FREDDIE MAC ANNOUNCES COMPLIANCE WITH FEDERAL RESERVE PAYMENTS SYSTEM RISK POLICY CHANGES

McLean, VA – Freddie Mac (NYSE: FRE) today announced that the company has commenced conducting business under the Federal Reserve’s revised Payments System Risk (PSR) policy, ahead of the July 20, 2006, implementation date.

In September 2004, the Federal Reserve revised its daylight credit policies for payments into the Fedwire system, effective July 20, 2006. The revised policy requires Freddie Mac to fully fund its accounts in the system to the extent necessary to cover payments on its debt and mortgage-related securities each day.

Freddie Mac has been actively preparing for the changes during the past two years, and has responded by implementing a strategy that aims to fully fund the company’s daily payment obligations by 11 a.m. Eastern Time. Freddie Mac began testing its new business practices in April 2006 and is now operating under the revised Fed policy. The company believes that the revisions to the Federal Reserve’s PSR policy will not have a material adverse effect on Freddie Mac’s liquidity.

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 more than four million renters in America.

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