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For Immediate Release September
24,
2004
FREDDIE MAC ISSUES PROXY STATEMENT AND 2003 ANNUAL REPORT TO STOCKHOLDERSInformation statement updates company’s business outlook
McLean, VA – Freddie Mac (NYSE: FRE) today issued the company’s Proxy Statement for its annual meeting to be held on November 4, 2004, and its Information Statement and Annual Report to stockholders for the fiscal year ended December 31, 2003. The Proxy Statement and the Annual Report are available on the company’s Web site at www.FreddieMac.com/investors/. The Annual Report updates the company’s business outlook as previously set forth in its Information Statement Supplement dated June 30, 2004. These updates relate to retained portfolio growth and fair value balance sheet net asset growth. In addition, the outlook also includes a new discussion of the continued volatility of the company’s reported earnings under Generally Accepted Accounting Principles (GAAP) and the company’s expectation concerning the impact of such volatility on GAAP results in the first half of 2004. This discussion can be found in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Executive Summary – Business Outlook” section of the Annual Report. The Annual Report also indicates that subsequent to the announcement of our 2003 financial results on June 30, 2004, the company recorded an expense of $75 million to establish a reserve for legal proceedings arising from the restatement. This reserve was recorded for the second quarter of 2003, the period in which many of the legal proceedings were initiated. Accordingly, 2003 net income as reported in the Annual Report is $4.816 billion, rather than $4.891 billion, as reported in the June 30, 2004, Information Statement Supplement. A discussion of this revision can be found in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Executive Summary – 2003 Summary of Results” section of the Annual Report. Additional information about these and other topics is provided in the Annual Report. Copies of the Proxy Statement and the Annual Report also are available by calling or writing to: Freddie Mac, Investor Relations Department, 1551 Park Run Drive, McLean, VA 22102-3110; telephone, 1-800-FREDDIE (800-373-3343). 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 in America. Freddie Mac’s press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the information statement and annual report to stockholders dated September 24, 2004. ###
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