Investor Confidence Index Declines from 84.0 to 77.2 in August

Aug.19, 2008 in Investment Opinions

BOSTON, Aug 19, 2008 (BUSINESS WIRE) — State Street Global Markets, the
investment research and trading arm of State Street Corporation (STT), today
released the results of the State Street Investor Confidence Index(R) for August
2008.

Global Investor Confidence decreased by 6.8 points to 77.2 from a revised July
level of 84.0. This month it was North American investors who drove the move,
with confidence in that region declining from 85.8 to 77.7. European investors
also felt less optimistic, as evidenced by a three-point decline in their
confidence from 80.3 to 77.3. Asian investors saw a modest improvement in their
risk appetite for the second month, and their benchmark rose from a revised level
of 85.3 to 88.9.

Developed through State Street Global Markets’ research partnership, State Street
Associates, by Harvard University professor Ken Froot and State Street Associates
Director Paul O’Connell, the State Street Investor Confidence Index measures
investor confidence on a quantitative basis by analyzing the actual buying and
selling patterns of institutional investors. The index is based on financial
theory that assigns precise meaning to changes in investor risk appetite, or the
willingness of investors to allocate their portfolios to equities. The more of
their portfolio that institutional investors are willing to devote to equities,
the greater their risk appetite or confidence.

“Renewed concerns around credit and the likelihood that growth can be sustained
in both Europe and Asia create the fundamental backdrop for this month’s decline
in confidence,” commented Froot.

“There appears to have been a cycle of risk appetite declines rippling across the
major regions over the last two months,” added O’Connell. “North American
investors took a more pessimistic view in June and European investors followed
suit. The buoyancy of Asian confidence over the last two months was not
sufficient to outweigh this increased pessimism.”

August Results

Global 77.2

N. America 77.7

Europe 77.3

Asia-Pacific 88.9

About State Street Global Markets:

State Street Global Markets provides specialized investment research and trading
in foreign exchange, equities, fixed income and derivatives. Its goal is to
enhance and preserve portfolio values for asset managers and asset owners. From
its unique position at the crossroads of the global markets, it creates and
unlocks value for its clients with original flow-based research, innovative
portfolio strategies, trade process optimization, and global connectivity across
multiple asset classes and markets.

State Street Global Markets’ research team of leading academic and industry
experts is committed to continually advancing the science, including theory and
application of its proprietary investor behavior research and innovative
portfolio & risk management technologies to help its clients challenge
conventional thinking, shape ideas, make more informed investment decisions and
deliver measurable results.

About the State Street Investor Confidence Index(R):

The index is released globally at 10 a.m. Eastern time in Boston on the second to
last Tuesday of each month. More information on the State Street Investor
Confidence Index, including frequently asked questions and a calendar of release
dates, is available at http://www.statestreet.com/investorconfidenceindex. The
previous month’s calculations for the index are revised to account for trading
activity through the end of the reporting period.

About State Street:

State Street Corporation (STT) is the world’s leading provider of financial
services to institutional investors, including investment servicing, investment
management and investment research and trading. With $15.3 trillion in assets
under custody and $1.9 trillion in assets under management at June 30, 2008,
State Street operates in 26 countries and more than 100 geographic markets
worldwide and employs 28,700 worldwide. For more information, visit State
Street’s web site at http://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 2007
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, August 19, 2008, and the company will
not undertake efforts to revise those forward-looking statements to reflect
events after this date.