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STATE STREET WINS £25.5 BILLION INVESTMENT SERVICING MANDATE FROM LEADING INSURANCE COMPANY, PEARL GROUP
01/30/2008

London, UK — State Street Corporation (NYSE: STT), the world's leading provider of financial services to institutional investors, announced today that it has been appointed by Pearl Group Ltd. to provide a comprehensive range of investment services for £25.5 billion in assets. Pearl Group includes four life insurance companies in the United Kingdom — Pearl Assurance plc, London Life Ltd, NPI Ltd, and National Provident Life Ltd.

State Street will provide global custody, trade matching, derivatives processing and clearing, fund accounting, securities lending, trustee services, transfer agency, and transition management services to Pearl Group's current life insurance businesses.

"We sought a partner who could offer a broad range of high-quality services, as well as proven expertise in servicing the insurance industry and State Street perfectly fit the bill," said Tony Kassimiotis, chief operating officer of Pearl Group.

The services will be provided from State Street's operations in Edinburgh, London and Dublin. State Street Global Advisors, the investment management arm of State Street Corporation, currently provides investment management services to Pearl Group for cash emanating from Pearl Group's securities lending programme.

"We are delighted to win this new mandate from Pearl Group," said Wade McDonald, head of customer management for State Street's investor services team in the United Kingdom, Middle East and Africa. "We have built a leadership position in servicing the European insurance industry by delivering flexible solutions to meet a wide range of their needs. We are committed to providing Pearl Group with the highest quality service excellence."

State Street is the world's leading provider of investment accounting services to the insurance industry. This mandate builds on State Street's expertise in providing sophisticated insurance companies with the most comprehensive servicing solutions.

In November 2007, State Street released The State Street Vision Report on the insurance industry as part of its series of proprietary reports designed to help financial services professionals enhance their knowledge of key themes and trends affecting their industry. State Street’s insurance report offers an overview of major trends underway in the global insurance industry that will significantly impact growth and opportunities, such as the outsourcing of asset management and the evolution of new partnerships and alliances to build on product development and distribution. The report analyzes how these changes are driving the growth of third-party outsourcing in the industry and discusses new opportunities across all segments of the insurance business.

To obtain a copy of the report or for more information, members of the press can contact publicrelations@statestreet.com. All other requests should be directed to vision@statestreet.com.

State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $15.3 trillion in assets under custody and $2 trillion in assets under management at December 31, 2007, State Street operates in 26 countries and more than 100 geographic markets worldwide. For more information, visit State Street's web site at www.statestreet.com.

Pearl Group comprises Pearl, NPI and London Life and has over 3.6 million policyholders and manages around £25.5 billion of assets.

Pearl Group was acquired by Sun Capital Partners and TDR Capital in April 2005. Sun Capital and TDR Capital are committed, experienced and long-term investors. They are focused on the key areas of importance to customers: financial security, long-term investment returns and service.

Today's announcement demonstrates Pearl Group's dynamic management of its businesses, which since taking ownership has also seen Pearl:

•set up Axial Investment Management, the first fully integrated risk, liability and asset manager in the insurance industry, which is able to apply new skills and techniques to closed life books to improve the prospects for Pearl Group customers;

•increase the equity backing ratio ( EBR ) in the Pearl with-profits funds from 25% to 50% and from 10% to 35% for some business in the London Life with-profit fund in a move that can potentially increase investment returns for over one million Pearl Group customers with combined assets of over €11 billion;

•consolidate its operations onto one site in Peterborough and enter into a strategic business processes outsource agreement with Tata Consultancy Services;

•create a leading edge asset and risk management unit

•instigate major programmes to ensure that Pearl is an industry leader in treating customers fairly in run-off;

•grow its Embedded Value from €1.3billion to €2.1billion;

•sell the new and existing general insurance business of Pearl Group to Lloyds TSB Insurance.

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