April 17, 2008

The Bank of New York Mellon Reports First Quarter Continuing EPS of $0.72 excluding Merger and Integration Expenses, An increase of 16% compared with first quarter of 2007; First Quarter Continuing EPS of $0.65 compared with $0.61 a year ago


First Quarter Continuing EPS of $0.65 compared with $0.61 a year ago

Strong growth in Asset Servicing - Significant operating leverage - Integration continues on track

NEW YORK, April 17, 2008 — The Bank of New York Mellon Corporation (NYSE: BK) today reported income from continuing operations of $749 million, or $0.65 per share, in the first quarter of 2008. This compares to income from continuing operations of $437 million, or $0.61 per share, in the first quarter of 2007 and $700 million, or $0.61 per share, in the fourth quarter of 2007.

Adjusting for the impact of merger and integration expenses ($126 million pre-tax), diluted earnings per share for the first quarter of 2008 were $0.72, which compares to $0.62 a year ago (an increase of 16%) and $0.67 sequentially (an unannualized increase of 7%).

Adjusting for the impact of merger and integration expenses ($126 million pre-tax) and intangible amortization ($122 million pre-tax), diluted earnings per share for the first quarter of 2008 were $0.78, which compares to $0.65 a year ago (an increase of 20%) and $0.74 sequentially (an unannualized increase of 5%). See the table on page 10 for a reconciliation of net income and earnings per share.

"Our businesses are performing well in a tough environment. We generated 14% revenue growth compared to the first quarter of 2007, significant positive operating leverage and 16% EPS growth. Market volumes and volatility, together with new business wins, continued to favor our asset servicing and clearing businesses, while lower market values impacted our asset management business. Our progress on the merger and integration continues to be excellent," said Robert P. Kelly, chief executive officer of The Bank of New York Mellon.

The results for first quarter of 2008 included net pre-tax costs associated with the write down of certain investments in the securities portfolio ($74 million), the write-down of seed capital investments related to a formerly affiliated hedge fund manager ($25 million), and an expense associated with capital support agreements ($12 million). The results for the first quarter also included the pre-tax benefit of $42 million associated with the initial public offering for VISA. The net impact of these items decreased earnings per share by approximately $0.04.

First Quarter Highlights of The Bank of New York Mellon (Unless otherwise noted, all comments begin with the results of the first quarter of 2008. This is followed by commentary that compares the current period to pro forma combined results of the first quarter of 2007 unless otherwise noted. The appendix to this release provides the pro forma combined results, without purchase accounting adjustments resulting from the merger of The Bank of New York and Mellon. Please refer to the Quarterly Earnings Summary for detailed business sector information.)

  -- Total revenue (FTE) totaled $3.760 billion, consisting of 79% fee and
     other revenue and 21% net interest revenue.  On a pro forma combined
     basis, the growth was 14%, driven by fee revenue growth of 9% and net
     interest revenue growth of 39%.

  -- Assets under management, excluding securities lending assets, amounted
     to $1.105 trillion.  On a pro forma combined basis, this represents an
     increase of 8% compared to the prior year.  Net asset inflows totaled
     $23 billion for the first quarter of 2008.  Assets under custody and
     administration amounted to $23.1 trillion.  On a pro forma combined
     basis, this represents an increase of 9% compared with the prior year.

  -- Asset and wealth management fees totaled $842 million.  On a pro forma
     combined basis, this represents an increase of 5%, reflecting the
     benefit of strong money market flows and other new business partially
     offset by the prior loss of business at one of the investment boutiques
     and lower equity market values.  Sequential revenue decreased 5%
     (unannualized) reflecting a combination of lower equity market values
     as well as negative long-term flows.

  -- Performance fees were $20 million.  On a pro forma combined basis,
     performance fees were $49 million in the first quarter of 2007.  On a
     sequential basis, these fees were $62 million in the fourth quarter of
     2007.

  -- Asset servicing fees totaled $897 million.  On a pro forma combined
     basis, the increase was 40%, compared to the prior year and 11%
     (unannualized) sequentially, reflecting the benefit of market
     volatility, strong new business activity and the fourth quarter 2007
     acquisition of the joint venture with ABN AMRO.  Securities lending fee
     revenue was $242 million compared with $65 million in the prior year on
     a pro forma basis and $164 million in the fourth quarter of 2007.

  -- Issuer services fees were $376 million.  On a pro forma combined basis,
     these fees increased by 1%, primarily reflecting higher global
     corporate trust fees.  On a sequential basis, these fees declined by
     14% (unannualized) due primarily to the seasonality associated with
     depositary receipts.

  -- Clearing and execution services fees totaled $267 million.  These fees
     decreased 3% compared with the first quarter of 2007 and decreased 15%
     (unannualized) compared with the fourth quarter of 2007.  During the
     first quarter of 2008, the B-Trade and G-Trade execution businesses
     were sold to BNY ConvergEx.  Adjusting for this transaction, clearing
     and execution services fees increased 12% compared to the prior year
     and were flat sequentially.

  -- Foreign exchange and other trading activities totaled $259 million.
     This compares with $182 million in the prior year period on a pro forma
     combined basis, and $305 million in the fourth quarter of 2007.  The
     increase compared to the prior year primarily reflects the benefit of
     increased client volumes and currency volatility.  The decrease
     compared with the fourth quarter of 2007 primarily reflects a lower
     valuation of the credit derivatives portfolio and the impact of the
     adoption of SFAS 157 on the valuation of the interest rate derivatives
     portfolio.

  -- Investment income was $23 million.  This compares with $61 million in
     the prior year period on a pro forma combined basis, and $52 million in
     the fourth quarter of 2007.  The decrease from prior periods primarily
     resulted from a seed capital investment loss of $19 million in the
     first quarter of 2008 as well as lower private equity investment
     revenue.  The loss in the first quarter of 2008 excludes the $25
     million loss on seed capital investments related to a formerly
     affiliated hedge fund manager, which was recognized in other expense.

  -- Securities losses totaled $73 million compared to a gain of $2 million
     in the first quarter of 2007, on a pro forma combined basis and a loss
     of $191 million in the fourth quarter of the 2007.  Further information
     on the investment portfolio is detailed on page 8 of this earnings
     release.

  -- Other fee revenue totaled $97 million.  Other fee revenue totaled $97
     million in the first quarter of 2007 on a pro forma combined basis, and
     $82 million in the fourth quarter of 2007.  The first quarter of 2008
     includes a gain of $42 million associated with the initial public
     offering of VISA.

  -- Net interest revenue (FTE) totaled $773 million with a net interest
     margin of 2.10%.  This compares with net interest revenue of $558
     million in the first quarter of 2007, on a pro forma combined basis,
     and $757 million in the fourth quarter of 2007.  The increase compared
     with the first quarter of 2007 reflects a higher level of interest-
     earning assets associated primarily with the growth in Securities
     Servicing and wider spreads on investment securities, partially offset
     by the lower value of noninterest-bearing deposits in a declining
     interest rate environment.

  -- Total noninterest expense was $2.619 billion.  This compares to
     noninterest expense of $2.305 billion in the first quarter of 2007 on
     a pro forma combined basis, and $2.749 billion in the fourth quarter of
     2007.

     Excluding merger and integration expense, intangible amortization
     expense, and non-operating items in the first quarter of 2007, detailed
     in the Quarterly Earnings Summary, noninterest expense on a pro forma
     combined basis increased 6% compared with the first quarter of 2007 and
     declined 5% compared to the fourth quarter of 2007.  The results
     reflect $118 million of expense synergies in the first quarter of 2008
     associated with the merger as detailed in the Quarterly Earnings
     Summary.

     On a pro forma combined basis, excluding merger and integration
     expense, intangible amortization expense, and non-operating items in
     the first quarter of 2007, detailed in the Quarterly Earnings Summary,
     we generated approximately 750 bps of positive operating leverage
     compared to the first quarter of 2007 and approximately 350 bps
     compared to the fourth quarter of 2007.

  -- The provision for credit losses was $16 million in the first quarter of
     2008 compared to a credit of $12 million on a pro forma combined basis
     in the first quarter of 2007 and in the fourth quarter of 2007 was $20
     million.

  -- Pre-tax operating margin (FTE) was 30% in the first quarter of 2008.
     Excluding merger and integration expenses and intangible amortization
     expense, the pre-tax operating margin (FTE) was 36%.  This compares
     with 33% in the first quarter of 2007, on a pro forma combined basis
     and 34% in the fourth quarter of 2007, excluding merger and integration
     expense, intangible amortization expense and non-operating items.

  -- The effective tax rate was 32.5% compared with 31.8% in the fourth
     quarter of 2007 and 32.2% in the first quarter of 2007.  Excluding
     merger and integration expense, the tax rate was 33.3% in the first
     quarter of 2008 compared with 33.2% in the fourth quarter of 2007 and
     32.3% in the first quarter of 2007.

  -- Total assets at March 31, 2008 were $205 billion, an increase of $7
     billion from Dec. 31, 2007, principally reflecting a higher level of
     client deposits.

  -- Return on tangible common equity was 49.7% for the first quarter of
     2008, 54.3% excluding merger and integration expense and intangible
     amortization expense.

  -- The Tier I capital ratio was 8.80% at March 31, 2008 compared to 9.32%
     at Dec. 31, 2007.

  -- The adjusted tangible shareholders' equity to assets ratio was 4.14% at
     March 31, 2008 compared with 4.96% at Dec. 31, 2007.  This decline
     reflects an increase of $1.447 billion in unrealized mark-to-market
     losses in the securities portfolio, net of tax, to $1.789 billion, as
     well as an increase in period end assets.  For additional information,
     see page 8.

  -- Average diluted shares of 1.148 billion were essentially unchanged
     compared with the fourth quarter of 2007.

On April 8, 2008, The Bank of New York Mellon declared a quarterly common stock dividend of 24 cents per share. This cash dividend is payable on May 2, 2008 to shareholders of record as of the close of business on April 23, 2008.

The Bank of New York Mellon Corporation is a global financial services company focused on helping clients manage and service their financial assets, operating in 34 countries and serving more than 100 markets. The company is a leading provider of financial services for institutions, corporations and high-net-worth individuals, providing superior asset management and wealth management, asset servicing, issuer services, clearing services and treasury services through a worldwide client-focused team. It has more than $23 trillion in assets under custody and administration, more than $1.1 trillion in assets under management and services $12 trillion in outstanding debt. Additional information is available at http://www.bnymellon.com/.

Earnings Release Format

Throughout this earnings release, all information is reported on a continuing operations basis, before extraordinary (loss), unless otherwise noted. Quarterly returns are annualized. Certain amounts are presented on a fully taxable equivalent (FTE) basis. We believe that this presentation provides comparability of amounts arising from both taxable and tax-exempt sources, and is consistent with industry practice. The adjustment to an FTE basis has no impact on net income. Where financial measures are presented excluding certain specified amounts, we believe the presentation enhances investor understanding of period-to-period results.

Supplemental Financial Information

Please refer to the Quarterly Earnings Summary for supplemental financial information of The Bank of New York Mellon Corporation, including 5-quarter trends of fee and other revenue, net interest revenue, noninterest expense as well as business segment trends. The Quarterly Earnings Summary is available at http://www.bnymellon.com/ (Investor Relations - financial reports).

Conference Call Data

Robert P. Kelly, chief executive officer; Gerald L. Hassell, president; and Bruce W. Van Saun, chief financial officer, along with other members of executive management from The Bank of New York Mellon, will host a conference call and simultaneous live audio webcast at 8 a.m. EDT on Thursday, April 17, 2008. This conference call and audio webcast will include forward-looking statements and may include other material information. Persons wishing to access the conference call and audio webcast may do so by dialing (888) 677-5383 (U.S.) and (210) 838-9221 (international) Passcode: Earnings, or by logging on to http://www.bnymellon.com/. The earnings release together with the quarterly earnings summary will be available at http://www.bnymellon.com/ beginning at approximately 6:30 a.m. EDT on April 17. Replays of the conference call and audio webcast will be available beginning April 17 at approximately 2 p.m. EDT through Thursday, May 1, 2008 by dialing (866) 356-4359 (U.S.) or (203) 369-0105 (International). The archived version of the conference call and audio webcast will also be available at http://www.bnymellon.com/ for the same time period.

                 THE BANK OF NEW YORK MELLON CORPORATION
                           Financial Highlights
  --------------------------------------------------------------------------
  (dollar amounts in millions,                    Quarter ended
  except per share amounts and          --------------------------------
  unless otherwise noted; common        March 31,   Dec. 31,   March 31,
  shares in thousands)                    2008        2007       2007 (a)
  --------------------------------------------------------------------------
  Continuing Operations:
    Fee and other revenue               $2,978       $3,044       $1,475
    Net interest revenue                   767          752          427
                                        ------       ------       ------
          Total revenue                 $3,745       $3,796       $1,902

  Diluted EPS from continuing
   operations - As reported (GAAP) (b)    0.65         0.61         0.61
  Non-GAAP adjusted EPS: Excluding
   merger and integration expense (b)     0.72         0.67         0.62
    Memo: Excluding merger and
     integration and intangible
     amortization expenses (b)            0.78         0.74         0.65

  Diluted EPS from net income (b)         0.65         0.45         0.60

  Return on tangible common equity
   (annualized):
      GAAP                                49.7%        45.0% (c)    39.2%
      Non-GAAP adjusted (d)               54.3%        48.9%        40.1%

  Return on equity (annualized):
      GAAP                                10.2%         9.5% (c)    15.7%
      Non-GAAP adjusted (d)               12.3%        11.5%        16.7%

  Fee and other revenue as a percentage
   of total revenue (FTE)                   79%          80%          77%

  Annualized fee and other revenue per
   employee (based on average
   headcount) (in thousands)              $281         $291         $263

  Non-U.S. percent of revenue (FTE)         33%          32% (e)      30%

  Pre-tax operating margin (FTE):
      GAAP                                  30%          27%          34%
      Non-GAAP adjusted (d)                 36%          34%          36%

  Net interest margin (FTE)               2.10%        2.16%        2.18%

  Selected average balances:
      Interest-earning assets         $147,232     $140,622      $79,075
      Total assets                    $202,738     $192,987     $102,041
      Interest-bearing deposits        $94,769      $86,278      $43,862
      Noninterest-bearing deposits     $26,315      $28,449      $14,903
      Shareholders' equity             $29,487      $29,136      $11,277

  Average common shares and
   equivalents outstanding
   (in thousands):
      Basic                          1,134,280    1,133,804      710,147
      Diluted                        1,147,906    1,148,176      719,976

  Period-end data
  Assets under management
   (in billions)                        $1,105       $1,121         $142
  Assets under custody and
   administration (in trillions)         $23.1        $23.1        $15.9 (f)
      Cross-border assets
       (in trillions)                    $10.0        $10.0         $6.7 (f)
  Market value of securities on loan
   (in billions)                          $676         $633         $397

  Employees                             42,600       42,500       23,100

  Tier I capital ratio                    8.80% (g)    9.32%        8.43%
  Adjusted tangible shareholders'
   equity to assets ratio (h)             4.14%        4.96%        5.47%
  Book value per common share           $24.89       $25.66       $16.11
  Tangible book value per common share   $4.84        $5.82        $6.92
  Dividends per share                    $0.24        $0.24        $0.23
  Closing common stock price per share  $41.73       $48.76       $42.98
  Market capitalization                $47,732      $55,878      $30,750
  --------------------------------------------------------------------------

  (a) Legacy The Bank of New York only.
  (b) All share-related data prior to July 1, 2007 is presented in post-
      merger share count terms.  See page 10 for additional information.
  (c) Before the extraordinary loss.
  (d) Calculated excluding merger and integration expense and intangible
      amortization expense.
  (e) Calculated excluding the $200 million CDO write-down in 4Q07.
  (f) Revised for Acquired Corporate Trust Business and harmonization
      adjustments.
  (g) Preliminary.
  (h) Shareholders' equity less goodwill and intangible assets plus the
      benefit of the deferred tax liability associated with tax deductible
      intangibles divided by total assets less goodwill and intangible
      assets.



                 THE BANK OF NEW YORK MELLON CORPORATION
                      Consolidated Income Statement
  --------------------------------------------------------------------------
                                                      Quarter ended
                                           --------------------------------
                                           March 31,   Dec. 31,   March 31,
  (in millions, except per share amounts)    2008        2007       2007 (a)
  --------------------------------------------------------------------------
  Fee and other revenue
  Securities servicing fees:
    Asset servicing                          $897        $809       $393
    Issuer services                           376         438        319
    Clearing and execution services           267         314        282
  --------------------------------------------------------------------------
      Total securities servicing fees       1,540       1,561        994
  Asset and wealth management fees            842         887        151
  Performance fees                             20          62         14
  Foreign exchange and other trading
   activities                                 259         305        127
  Treasury services                           124         121         50
  Distribution and servicing                   98         113          2
  Financing-related fees                       48          52         52
  Investment income                            23          52         36
  Securities gains (losses)                   (73)       (191)         2
  Other                                        97          82         47
  --------------------------------------------------------------------------
      Total fee and other revenue           2,978       3,044      1,475
  Net interest revenue
  Interest revenue                          1,656       1,789      1,021
  Interest expense                            889       1,037        594
  --------------------------------------------------------------------------
      Net interest revenue                    767         752        427
  Provision for credit losses                  16          20        (15)
  --------------------------------------------------------------------------
      Net interest revenue after
       provision for credit losses            751         732        442
  Noninterest expense
  Staff                                     1,352       1,365        720
  Professional, legal and other
   purchased services                         252         272        130
  Distribution and servicing                  130         133          4
  Net occupancy                               129         145         79
  Furniture and equipment                      79          82         50
  Software                                     79          78         54
  Business development                         66          72         30
  Sub-custodian                                61          66         34
  Clearing and execution                        9          49         37
  Communications                               32          34         19
  Other                                       182         198         72
  --------------------------------------------------------------------------
      Subtotal                              2,371       2,494      1,229
  Amortization of intangible assets           122         131         28
  Merger and integration expense:
    The Bank of New York Mellon               121         111          4
    Acquired Corporate Trust Business           5          13         11
  --------------------------------------------------------------------------
      Total noninterest expense             2,619       2,749      1,272
  --------------------------------------------------------------------------
  Income
  Income from continuing operations
   before income taxes                      1,110       1,027        645
  Provision for income taxes                  361         327        208
  --------------------------------------------------------------------------
      Income from continuing operations       749         700        437
  Discontinued operations:
    Income (loss) from discontinued
     operations                                (5)         (2)        (5)
    Provision (benefit) for income taxes       (2)         (2)        (2)
  --------------------------------------------------------------------------
      Income (loss) from discontinued
       operations, net of tax                  (3)          -         (3)
  --------------------------------------------------------------------------
      Income before extraordinary (loss)      746         700        434
  Extraordinary (loss) on consolidation
   of commercial paper conduit, net of tax      -        (180)         -
  --------------------------------------------------------------------------
      Net income                             $746        $520       $434
  --------------------------------------------------------------------------
  Earnings per share (b)
  Basic:
    Income from continuing operations       $0.66       $0.62      $0.61
    Income (loss) from discontinued
     operations, net of tax                     -           -          -
  --------------------------------------------------------------------------
      Income before extraordinary (loss)     0.66        0.62       0.61
    Extraordinary (loss), net of tax            -       (0.16)         -
  --------------------------------------------------------------------------
      Net income                            $0.66       $0.46      $0.61
  --------------------------------------------------------------------------
  Diluted:
    Income from continuing operations       $0.65       $0.61      $0.61
    Income (loss) from discontinued
     operations, net of tax                     -           -          -
  --------------------------------------------------------------------------
      Income before extraordinary (loss)     0.65        0.61       0.60 (c)
    Extraordinary (loss), net of tax            -       (0.16)         -
  --------------------------------------------------------------------------
      Net income                            $0.65       $0.45      $0.60
  --------------------------------------------------------------------------

  (a) Legacy The Bank of New York only.
  (b) Earnings per share data prior to July 1, 2007 is presented in post-
      merger share count terms.  See page 10 for additional information.
  (c) Does not foot due to rounding.



                 THE BANK OF NEW YORK MELLON CORPORATION
                        Consolidated Balance Sheet
  --------------------------------------------------------------------------
                                                  Quarter ended
  (dollar amounts in millions,                March 31,    Dec. 31,
  except per share amounts)                      2008        2007
  --------------------------------------------------------------------------
  Assets
  Cash and due from banks                      $7,689      $6,635
  Interest-bearing deposits with banks         37,715      34,312
  Federal funds sold and securities
   purchased under resale agreements           11,898       9,108
  Securities:
    Held-to-maturity (fair value of $2,080
     and $2,171)                                2,116       2,180
    Available-for-sale                         43,403      46,518
  --------------------------------------------------------------------------
      Total securities                         45,519      48,698
  Trading assets                                7,619       6,420
  Loans (includes $241 at fair value
   at March 31, 2008)                          52,092      50,931
  Reserve for loan losses                        (314)       (327)
  --------------------------------------------------------------------------
      Net loans                                51,778      50,604
  Premises and equipment                        1,714       1,731
  Accrued interest receivable                     723         739
  Goodwill                                     16,581      16,331
  Intangible assets                             6,353       6,402
  Other assets (includes $1,016 at fair value
   at March 31, 2008)                          17,346      16,676
  --------------------------------------------------------------------------
        Total assets                         $204,935    $197,656
  --------------------------------------------------------------------------

  Liabilities
  Deposits:
    Noninterest-bearing (principally
     domestic offices)                        $28,446     $32,372
    Interest-bearing deposits in
     domestic offices                          26,680      21,082
    Interest-bearing deposits in foreign
     offices                                   72,084      64,671
  --------------------------------------------------------------------------
      Total deposits                          127,210     118,125
  Federal funds purchased and securities
   sold under repurchase agreements             2,963       2,193
  Trading liabilities                           5,902       4,577
  Payables to customers and broker-dealers      7,727       7,578
  Commercial paper                                 31       4,079
  Other borrowed funds                          2,999       1,840
  Accrued taxes and other expenses              6,483       8,101
  Other liabilities (including allowance
   for lending related commitments of $173
   and $167, includes $57 at fair value at
   March 31, 2008)                              5,772       4,887
  Long-term debt                               17,373      16,873
  --------------------------------------------------------------------------
        Total liabilities                     176,460     168,253
  --------------------------------------------------------------------------

  Shareholders' equity
  Common stock-par value $0.01 per share;
   authorized 3,500,000,000 shares; issued
   1,148,561,267 and 1,146,896,177 shares          11          11
  Additional paid-in capital                   20,078      19,990
  Retained earnings                            10,435      10,015
  Accumulated other comprehensive loss,
   net of tax                                  (1,837)       (574)
  Less: Treasury stock of 4,743,585 and
   912,896 shares, at cost                       (212)        (39)
  --------------------------------------------------------------------------
      Total shareholders' equity               28,475      29,403
  --------------------------------------------------------------------------
        Total liabilities and
         shareholders' equity                $204,935    $197,656
  --------------------------------------------------------------------------

Note: The balance sheet at Dec. 31, 2007 has been derived from the audited financial statements as of that date.

Investment Portfolio

At March 31, 2008, investment securities totaled $45.5 billion, which consists of our core portfolio of $42.6 billion and Three Rivers Funding Corp.'s ("TRFC") portfolio of $2.9 billion. The unrealized net of tax loss on our total securities available for sale portfolio was $1.789 billion at March 31, 2008, which was comprised of $1.523 billion in our core portfolio and $266 million in our TRFC portfolio. The unrealized net of tax loss at Dec. 31, 2007 was $342 million and related entirely to our core portfolio. The increase in the unrealized loss in the first quarter of 2008 compared with the fourth quarter of 2007 was due to spread widening in the fixed income and asset-backed securities markets.

At March 31, 2008, the unrealized loss on our securities available for sale portfolio decreased our adjusted tangible common equity ratio by 90 basis points. Significant dislocation continued in the credit markets, particularly late in the first quarter of 2008. Spreads continued to widen appreciably as there were forced liquidations in the asset and mortgage-backed securities markets. That said, our core asset and mortgage-backed securities portfolio continued to remain highly rated, with 95% of our securities rated AAA, and few downgrades. We continue to have the ability and intent to hold these securities until any temporary impairment is recovered, or until maturity.

Below are the securities in our core portfolio, at fair value which incorporates our unrealized loss, by credit rating.

  --------------------------------------------------------------------------
  Credit ratings for
  core securities
  portfolio (a)                                                  Commercial
  March 31, 2008              Variable & Fixed Rate   Subprime    Mortgage-
  (dollar amounts             ---------------------   Mortgage     Backed
  in millions)                 Agency    Non-Agency  Securities   Securities
  --------------------------------------------------------------------------
  AAA                         $10,905     $14,462       $227        $2,797
  AA                                -          71        733            70
  A                                 -          19        172             7
  Other                             -          23         18             -
  --------------------------------------------------------------------------
    Total fair value          $10,905     $14,575     $1,150        $2,874
  --------------------------------------------------------------------------
  Amortized cost less
   writedowns                 $10,811     $16,065     $1,457        $2,964
  --------------------------------------------------------------------------
  Fair value as a % of
   amortized cost less
   writedowns                     101%         91%        79%           97%
  --------------------------------------------------------------------------

                         Asset-Backed   European
                          Securities    Floating
                             CDOs      Rate Notes   Other   Total         %
  --------------------------------------------------------------------------
  AAA                         $34        $8,888    $2,559  $39,872       95%
  AA                           35           144       485    1,538        4
  A                            10             -       309      517        1
  Other                        11             -       203      255        -
  --------------------------------------------------------------------------
    Total fair value          $90        $9,032    $3,556  $42,182 (b)  100%
  --------------------------------------------------------------------------
  Amortized cost less
   writedowns                $155        $9,501    $3,645  $44,598
  --------------------------------------------------------------------------
  Fair value as a % of
   amortized cost less
   writedowns                  58%           95%       98%      95%
  --------------------------------------------------------------------------
  (a) Preliminary.
  (b) Excludes $0.4 billion of unrated investments that principally support
      our asset management activities.

Below are the securities in TRFC's portfolio, at fair value which incorporates our unrealized loss, by credit rating.

  --------------------------------------------------------------------------
  Credit ratings
  for TRFC's
  portfolio
  March 31,    Variable                        Home
  2008          & Fixed                       Equity    Other
  (dollar        Rate      Subprime           Lines     Asset-
  amounts in   ---------   Mortgage   Credit    of      Backed
  millions)    Mortgages  Securities  Cards   Credit  Securities  Total   %
  --------------------------------------------------------------------------
  AAA           $1,307       $240      $-      $454      $29     $2,030  69%
  AA                 -          -      39         -       18         57   2
  A                  -          -     662       160        -        822  28
  Other              -          -       -        38        -         38   1
  --------------------------------------------------------------------------
    Total
     fair
     value      $1,307       $240    $701      $652      $47     $2,947 100%
  --------------------------------------------------------------------------
  Amortized
   cost less
   writedowns   $1,591       $272    $741      $738      $50     $3,392
  --------------------------------------------------------------------------
  Fair value
   as a % of
   amortized
   cost less
   writedowns       82%        88%     95%       88%      94%        87%
  --------------------------------------------------------------------------

We routinely test our investment portfolio securities for other-than-temporary impairment ("OTTI"). In the first quarter of 2008, we recorded a $74 million pre-tax securities loss associated with OTTI comprised of the following:

  -- $24 million related to asset-based securities ("ABS") CDOs.  ABS CDOs,
     on an amortized cost basis, net of OTTI, are reflected at 40% of par.
  -- $22 million related to SIVs.  This charge reduced our amortized cost
     basis, net of OTTI, to 77% of par.  At March 31, 2008, we had $162
     million of SIV securities at fair value, which are included in other
     securities in the core portfolio above.
  -- $28 million related to securities backed by home equity lines of credit
     in TRFC's portfolio based on both a deterioration of specific
     securities combined with weakening credit support due to downgrades of
     certain bond insurers providing credit support.

Capital Support Agreements

During the first quarter of 2008, we executed a capital support agreement for a commingled short-term NAV fund ("CNAV Fund"), which is managed by securities lending in the Asset Servicing segment, of $55.5 million covering securities related to Whistle Jacket Capital/White Pine Financial, LLC ("Whistle Jacket"). Subsequently, we executed another capital support agreement for the same CNAV Fund of $30 million covering securities related to Thornburg Mortgage Capital Resources ("Thornburg"). Under these agreements, we will provide capital in specified circumstances to the CNAV Fund until June 30, 2008 in support of Whistle Jacket securities and April 2009 in support of Thornburg securities. Included in other expense during the first quarter of 2008 was $12 million associated with the current estimated fair value of the support agreements. We continue to monitor exposure to SIV senior note investments in the CNAV Funds we manage. On a case-by-case basis, depending on future circumstances, we could enter into further capital support agreements with the funds.

Nonperforming Loans

  --------------------------------------------------------------------------
  Nonperforming loans                           Quarter ended
                                        ----------------------------------
                                        March 31,    Dec. 31,    March 31,
  (dollar amounts in millions)             2008        2007       2007 (a)
  --------------------------------------------------------------------------
  Loans:
    Commercial                              $50         $39        $15
    Commercial real estate                   49          40          -
    Residential real estate                  33          20          3
    Foreign                                  78          87          9
  --------------------------------------------------------------------------
      Total nonperforming loans            $210        $186        $27
  --------------------------------------------------------------------------
  Nonperforming loans ratio                 0.4%        0.4%       0.1%
  Allowance for loan losses/
   nonperforming loans                    149.5       175.8    1,074.1
  Total allowance for credit losses/
   nonperforming loans                    231.9       265.6    1,574.1
  --------------------------------------------------------------------------
  (a) Legacy The Bank of New York only.

Reserve for Credit Exposure, Provision and Net Charge-offs

  --------------------------------------------------------------------------
  Reserve for credit exposure,
  provision and net charge-offs                   Quarter ended
                                        ----------------------------------
                                        March 31,    Dec. 31,    March 31,
  (dollar amounts in millions)             2008        2007       2007 (a)
  --------------------------------------------------------------------------
  Reserve for credit exposure:
    Reserve for loan losses                $314        $327       $290
    Reserve for unfunded commitments        173         167        135
  --------------------------------------------------------------------------
      Total reserve for credit exposure    $487        $494       $425
  --------------------------------------------------------------------------
  Provision for credit losses               $16         $20       $(15)
  --------------------------------------------------------------------------
  Net charge-offs/(recoveries):
    Commercial                               $6         $16         $5
    Leasing                                   -           -         (8)
    Foreign                                   5          18          -
    Other                                     2           1          -
  --------------------------------------------------------------------------
      Total net charge-offs/(recoveries)    $13         $35        $(3)
  --------------------------------------------------------------------------
  (a) Legacy The Bank of New York only.

The unallocated reserve was 23% at March 31, 2008 compared with 23% at Dec. 31, 2007 and 27% at March 31, 2007.

Consolidated Net Income Including Discontinued Operations

Net income, including discontinued operations, totaled $746 million, or $0.65 per share, in the first quarter of 2008, compared with $520 million, or $0.45 per share, in the fourth quarter of 2007 and $434 million, or $0.60 per share, in the first quarter of 2007.

Supplemental Information — Reconciliation of Earnings Per Share — GAAP to Non-GAAP

Reported amounts are presented in accordance with GAAP. We believe that this supplemental non-GAAP information is useful to the investment community in analyzing the financial results and trends of our business. We believe they facilitate comparisons with prior periods and reflect the principal basis on which our management internally monitors financial performance. These non- GAAP items also are excluded from our segment measures used internally to evaluate segment performance because management does not consider them particularly relevant or useful in evaluating the operating performance of our business segments.

  --------------------------------------------------------------------------
  Quarterly
   reconciliation              1Q08             4Q07             1Q07 (a)
                      ----------------- ---------------- -------------------
                      After-tax     EPS After-tax   EPS  After-tax    EPS
  --------------------------------------------------------------------------
  Net income-GAAP          $746   $0.65    $520    $0.45    $434    $0.60
  Discontinued operations
   income (loss)             (3)      -       -        -      (3)       -
  Extraordinary
   (loss)-TRFC                -       -     180     0.16       -        -
  --------------------------------------------------------------------------
     Continuing operations  749    0.65     700     0.61     437     0.61(b)
  Merger and integration
   (M&I) expenses            75    0.07      69     0.06      10     0.01
  --------------------------------------------------------------------------
     Continuing operations
      excluding M&I
      expenses              824    0.72     769     0.67     447     0.62
  Intangible amortization    75    0.07      78     0.07      19     0.03
  --------------------------------------------------------------------------
     Continuing operations
      before M&I expenses
      and intangible
      amortization         $899   $0.78(b) $847    $0.74    $466    $0.65
  --------------------------------------------------------------------------
  (a) Legacy The Bank of New York only.
  (b) Does not foot due to rounding.

Supplemental Information — Trend of Earnings Per Share on a GAAP and Non-GAAP basis

In the merger transaction between The Bank of New York and Mellon, The Bank of New York shareholders received .9434 shares of BNY Mellon common stock for each share of The Bank of New York common stock outstanding on the closing date of the merger. Mellon shareholders received one share of BNY Mellon common stock for each share of Mellon common stock outstanding on the closing date of the merger. The table below converts earnings per share for The Bank of New York into post-merger share count terms for periods prior to July 1, 2007.

  --------------------------------------------------------------------------
  Continuing operations
   before extraordinary
   (loss) - fully
   diluted earnings per                  Quarter ended
   share              ------------------------------------------------------
                      March 31,    Dec. 31,   Sept. 30,   June 30, March 31,
                          2008        2007        2007    2007 (a)  2007 (a)
  --------------------------------------------------------------------------
  As reported             $0.65       $0.61       $0.56      $0.59     $0.57
  As reported adjusted
   for exchange ratio
   (GAAP)                  0.65        0.61        0.56       0.62      0.61

  Non-GAAP
   adjusted-excluding
   merger and integration
   expense:
    As reported            0.72        0.67        0.66(b)    0.63      0.59
    Adjusted for
     exchange ratio        0.72        0.67        0.66(b)    0.66      0.62

  Non-GAAP
   adjusted-excluding
   merger and integration
   expense and intangible
   amortization:
    As reported            0.78        0.74        0.73(c)    0.65      0.61
    Adjusted for
     exchange ratio        0.78        0.74        0.73(c)    0.69      0.65
  --------------------------------------------------------------------------
  (a) Legacy The Bank of New York only.
  (b) Including non-operating items totaling $12 million after-tax as
      described in our third quarter 2007 Form 10-Q, non-GAAP adjusted
      earnings per share - excluding merger and integration expense - would
      have been $0.67 in the third quarter 2007.
  (c) Including the non-operating items described above, non-GAAP adjusted
      earnings per share - excluding merger and integration expense and
      intangible amortization - would have been $0.74 in the third quarter
      2007.



  APPENDIX

                 THE BANK OF NEW YORK MELLON CORPORATION
            Pro Forma Condensed Consolidated Income Statement
                Excluding Purchase Accounting Adjustments

                                Three months ended March 31, 2007
                        ----------------------------------------------------
                        The Bank of       Mellon                       Total
  (in millions)            New York    Financial    Adjustments    Pro forma
  --------------------------------------------------------------------------
  Fee and other revenue
  Securities servicing fees:
    Asset servicing            $393         $252          $(5)(a)     $640
    Issuer services             319           52            -          371
    Clearing and execution
     services                   282            2          (10)(a)      274
  --------------------------------------------------------------------------
      Total securities
       servicing fees           994          306          (15)       1,285
  Asset and wealth
   management fees              151          650            -          801
  Performance fees               14           35            -           49
  Foreign exchange and other
   trading activities           127           55            -          182
  Treasury services              50           66            -          116
  Distribution and servicing      2           82            -           84
  Financing-related fees         52           11            -           63
  Investment income              36           25            -           61
  Securities gains                2            -            -            2
  Other                          47           50            -           97
  --------------------------------------------------------------------------
      Total fee and other
       revenue                1,475        1,280          (15)       2,740
  Net interest revenue
  Interest revenue            1,021          400            -        1,421
  Interest expense              594          275            -          869
  --------------------------------------------------------------------------
      Net interest revenue      427          125            -          552
  Provision for credit
   losses                      (15)            3            -          (12)
  --------------------------------------------------------------------------
      Net interest revenue
       after provision for
       credit losses            442          122            -          564
  Noninterest expense
  Staff                         720          537            -        1,257
  Professional, legal and
   other purchased services     130          115            -          245
  Net occupancy                  79           56            -          135
  Distribution and servicing      4          142          (14)(a)      132
  Furniture and equipment        50           28            -           78
  Software                       54           18            -           72
  Business development           30           28            -           58
  Sub-custodian                  34           17           (1)(a)       50
  Clearing and execution         37            -            -           37
  Communications                 19            6            -           25
  Other                          72           81            -          153
  --------------------------------------------------------------------------
      Subtotal                1,229        1,028          (15)       2,242
  Amortization of
   intangible assets             28           12            -           40
  Merger and integration
   expense:
    The Bank of New York
     Mellon                       4            8            -           12
    Acquired Corporate Trust
     Business                    11            -            -           11
  --------------------------------------------------------------------------
      Total noninterest
       expense                1,272        1,048          (15)       2,305
  --------------------------------------------------------------------------
  Income
  Income from continuing
   operations before
   income taxes                 645          354            -          999
  Provision for income taxes    208          111            -          319
  --------------------------------------------------------------------------
      Income from continuing
       operations               437          243            -          680
  Discontinued operations:
    Income (loss) from
     discontinued operations     (5)          11            -            6
    Provision (benefit) for
     income taxes                (2)           2            -            -
  --------------------------------------------------------------------------
      Income (loss) from
       discontinued
       operations, net
       of tax                    (3)           9            -            6
  --------------------------------------------------------------------------
      Net income               $434         $252           $-         $686
  --------------------------------------------------------------------------
  (a) Adjustment to eliminate intercompany revenue and expenses for Clearing 
and execution services and Asset servicing paid by Mellon to The Bank of New York.

Cautionary Statement

The information presented in this Earnings Release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be expressed in a variety of ways, including the use of future or present tense language, relate to, among other things, statements with respect to future financial goals, the merger of The Bank of New York and Mellon, ability and intention to hold certain securities, and possible future activities relating to further capital support agreements. These statements and other forward-looking statements contained in other public disclosures of The Bank of New York Mellon (the Company) which make reference to the cautionary factors described in this Earnings Release, are based upon current beliefs and expectations and are subject to significant risks and uncertainties (some of which are beyond the Company's control). Factors that could cause the Company's results to differ materially from those described in the forward-looking statements can be found in the risk factors and other uncertainties set forth in the Company's annual report on Form 10-K for the year ended December 31, 2007 and the Company's other filings with the Securities and Exchange Commission. All forward-looking statements in this Earnings Release speak only as of April 17, 2008 and the Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after that date or to reflect the occurrence of unanticipated events.