FREDDIE MAC ANNOUNCES NEW 12-YEAR SUBORDINATED DEBT SECURITY (FREDDIE SUBS®) VIA EXCHANGE AND CASH OFFERS

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it will issue a new 12-year bullet subordinated debt security, Freddie SUBS®, due on December 14, 2018 for cash and in exchange for three series of outstanding Freddie SUBS. The company will accept up to a total of approximately $2 billion of outstanding Freddie SUBS listed in the table below in exchange for the new 12-year security. Investors who wish to participate in the exchange offers must instruct the securities’ holders to submit an electronic letter of transmittal through the exchange website (https://www.corporateactionprocessing.com) before the offers expire at 5:00 p.m. EST on Friday, December 8, 2006.

In addition, Freddie Mac will offer at least $500 million of the new security for cash. A minimum of $1 billion and a maximum of approximately $2.5 billion in aggregate principal amount of the new Freddie SUBS will be issued in the exchange offers and cash offering combined.

Preliminary results of the exchange will be announced by 9:00 a.m. EST on Monday, December 11, 2006. The new security offering price, exchange ratios and other final exchange information will be announced by 12:00 noon EST, or as soon thereafter as possible, on Monday, December 11, 2006. Holders must deliver securities tendered in the exchanges by 3:00 p.m. EST on Wednesday, December 13, 2006. The new issue, CUSIP number 3134A4ZZ0, will settle on Thursday, December 14, 2006.

The new 12-year Freddie SUBS security will be offered via a syndicate of dealers headed by Bear, Stearns & Co. Inc. and Merrill Lynch, Pierce, Fenner & Smith Incorporated. Bear Stearns and Merrill Lynch will also act as the dealer managers for the exchange offer. An application will be made to have the issue admitted for trading on the Euro MTF market of the Luxembourg Stock Exchange.

Freddie SUBS securities are part of a series of commitments, initiated in late 2000 and updated in September 2005, designed to enhance market discipline, liquidity and capital. Excluding today’s offering, Freddie Mac has approximately $5.75 billion in Freddie SUBS outstanding.

Subject to the conditions of the offer, Freddie Mac will accept in the exchanges two callable Freddie SUBS securities – the 6.25% security due March 5, 2012 (callable March 5, 2007) and the 5.25% security due November 5, 2012 (callable November 5, 2007) – at a fixed agency option-adjusted spread (AOAS), and one non-callable Freddie SUBS security – the 5.875% security due March 21, 2011 – at a fixed yield spread to the new 12-year Freddie SUBS security.

The company has prioritized the Freddie SUBS securities eligible for exchange and will accept all validly tendered exchange offers in the order of those priorities, subject to the exchange cap of $2 billion. If the amount of the exchange cap remaining for any exchange offer is less than the exchange securities tendered for that exchange offer, Freddie Mac will prorate the tenders submitted and accept them as so prorated. The new Freddie SUBS will only be issued in minimum denominations of $100,000 and additional increments of $1,000. Any lower principal amount of exchange securities tendered will be purchased by Freddie Mac for cash. For full details, please consult the exchange supplement dated December 4, 2006 available at www.FreddieMac.com/debt.

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 more than four million renters in America.

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