FREDDIE MAC HOLDS ANNUAL STOCKHOLDERS' MEETING

Stockholders Elect Board of Directors; Re-Appoint Independent Auditor; Approve Stock Plans

McLean, VA – Freddie Mac (NYSE:FRE) Chairman and Chief Executive Officer Richard F. Syron today during the company’s annual stockholders’ meeting outlined how a renewed, vigorous focus on mission and customers is helping Freddie Mac play a leading role in ensuring stability, liquidity, and affordability in America’s housing finance system.

During the meeting, Freddie Mac’s stockholders elected 13 directors to the company’s board of directors, ratified the re-appointment of PricewaterhouseCoopers LLP (PwC) as the company’s independent auditor for 2004, and approved the company’s 2004 stock compensation plan and an amended and restated employee stock purchase plan. Each director was elected to office by at least 92 percent of the votes cast.

The re-appointment of PwC as Freddie Mac’s independent auditor for 2004 was ratified by 99 percent of the votes cast. The 2004 stock compensation plan and amended and restated employee stock purchase plan were approved by 90 percent and 94 percent of the vote cast, respectively. (For more information, see Freddie Mac’s Information Statement Supplement dated November 4, 2004.)

“Clearly, we have lots to do in pursuing our ambitious goals for this company,” Syron told the meeting. “We intend to hold ourselves to high standards and continually strive to improve."

Intense Focus on Mission, Customers

Throughout 2004, Freddie Mac has made significant advances, Syron said. A new, seasoned senior management team joined the company this year; the company has adopted significant corporate governance changes; and the board of directors has continued an orderly transition.

Freddie Mac also has made a concerted effort to be more focused and responsive to the company’s customers. “We are striving to be focused on and responsive to our customers,” Syron said. “This means being more flexible, more nimble, and more innovative. It means strengthening our customer relationships at every opportunity. It means competing for every loan and striving for a representative mix of our lenders’ business.”

Syron also told the meeting that by focusing intensely on its mission, Freddie Mac is providing the kind of responsible leadership that is expected of the company. “This kind of leadership doesn’t mean going after the flashiest short-term numbers,” Syron said. “It means doing the right thing, over the long haul, for the families we serve. That’s what our mission-driven employees are motivated to do. And that’s what our shareholders have told us they want: long-term thinking and long-term value creation."

Board of Directors

Members elected to Freddie Mac's board of directors today are:

Barbara T. Alexander, independent consultant.
Geoffrey T. Boisi, retired vice chairman and co-chief executive officer of JP Morgan Chase and Company.
Michelle Engler, trustee of the JNL Investor Series Trust and member of the board of managers of the JNL Variable Funds.
Richard Karl Goeltz, retired vice chairman and chief financial officer of American Express Company.
Thomas S. Johnson, retired chairman and chief executive officer of GreenPoint Financial Corporation.
William M. Lewis, Jr., managing director and co-chairman of investment banking at Lazard Frères Co. LLC.
John B. McCoy, retired chairman and chief executive officer of Bank One Corporation.
Eugene M. McQuade, president and chief operating officer of Freddie Mac.
Shaun F. O'Malley, chairman emeritus of Price Waterhouse LLP.
Ronald F. Poe, president of Ronald F. Poe & Associates.
Stephen A. Ross, Franco Modigliani professor of finance and economics at the Massachusetts Institute of Technology.
Richard F. Syron, chairman and chief executive officer of Freddie Mac.
William J. Turner, manager of Signature Capital, Inc.

In a meeting of the board of directors immediately following the stockholders’ meeting, Syron was re-elected as chairman of the board of Freddie Mac, and O’Malley was re-elected lead director.

Additional information about Freddie Mac and its business is also set forth in our Information Statement dated September 24, 2004, and related Information Statement Supplements, available on the Investor Relations page of our Web site, www.FreddieMac.com/investors.

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.

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