State Street Announces Private Equity Index(sm)Third Quarter Results

BOSTON--(Business Wire)--State Street Corporation (NYSE:STT), the world's leading provider
of financial services to institutional investors, today announced the
third quarter results of the State Street Private Equity Index(sm).
The Index is based on the latest quarterly statistics from State
Street Investment Analytics' Private Edge(R) Group, which provides
detailed analyses of customers' private equity portfolios through a
fully automated web-enabled environment.

Comprising of data including more than 1,300 private equity
partnerships with a total fund size in excess of $1.1 trillion, the
State Street Private Equity Index allows private equity investors to
evaluate their performance against their peers across a broad and
representative sample of investments. Unlike other indices, the State
Street Private Equity Index does not rely on voluntary reporting of
cash flows from general partners in order to calculate returns. As a
result, the Index provides an accurate representation of private
equity holdings across all funds, without reporting bias.

The State Street Private Equity Index includes data derived from
the diverse client base of The Private Edge Group covering public and
private pensions, endowments and foundations, representing more than
4,000 commitments totaling over $150 billion. The Private Edge Group
has one of the most expansive and comprehensive private equity data
sets currently maintained, including partnership information down to
the portfolio company level.

"The tightening of credit conditions, especially in the US, has
constrained deal flow during the quarter as evidenced by cancellation
and postponement of several buyout transactions and increased
challenges in placing leveraged buyout debt for completed
transactions," said William Pryor, senior vice president. "This
decrease in buyout transactions has manifested itself in slightly
lower overall valuations and thereby lower long-term returns on a
quarter-over-quarter basis across the US private equity space.
However, international private equity actually displayed slightly
improved returns over the prior quarter due to the continued weakness
of the US dollar."

State Street Investment Analytics (SSIA) services are provided
through offices located around the world, including Alameda,
Amsterdam, Boston, Dublin, Edinburgh, Frankfurt, Hong Kong, London,
Luxemburg, New York, Paris, Sydney, Toronto and Zurich. SSIA
calculates performance for over 1200 clients globally on asset volumes
exceeding $5.5 trillion, providing private equity performance and
analytics services through The Private Edge Group since 1994.

The table below summarizes the long-term internal rates of return
(IRR) of the index by major private equity strategy, in addition to
the composition of the Index:

-0-
*T
State Street Private Equity Index(sm)
Composition and long-term IRR as of September 30, 2007

Long-term IRR% as
Number of
of Commitments -------------------
Strategy Funds ($B) 9/30/2007 6/30/2007
----------------------------- ------- ------------ --------- ---------
Buyout 619 $813 15.70% 15.79%
----------------------------- ------- ------------ --------- ---------
Venture Capital 162 $204 12.42% 13.23%
----------------------------- ------- ------------ --------- ---------
Other 600 $136 14.13% 14.55%
----------------------------- ------- ------------ --------- ---------
Total 1,381 $1,153 15.03% 15.29%
============================= ======= ============ ========= =========
Non-US total(a) 232 $252 21.68% 20.80%
============================= ======= ============ ========= =========
*T

(a) Included in total

About State Street

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.

About Private Edge(R) Group

State Street provides private equity performance and analytics
services through The Private Edge(R) Group, which it has offered for
more than a decade. The Private Edge Group provides detailed analyses
of customers' private equity portfolios through a fully automated
web-enabled environment and offers services ranging from performance
measurement to complex quantitative and qualitative portfolio
analysis.

State Street Corporation
Steve Maguire, +1-617-664-3001

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