State Street's SPDR and DIAMONDS Exchange-Traded Funds Receive '40 Act Relief from SEC; Exemptive Relief Permits Greater Investment by Mutual Funds.

Business Editors

BOSTON--(BUSINESS WIRE)--May 3, 2004

State Street Corporation (NYSE: STT), the world's leading provider of services to institutional investors, announced today that its SPDR(R) and DIAMONDS(R) exchange-traded funds (ETFs) have received additional exemptive relief from the Securities and Exchange Commission (SEC). This relief will enable registered investment companies to invest in these ETFs in excess of the limits of Section 12(d)(1)(A) of the Investment Company Act of 1940, subject to certain conditions.

Section 12(d)(1)(A) prohibits an investment company from a) acquiring more than three percent of the total outstanding voting stock of another investment company; b) investing more than five percent of its total assets in a single investment company; and c) investing more than 10 percent of its total assets in two or more investment companies.

"The SPDR and DIAMONDS have proven to be effective portfolio management tools, providing investors with broadly diversified, liquid and cost effective exposure to equity markets," said Gus Fleites, managing director of SSgA's Advisor Strategies team. "The SEC's action provides U.S. mutual funds with more flexibility in utilizing the SPDR and DIAMONDS toward achieving their investment goals."

"The SEC's approval of the exemptive relief for these ETFs will help to enhance their utility," said Cliff Weber, senior vice president of the Amex ETF Marketplace. "As the global leader in listing exchange traded funds, we continually strive to bring new and improved ETF investing opportunities to the marketplace."

State Street, in partnership with the American Stock Exchange, introduced the first ETF, the SPDR, in 1993 and the DIAMONDS in 1998. Both are Unit Investment Trusts (UITs). The SPDR Trust has assets of approximately $42 billion and is benchmarked against the S&P 500 Index. The DIAMONDS Trust has assets of approximately $7.6 billion and is benchmarked against the Dow Jones Industrial Average. State Street Global Advisors, the investment management arm of State Street Corporation and the largest institutional fund manager in the world, has more than $63 billion in ETF assets under management worldwide, which represents approximately 27 percent of ETF assets globally.(1)

State Street Global Advisors, the investment management group of State Street Corporation, delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $1.2 trillion in investment programs and portfolios, State Street Global Advisors has investment centers in Boston, Hong Kong, Tokyo, Singapore, London, Paris, Montreal, Munich, and Sydney, and offices in 28 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com.

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 $9.4 trillion in assets under custody and $1.2 trillion in assets under management, State Street operates in 24 countries and more than 100 markets worldwide and employs 19,800 people worldwide. For more information, visit State Street's Web site at www.statestreet.com.

The American Stock Exchange(R) (Amex(R)) is the only primary exchange that offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRS(SM). In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 138 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks.

An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. To obtain a SPDR or DIAMONDS prospectus, which contains this and other information, go to www.amex.com/SPY or www.amex.com/DIA or call 1-800-THE AMEX. Please read the prospectus carefully before investing.

ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR and DIAMONDS, both unit investment trust. SPDR and DIAMONDS are subject to risks including loss of principal.

"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's Depositary Receipts(R)," "SPDR(R)," are trademarks of The McGraw-Hill Companies, Inc., and have been licensed for use by PDR Services LLC and the American Stock Exchange LLC in connection with the listing and trading of SPDRs on the Amex. These products are not sponsored, sold or endorsed by Standard & Poor's, (S&P), a division of The McGraw-Hill Companies, Inc., and S&P makes no representation regarding the advisability of investing in them.

"Dow Jones(SM)," "The Dow(SM)," "Dow Jones Industrial Average(SM)", "DJIA(SM) " and "DIAMONDS(R)" are trade/service marks of Dow Jones & Company, Inc. ("Dow Jones") and have been licensed for use for certain purposes by the American Stock Exchange LLC and PDR Services LLC pursuant to a License Agreement with Dow Jones. The DIAMONDS Trust, based on the DJIA, is not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in the DIAMONDS Trust.

(1) Source: SSgA Advisor Consulting Services. As of April 26, 2004.