FREDDIE MAC TO CONDUCT A MULTIPLE USD REFERENCE NOTES® REPURCHASE OPERATION TOMORROW

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it plans to conduct a repurchase operation tomorrow for up to a total of $2 billion of the following Reference Notes^® securities:

CUSIP	Coupon	Maturity	Amount Outstanding (USD millions)	Max Available for Repurchase (USD millions)
3134A2DT2	5.750%	4/15/08	4,250	850
3134A4UQ5	3.375%	4/15/09	5,000	1,000
3134A4DY7	5.625%	3/15/11	3,842	768
3134A4TZ7	4.500%	7/15/13	4,000	800
3134A4UM4	4.500%	1/15/14	6,000	1,200

The operation will be open from 10 a.m. to 11 a.m. ET on Thursday, September 9 2004. Settlement for all issues will be on Friday, September 10, 2004.

Dealers invited to participate in the Reference Notes repurchase operation are ABN AMRO, Banc of America Securities, Barclays Capital, Inc., Bear, Stearns & Co. Inc., BNP Paribas, Citigroup Global Markets, Inc., Credit Suisse First Boston, Deutsche Bank Securities Inc., Goldman Sachs, HSBC Securities, Lehman Brothers, Merrill Lynch, J.P. Morgan Chase, Morgan Stanley, RBS Greenwich Capital, and UBS Investment Bank.

Freddie Mac will consider multiple offerings per issue submitted by participating dealers in connection with this repurchase operation. However, there is no assurance that Freddie Mac will accept any of these offers, either in whole or in part. Freddie Mac expects to announce the results of the repurchase operation by 11:15 a.m. ET on Thursday, September 9, 2004.

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 applicable offering materials. Grant Street Group, parent of MuniAuction, Pittsburgh, PA provides services and technology relating to the repurchase operations.

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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