State Street Celebrates Company's New York Expansion at Reception in New York.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 20, 2003

Chairman and CEO David Spina Joins with City Officials to Affirm

Company's Commitment to Economic Prosperity of Lower Manhattan

State Street Corporation (NYSE: STT) Chairman and CEO David Spina outlined the company's commitment to the city during a reception in New York last night. Spina addressed city and state officials including Public Advocate Betsy Gotbaum; New York City Council Members Alan Gerson and David Weprin; Josh Sirefman, Chief Operating Officer of the New York City Economic Development Corporation; and Kevin Corbett Chief Operating Officer of Empire State Development Corporation. Spina outlined State Street's commitment to New York City and its decision to consolidate its existing offices in New York in to a new 80,000 square-foot office space at Two World Financial Center.

Also at the event, the Empire State Development Corporation announced that its Board of Directors is set to approve a $9.13 million Job Creation and Retention Program (JCRP) for State Street. This joint grant from the Empire State Development Corporation (ESDC) and the NYC Economic Development Corporation (EDC) will include up to $2.73 million for the relocation of 455 existing jobs to Lower Manhattan and up to $6.4 million for future expansion in Lower Manhattan over the next five years.

"Every day we're seeing more progress in Lower Manhattan's stunning recovery," said Mayor Michael R. Bloomberg. "Joining other world-class organizations such as OppenheimerFunds and Cadwalader in establishing their New York offices downtown, State Street's decision sends an important signal to New York City's business community that Lower Manhattan is back in business. By working together with the State, we've helped create and retain about 64,000 jobs in Lower Manhattan by distributing roughly $235 million through the Job Creation and Retention Program to more than 70 large companies. We thank State Street and its employees for everything they're doing to make Lower Manhattan stronger than ever."

"State Street is pleased to expand our presence in New York, a premier financial center that is vital to the world's financial markets," said Spina. "We have significant relationships throughout the state, and this move enables us to expand our local service and operations. The development of the new neighboring World Trade Center will also serve a symbol of the strength for the global financial community."

State Street's new offices will include employees gained from its acquisition of the Global Securities Services businesses of Deutsche Bank as well as client service and relationship management teams from its securities finance, wealth manager services, global markets, and institutional investor services divisions.

"The long-term commitment of this company to Lower Manhattan will have a substantial economic impact on the downtown area and New York City by stabilizing jobs and retaining tax revenue," said Charles A Gargano, chairman of Empire State Development. "It is because of the key leadership of Governor Pataki and Mayor Bloomberg that this program has been so successful. Empire State Development and the State will continue to work with business leaders and the State to achieve our goal of keeping New York City in its leadership position."

State Street has maintained a longstanding presence in New York for 39 years, beginning in 1964 with the incorporation of State Street Bank International, and has consistently contributed to the economic and social well-being of the community. Since 1996, State Street has made large grants to the state's charitable organizations, including the New York Public Library and Big Brothers/Big Sisters.

About State Street:

State Street Corporation (NYSE: STT) is the world's leading specialist in providing institutional investors with investment servicing, investment management, research and analytics and trading services. With $8.8 trillion in assets under custody and $965 billion in assets under management (as of September 30, 2003), State Street operates in 23 countries and over 100 markets worldwide. For more information, visit State Street's web site at www.statestreet.com.