FREDDIE MAC PRICES NEW $3 BILLION 10-YEAR REFERENCE NOTES SECURITY

Record Asian Participation For a 10-Year Security

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it priced its new $3 billion 5% 10-year USD Reference Notes^® security due on July 15, 2014. The issue, CUSIP number 3134A4UU6, was priced at 99.681 to yield 5.041%, or 56.5 basis points more than 10-year U.S. Treasury Notes. The issue will settle on July 16, 2004.

"We continue to experience strong demand and broad distribution of our global debt offerings," said Louise Herrle, vice president, treasurer, and head of global debt funding. "Asian demand for this offering was remarkable, representing over 30 percent of the distribution for this deal – a record level of participation for one of our new 10-year issuances," she said.

The issue was offered via a syndicate of dealers headed by joint-leads Citigroup Global Markets, Inc., J. P. Morgan Chase, and Lehman Brothers.

Including today’s pricing, Freddie Mac has issued $31 billion of Reference Notes securities during 2004. Since the beginning of the year, approximately $33 billion of the company's Reference Notes securities have matured, leaving approximately $230 billion in Reference Notes and Reference Bonds^® securities outstanding.

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

Freddie Mac is a stockholder-owned corporation 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 in America.

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