State Street Awarded $224 Billion Investment Servicing Mandate For Bank of America’s Columbia Management Group

Factors in Appointment Include Ability to Provide Integrated Suite of Investment Services and Proven Performance

Boston, March 9, 2005 – State Street Corporation (NYSE:STT), the world’s leading provider of services to institutional investors, announced today that it has been appointed to provide investment operations services to the fund complexes of Columbia Management Group (Columbia Management), Bank of America’s asset management arm (NYSE: BAC). The move follows Bank of America’s acquisition last year of FleetBoston Financial and expands State Street’s existing relationship with Columbia Management as service provider for their funds.

State Street will provide custody, fund accounting, and financial reporting for $224 billion of Columbia Management’s assets including the Columbia, Nations, Acorn and Galaxy Funds and other managed assets. Boston Financial (BFDS), a joint venture of State Street and DST Systems, Inc. and a leading provider of automated shareholder recordkeeping for mutual fund management companies, has been selected to provide transfer agency services to the funds. The selections are contingent upon completion of final contractual agreements.

"This is another important milestone for the mutual fund industry in Boston," said Jay Hooley, executive vice president and head of global investment services for State Street. "State Street was appointed to service the first-ever mutual fund launched in 1924 and today we stand ready to support Columbia Management as Bank of America embarks upon one of the largest fund integrations in the industry’s history. We are delighted to expand our existing relationship with them and we look forward to building a rich history together."

This new mandate builds on State Street’s existing relationship with Columbia Management during which it has successfully supported more than 50 fund mergers, 190 accounting conversions and 127 custody conversions, over the past four years.

As part of the mandate, approximately 100 positions will be created comprising approximately 40 in fund accounting and custody at State Street and approximately 60 in transfer agency at BFDS.

"State Street and BFDS were selected on the basis of several critical factors," said Christopher L. Wilson, Columbia Management’s head of mutual funds. "Columbia Management sought a fully integrated transfer agency, custodial services and fund accounting platform. State Street and BFDS are uniquely positioned to provide what we need," he explained. "Reducing the number of vendors allows us to capitalize on efficiencies, build consistent internal controls and manage risk more effectively. Ultimately, this will improve the quality of service that we provide to our shareholders."

State Street is the leading provider of fund accounting in the United States, servicing more than 40 percent of the mutual fund industry, and is the largest contributor of mutual fund NAV's to NASDAQ. In 2004, State Street was named "Best Global Custodian for North American Mutual Fund Managers" and "Best North American Sole Custodian" in Global Investor magazine’s 2004 Global Custody Survey. International Custody & Fund Administration magazine also named State Street "European Mutual Fund Administrator of the Year" in its 2005 European Custody and Fund Administration Awards.

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.

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