FREDDIE MAC PRICES NEW $5 BILLION FIVE-YEAR REFERENCE NOTES^® SECURITY

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it priced its new $5 billion 3.375% five-year USD Reference Notes^® security due on April 15, 2009. The issue, CUSIP number 3134A4UQ5, was priced at 99.587 to yield 3.463%, or 39 basis points more than five-year U.S. Treasury Notes. The issue will settle on March 5, 2004.

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 this issue, Freddie Mac has $235 billion in outstanding Reference Notes^® securities.

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 purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened doors for one in six homebuyers and more than two million renters in America.

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