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, announces the five-year anniversary of State Street Global Alliance, LLC. Global Alliance is the strategic venturing partnership jointly owned by SSgA and Stichting Pensioenfonds ABP (ABP), one of the world's largest pension funds. Formed in 2001 the objective of Global Alliance is to seek out companies with innovative, alternative investment strategies which complement SSgA's existing investment vehicles and offer value-added performance to ABP's pension plan assets. Global Alliance's combined assets under management have posted a compound annual growth rate of 60 percent since its founding. Today its seven-member companies collectively manage more than $16 billion in worldwide assets. "In our fifth successful year of operation, Global Alliance continues to provide early-stage companies that offer cutting-edge investment strategies with better access to their target market by way of SSgA's and ABP's infrastructure and distribution channels," said Joseph Lyons, president of Global Alliance. "We continue to seek out these types of early-stage companies in an ongoing effort to provide clients with unique investment strategies and complement our existing capabilities." The concept for Global Alliance originated in 1996 when SSgA began investing in small-size asset managers to add to its existing investment strategies and to expand upon the investment options available to clients. The Global Alliance strategy was crystallized in 2001 when State Street Global Alliance, LLC was formed and ABP invested in the partnership. Total assets under management at the time were $2 billion. Today, Global Alliance, LLC consists of five majority-owned companies and two minority investments, all of which are focused on continuous new product and strategy development to anticipate and meet client needs. The majority companies are: Advanced Investment Partners, LLC (AIP), a registered investment advisor and leader in developing innovative quantitative investment strategies. With more than $1.6 billion in assets under management, AIP has generated a successful track record of managing core large-, mid- and all-cap strategies for institutional and retail investors. These include enhanced index, market neutral and tax-managed styles. Rexiter Capital Management Limited (Rexiter), a London-based investment management company specializing in fundamental-based global, regional and country specific emerging market strategies. With more than $5 billion in assets under management, Rexiter provides management services to a number of large pension and endowment funds, corporate clients and a U.S. mutual fund. Shott Capital Management, LLC (SCM), a specialist in post-venture distribution management and private equity partnership investing. The firm manages the sale of in-kind distributions of public securities distributed from private equity investments and manages separate accounts for private equity investors. SSARIS Advisors, LLC, a registered investment advisor and provider of hedge fund and hedge fund-of-funds strategies for institutional investors worldwide. The firm recently marked the one-year anniversary of its Multi-Manager Japan Equity strategy, a hedge fund-of-funds strategy focused on investing in innovative Japanese equity hedge fund managers. The Tuckerman Group, LLC, a manager of public and private real estate investments for institutional and individual investors through a series of specialized programs, including direct investments and real estate investment trust (REIT) strategies. Tuckerman's SSgA/Tuckerman Liquid 40 Real Estate Securities Index Strategy recently exceeded $1 billion in assets under management. Total assets under management now exceed $5 billion. Tuckerman recently launched a global REIT index product to complement its U.S. and European REIT strategies. Global Alliance's two minority investments include: GovernanceMetrics International (GMI), the most recent firm to join Global Alliance and a global corporate governance research and ratings firm. GMI delivers independent evaluations of corporate governance practices at more than 3,400 publicly-listed companies in 26 countries. The firm's analysts scour hundreds of government, stock exchange, company and other sources to identify practices and patterns of behavior. In so doing GMI has identified many companies with weaknesses long before problems became apparent. Innovest, an internationally recognized investment research and sub-advisory firm specializing in analyzing companies' environmental and social performance and their impact on competitiveness, profitability, and share price performance. Innovest recently leveraged its membership in Global Alliance by teaming with Rexiter to create the world's first emerging markets sustainability strategy. Innovest also won its fourth consecutive international competition to serve as lead advisor to the Carbon Disclosure Project (CDP), an innovative collaboration among 240 institutional investors, with combined assets under management of more than $30 trillion, which will provide in-depth research on the relative climate risk exposures of 500 large-cap global companies. About State Street Global Alliance State Street Global Alliance, LLC, founded in 2001, is the strategic venturing partnership jointly owned by State Street Global Advisors and one of the world's largest pension funds, Stichting Pensioenfonds ABP (ABP). State Street Global Alliance seeks to develop partnerships with innovative asset managers worldwide to develop investment excellence and innovation with growth rates in excess of industry averages. State Street Global Alliance currently consists of five majority-owned companies and two minority investments. For more information, visit www.ssgaglobalalliance.com. 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 $1.5 trillion in investment programs and portfolios (as of March 31, 2006), State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, and Zurich, and offices in 25 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com. About ABP ABP is the pension fund for employers and employees in service of the Dutch government and the educational sector. With an invested capital of EUR 196 billion, ABP is the second largest pension fund in the world. Their 2.4 million customers have the assurance of income security against disability, death and pension. The fund is based on solidarity and non-profit. ABP's main office is in Heerlen (southern part of the Netherlands) with branches in Amsterdam and New York. For more information on ABP Investments please visit www.abp.nl This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those related to the pace at which State Street adds new clients or at which existing clients use additional services, the value of global and regional financial markets, the pace of cross-border investment activity, changes in interest rates, the pace of worldwide economic growth and rates of inflation, the extent of volatility in currency markets, consolidations among clients and competitors, State Street's business mix, the dynamics of markets State Street serves, and State Street's success at integrating and converting acquisitions into its business. Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in State Street's 2005 annual report and subsequent SEC filings. State Street encourages investors to read the corporation's annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, May 8, 2006, and the company will not undertake efforts to revise those forward-looking statements to reflect events after this date.