FREDDIE MAC TO ISSUE NEW $4 BILLION FIVE-YEAR REFERENCE NOTES® SECURITY

Company Also Issues Quarterly Funding Announcement and Modifies 2006 Funding Calendar

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it plans to issue a new $4 billion five-year USD Reference Notes® security due on January 18, 2011. The issue, CUSIP number 3134A4VJ0, will be priced on December 15, 2005, and will settle on December 16, 2005.

The new five-year Reference Notes security will be offered via a syndicate of dealers headed by Banc of America Securities, Goldman Sachs Group and UBS Investment Bank. An application will be made to list the issue on the Euro MTF market of the Luxembourg Stock Exchange.

Separately, Freddie Mac today also provided its Quarterly Funding Announcement [PDF 151K], detailing expected funding activity for the first quarter of 2006, as well as several funding program modifications. The Quarterly Funding Announcement is available on Freddie Mac's Web site at www.FreddieMac.com/debt.

Freddie Mac also announced a modification to its 2006 funding calendar. Freddie Mac's 2006 calendar now includes optional monthly issuance windows for its Reference REMIC^SM securities. Issuance of Reference REMIC securities will be subject to market conditions, including the availability of collateral and investor interest. Each month, Freddie Mac will announce whether it plans to use the optional issuance window and, when relevant, confirm the timing of when it expects to issue a Reference REMIC security. An updated 2006 funding calendar [PDF 865K] is now available on the Debt and Mortgage Securities pages.

"Integrating our 2006 funding plans for Reference Notes and Reference REMICs reflects our desire to attract a broad base of investors to the U.S. housing market," said John Radwanski, vice president, debt funding, and assistant treasurer. "The calendar provides a schedule of optional issuance dates for our suite of Reference products, while providing flexibility for offering securities at the right size and maturity."

"Adding the optional issuance weeks for Reference REMIC securities to the funding calendar expands the transparency and predictability of the Reference REMIC program," said Mark Hanson, vice president of mortgage funding. "We're committed to giving investors and dealers a clear indication of when we are coming to the market."

Including today's new offerings, Freddie Mac has issued $48.1 billion of Reference Notes securities during 2005 and has $212.9 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 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 nearly four million renters in America.

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