STT State Street Corporation

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), and largest institutional fund manager in the world, today announced it has reached the $10-billion mark for assets under management in its fast-growing Edge strategies, SSgA�s version of short-extension or 130/30 approaches. This milestone highlights SSgA�s experience as a disciplined manager of long-short equity portfolios. An acknowledged leader in quantitative stock selection and long-short investing, SSgA has developed one of the widest competencies in the industry by applying this innovative methodology across geographical segments and active risk space. SSgA�s Edge strategies provide investors with a bridge between moderate risk/moderate value-added long-only strategies and high-risk hedge funds. State Street launched its first Edge strategy, Australian Alpha Edge, in December 2004 in Sydney. �The success of our Edge strategies illustrates our quantitative heritage, the strength of our equity research and our experience with short selling in order to build disciplined portfolios with a full range of potential performance outcomes,� said Arlene Rockefeller, managing director of Global Equities at SSgA. Edge strategies introduce a limited amount of short selling into portfolios in order to take advantage of a negative viewpoint in the stock-ranking process while providing capital for additional long positions of the same magnitude to maintain 100 percent exposure to a benchmark. �The result is a significant increase in expected returns with a small or potentially no increase in active risk,� Rockefeller added. The Future of Edge Strategies State Street Global Advisors established itself early on as a leader in this market segment because Edge strategies are an extension of what SSgA does best: research, stock selection and risk management. As an experienced quantitative manager, SSgA has been ranking stocks from best to worst for more than 20 years and thus has proven skills in identifying both potential winners and losers. In addition, SSgA has approximately 16 years of experience in managing long-short equity portfolios providing key insights into the short selling process from cost containment to risk mitigation. �We anticipate continued development of Edge strategies to complement our existing long-only active approaches in most market segments and across the risk spectrum in order to accommodate the widely divergent needs and preferences of our clients,� said Rockefeller. Most recent launches include Global Alpha Select Edge and World Index Plus Edge, bringing the firm�s total Edge strategies to fourteen with more expected to launch this year. EDITORS� NOTE: The Growth of 130/30 or Extension Strategies Institutional Investors and pension funds have shown significant interest in 130/30-type strategies because they increase the active opportunity set, and allow investors to benefit from the use of hedge fund techniques while still remaining closely tied to the benchmark characteristics. They also allow investors to invest in the strategies within their traditional equity allocations, rather than in the alternatives category. Research suggests that for many portfolios, the 130/30 ratio of long versus short positions is optimal because the marginal improvement in expected returns begins to diminish as greater levels of shorting are introduced. However, the ideal level of shorting will depend on investor objectives, benchmark composition, and active risk level among other factors. About State Street Global Advisors State Street Global Advisors, the investment management arm of State Street Corporation (NYSE: STT), 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.