STT State Street Corporation

State Street Corporation (NYSE:STT), the world's leading provider of services to institutional investors, today extended the launch of its Collateral Management tool to customers based in the U.S. Collateral Management offers customers a secure, efficient and cost-effective means of supporting complex transactions associated with a broad range of investment activities that require collateral. In response to increasing demand from institutional investors who use derivatives in their portfolios, State Street's product is designed to help manage, track and provide reports on collateralized transactions, allowing users more time to devote to achieving investment returns. Derivatives are complex instruments that often pose inherent risks for institutional investors in their transactions with counterparties. To mitigate counterparty risk, collateral is often required as part of a transaction. Increased governmental and regulatory scrutiny of institutional portfolios, coupled with complicated administrative processes associated with collateralized transactions, have prompted institutional investors to seek out third party providers such as State Street to help in this process. "We are pleased to offer Collateral Management's capabilities for the growing number of U.S. customers who choose derivatives as key components of their investment portfolios," said Peter Cherecwich, senior vice president and head of Product and Technology Solutions for State Street. "We provide our customers a service that manages collateralization over the life of the transaction, while eliminating much of the time, risk and cost associated with it. This product enables customers to spend more time concentrating on achieving investment returns, leaving it to State Street to manage the complexities of the transactions." Collateral Management gives customers the ability to securely and independently monitor collateral while maximizing investment flexibility. The product's collateral management reporting feature permits customers to define customized collateral parameters, including eligibility of collateral, margin requirements, and concentration limits. In addition, the product's secure global reporting mechanism allows users to view and generate in-depth electronic data reports with security and trade details. Resulting reports are segregated by customer, assuring complete privacy of account information. Collateral Management will be available to customers via my.statestreet.com, a secure, single entry point to State Street's full suite of sophisticated market data and analysis applications in a highly customizable environment. It accepts multiple security types of collateral and accommodates a broad range of collateralized transactions, including repurchase and pledge agreements, securities lending, secured loans, swap transactions, and Over-the-Counter derivative contracts. 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 markets worldwide. For more information, visit State Street's Web site at www.statestreet.com.