State Street Completes First Triparty Securities Lending Transaction in Canada

October 14, 2004

BOSTON--(BUSINESS WIRE)--Oct. 14, 2004--State Street Corporation (NYSE: STT), the world's leading provider of services to institutional investors, announced today that it has conducted the first triparty securities lending trade in Canada. The Institutional Trust Services (ITS) division of JPMorgan Chase Bank served as the triparty collateral manager for the transaction.

Triparty is an arrangement in which securities and/or cash are delivered by trading counterparts to a single independent custodian bank, clearing house or securities depository that takes responsibility for ensuring the maintenance of adequate collateral value throughout the life of the transaction. State Street currently conducts triparty lending and repurchase agreement transactions in the U.S. and U.K. via leading triparty service providers.

"State Street takes pride in being the first-to-market in Canada with our triparty lending offering. This is a solid example of our commitment to our clients and to the Canadian securities finance market," said Don D'Eramo, vice president and head of State Street's securities finance team in Canada. "We look forward to providing additional flexibility and ease-of-processing for our Canadian borrowers. As the market continues to mature, triparty lending will lead to increased borrower demand and enhanced revenue opportunities for clients."

State Street has provided securities lending services on behalf of its Canadian clients since 1990. In 1998, the company established its securities lending trading desk in Toronto. Earlier this year, State Street launched the industry's first Canadian cash collateral fund, which allows Canadian-based lenders to collect additional returns for their securities on loan. State Street also serves as the securities lending agent for many of Canada's largest pension funds.

State Street lends securities in more than 35 markets around the world via a global network of trading locations -- providing clients with around-the-clock opportunities, as well as regional expertise and experience. State Street has provided securities lending services since 1974, and has developed an industry-leading approach to risk and return management. Its securities lending program is available to all institutional investors worldwide, whether their assets are held in custody at State Street or elsewhere. For more information, visit www.statestreet.com/securitiesfinance.

State Street Corporation (NYSE: STT) is the world's leading specialist in providing institutional investors with investment servicing, investment management, investment research and trading. With $9.0 trillion in assets under custody and $1.2 trillion in assets under management, State Street operates in 24 countries and more than 100 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 2003 annual report and subsequent SEC filings. State Street encourages investors to read the Corporation's 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, October 14, 2004, and the Corporation will not undertake efforts to revise those forward-looking statements to reflect events after this date.

    CONTACT: State Street CorporationHannah Grove, 617-664-3377
             or
             Carolyn Cichon, 617-664-8672

    SOURCE: State Street Corporation