bank. An application will be made to list the issue on the Euro MTF market of the Luxembourg Stock Exchange.

The $1 billion reopening of its 5.25% five-year Reference Notes security will be conducted via an Internet-based auction. The issue, CUSIP 3137EAAF6, is listed on the Euro MTF market of the Luxembourg Stock Exchange. After the reopening, the outstanding size of the 5.25% five-year security will be $5 billion.

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, 2006 for this auction. All auction details and instructions can be found on Freddie Mac's Debt Securities Web page, www.FreddieMac.com/debt/auctionrepurch/auctions.html.

Including today's offerings, Freddie Mac has issued $48 billion of Reference Notes securities during 2006 and has approximately $230 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.

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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