FREDDIE MAC ANNOUNCES REFERENCE REMIC^SM SECURITY ISSUE

McLean, VA – Freddie Mac (NYSE: FRE) today announced its intention to issue its next Reference REMIC^SM security. The company expects to offer $2.0 billion of Reference REMIC Series R007, a Guaranteed Maturity Class (GMC) with a final maturity date of May 15, 2016. Reference REMIC Series R007 is expected to price on Wednesday, May 17, 2006, and settle on Monday, May 22, 2006.

Reference REMIC R007 will feature Modifiable and Combinable REMICs (MACRs) which provide for exchanges into and out of floater and inverse floater combinations. The MACRs are eligible for exchange after June 15, 2006. The floater and inverse floater MACRs can subsequently be exchanged for the related underlying Sequential Pay Class.

Goldman Sachs Group, Merrill Lynch and RBS Greenwich Capital will serve as the lead underwriters for Reference REMIC R007. Co-managers of the transaction will be Barclays Capital, Inc., Bear, Stearns & Co. Inc., Citigroup Global Markets, Inc., Deutsche Bank Securities, Inc. and J.P. Morgan Chase. The transaction will also involve a selling group.

Information about the REMIC, of which the GMC is a part, is available in the Offering Circular Supplement on the Mortgage Securities page of the company's Web site at www.FreddieMac.com/mbs. The Offering Circular Supplement can be obtained by entering “R007” in the REMIC Prospectus Lookup box. Copies of the Offering Circular Supplement can also be obtained from the underwriters at the following addresses:

Goldman Sachs Group
Prospectus Department
85 Broad Street
Concourse Level
New York, New York 10004
(212) 902-1171

Greenwich Capital Markets
Prospectus Department
600 Steamboat Road
Greenwich, Connecticut 06830
(203) 618-2318

Merrill Lynch, Pierce, Fenner & Smith Incorporated
Prospectus Department
44B Colonial Drive
Piscataway, New Jersey 08854
(212) 449-8415

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 expressed in these and other forward-looking statements can be found in the company's Information Statement dated June 14, 2005, and related Information Statement Supplements, which are 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 more than four million renters in America.

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