Freddie Mac Announces FreddieNotes(SM), A New, Callable Medium Term Note Funding Program

FreddieNotes Offer Unique Estate-planning Feature



Apr 02, 2001, 01:00 ET from Freddie Mac

    MCLEAN, Va., April 2 /PRNewswire/ -- Freddie Mac (NYSE:   FRE) today
 announced the introduction of FreddieNotes(SM), the newest addition to the
 company's family of financial products.
     FreddieNotes, which may be purchased in a minimum amount of $1,000 with
 increments of $1,000 thereafter, are callable medium term notes with a unique
 estate-planning feature.  In the event of the death of the beneficial owner,
 the survivor's option enables holders of FreddieNotes, through their
 authorized representatives, to redeem the securities at par.  Certain
 limitations apply, including limitations on the amount of FreddieNotes that
 may be redeemed in any one year.  If these securities are sold in advance of
 death or maturity, the seller may receive less than par value due to market
 conditions.
     "This new product, which was developed to meet investor demand for high
 quality fixed income offerings, diversifies our investor base -- thus
 strengthening our ability to fulfill our mission of providing decent and
 accessible housing for America's families," said Jerome Lienhard, Freddie Mac
 Senior Vice President, Investment Funding.
     FreddieNotes are unsecured triple-A-rated senior debt offered on a best
 efforts basis once a week beginning April 2, 2001.  Structures for the week's
 offerings will be posted on multiple websites for easy reference.  Weekly
 postings can be found on http://www.freddienotes.com,
 http://www.directnotes.com (DANs) and the Freddie Mac debt securities website
 during the FreddieNotes order period, Monday to Monday.  The securities will
 settle on the following Thursday.  FreddieNotes will be distributed through
 the LaSalle Broker-Dealer Services Division (LaSalle), a division of ABN AMRO
 Incorporated.
     This announcement is neither an offer to sell nor a solicitation of offers
 to buy any of these securities. Any such offering will be made only by an
 offering circular, offering circular supplement, and pricing supplement.
 
     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, see the Company's Web site:
 http://www.freddiemac.com .
 
 

SOURCE Freddie Mac
    MCLEAN, Va., April 2 /PRNewswire/ -- Freddie Mac (NYSE:   FRE) today
 announced the introduction of FreddieNotes(SM), the newest addition to the
 company's family of financial products.
     FreddieNotes, which may be purchased in a minimum amount of $1,000 with
 increments of $1,000 thereafter, are callable medium term notes with a unique
 estate-planning feature.  In the event of the death of the beneficial owner,
 the survivor's option enables holders of FreddieNotes, through their
 authorized representatives, to redeem the securities at par.  Certain
 limitations apply, including limitations on the amount of FreddieNotes that
 may be redeemed in any one year.  If these securities are sold in advance of
 death or maturity, the seller may receive less than par value due to market
 conditions.
     "This new product, which was developed to meet investor demand for high
 quality fixed income offerings, diversifies our investor base -- thus
 strengthening our ability to fulfill our mission of providing decent and
 accessible housing for America's families," said Jerome Lienhard, Freddie Mac
 Senior Vice President, Investment Funding.
     FreddieNotes are unsecured triple-A-rated senior debt offered on a best
 efforts basis once a week beginning April 2, 2001.  Structures for the week's
 offerings will be posted on multiple websites for easy reference.  Weekly
 postings can be found on http://www.freddienotes.com,
 http://www.directnotes.com (DANs) and the Freddie Mac debt securities website
 during the FreddieNotes order period, Monday to Monday.  The securities will
 settle on the following Thursday.  FreddieNotes will be distributed through
 the LaSalle Broker-Dealer Services Division (LaSalle), a division of ABN AMRO
 Incorporated.
     This announcement is neither an offer to sell nor a solicitation of offers
 to buy any of these securities. Any such offering will be made only by an
 offering circular, offering circular supplement, and pricing supplement.
 
     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, see the Company's Web site:
 http://www.freddiemac.com .
 
 SOURCE  Freddie Mac

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