State Street Expands Reporting and Analysis Capabilities for Securities Lending Customers; Arrangement with Data Explorers Limited Enhances Ability to Monitor and Measure Performance

May 26, 2005

BOSTON--(BUSINESS WIRE)--May 26, 2005--State Street Corporation (NYSE: STT), the world's leading provider of services to institutional investors, today announced its arrangement with Data Explorers Limited, providers of an independent securities lending performance measurement service. As part of this arrangement, Data Explorers' Performance Explorer(TM) product will be offered to State Street's securities lending customers, providing them with the ability to evaluate lending returns against a broad universe of industry peers.

Performance Explorer is a secure, Web-based service that allows customers to better understand their securities lending performance by comparing individual results against the aggregated data of a broad, customizable universe of industry peers. All customer data is kept confidential and anonymous. Each week, Data Explorers collects aggregated data on more than 64,000 securities lending transactions for approximately 55,000 securities and more than 4,000 portfolios. Recent figures compiled by the service indicated total lendable assets at almost $4.5 trillion and total on-loan balances at more than $1.3 trillion.

"The securities finance industry is becoming larger, more global and more complex every year and lenders are calling for increasingly sophisticated tools with which to monitor, assess, and manage securities lending programs," said Edward J. O'Brien, executive vice president and head of securities finance for State Street. "State Street is committed to remaining the global industry leader in securities finance, and market leaders both anticipate and respond to customer demand. We are proud to offer this latest enhancement to our securities lending program and will continue to look for new ways to provide our customers with best-in-class products and services."

The Performance Explorer service is the latest example of State Street's commitment to providing its securities lending customers the most sophisticated means of monitoring program performance. Performance Explorer complements State Street's existing portfolio of proprietary securities finance technology solutions, including SL PerformanceReporter(R) and SL PerformanceAnalyzer(R). State Street was the first lending agent to launch a risk-adjusted performance measurement tool when it launched SL PerformanceAnalyzer in 1998. In addition to benefiting customers, data and analysis from all of these tools are used internally within Securities Finance's account management, trading, and risk management departments to assess performance and plan program strategies.

State Street lends securities in more than 35 markets around the world via a global network of trading locations -- providing customers 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 and investment research and trading. With $9.5 trillion in assets under custody and $1.4 trillion in assets under management, as of March 31, 2005, State Street operates in 25 countries and more than 100 markets worldwide. For more information, visit State Street's Web site at www.statestreet.com.

Data Explorers Limited provides a range of specialist services that meet the needs of the global securities finance industry in areas such as performance and risk management, assessing market impact, capital calculation and consolidated reporting. The company has offices in London and Edinburgh and will shortly be opening an office in the USA. For more information, visit Data Explorers' web site at www.dataexplorers.com.

    CONTACT: State Street CorporationCarolyn Cichon, 617-664-8672

    SOURCE: State Street Corporation