FREDDIE MAC PRICES $1 BILLION REFERENCE REMIC^SM R-001

McLean, VA – Freddie Mac (NYSE:FRE) announced today that it priced $1 billion of Reference REMIC^SM R-001, Class AE, (CUSIP 31395RAR9), a Guaranteed Maturity Class (GMC) with a class coupon of 4.375% and a final maturity date of April 15, 2015.

The GMC issue was priced at 99.773438 % to yield 4.4334%, or 78 basis points over the interpolated Treasury curve. Settlement is scheduled for May 23, 2005. Freddie Mac guarantees the principal and interest on its Reference REMIC securities.

Lehman Brothers, Morgan Stanley and UBS Investment Bank jointly led the transaction. Co-managers on the transaction were Banc of America Securities LLC, Bear Stearns & Co., Inc., Citigroup, Credit Suisse First Boston, Deutsche Bank Securities, Goldman Sachs & Co. and RBS Greenwich Capital. The transaction also involved a selling group.

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 related offering circular supplements.

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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