FREDDIE MAC TO ISSUE NEW $3 BILLION TWO-YEAR REFERENCE NOTES® SECURITY

Company also Provides Quarterly Funding Announcement

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it will issue a new $3 billion two-year USD Reference Notes® security due on April 15, 2007. The issue, CUSIP number 3134A4UZ5, will be priced on March 3, 2005 and will settle on March 4, 2005.

The two-year Reference Notes security will be offered via a syndicate of dealers led by Banc of America Securities, Deutsche Bank Securities, Inc., and Goldman Sachs Group. An application will be made to list the issue on the Luxembourg Stock Exchange.

Including today's offering, Freddie Mac has issued $9 billion of Reference Notes securities during 2005. Since the beginning of the year, approximately $16 billion of the company's Reference Notes securities have matured, leaving approximately $207 billion in Reference Notes and Reference Bonds® securities outstanding.

Separately, Freddie Mac today also provided its Quarterly Funding Announcement [PDF 146K] , detailing expected funding activity for the second quarter of 2005. The Quarterly Funding Announcement is available on Freddie Mac's website at www.FreddieMac.com/debt.

"Today's Quarterly Funding Announcement continues our commitment to provide advance notice to the market about our upcoming funding plans," said Jerome Lienhard, Freddie Mac treasurer and senior vice president for funding and investor relations. "Building on the strengths of our 2005 Debt Funding Calendar, our Quarterly Funding Announcement ensures that our program remains predictable and transparent by providing the market timely and comprehensive information about anticipated future Freddie Mac debt issuance."

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's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Information Statement dated September 24, 2004, which is available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors.

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 two million renters in America.

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