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 Gallaher Pensions Limited to run a GBP 50 million active U.K. equity mandate. Utilising SSgA's U.K. Alpha strategy, the mandate's objective is to target performance of two percent over the FTSE All-Share Index. The U.K. Alpha strategy uses a quantitative, risk-controlled security selection process. Commenting on the mandate, Julian Rose, pensions manager for Gallaher Pensions Limited, said: "We selected State Street Global Advisors to manage this mandate based on its strong quantitative processes and experienced professionals." Kanesh Lakhani, head of marketing and consultant relations at State Street Global Advisors, said: "In a world of challenging stock markets and lower expected equity returns, investors are seeking outperformance while maintaining risk controls. SSgA's active equity strategies aim to deliver added value at relatively low levels of volatility. Our rigorous stock selection process uses a diverse range of factors and seeks to provide clients with consistent value-added service." 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.