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For Immediate Release October
05,
2005
FREDDIE MAC ANNOUNCES AUTHORIZATION TO REPURCHASE COMMON STOCK AND ISSUE PREFERRED STOCKMcLean, VA – The board of directors of Freddie Mac (NYSE: FRE) today authorized the company to repurchase up to $2 billion of outstanding shares of Freddie Mac's common stock and issue up to $2 billion of non-cumulative, perpetual preferred stock, in each case, from time to time depending on market conditions. "This is a first step in managing our capital position to generate better value for shareholders, while at all times remaining well capitalized and well positioned to take advantage of market opportunities," said Richard F. Syron, Freddie Mac chairman and chief executive officer." As we move forward, the board and management will continue to focus closely on the company's capital management." Completion of the authorized capital transactions will have no material impact on Freddie Mac's regulatory capital surplus, including the 30 percent target set in January 2004 by the Office of Federal Housing Enterprise Oversight (OFHEO), the company's safety and soundness regulator. In accordance with the existing capital monitoring framework established by OFHEO in January 2004, Freddie Mac has obtained OFHEO's approval for this common stock repurchase. The repurchase authorization announced today replaces all unused repurchase authority remaining under the common stock repurchase plan approved by the board of directors in September 1997. For additional information, please see our Information Statement Supplement dated today, available on our Web site at 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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