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Freddie Mac Increases Offer of Preferred Stock to $1.1 Billion

Company Also Will Redeem 6.14% Non-Cumulative Preferred Stock

McLean, VA – Freddie Mac (NYSE: FRE) today announced that it has increased its newly offered $500 million of fixed-rate non-cumulative perpetual preferred stock to $1.1 billion. The issue, CUSIP 313400673, is being offered to investors at $25 per share and is expected to price later this week.

Freddie Mac also announced that it will redeem all 12 million shares currently outstanding of its 6.14% non-cumulative preferred stock, issued in June 1997, CUSIP 313400806, effective as of February 12, 2007. The outstanding 6.14% preferred stock will be redeemed at a price of $50.35817 per share, which includes the redemption price of $50 per share plus $.35817 of current period dividends that are accrued through the February 12, 2007 redemption date. Computershare Trust Company, 250 Royall Street, Canton, Massachusetts, 02021 will act as the redemption agent. A Notice of Redemption will be mailed to holders of the 6.14% preferred stock later this week.

The preferred stock is being offered via a syndicate of dealers headed by Goldman Sachs Group and J. P. Morgan Securities. An application is being made to list the preferred stock 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.

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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