London, 12 March 2007 — State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT) and the largest institutional fund manager in the world, is anticipating significant demand from UK and European institutional investors for its innovative new investment product, Global Alpha Edge ™ .

Global Alpha Edge is the first-ever product to use the 130/30 investment methodology that is also UCITS III-compliant. It represents the initial fund in a range of investment products that SSgA plans to roll out this year that uses its ‘Edge’, or 130/30, methodology.

Global Alpha Edge relies on the well-established expertise of SSgA in alpha generation, and reflects the latest research developments in portfolio management. The strategy aims to achieve consistent outperformance by incorporating both long and short positions into portfolios to increase the opportunity set for potential returns. Specifically, the strategy takes short positions up to 30 percent, which in turn funds an additional 30 percent of long positions, thereby maintaining market exposure at 100 percent.

The strategy is designed for investors seeking to make their ‘growth’ portfolios work harder. The ‘Edge’ process is a logical extension of quantitative investment management techniques, and takes advantage of all of the information available on the securities in the investable universe.

Kanesh Lakhani, managing director, SSgA UK , commented: “This strategy is very much at the cutting edge of modern day investing. Global Alpha Edge offers a disciplined, well-researched and proven approach to achieving high alpha efficiently at moderate levels of risk. This innovative, quantitative approach gives managers greater opportunity to achieve consistent outperformance.”

With about 350 investment positions selected from a universe of close to 2,000 international stocks, the State Street Global Alpha Edge strategy provides a representative exposure to all international markets. Securities are selected based on a multi-factor financial analysis, such as the free cashflow to price ratio, distribution rate, earnings forecasts, etc. with a view toward building a well diversified portfolio, and is neutral in terms of style, capitalization, sector and region. SSgA’s rigorous investment discipline and risk controlled approach allows the strategy to maintain a four to five per cent tracking error against its benchmark, the MSCI World Index.

The State Street Global Alpha Edge strategy provides an efficient and effective solution to those investors who are looking for alpha generating products offering a risk level between those of long-only and full long/short funds. While limiting exposure to 100 per cent, allowing a judicious level of shorting improves the portfolio’s efficiency by providing a better risk-return (information) ratio. The strategy aims to achieve consistent outperformance of four to five per cent over a three-year market cycle.

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 $1.7 trillion in assets under management as of December 31, 2006, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 25 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com. and www.ssga.fr.

Please read the prospectus carefully before investing.

This news announcement contains forward-looking statements as defined by United States securities laws, including statements about our financial goals, 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 changes in interest rates, the value of global and regional financial markets, the extent of volatility in currency markets, the pace of cross-border investment activity, the pace at which State Street adds new clients or at which existing clients use additional services, State Street’s business mix, State Street’s success at integrating and converting acquisitions into its business, the pace of worldwide economic growth and rates of inflation, the dynamics of markets State Street serves, and consolidations among clients and competitors. 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 and subsequent SEC filings. State Street encourages investors to read its annual report, particularly the section on factors that may affect financial results, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, March 12, 2007, and we will not undertake efforts to revise those forward-looking statements to reflect events after this date.

Media Contact:
Stephen Sheppard
Citigate Dewe Rogerson
020 7282 1025