STT State Street Corporation

State Street Corporation, (NYSE: STT), the world�s leading provider of financial services to institutional investors, today released a State Street Vision Report on Hedge Funds as part of its series of proprietary reports designed to advance the dialogue around key themes and trends within the financial services industry. The new Vision paper on hedge funds offers a comprehensive overview of the impact of rising institutional allocations to alternative investment vehicles and the implications of this trend for institutions and the hedge fund industry going forward. State Street�s report provides insightful explanations of hedge fund investing trends and techniques, as well as an in-depth analysis of the evolution of risk management, new developments in the pursuit of alpha, and a global review of hedge fund regulation. �As part of the ongoing series designed to provide the industry with timely insights, this Vision paper responds to a need for greater understanding of all aspects of hedge fund investing,� said Jay Hooley, vice chairman of State Street. �Given the results of our third institutional hedge fund study released last month, it is evident that institutional hedge fund investing is becoming less �alternative.� We hope this new report will help industry professionals enhance their knowledge of hedge funds and navigate the risk and opportunities available in these important investment products.� The report draws on State Street�s extensive insights from across the company to bring a unique insight into the hedge fund industry: State Street Global Advisors, State Street�s investment management arm, has two decades of absolute return investment expertise and offers an array of strategies focused on generating alpha. State Street Global Markets, State Street�s investment research and trading arm, is well-recognized by hedge fund managers and their clients for setting industry standards in global foreign exchange trading and for providing access to unique investment research. Through its acquisition of International Fund Services (IFS) in 2002, State Street significantly expanded its global hedge fund servicing capabilities and now administers more than $200 billion in hedge fund assets from servicing centers in New York, Dublin, Luxembourg and Toronto. To obtain a copy of the paper or for more information, members of the press can contact publicrelations@statestreet.com. All other requests should be directed to vision@statestreet.com. Building on the success of its first Vision paper on Asia Bonds launched in 2006, State Street will publish additional Vision papers throughout the year. 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 services. With US$11.9 trillion in assets under custody and US$1.7 trillion in assets under management as of December 31, 2006, State Street operates in 26 countries and more than 100 geographic markets worldwide. For more information, visit State Street's website at www.statestreet.com.