Investor Confidence Index Rises from 79.0 to 82.6 in July

BOSTON--(Business Wire)--
State Street Global Markets, the investment research and trading
arm of State Street Corporation (NYSE:STT), today released the results
of the State Street Investor Confidence Index(R) for July 2008.

Global Investor Confidence rose by 3.6 points to 82.6 from a
revised June level of 79.0. Asian investors were the key drivers of
this, as their risk appetite increased by 8.5 points from 74.4 to
82.9. The confidence of North American institutional investors
decreased by 6.9 points to 84.7 while European institutional
investors' confidence fell by negligible 0.9 points to 80.5.

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.

"Globally, confidence improved somewhat, though this masks some
regional variation," commented Froot. "Despite the market turmoil of
the recent weeks, particularly in the financial sector, institutional
investors perceive some value at current price levels, and their
willingness to take risk to capture that value continues to improve
from its December lows."

"After witnessing some significant regional disparities over the
last year, this month we saw convergence across regions," added
O'Connell. "North American investors were the first to turn
pessimistic during the current cycle, and their risk appetite fell
steeply in the fourth quarter of 2007. It wasn't until the second
quarter of 2008 that European and Asian investors turned pessimistic,
a period when North American confidence began to recover. With this
month's slight decline in North America coupled with a rebound in
confidence in both Europe and Asia, investors are more in alignment
globally than they have been for some time."

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 (NYSE: 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 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, July 22, 2008, and the
company will not undertake efforts to revise those forward-looking
statements to reflect events after this date.

State Street Global Markets
Marie McGehee, + 1 617-664-1898

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