FREDDIE MAC SETTLES $4.0 BILLION STRIP DEAL

McLean, VA – Freddie Mac (NYSE:FRE) today announced that it settled a $4.0 billion 30‑year 5.5% Gold MACS Strip security.  The Weighted Average Coupon (WAC), Weighted Average Remaining Maturity (WARM) and Weighted Average Loan Age (WALA) are 6.20%, 358 months and 1 month, respectively.  The issue, designated FHS 244, settled today, November 22, 2006.  The Interest-Only (IO) CUSIP is 31282YXC8; the Principal-Only (PO) CUSIP is 3128HWJC2.

Bear, Stearns & Co. Inc. served as the lead underwriter for the transaction.  Co-managers of the transaction were Banc of America Securities, Barclays Capital, Inc., Citigroup Global Markets, Inc., Credit Suisse, Deutsche Bank Securities, Inc., Goldman Sachs Group, HSBC Securities, J.P. Morgan Chase, Lehman Brothers, Merrill Lynch, Morgan Stanley, RBS Greenwich Capital and UBS Investment Bank.

This announcement is neither an offer to sell nor a solicitation to buy any of these securities.  Any such offering will be made only by an offering circular and offering circular supplement.

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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