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Repurchase Operation Details: Callable Notes

Freddie Mac conducts periodic repurchases of outstanding U.S. dollar denominated senior callable notes as a measure to strengthen our asset / liability management, improve focus on our securities’ performance and enhance price transparency of this asset class. The callable repurchase operations complement Freddie Mac’s Reference Notes® and €Reference Notes® securities periodic repurchase operations which have commenced in June 2001 and December 2002, respectively. Freddie Mac conducts its periodic repurchase operations via the Internet with designated dealer group members.

Transparent operations. Freddie Mac provides a two-business day advance public notice of callable repurchases. In exceptional circumstances, we may conduct periodic repurchase operations with one-hour notice. Announcements will include target issues, the submission deadline for offers, the maximum purchase amount, and settlement date. Freddie Mac announces periodic repurchase operations via designated dealers, our web site, and all major newswires.

Periodic repurchase operations may target several issues at the same time, and dealers may submit several offers per issue. Participating dealers submit offers, expressed in yield in increments of one-tenth of a basis point, via the Internet. After the offering submission deadline, Freddie Mac considers all offerings together and accepts those offerings which best meet repurchase operation objectives. Freddie Mac expects to provide an automated confirmation of trade to participating dealers as soon as possible following completion of the repurchase operation. Within 15 minutes following the offering submission deadline, Freddie Mac discloses, via its web site and major newswires, the amount of each issue repurchased and the overall offer-to-cover ratio.

Enhancing Price Transparency and Performance. The callable periodic repurchase operations are designed to enhance price transparency and performance of this asset class. Freddie Mac repurchases only U.S. dollar denominated, senior callable issues that have been outstanding at least 3 months since their most recent issuance or re-opening. Callable notes are eligible for repurchase both before and after their respective call date.

Predictable timetable. Freddie Mac expects to provide a two-business day advance notice, and post results within 15 minutes after the offering submission deadline. Any departure from this timetable should be rare and only for exceptional circumstances. Information sources (such as Bloomberg and Freddie Mac’s website) are updated to reflect any changes in amounts outstanding of callable notes. Repurchased securities are permanently retired.

Freddie Mac will not repurchase callable notes during the period beginning three business days prior to a Syndicated Callable issuance announcement and ending on the settlement date.Settlement of all callable repurchases will be via the Fed wire on the following business day after the trade date ("T+1").

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