STT State Street Corporation

State Street Corporation (NYSE: STT), the world�s leading provider of financial services to institutional investors, today announced that it has expanded its capabilities in the high-growth area of alternative investments and in doing so has created the industry�s most comprehensive offering for private equity servicing. In addition to the strong private equity servicing capabilities it assumed as part of the acquisition of Investors Financial Services Corp., State Street has also acquired Palmeri Fund Administrators (PFA). For more than 16 years, PFA has provided high quality, full-service fund administration services exclusively to the private equity industry. �Similar to the reason for our entrance into the hedge fund administration space in 2002, our institutional customers are increasingly expanding their use of alternative investments including private equity,� said Jay Hooley, vice chairman and head of global investment servicing and investment research and trading at State Street. �Private equity is another example of a high-growth area that is in considerable demand from our institutional investor customers. We expect the team and capabilities that we now have dedicated to this growing market segment will allow us to further capitalize on market opportunities and promote our continued industry leadership.� Frank Palmeri, former chief executive officer of PFA, will lead the private equity servicing initiative, under the direction of Jack Klinck, executive vice president and head of Global Investment Product Services for State Street. Frank brings more than 25 years of private equity experience to State Street which now services approximately $80 billion in private equity assets for nearly 100 fund sponsors managing more than 400 primary funds globally. �Customers can now benefit from the combined strength of three leading organizations for all of their private equity servicing needs,� added Klinck. �This enhanced offering for private equity servicing further strengthens our industry leadership in servicing for alternative investments.� At its inception in 1991, PFA was the first company to offer a comprehensive outsourced fund administration solution for both direct managers and institutional sponsors of private equity funds. With State Street�s acquisition of Investors Financial Services Corp., State Street also assumed a dedicated private equity servicing business that has been steadily growing for nearly ten years. The combination of these industry leading organizations creates a new industry standard for private equity servicing. State Street will also continue to provide private equity performance and analytics services through its Private Edge Group, which it has offered for more than a decade. Private Edge provides detailed analyses of customers� private equity portfolios through a fully automated web-enabled environment. State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors, including investment servicing, investment management and investment research and trading. With $13.0 trillion in assets under custody and $1.9 trillion in assets under management at June 30, 2007, 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. FORWARD-LOOKING STATEMENTS This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the alternative investment and private equity servicing markets and market participants, as well as State Street�s plans, capabilities and role in those markets. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing State Street�s expectations or beliefs as of any date subsequent to the date of this release. Important factors that may affect future results and outcomes include the State Street�s ability to fully integrate and convert its acquisitions of PFA and Investors Financial into its business and market and competitive factors specific to the alternative investments and private equity servicing markets. 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 2006 Annual Report on Form 10-K and its subsequent SEC filings. State Street encourages investors to read its 10-K, particularly the section on Risk Factors, 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 and State Street will not undertake efforts to revise those forward-looking statements to reflect events after this date.