SCOTTISH WIDOWS INVESTMENT PARTNERSHIP RENEWS OUTSOURCING PARTNERSHIP WITH STATE STREET

EDINBURGH, SCOTLAND and BOSTON ... September 27, 2005 -- Scottish Widows Investment Partnership (SWIP) today announced that it has renewed its investment operations outsourcing arrangement with State Street Corporation (NYSE: STT) following five years of successful partnership. The original outsourcing mandate, announced in October 2000, was an industry first in Europe.

"The SWIP Business Operations team led by Arun Sarwal, our COO, conducted a comprehensive evaluation process over a 12 month period. The rigorous process focused on service levels, functionality, commitment and costs. Our team was impressed by the advance made by the industry in terms of the professionalism and capabilities on offer. We are delighted, however, that State Street remains the best choice for SWIP and its clients," said Archie Kane, Chief Executive of Scottish Widows and Chairman of SWIP.

Chris Phillips, Chief Executive Officer at SWIP continued, "Outsourcing has enabled SWIP to have a robust, cost efficient and scaleable operating platform. We are very confident that we, and our clients, will continue to benefit from this partnership and benefit from our ability to focus our energies on investment performance and product innovation."

In October 2000, SWIP, one of the largest asset management firms in Europe, appointed State Street to provide back & middle office, custody, trustee and investment administration services for its entire range of life, pensions and investment products.

"This clearly demonstrates that the outsourcing model can be a success," said Ronald E. Logue, Chairman and Chief Executive Officer of State Street. "Scottish Widows Investment Partnership was one of our first full middle office outsourcing clients and although we have added considerably to our client roster since then, with $2.8 trillion in assets under administration, our focus on delivering for them has never faltered. With a servicing platform that now spans the globe and every single asset class, we can continue to provide SWIP with excellent service and an expanding array of product development and enhancements."

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