State Street Introduces Two New Fixed Income ETFs

State Street Global Advisors (SSgA), the investment management arm of State Street Corporation (NYSE: STT), today announced the launch of the SPDR® Barclays Capital Short Term International Treasury Bond ETF (Symbol: BWZ) and the SPDR Barclays Capital Mortgage Backed Bond ETF (Symbol: MBG)¹. Designed to provide investors with cost-efficient exposure to precise segments of the fixed income market, the two new SPDR exchange traded funds (ETFs) will begin trading on the NYSE Arca on January 27, 2009.

“Recent market volatility has increased demand for fixed income ETFs that provide efficient and cost-effective exposure to markets that help investors enhance the diversification of their fixed income holdings,” said James Ross, senior managing director at State Street Global Advisors.

The SPDR Barclays Capital Short Term International Treasury Bond ETF is designed to track the price and yield performance of the Barclays Capital 1-3 Year Global Treasury ex-US Capped Index. As of December 31, 2008, the Index included 229 issues with remaining maturities of one to three years from 21 investment-grade countries outside of the United States. The SPDR Barclays Capital Short Term International Treasury Bond ETF’s expense ratio is 0.35 percent.

“Offering exposure to 1-3 year international treasuries, the SPDR Barclays Capital Short Term International Treasury Bond ETF expands our offerings in the burgeoning international bond category and provides investors with a new tool to add non-U.S. fixed income exposure to their portfolios, benefit from favorable interest rates overseas, and express a view on the [U.S.] dollar,” Ross continued.

On October 5, 2007, State Street launched the SPDR Barclays Capital International Treasury Bond ETF (BWX). As the first international bond ETF available to US investors, this fund has emerged as one of the fastest-growing fixed income ETFs. As of January 22, 2008, assets under management in the SPDR Barclays Capital International Treasury Bond ETF totaled approximately $906 million.

The SPDR Barclays Capital Mortgage Backed Bond ETF is designed to track the price and yield of the Barclays Capital U.S. MBS Index (the “MBS Index”). The MBS Index measures the performance of the U.S. agency mortgage pass-through segment of the U.S. investment grade bond market. As of December 31, 2008, the Index included 1,727 issues and an average credit quality rating of AAA/Aaa. The SPDR Barclays Capital Mortgage Backed Bond ETF’s expense ratio is 0.20 percent.

State Street Global Advisors is one of the largest ETF providers in the United States and globally. As of December 31, 2008, U.S. assets under management for SPDR ETFs totaled more than $159 billion.

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 $1.4 trillion in assets under management at December 31, 2008, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, Toronto and Zurich, and offices in 27 cities worldwide. For more information, visit State Street Global Advisors at www.ssga.com.

Note to Editors: SPDR Exchange Traded Funds

SPDR ETFs are a comprehensive family spanning an array of international and domestic asset classes. SPDR ETFs provide professional investors with the flexibility to select investments that are precisely aligned to their investment strategy. Recognized as the industry pioneer, State Street—in partnership with the American Stock Exchange—created the first ETF in 1993 (SPDR S&P 500 ETF– Ticker SPY). Since then, we’ve sustained our place as an industry innovator through the introduction of many ground-breaking products, including first-to-market successes with gold, international real estate, international fixed income and sector ETFs. SPDR ETFs are managed or marketed by SSgA or SSgA Funds Management, Inc, a registered investment adviser and wholly owned subsidiary of State Street Bank and Trust Company.

¹SPDR ETFs are managed by SSgA Funds Management, Inc., a registered investment adviser and part of SSgA.

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

Bond funds contain interest rate risk (as interest rates rise bond prices usually fall); the risk of issuer default; and inflation risk.

There are additional risks for funds that invest in mortgage-backed and asset-backed securities including the risk of issuer default; credit risk and inflation risk.

Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations.

State Street Global Markets, LLC, member FINRA, SIPC is distributor for all SPDRs products and is 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. ALPS Distributors, Inc., a registered broker-dealer, is distributor for SPDR shares, MidCap SPDRs and Dow Diamonds, all unit investment trusts and Select Sector SPDRs.

Before investing, consider the funds’ investment objectives, risks, charges and expenses. To obtain a prospectus which contains this and other information, call 1-866-787-2257 or visit www.spdrs.com.Read it carefully.

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