Typical Plan Continues to Be Better Funded than at Beginning of Year

PITTSBURGH, November 5, 2007 — Asset values at typical U.S. defined benefit plans kept pace with rising liabilities in October, according to BNY Mellon Asset Management, which tracks the health of the pension plans through its BNY Mellon Pension Liability Indexes.

Driven by rising equity markets in the U.S. and around the world, the assets of a moderate risk pension portfolio increased 1.7 percent in October, matching a similar increase in liabilities. Peter Austin, executive director of BNY Mellon Pension Services, attributed the gain in liabilities to a nine-basis-point decline in long-maturity Treasury bond yields. Lower interest rates increase liabilities and the value of bonds.

"The capital markets shrugged off $94 oil, focusing instead on the second Fed easing in as many months," he said. "The U.S. stock market has vaulted to a double-digit gain for the year, and foreign markets have done even better with the help of a falling dollar."

For the year to date, the typical U.S. plan has improved its status by 4.7 percent, with moderate risk assets up 9.1 percent and moderate risk liabilities higher by 4.4 percent.

BNY Mellon Asset Management is a leading global provider of investment management products and services that offers a broad range of equity, fixed- income, hedge and liquidity management products through individual asset management companies and multiple distribution channels.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 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 management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $20 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $11 trillion in outstanding debt. Additional information is available at bnymellon.com.