Press Release: June 7, 2001

WR Hambrecht + Co’s Core Technology Supports $4 Billion Dutch Auction of Freddie Mac Two-Year Reference Notes®

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

San Francisco, CA, June 7, 2001—WR Hambrecht + Co announced today that its auction technology was used by Freddie Mac (NYSE: FRE) to price $4 billion of 4.5% two-year USD Reference Notes® due June 15, 2003. The issue was priced at 99.962162 to yield 4.52% with a bid to cover ratio of 3.21.

In response to investor input, with this auction Freddie Mac is increasing the maximum permissible non-competitive bid size to $100 million and the size of the non-competitive pool to 20% of the offering amount.

Freddie Mac expects to expand its successful two- and three- year USD Reference Note Internet-based auctions to include additional maturities in 2002, although no specific offerings were announced.

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.

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.

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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 passthrough securities and debt instruments in the capital markets. Over the years, Freddie Mac has opened the doors for one in six homebuyers and more than two million renters across America. Freddie Mac is the winner of the International Financing Review’s North American Borrower of the Year and Agency Borrower of the Year awards for the year 2000. For additional information about Freddie Mac, please see the Company’s web site: www.Freddiemac.com.