FREDDIE MAC ANNOUNCES TENDER OFFERS FOR UP TO €7 BILLION OF €REFERENCE NOTES® SECURITIES

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it will conduct cash tender offers for the purchase for cash of up to €7 billion in aggregate principal amount of a targeted group of €Reference Notes® securities during the week of October 16, 2006.

Related Links
Offer to Purchase [PDF 113K]

Freddie Mac will offer to purchase for cash the targeted securities from investors through Goldman Sachs International (Goldman Sachs), the designated dealer manager for the offers. The amounts of each series of securities that are purchased will be subject to the €7 billion cap and the acceptance priority level for each security provided in the table below.

The tender offer period will commence on Monday, October 16, 2006, at 9 a.m. London Time and expire at 5 p.m. London Time, on Friday, October 20, 2006, unless extended. Holders of the targeted securities wishing to submit orders to tender may do so by calling Goldman Sachs at anytime between 9 a.m. and 5 p.m. London Time during the period in which the offers are open. Securities accepted for purchase will be priced on Monday, October 23, 2006. Results of the tender offers will be available on Freddie Mac's Debt Securities Web page at www.FreddieMac.com/debt on Monday, October 23, 2006.

The table below illustrates how the purchase price for each security tendered pursuant to the applicable offer to purchase will be determined. The purchase price will be determined in the manner described in the Offer to Purchase dated October 16, 2006, by reference to the applicable fixed spread (listed below) over the applicable reference swap rate, plus an amount equal to any accrued and unpaid interest to but excluding the date of payment of the purchase price. Securities purchased will settle on Thursday, October 26, 2006.

This announcement is neither an offer to sell nor a solicitation of offers to buy any of these securities. Neither Freddie Mac, nor the dealer manager, nor the Information Agents make any recommendation that any holder of the securities tender or refrain from tendering all or any portion of the principal amount of such holder's securities. Holders must make their own decisions whether to tender securities, and if so, decide on the principal amount of securities to tender. Freddie Mac's securities are obligations of Freddie Mac only. The securities, including any interest or return of discount on the securities, are not guaranteed by and are neither debts nor obligations of the United States or any federal agency or instrumentality other than Freddie Mac. The tender offers are being made only upon the terms and subject to the conditions set forth in the Offer to Purchase dated October 16, 2006.

Copies of the Offer to Purchase may be obtained on Freddie Mac’s Web site at www.FreddieMac.com/debt or from the Information Agents for the Offers: D.F. King & Co., Inc. at (212) 269-5550 (for Banks and Brokers) or (800) 488-8095 (toll free) or at 44 207 920 9700 (London), or Fortis Banque Luxembourg at 352-4242-2000. Questions regarding the Offers may be directed to Goldman Sachs International at 44 (20) 7774-5196, or in the United States at (800) 828-3182 (toll free) and (212) 902-9077 (collect).

This announcement does not constitute an invitation to participate in the tender offers in or from any jurisdiction in or from which, or to or from any person to or from whom, it is unlawful to make such offer under applicable securities laws or otherwise.

The distribution of materials relating to the tender offers, and the transactions contemplated by the tender offers, may be restricted by law in certain jurisdictions where it is legal to do so. The tender offers are void in all jurisdictions where it is prohibited. If materials relating to the tender offers come into your possession, you are required by Freddie Mac to inform yourself of and to observe all of these restrictions. The materials relating to the tender offers do not constitute, and may not be used in connection with, an offer or solicitation in any place where offers or solicitations are not permitted by law. If a jurisdiction requires that the tender offers be made by a licensed broker or dealer and a dealer manager or any affiliate of a dealer manager is a licensed broker or dealer in that jurisdiction, the tender offers shall be deemed to be made by the dealer manager or such affiliate on behalf of Freddie Mac in that jurisdiction.

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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