Press Release: June 25, 2001

WR Hambrecht + Co Technology Supports Second Freddie Mac Repurchase Operation for Reference Bonds(SM)

Second of periodic repurchases by FRE of off-the-run Reference Notes(SM) and Bonds(SM)

San Francisco, CA, June 25, 2001—WR Hambrecht + Co announced today that its technology was used to support Freddie Mac (NYSE: FRE) in their repurchase operation of $471 million of their 7.00% Reference Bonds(SM) due March 15, 2010. The overall offer-to-cover ratio was 7.01 to 1.

The technology for the Periodic Repurchase Operations is an extension of the auction technology WR Hambrecht + Co customized for the Freddie Mac Reference Note(SM) auctions beginning in February 2001. Unlike WRH+Co’s other auction products, the Repurchase program is a reverse auction with multiple sellers, the participating dealers, submitting offers to a single buyer, Freddie Mac. Other government agencies conduct periodic repurchases of their notes and bonds but they are all done through traditional methods.

“We are proud to expand our partnership with Freddie Mac,” said William R. Hambrecht, Chairman and CEO of WR Hambrecht + Co. “They continue to be an innovative leader in capital markets.”

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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 Euromoney’s Borrower of the Year award for 2001. For additional information about Freddie Mac, see the company’s website: www.Freddiemac.com.