Steve Lackey – IR Bob Kelly – CEO Bruce Van Saun – CFO Brian Rogan – CEO The Bank of New York Mellon Issuer and Treasury Services Ron O’Hanley – President, CEO BNY Mellon Asset Management Gerald Hassell – President Rich Brueckner – CEO Pershing Todd Gibbons – Chief Risk Officer Jim Palermo – Co-Chief Executive Officer BNY Mellon Asset Servicing

Mike Mayo – Deutsche Bank Ken Usdin – Bank of America Securities Brian Bedell – Merrill Lynch Tom McCrohan – Janney Montgomery Scott Gerard Cassidy – RBC Capital Markets

Good morning ladies and gentlemen and welcome to the first quarter 2008 earnings conference call hosted by The Bank of New York Mellon Corporation. (Operator instructions). I will now turn the call over to Mr. Steve Lackey, Mr. Lackey you may begin.

Thank you Melissa and good morning everyone. Thanks for joining us to review the first quarter financial results for The Bank of New York Mellon Corporation. Before we begin let me remind you that our remarks may include statement about future expectations, plans and prospects which are forward looking statements. The actual results may differ materially from those indicated or implied by the forward looking statements as a result of various important factors including those identified in our 2007 10K and other documents filed with the SEC that are available on our website bnymellon.com. Forward looking statements in this call speak only as of today, April 17, 2008. We will not update forward looking statements to reflect facts, assumptions, circumstances or events which have changed after they were made. This morning’s press release focuses on the results of The Bank of New York Mellon. We also have a supplemental document, the quarterly earnings summary available on our home page which provides a five quarter pro forma combined view of the total company in our six business sectors. Unless otherwise noted, all comparisons to the prior year results reflect this pro forma combined view. This morning’s call will include prepared comments from Bob Kelly, Chief Executive Officer and Bruce Van Saun, Chief Financial Officer. In addition there are several members of our Executive Management team to address your questions about the performance of our businesses during the quarter. Now like to turn the call over to Bob Kelly. Bob.

Thanks Steve and good morning everyone and thank you very much for joining us this morning. Clearly we’re in a pretty challenging economy right now and most of the financial markets are in distress and given that backdrop our businesses are performing well in a tough environment. Year over year we generated revenue growth of 14%, 750 basis points of operating leverage and another quarter of double digit earnings growth. We continue to meet our commitments we have made to our clients, shareholders and 40,000 employees. When you think about EPS, excluding our merger and integration charges, EPS was $0.72, an increase of 16% year over year. And excluding the impact of merger and integration charges as well as intangible amortization which is a non-cash expense of course, EPS was $0.78, an increase of 20% over the first quarter of 2007. These results also include the impact of approximately $0.04 of net charges detailed in our earnings release. Our securities services business led the way with continued extraordinarily strong performance. Fee revenue benefited from significant growth in asset servicing, foreign exchange and clearing services. We enjoyed single digit growth in corporate trust fees despite a tough fixed income environment due to our diversification of our global franchise. In wealth management fees were up 9% with good new business volumes and organic growth. Treasury service fee revenue increased 10% on a higher global payment and cash management volumes. In asset management we continued to grow money market funds with net flows of $23 billion during the quarter. Weak equity market conditions impacted our performance fees which were down sequentially and year over year as well as returns on seed capital investments. We continue to grow rapidly outside the US, now one-third of our revenue is international compared to 28% this time…

Thanks Bob. I will walk you through the highlights of the quarter, update you on our merger integration milestones and offer a few thoughts about our outlook for the second quarter. As our earnings show, our business model continues to deliver excellent results through a challenging environment. Strength in our volume and volatility sensitive businesses such as asset servicing and clearing more than offset below trend performance in our asset management business, again demonstrating the diversification and the balance of our business model. We also did an effective job in containing expense growth, resulting in significant positive operating leverage year over year and sequentially. Consequently our pretax margins versus a year ago improved from 33% to 36%. Our capital ratios came in lower than expected as a result of spread widening in our securities portfolio as well as the size of our balance sheet. And our credit quality overall remains solid. In short, a good start to the year. So let’s get into the numbers. We reported a $0.72 EPS from continuing operations. Included in this result were several balance sheet items that had a negative impact of $0.04 per share. More on that later. Excluding these items, our EPS result was $0.76. Our strong performance was led by continued good top line growth as operating revenues were up 14% year over year. Fees were up 9% and net interest revenue was up 39%. We demonstrated disciplined expense management as expenses were up only 6.5% year over year, resulting in excellent operating leverage of approximately 750 basis points. Revenues generated outside the US now comprise a full third of our total revenues. That’s up from 28% in the first quarter of 2007. Turning to page 5 of the earnings summary which details fee growth, securities servicing fees were up 20%…

Thanks very much Bruce, I appreciate it and you know I think we’ve given you a pretty good overview of the quarter and why don’t we open it up for questions at this point.

(Operator instructions). Our first question comes from Mike Mayo with Deutsche Bank, please go ahead. Mike Mayo – Deutsche Bank: Good morning. Just in terms of the DR business, it seemed like a little bit more of a decline than at least we were expecting. You know did you see any extra decline there and do you think it’ll bounce back all the way in the second quarter?

Yeah we’re going to, Brian can answer that.

It was actually slightly up from the first quarter of 07 so it’s exactly what we expected.

And it is more seasonal isn’t it, first quarter tends to be pretty weak.

Totally. But the last three years it’s almost been a 2% variance as [beck] the quarters so we do expect that as Bruce mentioned the banks to come back in the second quarter.

Yeah and we feel pretty good about that business, it should have another good year Mike. Mike Mayo – Deutsche Bank: Okay and then the asset management business, I mean that’s simply a function of the market, anything else going on there, ins and outs? Ron O’Hanley: Mike, this is Ron O’Hanley, the most of it far and away is the market. We saw very strong flows in short duration money markets as you’d expect, continued strong growth outside the US. Offsetting that are some long term fund outflows in the US mutual fund market and then we’re kind of suffering the full year impact if you will, the annualized impact of the team that we lost last year at the Boston Company. Although the new asset loss there has actually stabilized and the performance there is actually quite strong, so we expect that to stabilize but you’re getting the full year impact of that. Those would be the major ins and outs right there. Mike Mayo – Deutsche Bank: And as it relates, Bruce, the margin, you expect that to come in some, so is this the end of the benefit of the Fed easing?

Yeah I think when you get to the low rate levels that we have now, you start to get some compression on your interest bearing deposits. So I think you know the benefit has largely worked its way through. Having said that we’ve typically tried to be relatively neutral positioned and we may come in a bit but not overly dramatic. Mike Mayo – Deutsche Bank: And then lastly, in the merger savings are ahead, why not increase the overall target?

We’ve said that we’ll post you on that at the investor day, so we want to keep some good stuff for then Mike. Mike Mayo – Deutsche Bank: Okay, thank you.

Thank you our next question comes from Ken Usdin with Bank of America Securities, please go ahead. Ken Usdin – Bank of America Securities: Thanks, good morning. Two questions for you, one, you’ve mentioned again the diversification of the business model. Talking to a lot of positives, a lot of negatives and I know obviously the business will continue to grow on a year over year basis but I’m just, I wanted to understand how the positives and negatives balance out here as far as a go forward perspective. Meaning, are we back to an environment where you kind of just hope to keep the growth flat from here or ex expense synergies which we know help going forward, how do you just look at the balance of just core business growth in this environment?

Well you know what I say Ken is it’s interesting to note how the security servicing business is different than the asset management business in that they’re not totally correlated which we actually find useful. We continue to grow quickly around the world, this is a long term cycle that we are seeing here and it’s not part of the economic cycle, it’s a secular trend we’re seeing. You know our business model is that we should continue to pick up business in Europe and Asia as we continue to expand. And in fact, we announced last week, you know we are growing so quickly in Asia that until last week we did not have a Asia Pacific division and we’ve had so much growth there we’ve decided that we’ve got to invest a little bit more over there to have more coordinated approach toward Asia. We have just announced one of our most senior executives is going over to Hong Kong and we’re going to create a new head office for the Asia region there. So we are building for the long term. There’s no question that some of our businesses are you know under a bit of stress at this point, not surprising given this environment but we continue to see pretty good revenue growth and I would hope that we would, you’ll see that in coming quarters as well. Bruce, anything you’d add to that?

I think Bob, you know Ken don’t lose sight of the fact that if you say there’s some things on both sides of the ledger for the quarter, we still had 16% EPS growth and on a cash basis it was 20% year over year, so I think notwithstanding the environment, we’re still performing quite well. Ken Usdin – Bank of America Securities: Yeah and I’m not taking that away from a year over year I’m talking about prospectively off of the base that you’ve set now to grow from. You know if everything offsets each other you know some good some bad then the business could just kind run in place on a core basis.

It’s a scenario, Ken but it’s not what we’re expecting when we sit around the table and talk about various scenarios about how the rest of this year will play out. Ken Usdin – Bank of America Securities: Okay, that’s helpful. The second question was just on revenue synergies, any update on how those are coming in with regards to the deal?

Ken this is Gerald Hassell, the revenue synergies are tracking well against that $250-$400 million level that we described to you last year. We’ll give you a further update at the investor day conference but we feel very positive about those revenue synergies and think we’ll achieve them. Ken Usdin – Bank of America Securities: Well and just can you give us anecdotes of are there tangible revenue synergies in this quarter?

They’re very similar to the ones we’ve seen in the past and that is greater use and greater trading capabilities in our sec lending and foreign exchange areas. Money market flows out of areas like Pershing and our corporate trust areas into Dreyfus, cross selling of asset management into our asset servicing clients. Those are the three main areas that continue to perform quite well.

And we’ll give specific examples at investor day Ken. Ken Usdin – Bank of America Securities: Okay, thanks very much.

And Ken I would say we’re running a little ahead of where we were hoping for, certainly by June of last year, so we’ve been pleased with where we are. Ken Usdin – Bank of America Securities: Okay, thanks Bob.

Thank you our next question comes from Brian Bedell with Merrill Lynch, please go ahead. Brian Bedell – Merrill Lynch: Good morning folks. Hey where we were just on the merger, just one more question, are you finding more merger synergies than when you got more detailed on the $250-$400 plan, so in addition to that, are you discovering more opportunity throughout the organization?

I think we’re, we had it scoped out very well and we had a very detailed plan and so we’ve executed along that plan. You do find a few forks in the road and a few opportunities and where we see that we’re executing on that. Brian Bedell – Merrill Lynch: Okay, great and then on the clearing business, you know I guess you’re winning business from potentially the Bear Stearns book, how should we, how significant should we be thinking about that in future quarters? You know how long does it take to come into the revenue stream and is it a very large improvement in the revenue stream?

Rich, you want to take that?

Sure, I’ll come on, this is Rich Brueckner, we’ve doubled the pipeline as Bob mentioned earlier, so that’s I think significant. We have probably another double that’s not signed and we probably won’t get all of that and it’ll take about six to nine months to convert most of that and that’s the normal conversion period. Although I must say we’ve accelerated the pace of that in the beginning, we converted a couple of accounts already. Brian Bedell – Merrill Lynch: Okay, great and then if you could just talk about the SIV exposure, I know that in the 10K you said it was down in the money market funds I think to $1.7 billion, if you could give us an update on that and when you expect that to roll off. And I think you also said $8.9 billion in the securities lending collateral pools, do you have an idea of when that might run down and of course you know how comfortable you feel about the SIVs that are still in the money products.

Sure Brian, this is Todd Gibbons. The SIV exposure continues to pay down pretty rapidly as expected. I think most of the exposure, the significant majority of the exposure is to names that have bank sponsors and they’ve indicated support. In the securities funds it’s now down to about 7.3 from that $8.9 billion that you talked about. And the non-bank maturities are paying off, they’re very short in nature and they’re paying down quickly. Brian Bedell – Merrill Lynch: Okay, the $1.7 billion is in the money funds is that still at $1.7 or is that down?

That’s down somewhat too. Brian Bedell – Merrill Lynch: Okay and is there, I know you said July August was the timeframe when you thought the SIVs in the money market funds would probably be pretty close to zero, is there a timeframe on the sec lending pool that you could give us on that as well?

Well as I say, most of that is now bank sponsored, so it is coming off over the course of the next year but it’s really like having an exposure to a bank at this point. Brian Bedell – Merrill Lynch: Okay, great, thanks very much.

Thank you our next question comes from Tom McCrohan with Janney Montgomery Scott, please go ahead. Tom McCrohan – Janney Montgomery Scott: Hi everyone, another question on growth similar to Ken’s question, I know this quarter you had 9% pro forma growth in fee income year over year and do you have any visibility on the kind of fee revenue growth you believe you can generate this year in the context of you know flat equity market, possible reversion to trend with you know ancillary fee income categories like sec lending and foreign exchange, I think that’d be really helpful as these are unusual times and unusual results, it’s kind of hard to get a base line of what organic growth could be this year in that context.

Yeah I think Tom given the uncertainty out there, that’s a little hard one to call. You know what I think we’re trying to describe the framework is that you know asset servicing has really been off the charts and the comps will get tougher for asset servicing as we go through the year. But asset management because of the weak equity markets and the impact on performance fees and seed is quite a bit below the trend and so how that plays out and the timing of how that plays out will have a lot to do on that ultimate fee growth number. But I would say that you know on the things that we can control in terms of providing excellent client service, the business pipelines and bringing in that new business, we feel really good about how we’re positioned for the rest of the year. Tom McCrohan – Janney Montgomery Scott: Okay, thanks Bruce and a follow up on the government treasury clearance area, you guys are one of only two banks that provide clearance of government treasury securities, I was just wondering if you could elaborate on how the current market environment was possibly impacting that part of the business and if the recent Fed actions like that new primary dealer credit facility, if those types of actions are a net positive or a net negative for that business.

Tom, it’s Gerald, you know as you know we’re one of the two main clearers with the Fed, all the new Fed actions that have been put in place, they’re using our pipes to implement those actions. So we’re seeing some activity as a result of that. You know and our global collateral management, what we call collateral management capabilities, we’re still seeing growth in the tri-party repo market because that’s the safe haven for dealer to finance their inventories and for investors to feel comfortable. So we’re still seeing good growth and good activity out of our broker dealer services area. Tom McCrohan – Janney Montgomery Scott: Thanks Gerald and those fees are in asset servicing, correct?

Yes. Tom McCrohan – Janney Montgomery Scott: Great and one last question for you all, you know one of the merger milestones targeted to be completed this quarter I guess was a complete review of all the business segments at the combined bank, I was just wondering if you could give us any type of preview on the outcome of all those reviews. That’s all I had, thanks.

You know I think the list of things that Bob talked about in his remarks is an indication that this process is underway and we’re acting on some of these things, so we’ve sold the First Business Bank in California, we completed the sale on ConvergEx, so there are activities around the periphery that we’re currently dealing with and so I think when we get to investor day, we’ll give a good view as to how we look at the businesses and what their full potential is and how we view those in terms of the total franchise. Bob.

Yeah, we’ll give you a real good sense as to how we, where we want to invest, why we want to invest and what are the criteria we look at in terms of everything from revenue growth to globalization to expense and revenue synergies, capital usage, you know we’re in interesting times and we have businesses that don’t fit our model and we’ve been dealing with them and we will continue to. At the same token, we’re going to redeploy some capital into those businesses where we very clearly have long term competitive advantages and therefore superior shareholder returns. So we’ll keep working on it and even though the environment is tough, we can get interesting things done at the margin. Tom McCrohan – Janney Montgomery Scott: Great, thanks for taking the questions.

Thank you our next question comes from Gerard Cassidy with RBC Capital Markets, please go ahead. Gerard Cassidy – RBC Capital Markets: Good morning Bob. On the incentive comp for the asset management business, was the decline mostly due to the market conditions or did you see some of the decline because of people that left Boston Company last year?

Gerard, the decline, it’s formulaic. We pay incentives either, most of our incentives are paid as a percentage of pretax. There’s also some incentives paid as a percentage of performance fees and since both declined you saw a formulaic decline there. Gerard Cassidy – RBC Capital Markets: Thank you. And Bob you may have mentioned this and I had to jump off the call for a minute but in terms of reviewing the business lines, obviously you announced the sale of the bank on the west coast very recently, are you finished going through the process of determining which lines you really want to keep and which ones may be subject to sale?

Yeah, the way we kind of think about it Gerard and it’s not totally black and white but it’s pretty clear the way I kind of think about it and it’s really about capital allocation and I think you know rough categories as being, here’s a business we’re not only do we not want to constrain them in growing capital but we would actually consider acquisitions, so acquisition capital as well. There would be a category for businesses where you don’t want to constrain capital at all, but on the other hand you won’t want to do acquisitions in that space and it could be that could change over time. Then there’d be another category of businesses where you just want to maintain capital and not grow it. And finally there would be a category where you would want to harvest capital, including through selling. And we have finished all the reviews, it’s been an enormous amount of work. You’re seeing some of the output of that in terms of things that we’ve sold and we’ve purchased over the last few quarters. We are, as we complete that, I think we’ve had a wonderful education process for all the executive team here as well as for our Board of Directors, we are in the process of summarizing it quite frankly and putting together a nice presentation for our Board. We’re doing an offsite at the beginning of June which is something we had scheduled about six months ago as part of the inevitable outcome of this and we also want to give the highlights of everything that we’re going to show the market a couple of weeks later at our investor day which is June 17th. So I think the process has worked very nicely and it’s accelerated our ability to understand our businesses, where we make money and where we can get more revenue and expense synergies frankly. Gerard Cassidy – RBC Capital Markets: Would it be fair when we see these results at the investor day that the lines of businesses that are capital intense and don’t meet your return hurdles that over time there would be less exposure to those business lines?

Yeah, that would be roughly true. Clearly we’re not going to advertize which ones are in the last category, that wouldn’t be fair to our businesses or our people. But it’ll be pretty clear to you as to what our criteria is and which are the ones that are clearly the ones that we’re going to be growing over time. Including what geography and beyond that we simply can’t advertize externally, in fact we don’t advertize it outside of the executive committee which ones we’re taking a much harder look at over time. Gerard Cassidy – RBC Capital Markets: Thank you.

Thank you our next question comes from Brian Bedell with Merrill Lynch, please go ahead. Brian Bedell – Merrill Lynch: Hi, just a quick follow up, in the, this I guess would be for Tim Keaney and maybe Bruce, as we talk about the net interest margin, outlook going forward, what’s your ability to lower front office deposit rates and we’ve seem to have had some competitors coming down pretty sharply and how do you feel about custody deposit growth in Europe?

Brian its Jim. Our growth in fund deposits I think as you’ve seen has been quite significant year over year, a big piece of that obviously is with the significant growth that we’ve enjoyed and realized with the ABN Amro Mellon joint venture. The competition around rates I’d say is reasonably competitive at this point. We would expect that to continue as we look out over the balance of this year. Bruce I don’t know if you have anything further to add on that.

No I think you know we’re seeing a good environment and the business wins effecting the levels and the rates are pretty stable. Brian Bedell – Merrill Lynch: Okay so like you said that won’t really have a big impact on the net interest margin going forward, it’s really more of your asset liability fee management that’s driving them.

That’s correct. Brian Bedell – Merrill Lynch: Okay, great, thank you.

Melissa we have time for one more question.

Thank you our final question comes from Ken Usdin with Bank of America Securities, please go ahead. Ken Usdin – Bank of America Securities: Thanks, thanks for the follow up opportunity. I think maybe a question for Todd, Todd just on the credit book I was wondering if you could just give us an update, there was, the metrics show that the book is holding up still very well with only a slight increase in non-performing but I was just wondering if you could touch on any updates to some of the areas that you highlighted in the K as far as any concerns you know in specific portfolios about credit deterioration and also you know can you give us an update on exposure levels and you know how aggressive you’ve been or plan to be as far as taking down you know risk incrementally.

Sure Ken. We have continued to take down exposures, especially on the weaker credits, we’ve let them mature off, we’re not longer really in that type of business. As you’ll see in our Q where we give ore a breakdown, our financial exposures have come down somewhat in the first quarter. That’s pretty easy for us to moderate. There’s no question that we are seeing some migration, that this is a tough environment. You know it’s difficult to precisely estimate credit cots but we would expect them to trend up somewhat from the first quarter. Ken Usdin – Bank of America Securities: And is that, when you say credit cost you mean charge offs or do you mean the amount of provision?

Provision. Ken Usdin – Bank of America Securities: So for the year, provision expense might be a little bit higher than what you had initially anticipated?

I think that’s fair to say. Ken Usdin – Bank of America Securities: But by major magnitude or just incremental?

I wish I could predict it exactly, I would say incremental at this point. Ken Usdin – Bank of America Securities: Okay and my second just quick question is just Bruce on the TCE being below your target, do, how important is TCE specifically to either the rating agencies or other parties, does it become anymore of an incremental issue and have you vetted that with your respective constituencies?

Yeah I think our primary capital measure is the tier one and that most closely mirrors our economic capital measures that we use, the framework internally. But TCE clearly is also an important measure for the rating agencies and we’ve talked to the rating agencies. In the past you may recall Ken that we’ve, when we’ve done acquisitions we’ve brought the TCE ratio down into this zip code and because of the strong capital generation that we have from our businesses, we’ve been able to restore it relatively quickly. So you know we’ve had those conversations and we have internally a very good comfort level and I think our external constituents also share that view. Ken Usdin – Bank of America Securities: Okay, thanks for the follow up, I appreciate it.

Thanks Ken. It is, it’s one of frankly the joys of this business, our mix of business, it tends to be fairly capital light, so we can generate the capital. I want to thank everyone for the great questions. We had the whole team here for you to get into any detail that you wanted to. Obviously looking forward to any follow up calls that we have later through Steve and his team and I appreciate your support and analysis and have a great day, thank you.

Thank you. If there are any additional questions or comments you may contact Mr. Steve Lackey at 212-635-1578. Thank you ladies and gentlemen, this concludes today’s conference call, thank you for participating.