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Repurchase Operation Details: Reference Notes® Securities

Freddie Mac conducts periodic repurchases of outstanding Reference Notes® securities for asset/liability management purposes. This program reflects the input of numerous domestic and overseas investors and safeguards the transparency, liquidity, and predictability of Reference Notes securities. Repurchase operations focus exclusively on older, off-the-run issues and preserve the outstanding supply of active, on-the-run Reference Notes securities. Freddie Mac conducts its periodic repurchase operations via the Internet with designated dealer group members.

Transparent operations. Freddie Mac provides overnight advance public notice of Reference Notes securities repurchases. In exceptional circumstances, we may conduct periodic repurchase operations with one-hour notice. Announcements will include target issues, the cut-off time for offers, and the maximum purchase amount. Freddie Mac announces periodic repurchase operations via designated dealers, our website, 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 on a yield basis. After the cutoff time, Freddie Mac considers all offerings together and accepts those offerings which best meet repurchase operation objectives. Freddie Mac expects to return an automated response to dealers within 5 minutes after the cut-off time for submission of offers. Within 15 minutes following repurchase operations, Freddie Mac discloses, via its website and major newswires, the amount of each issue repurchased and the overall offer-to-cover ratio.

Liquid Yield Curve. In order to maintain a liquid Reference Notes securities yield curve Freddie Mac will focus the periodic repurchase operations on Reference Bonds securities and off-the-run Reference Notes securities. Freddie Mac will maintain an outstanding balance of at least the greater of $3 billion for Reference Notes securities, and at least $1 billion for Reference Bonds securities.

Predictable timetable. Freddie Mac expects to provide overnight advance notice and post results within 15 minutes after completing repurchase operations. Any departure from this timetable should be rare and only in exceptional circumstances. Freddie Mac's website displays final issue size, repurchase activity and current outstanding supply, minimum outstanding size, and remaining amounts eligible for repurchases. Information services (such as Bloomberg) are updated to reflect any changes in amounts outstanding of Reference Notes securities. Repurchased securities are permanently retired.

Freddie Mac will not repurchase Reference Notes issues from the same maturity sector as any issue being currently offered pursuant to the Reference Notes securities Funding Calendar. A lockout period – extending from one week prior to the monthly Reference Notes securities announcement date through the ensuing settlement date – will be observed.

Settlement of all Reference Notes securities repurchases will be via the Federal Reserve's book-entry system on the first business day after the trade date ("T+1").

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