STT State Street Corporation

State Street Corporation (NYSE: STT), the world's leading provider of services to institutional investors, announced today that it has been selected by Charles Schwab Investment Management (CSIM) to provide a broad range of investment services including accounting, custody and securities lending to the Schwab Funds and Laudus funds. The fund complexes represent more than 67 funds in total and $140 billion in assets. "Our goal is to move from a complex structure of several outside vendor relationships to a simpler one, consolidating to gain efficiency," said George Pereira, chief financial officer of CSIM. "The new fund accounting and custody structure we have implemented will offer numerous benefits, including a simpler and more scalable operating structure, a more efficient shareholder reporting process and tighter risk management. State Street excelled in all aspects of the competitive bid process and is the best choice to serve CSIM's needs going forward." State Street is the leading provider of fund accounting in the United States, servicing more than 40 percent of the mutual fund industry, and is the largest contributor of mutual fund NAV's to NASDAQ. "We are pleased that CSIM has selected State Street for a wide range of services in support of its mutual fund family," said Jay Hooley, executive vice president and head of global investment servicing at State Street. "We have extensive experience working with large mutual fund management complexes and integrating the various aspects of their servicing requirements in to our operations. We look forward to a long term partnership with Schwab as they continue to growth their business." 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 $9.8 trillion in assets under custody and $1.4 trillion in assets under management (as of September 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. About Charles Schwab Investment Management Founded in 1991, Charles Schwab Investment Management, Inc. (CSIM), an affiliate of Charles Schwab & Co., Inc., is one of the nation's largest mutual fund companies with $144 billion under management as of September 30, 2005. It is among the country's largest money market fund managers and is the third-largest provider of retail index funds. In addition to managing Schwab proprietary funds, CSIM provides oversight for the institutional-style, sub-advised Laudus Fund family. CSIM currently manages 67 mutual funds including 23 actively managed funds.