State Street Global Advisors Launches SPDR O-Strip Exchange Traded Fund.

BOSTON -- First ETF to Track the S&P 500 O-Strip Index

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today announced the introduction of the SPDR(R) O-Strip exchange traded fund (ETF) (AMEX: OOO), the first ETF to track the newly-launched Standard & Poor's (S&P) 500 O-Strip Index.

The SPDR(R) O-Strip ETF is designed to allow an investor the ability to purchase, in a single trade, all of the individual S&P 500 constituent securities that are primarily traded on the over-the-counter market. All SPDR O-Strip constituents are members of the S&P 500 and must meet its specific criteria for index inclusion. The S&P 500 O-Strip Index currently includes 75 constituents, representing 15% of the total market capitalization of the S&P 500.(1)

"The introduction of the SPDR O-Strip ETF underscores our commitment to providing investors with sophisticated, yet practical investment options as part of a diversified range of investment products that will enable them to achieve their investment goals," said Gus Fleites, managing director of SSgA's Advisor Strategies unit.

"We created the S&P 500 O-Strip Index to help investors track different parts of the S&P 500," said Robert Shakotko, managing director for Standard & Poor's. "The new SPDR O-Strip launched by SSgA will permit investors to buy a portfolio of companies that represents one of the building blocks of the S&P 500."

Through an agreement with Standard & Poor's, the SPDR O-Strip ETF will become part of the SPDR family of ETFs based on S&P indices. The ticker symbol for the S&P 500 O-Strip Index is SPOS. More information, including index constituents, history and pricing is available at www.indices.standardandpoors.com.

State Street, in partnership with the American Stock Exchange, introduced the first ETF, the SPDR, in 1993. State Street Global Advisors has more than $64 billion in ETF assets under management worldwide, which represents approximately 28 percent of ETF assets globally.(2)

SSgA Funds Management, Inc. (SSgA FM) is the advisor for the SPDR O-Strip ETF. SSgA FM, with other investment management affiliates of State Street Corporation, comprise SSgA, the investment management arm of State Street Corporation. SSgA is the largest institutional investment manager in the world delivering 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, SSgA 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.

Standard & Poor's, a division of The McGraw-Hill Companies (NYSE:MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With 5000 employees located in 20 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.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, 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 139 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.

(1) Source: Standard & Poor's as of June 30, 2004.

(2) Source: SSgA Advisor Consulting Services as of July 31, 2004.

An investor should consider investment objectives, risks, charges and expenses of the investment company carefully before investing. To obtain a prospectus, which contains this and other information about the fund, go to www.streettracks.com or call 1-866-787-2257. Please read the prospectus carefully before investing.

Distributor: State Street Global Markets, LLC, member NASD, SIPC 

Date of first Use: 09/04

"S&P(R)", "Standard & Poor's(R)", "S&P 500(R)", "SPDR(R)" and "S&P 500 O-Strip(R)" and "SPDR" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by State Street Global Advisors. The SPDR O-Strip(R) Exchange Traded Fund is not sponsored, endorsed, sold or promoted by S&P and S&P makes no representation regarding the advisability of investing in the Fund.