The SPDR S&P VRDO Municipal Bond ETF is designed to provide investors with access to municipal variable rate demand obligations (VRDOs), an asset class offering attractive yields and stable income that is exempt from federal taxes and often state and local income taxes as well. Specifically, it seeks to track the price and yield performance of the S&P National AMT-Free Municipal VRDO Index. As of September 21, 2009, the index, which includes VRDOs issued by U.S. states, local governments, or agencies, provides exposure to more than 377 issues.

VRDOs, which are often issued with maturities of up to 30 or 40 years, are considered short-term instruments because they have a 1-day or 7-day put feature that coincides with the timing of the daily or weekly yield reset.

"Developed in response to increasing demand for VRDOs, the SPDR S&P VRDO Municipal Bond ETF provides investors with access to a hard to reach corner of the municipal bond market where the required minimum denomination for issue purchase is $100,000," said James Ross, senior managing director at State Street Global Advisors. "In offering precise, cost efficient exposure to VRDOs, the SPDR S&P VRDO Municipal Bond ETF provides a wide range of investors with an opportunity to enhance the diversification and tax efficiency of their portfolios."

According to Standard & Poor's research, the number of VRDO issues brought to market increased 32 percent in 2008.

The SPDR S&P VRDO Municipal Bond ETF complements State Street's growing family of municipal bond SPDRs. As of August 31, 2009, the firm managed $1.4B in municipal bond ETF assets in the following funds:

SPDR Barclays Capital Municipal Bond ETF (TFI);

SPDR Barclays Capital Short Term Municipal Bond ETF (SHM);

SPDR Barclays Capital California Municipal Bond ETF (CXA); and

SPDR Barclays Capital New York Municipal Bond ETF (INY).

State Street Global Advisors is one of the largest ETF providers in the United States and globally. U.S. assets under management for SPDR ETFs totaled more than $160 billion as of August 31, 2009.

About State Street Global Advisors

State Street Global Advisors, the investment management arm of State Street Corporation (NYSE: STT), delivers investment strategies and integrated solutions to clients worldwide across every asset class, investment approach and style.