Investor Confidence Index Declines to 84.3 in July

According to the July index, investor confidence decreased by 6.2points to 84.3 from June's revised reading of 90.5. Lookingregionally, the confidence of North American institutional investorsfell from 106.7 to 99.1. The confidence of Asian investors increasedslightly to 81.5 from 80.2, and the confidence of European investorsdecreased to 85.4 from 86.5.

Developed through State Street Global Markets' researchpartnership, State Street Associates, by Harvard University professorKen Froot and State Street Associates Director Paul O'Connell, theState Street Investor Confidence Index(R) measures investor confidenceon a quantitative basis, analyzing actual buying and selling patternsof institutional investors. The index is based on financial theorythat assigns precise meaning to changes in investor risk sentiment, orthe willingness of investors to hold proportionally more or less oftheir portfolio in equities. The more of their portfolio thatinstitutional investors are willing to devote to equities, the greatertheir risk appetite or confidence.

"Over the last several months, investor confidence has reboundedoff new lows set early in the year," commented Froot. "But this is along way from saying that confidence is strong. Professional investorsseemed to have taken the opportunity in the last month, as marketsbecame relatively less turbulent, to take risk away from theirportfolios. The selling has not been dramatic, but is a reminder thatan improvement in sentiment alone is unlikely to reverse the declinein equity prices we have seen this year."

"This month, it is clear that most of the action is coming from adecline in the confidence of North American institutional investors,expressed in buying and selling decisions," commented O'Connell. "Theconfidence of Asian and European investors remains virtuallyunchanged. U.S. investors have had to contend with widely varyingviews of how the Fed and the U.S. economy will proceed, and this isexpressed in the recent volatility of their confidence levels."

Since its launch in September of 2003, the State Street InvestorConfidence Index(R) has become a key economic indicator for assetowners, investment managers and central banks. As the only indexproviding a quantitative measure tracking the common buying patternsof institutional investors around the world, the State Street InvestorConfidence Index(R) offers a unique look into the investment behaviorand decisions of thousands of professional investors and theirinvestment decisions.

About State Street Global Markets:

State Street Global Markets provides specialized investmentresearch and trading in foreign exchange, equities, fixed income andderivatives. Its goal is to enhance and preserve portfolio values forasset managers and asset owners. From its unique position at thecrossroads of the global markets, it creates and unlocks value for itsclients with original flow-based research, innovative portfoliostrategies, trade process optimization, and global connectivity acrossmultiple asset classes and markets.

State Street Global Markets' research team of leading academic andindustry experts is committed to continually advancing the science,including theory and application of its proprietary investor behaviorresearch and innovative portfolio & risk management technologies tohelp its clients challenge conventional thinking, shape ideas, makemore informed investment decisions and deliver measurable results.

About the State Street Investor Confidence Index(R):

The index is released globally at 10 a.m. Eastern time in Bostonon the second to last Tuesday of each month. More information on theState Street Investor Confidence Index, including frequently askedquestions and a calendar of release dates, is available athttp://www.statestreet.com/investorconfidenceindex. The previousmonth's calculations for the index are revised to account for tradingactivity through the end of the reporting period.

About State Street:

State Street Corporation (NYSE: STT) is the world's leadingspecialist in providing institutional investors with investmentservicing, investment management and investment research and tradingservices. With $10.9 trillion in assets under custody and $1.5trillion in assets under management at June 30, 2006, State Streetoperates in 26 countries and more than 100 geographic marketsworldwide. For more information, visit State Street's web site atwww.statestreet.com.

This news announcement contains forward-looking statements asdefined by United States securities laws, including statements aboutthe financial outlook and business environment. Those statements arebased on current expectations and involve a number of risks anduncertainties, including those related to the pace at which StateStreet adds new clients or at which existing clients use additionalservices, the value of global and regional financial markets, the paceof cross-border investment activity, changes in interest rates, thepace of worldwide economic growth and rates of inflation, the extentof volatility in currency markets, consolidations among clients andcompetitors, State Street's business mix, the dynamics of marketsState Street serves, and State Street's success at integrating andconverting acquisitions into its business. Other important factorsthat could cause actual results to differ materially from thoseindicated by any forward-looking statements are set forth in StateStreet's 2005 annual report and subsequent SEC filings. State Streetencourages investors to read the corporation's annual report,particularly the section on factors that may affect financial results,and its subsequent SEC filings for additional information with respectto any forward-looking statements and prior to making any investmentdecision. The forward-looking statements contained in this pressrelease speak only as of the date hereof, July 18, 2006, and thecompany will not undertake efforts to revise those forward-lookingstatements to reflect events after this date.