XLB Materials Select Sector

The Materials Select Sector SPDR� Fund (the �Fund�) (AMEX:XLB - News), a series of The Select Sector SPDR� Trust, announced today that the Fund intends to fully participate in the offer of exchange between Weyerhaeuser Company (�Weyerhaeuser�) (NYSE: WY - News) and Domtar Inc. (�Domtar�) (NYSE: DTC - News) on or before the expiration of the offer on March 2, 2007. After the close of the transaction, Weyerhaeuser will own approximately 55% of the new company, which will be named Domtar. Weyerhaeuser is a constituent holding in the Materials Select Sector SPDR Index representing 4.72% of the Index as of Friday, February 23, 2007 and thus is a holding in the Materials Select Sector SPDR Fund. SSgA Funds Management, Inc., the investment advisor of the Fund, believes that participating in the offer of exchange 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 Materials 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 arm of State Street Corporation, delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style. With US$1.7 trillion in assets under management as of December 31, 2006, State Street Global Advisors has investment centers in Boston, Hong Kong, London, Milan, Montreal, Munich, Paris, Singapore, Sydney, Tokyo and Zurich, and offices in 25 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.