State Street Corporation Prices Offering of Depositary Shares Representing Interests in Preferred Stock

State Street Corporation (NYSE: STT) today announced the pricing of its previously announced offering of 20,000,000 depositary shares each representing a 1/4,000th ownership interest in a share of Non-Cumulative Perpetual Preferred Stock, Series C, without par value per share, with a liquidation preference of $100,000 per share (equivalent to $25 per depositary share). The aggregate dollar amount of the depositary shares offered is $500,000,000. The offering is being conducted pursuant to an effective registration statement under the Securities Act of 1933.

The depositary shares will be offered to the public at a price of $25 per depositary share and with a dividend rate of 5.25% per annum on the liquidation preference of $100,000 per Series C share. State Street estimates that the net proceeds from the offering will be approximately $487.5 million, after deducting estimated expenses and underwriting discounts and commissions.

Morgan Stanley & Co. LLC, Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC are joint book-running managers for this offering.

Subject to approval by the Federal Reserve, State Street intends to use the net proceeds of the offering to redeem all of the outstanding shares of State Street’s Non-Cumulative Perpetual Preferred Stock, Series A, all of which are held by State Street Capital Trust III, at a cash redemption price of $100,000 per share, together with an amount equal to any dividends that have been declared but not paid prior to the redemption date, on such redemption date as may be established by State Street in accordance with the Certificate of Designation of the Series A Preferred Stock. Upon the completion of the redemption of the Series A Preferred Stock, State Street Capital Trust III will redeem all of State Street’s outstanding 8.250% Fixed-to-Floating Rate Normal Automatic Preferred Enhanced Capital Securities and all of the outstanding common securities issued by State Street Capital Trust III. If State Street is not permitted to redeem the Series A Preferred Stock, then State Street expects to use the net proceeds for general corporate purposes.

State Street has filed a registration statement (including a prospectus) with the Securities and Exchange Commission for the offering to which this communication relates. Prospective investors should read the prospectus in the registration statement (and the supplement thereto) and other documents that State Street has filed with the SEC for more complete information about State Street Corporation and this offering. These documents can be accessed at no charge by visiting the EDGAR System on the SEC’s website at www.sec.gov. Alternatively, a copy of the prospectus supplement relating to the depositary shares can be obtained from Morgan Stanley & Co. LLC’s prospectus department at 180 Varick Street, 2nd Floor, New York, NY 10014, e-mail: prospectus@morganstanley.com, telephone: (866) 718-1649; from Goldman, Sachs & Co. at 200 West Street, New York, NY 10282, Attention: Prospectus Department, telephone: (866) 471-2526, e-mail: prospectus-ny@ny.email.gs.com; from Merrill Lynch, Pierce, Fenner & Smith Incorporated at 222 Broadway, 7th Floor, New York, NY 10038, e-mail: dg.prospectus_requests@baml.com, telephone: (800) 294-1322; from UBS Securities LLC at 299 Park Avenue, New York, NY 10171, Attention: Prospectus Specialist, telephone: (877) 827-6444, ext. 5613884; or from Wells Fargo Securities, LLC at 1525 West W. T. Harris Boulevard, NC0675, Charlotte, NC, Attention: Capital Markets Capital Support, telephone: (800) 326-5897, e-mail: cmclientsupport@wellsfargo.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

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