FREDDIE MAC ANNOUNCES NEW REFERENCE REMIC^SM SECURITY ISSUE

Structured Mortgage-Backed Securities Investment Tailored For Global Investors

McLean, VA – Freddie Mac (NYSE:FRE) today announced its intention to offer its second Reference REMIC^SM security. The company expects to offer $1.25 billion of Reference REMIC Series R-002, a Guaranteed Maturity Class (GMC) with a final maturity date of July 15, 2015. Reference REMIC Series R-002 is expected to price on Wednesday, July 20, 2005, with settlement on Monday, July 25, 2005.

Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated and UBS Securities LLC will serve as the lead underwriters for Reference REMIC Series R-002. Co-managers on the transaction are Credit Suisse First Boston, Goldman, Sachs & Co., Lehman Brothers, Merrill Lynch & Co. and RBS Greenwich Capital. The transaction will also involve a selling group.

Information regarding this offering is expected to be available next week. Information about the REMIC of which the GMC is a part is available on the Mortgage Securities page of the company's Web site at www.FreddieMac.com/mbs/. Copies can be obtained from the underwriters at the following addresses:

Deutsche Bank
Attn: Syndication Operations
60 Wall Street
New York, New York 10005
(212) 474-6936

Morgan Stanley & Co. Incorporated
c/o ADP Financial Services
Prospectus Department
1155 Long Island Avenue
Edgewood, New York 11717
(631) 254-7106

UBS Securities LLC
Prospectus Department
1000 Harbor Boulevard
Weehawken, New Jersey 07087
(201) 352-6858

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's information statement and related supplements.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations in these and other forward-looking statements can be found in the company's Information Statement dated June 14, 2005, which is available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors.

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 two million renters in America.

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