Munich and Frankfurt/Main, March 2, 2005 - Assets under management of State Street Global Advisors (SSgA), the investment management arm of State Street Corporation, (NYSE: STT) and the largest institutional fund manager in the world, were up by 43 percent in Germany and Austria in the year 2004. An expanding client base and increasing demand for index—oriented investments, enhanced strategies, active quantitative and fundamental analysis strategies and tactical asset allocation (TAA) contributed to the growth.

"The systematic growth and enhancement of our relationship management and strong support we had from our portfolio managers spread throughout eleven worldwide financial centers have paid off," said Klaus Esswein, managing director, State Street Global Advisors GmbH, at a press conference held in Frankfurt on the positive business developments for the company. "We have had great success in adapting our global resources and expertise to meet specific local needs."

Financial services company structure streamlined and efficient

The strategic decision to discontinue SSgA's Kapitalanlagegesellschaft (KAG) status in order to concentrate fully on the company's core competency of portfolio management and consulting has already proven beneficial in Esswein 's view: "We are now able to offer our services more efficiently through streamlined structures."

According to a study by BVI, the investment and asset management industry associa—tion, German institutional fund providers are more frequently outsourcing their portfolio man—agement to external advisors. Around 35 percent of fund assets are now managed by firms other than the investment companies operating the funds. "We were the first in Germany to recognize this trend and react to it by restructuring our business," said Esswein.

At the end of 2004, the two legal entities under which the asset management group his—torically operated; State Street Global Investment GmbH, an investment company under Ger—man law (KAG), and money management firm State Street Global Advisors GmbH, combined together to a single corporation organized as a financial services company (FDI) under the name of State Street Global Advisors GmbH. As part of this restructuring, SSgA discontinued its Spezialfonds administration business. "We are committed to the new structure," said Esswein, "All of State Street Global Investment GmbH's Spezialfonds administration custom—ers were transferred to other investment companies".

New business robust with both existing and recently acquired clients

Thirty—five percent of SSgA's net inflow in Germany and Austria in 2004 was attribut—able to business from new clients. SSgA acquired 15 new clients in the course of the past year in Germany and Austria, while growth among existing clients made up 65 percent of net inflow.

Business expanded considerably in enhanced indexing, actively—managed quantitative and fundamental analysis strategies, and tactical asset allocation (TAA). SSgA's global busi—ness reflected rising interest in enhanced indexing and active management strategies, taking in a net USD 145 billion in 2004. Over 70 percent of new client inflows went to actively—managed offerings. The firm has provided global indexing strategies since 1978 and is one of the leading distributors of exchange—traded funds

(ETFs) with a market share of over 26 per—cent among its 44 funds totaling EUR 61 billion in volume. Award—winning retail funds with top performance and ratings.

The retail funds area grew nicely with assets up by 36 percent. State Street 's Balzac Umbrella Index Fund, approved for distribution in Germany and Austria, currently holds EUR 3.8 billion in assets (as of December 31, 2004). SSgA offers 33 separate funds: 20 country—specific and regional funds, 11 sector funds, and two investment grade fixed income funds, the one holding euro—denominated corporate bonds and the other euro government bonds. This portfolio covers this entire range of regions and industries included in the MSCI World index.

A series of awards in numerous markets including Germany and top rankings from various different rating agencies highlight the quality and solid performance of SSgA funds. Morningstar, for example, named SSgA the number one equity fund manager in 2004 in the Large Fund Company category of its German Fund Awards, while the company took second place in the 2005 Standard & Poor's Fund Awards for Germany, likewise in the Large Fund Company category.

The outstanding performance of SSgA's Global Advantage Funds (GAF) confirms the organization's preeminence as an equity fund manager. The GAF funds' performance puts them at the forefront of all funds distributed in Germany and have received excellent marks from rating agencies like Standard & Poor' s (5—star ranking). These two global equity funds were created in 1993 under the name of Luxemburger SICAV, with the GAF Major Markets High Value fund investing in developed markets and GAF Emerging Markets High Value investing in up—and—coming markets. Balzac Funds and Global Advantage Funds are open to both retail and institutional investors.

State Street Global Advisors, the investment management group of State Street Cor—poration, delivers over 200 different investment strategies for the entire range of risk profiles through its global staff of over 1,500 professionals, encompassing index—linked, enhanced, and actively—managed quantitative and fundamental analysis strategies. With $1.4 trillion (€1.0trillion) in investment programs and portfolios as of the end of December 2004, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Mu—nich, Paris, Singapore, Sydney, Tokyo, and Zurich, and offices in 28 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.de.

All press material can be donwloaded at www.northoff.com/ssga

Media contacts:
Klaus Esswein, Managing Director, SSgA Germany, Tel. 089/55878—406 Volker Northoff, Northoff.Com Public Relations, Tel. 069/952977—20