FREDDIE MAC PRICES NEW $4 BILLION TWO-YEAR REFERENCE NOTES® SECURITY

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it priced its new $4 billion 2.75% two-year USD Reference Notes^® security due on October 15, 2006. The issue, CUSIP number 3134A4UV4, was priced at 99.950 to yield 2.776%, or 19 basis points more than two-year U.S. Treasury Notes. The issue will settle on October 15, 2004.

“This deal saw strong demand from both overseas and domestic investors. International distribution approached 50 percent, the highest ever percentage for a Freddie Mac two-year Reference Note,” said Jerome Lienhard, treasurer and senior vice president of debt and equity funding.

The issue was offered via a syndicate of dealers headed by joint-leads Goldman Sachs Group, RBS Greenwich Capital Markets, and UBS Investment Bank.

Including today's pricing, Freddie Mac has issued $36 billion of Reference Notes securities during 2004. Since the beginning of the year, approximately $50 billion of the company's Reference Notes securities have matured, leaving approximately $218 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.

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. Over the years, Freddie Mac has made home possible for one in six homebuyers in America.

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