FREDDIE MAC PRICES $1.25 BILLION REFERENCE REMIC^SM R-002

McLean, VA – Freddie Mac (NYSE:FRE) announced today that it priced $1.25 billion of Reference REMIC^SM R-002, Class AH, (CUSIP 31395VU23), a Guaranteed Maturity Class (GMC) with a class coupon of 4.750% and a final maturity date of July 15, 2015.

The GMC issue was priced at 99.83203125 to yield 4.7908%, or 86 basis points over the interpolated Treasury curve. Settlement is scheduled for July 22, 2005. Freddie Mac guarantees the principal and interest on its Reference REMIC securities.

Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated and UBS Securities LLC jointly led the transaction. Co-managers on the transaction were Credit Suisse First Boston, Goldman Sachs & Co., Lehman Brothers, Merrill Lynch & Co. and RBS Greenwich Capital. The transaction also involved a selling group.

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 related supplements and offering circular supplements.

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 two million renters in America.

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