The Energy Select Sector SPDR Fund Announces Its Intention to Particip

    Business Editors

    BOSTON--(BUSINESS WIRE)--May 10, 2005--The Energy Select Sector SDPR(R) Fund (AMEX:XLE) (the "Fund"), a series of The Select Sector SPDR(R) Trust, announced today that the Fund intends to fully participate in a tender offer proposed by the Kerr McGee Corporation ("Kerr-McGee") (NYSE:KMG) on or before the expiration of the tender offer on May 18, 2005. Kerr McGee is a constituent holding in the Energy Select Sector SDPR Index and thus is a holding in the Energy Select Sector SPDR Fund. SSgA Funds Management, Inc. ("SSgA FM"), the investment advisor of the Fund, believes that participating in the tender offer is in the best interests of the Fund and is consistent with the Fund's investment objective.

    SSgA Funds Management, Inc.

    SSgA Funds Management, Inc. is the investment advisor of the Energy Select Sector SPDR Fund and a wholly owned subsidiary of State Street Corporation. SSgA Funds Management, Inc. and other advisory affiliates of State Street Corporation comprise State Street Global Advisors ("SSgA").

    State Street Global Advisors

    State Street Global Advisors, the investment management group of State Street Corporation, delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With $1.4 trillion in investment programs and portfolios as of March 31, 2005, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo, and Zurich, and offices in 28 cities worldwide. For more information visit State Street Global Advisors at www.ssga.com.
    Select Sector SPDR is a trademark of the McGraw-Hill Companies, Inc. and has been licensed for use. The stocks included in each Select Sector SPDR Index were selected by the compilation agent. The composition and weighting of each Index can be expected to differ to that of any similar index that is published by Standard & Poor's. Select Sector SPDRs bear a higher level of risk than more broadly diversified funds.
    Ordinary brokerage commissions apply when buying or selling Select Sector SPDR shares.
    An investor should consider investment objectives, risks, charges, and expenses carefully before investing. To obtain a prospectus, which contains this and other information, visit www.sectorspdrs.com. Please read the prospectus carefully before investing.
    ALPS Distributors, Inc., a registered broker-dealer, is the distributor for the Select Sector SPDR Trust.

--30--KK/ny*

CONTACT: Towers Group Select Scott Sunshine/Andrew Schiff, 212-354-5020 scottsunshine@towerspr.com andrewschiff@towerspr.com or Sector SPDR Trust Dan Dolan, 516-992-3465 dan.dolan@spdrindex.com

KEYWORD: MASSACHUSETTS NEW YORK INDUSTRY KEYWORD: BANKING ENERGY MARKETING AGREEMENTS SOURCE: The Energy Select Sector SDPR Fund

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