STT State Street Corporation

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today announced a series of enhancements to its suite of target-maturity strategies to improve the strategies� capacity to generate suitable replacement income during retirement. The enhancements address four fundamental considerations that are integral to effective retirement planning: Generating sufficient wealth to fund retirement, having an appropriate asset allocation to avoid the probability of outliving one�s accumulated wealth during retirement, recognizing the effect of inflation and acknowledging the impact of untimely market events particularly as people approach and are transitioning into retirement. �The philosophy of our target-maturity strategies is to create an investment process that is sophisticated in its assumptions and design and clear in its primary purpose of attempting to achieve the greatest probability for satisfying income replacement needs of retirees,� said Gary Conway, vice president of the business development team at State Street Global Advisors. �Our industry should turn its focus to income replacement, not the accumulation of an account balance without clear purpose.� The improvements that SSgA has implemented are intended to address wealth creation during the working years and, equally important, manage the transition into retirement by providing optimal income replacement potential. New asset class adjustments to SSgA�s target-maturity strategies add a new level of diversification that is critical during the accumulation phase when participants are still saving with the objective of generating sufficient wealth accumulation to fund retirement. Conway added, �Once the primary focus shifts to income replacement, we must recognize that the traditional definition of retirement has changed as people are working and living longer and changing their careers. These changes create uncertainty for their income replacement needs, but what is clear is the effect of untimely market events and the need to withdraw some of their accumulated wealth at potentially inopportune times. During retirement, when people generally become more dependent on their accumulated wealth, longevity risk and the risk of wealth degradation come into play.� To facilitate these changes, SSgA has added broader international exposure to the portfolios, in addition to the inclusion of Treasury Inflation Protected Securities, credit bonds and stable value investments. The asset-allocation glide path has also been adjusted to have a modest increase in the ending equity allocation in retirement. These changes are all expected to yield enough return to meet the longevity risk facing retirees. To reflect the new enhancements collectively and to represent the focus of the strategies on retirement date and not necessarily age, SSgA has renamed its strategies from SSgA Age-Based strategies to SSgA Target Retirement strategies. �We regularly conduct reviews of our strategies, but these changes together address larger secular changes in the marketplace, most important of which are longer life expectancies and a changing retirement landscape particularly the transition to retirement and the early retirement years,� said Conway. �We believe the adjustments to our Target Retirement strategies successfully address these and other market changes.� About State Street Global Advisors State Street Global Advisors, the investment management arm of State Street Corporation, delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $1.8�trillion in assets under management as of March 31, 2007, 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.