FREDDIE MAC PRICES NEW $4 BILLION TWO-YEAR REFERENCE NOTES® SECURITY

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it priced its new 5.00% $4 billion two-year USD Reference Notes® security due on September 16, 2008. The issue, CUSIP number 3137EAAH2, was priced at 99.864 to yield 5.072%, or 24.5 basis points more than two-year U.S. Treasury Notes. The issue will settle on September 15, 2006.

The new $4 billion two-year USD Reference Notes security was offered via a syndicate of dealers headed by Credit Suisse, Deutsche Bank Securities, Inc., and UBS Investment Bank. An application was also made to list the issue on the Euro MTF market of the Luxembourg Stock Exchange.

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 nearly four million renters in America.

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