Press Release

Announces Expanded Service Relationships with IBM and Wipro Technologies to Further Accelerate New Technology Development

BOSTON, Jul 19, 2011 (BUSINESS WIRE) -- State Street Corporation (NYSE: STT), one of the world's leading providers of financial services to institutional investors, today provided an update of its multi-year business operations and IT transformation program. First announced in November 2010, the program is designed to enhance State Street's growth by substantially increasing its focus on technology research and development and service excellence to drive innovation for clients and to streamline its operating model.

In step with the program, which is expected to be completed in 2014, the company will expand its longstanding relationships with IBM and Wipro Technologies (Wipro) to support components of its technology infrastructure and application maintenance and support systems. IBM is a global leader in business and technology services with expertise in the financial services industry, and Wipro is a leading global information technology and consulting company that specializes in IT solutions and services. By expanding its relationships with two established industry leaders that specialize in IT support services, State Street can increase the efficiency and effectiveness of its overall IT operation. State Street's internal IT resources will be more focused on research and development, including further use of innovations such as private-cloud computing that will create more sophisticated, client-facing solutions and services.

As part of this program, approximately 320 non-client facing State Street IT employees will transition to IBM or Wipro and another approximately 530 non-client facing IT employees will be provided with severance and outplacement services as their roles are eliminated over the course of the next 18-20 months. Nearly all of the impacted employees are located in North America. State Street currently employs approximately 4,000 IT employees worldwide.

"Our business operations and IT transformation program reflects our commitment to maintaining an advantage that supports our continued growth in an increasingly competitive global environment," said James S. Phalen, executive vice president and head of Global Operations, Technology and Product Development. "While making changes that impact a number of our employees is never easy, we believe that this move is a necessary step that will allow us to better deploy our resources in line with our core competencies, efficiently leverage the capabilities of our partners, and enable us to offer more sophisticated products and services to our clients."

As announced on November 30, 2010, State Street expects to achieve annual pre-tax run-rate expense savings from its business transformation initiatives of between $575 million and $625 million by the end of 2014 and to record pre-tax restructuring charges of between $400 million to $450 million in total over the four-year period. The Company expects to record approximately $110 million to $130 million of those pre-tax restructuring charges in the second half of 2011 to accrue for the severance and related costs associated with workforce reduction and other transition costs as a result of the company's expanded technology relationships described above.

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 $22.762 trillion in assets under custody and administration and $2.116 trillion* in assets under management at June 30, 2011, State Street operates in 26 countries and more than 100 geographic markets and employs 29,450 worldwide. For more information, visit State Street's web site at http://www.statestreet.com or call +1 877/639-7788 [NEWS STT] toll-free in the United States and Canada, or +1 678/999-4577 outside those countries.

*This AUM includes the assets of the SPDR Gold Trust (approx. $58 billion as of June 30, 2011), for which State Street Global Markets, LLC, an affiliate of State Street Global Advisors, serves as the marketing agent.

Forward-Looking Statements

This news release contains forward-looking statements as defined by United States securities laws, including statements relating to our goals and expectations regarding our multi-year business transformation program and the financial, operational, technological, customer and other business effects and strategies of that program. Forward-looking statements are often identified by such forward-looking terminology as "plan," "expect," "look," "believe," "anticipate," "estimate," "seek," "may," "will," "trend," "target," and "goal," or similar statements or variations of such terms. These statements are not guarantees of future performance, are inherently uncertain, are based on current assumptions that are difficult to predict and involve a number of risks and uncertainties. Therefore, actual outcomes and results may differ materially from what is expressed in those statements, and those statements should not be relied upon as representing our expectations or beliefs as of any date subsequent to July 19, 2011.

Important factors that may affect future results and outcomes include, but are not limited to:

• delays or difficulties in the execution of our multi-year business operations and IT transformation program, which could lead to changes in our estimates of the charges, expenses or savings associated with the planned program, resulting in increased volatility of our earnings, or which could limit the anticipated benefits of the program;
• our ability to control operating risks, data security breach risks, information technology systems risks and outsourcing risks, and our ability to protect our intellectual property rights, the possibility of errors in the quantitative models we use to manage our business and the possibility that our controls will prove insufficient, fail or be circumvented;
• the manner in which the Federal Reserve and other regulators implement the Dodd-Frank Act and other regulatory initiatives in the U.S. and internationally, including any increases in the minimum regulatory capital ratios applicable to us and regulatory developments that result in changes to our operating model, or other changes to the provision of our services in order to comply with or respond to such regulations;
• required regulatory capital ratios under Basel II and Basel III, in each case as fully implemented by State Street and State Street Bank (and in the case of Basel III, when finally adopted by the Federal Reserve), which may result in the need for substantial additional capital or increased levels of liquidity in the future;
• changes in law or regulation that may adversely affect our, our clients' or our counterparties' business activities and the products or services that we sell, including additional or increased taxes or assessments thereon, capital adequacy requirements and changes that expose us to risks related to compliance;
• financial market disruptions and the economic recession, whether in the U.S. or internationally;
• the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities, and the liquidity requirements of our clients;
• increases in the volatility of, or declines in the levels of, our net interest revenue, changes in the composition of the assets carried in our consolidated statement of condition and the possibility that we may be required to change the manner in which we fund those assets;
• the financial strength and continuing viability of the counterparties with which we or our clients do business and to which we have investment, credit or financial exposure;
• the credit quality, credit agency ratings, and fair values of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the respective securities and the recognition of an impairment loss in our consolidated statement of income;
• the maintenance of credit agency ratings for our debt and depository obligations as well as the level of credibility of credit agency ratings;
• the risks that acquired businesses will not be integrated successfully, or that the integration will take longer than anticipated, that expected synergies will not be achieved or unexpected disynergies will be experienced, that client and deposit retention goals will not be met, that other regulatory or operational challenges will be experienced and that disruptions from the transaction will harm relationships with clients, employees or regulators;
• the ability to complete acquisitions, divestitures and joint ventures, including the ability to obtain regulatory approvals, the ability to arrange financing as required and the ability to satisfy closing conditions;
• the performance of and demand for the products and services we offer, including the level and timing of redemptions and withdrawals from our collateral pools and other collective investment products;
• the possibility that our clients will incur substantial losses in investment pools where we act as agent, and the possibility of significant reductions in the valuation of assets;
• our ability to attract deposits and other low-cost, short-term funding;
• potential changes to the competitive environment, including changes due to the effects of consolidation, and perceptions of State Street as a suitable service provider or counterparty;
• the level and volatility of interest rates and the performance and volatility of securities, credit, currency and other markets in the U.S. and internationally;
• our ability to measure the fair value of the investment securities carried in our consolidated statement of condition;
• the results of litigation, government investigations and similar disputes or proceedings;
• adverse publicity or other reputational harm;
• our ability to grow revenue, attract and/or retain and compensate highly skilled people, control expenses and attract the capital necessary to achieve our business goals and comply with regulatory requirements;
• the potential for new products and services to impose additional costs on us and expose us to increased operational risk;
• changes in accounting standards and practices; and
• changes in tax legislation and in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that affect the amount of taxes due.

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2010 Annual Report on Form 10-K and our subsequent SEC filings. We encourage investors to read these filings, particularly the sections on risk factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this presentation speak only as of the date hereof, July 19, 2011, and we do not undertake efforts to revise those forward-looking statements to reflect events after that date.

SOURCE: State Street Corporation

State Street Corporation
Arlene Roberts, + 1 617-664-3933
or
Alicia Curran Sweeney, +1 617-664-3001