FREDDIE MAC PRICES $1 BILLION OF PREFERRED STOCK

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it has priced two new classes of perpetual non-cumulative preferred stock – $250 million of a fixed-rate dividend class, CUSIP 313400699, and $750 million of a variable-rate dividend class, CUSIP 313400715. The shares are expected to be issued on July 17, 2006, subject to the satisfaction of customary closing conditions.

The 5 million shares of fixed-rate preferred stock are being offered to investors at $50.00 per share with a dividend rate of 6.42 percent. Freddie Mac will have the option to redeem all or part of the fixed-rate shares on or after June 30, 2011 at $50.00 per share plus accrued dividends.

The 15 million shares of variable-rate preferred stock are being offered to investors at $50.00 per share with an initial dividend rate of 6.00 percent. Dividends will reset quarterly beginning on October 1, 2006, at a rate equal to the 3-month LIBOR rate plus 0.50 percent. Freddie Mac will have the option to redeem all or part of the variable-rate shares on or after June 30, 2011 at $50.00 per share plus accrued dividends.

The preferred stock is being offered via a syndicate of dealers headed by Bear, Stearns & Co. Inc. and UBS Securities LLC. Co-managers of the transaction are Banc of America Securities, Credit Suisse, FTN Financial Capital Markets, Goldman Sachs Group, HSBC Securities, Lehman Brothers, Merrill Lynch and Morgan Stanley. An application will be filed to list the classes on the New York Stock Exchange.

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 more than four million renters in America

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