Press Release: February 8, 2001

WR Hambrecht + Co’s Core Technology To Support the First Dutch Auction of Freddie Mac Two- and Three-Year Reference Notes

February 9th is First of Eight Scheduled Reference Note Auctions in 2001

San Francisco, CA, February 8, 2001—WR Hambrecht + Co announced that tomorrow, February 9, 2001, it will support the first of eight 2001 Reference Note(SM) auctions scheduled by Freddie Mac (NYSE: FRE). This auction, targeted at $5 billion, marks the first time new term-debt global issues have been priced and distributed by a Government Sponsored Enterprise via a Dutch auction.

Borrowing upon its core auction technology, WR Hambrecht + Co has customized a web-based auction platform to Freddie Mac’s specifications. Reference Note auctions will 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.

“The Freddie Mac Reference Note auctions will offer investors highly transparent, market-driven new issue pricing on a regular schedule,” said Jon Prince, Managing Director, Debt Marketing at Freddie Mac. “We welcome WR Hambrecht’s technology and experience in Dutch auctions to help us deliver a first-rate auction product to the debt markets.’