2008-05-08 18:16:13 -

- State Street Corporation (NYSE: STT) issued the following statement today in response to a Bloomberg story concerning speculation about the adequacy of the company's reserve amount regarding State Street Global Advisors' actively managed fixed income strategies.

State Street conducted a detailed analysis to arrive at the reserve that was established in January 2008. Taking the decline in assets

under management from point to point, as represented by the Bloomberg report, is not an appropriate or accurate way to calculate potential investment losses or the company's potential exposure. State Street is required to review the adequacy of this reserve each quarter and currently believes it to be appropriate. The participants in this quarterly review include outside counsel. The company makes its determination of adequacy based on the best available information. The views of third parties who appear to have a vested interest in advancing their own agenda are not taken into account.

State Street will continue to defend itself vigorously against inappropriate claims, including those that seek recovery of investment losses arising solely from changes in market conditions.

State Street Corporation
Media Contacts:
Hannah Grove, 617-664-3377
or
Carolyn Cichon, 617-664-8672
or
Investors:
Kelley MacDonald, 617-664-2888