STT State Street Corporation

State Street Global Markets(SM), the investment research and trading arm of State Street Corporation (NYSE: STT), announced today that it has successfully completed a EUR 1.4 billion portfolio transition for a portion of the Volkswagen pension fund in Germany. State Street has been providing custody and accounting services for Volkswagen since 1997. Due to a recent change to Volkswagen's asset allocation and asset management strategies, State Street's transition management team successfully completed the transition which involved a complex move to a masterfund and a simultaneous multi-asset class restructuring of the portfolio with the appointment of a number of specialist managers, including an overlay mandate. "With the increased scrutiny on trading costs, pension funds continue to recognize the value that an experienced transition manager can bring to the investment process," said Lachlan French, head of transition management for State Street in Europe. As the leading provider of transition management services to institutional investors, State Street completed more than 800 transitions globally in 2004 comprising approximately EUR 250 billion in total assets. With more than 80 experienced professionals, State Street Global Markets' transition management team operates on a 24 hours-a-day basis from offices in Europe, North America and Asia. "State Street worked together with us to understand the complex facets involved in our portfolio restructuring," said Albrecht Moehle, board member of Volkswagen Pension Trust e.V. "We were pleased with the seamless transition of our fund." "With our dedication to providing fiduciary oversight during a complex restructuring process, we are committed to working with our clients to develop risk-controlled solutions that address their needs," added Edward Pennings, head of sales and relationship management for State Street Global Markets' portfolio solutions in Europe. With its advanced trading strategies, client-focused execution model and access to a leading pool of high-quality, natural liquidity and innovative research capabilities, State Street Global Markets provides customers with cost-effective solutions aimed at enhancing returns and minimizing overall transaction costs. It delivers some of the most comprehensive solutions in the industry, within a completely transparent environment, and its transitions are benchmarked before and after each transition. About State Street Global Markets: State Street Global Markets provides specialized investment research and trading in foreign exchange, equities, fixed income and derivatives. Its goal is to enhance and preserve portfolio values for asset managers and asset owners. From its unique position at the crossroads of the global markets, it creates and unlocks value for its clients with original flow-based research, innovative portfolio strategies, trade process optimization, and global connectivity across multiple asset classes and markets. About State Street: State Street Corporation (NYSE: STT) is the world's leading specialist in providing institutional investors with investment servicing, investment management and investment research and trading. With $9.6 trillion in assets under custody and $1.4 trillion in assets under management (as of June 30, 2005), State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street's web site at www.statestreet.com.