Hong Kong and London, 26 October 2006 --- State Street Corporation (NYSE:STT), the world’s leading provider of financial services to institutional investors, announced today the appointment of Peter Baker, currently in charge of its investor services business in the UK, Middle East and Southern Africa (IS UKMEA) to another senior role as head of investor services for State Street in Asia ex. Japan. In this role Baker, who will be based in Singapore , will report to KK Tse, executive vice president and head of State Street ’s investment servicing operations for all of Asia Pacific.

Baker joined State Street in Sydney in 1988 and worked in the UK from 1989 to 1997 before returning to Australia to head State Street ’s investment servicing business. In 2004, he received the “Services to Custody” industry award from the Australian Custodial Services Association, garnering the highest number of nominations in the history of the award. He moved to London in 2004 to assume the role of head of IS UKMEA and earlier this year helped implement a newly aligned structure in the UK aimed at delivering a more integrated suite of services to State Street ’s growing customer base. As part of this alignment, Peter O’Neill was named to a new role reaching across both State Street ’s investment servicing and investment research and trading capabilities.

“We’re delighted to welcome Peter back to the region in this key role,” said Tse. “The combination of his experience at State Street as well as within the industry and his knowledge of our customer base will make him a highly effective leader at a time when we seek to grow our considerable market presence across Asia Pacific.”

Within the past twelve months alone, State Street has won a number of industry accolades in the region, reflecting its commitment to customer service and innovation. The awards included “Best Custodian” for the third consecutive year from The Asset magazine.

“I can’t think of a better time to return home to the region,” said Baker. “I leave the UK after two years with a strong management team in place and the new alignment for our customers already showing results. I am enthused about the opportunities ahead and look forward to working with our outstanding team in the region to continue to build upon our leadership and success.”

State Street Corporation (NYSE: STT) is the world's leading specialist in providing institutional investors with investment servicing, investment management and investment research and trading services. With $11.3 trillion in assets under custody and $1.6 trillion in assets under management as at 30 September 2006, State Street operates in 26 countries and more than 100 geographic markets worldwide. For more information, visit State Street’s web site at www.statestreet.com.

This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment. Those statements are based on current expectations and involve a number of risks and uncertainties, including those related to the pace at which State Street adds new clients or at which existing clients use additional services, the value of global and regional financial markets, the pace of cross-border investment activity, changes in interest rates, the pace of worldwide economic growth and rates of inflation, the extent of volatility in currency markets, consolidations among clients and competitors, State Street’s business mix, the dynamics of markets State Street serves, and State Street’s success at integrating and converting acquisitions into its business. 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 2005 annual report on Form 10-K, particularly in Item 1A, “Risk Factors,” and the Corporation’s subsequent SEC filings which should be read before making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, October 26, 2006, and the Corporation will not undertake efforts to revise those forward-looking statements to reflect events after this date.