State Street Announces Private Equity Index Results

BOSTON--(Business Wire)--
State Street Corporation (NYSE:STT), the world's leading provider
of financial services to institutional investors, announced today the
results of the State Street Private Equity Index(sm) as of March 31,
2008. The index is based on the latest quarterly statistics from State
Street Investment Analytics' Private Edge(R) Group.

The Private Edge(R) Group provides detailed analyses of private
equity investments for a diverse client base including public and
private pensions, endowments and foundations, representing more than
4,000 commitments totaling more than $200 billion. The Private Edge(R)
Group has one of the most extensive and comprehensive private equity
data sets currently maintained in the marketplace, including
partnership information down to the portfolio company level.

State Street Investment Analytics provides performance and
analytics services through 14 offices located around the world. It
provides services for more than 1,200 clients globally on asset
volumes exceeding $5.5 trillion in assets.

The following tables (see accompanying multimedia) depict the
quarter-over-quarter internal rates of return (IRR) of the index, the
end-to-end IRRs for the index across 1-, 3-, 5- and 10-year horizons
as of March 31, 2008, and the long-term internal rates of return (IRR)
of the index by major private equity strategy, in addition to the
composition of the index.

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*T
State Street Private Equity Index(sm)
Composition and long-term IRR as of March 31, 2008

Strategy Number of Commitments Long-term
Funds ($B) IRR%
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Buyout 639 885.9 15.4
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Venture Capital 607 202.7 12.9
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Other 170 149.2 12.8
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Total 1,416 1,237.8 14.8
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US only 1,168 961.2 13.9
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International only 248 276.6 20.6
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*T

"While private equity wasn't immune to the turbulence in the
financial market in the first quarter of 2008," said Gerard J.
Labonte, vice president, State Street Corporation, "swings in private
equity valuations are tempered by the focus on long-term management of
underlying investments instead of reaction to quarterly earnings
announcements. Overall, residual value multiples for the Index
actually remained fairly stable from the prior quarter."

Commenting on the prospects for new launches in the current
economic landscape, Labonte noted, "We've noticed that funds launched
in 2003, the year of the most recent (public) market bottom, have
performed quite well in comparison to their peers. If recent history
is any indication, funds launched in turbulent times can obtain
pricing advantages to generate significant long-term returns."

About State Street Investment Analytics

State Street Investment Analytics (SSIA) 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(R) 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. SSIA provides client services from 14
offices around the world, including Alameda, Amsterdam, Boston,
Dublin, Edinburgh, Frankfurt, Hong Kong, London, Luxembourg, New York,
Paris, Sydney, Toronto and Zurich.

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. For more information, visit State Street's website at
www.statestreet.com.

State Street Corporation
Jessica Gioglio, +1 617-664-8672

Copyright Business Wire 2008