Freddie Prices 1st Reference REMIC

Freddie Mac has priced Reference REMIC R-001, Class AE, the $1.25 billion inaugural issue of real estate mortgage investment conduit securities under a recently announced new program.The issue (CUSIP: 31395RAR9) was priced at 75 basis points over the interpolated Treasury curve, the government-sponsored enterprise said. Class AE is a "guaranteed maturity class" designed to reduce extension risk for investors, a special feature of the new Reference REMICs, Freddie Mac said. Lehman Brothers, Morgan Stanley, and UBS Investment Bank were the joint lead managers of the transaction. Co-managers were Bank of America Securities LLC, Bear, Stearns & Co., Citigroup, Credit Suisse First Boston, Deutsche Bank Securities, Goldman Sachs & Co., and RBS Greenwich Capital. Freddie Mac can be found online at http://www.freddiemac.com.