Including today's offerings, Freddie Mac has issued $43 billion of Reference Notes securities during 2008 and has approximately $264 billion in Reference Notes and Reference Bonds(R) securities outstanding.

This announcement is not an offer to sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac's proxy statement, its Registration Statement on Form 10 dated July 18, 2008 and all documents that Freddie Mac files with the Securities and Exchange Commission ("SEC") pursuant to Section 13(a), 13(c) or 14 of the Securities Exchange Act of 1934.

Freddie Mac's press releases sometimes contain forward-looking statements. A description of factors that could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements can be found in the company's Registration Statement on Form 10 dated July 18, 2008 and its reports on Form 10-Q and Form 8-K, filed with the SEC and available on the Investor Relations page of the company's Web site at www.FreddieMac.com/investors and the SEC's Web site at www.sec.gov.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac raises capital on Wall Street and throughout the world's capital markets to finance mortgages for families across America. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters. www.FreddieMac.com

SOURCE Freddie Mac

http://www.freddiemac.com

Asian banks have huge investments in U.S. mortgage-backed securities. The People Bank of China holds an estimated $340 billion in Freddie Mac and Fannie Mae securities.

"The fact that they (the U.S. government) will be able to buy mortgage-backed securities from other banks is really important," William de Vijlder, chief investment officer at Fortis Investment Management in Brussels told the Times.

The rescue "goes a long way to stopping this housing deflation," said Bill Gross, the co-chief investment officer of bond investment firm Pimco.

While the move has bumped investor confidence in the near term, analysts said long-term issues -- measured, in part, by the unemployment rate hitting a five-year high at 6.1 percent in August -- remain on the table.

www.upi.com

The Charlotte, North Carolina-based bank inherited the loans when Steel's predecessor, Ken Thompson, spent $24.2 billion in 2006 to buy California lender Golden West Financial Corp.

Wachovia ousted Thompson in June, and the following month hired Steel from the U.S. Treasury Department, where he was deputy undersecretary for domestic finance.

Option ARMs let borrowers pay less than the interest and principal due each month. Delinquencies have soared, and many borrowers now owe more than their homes are worth. Fifty-eight percent of the Pick-a-Pay loans are in California, one of the hardest-hit housing markets. Wachovia has stopped offering option ARMs.

Steel said Wachovia is approaching the portfolio as a "distressed investment manager" and treating it as a "separate project" from the rest of its mortgage operations.

It installed capital management chief David Carroll to oversee the portfolio, and Steel said Wachovia is in talks with outside companies about various aspects of managing it.

Merrill Lynch & Co analyst Edward Najarian on Tuesday downgraded Wachovia to "underperform" from "neutral," lowered his price target on the stock to $16 from $18, and cut his earnings forecast through 2010.

Najarian said cumulative option ARM losses could reach 15 percent to 17 percent because many of the loans cannot be refinanced into less risky mortgages.

He also said rising unemployment and a slowing economy could boost losses in the bank's $217 billion commercial real estate and commercial and industrial loan portfolios.

In morning trading, Wachovia shares were down $1.43, or 7.5 percent, at $17.56 on the New York Stock Exchange. They began the year at $38.03, but have more than doubled since bottoming at $7.81 on July 15.

Steel is trying to cut annual costs by $1.5 billion, sell "hundreds of millions of dollars" of non-core assets, reduce loans and securities by $20 billion this year, and eliminate 11,350 jobs, or about 9 percent of Wachovia's work force. Wachovia lost a record $9.11 billion in the second quarter.

The bank said it has added $20 billion of certificates of deposit since it began offering higher rates a few months ago. Eighty-three percent is new money to the bank, it said.

Wachovia also said it expects a pre-tax charge of $171 million in the third quarter related to its sale this quarter of Fannie Mae and Freddie Mac preferred stock, which it said it completed by July 21.

Despite the problems, Steel said "there's nothing we see that doesn't make us exceedingly optimistic about the businesses going on long-term."

On Monday, Steel announced the hiring of David Zwiener, a managing director of private equity firm Carlyle Group [CYL.UL], as chief financial officer.

Wachovia said it awarded Zwiener a $500,000 annual salary, annual incentives that could reach $7.5 million, a $4 million cash bonus to replace amounts he might have earned at Carlyle, 1 million stock options, and 800,000 restricted shares.

(Editing by John Wallace)

((jon.stempel@thomsonreuters.com +1 646 223 6317; Reuters Messaging: jon.stempel.reuters.com@reuters.net)) Keywords: WACHOVIA/

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"The Express Branch complements our downtown Northampton office by offering customers the convenience of drive up banking and extended hours," said Patty Covalli, Personal Banking Officer in Northampton. "It's easy for Northampton area residents to bank with us wherever they live, work or travel." The downtown Northampton office opened in June 2006.

In announcing the opening of the new branch, Richard B. Collins, President and Chief Executive Officer of United Bank, reaffirmed the Bank's stability and financial position.

"With more than $1 billion in assets and $226 million in capital, the Company has more than adequate resources to meet the needs of its customers in today's challenging economy," said Collins. "These resources are further strengthened by our consistent financial performance, including approximately $4 million in earnings during the first half of 2008." With a Tier 1 risk- based capital ratio of approximately 19%, the Bank has more than three times the level of capital required by regulators to be considered "well capitalized."

A key factor contributing to United Bank's strong financial performance is its strict adherence to prudent lending standards, Collins added. "We have not offered any of the 'sub-prime' or 'Alt-A' mortgage programs that have caused so much turmoil in the market today," he said. United Bank does not own any equity or debt investments in Fannie Mae, Freddie Mac, Lehman Brothers or AIG.

"United Bank's loan portfolio -- comprised of loans to local people and businesses -- continues to perform well," Collins said. "We believe this reflects the strong values of our customers, as well as our prudent lending policies."

Deposits at United Bank are insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000 per depositor ($250,000 for retirement accounts).

United Financial Bancorp, Inc. is a publicly owned corporation and the holding company for United Bank, a federally chartered savings bank headquartered at 95 Elm Street, West Springfield, MA 01090. The Company's common stock is traded on the NASDAQ Global Select Market under the symbol UBNK. United Bank provides an array of financial products and services through its 16 branch offices located throughout Western Massachusetts. Through its Wealth Management Group and its partnership with NFP Securities, Inc., the Bank is able to offer access to a wide range of investment and insurance products and services, as well as financial, estate and retirement strategies and products. For more information regarding the Bank's products and services and for United Financial Bancorp, Inc. investor relations information, please visit www.bankatunited.com.

Except for the historical information contained in this press release, the matters discussed may be deemed to be forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties, including changes in economic conditions in the Company's market area, changes in policies by regulatory agencies, fluctuations in interest rates, demand for loans in the Company's market area, competition, and other risks detailed from time to time in the Company's SEC reports. Actual strategies and results in future periods may differ materially from those currently expected. These forward-looking statements represent the Company's judgment as of the date of this release. The Company disclaims, however, any intent or obligation to update these forward-looking statements.

For More Information Contact:

Dena M. Hall, Vice President

(413) 787-1700

SOURCE United Financial Bancorp, Inc.

http://www.bankatunited.com