State Street Appointed to Provide Managed Account Outsourcing Services

    Business Editors

    BOSTON & NEW YORK--(BUSINESS WIRE)--Feb. 22, 2005--

    Mandate Highlights State Street's Commitment to Providing Leading Asset Managers with Scalable Solutions for Managed Accounts

    State Street Corporation (NYSE: STT), the world's leading provider of services to institutional investors, announced today that it has been appointed by Brandywine Asset Management, a wholly-owned subsidiary of Legg Mason, Inc. to provide managed account outsourcing services for several billion dollars in assets.
    "Brandywine is excited about the opportunity to partner with State Street," said Larry Kassman, chief administrative officer of Brandywine. "State Street's knowledge and experience were clear differentiators for us in choosing a partner to service our managed account business. During our rigorous selection process, it became clear that State Street was the best fit for Brandywine due to their partnership philosophy, knowledge of the managed account marketplace, risk management, internal controls and commitment to the business. This partnership will allow us to target our resources on managing assets, developing new products and expanding our business."
    State Street will provide accounting, performance measurement, portfolio administration, trade support and investor reporting services for Brandywine's managed account portfolios. The business will be serviced from State Street's New York City operations at World Financial Center, under the direction of Thomas McKee, senior vice president of Wealth Manager Services for State Street.
    "Investment managers are increasingly recognizing the value of outsourcing to a provider who has comprehensive technology solutions that can support the unique requirements of managed accounts at scale," said Anne Tangen, executive vice president and head of Wealth Manager Services for State Street. "Working together with Brandywine, we are confident that our infrastructure and customer-focused approach will be an ideal fit for its managed account business."
    Since expanding its investor services capabilities in 2000 to address the needs of wealth managers, State Street's client roster within this market segment has grown three-fold across the United States and United Kingdom. State Street offers efficient operational infrastructure to support clients' wealth-management objectives, allowing them to focus on their core competencies. Clients include large, global investment managers as well as private client boutiques. To date, State Street has partnered with more than 50 wealth managers and provides services for approximately $150 billion in assets.
    Since its founding in 1986, Brandywine Asset Management, LLC, has been singularly focused on the value approach to investing. The firm offers an array of equity, fixed income, and balanced portfolios that invest in U.S., international, and global markets. As of December 31, 2004, Brandywine managed $18.5 billion for a range of clients, including public funds, corporations, educational institutions, Taft-Hartley plans, health care organizations, and high-net-worth individuals. The firm is a wholly owned, independently operated subsidiary of Legg Mason, Inc. (NYSE: LM), with headquarters in Wilmington, Del., and satellite offices in Chicago, San Francisco, and Singapore. For more information, visit Brandywine's Web site at http://www.brandywine-online.com/.

    Legg Mason, Inc., headquartered in Baltimore, is a holding company that provides asset management, securities brokerage, investment banking and related financial services through its subsidiaries. For more information, visit Legg Mason's Web site at http://www.leggmason.com/

    State Street Corporation (NYSE: STT) is the world's leading specialist in providing institutional investors with investment servicing, investment management and investment research and trading. With $9.5 trillion in assets under custody and $1.4 trillion in assets under management, as of December 31, 2004, State Street operates in 25 countries and more than 100 markets worldwide. For more information, visit State Street's Web site at www.statestreet.com.

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CONTACT: State Street Corporation Carolyn Cichon 617-664-8672

KEYWORD: MASSACHUSETTS MARYLAND NEW YORK INDUSTRY KEYWORD: BANKING PRODUCT MARKETING AGREEMENTS SOURCE: State Street Corporation

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