State Street to Provide Securities Lending Services to New Star Asset Management and Muzinich & Company (Ireland) Ltd., for Approximately EUR 2.0 Billion in Assets

January 29, 2008

DUBLIN, Ireland--(BUSINESS WIRE)--

State Street Corporation (NYSE:STT), the world's leading provider of financial services to institutional investors, announced today that it has expanded its relationships with two of its clients, New Star Asset Management and Muzinich & Company (Ireland), Ltd., to include securities lending services.

State Street will provide securities lending services for EUR 225 million in assets and facilitate lending for an additional EUR 1.3 billion in assets via an exclusive lending arrangement for New Star Asset Management's Irish domiciled funds. State Street's initial relationship with New Star began in 1998. Since 2002, State Street has provided custody, accounting and trustee services for New Star Asset Management's Irish funds, and now services more than EUR 1.5 billion in assets for New Star from Ireland.

"State Street offered us one of the most customized securities lending programs of any provider," said John Mould, chief operating officer at New Star. "We were also impressed with the depth of experience of State Street's local securities finance team."

State Street has also been appointed to provide securities lending services for EUR 490 million in assets for Muzinich & Company's Irish UCITS fund. Expanding on its nearly 10-year relationship, State Street currently provides Muzinich with accounting, custody and trustee services for assets in excess of EUR 600 million.

"State Street's partnership approach and industry expertise have been invaluable in assisting us as we grow our business," said Michael Ludwig, director of Muzinich & Co., Ltd. "State Street has continually demonstrated a comprehensive understanding of our business and its deep knowledge of the securities finance business was paramount in our decision-making process."

"We are pleased these valued customers have decided to expand their relationships with State Street, choosing us as their securities lending provider," said Chris Holzwarth, managing director of State Street's securities finance team. "State Street prides itself on offering a broad range of services to assist customers in realizing their investment objectives. These new wins underscore our commitment to providing the best product offerings in the marketplace."

With approximately US$3 trillion in lendable assets and nearly US$700 billion in assets on loan, State Street is a market leader in securities finance. It serves more than 400 customers and 150 borrower relationships worldwide from 14 locations in North America, Europe and Asia-Pacific. For more information about State Street's securities lending program, visit www.statestreet.com/securitiesfinance.

About State Street Corporation

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 $15.30 trillion in assets under custody and $2 trillion in assets under management at December 31, 2007, 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

Source: State Street Corporation

Contact: State Street Corporation Steve Maguire, 1-617-664-3001