State Street Global Advisors Wins GBP 330M Equity Mandate from BAA Pension Scheme for Global Alpha Edge(TM) Strategy

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT) and the world’s largest institutional fund manager, today announced that it has been appointed by the BAA Pension Scheme to manage a £330m (nearly $USD700 million) Global Equity 130/30 mandate. The assets will be invested in SSgA’s innovative equity investment strategy, Global Alpha Edge™. Global Alpha Edge is one in a range of investment strategies utilising SSgA’s ‘Edge’ (or 130/30) approach, which SSgA offers to institutional investors worldwide.

“Institutional investors including pension funds are showing increased interest in 130/30-type strategies because they increase the active opportunity set, enabling investors to achieve higher excess returns by relaxing the long-only constraint and allowing the manager to take limited short positions, in a risk-controlled framework,” said Kanesh Lakhani, managing director for SSgA in the UK.

Lakhani added, “We are delighted with this additional investment from BAA, which builds on our existing relationship. It demonstrates the strong interest we continue to see in our Edge strategies from UK pension funds.”

The Global Alpha Edge strategy is designed for investors seeking to make their alpha portfolios work harder, by offering the opportunity for enhanced returns relative to long-only mandates at similar risk levels. Limiting market exposure to 100 percent and allowing a judicious level of shorting improves the portfolio’s efficiency by providing a better risk-return ratio. The ‘Edge’ process is a logical extension of quantitative investment management techniques, as it capitalises on all of the information available on the securities in the investable universe, the MSCI World index. Global Alpha Edge aims to achieve outperformance of four to five percent over a market cycle.

About State Street Global Advisors:

State Street Global Advisors, the investment management arm of State Street Corporation (NYSE: STT), delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $2.0 trillion in assets under management as of September 30, 2007, 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.

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, November 2, 2007, and we will not undertake efforts to revise those forward-looking statements to reflect events after this date.