STT State Street Corporation

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today announced the release of a new report detailing several key themes that have emerged in the U.S. exchange traded funds industry during the first half of the year. Titled 2008 Mid-Year Exchange Traded Fund Report, the research is designed to reveal new insights into how the exchange traded fund market is evolving amid recent stock market volatility. According to the report, which is authored by Tom Anderson, head of strategy and research for State Street�s Intermediary Business Group, US ETF assets totaled approximately $575 billion at the midway point of 2008 � down 5.4 percent from the start of the year. This drop in assets is attributed to declining equity valuations, as the number of ETF shares outstanding increased 9 percent during the same period of time, indicating that investors have continued to add shares of ETFs to their portfolios as the markets declined. �Despite a sharp decline for US equities in the first half of 2008, investors continued to increase their appetite for ETFs, which is a testament to the increasingly vital role ETFs play in a growing number of portfolios and strategies,� says Anderson. �Many of the trends highlighted in the 2008 Mid-Year Exchange Traded Fund Report, including the strong growth of sector, fixed income, inverse, and commodity ETFs, illustrate how ETFs are helping to level the playing field by improving access to segments of the market that were once beyond the reach of most investors.� Other key findings from the 2008 Mid-Year Exchange Traded Fund Report include: The pace at which new ETFs are entering the market has slowed - 87 new ETFs were launched in the first half of 2008, compared to 167 during the same period in 2007; Despite their much anticipated arrival, active ETFs are on average trading just over 2,000 shares daily; and With energy and food costs rising, investors are increasingly protecting their assets from inflation. In the first half of 2008, assets in Treasury Inflation Protected Securities (TIPS) ETFs and commodity ETFs have increased 39 percent and 34 percent respectively. For more information on these trends and others emerging in the ETF industry, financial professionals can download a free copy of the 2008 Mid-Year Exchange Traded Fund Report at SPDR University (www.spdru.com), a new web site offering proprietary research and educational materials on exchange traded products (ETPs), the markets, portfolio strategies, and practice management for investment professionals. 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 $1.9�trillion in assets under management as of June 30, 2008, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Toronto, Montreal, Munich, Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 27 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com. Note to Editors: SPDR� Exchange Traded Funds SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. Offered by State Street Global Advisors, SPDR ETFs provide professional investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as the industry pioneer, State Street�in partnership with the American Stock Exchange�created the first ETF in 1993 (SPDR S&P 500 � Ticker SPY). Since then, we�ve sustained our place as an industry innovator through the introduction of many ground-breaking products, including first-to-market successes with gold, international real estate, international fixed income and sector ETFs. SPDR ETFs are managed by SSgA Funds Management, Inc, a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company. ETFs trade like stocks, are subject to investment risk and will fluctuate in market value. The �SPDR� trademark is used under license from The McGraw-Hill Companies, Inc. (�McGraw-Hill�). No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by McGraw-Hill. S&P� is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by State Street Bank and Trust Company. Before investing, consider the funds� investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 1-866-787-2257 or visit www.spdretfs.com. Read it carefully. Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR shares, MidCap SPDRs and Dow Diamonds, all unit investment trusts and Select Sector SPDRs. 10941-0809