LONDON PENSIONS FUND AUTHORITY AWARDS

Newton Investment Management Limited, the UK asset management subsidiary of Mellon Financial Corporation, has been awarded a £330m global equity mandate for the London Pensions Fund Authority.

Newton has been managing global equity mandates for over 25 years. Its institutional global equity composite that is most applicable to the London Pensions Fund Authority mandate, has outperformed the benchmark in all 29 rolling three-year periods since inception*. The mandate will be managed by members of the global team at Newton.

Commenting on the win, Helena Morrissey, Chief Executive Officer of Newton, said: "We are pleased to open 2006 with the award of such a significant mandate. It reflects Newton's continued strong performance in all markets and robust team-based investment process driven by global research. We are delighted to work with the London Pensions Fund Authority on their new structure and look forward to seeing our relationship develop further."

The Board of the £3bn London Pensions Fund Authority (LPFA) announced the completion of its comprehensive review of investment strategy in December of 2005. The new strategy, which came into effect on 1 January 2006, marks a shift away from the traditional bond/equity structure, to one that is more closely related to liabilities and cash flow requirements. It will take a more aggressive approach to seeking returns, while managing risk through diversification and the introduction of a currency overlay. The Authority has introduced new mandates for global equities, for absolute return targets, and for cash flow matching bonds. In combination, these will deliver both the necessary short-term cash flows and long-term stability.