Press Release: March 8, 2001

WR Hambrecht + Co’s Core Technology Supports $5 Billion Dutch Auction of Freddie Mac Two-Year Reference Notes(SM)

Second in a Series of Eight Scheduled Reference Note Auctions in 2001

San Francisco, CA, March 8, 2001—WR Hambrecht + Co announced today that its auction technology was used by Freddie Mac (NYSE: FRE) to price $5 billion of 4.750% two-year dollar denominated Reference Notes(SM). The issue was priced at 99.898 to yield 4.804% with a bid to cover ratio of 3.112. This auction, the second in a series of eight scheduled for 2001, is the only the second time new term-debt global issues have been priced and distributed by a Government Sponsored Enterprise via a Dutch auction; the first, also a Freddie Mac Reference Note auction, took place February 9, 2001.

“We were quite pleased with the results of this second Reference Note auction, especially the broad customer participation and the continued unparalleled response time enabled by our auction technology,” said Jerome Lienhard, Freddie Mac Senior Vice President, Investment Funding.

Borrowing upon its core auction technology, WR Hambrecht + Co has customized a web-based auction platform to Freddie Mac’s specifications. Reference Note auctions take place in a sealed-bid Dutch auction format through a designated dealer group. WR Hambrecht + Co has used this same auction technology in all of its on-line auction products: OpenIPO, the auction for initial public offerings; OpenBook, the auction for corporate debt; and OpenFollowOn, the auction for secondary offerings.

“We view our partnership with Freddie Mac as a unique opportunity to share our auction technology platform with a fellow pioneer in financial innovation,” said Bill Hambrecht, Chairman and CEO of WR Hambrecht + Co. “Like WRH+Co, Freddie Mac continues to strive to increase transparency in capital markets.”

Freddie Mac’s Reference Notes were designed to raise capital for housing in the United States by providing investors with large, liquid bellwether securities. Including the issue priced today, Freddie Mac has $145.50 billion in outstanding Reference Notes and Bonds.