FREDDIE MAC PROVIDES UPDATE ON PREFERRED STOCK OFFERING

McLean, VA – Freddie Mac (NYSE: FRE) today provided an update on its offering of $6 billion of non-cumulative perpetual preferred stock. The issuance will now involve an offering only of non-convertible non-cumulative perpetual preferred stock. The company no longer plans to offer convertible non-cumulative perpetual preferred stock. The offering is expected to price in the near term.

The preferred stock is being offered via a syndicate of dealers headed by Lehman Brothers Inc. and Goldman, Sachs & Co. An application has been made to list the preferred stock on the New York Stock Exchange.

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.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily 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 more than 50 million times, ensuring financing for one in six homebuyers and more than four million renters.

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