FREDDIE MAC TO ISSUE PREFERRED STOCK

McLean, VA – Freddie Mac (NYSE: FRE) announced today that it will issue non-cumulative perpetual preferred stock. The transaction will be of benchmark size and will include two classes of preferred stock – a fixed-rate dividend class, CUSIP 313400699, and a variable-rate dividend class, CUSIP 313400715. Both classes are expected to price later this week.

The preferred stock will be offered via a syndicate of dealers headed by Bear, Stearns & Co. Inc. and UBS Securities LLC. An application will be made to list the classes on the New York Stock Exchange.

Information about the transaction is available in the preliminary Offering Circular on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors/preferred_stock.html. Copies of the preliminary Offering Circular can also be obtained from the underwriters at the following addresses:

Bear, Stearns & Co. Inc.
[add address and telephone number]

UBS Securities LLC
677 Washington Boulevard
Stamford, Connecticut 06901
(888) 722-9555 ext. 1088

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.

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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