Scottish Widows Investment Partnership Renews Outsourcing Partnership with State Street.

EDINBURGH, Scotland and BOSTON -- Scottish Widows Investment Partnership (SWIP) today announced that it has renewed its investment operations outsourcing arrangement with State Street Corporation (NYSE: STT) following five years of successful partnership. The original outsourcing mandate, announced in October 2000, was an industry first in Europe.

"The SWIP Business Operations team led by Arun Sarwal, our COO, conducted a comprehensive evaluation process over a 12 month period. The rigorous process focused on service levels, functionality, commitment and costs. Our team was impressed by the advance made by the industry in terms of the professionalism and capabilities on offer. We are delighted, however, that State Street remains the best choice for SWIP and its clients," said Archie Kane, Chief Executive of Scottish Widows and Chairman of SWIP.

Chris Phillips, Chief Executive Officer at SWIP continued, "Outsourcing has enabled SWIP to have a robust, cost efficient and scaleable operating platform. We are very confident that we, and our clients, will continue to benefit from this partnership and benefit from our ability to focus our energies on investment performance and product innovation."

In October 2000, SWIP, one of the largest asset management firms in Europe, appointed State Street to provide back & middle office, custody, trustee and investment administration services for its entire range of life, pensions and investment products.

"This clearly demonstrates that the outsourcing model can be a success," said Ronald E. Logue, Chairman and Chief Executive Officer of State Street. "Scottish Widows Investment Partnership was one of our first full middle office outsourcing clients and although we have added considerably to our client roster since then, with $2.8 trillion in assets under administration, our focus on delivering for them has never faltered. With a servicing platform that now spans the globe and every single asset class, we can continue to provide SWIP with excellent service and an expanding array of product development and enhancements."

State Street and SWIP will conduct a teleconference call for members of the media on September 27, 2005 at 14.30 UK time/9:30 a.m Eastern. The conference call number is 001-913-981-4903 outside the U.S and 800-811-8824 in the U.S. Please call five minutes in advance to ensure that you are connected prior to the start of the teleconference. A replay of the call will be available after 2:00 p.m. (Eastern time) on 001-719-457-0820 outside the U.S and 888-203-1112 in the U.S. The confirmation code for all calls is 3514326.

Notes to Editors

Five years ago, State Street integrated the investment administration functions of SWIP's four component businesses - Lloyds TSB Life, Pensions and Investments (Andover), Scottish Widows (Edinburgh), Abbey Life (Bournemouth), and the former Hill Samuel Asset Management (London) -- which together span more than 27,000 holdings and 4,000 asset lines.

The transition of SWIP's asset servicing to State Street began in the first quarter of 2001 and was completed later that year, six months ahead of schedule. Since this transition, State Street has supported more than 250 new fund launches by SWIP across Europe including SWIP's Multimanager and Global Liquidity funds. SWIP and State Street also completed the largest-ever UK Unit Trust to OEIC conversion. Today, State Street generates more than 500 unitized prices daily on behalf of the Scottish Widows funds.

Scottish Widows Investment Partnership

--SWIP is one of the UK and Europe's largest fund managers with GBP 87.5bn funds under management (as at 30 June 2005).

--SWIP has a broad client base, managing assets for Pension Funds, Charities, Local Authorities, Life Funds, Unit Trusts, OEICs, Off-Shore Funds and Specialist Funds across all asset classes.

--It has a geographical diverse client base with alliances, joint ventures and clients in the UK, Europe, USA, Japan and the Middle East.

--SWIP's ultimate parent is Lloyds TSB Group Plc, one of the strongest financial services groups in Europe.

--SWIP is authorized and regulated by the Financial Services Authority.

--For more information, visit SWIP's website at www.swipartnership.com

State Street Corporation

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. With $9.6 trillion in assets under custody and $1.4 trillion in assets under management (as of June 30, 2005), State Street operates in 25 countries and more than 100 geographic markets worldwide. For more information, visit State Street's web site at www.statestreet.com.