FREDDIE MAC ANNOUNCES PRELIMINARY ESTIMATES OF EXPOSURE TO LOSSES AS A RESULT OF GULF COAST HURRICANES

McLean, VA – Freddie Mac (NYSE: FRE) today announced preliminary estimates that its after-tax losses to be recorded in the third quarter of 2005 as a result of Hurricanes Katrina and Rita are expected to be in a range of $150 million to $300 million.

“Our primary concern continues to be ensuring that affected borrowers and lenders are obtaining the relief needed to rebuild their lives and get back on their feet financially,” said Richard F. Syron, Freddie Mac chairman and chief executive officer. “We’re doing everything we can to keep mortgage money flowing to the Gulf region and help folks hardest hit by these catastrophic storms.”

Freddie Mac will continue to assess the impact of Hurricanes Katrina and Rita on its financial position and results of operations for the third quarter and subsequent periods. The company expects that this estimate represents most of the losses from storm-related damage. Freddie Mac’s exposure to losses as a result of these storms primarily arises from the company’s guarantee of principal and interest on the Participation Certificates (PCs) and Structured Securities the company issues and the company’s portfolio holdings of mortgages and mortgage-related securities with underlying collateral in the affected areas.

The company’s estimates of the financial impact of Hurricanes Katrina and Rita involve the exercise of considerable judgment and reflect a combination of evaluations, model results and prior experience with natural disasters. These estimates are inherently imprecise due to a variety of factors, including the unprecedented nature of the disaster, the inability to access portions of the affected areas and the preliminary nature of the information used to prepare these estimates. There can be no assurance that the company’s ultimate losses associated with these events will be within the range described above.

This press release and additional information will be included in an Information Statement Supplement to be posted on our Web site, 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 nearly four million renters in America.

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