FREDDIE MAC PRICES $2.5 BILLION STRIP DEAL

McLean, VA – Freddie Mac (NYSE:FRE) announced today that it priced a $2.5 billion 5% Gold MACS Strip security. The Weighted Average Coupon (WAC), Weighted Average Maturity (WAM) and Weighted Average Loan Age (WALA) are 5.53%, 355 months, and 4 months, respectively. The issue, designated FHS 227, is scheduled for settlement on November 19, 2004. The IO CUSIP is 31282YDN6; the PO CUSIP is 3128HVC80.

"The Strip market has been very active in recent weeks, and Freddie Mac is excited about the broad participation in this transaction," explained Mark Hanson, vice president for Mortgage Funding. "We have issued a large volume of structured mortgage products in 2004, particularly in our REMIC business. Through the end of October, Freddie Mac has issued more than $171 billion in REMIC securities, providing structured alternatives to a range of investors, while supporting our single-class Gold PC."

The transaction is lead managed by J.P. Morgan Chase and UBS Investment Bank. Co-lead managers are Banc of America Securities, Bear, Stearns & Co. Inc., Citigroup Global Markets, Inc., Credit Suisse First Boston, Deutsche Bank Securities, Goldman Sachs Group, Lehman Bros., Merrill Lynch Morgan Stanley, Nomura Securities International, Inc., and RBS Greenwich Capital.

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 offering circular supplement.

Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough 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 two million renters in America.

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