NEW YORK, July 2, 2007 -- The Bank of New York Company, Inc. (NYSE: BK) and Mellon Financial Corporation (NYSE: MEL) announced today they have completed their merger to form The Bank of New York Mellon Corporation, creating the global leader in asset management and securities servicing. The new company trades on the New York Stock Exchange under the symbol "BK."

The company ranks as one of the largest global asset managers with more than $1 trillion in assets under management and is the world's leading asset servicer with more than $18 trillion in assets under custody and administration.

"Today we are establishing a global financial services growth company without peer," said Robert P. Kelly, chief executive officer of the company. "We have leadership positions across a range of high-growth businesses, unmatched product breadth, and the ability to accelerate our global expansion through strategic investments. With exceptional service and performance as the hallmarks of the new company, we will foster a culture that rewards winning through relentless client focus, teamwork and execution."

In addition to asset management and securities servicing, the company is the leading provider of corporate trust, depositary receipts, clearing and shareowner services. It ranks as a top 10 U.S. wealth manager with more than $160 billion in client assets and is a leading U.S. cash management and global payments provider. The company has a balanced business mix, with diversified revenues and earnings across all regions of the world and a presence in the fastest-growing segments of asset management and securities servicing.

"The Bank of New York Mellon is positioned to provide superior service and value to our clients and deliver faster growth to our shareholders," said Thomas A. Renyi, executive chairman of the company. "We have closed the merger on target and are now ready to execute a disciplined, thoughtful integration of our capabilities to meet the current and future demands of our clients."

The Bank of New York and Mellon Financial announced plans to merge in December 2006, and shareholders of each company overwhelmingly approved the transaction in May. The company has annual revenues of approximately $13 billion and pro-forma market capitalization of approximately $50 billion. The company is headquartered in New York and has 40,000 employees around the world.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients move and manage their financial assets, operating in 37 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset and wealth management, asset servicing, issuer services, and treasury services through a worldwide client-focused team. It has more than $18 trillion in assets under custody and administration and $1 trillion in assets under management, and it services more than $11 trillion in outstanding debt. Additional information is available at www.bnymellon.com.

The information presented in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, statements with respect to the merger of The Bank of New York and Mellon Financial, including expectations with respect to the merged companies, integration and operations after the merger, future growth and delivery of faster growth to shareholders. These statements are based upon current beliefs and expectations and are subject to significant risks and uncertainties. The following risks, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward-looking statements: (1) the businesses of The Bank of New York and Mellon Financial may not be integrated successfully or the integration may be more difficult, time-consuming or costly than expected; (2) the combined company may not realize, to the extent or at the time we expect, revenue synergies and cost savings from the transaction; (3) revenues following the transaction may be lower than expected as a result of losses of customers or other reasons; and (4) deposit attrition, operating costs, customer loss and business disruption following the transaction, including, without limitation, difficulties in maintaining relationships with employees, may be greater than expected. Additional factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found in the Company's filings with the Securities and Exchange Commission and The Bank of New York Company, Inc.'s and Mellon Financial's historical reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the Securities and Exchange Commission. All forward-looking statements in this press release speak only as of the date on which such statements are made, and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events.

“The custody market in Kuwait and Saudi Arabia has great potential” said Kevin Smith, managing director of global network management at The Bank of New York. “Extending our network into these countries demonstrates the increased activity of the Middle Eastern region, and its importance as an emerging financial center. Our expanding presence underscores our commitment to service the needs of financial institutions and foreign multinationals conducting business in this important region.”

“We are delighted that The Bank of New York has appointed HSBC as its sub-custodian in Kuwait and Saudi Arabia, two increasingly important markets in the growing Middle East region. This appointment further strengthens our long term relationship, and we look forward to working together to help The Bank of New York service the needs of its clients,” said James Hogan, global head of custody and clearing at HSBC Securities Services.

Through its global network, The Bank of New York provides a full range of international banking and securities services, including funds transfer, trade finance, custody, global depositary receipts, securities lending, and investment management.

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, asset management, and wealth management. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

The new firm, to be called BNY ConvergEx Group, is expected to be established by the end of September, pending regulatory approval. The new company will be a leading global agency brokerage and technology company offering a complete spectrum of pre-trade, trade, and post-trade solutions for traditional money managers, hedge funds, broker-dealers, corporations and plan sponsors. The company's comprehensive suite of services, advanced technology offerings and breadth of distribution channels will enable its customers to manage all aspects of the trade life-cycle, including idea generation, research, analysis, trading and execution, risk management, compliance and portfolio management. It will also have a strong capital base to support its future growth.

The Bank of New York Company and GTCR Golder Rauner will each hold a 35.4 percent stake in the new company, with the balance held by Eze Castle Software's investors and BNY ConvergEx Group's management team. The new company, with proforma 2005 revenues of approximately $340 million, will be an affiliate of The Bank of New York and will be reflected on the Company's financial statements as an equity investment. The transaction is not expected to result in any net gain or loss for The Bank of New York and is expected to be neutral to earnings.

In addition to Eze Castle Software, the BNY Securities Group businesses to be included in BNY ConvergEx Group will be BNY Brokerage, Lynch, Jones & Ryan, G-Port, Westminster Research and BNY Jaywalk. Each business will retain its respective brand name and continue to operate as it does today, while taking advantage of the combined capabilities of BNY ConvergEx Group. In addition, The Bank of New York's B-Trade and G-Trade businesses are expected to become part of BNY ConvergEx Group in 2008, although in the interim they will continue to be owned by The Bank of New York. The Bank of New York Company's Pershing subsidiary, a leading global provider of clearing and financial services outsourcing, is not included in the transaction.

"The formation of BNY ConvergEx Group creates a new, more powerful organization that combines our current capabilities with one of the leading trade order management providers, backed by a leading private equity firm," said Thomas A. Renyi, chairman and chief executive officer of The Bank of New York Company. "By establishing BNY ConvergEx Group, we will be well positioned to accelerate the capital investments needed for expanding the products and services that will allow us to win and grow in a rapidly changing marketplace. As an affiliate, BNY ConvergEx Group will continue to be an integral part of The Bank of New York's offerings, providing a broader array of agency brokerage, order management and global transition management solutions to our institutional clients worldwide. In addition, the new firm will represent an attractive equity investment for us."

The BNY ConvergEx Group brand name was chosen to reflect the convergence of technologies required to provide open solutions that span the investment cycle. Approximately 635 employees from BNY Securities Group and Eze Castle Software will become part of BNY ConvergEx Group. BNY ConvergEx Group will have a global presence in New York, Boston, San Francisco, Chicago, Dallas, Stamford, London, Bermuda, Tokyo, Hong Kong, and Sydney.

"The dynamic, ongoing evolution of the financial marketplace has created the need for flexible, innovative technology solutions providers," said Joseph M. Velli, senior executive vice president of The Bank of New York and the future chairman and chief executive officer of BNY ConvergEx Group. "BNY ConvergEx Group will provide integrated trade execution, independent research, commission management and trade order management services. This will be an entrepreneurial organization that will move quickly to enhance and expand our product offerings, leveraging our collective experience and market leadership to create superior growth. Additionally, as an affiliate of the Bank, BNY ConvergEx Group will enable The Bank of New York to strengthen its technologies and service offerings to its core client base."

"I am very excited that Eze Castle Software will become part of a new, leading-edge business model that will combine the power of technology with the execution and research capabilities of BNY Securities Group," said Sean McLaughlin, founder and chairman of Eze Castle Software. "Many of our clients have been demanding better integration across the investment and trading workflow. BNY ConvergEx Group will be uniquely positioned to deliver the solutions that clients require."

"Our team at Eze Castle Software is pleased to be joining with BNY Securities Group to harness the combined power of our two firms," said Thomas P. Gavin, chief executive officer of Eze Castle Software. "Our industry-leading trade order management capabilities have helped investment management firms worldwide to automate their investment processes, and we look forward to providing an even broader suite of investment technology solutions as part of BNY ConvergEx Group."

Conference Call Information
The Bank of New York Company will hold a webcast and conference call for analysts and investors to discuss the details of this announcement on Friday, June 30, 2006, at 8:30 a.m. EDT. The presentation will be accessible from the Company's website at www.bankofny.com/presentations and also by telephone at 888-677-2456 within the United States or 517-623-4161 internationally. The passcode is "The Bank of New York." A recorded replay of the presentation will also be available on the Company's website and by telephone at 866-436-9402 within the United States or 203-369-1043 internationally after the presentation's conclusion.

About GTCR Golder Rauner, LLC
Founded in 1980, GTCR Golder Rauner, LLC is a leading private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to build leading companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. GTCR is the leading private equity investor in transaction processing and payments companies. For more information, visit www.gtcr.com.

About Eze Castle Software
Since 1995, Eze Castle Software has provided investment management firms with cutting-edge technology solutions to automate the investment process. With over 270 clients and offices in Boston, New York, San Francisco, Stamford, and London, Eze Castle Software is one of the largest order management product firms in the industry. Eze Castle Software's Product Suite provides multi-strategy global investment managers with the technology to support multi-asset-class order management, compliance, portfolio modeling, electronic trading, third-party data integration, mobile connectivity, real-time p/l, and commission management.

About The Bank of New York Company
BNY Securities Group is the global institutional agency brokerage organization of The Bank of New York Company, Inc. BNY Securities Group businesses to be included in BNY ConvergEx Group are BNY Brokerage Inc. (member NYSE, NASD, SIPC), Lynch, Jones & Ryan, Inc. (member NASD, SIPC), G-Port, Westminster Research Associates, Inc. (member NASD, SIPC) and BNY Jaywalk, Inc. BNY Brokerage is a premier institutional agency brokerage firm that provides full-value brokerage solutions to institutional asset owners, asset managers, and broker-dealers worldwide. It offers a full range of execution services, including specialized global transition management capabilities, commission management services, research and wholesale services. Lynch, Jones & Ryan, a subsidiary of BNY Brokerage, is a pioneer and global leader in commission recapture, providing services to over 2,000 funds worldwide with assets totaling more than $3 trillion. G-Port provides electronic global trading, liquidations and transitions. Westminster Research is a broker-dealer providing access to independent research coupled with a unique multiple trading approach to execution. BNY Jaywalk is a leading provider of investment research.

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, asset management, and private banking. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

Forward Looking Statements
All statements in this press release other than statements of historical fact are forward looking statements including, among other things, statements about the expected effect of the transaction, projections with respect to revenue and earnings and the Company's plans and objectives and as such are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements. These include lower than expected performance or higher than expected costs in connection with the transaction, inaccuracies in management projections or market forecasts, the actions that management could take in response to these changes and other factors described under the heading "Forward Looking Statements and Factors That Could Affect Future Results" in the Company's 2005 Form 10-K, which has been filed with the SEC and is available at the SEC's website (www.sec.gov).

Forward looking statements speak only as of the date they are made. The Company will not update forward looking statements to reflect factual assumptions, circumstances or events that have changed after a forward looking statement was made.

Takahide Akiyama has been appointed president of The Bank of New York Securities Company Japan and will continue in his current role as country head of Japan. Sumiko Katsuhara, vice president, will succeed Mr. Akiyama as general manager of The Bank of New York’s Tokyo branch.

Kenneth A. Lopian, executive vice president and Head of The Bank of New York’s Asia-Pacific Division, said, "We have been servicing clients in Japan for more than three decades, and this new subsidiary will improve our ability to meet the growing and sophisticated securities servicing needs of institutional investors across Japan."

The creation of The Bank of New York Securities Company Japan is the latest move by the Company to expand its presence in the Asia-Pacific region and follows the opening of its representative office in Kuala Lumpur in September 2005. The Company also has a representative office in Beijing and, through its subsidiaries Ivy Asset Management and BNY Brokerage, recently opened new offices in Tokyo and Sydney, respectively.

The Bank of New York has been conducting business in the Asia-Pacific region for over 50 years. The Company has 18 offices in 12 countries in the region, including full-service branches in Shanghai, Tokyo, Hong Kong, Singapore, Seoul, and Taipei, and employs over 1,500 staff.

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

BNY Brokerage Inc. is a member of NYSE/NASD/SIPC.

AIB/BNY was selected by the judges from a record number of entries for the part it has played in meeting its clients’ demands, and its leading role in consulting and partnering with the fund administration industry.

The award follows a particularly successful period for AIB/BNY, where it has been successful in winning a number of mandates. The joint venture has grown significantly over the last 10 years and AIB/BNY is now one of Ireland’s largest fund administrators, with $187 billion worth of funds under administration in Ireland as at January 31, 2006. Last year AIB/BNY announced plans to open a second office in Cork from April 2006 with the creation of an additional 200 new jobs by the end of 2008, in addition to its Dublin office which currently employs 500 people.

Lorna Sherlock, Managing Director at AIB/BNY Securities Services, comments, "This is a very prestigious award and reflects our excellent position and leadership in servicing the offshore fund administration market. We serve a wide range and size of customers and continue to build our product to meet their unique needs."

The judging panel was chaired by International Custody & Fund Administration editor Jason Conway Roberts and included industry experts such as Stefan Bichsel, president of the European Fund and Asset Management Association; Dr. Werner Frey, CEO of the European Securities Forum; Crispin Henderson, COO of Threadneedle Investments; John Li, chairman, KPMG Luxembourg; and Terry McCaughey, independent advisor for Terry McCaughey Associates.

The AIB/BNY joint venture was established in 1997 and has grown to be one of the largest employers in the International Financial Services Centre (IFSC) in Dublin with a total of 500 people employed today. It offers a full package of fund administration, fund accounting, shareholder, trustee and other services for Irish and non-Irish domiciled funds.

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

Through TreasuryAnalyst, corporate treasurers can reduce the time spent on data collection and consolidation and spend more time making value-added investment decisions. This unique service allows clients to monitor daily portfolio accounting, compliance, performance and risk, as well as automate certain accounting and compliance notification processes to make informed decisions on their investments. In addition, clients have online access to intuitive, easy-to-read reports of their investment portfolio detail and valuation. These reports meet the specific requirements of corporate treasury, accounting, tax and compliance departments.

Patrick E. Curtin, executive vice president of investor services at The Bank of New York, said, "With the investment holdings of U.S. corporations now totaling over $5 trillion, the custody and reporting requirements related to those assets have become increasingly specialized. TreasuryAnalyst spotlights our ability to develop innovative solutions that can greatly improve our clients’ efficiency and effectiveness. This unique capability underscores our commitment to expanding the range of corporate treasury services that we offer to our clients."

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

Mr. Azlan Zainol, chief executive of EPF, said that The Bank of New York’s global expertise and wide array of products and services would contribute to a productive business relationship.

Kenneth A. Lopian, executive vice president and Head of The Bank of New York’s Asia-Pacific Division, said, "For more than four decades, The Bank of New York has been serving clients in Malaysia and helping them reach their business objectives. Through our new office in Kuala Lumpur, our strong team of custody professionals will support EPF’s complex securities servicing needs and help them maximize performance and manage risk."

The EPF is Malaysia’s national savings scheme, providing basic financial security for retirement. Additional information is available at www.kwsp.gov.my.

The Bank of New York is a major servicing agent of master custody funds, currently servicing more than 1,600 pension funds with $1.4 trillion in assets. The Bank of New York is one of the world’s largest custodian banks with $10.3 trillion in global assets under custody.

The Bank of New York has been conducting business in the Asia-Pacific region for over 50 years. The Company has 17 offices in 12 countries in the region, including full-service branches in Shanghai, Tokyo, Hong Kong, Singapore, Seoul, and Taipei, and employs over 1,500 staff.

Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

Paul Riley, Head of Group Treasury, Leeds Building Society, said, "We appointed The Bank of New York as it demonstrated a clear understanding of the sector we operate in. The team showed total commitment to our current and future needs since we began talks and they stood head and shoulders above their competition in showing that they have the experience to meet the complex nature of our business."

Tim Keaney, Executive Vice President and Head of Europe, The Bank of New York, said, "Winning this significant piece of business underlines our capabilities and proven track record in the building societies sector. We are proud to be able to deliver global custody and treasury services to Leeds Building Society and look forward to working with them."

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

MOL Hungarian Oil and Gas Plc. is an integrated oil and gas group in Central and Eastern Europe. The core activities of MOL include: exploration and production of crude oil, natural gas and gas products; refining, transportation, storage and distribution of crude oil products in retail and wholesale markets; and importation, transmission, storage and wholesale trading of natural gas and other gas products.

Michel-Marc Delcommune, Group Chief Strategy Officer of MOL, said, "We are pleased that The Bank of New York is now overseeing our GDR program. We feel there is an opportunity for program growth and we are confident that The Bank of New York has the knowledge and resources necessary to help us achieve our goals."

Christopher Sturdy, managing director and head of The Bank of New York’s Depositary Receipt Division, said, "This appointment demonstrates MOL’s recognition and confidence in our market leadership and capabilities, which is especially rewarding coming from an experienced DR issuer. We look forward to helping MOL increase its visibility with investors."

The Bank of New York is depositary for more than 1,200 American and global depositary receipt programs, a 64% market share, acting in partnership with leading companies from 60 countries. With an unrivalled commitment to helping securities issuers succeed in the world’s rapidly evolving financial markets, the Bank delivers the industry’s most comprehensive suite of integrated depositary receipt, corporate trust and stock transfer services. Additional information is available at www.adrbny.com.

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company’s extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

The Bank of New York provides no advice nor recommendation or endorsement with respect to any company or security. Nothing herein shall be deemed to constitute an offer or solicitation of an offer to buy or sell securities.

The scope of the agreement involves approximately $21 billion of assets which represents about 85% of Capita Financial's current assets under administration. The Bank of New York will also provide technology and servicing infrastructure to enhance Capita Financial's position as the UK's ACD and UTM solutions provider of choice.

Keith Marsden, Chief Executive Officer of Capita Financial Group, said, "The Bank of New York consistently demonstrated that it understands the complexity of the servicing requirements of our clients and that the safety of our funds' assets is of paramount importance. By consolidating contracts with a reduced number of suppliers we have enhanced the value for money our funds receive from our trustee, depositary and custodial arrangements. With The Bank of New York, I believe we have identified a strategic partner who can support the growth of our business, allowing us to fully focus on core competencies including business-processing standardisation and any resulting cost efficiencies."

Tim Keaney, head of Europe at The Bank of New York, continued, "We are very pleased to have been awarded this mandate which underlines the quality of the service we have provided to Capita Financial in the past. This is a very important mandate for us as the Capita Group Plc is the UK's leading business process outsourcing company providing administration and customer services to a wide range of clients, including to a broad spectrum of fund managers, and we are looking forward to working with them as a partner to support their business."

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

Capita Financial Group, which includes Capita Financial Administrators Limited and Capita Financial Managers Limited, delivers cost effective, sophisticated and proven administration solutions for investment managers of collective investment schemes. Capita Financial Managers Limited also provides authorised corporate director (ACD) and Unit Trust manager services. Capita Financial Administrators Limited and Capita Financial Managers Limited currently work with over 100 clients, with approximately £15bn funds under administration. Capita Financial Administrators Limited and Capita Financial Managers Limited are authorised and regulated by the Financial Services Authority.

The Capita Group Plc is the UK's leading provider of integrated professional support service solutions. The Group's service capabilities encompass customer services, financial services, human resource services, software services, systems and strategic support and property services delivered to both public sector and private organisations. With over 23,000 employees at more than 230 offices across the UK and Ireland, Capita is quoted on the London Stock Exchange (CPI.L), and is a constituent of the FTSE100 with revenues for 2004 of £1,285 million. Capita has secured a number of awards including Best BPO Services Provider 2004. Further information on The Capita Group Plc can be found at www.capita.co.uk

The improvements are the result of in-depth analysis of client reporting preferences and reflect the Bank’s commitment to providing clients with unparalleled ease of use while allowing for fast and flexible access to INFORM’s diverse range of information solutions.

“INFORMCentral spotlights The Bank of New York’s goal to link the smart use of technology with client preferences to improve the efficiency and effectiveness of the organizations we serve,” said Patrick Curtin, executive vice president at The Bank of New York. “These enhancements underscore our commitment to delivering information for immediate, self-directed access by our clients, as well as to continuously enhancing the overall client experience with our organization.”

Clients can also access the Trust Universe Comparison Service (TUCS), the most widely accepted universe comparison in the United States for the performance of institutional assets, where they can create customized universes, detailed analysis and monitoring of their portfolios’ performance relative to other institutions.

INFORMCentral also offers a new view on class action services and applications, new file transfer capabilities that enable the importing of custom reports, and dynamic graphic enhancements to improve the overall user experience.

INFORMCentral adds to INFORM’s existing set of powerful utilities, which already allow clients to push customized reports to local printers or servers at any time of the day, in a variety of formats.

The Bank said INFORMCentral will initially be introduced to its pension clients followed by a systematic roll-out to its entire client base.

Accessed by more than 43,000 users representing 5,700 institutional and business clients, INFORM offers a diverse range of information solutions, including accounting, asset servicing, cash management, trade finance, collateral management, compliance monitoring, regulatory reporting, retirement services, risk/return analysis, and securities lending.

TUCS, which is a cooperative effort between Wilshire Associates and custodial organizations, is the most widely accepted universe comparison in the United States for the performance of institutional assets. Universe comparisons represent peer group analysis of a portfolio or a plan, which can be customized by size, style, plan type and other factors.

Through this enhancement, the bank’s clients will gain immediate online access to their investment data and the functionality to create customized universes, detailed analysis and monitoring of their portfolios’ performance relative to other institutions. In addition, the next phase of the initiative will include the development of international universes with an initial focus on the UK pension market and other proprietary universes.

This new capability represents the first in a series of product development priorities that will be introduced to clients as a result of the strategic alliance between the bank and Wilshire Associates. As part of the strategic alliance, the bank and Wilshire Analytics are integrating their comprehensive selection of risk services, including performance measurement, analytics, fixed income and equity attribution, universe comparisons, compliance, risk budgeting, and advanced risk measures.

“Through testing and research with clients, we know that online access to TUCS meets the growing need for immediate, self-directed access to this data and analysis,” said Debra A. Baker, Managing Director and head of Global Risk Services at The Bank of New York. “This represents a significant step forward and demonstrates how our alliance with Wilshire provides us with the ability to anticipate and meet the emerging risk management needs of institutional investors in a timely way.”

According to Baker, the bank tested the online TUCS service with ten clients during the past three months and expects to complete its roll out to all eligible clients by the end of the year. She added that as part of its continuing efforts to expand its risk services product set, the bank plans to introduce a new attribution analysis service by the end of the year.

Susan Bowers, Associate Director of Investments, Arkansas Public Employee Retirement System, and one of the Bank’s performance and analytics clients, said, “It is great to have all the analytical tools available to me through a single portal and it is very user friendly.”

Investment professionals using NetExchange Pro will now be able to access Morningstar's custom set of mutual fund analytical tools, including:

• Morningstar Fund Research, which provides instant access to comprehensive fund information; screening tools for the 16,500 mutual fund share classes in Morningstar's database, including underlying holdings data; fund analyst reports; and profile pages that are designed to be NASD-compliant for client use.
• Morningstar's popular fund commentaries, such as Fund Spy, Fund Times, Fund Analyst Update, Bond Squad, and Fund Analyst Picks, which provide updates on the latest developments in the changing mutual fund industry.
• Morningstar Fund Hypotheticals, which enable investment professionals to illustrate investment scenarios, such as initial and systematic investments/withdrawals, custom fees, and rebalancing, for their clients.

John Colao, managing director at Pershing, said, “Morningstar's sophisticated tools will allow the more than 70,000 investment professionals who use NetExchange Pro to help their clients make informed mutual fund investment decisions. We will continue to expand our online platform to deliver industry-leading solutions that enable our customers to help their clients meet their investment goals and objectives.”

Morningstar, Inc. provides independent investment research in the United States and in major international markets. The company offers an extensive line of Internet, software, and print-based products and services for individuals, financial advisors, and institutional clients. Morningstar tracks more than 100,000 investment offerings, including 7,000 stocks, 16,500 mutual fund share classes, and similar vehicles. The company has operations in 16 countries. Morningstar Fund Analytics’ advisory tools are provided by Morningstar Associates LLC, a registered investment advisor and wholly owned subsidiary of Morningstar, Inc.

Pershing is a leading global provider of clearing and financial services outsourcing solutions to nearly 1,100 institutional and retail financial organizations and independent investment advisors who collectively represent more than 5 million individual investors. Located in 23 offices worldwide, Pershing provides customers with innovative technology solutions and a wide range of value-added products and services, including asset-gathering products and managed account services, extensive trading and financing capabilities, and website development. Pershing LLC (member NYSE/NASD/SIPC) is a member of every major U.S. securities exchange and its international affiliates are members of the Frankfurt, Irish, and London Stock Exchanges. Pershing LLC is a member of BNY Securities Group and a subsidiary of The Bank of New York. BNY Securities Group is the global agency brokerage, clearing and financial services outsourcing sector of The Bank of New York.

Upon completion of the conversion, senior RCM operations managers and staff will join The Bank of New York in its San Francisco operations. As of December 31, 2003, RCM had approximately $32 billion in assets under management and advice in its San Francisco office.

Bob Goldstein, chief operating officer of RCM, said, "After a thorough review of outsourcing alternatives, we selected The Bank of New York because they offered us a flexible solution that not only met our objectives, but also provided us with an operating platform that will meet the demands of our growing business. The Bank’s outsourcing solutions further enable us to focus on our core business while bringing expenses more in line with revenues. The Bank’s model is highly scaleable, and we are confident that we will continue to provide our clients with an exceptional service level."

Thomas J. Perna, senior executive vice president at The Bank of New York, said, "We are very pleased that RCM has chosen The Bank of New York as its outsourcing partner. The trend toward outsourcing among global investors continues to accelerate, and this appointment further validates our business model. In addition, we see this as a symbiotic relationship in which we’ll both benefit. RCM will benefit from our high quality service and faster speed to market for new products. Our global outsourcing business will be strengthened by our West Coast investment operation and the highly qualified RCM operations professionals who will join our firm."

RCM is part of the Allianz Dresdner Asset Management Group, a member of the Allianz group of companies with investment management, client servicing and operations functions in San Francisco, London, Hong Kong, and other world financial centers. RCM has approximately $48 billion in worldwide assets under management and advice. This included, as of December 31, 2003, the assets under management and advice in San Francisco and approximately $16 billion under management and advice by affiliates in London, Hong Kong and San Diego, CA.

The Bank of New York provides outsourcing solutions through BNY SmartSourceSM, working in a consultative capacity to help investment managers evaluate their outsourcing options, maximize efficiency and mitigate risk whether they manage assets on behalf of institutions, private clients, managed accounts or fund vehicles.  As an extension of an investor’s front office, BNY SmartSourceSM provides the operational processes, industry expertise and scalable technology necessary to support global investment decisions. The BNY SmartSourceSM team is staffed in the U.S. and Europe with 550 highly experienced professionals. Additional information on BNY SmartSourceSM is available at www.bnysmartsource.com.

Walter Stampor, executive director of the City of Detroit Policemen and Firemen Retirement System, said, "The Bank’s Internet based information delivery platform, INFORM, will be able to meet our complex custody and securities lending requirements, and we look forward to working with the Bank’s well regarded team of dedicated public fund specialists."

T. Andrew Smith, senior vice president at The Bank of New York, said, "This appointment underscores our commitment to servicing public fund plans. We provide responsive service and flexible reporting options to our public fund clients, and the City of Detroit Policemen and Firemen Retirement System will benefit from our complete suite of integrated investor service products."

The Bank of New York’s dedicated Plan Sponsor Services Division provides plan sponsors integrated solutions that add value to their investment process. The Bank’s services include currency overlay, investment and cash management, investment risk management, performance measurement analytics, master trust, custody, retirement plan services, securities lending, and trade execution services.

Thomas Friery, Sacramento City Treasurer, said, "After a comprehensive review of our needs, it was clear that BNY Western Trust continues to offer the customized services and information delivery systems we need to achieve our revenue projections. We look forward to continuing our long-standing and satisfactory relationship with the Bank."

Keith N. Kuhn, Head of BNY Western Trust Company, said, "We have a strong track record of delivering high quality service to the City of Sacramento, and our advanced technology platform enables us to provide the customized services the City requires. In addition, the City will continue to benefit from our securities lending expertise as we build on this mutually beneficial relationship."

BNY Western Trust Company is a premier provider of institutional investor services to public funds in the western United States, counting among its clients many of the largest cities and counties in California. It will continue to service the City of Sacramento from its San Francisco office.

The Client Reporting Portal is built on a secure, easy-to-use Internet platform. Through one centralized location, clients receive access to their BNY Brokerage account information, including commission statements and trading activity. In addition to the efficiencies of on-line account access and enhanced workflow, the portal offers support for client compliance efforts through its historical archive and its central source of important commission data.

The portal is supported by a committed team of client service managers and will provide access to additional services offered by BNY Brokerage, including account snapshots, a bill processing workflow module for tracking invoices and a centralized database of independent research and third-party service providers.

Carey S. Pack, president of BNY Brokerage, said, "We continue to respond to and anticipate institutional investors’ needs for comprehensive commission management solutions. As the premier agency broker, BNY Brokerage offers clients the tools they need to be successful for trading, including electronic, program and direct access capabilities, as well as managing commissions for soft dollar and commission recapture programs. We will continue to enhance our capabilities and invest in technology to support our clients’ diverse strategic objectives."

BNY Securities Group is the global agency brokerage, clearing and financial services outsourcing sector of The Bank of New York Company, Inc. It provides "The Power of Choice" through a broadly diversified suite of services to institutions, broker-dealers and corporations. BNY Securities Group offers innovative solutions in trade execution, commission management, independent research, securities clearing and financial services outsourcing. With offices in the U.S, Europe, Asia, and Australia, BNY Securities Group is the largest provider of commission management services, has 26 New York Stock Exchange seats, and offers global execution and clearing services in over 80 markets. BNY Securities Group is an organization consisting of several broker-dealers and other companies. BNY Brokerage Inc. is a member of NYSE/NASD/SIPC. Additional information on BNY Brokerage is available at http://www.bnybrokerage.com/.

In recognizing The Bank of New York, Global Finance noted the following, "Known as a versatile player able to handle all the banking needs of the modern multinational, The Bank of New York has long been one of the world’s top custodial banks... Analysts agree the Bank’s strengths remain its use of innovative technology and its wide variety of custodial and other services."

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The Bank of New York will assume responsibility for operational functions, including trade support, data management, portfolio accounting, reconciliation and performance measurement. In addition, the Bank will render end-client statements and deliver a variety of portfolio information to AXA IM via a customized Internet toolset. The infrastructure facilitates full straight-through processing from instruction capture to portfolio accounting and reporting.

Robert A. Kyprianou, director of AXA Investment Managers, said, "We selected The Bank of New York as our outsourcing partner because they were very responsive and offered us a creative solution to meet our growing business needs. We feel that The Bank of New York is able to provide the high quality operational platform necessary to support our new U.S. investment-grade investment management business. With this arrangement, we are able to focus on investment decisions, confident that the Bank will manage our infrastructure needs on an ongoing basis."

Andrew J. Bell, senior vice president and head of BNY SmartSource^SM, the Bank’s outsourcing business for global investors, said, "Momentum continues to build in the investment operations outsourcing arena. Whether an investment manager is long established or requires support for a newly established product line, The Bank of New York can provide the operations and technology necessary to support the investment decision. AXA IM is a well-respected global investment manager, and we are pleased to be able to rapidly deploy a comprehensive solution that meets their needs."

AXA IM is a multi-specialist asset management company within the AXA Group, a world leader in financial protection and wealth management. As stated by the company as of August 31, 2003, AXA IM is one of the largest European-based asset managers with approximately $323 billion under management and over 2,100 people serving clients from eleven countries. AXA IM Inc. operates in the U.S. with specialist teams in U.S. Investment Grade and High Yield Fixed Income.

The Bank of New York provides outsourcing solutions through BNY SmartSourceSM, working in a consultative capacity to help investment managers evaluate their outsourcing options, maximize efficiency and mitigate risk whether they manage assets on behalf of institutions, private clients, managed accounts or collective investment vehicles. As an extension of an investor’s front office, BNY SmartSourceSM also provides the operational processes, industry expertise and scalable technology necessary to support global investment decisions. The BNY SmartSourceSM team is staffed in the U.S. and Europe with 500 highly experienced professionals. Additional information on BNY SmartSourceSM is available at www.bnysmartsource.com.