FREDDIE MAC PRICES REOPENING OF $1 BILLION FIVE-YEAR REFERENCE NOTES® SECURITY

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it priced a $1 billion reopening of its 4.25% five-year Reference Notes^® security due on July 15, 2009. The issue, CUSIP number 3134A4US1, was priced at 102.455 to yield 3.692%, or 36 bps more than five-year U.S. Treasury Notes. Following the reopening,the outstanding issue size will be $4 billion. The issue will settle on September 3, 2004.

Including today's reopening, Freddie Mac has issued $32 billion of Reference Notes securities during 2004. Since the beginning of the year, approximately $48 billion of the company's Reference Notes securities have matured, leaving approximately $216 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. Grant Street Group, parent of MuniAuction, Pittsburgh, PA provides services and technology relating to the auctions.

Freddie Mac is a stockholder-owned corporation 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.

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