State Street Unveils First International Inflation-Protected Bond ETF

BOSTON--(BUSINESS WIRE)--State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT) and the largest institutional fund manager in the world¹, today announced that the SPDR^® DB International Government Inflation-Protected Bond ETF (Ticker: WIP) will begin trading on the American Stock Exchange (Amex) on March 19, 2008.

“Demand for international inflation-linked bond exposure has increased significantly in recent years as investors look to improve the risk-return profile of their portfolios by hedging against inflation and US dollar exposure while improving diversification”

The SPDR DB International Government Inflation-Protected Bond ETF seeks to track the DB Global Government ex-US Inflation-Linked Bond Capped Index, which includes 120 inflation-indexed bonds from 18 developed and emerging countries outside of the US. To be included in the Index, bonds must be capital-indexed and linked to an eligible inflation index; have at least one year remaining to maturity at the Index rebalancing date; have a fixed, step-up, or zero notional coupon; and settle on or before the Index rebalancing date. The Fund’s expense ratio is 0.50 percent.

“Demand for international inflation-linked bond exposure has increased significantly in recent years as investors look to improve the risk-return profile of their portfolios by hedging against inflation and US dollar exposure while improving diversification,” said James Ross, senior managing director at State Street. “As the first ETF to offer investors access to this unique asset class, the SPDR DB International Government Inflation-Protected Bond ETF is a compelling addition to our growing family of fixed income SPDR ETFs.”

Aram Flores, Managing Director and Head of Index Research for the Americas, commented, “The DB Global Government ex-US Inflation-Linked Bond Capped Index was developed to serve as a benchmark for inflation-linked bonds, a market that has experienced strong growth in recent years. We are pleased that State Street Global Advisors has selected this innovative index to launch a SPDR as the first international inflation-linked bond ETF.”

State Street manages more than $141 billion in ETF assets worldwide (as of February 29, 2007) and is one of the largest providers in the United States and globally.

About State Street Global Advisors

State Street Global Advisors, the investment management arm of State Street Corporation (NYSE: STT), delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $2 trillion in assets under management at December 31, 2007, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 27 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com.

¹ Source: Pensions & Investments magazine, based on assets under management as of December 31, 2006.

ETFs trade like stocks, are subject to investment risk and will fluctuate in market value.

Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations; all of which may be magnified in emerging markets. Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; and inflation risk.

Diversification does not ensure a profit or guarantee against loss. Past performance is no guarantee of future results. It is not possible to invest directly in an index.

“Deutsche Bank” and “DB Global Government ex-US Inflation-Linked Bond Capped Index ^SM” are reprinted with permission. © Copyright 2008 Deutsche Bank AG. All rights reserved. “Deutsche Bank” and “DB Global Government ex-US Inflation-Linked Bond Capped Index ^SM” are service marks of Deutsche Bank AG and have been licensed for use for certain purposes for State Street Global Advisors. The SPDR^® DB International Government Inflation-Protected Bond ETF is not sponsored, endorsed, sold or promoted by Deutsche Bank AG. Deutsche Bank AG, as Index Provider, makes no representation, express or implied, regarding the advisability of investing in this product.

The “SPDR” trademark is used under license from The McGraw-Hill Companies, Inc. (“McGraw-Hill”). No financial product offered by State Street Corporation or its affiliates is sponsored, endorsed, sold or promoted by McGraw-Hill. S&P® and S&P 500® Index are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by State Street Bank and Trust Company.

Investors should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. A prospectus which contains this and other information about the fund can be obtained by calling 866.787.2257 or speaking to your financial advisor. Read the prospectus carefully before investing.

Distributor: State Street Global Markets, LLC, member FINRA, SIPC, a wholly owned subsidiary of State Street Corporation. References to State Street may include State Street Corporation and its affiliates. Certain State Street affiliates provide services and receive fees from the SPDR ETFs.

10799-0309