STT State Street Corporation

Steady Growth Reported in New Mandates and Active and Enhanced Equity Strategies State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), announced today that it has been ranked No. 1 by Pensions & Investments' 2005 Money Managers Survey of leading institutional asset managers, for the fourth consecutive year. With $1.4 trillion in total assets under management,(a) SSgA is the top investment management firm based on total worldwide institutional assets. In 2004, SSgA won significant new business globally, marking a record-breaking year with total assets under management surging 22 percent from the previous year-end. The group won more than 1,100 new mandates worldwide with many clients investing increasingly in SSgA's enhanced and active equity strategies. Thirty-six percent of SSgA's net new institutional assets under management in 2004 were fueled by active and enhanced mandates while assets from enhanced equity mandates grew 83 percent from year-end 2003 to year-end 2004. "We are honored to once again achieve the top ranking in this survey," said William W. Hunt, president and chief executive officer of State Street Global Advisors. "In 2004, we continued to see growth in assets sourced from clients outside of North America. As we build on our track record of industry-leading performance, we will continue to focus on product innovation, client service, and further global expansion throughout Europe and Asia." In 2005, new investment products continue to define SSgA as an innovator of high-performance and solutions-driven investment products for its institutional client base. SSgA's Pooled Asset Liability Matching Solution (PALMs), launched in January 2005, offers a highly effective solution to enable pension funds to match their projected future liabilities within different inflation environments in a cost-effective manner. PALMs provides access to nine pooled funds holding different maturity Limited Price Inflation swaps (LPI, or inflation-linked securities) to protect assets and preserve pensioners' purchasing power in both high and low inflation environments. Similarly, SSgA's Dynamic Risk Allocation Model (DRAM) was developed to enhance plan sponsors' ability to manage funding ratio outcomes. DRAM improves upon traditional strategic benchmarks to better determine how a defined benefit plan's asset mix will respond to changes in the market and/or shifts in wealth and risk premia. State Street Global Advisors also continues to be an innovator of exchange-traded fund (ETF) products. In December 2004, in cooperation with China Asset Management Company, SSgA announced the availability of the first ETF in China--Shanghai 50 ETF, based on the new Shanghai 50 Index. Last September, SSgA through its registered advisor, launched the SPDR(R) O-Strip ETF, the first of its kind to track the newly launched S&P 500 O-Strip Index, and the company serves as marketing agent for streetTRACKS Gold Shares which was launched in November 2004. For a complete list of rankings in this year's Pensions & Investments Money Managers Survey, visit www.pionline.com. About State Street Global Advisors State Street Global Advisors, the investment management group of State Street Corporation, delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $1.4 trillion in investment programs and portfolios (as of March 31, 2005), State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, and Zurich, and offices in 28 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com. (a) As of December 31, 2004 This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those related to the pace at which State Street adds new clients or at which existing clients use additional services, the value of global and regional financial markets, the pace of cross-border investment activity, changes in interest rates, the pace of worldwide economic growth and rates of inflation, the extent of volatility in currency markets, consolidations among clients and competitors, State Street's business mix, the dynamics of markets State Street serves, and State Street's success at integrating and converting acquisitions into its business. Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in State Street's 2004 annual report and subsequent SEC filings. State Street encourages investors to read the corporation's annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, June 8, 2005, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.