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 $1.75 billion of Reference REMIC Series R008, a Guaranteed Maturity Class (GMC) with a final maturity date of July 15, 2023. The offered class will be a Sequential Pay Floating Rate Class that is subject to a maximum rate. Reference REMIC Series R008 is expected to price on Wednesday, July 19, 2006, and settle on Monday, July 24, 2006.

“With R008, Freddie Mac has broadened the Reference REMIC product line to reach investors who seek floating-rate assets with superior liquidity,” said Mark Hanson, Freddie Mac vice president, mortgage funding. “Our objective is to expand the market for mortgages by combining the advantages of structured cash flows, with the liquidity of large, transparent, more predictable issues. R008 provides investors with a structured floating-rate investment that features shortened stated final maturity, meaningful size and price transparency.”

Deutsche Bank Securities, Inc., Goldman Sachs Group and Lehman Brothers will serve as the lead underwriters for Reference REMIC R008. Co-managers of the transaction will be Banc of America Securities, Bear, Stearns & Co. Inc., Credit Suisse, J.P. Morgan Chase and Morgan Stanley. 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 “R008” in the REMIC Prospectus Lookup box. Copies of the Offering Circular Supplement can also be obtained from the underwriters at the following addresses:

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

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

Lehman Brothers Inc.
c/o ADP Financial Services
Prospectus Department
1155 Long Island Avenue
Edgewood, New York 11717
(631) 254-7106

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 28, 2006, 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 more than four million renters in America.

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