Hedge fund AUA surges 94% in 2007

NEW YORK, April 1, 2008 — The Bank of New York Mellon (NYSE: BK), a leader in hedge fund administration announced that its Alternative Investment Services (AIS) business has topped $200 billion in assets under administration, reflecting rapid global growth in the firm's servicing of funds of hedge funds and multi-strategy hedge funds.

In the last five years, The Bank of New York Mellon has grown hedge fund assets under administration from $30 billion to $200 billion and last year posted a 94% increase in assets under administration. The company also has experienced significant growth in average fund size and the number of fund structures serviced as part of its strategy in building long-term relationships with leading industry firms.

"A milestone like this signals the confidence clients have in our ability to support their complex needs across the full spectrum of hedge fund services," said Brian Ruane, executive vice president of The Bank of New York Mellon. "We've posted consistently strong organic growth in our hedge fund administration business by customizing our core operational and technology expertise."

"We estimate more than half of all money flowing into hedge funds through 2010 will come from institutional investors, at which point global institutional assets in hedge funds will exceed $1 trillion. Retirement plans will account for about two-thirds of these asset flows," Ruane added. "As the trend continues, hedge fund managers will need to be able to provide 'institutional quality' services supported by an independent, third-party provider. The Bank of New York Mellon offers the stability and custom reporting these clients demand."

The Bank of New York Mellon is a leading hedge fund administrator with an extensive global presence, including locations in Bermuda, Cayman Islands, Hong Kong, Ireland, Luxembourg, Singapore and the United Kingdom, as well as US offices in California, Florida, Massachusetts, New Jersey, New York and Pennsylvania. In addition to hedge fund administration the company offers a wide range of accounting, cash management, collateral management, custody, asset management and wealth management services to the hedge fund industry.

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 $23 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.