The office will be headed by the Company's Chief Information Officer, Kurt Woetzel, who has been promoted to senior executive vice president and continues to report to Vice Chairman Donald R. Monks.

The Office of Innovation will direct resources in support of accelerating new product development and the successful commercialization of those products and services. The focused effort will build upon the Bank's 220-year history of innovative thinking and strategic evolution, and will be positioned to drive future revenue growth across the organization.

Gerald L. Hassell, president of The Bank of New York Company, Inc., said, "Our deep knowledge of the clients and markets we serve provides us with a unique opportunity to accelerate the development and delivery of new ideas. The Office of Innovation will provide the framework and resources necessary to bring those ideas to reality so that we can continue to support our clients with innovative solutions."

The Office of Innovation's initial focus will include areas such as hedge funds and derivatives where evolving market demands are driving the need for next-generation securities servicing solutions. Mr. Woetzel also plans to expand the Company's existing "Innovation in Action" program which supports and rewards employees who invent new business processes. The program has already granted awards for more than 20 patent applications. Since its formation, the Innovation in Action program has developed a methodology for evaluating patent applications, conducted information sessions for senior executives across the Company, and trained managers on how to recognize valuable intellectual property and assist employees in seeking patent protection for breakthrough ideas.

Kurt Woetzel, senior executive vice president and chief information officer of The Bank of New York, said, "Our Company has a longstanding reputation for innovation - a testament to our collaborative approach to working with clients and to the expertise and creativity of our people. Now, we are looking to build on our past success and accelerate the pace of product innovation throughout the Company. The Office of Innovation underscores our corporate commitment to product innovation and will properly channel resources to fund and staff early-stage product innovation efforts."