Business: Freddie Mac (Federal Home Loan Mortgage Corp.), Variable Rate, Non-Cumulative Preferred Stock, liquidation preference $50 per share, redeemable at the issuer's option on 4/01/2003 and every two years thereafter on April 1 at $50 per share plus declared and unpaid dividends, and with no stated maturity. Variable rate noncumulative distributions are paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the date fixed by the board, not more than 45 or less than 10 days prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The initial dividend rate is 4.817% with a rate cap 11%. The variable dividend rate will be reset on 4/01/2003 and every 2 years thereafter on April 1, based on 2-year CMT Rate plus 0.10%. Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.