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

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it priced its new 4.125% $4 billion five-year USD Reference Notes® security due on October 18, 2010. The issue, CUSIP number 3134A4VE1, was priced at 99.550 to yield 4.225%, or 30.5 basis points more than five-year U.S. Treasury Notes. The issue will settle on September 16, 2005.

The new five-year Reference Notes security was offered via a syndicate of dealers headed by Citigroup Global Markets, Inc., JP Morgan Chase and Morgan Stanley.

Including today's offerings, Freddie Mac has issued $32.1 billion of Reference Notes securities during 2005 and has approximately $208.6 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 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 nearly four million renters in America.

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