FREDDIE MAC PRICES $2.5 BILLION REFERENCE REMIC^SM R-003

McLean, VA – Freddie Mac (NYSE:FRE) today announced that it priced $2.5 billion of Reference REMIC^SM R-003, Class AG, (CUSIP 31396C3C2), a Guaranteed Maturity Class (GMC) with a class coupon of 5.125% and a final maturity date of October 15, 2015. The GMC issue was priced at 99.777343750 to yield 5.1872%, or 87 basis points over the interpolated Treasury curve. Settlement is scheduled for Tuesday, October 25, 2005. Freddie Mac guarantees the principal and interest on its Reference REMIC securities.

"Reference REMIC securities are designed to meet the evolving needs and demands of a wide range of global investors, and we are pleased that our latest security issue has been well received by the market and continues our aim to expand and diversify our mortgage-backed securities investor base," said Mark Hanson, Freddie Mac vice president, mortgage funding. "By providing investors a security that emphasizes liquidity, transparency and predictability, Reference REMICs enable Freddie Mac to access the world's capital markets and provide the low-cost funding to enable us to serve our vital housing mission."

Credit Suisse First Boston, Deutsche Bank Securities Inc. and UBS Investment Bank jointly led the transaction. Co-managers on the transaction were Banc of America Securities LLC, Bear, Stearns & Co. Inc., Citigroup, Goldman, Sachs & Co., JP Morgan, Lehman Brothers, Merrill Lynch & Co., Morgan Stanley 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 by an offering circular and related supplements and offering circular supplements.

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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