FREDDIE MAC SELLING SYSTEM WINS INNOVATOR AWARD

Application Development Trends Magazine Hails Efficient Replacement of Legacy Systems

McLean, VA – Freddie Mac’s (NYSE:FRE) integrated web-based Selling System has received the 2005 Innovator Award for outstanding component-based development from Application Development Trends, a nationally respected software trade industry publication. The winners of its 11^th Annual Innovator Awards competition appeared in the magazine’s April 2005 issue.

In making the award, the magazine praised Freddie Mac’s Selling System for providing "customers with an intuitive, web-based system that is easier to use (and provides) a full funding cycle on loans that can be completed faster than previously and improved flexibility in selling loans to Freddie Mac."

The award was presented to Ed Albrigo, vice president of change management, whose team oversaw the development and implementation of Freddie Mac’s Selling System.

"The Innovator Award further demonstrates Freddie Mac’s deep determination to elevate our customer’s business experience by deploying world-class technology," said Freddie Mac senior vice president of operations, Mike May. "Congratulations to Ed Albrigo, single family technology services vice president Kim Petty, the Project Enterprise and Information Technology Group teams, and everyone else who helped to give our customers the solid integrated technology platform they need to compete in a changing marketplace."

The Innovator Awards recognize information technology departments that successfully develop and implement innovative applications that provide significant business and financial benefits. Application Development Trends is published by 101communications, an integrated B2B media company targeting the information technology community.

"Application Development Trends congratulates Freddie Mac, winner of the Component-based Development category," said Michael Alexander, editor-in-chief. "What distinguishes this year’s winners is that all of them revamped existing applications that were functioning well and made them even better. Rather than say, ‘It’s not broke, so let’s not fix it; this year’s winners said, ‘Let’s do even better.’"

The awards judges specifically praised Freddie Mac for taking the initiative to replace its "trusty" legacy systems with a new technology, using a business rules management system, to streamline several core processes, and rolling out the Selling System via an "iterative development approach" that allowed users to shape the system’s evolution and refinement by providing real time feedback. The iterative approach also increased the Selling System’s overall chance for success by allowing for a measured migration from the older systems the magazine said.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to support homeownership and rental housing. Freddie Mac purchases single-family and multifamily residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage pass through securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened doors for one in six homebuyers and more than two million renters in America.

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