Letter from the Sponsor

State Street is honoured to be the principal sponsor of the 2001 State Street Caledonian Challenge, a long walk for a long-term investment in a better future. This marks the second year that State Street has put its best foot forward to support this 24-hour fundraising walk, in which over 300 four-person teams traverse a 54-mile trail through Scotland's highlands to benefit local Scottish charities. This year's event is expected to raise over 1 million for the Scottish Community Foundation, an organisation which provides financial support to local charities across Scotland.

State Street believes that good business relationships naturally foster goodwill and active care in the host communities. By sponsoring the 2001 State Street Caledonian Challenge, State Street extends that community service philosophy to those who can use it the most in Scotland.

Among the beneficiaries of the funds raised in last year's Challenge were the Northfield Academy, a school in the economically challenged community of Aberdeen, and the Glasgow Project, a development and advocacy group that supports new initiatives to address issues of debt, fines and financial issues experienced by homeless people in Glasgow. This year, at least 20% of the funds have been targeted to assist those areas of Scotland most affected by the recent Foot and Mouth outbreak.

State Street believes that philanthropic efforts such as these are a natural extension of our business relationships in all the communities that we serve, as well as in the world at large. Our Global Philanthropy Programme supports a wide range of community-based service organizations that make a difference in people's lives through education and job skills training, health and human needs programmes, youth programmes, affordable housing and neighborhood revitilisation. Over the past 23 years State Street has made nearly 3800 grants totaling US$55.6 million. State Street is particularly supportive of programmes such as the Scottish Community Foundation, which strengthen self-sufficiency as well as deliver vital services.

We are pleased that you and your organization are joining us this year in support of this worthy cause. On behalf of everyone at State Street, let me thank you for accepting the "Challenge."