STT State Street Corporation

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT) and the largest institutional fund manager in the world, announced today that it has been selected by the Volkswagen Group Pension Scheme to run a GBP 70 million enhanced U.K. equity and passive U.K. bonds mandate. The mandate, which utilises a multi-asset strategy, seeks to add value to a fixed-weight benchmark composed of the FTSE All-Share Index and a number of FTA UK fixed income indices. SSgA's enhanced equity strategies seek to provide a consistent amount of excess return while closely tracking the characteristics of the benchmark. Borrowing elements of passive and active management, enhanced strategies focus on controlling risk while adding value. Kanesh Lakhani, head of European marketing and consultant relations at State Street Global Advisors said: "SSgA has extensive experience in providing a diversified selection of strategies across the investment spectrum. We look forward to helping Volkswagen achieve its aim of consistent added value in a risk controlled framework." -Ends- 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 June 30, 2005), State Street Global Advisors has investment centres 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. About State Street Corporation: 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.